Ultralife Corporation Reports Second Quarter Results
July 28 2016 - 7:00AM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$0.5 million on revenue of $20.4 million for the second quarter
ended June 26, 2016. For the second quarter of 2015, the
Company reported operating income of $0.8 million on revenue of
$19.0 million.
“Through solid execution of our business model parameters
including close control of spending in a challenging economic
environment, we delivered profitability for the seventh consecutive
quarter and generated positive cash flow,” said Michael D.
Popielec, Ultralife’s President and Chief Executive Officer.
“Despite some economic uncertainties weighing on customer’s buying
decisions, we still have our sights set on delivering profitable
growth for 2016. Our gross margins and liquidity give us the
flexibility to continue to invest in new product development in
support of our long-term global diversification strategy.”
Second Quarter 2016 Financial Results
Revenue was $20.4 million, an increase of $1.4 million, or 7%,
compared to $19.0 million for the second quarter of 2015 reflecting
the addition of Accutronics and higher Communications Systems
sales. Battery & Energy Products sales were $15.8 million
compared to $16.0 million last year, reflecting the contribution of
Accutronics sales which offset the revenue reduction resulting from
a large 9-Volt and large metering and toll pass battery orders in
the second quarter of 2015. Communications Systems sales grew
55% to $4.6 million compared to $3.0 million for the same period
last year as a result of shipments under the Vehicle Installed
Power Enhanced Riflemen Appliqué (“VIPER”) Program.
Gross profit was $5.9 million, or 29.0% of revenue, compared to
$5.9 million, or 30.9% of revenue, for the same quarter a year
ago. Battery & Energy Products’ gross margin was 29.6%,
compared to 28.4% last year, an increase of 120 basis points
reflecting favorable product mix including the contribution of
Accutronics. Communications Systems’ gross margin declined to
26.8% compared to 44.2% for the prior year due to sales mix.
Operating expenses were $5.4 million compared to $5.0 million
last year reflecting the addition of Accutronics and increased
spending on new product development in response to a higher level
of proposal activity, partially offset by tight control over
discretionary spending. Operating expenses were 26.5% of
revenue compared to 26.6% of revenue for the year earlier
period.
Operating income was $0.5 million compared to $0.8 million last
year.
Net income was $0.4 million, or $0.03 per share, compared to a
net income of $0.8 million, or $0.05 per share, for the second
quarter of 2015.
Share Repurchase Program
The Company’s Share Repurchase Program expired on June 2,
2016. From the inception of the Program on May 1, 2014
through its expiration, the Company repurchased 2,592,095 shares
for an aggregate cost of $10.5 million.
About Ultralife Corporation
Ultralife Corporation serves its markets with products and
services ranging from 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.ultralifecorporation.com.
Conference Call Information
Ultralife will hold its second 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 |
|
June 26, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Current
Assets: |
|
|
|
|
Cash and Cash
Equivalents |
$ |
3,262 |
|
|
$ |
14,533 |
|
|
Trade Accounts
Receivable, Net |
|
13,735 |
|
|
|
11,430 |
|
|
Inventories |
|
26,553 |
|
|
|
23,814 |
|
|
Prepaid Expenses and
Other Current Assets |
|
2,440 |
|
|
|
2,169 |
|
|
Total Current
Assets |
|
45,990 |
|
|
|
51,946 |
|
|
|
|
|
|
|
Property,
Equipment and Improvements, Net |
|
8,858 |
|
|
|
9,038 |
|
|
Goodwill,
Intangibles and Other Assets |
|
28,450 |
|
|
|
20,538 |
|
|
Total Assets |
$ |
83,298 |
|
|
$ |
81,522 |
