The LGL Group, Inc. (NYSE MKT:LGL) (the “Company”), announced
results for the full year and quarter ended December 31, 2015.
Summary of 2015 Full-Year Financial Results:
- Revenues of $20.7 million, a decrease
of 10.0% compared to 2014
- Gross margin of 33.1% compared to 2014
gross margin of 27.5%
- Net loss per share of ($0.27) compared
to 2014 net loss per share of ($1.09)
- Adjusted EBITDA of $0.5 million, a
year-over-year improvement of $1.6 million from 2014
Total revenues for the year ended December 31, 2015, were
$20,713,000, a decrease of 10.0% from revenues of $23,013,000 in
2014. Net loss for the year ended December 31, 2015, was
($711,000) compared with ($2,825,000) for the year ended December
31, 2014. Basic and diluted net loss per share for the years ended
December 31, 2015 and 2014, was ($0.27) and ($1.09), respectively.
Gross margins improved to 33.1% for 2015, a 5.6 percentage point
increase compared to 27.5% for 2014. Adjusted EBITDA, which
excludes non-cash stock-based compensation, non-cash impairment
expense and one-time non-cash restructuring charges, was $0.5
million, or $0.19 per share, for 2015, compared to an EBITDA loss
of ($1.1) million, or ($0.43) per share, for 2014.
“The year-over-year improvement in gross margin reflects a more
favorable product mix directly tied to engineering investments the
Company has made that are resulting in the development of more
complex products that are producing higher margins,” said the
Company’s CEO, Michael J. Ferrantino, Sr.
Summary of Q4 2015 Financial Results:
- Revenues of $5.0 million, a decrease of
7.5% compared to Q4 2014
- Gross margin of 33.2% compared to Q4
2014 gross margin of 30.0%
- Net loss per share of ($0.05) compared
to Q4 2014 net loss per share of ($0.10)
- Adjusted EBITDA of $0.1 million, a
year-over-year improvement of $0.06 million from Q4 2014
Total revenues for Q4 2015 were $5.0 million, a decrease of 7.5%
from the Q4 2014 revenues of $5.5 million. Net loss for Q4 2015 was
($0.1) million, or ($0.05) per share, compared to a net loss of
($0.3) million, or ($0.10) per share, for Q4 2014. Gross margins
improved to 33.2% for Q4 2015, which was 3.2 percentage points
higher compared to 30.0% for Q4 2014. Adjusted EBITDA, which
excludes non-cash stock-based compensation, non-cash impairment
expense and one-time non-cash restructuring charges, was $0.14
million, or $0.05 per share, for Q4 2015, compared to an adjusted
EBITDA of $0.08 million, or $0.03 per share, for the comparable
period in 2014.
Positive Cash Flows from Operations; Solid Capital
Position
Operating cash flows were positive for 2015, with net cash
provided by operating activities of $0.7 million for the year ended
December 31, 2015, compared to net cash used in operations of
($1.3) million for the year ended December 31, 2014.
Total cash and cash equivalents increased to $5.6 million, or
$2.08 per share, at December 31, 2015, compared to $5.2 million, or
$1.98 per share, at December 31, 2014. Adjusted working capital
(accounts receivable, net, plus inventory, net, less accounts
payable) was $5.2 million as of December 31, 2015, compared to $5.7
million as of December 31, 2014, which reflects the continuing
effort to manage working capital levels to operating activity.
Mr. Ferrantino added, “As we rebuild the Company around
value-added products that provide solutions to our customers, we
continue to remain focused on our cost reduction program. Although
the reductions have become more modest, we feel there is still room
for improvement. However, our primary focus is on technology trends
and market requirements for new products. To that end, we have a
number of new, value-added designs and will continue to introduce
more over the coming months. As I have stated in the past, the
incubation period from design to production is long, but so
are the production cycles. We have improved many of the
Company’s performance metrics however, the critical one is
profitability, which we see it getting closer and closer and
believe will soon be within our reach.”
About The LGL Group, Inc.
The LGL Group, Inc., through its wholly-owned subsidiary
MtronPTI, manufactures and markets highly-engineered electronic
components used to control the frequency or timing of signals in
electronic circuits. These components ensure reliability and
security in aerospace and defense communications, synchronize data
transfers throughout the wireless and internet infrastructure, and
provide low noise and base accuracy for lab instruments.
Headquartered in Orlando, Florida, the Company has additional
design and manufacturing facilities in Yankton, South Dakota and
Noida, India, with local sales offices in Sacramento, California
and Hong Kong.
For more information on the Company and its products and
services, contact Patti Smith at The LGL Group, Inc., 2525 Shader
Rd., Orlando, Florida 32804, (407) 298-2000, or visit
www.lglgroup.com and www.mtronpti.com.
Caution Concerning Forward-Looking Statements
This press release may contain forward-looking statements made
in reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21 E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as “may,” “will,” “expect,” “project,” “estimate,”
“anticipate,” “plan,” “believe,” “potential,” “should,” “continue”
or the negative versions of those words or other comparable words.
