Ultralife Corporation Reports Third Quarter Results
29 October 2015 - 10:00PM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$1.2 million on revenue of $19.0 million for the quarter ended
September 27, 2015. For the third quarter of 2014, the
Company reported an operating loss of $0.1 million on revenue of
$16.1 million.
“Through sustained execution, we delivered another quarter of
profitable growth, steadily building on the revenue gain, margin
expansion and positive EPS we generated for the first half of the
year. On a 19% increase in revenue for the third quarter, we
posted a consolidated gross margin of 31.0%, an operating margin of
6.2% and EPS of $0.07 per share. As a result, on a
year-to-date basis, we have generated $5.3 million more in
operating income on a $10.6 million gain in revenue, clearly
demonstrating our business model operating leverage,” said
Michael D. Popielec, Ultralife's President and Chief Executive
Officer. “With our new products gaining traction and our
opportunity set widening, we firmly believe our plans to produce
revenue and earnings growth for 2015 are within reach.”
Third Quarter 2015 Financial Results
Revenue grew 19%, or $3.0 million, to $19.0 million from $16.1
million for the third quarter of 2014. Battery & Energy
Products sales increased 18% to $16.4 million compared to $13.9
million last year, reflecting higher shipments to both
Government/Defense and commercial customers. Communications
Systems sales were $2.7 million compared to $2.1 million for the
same period last year, an increase of 23%.
Gross profit grew 32% to $5.9 million from $4.5 million for the
third quarter a year ago. As a percentage of revenue, gross
profit increased 310 basis points to 31.0% from 27.9% last year,
primarily reflecting favorable product mix and improved overhead
absorption on higher sales volumes. Battery &
Energy Products’ gross margin was 29.1% compared to 27.4% last
year, an increase of 170 basis points. Communications Systems’
gross margin was 42.4% compared to 31.4% last year, an increase of
1,100 basis points.
Operating expenses were $4.7 million compared to $4.5 million
for the third quarter of 2014, reflecting higher new product
development spending and sales commissions. As a percentage
of revenue, operating expenses improved 350 basis points to 24.8%
compared to 28.3% a year ago.
The combination of increased revenue and improved gross margin
drove a $1.2 million gain in operating income. Operating
income was $1.2 million compared to an operating loss of $0.1
million for the third quarter of 2014. Operating margin was 6.2%
compared to (0.3%) for the year-earlier period.
Net income was $1.0 million, or $0.07 per share, compared to a
net loss of ($0.3) million, or ($0.02) per share, for the third
quarter of 2014.
Share Repurchase Program
During the third quarter Ultralife repurchased 748,582 shares
under its currently authorized 3.4 million share repurchase
program, which will expire April 30, 2016. Since the inception of
the share repurchase program on May 1, 2014, the Company has
repurchased 2,442,191 shares.
About Ultralife Corporation
Ultralife Corporation serves its markets with products and
services ranging from portable power solutions to communications
and electronics systems. Through its engineering and collaborative
approach to problem solving, Ultralife serves government, defense
and commercial customers across the globe.
Headquartered in Newark, New York, the company's business
segments include: Battery & Energy Products and Communications
Systems. Ultralife has operations in North America, Europe and
Asia. For more information, visit www.ultralifecorp.com.
Conference Call Information
Ultralife will hold its third quarter earnings conference call
today at 10:00 AM ET. To participate in the live call, please dial
(800) 915-4836 at least ten minutes before the scheduled start
time, identify yourself and ask for the Ultralife call. A live
webcast of the conference call will be available to investors in
the Events & Presentations section of the Company's website at
http://investor.ultralifecorporation.com. For those who cannot
listen to the live broadcast, a replay of the webcast will be
available shortly after the call at the same location.
This press release may contain forward-looking statements based
on current expectations that involve a number of risks and
uncertainties. The potential risks and uncertainties that could
cause actual results to differ materially include: potential
reductions in U.S. military spending, uncertain global economic
conditions and acceptance of our new products on a global basis.
The Company cautions investors not to place undue reliance on
forward-looking statements, which reflect the Company's analysis
only as of today's date. The Company undertakes no obligation to
publicly update forward-looking statements to reflect subsequent
events or circumstances. Further information on these factors and
other factors that could affect Ultralife's financial results is
included in Ultralife's Securities and Exchange Commission (SEC)
filings, including the latest Annual Report on Form 10-K.
