The LGL Group, Inc. (NYSE MKT: LGL) (the “Company” or “LGL”),
announced its financial results for the full year and quarter ended
December 31, 2017.
Summary of 2017 Full-Year Financial Results:
- Revenues of $22.4 million, up 7.2%
compared to 2016
- Net income of $0.04 per share compared
to a net income of $0.06 per share in 2016
- Order backlog improved 11.4% to $11.7
million at December 31, 2017 from $10.5 million at December 31,
2016
- Adjusted EBITDA was $0.36 per share,
compared to $0.27 per share for 2016
Summary of Q4 2017 Financial Results:
- Revenues of $5.7 million, down (2.1%)
compared to Q4 2016
- Net loss of ($0.01) per share compared
to a net income of $0.08 per share in Q4 2016
- Adjusted EBITDA was $0.09 per share,
compared to $0.12 per share for Q4 2016
Commenting on the Company’s 2017 results, Executive Chairman and
CEO, Michael J. Ferrantino, Sr. stated, “I am very pleased to
report to our shareholders our operating subsidiaries more than
made up for the shortfall from hurricane Irma and are trending to a
new normal. Revenue of $22.4 million, up 7.2% compared to 2016, is
particularly significant since our internally developed metrics
indicate our market grew by approximately 3%. Net income was $0.04
per share compared to $0.06 per share in 2016, but the decrease is
not an operational issue, it is due in part to an increase in tax
expense, related to the reversal of a valuation allowance in 2016,
and an impairment of a note receivable of $102,000, related to an
asset sale in 2013. Our backlog improved 11.4% to $11.7 million at
year end up from $ 10.5 million in 2016. This is the metric we pay
particular attention to. We strive for a book to bill of greater
than one. This new business is attributed to our move to
value-added assemblies which are less competitive and that provide
engineered solutions to our customers.”
In closing, Mr. Ferrantino added, “We enter 2018 with a seasoned
group of associates, our backlog is solid, our new order funnel is
growing, and our capacity to handle an increase in business with
small capital investment exists, so yes, I believe we are moving to
a new normal. Finally, I want to thank all our employees, customers
and shareholders for their hard work, commitment to giving us
business and standing by us. I am both humbled and grateful for the
success of our rights offering completed in the fall, which was
oversubscribed and raised net cash of approximately $10.8 million.
Although we are continuing to evaluate the best use of your
investment, I can report we are being extremely judicious in our
pursuit to increase shareholder value.”
About The LGL Group, Inc.
The LGL Group, Inc., through its two principal subsidiaries
MtronPTI and PTF, designs, manufactures and markets
highly-engineered electronic components used to control the
frequency or timing of signals in electronic circuits, and designs
high performance frequency and time reference standards that form
the basis for timing and synchronization in various
applications.
Headquartered in Orlando, Florida, the Company has additional
design and manufacturing facilities in Yankton, South Dakota,
Wakefield, Massachusetts and Noida, India, with local sales offices
in Hong Kong, Sacramento, California and Austin, Texas.
For more information on the Company and its products and
services, contact James Tivy 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.
Consolidated Statements of
Operations
(Dollars in Thousands, Except Shares and
Per Share Amounts)
For the year ended December 31, 2017
2016 (audited)
REVENUES $ 22,402 $ 20,891 Costs and
expenses: Manufacturing cost of sales 14,661 13,858 Engineering,
selling and administrative 7,465 7,194 OPERATING
INCOME (LOSS) 276 (161 ) Total other (expense) income, net
(57 ) 144 INCOME (LOSS) BEFORE INCOME TAXES 219 (17 ) Income
tax (provision ) benefit (102 ) 165 NET INCOME $ 117
$ 148 Weighted average number of shares used in basic EPS
calculation 2,929,641 2,665,043 Weighted average
number of shares used in diluted EPS calculation 3,035,104
2,665,730 BASIC AND DILUTED NET INCOME PER COMMON SHARE $
0.04 $ 0.06
For the quarter ended December 31,
2017 2016 (audited)
REVENUES $ 5,657 $ 5,776
Costs and expenses: Manufacturing cost of sales 3,598 3,789
Engineering, selling and administrative 1,936 1,984
OPERATING INCOME 123 3 Total other (expense) income, net (82
) 59 INCOME BEFORE INCOME TAXES 41 62 Income tax (provision
) benefit (72 ) 164 NET (LOSS) INCOME $ (31 ) $ 226
Weighted average number of shares used in basic EPS
calculation 3,681,118 2,664,123 Weighted average
number of shares used in diluted EPS calculation 3,790,812
2,672,549 BASIC AND DILUTED NET (LOSS) INCOME PER COMMON
SHARE $ (0.01 ) $ 0.08
THE LGL GROUP, INC.
Consolidated Balance Sheets
(Dollars in Thousands)
December 31, 2017 December 31, 2016 (audited)
ASSETS Cash and cash equivalents $ 13,250 $ 2,778 Marketable
securities 3,803 2,770 Accounts receivable, net 3,393 3,504
Inventories, net 3,875 3,638 Prepaid expenses and other current
assets 229 200 Total Current Assets 24,550 12,890
Property, plant, and equipment, net 2,179 2,711 Intangible assets,
net 552 628 Deferred income taxes, net 173 214 Other assets, net
101 203 Total Assets $ 27,555 $ 16,646 LIABILITIES
AND STOCKHOLDERS' EQUITY Total Current Liabilities 2,627 2,755
Total Stockholders' Equity 24,928 13,891 Total
Liabilities and Stockholders' Equity $ 27,555 $ 16,646
Reconciliations of GAAP to Non-GAAP Measures
To supplement our consolidated financial statements presented on
a GAAP (generally accepted accounting principles) 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 (expense),
provision (benefit) for income taxes, stock-based compensation
expense and other items we believe are discrete events which have a
significant impact on comparable GAAP measures and could distort an
evaluation of our normal operating performance. 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 Income (Loss)
Before Income Taxes to Non-GAAP Adjusted EBITDA:
For the period ended December 31, 2017 (in
000's, except shares and per share amounts) Three Months
Twelve Months Net income before income taxes $ 41 $ 219
Interest (income) expense (6 ) 11 Depreciation and amortization 122
642 Non-cash stock compensation 66 88 Impairment of note receivable
102 102 Gain on sale of marketable securities — (21 )
Adjusted EBITDA $ 325 $ 1,041 Basic per share information: Weighted
average shares outstanding 3,681,118 2,929,641
Adjusted EBITDA per share $ 0.09 $ 0.36 Diluted per share
information: Weighted average shares outstanding 3,790,812
3,035,104 Adjusted EBITDA per share $ 0.09 $ 0.34
For the period ended December 31, 2016 (in 000's, except shares
and per share amounts) Three Months Twelve Months
Net income (loss) before income taxes $ 62 $ (17 ) Interest expense
2 22 Depreciation and amortization 185 772 Non-cash stock
compensation 71 67 Gain on disposal of assets — (110 ) Bargain
purchase gain — (4 ) Adjusted EBITDA $ 320 $ 730
Basic per share information: Weighted average shares outstanding
2,664,123 2,665,043 Adjusted EBITDA per share $ 0.12
$ 0.27 Diluted per share information: Weighted average shares
outstanding 2,672,549 2,665,730 Adjusted EBITDA per
share $ 0.12 $ 0.27
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version on businesswire.com: https://www.businesswire.com/news/home/20180321006170/en/
The LGL Group, Inc.James Tivy,
407-298-2000jtivy@lglgroup.com
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