NUR Macroprinters Announces Third Quarter Financial Results Expect
Operating Profitability and Net Income in Fourth Quarter 2003
Revaluation of Inventory Results in $4.5m Write-Off LOD, Israel,
Oct. 27 /PRNewswire-FirstCall/ -- NUR Macroprinters , a leading
supplier of wide-format inkjet production printing systems, today
announced its consolidated financial results for the nine months
and third quarter ended September 30, 2003. Revenues for the third
quarter of 2003 were $17.1 million compared to $20.9 million in the
third quarter of 2002, where most of the decline is attributed to
the discontinued substrate product line, and $13.1 million during
the prior quarter, where most of the increase is attributed to
increase sales of printers. Taking into account a write-off of
inventory of $4.5 million, operating loss in the third quarter of
2003 was ($4.8) million. Excluding this inventory write-off, the
operating loss declined to ($328,000) from an operating loss of
($684,000) in the third quarter of last year and a ($1.14) million
operating loss in the prior quarter (excluding one-time charges and
restructuring costs in previous quarter). Without such exclusion
operating losses were ($15.4) million in the second quarter. Taking
into account the above mentioned inventory write-off, net loss for
the third quarter was ($5,460,000), or ($0.32) per share. Excluding
this write-off, net loss for the third quarter was ($948,000), or
($0.05) per share, compared to a net loss of ($1.2) million, or
($0.07) per share, in the third quarter last year and a prior
quarter loss of ($1.7) million, or ($0.10) per share, (excluding
one-time costs and write-offs in the previous quarter).Without such
exclusions net losses in the previous quarter were ($16.0) million.
Revenues for the first nine months of 2003 were $47.3 million,
compared to $65.7 million during the first nine months of 2002.
Taking into account one- time costs and write-off of inventory
operating loss for the first nine months of 2003 was approximately
($21.3) million versus ($5.8) million in the same period last year.
Excluding one-time costs and write-offs, operating loss for the
first nine months of 2003 was approximately ($2.5) million versus
($4.9) million in the same period last year. Taking into account
the above mentioned one-time costs and write-offs net loss for the
first nine months of 2003 was ($22.9) million, or ($1.33) per
share, as compared to a net loss of ($7.0) million, or ($0.41) per
share, in the comparable period last year. Excluding one-time costs
and write-offs net losses in the first nine months 2003 and prior
year were $4.1 million, or ($0.24) per share, and ($6.1) million,
or ($0.36) per share, respectively. The Company has reported that
during the third quarter 2003 it had completed the previously
announced consolidation of its production facilities in Israel,
which involved a revaluation process of its inventory. As a result
of the completion of the consolidation and in order to better
reflect inventory value the Company decided on a write-off of
inventory of $4,512,000. Based on the third quarter results, the
Company does not meet certain of the financial covenants set forth
in its loan agreements. The Company is currently in the process of
obtaining a waiver from the banks for the above- mentioned
non-compliance. Based on preliminary discussions with the banks,
the Company believes that such waiver will be granted. Should the
waiver not be obtained, the Company's long-term debt of $30.7
million shall be reclassified as short-term debt, resulting in a
short term debt of $42.6 million and not as presented herein. David
Seligman, Chief Financial Officer of NUR Macroprinters, commented,
"We believe that the results that we are reporting today, clearly
indicate that NUR is on the right path to return to growth and
profitability. We've been successful in increasing the level of
quality of our receivables while lowering our DSOs, as well as
reducing our operating expenses. Going forward, we expect to return
to profitability in the fourth quarter of 2003 and to continue to
improve our balance sheet and financial performance." David Amir,
CEO and President of NUR Macroprinters, commented, "During the
third quarter we launched two new products - the NUR Tempo(TM)
flatbed presses and the NUR Ultima(TM) mid-range volume inkjet
production printers. The Ultima has been well received and has
already been installed in several sites, including a U.S. site with
two machines.. The Tempo flatbed presses completed a successful
beta testing program and began shipping commercially in September.
Seven units were sold during the third quarter and we anticipate a
great potential market for this product. We feel confident of
future sales of these two new products." Amir continued, "As
recently announced, we have completed the consolidation of all of
NUR's equipment manufacturing operations in one facility in Israel.
