The LGL Group, Inc. (NYSE MKT: LGL) (the “Company”), announced
results for the three and six months ended June 30, 2016.
Summary of Q2 2016 Results:
- Revenues of $5.2 million, down 4.4%
compared to Q2 2015
- Net income of $0.01 per share compared
to a net loss of ($0.08) per share in Q2 2015
- Order backlog improved 7.4% to $9.7
million at June 30, 2016 from $9.0 million at March 31, 2016
- Adjusted EBITDA was $0.08 per share,
compared to $0.07 per share for the second quarter of 2015
- Total cash and cash equivalents was
$5.6, or $2.08 per share, at June 30, 2016 and December 31,
2016
The Company’s Executive Chairman and CEO, Michael Ferrantino,
Sr., said, “It pleases me to report that after a very long period
of red ink, our marketing and product strategy is beginning to take
hold and we have turned positive. However, while we continue to
make improvements to lower our breakeven and increase market share,
it is still too early to expect that we will consistently grow our
operating income quarter over quarter. For instance, beginning in
the third quarter we will see increases in health care costs and we
are forecasting a slight decline in revenue from the second
quarter. So, until we can stabilize our shipments at a slightly
higher level or identify additional savings, we will face
challenges.”
Mr. Ferrantino continued, “Our book to bill ratio has increased
for the second straight quarter and our backlog, which continues to
trend away from lower margin commodities to higher margin
assemblies, is now at the highest level it has been for quite some
time. This trend is perfectly in line with our ongoing strategy to
engineer and manufacture products that separate us from our
competitors.
“Finally, a comment about our team. All of our employees are
highly motivated and proud of the fact that their efforts have
turned our Company around. I expect that pride and motivation will
continue, and will do everything possible to make every quarter
better than the prior one. I fully expect our results will be
reflected in stock appreciation for our shareholders.”
About The LGL Group, Inc.
The LGL Group, Inc., through its wholly-owned subsidiary
MtronPTI, manufactures and markets highly-engineered electronic
components used to control the frequency or timing of signals in
electronic circuits. These components ensure reliability and
security in aerospace and defense communications, synchronize data
transfers throughout the wireless and internet infrastructure, and
provide low noise and base accuracy for lab instruments.
Headquartered in Orlando, Florida, the Company has additional
design and manufacturing facilities in Yankton, South Dakota and
Noida, India, with local sales offices in Sacramento, California
and Hong Kong.
For more information on the Company and its products and
services, contact Patti Smith 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.
Condensed Consolidated Statements of
Operations - UNAUDITED
(Dollars in Thousands, Except Shares and
Per Share Amounts)
Three Months EndedJune
30,
Six Months EndedJune 30,
2016 2015 2016 2015
REVENUES $ 5,231 $ 5,471 $ 9,987
$ 10,875 Cost and Expenses: Manufacturing cost of sales
3,459 3,683 6,716 7,288 Engineering, selling and administrative
1,746 2,121 3,407
4,081 OPERATING INCOME (LOSS) 26 (333 ) (136 ) (494 ) Other
(Expense) Income Interest expense, net (7 ) (4 ) (13 ) (9 ) Other
(expense) income, net (4 ) 147 38
135 Total Other (Expense) Income (11 )
143 25 126 INCOME (LOSS)
BEFORE INCOME TAXES 15 (190 ) (111 ) (368 ) Income tax benefit
(provision) 1 (11 ) 1 (11
)
NET INCOME (LOSS)
$ 16 $ (201 ) $ (110 ) $ (379 ) Weighted average number of
shares used in basic and diluted net loss per
common share calculation
2,665,434 2,637,719 2,665,434
2,627,160 BASIC AND DILUTED NET INCOME (LOSS)
PER COMMON SHARE $ 0.01 $ (0.08 ) $ (0.04 ) $ (0.14 )
THE LGL GROUP, INC.
Condensed Consolidated Balance Sheets –
UNAUDITED
(Dollars in Thousands)
June 30,2016
December 31,2015
ASSETS Cash and cash equivalents $ 5,563 $ 5,553 Accounts
receivable, less allowances of $32 and $34, respectively 3,137
2,606 Inventories, net 3,477 3,546 Prepaid expenses and other
current assets 227 247 Total current assets
12,404 11,952 Property, plant and equipment, net 2,865 3,165
Intangible assets, net 448 475 Other assets, net 206
211 Total assets $ 15,923 $ 15,803 LIABILITIES AND STOCKHOLDERS’
EQUITY Total Liabilities 2,325 2,076 Stockholders’
Equity 13,598 13,727 Total Liabilities and
Stockholders’ Equity $ 15,923 $ 15,803
Reconciliations of GAAP to Non-GAAP Measures
To supplement our consolidated condensed financial statements
presented on a GAAP 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 (expenses), 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 Loss Before Income
Taxes to Non-GAAP Adjusted EBITDA:
For the period ended June 30, 2016 (000’s, except shares and per
share amounts) Three months Six
months Net income (loss) before income taxes $ 15 $
(111) Interest expense 7 13 Depreciation and amortization 197 401
Non-cash stock compensation 3 (13) Gain on disposal of assets —
(43) Adjusted EBITDA $ 222 $ 247 Weighted average number of
shares used in basic and diluted EPS calculation 2,665,434
2,665,434
Adjusted EBITDA per share
$ 0.08 $ 0.09
For the period ended June 30, 2015 (000’s,
except shares and per share amounts) Three
months Six months Net loss before income
taxes $ (190 ) $ (368 ) Interest expense 4 9 Depreciation and
amortization 207 435 Non-cash stock compensation 174 187 Gain on
disposal of assets — (131 ) Adjusted EBITDA $
195 $ 132 Weighted average number of shares
used in basic and diluted EPS calculation 2,637,719
2,627,160
Adjusted EBITDA per share
$ 0.07 $ 0.05
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version on businesswire.com: http://www.businesswire.com/news/home/20160810006133/en/
The LGL Group, Inc.Patti Smith,
407-298-2000pasmith@lglgroup.com
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