Quipp Announces First Quarter Results
12 May 2007 - 7:15AM
PR Newswire (US)
MIAMI, May 11 /PRNewswire-FirstCall/ -- Quipp, Inc. (NASDAQ:QUIP)
today announced first quarter financial and operating results.
Quipp reported a first quarter 2007 net loss of $650,320 ($0.44 per
basic and fully diluted share) compared to a net loss of $248,672
($0.17 per basic and fully diluted share) during the first quarter
of 2006. Net sales amounted to $4,321,637 in the first three months
of 2007, reflecting an 18% decline from $5,260,458 during the same
period of a year ago. Michael Kady, Quipp's President and Chief
Executive Officer, stated that: "Our company entered the new year
with a reasonably healthy backlog of orders due to strong customer
demand in the fourth quarter of 2006. Also, new orders booked
during the first quarter of 2007 exceeded the seasonally low order
input rate during the first three months of each of the preceding
three years. Since our acquisition of Newstec, Inc. in 2005,
however, a greater percentage of total customer demand consists of
larger systems orders that require longer lead times. As a result,
a significant portion of our backlog is scheduled to ship in future
quarters and did not contribute to first quarter results." First
quarter 2007 new orders amounted to $4,998,000 compared to
$4,468,000 in the first three months of 2006, and an average of
$3,977,000 during the first quarter of the past three years.
Backlog totaled $9,714,000 at March 31, 2007 compared to $8,909,000
at December 31, 2006 and $12,800,000 at March 31, 2006. Mr. Kady
added: "Profitability for the most recently completed quarter was
adversely affected by three factors. First, we have incurred higher
than expected raw material and component cost increases. Second,
price competition amongst newspaper post-press equipment suppliers
has intensified, and is expected to continue. Finally, reduced
production levels in our factory resulted in unfavorable overhead
absorption and efficiency variances during the quarter. Partially
offsetting these factors is the ongoing effect of cost reduction
programs implemented in 2006." Quarter Ended March 31, 2007 2006
(000's omitted, except per share data) (unaudited) (unaudited) Net
Sales $ 4,322 $ 5,260 Net Loss $ (650) $ (249) Basic and diluted
loss per share $ (0.44) $ (0.17) Quipp's balance of cash and cash
equivalents and securities available for sale totaled $4,245,132 at
March 31, 2007 as compared to $3,924,879 at December 31, 2006.
Positive cash generation from operations was largely attributable
to an increase in deferred revenues related to customer deposits.
The following table provides a reconciliation of net income to
EBITDA (earnings before interest, taxes, depreciation and
amortization) for the three-month periods ending March 31, 2007 and
2006. Management believes that the presentation of EBITDA will be
useful to investors because it will assist them in evaluating
management's performance in connection with the Company's core
operations by excluding charges that are not reflective of the
day-to-day operations of the Company. Quarter Ended March 31, 2007
2006 (000's omitted) (unaudited) (unaudited) Net (Loss) Income $
(650) $ (249) Add (Deduct): Net Interest Income (50) (37) Income
Taxes - (169) Depreciation and Amortization 122 58 Intangible
Amortization 131 131 EBITDA $ (447) $ (266) CAUTIONARY STATEMENT:
This press release contains forward-looking statements that
address, among other things, future shipments of larger systems
orders and continuation of intensified price competition. Actual
results could differ materially from those described in the forward
looking statements due to, among other things, economic conditions
generally and specifically in the newspaper industry, our
competition for new orders and cancellation of orders. DATASOURCE:
Quipp, Inc. CONTACT: Michael Kady, of Quipp, Inc., +1-800-345-9680
Web site: http://www.quipp.com/
Copyright
Quipp (NASDAQ:QUIP)
Historical Stock Chart
From Dec 2024 to Jan 2025
Quipp (NASDAQ:QUIP)
Historical Stock Chart
From Jan 2024 to Jan 2025