A second Israel based facility has become our ink production
center, where we produce the inks for most of our printers. Last
week we announced the relocation and consolidation of all of our
North American activities to a new North American headquarters and
training facility, located in the New York metro area. Following
the successful model of NUR Europe, we have re-aligned NUR America
and NUR Asia Pacific so that each region now has a local management
team. This allows for a stronger market presence and greater
customer responsiveness." Mr. Amir concluded, "During the past few
quarters, we have made major changes in operations and senior
management designed to enhance our financial controls. We believe
that this, together with the additions to our product offering,
will enhance our ability to successfully compete in the wide-format
digital printing arena." The Company will host a conference call to
discuss these results on Monday, October 27th at 12:00 pm EST. To
participate, please call 1-877-356 9548 (U.S. toll free),
1-800-945-7877 (Israel toll free) or +1-706 679 0587
(International), ID Code: "3463428". A PowerPoint presentation
highlighting key financial metrics will be available in the
Investor Relations section of the Company's web site,
http://www.nur.com/ through the Fourth Quarter 2003. The conference
call also will be available for replay for 14 days starting 2pm EDT
on the day of the call, by calling 1-800 642 1687 (U.S.) / +1-706
645 9291 (International and Israel) and enter conference ID number
"3463428". ABOUT NUR MACROPRINTERS LTD. NUR Macroprinters
(NASDAQ:NURM) is a leading supplier of wide-format inkjet printing
systems used for the production of out-of-home advertising
materials. From entry-level photo-realistic printers to
high-throughput production presses, NUR's complete line of
cost-effective, reliable printing solutions and companion inks are
helping customers in over 100 countries worldwide address the full
spectrum of wide-format printing requirements. NUR customers,
including commercial printing companies, sign printers, screen
printers, billboard and media companies, photo labs, and digital
printing service providers, count on NUR to help them deliver the
high quality and fast turnaround they need to meet their clients'
exacting demands and succeed in today's competitive marketplace.
More information about NUR Macroprinters is available at
http://www.nur.com/. SAFE HARBOR: Certain statements made herein
that use the words "estimate," "project," "intend," "expect,"
"believe" and similar expressions are intended to identify
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements involve known and unknown risks and uncertainties that
could cause the actual results, performance or achievements of NUR
Macroprinters Ltd. To be materially different from those which may
be expressed or implied by such statements, including, among
others, changes in general economic and business conditions and
specifically, decline in demand for NUR Macroprinters Ltd's
products, inability to timely develop and introduce new
technologies, products and applications and loss of market share
and pressure on prices resulting from competition. For additional
information regarding these and other risks and uncertainties
associated with the Company's business, reference is made to NUR
Macroprinters Ltd.'s reports filed from time to time with the
Securities and Exchange Commission. This press release is available
at http://www.nur.com/ and http://www.portfoliopr.com/ NUR
MACROPRINTERS LTD. Condensed Balance Sheets, US$ in thousands
30-Sep-03 31-Dec-02 Change Unaudited Audited Current Assets : Cash
and cash equivalents $9,292 $11,668 (21%) Accounts receivable -
trade 21,460 28,777 (25%) Other receivables and prepaid expenses
6,209 5,531 12% Inventories 15,907 24,297 (35%) Total Current
Assets 52,868 70,273 (25%) Investments and other non-current assets
Long-term accounts receivables - trade 547 1,760 (69%) Investments
and other non-current assets 2,446 2,516 (3%) Severance pay funds
813 916 (11%) 3,806 5,192 (27%) Property and Equipment, net 8,786
11,576 (24%) Other assets, net 776 854 (9%) Total assets 66,236
87,895 (25%) Liabilities and Shareholders' Equity Current
Liabilities : Short - term1 bank credit 11,908 5,844 104% Current
maturities of long - term loans 142 2,020 (93%) Trade payables
8,735 16,444 (47%) Accrued expenses and other liabilities 12,767
8,984 42% Advances from customers 501 270 86% Total Current
Liabilities 34,053 33,562 1% Long -Term Liabilities : Long - Term
loans(1) 30,673 30,051 2% Accrued severance pay 944 1,122 (16%)
31,617 31,173 1% Shareholders' Equity : Share capital 4,244 4,202
1% Capital surplus 45,750 45,697 0% Cumulative translation
adjustment (1,087) (1,286) (15%) Accumulated Earnings (Deficit)
(48,341) (25,453) 90% Total Shareholders' Equity 566 23,160 (98%)
Total Liabilities and Shareholders' Equity 66,236 87,895 (25%) (1)
Based on the third quarter results, the Company does not meet
certain of the financial covenants set forth in its long-term loan
agreements. The Company is currently in the process of obtaining a
waiver from the banks for the above-mentioned non-compliance and
believes that such waiver will be granted. Should the waiver not be
obtained, the Company's long-term debt of $30.7 million shall be
reclassified as short term debt, resulting in a short term debt of
$42.6 million and not as presented above. NUR MACROPRINTERS LTD.