ULTRALIFE CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS(Dollars in Thousands) |
(unaudited) |
|
|
|
|
ASSETS |
|
September 27, |
|
December 31, |
|
|
2015 |
|
|
|
2014 |
|
Current
assets: |
|
|
|
Cash and cash
equivalents |
$ |
14,728 |
|
|
$ |
17,866 |
|
Trade accounts
receivable, net |
|
11,242 |
|
|
|
11,295 |
|
Inventories, net |
|
23,352 |
|
|
|
26,086 |
|
Prepaid expenses and
other current assets |
|
2,226 |
|
|
|
1,603 |
|
Total current
assets |
|
51,548 |
|
|
|
56,850 |
|
Property,
equipment and improvements, net |
|
9,191 |
|
|
|
9,812 |
|
Goodwill,
intangibles and other assets |
|
20,613 |
|
|
|
20,980 |
|
Total assets |
$ |
81,352 |
|
|
$ |
87,642 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
Current
liabilities: |
|
|
|
Accounts payable |
$ |
6,766 |
|
|
$ |
6,996 |
|
Accrued compensation
and related benefits |
|
2,398 |
|
|
|
1,725 |
|
Accrued expenses and
other current liabilities |
|
2,334 |
|
|
|
2,490 |
|
Total current
liabilities |
|
11,498 |
|
|
|
11,211 |
|
Deferred
income taxes and other non-current liabilities |
|
4,679 |
|
|
|
4,518 |
|
Total liabilities |
|
16,177 |
|
|
|
15,729 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
Common stock |
|
1,899 |
|
|
|
1,894 |
|
Capital in excess of
par value |
|
176,402 |
|
|
|
175,940 |
|
Accumulated
deficit |
|
(94,553 |
) |
|
|
(96,920 |
) |
Accumulated other
comprehensive loss |
|
(750 |
) |
|
|
(467 |
) |
Treasury stock |
|
(17,686 |
) |
|
|
(8,420 |
) |
Total Ultralife
equity |
|
65,312 |
|
|
|
72,027 |
|
Noncontrolling interest |
|
(137 |
) |
|
|
(114 |
) |
Total shareholders’
equity |
|
65,175 |
|
|
|
71,913 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$ |
81,352 |
|
|
$ |
87,642 |
|
|
|
|
|
|
ULTRALIFE
CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(In
Thousands except per share amounts) |
(unaudited) |
|
|
|
|
|
Three month
periods ended |
|
Nine month
periods ended |
|
September
27, |
|
September
28, |
|
September
27, |
|
September
28, |
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
Revenues: |
|
|
|
|
|
|
|
Battery & energy products |
$ |
16,390 |
|
|
$ |
13,913 |
|
|
$ |
48,638 |
|
|
$ |
40,000 |
|
Communication systems |
|
2,654 |
|
|
|
2,149 |
|
|
|
8,538 |
|
|
|
6,546 |
|
Total
revenues |
|
19,044 |
|
|
|
16,062 |
|
|
$ |
57,176 |
|
|
$ |
46,546 |
|
|
|
|
|
|
|
|
|
Cost of products sold: |
|
|
|
|
|
|
|
Battery & energy products |
|
11,616 |
|
|
|
10,100 |
|
|
|
34,538 |
|
|
|
29,510 |
|
Communication systems |
|
1,528 |
|
|
|
1,476 |
|
|
|
4,872 |
|
|
|
4,003 |
|
Total cost of products
sold |
|
13,144 |
|
|
|
11,576 |
|
|
|
39,410 |
|
|
|
33,513 |
|
|
|
|
|
|
|
|
|
Gross profit |
|
5,900 |
|
|
|
4,486 |
|
|
|
17,766 |
|
|
|
13,033 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Research and development |
|
1,224 |
|
|
|
1,014 |
|
|
|
3,917 |
|
|
|
4,010 |
|
Selling, general and
administrative |
|
3,503 |
|
|
|
3,527 |
|
|
|
11,037 |
|
|
|
11,498 |
|
Total operating expenses |
|
4,727 |
|
|
|
4,541 |
|
|
|
14,954 |
|
|
|
15,508 |
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
1,173 |
|
|
|
(55 |
) |
|
|
2,812 |
|
|
|
(2,475 |
) |
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
Interest income |
|
- |
|
|
|
3 |
|
|
|
2 |
|
|
|
12 |
|
Interest and financing expense |
|
(65 |
) |
|
|
(56 |
) |
|
|
(197 |
) |
|
|
(153 |
) |
Miscellaneous |
|
70 |
|
|
|
(158 |
) |
|
|
39 |
|
|
|
(128 |
) |
Income (loss) from continuing operations
before income taxes |
|
1,178 |
|
|
|
(266 |
) |
|
|
2,656 |
|
|
|
(2,744 |
) |
Income tax provision |
|
130 |
|
|
|
60 |
|
|
|
312 |
|
|
|
177 |
|
|
|
|
|
|
|
|
|
Net income (loss) from continuing
operations |
|
1,048 |
|
|
|
(326 |
) |
|
|
2,344 |
|
|
|
(2,921 |
) |
Loss from discontinued operations, net of
tax |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(61 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
|
1,048 |
|
|
|
(326 |
) |
|
|
2,344 |
|
|
|
(2,982 |
) |
Net (income) loss attributable to noncontrolling
interest |
|
(1 |
) |
|
|
3 |
|
|
|
23 |
|
|
|
13 |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to
Ultralife |
$ |
1,047 |
|
|
$ |
(323 |
) |
|
$ |
2,367 |
|
|
$ |
(2,969 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per share attributable
to Ultralife common shareholders – basic: |
|
|
|
|
|
|
|
Continuing operations |
$ |
.07 |
|
|
$ |
(.02 |
) |
|
$ |
.14 |
|
|
$ |
(.17 |
) |
Discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(.00 |
) |
Total |
$ |
.07 |
|
|
$ |
(.02 |
) |
|
$ |
.14 |
|
|
$ |
(.17 |
) |
|
|
|
|
|
|
|
|
Net income per share attributable to
Ultralife common shareholders – diluted: |
|
|
|
|
|
|
|
Continuing operations |
$ |
.07 |
|
|
|
|
$ |
.14 |
|
|
|
Discontinued operations |
|
- |
|
|
|
|
|
- |
|
|
|
Total |
$ |
.07 |
|
|
|
|
$ |
.14 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding –
basic |
|
15,633 |
|
|
|
17,490 |
|
|
|
16,503 |
|
|
|
17,510 |
|
Weighted average shares outstanding –
diluted |
|
15,740 |
|
|
|
|
|
16,550 |
|
|
|
Company Contact:
Ultralife Corporation
Philip A. Fain
(315) 332-7100
pfain@ulbi.com
Investor Relations Contact:
LHA
Jody Burfening
(212) 838-3777
jburfening@lhai.com
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