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
|
|
|
|
Current
Liabilities: |
|
|
|
Accounts Payable |
$ |
6,654 |
|
|
$ |
6,494 |
|
|
Accrued Compensation
and Related Benefits |
|
1,818 |
|
|
|
2,377 |
|
|
Accrued Expenses and
Other Current Liabilities |
|
2,570 |
|
|
|
1,976 |
|
|
Current Portion of
Debt |
|
831 |
|
|
|
- |
|
|
Total Current
Liabilities |
|
11,873 |
|
|
|
10,847 |
|
|
Deferred
Income Taxes and Other Non-Current Liabilities |
|
5,569 |
|
|
|
4,659 |
|
|
Total Liabilities |
|
17,442 |
|
|
|
15,506 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Common Stock |
|
1,920 |
|
|
|
1,918 |
|
|
Capital in Excess of
Par Value |
|
177,430 |
|
|
|
177,007 |
|
|
Accumulated
Deficit |
|
(93,306 |
) |
|
|
(94,051 |
) |
|
Accumulated Other
Comprehensive Loss |
|
(1,608 |
) |
|
|
(907 |
) |
|
Treasury Stock |
|
(18,415 |
) |
|
|
(17,808 |
) |
|
Total Ultralife
Equity |
|
66,021 |
|
|
|
66,159 |
|
|
Non-Controlling Interest |
|
(165 |
) |
|
|
(143 |
) |
|
Total Shareholders’
Equity |
|
65,856 |
|
|
|
66,016 |
|
|
|
|
|
|
|
Total Liabilities and
Shareholders' Equity |
$ |
83,298 |
|
|
$ |
81,522 |
|
|
ULTRALIFE
CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
(In
Thousands Except Per Share Amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended |
|
Six Month
Periods Ended |
|
June
26, |
|
June
28, |
|
June
26, |
|
June
28, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenues: |
|
|
|
|
|
|
|
Battery & Energy Products |
$ |
15,759 |
|
|
$ |
15,972 |
|
|
$ |
32,199 |
|
|
$ |
32,248 |
|
Communication Systems |
|
4,612 |
|
|
|
2,983 |
|
|
|
9,005 |
|
|
|
5,884 |
|
Total
Revenues |
$ |
20,371 |
|
|
$ |
18,955 |
|
|
$ |
41,204 |
|
|
$ |
38,132 |
|
|
|
|
|
|
|
|
|
Cost of Products Sold: |
|
|
|
|
|
|
|
Battery & Energy Products |
|
11,095 |
|
|
|
11,430 |
|
|
|
22,318 |
|
|
|
22,922 |
|
Communication Systems |
|
3,376 |
|
|
|
1,666 |
|
|
|
6,581 |
|
|
|
3,344 |
|
Total Cost of Products
Sold |
|
14,471 |
|
|
|
13,096 |
|
|
|
28,899 |
|
|
|
26,266 |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
5,900 |
|
|
|
5,859 |
|
|
|
12,305 |
|
|
|
11,866 |
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Research and Development |
|
1,425 |
|
|
|
1,334 |
|
|
|
3,081 |
|
|
|
2,693 |
|
Selling, General and
Administrative |
|
3,976 |
|
|
|
3,708 |
|
|
|
8,243 |
|
|
|
7,534 |
|
Total Operating Expenses |
|
5,401 |
|
|
|
5,042 |
|
|
|
11,324 |
|
|
|
10,227 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
499 |
|
|
|
817 |
|
|
|
981 |
|
|
|
1,639 |
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
(24 |
) |
|
|
28 |
|
|
|
(137 |
) |
|
|
(160 |
) |
Income Before Income Taxes |
|
475 |
|
|
|
845 |
|
|
|
844 |
|
|
|
1,479 |
|
|
|
|
|
|
|
|
|
Income Tax Provision |
|
33 |
|
|
|
71 |
|
|
|
121 |
|
|
|
182 |
|
|
|
|
|
|
|
|
|
Net Income |
|
442 |
|
|
|
774 |
|
|
|
723 |
|
|
|
1,297 |
|
|
|
|
|
|
|
|
|
Net Loss Attributable to Non-Controlling
Interest |
|
4 |
|
|
|
14 |
|
|
|
22 |
|
|
|
24 |
|
|
|
|
|
|
|
|
|
Net Income Attributable to Ultralife
Corporation |
$ |
446 |
|
|
$ |
788 |
|
|
$ |
745 |
|
|
$ |
1,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to
Ultralife Common Shareholders – Basic |
$ |
.03 |
|
|
$ |
.05 |
|
|
$ |
.05 |
|
|
$ |
.08 |
|
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to
Ultralife Common Shareholders – Diluted |
$ |
.03 |
|
|
$ |
.05 |
|
|
$ |
.05 |
|
|
$ |
.08 |
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding –
Basic |
|
15,258 |
|
|
|
16,557 |
|
|
|
15,290 |
|
|
|
16,945 |
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding –
Diluted |
|
15,419 |
|
|
|
16,597 |
|
|
|
15,545 |
|
|
|
16,977 |
|
Company Contact:
Ultralife Corporation
Philip A. Fain
(315) 210-6110
pfain@ulbi.com
Investor Relations Contact:
LHA
Jody Burfening
(212) 838-3777
jburfening@lhai.com
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