Consolidated Statements Of Operations U.S. $ in thousands, except
per share data Nine Months ended 9/30/2003 9/30/2003 9/30/2002
9/30/2002 GAAP Non GAAP (1) GAAP Non GAAP (2) Performa Performa
Unaudited Unaudited Unaudited Unaudited Revenues Sales of printers
and related products $ 47,332 $ 47,332 $ 65,734 $ 65,734 Cost of
revenues Cost of sales of printers and related products 29,204
29,204 45,094 45,094 inventory write-off 10,034 0 0 39,238 29,204
45,094 45,094 Gross profit 8,094 18,128 20,640 20,640 17.10% 38.30%
31.40% 31.40% Research & Development expenses 5,530 5,530 6,854
6,854 Less-Grants (687) (687) (1,110) (1,110) Research &
Development expenses, net 4,843 4,843 5,744 5,744 Selling expenses,
net 8,670 8,670 9,437 9,437 General and administrative expenses
7,142 7,142 8,873 8,873 Amortization of intangible assets 0 0 1,505
1,505 One time doubtful debts expenses 6,694 0 0 0 Restructuring
and other one time expenses 2,074 0 848 0 24,580 15,812 20,663
19,815 Operating income (loss) (21,329) (2,527) (5,767) (4,919)
Financial expenses net (1,250) (1,250) (929) (929) Other expense
net (103) (103) (135) (135) Loss before taxes on income and equity
losses (22,682) (3,880) (6,831) (5,983) Taxes on income (206) (206)
(127) (127) Equity in profits (losses) of affiliates, net of taxes
0 0 0 0 Net loss for the period ($22,888) ($4,086) (6,958) (6,110)
(48.36%) (8.63%) (10.59%) (9.30%) Loss per share ($1.33) ($0.24)
($0.41) ($0.36) Loss per share ($1.33) ($0.24) ($0.41) ($0.36)
Weighted average number of shares outstanding during the period
17,206,280 17,206,280 16,898,965 16,898,965 Weighted average number
of shares outstanding during the period used for diluted loss per
share -- -- -- -- Non GAAP Performa results of operations excludes
the following expenses: (1) Excluding $2.1 million of restructuring
expenses and $6.7 million of one time doubtful debts expenses and
one time inventory write-offs of $5.5 million in the first quarter
and $4.5 million in the third quarter (2) Excluding restructuring
and other one time expenses of $ 0.8 million (3) Excluding
restructuring and other one time expenses of $ 4,512 thousand NUR
MACROPRINTERS LTD. Consolidated Statements Of Operations U.S. $ in
thousands, except per share data Three Months ended 9/30/2003
9/30/2003 9/30/2002 GAAP Non GAAP(3) GAAP Performa Unaudited
Unaudited Unaudited Revenues Sales of printers and related products
$ 17,136 $ 17,136 $ 20,925 Cost of revenues Cost of sales of
printers and related products 9,979 9,979 13,357 inventory
write-off 4,512 14,491 9,979 13,357 Gross profit 2,645 7,157 7,568
15.44% 41.77% 36.17% Research & Development expenses 1,696
1,696 2,257 Less-Grants (89) (89) (546) Research & Development
expenses, net 1,607 1,711 1,711 Selling expenses, net 2,786 2,786
2,937 General and administrative expenses 3,092 3,092 3,101
Amortization of intangible assets 0 0 503 One time doubtful debts
expenses 0 0 0 Restructuring and other one time expenses 0 0 0
5,878 5,878 6,541 Operating income (loss) (4,840) (328) (684)
Financial expenses net (313) (313) (473) Other expense net (259)
(259) (27) Loss before taxes on income and equity losses (5,412)
(900) (1,184) Taxes on income (48) (48) (52) Equity in profits
(losses) of affiliates, net of taxes 0 0 0 Net loss for the period
($5,460) ($948) $(1,236) (31.86%) (5.53%) (5.91%) Loss per share
($0.32) ($0.05) ($0.07) Loss per share ($0.32) ($0.05) ($0.07)
Weighted average number of shares outstanding during the period
17,276,506 17,276,506 17,099,010 Weighted average number of shares
outstanding during the period used for diluted loss per share -- --
-- Non GAAP Performa results of operations excludes the following
expenses: (1) Excluding $2.1 million of restructuring expenses and
$6.7 million of one time doubtful debts expenses and one time
inventory write-offs of $5.5 million in the first quarter and $4.5
million in the third quarter (2) Excluding restructuring and other
one time expenses of $ 0.8 million (3) Excluding restructuring and
other one time expenses of $ 4,512 thousand CONTACT: David Seligman
CFO +972-67-726-559 PORTFOLIO PR Paul Holm/Matthew Karsh CONTACTS:
212-736-9224 / DATASOURCE: NUR Macroprinters CONTACT: David
Seligman CFO of NUR Macroprinters, +972-67-726-559, ; Paul Holm, ,
or Matthew Karsh, , both of PORTFOLIO PR, +1-212-736-9224, for NUR
Macroprinters Web site: http://www.nur.com/
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