These forward-looking statements are not guarantees of future
actions or performance. These forward-looking statements are based
on information currently available to us and our current plans or
expectations, and are subject to a number of uncertainties and
risks that could significantly affect current plans, anticipated
actions and our future financial condition and results. Certain of
these risks and uncertainties are described in greater detail in
our filings with the Securities and Exchange Commission. We are
under no obligation to (and expressly disclaim any such obligation
to) update or alter our forward-looking statements, whether as a
result of new information, future events or otherwise.
THE LGL GROUP, INC. Condensed Consolidated Statements of
Operations – UNAUDITED (Dollars in Thousands, Except Per
Share Amounts) For the year ended December
31, 2015 2014
REVENUES $ 20,713 $ 23,013 Costs and expenses: Manufacturing
cost of sales 13,863 16,685 Engineering, selling and administrative
7,638 8,692 Restructuring charges — 465
OPERATING LOSS (788 ) (2,829 ) Total other income
85 — LOSS BEFORE INCOME TAXES (703 )
(2,829 ) Income tax (provision) benefit (8 ) 4
NET LOSS $ (711 ) $ (2,825 ) Weighted average number
of shares used in basic and diluted EPS calculation
2,640,803 2,595,988 BASIC AND DILUTED NET LOSS
PER COMMON SHARE $ (0.27 ) $ (1.09 )
For the quarter ended December
31,
2015 2014
REVENUES $ 5,042 $ 5,451 Costs and expenses:
Manufacturing cost of sales 3,366 3,816 Engineering, selling and
administrative 1,816 1,942 Restructuring charges —
21 OPERATING LOSS (140 ) (328 ) Total
other (expense) income (2 ) 69 LOSS BEFORE
INCOME TAXES (142 ) (259 ) Income tax benefit 5
4 NET LOSS $ (137 ) $ (255 ) Weighted
average number of shares used in basic and diluted EPS calculation
2,655,668 2,599,657 BASIC AND DILUTED
NET LOSS PER COMMON SHARE $ (0.05 ) $ (0.10 )
THE
LGL GROUP, INC. Condensed Consolidated Balance Sheets –
UNAUDITED (Dollars in Thousands) December
31, ASSETS
2015 2014 Cash
and cash equivalents $ 5,553 $ 5,192 Accounts receivable, less
allowances of $34 and $43, respectively 2,606 3,266 Inventories,
net 3,546 4,198 Prepaid expenses and other current assets
247 278 Total Current Assets 11,952 12,934 Property, plant,
and equipment, net 3,165 3,547 Intangible assets, net 475 528 Other
assets 211 253 Total Assets $ 15,803 $ 17,262
LIABILITIES AND STOCKHOLDERS’ EQUITY Total Liabilities 2,076 3,025
Stockholders’ Equity 13,727 14,237 Total Liabilities
and Stockholders’ Equity $ 15,803 $ 17,262
Reconciliations of GAAP to Non-GAAP Measures
To supplement our consolidated condensed financial statements
presented on a GAAP basis, the Company uses certain non-GAAP
measures, including Adjusted EBITDA, which we define as net income
(loss) adjusted to exclude depreciation and amortization expense,
interest income (expenses), provision (benefit) for income taxes,
stock-based compensation expense, impairment expense and
restructuring charges. We believe such non-GAAP measures are
appropriate to enhance an overall understanding of our past
financial performance and also our prospects for the future. These
adjustments to our GAAP results are made with the intent of
providing both management and investors a more complete
understanding of the underlying operational results and trends and
our marketplace performance. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for net earnings or diluted earnings per share prepared
in accordance with generally accepted accounting principles in the
United States.
Reconciliation of GAAP Loss Before Income
Taxes to Non-GAAP Adjusted EBITDA:
For the period ended December 31, 2015 (000’s, except shares and
per share amounts) Three months Twelve
months Net loss before income taxes $ (142 ) $ (703 )
Add: Interest expense 7 32 Add: Depreciation and amortization 212
870 Add: Non-cash stock compensation 64 265 Add: Non-cash
impairment of note receivable — 38
Adjusted EBITDA $ 141 $ 502 Weighted average
number of shares used in basic and diluted EPS calculation
2,655,668 2,640,803
Adjusted EBITDA per share
$ 0.05 $ 0.19
For the period ended December 31,
2014 (000’s, except shares and per share amounts)
Three months Twelve months Net loss
before income taxes $ (259 ) $ (2,829 ) Add: Interest expense 5 26
Add: Depreciation and amortization 218 922 Add: Non-cash stock
compensation 94 308 Add: One-time restructuring expense 21
465 Adjusted EBITDA (loss) $ 79 $
(1,108 ) Weighted average number of shares used in basic and
diluted EPS calculation 2,599,657 2,595,988
Adjusted EBITDA (loss) per share
$ 0.03 $ (0.43 )
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version on businesswire.com: http://www.businesswire.com/news/home/20160324006246/en/
The LGL Group, Inc.Patti Smith,
407-298-2000pasmith@lglgroup.com
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