Ultralife Corporation Reports Third Quarter Results
October 27 2016 - 07:00AM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$1.1 million on revenue of $19.6 million for the third quarter
ended September 25, 2016. For the quarter ended September 27,
2015, the Company reported operating income of $1.2 million on
revenue of $19.0 million.
“Successful execution of the strategy to diversify beyond our
core U.S. government/defense business while abiding by our business
model parameters produced solid third quarter results,” said
Michael D. Popielec, President and Chief Executive Officer.
“Although weak economic conditions continued to constrain revenue
growth, we delivered operating income for the third quarter that
was more than double the second quarter, and profitability for the
eighth consecutive quarter. We also remain poised to achieve
profitable growth for 2016. Finally, we continue to build
resources to support investments in organic and inorganic growth
opportunities through greater operating leverage and inventory
reductions.”
Third Quarter 2016 Financial Results
Revenue was $19.6 million, an increase of $0.6 million, or 3.1%,
compared to $19.0 million for the third quarter of 2015 reflecting
the addition of Accutronics and higher Communications Systems sales
partially offset by lower core Battery & Energy sales.
Battery & Energy Products sales declined to $14.9 million
compared to $16.4 million last year due primarily to lower sales to
a large U.S. government/defense OEM and lower 9-Volt sales,
partially offset by higher medical sales, the contribution of
Accutronics, and a large shipment to a non-U.S. government/defense
customer. Communications Systems sales grew 76.6% to $4.7
million compared to $2.7 million for the same period last year
reflecting shipments under the Vehicle Installed Power Enhanced
Riflemen Appliqué (“VIPER”) Program.
Gross profit was $6.0 million, or 30.5% of revenue, compared to
$5.9 million, or 31.0% of revenue, for the same quarter a year
ago. Battery & Energy Products’ gross margin was 30.3%,
compared to 29.1% last year, an increase of 120 basis points
reflecting favorable product mix including the contribution of
Accutronics. Communications Systems’ gross margin declined to
31.4% compared to 42.4% for the prior year primarily due to sales
mix.
Operating expenses were $4.9 million compared to $4.7 million
last year reflecting the addition of Accutronics, partially offset
by certain cost reduction actions along with continued tight
control over discretionary spending. Operating expenses were
24.8% of revenue equal to 24.8% of revenue for the year earlier
period.
Operating income was $1.1 million compared to $1.2 million last
year for an operating margin of 5.8% compared to 6.2% last
year.
Net income was $1.0 million, or $0.07 per share, equal to net
income of $1.0 million, or $0.07 per share, for the third quarter
of 2015.
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.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 25, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Current
Assets: |
|
|
|
|
Cash and Cash Equivalents |
$ |
6,732 |
|
|
$ |
14,533 |
|
|
Trade Accounts Receivable, Net |
|
12,888 |
|
|
|
11,430 |
|
|
Inventories |
|
24,877 |
|
|
|
23,814 |
|
|
Prepaid Expenses and Other Current Assets |
|
2,692 |
|
|
|
2,169 |
|
|
Total Current Assets |
|
47,189 |
|
|
|
51,946 |
|
|
|
|
|
|
|
Property,
Equipment and Improvements, Net |
|
8,551 |
|
|
|
9,038 |
|
|
Goodwill,
Intangibles and Other Assets |
|
27,817 |
|
|
|
20,538 |
|
|
Total Assets |
$ |
83,557 |
|
|
$ |
81,522 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
Current
Liabilities: |
|
|
|
Accounts Payable |
$ |
6,323 |
|
|
$ |
6,494 |
|
|
Accrued Compensation and Related Benefits |
|
1,264 |
|
|
|
2,377 |
|
|
Accrued Expenses and Other Current Liabilities |
|
3,889 |
|
|
|
1,976 |
|
|
Current Portion of Debt |
|
- |
|
|
|
- |
|
|
Total Current Liabilities |
|
11,476 |
|
|
|
10,847 |
|
|
Deferred
Income Taxes and Other Non-Current Liabilities |
|
5,528 |
|
|
|
4,659 |
|
|
Total Liabilities |
|
17,004 |
|
|
|
15,506 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Common Stock |
|
1,925 |
|
|
|
1,918 |
|
|
Capital in Excess of Par Value |
|
177,737 |
|
|
|
177,007 |
|
|
Accumulated Deficit |
|
(92,287 |
) |
|
|
(94,051 |
) |
|
Accumulated Other Comprehensive Loss |
|
(2,221 |
) |
|
|
(907 |
) |
|
Treasury Stock |
|
(18,433 |
) |
|
|
(17,808 |
) |
|
Total Ultralife Equity |
|
66,721 |
|
|
|
66,159 |
|
|
Non-Controlling Interest |
|
(168 |
) |
|
|
(143 |
) |
|
Total Shareholders’ Equity |
|
66,553 |
|
|
|
66,016 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
83,557 |
|
|
$ |
81,522 |
|
|
|
|
|
|
|
|
|
|
|
ULTRALIFE
CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME |
(In
Thousands Except Per Share Amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended |
|
Nine Month
Periods Ended |
|
September 25, |
|
September
27, |
|
September
25, |
|
September 27, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenues: |
|
|
|
|
|
|
|
Battery & Energy Products |
$ |
14,943 |
|
|
$ |
16,390 |
|
|
$ |
47,142 |
|
|
$ |
48,638 |
|
Communication Systems |
|
4,688 |
|
|
|
2,654 |
|
|
|
13,693 |
|
|
|
8,538 |
|
Total
Revenues |
|
19,631 |
|
|
|
19,044 |
|
|
|
60,835 |
|
|
|
57,176 |
|
|
|
|
|
|
|
|
|
Cost of Products Sold: |
|
|
|
|
|
|
|
Battery & Energy Products |
|
10,420 |
|
|
|
11,616 |
|
|
|
32,738 |
|
|
|
34,538 |
|
Communication Systems |
|
3,214 |
|
|
|
1,528 |
|
|
|
9,795 |
|
|
|
4,872 |
|
Total Cost of Products
Sold |
|
13,634 |
|
|
|
13,144 |
|
|
|
42,533 |
|
|
|
39,410 |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
5,997 |
|
|
|
5,900 |
|
|
|
18,302 |
|
|
|
17,766 |
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Research and Development |
|
1,357 |
|
|
|
1,224 |
|
|
|
4,438 |
|
|
|
3,917 |
|
Selling, General and
Administrative |
|
3,502 |
|
|
|
3,503 |
|
|
|
11,745 |
|
|
|
11,037 |
|
Total Operating Expenses |
|
4,859 |
|
|
|
4,727 |
|
|
|
16,183 |
|
|
|
14,954 |
|
|
|
|
|
|
|
|
|
Operating Income |
|
1,138 |
|
|
|
1,173 |
|
|
|
2,119 |
|
|
|
2,812 |
|
|
|
|
|
|
|
|
|
Other Income (Expense) |
|
(30 |
) |
|
|
5 |
|
|
|
(167 |
) |
|
|
(156 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Taxes |
|
1,108 |
|
|
|
1,178 |
|
|
|
1,952 |
|
|
|
2,656 |
|
|
|
|
|
|
|
|
|
Income Tax Provision |
|
92 |
|
|
|
130 |
|
|
|
213 |
|
|
|
312 |
|
|
|
|
|
|
|
|
|
Net Income |
|
1,016 |
|
|
|
1,048 |
|
|
|
1,739 |
|
|
|
2,344 |
|
|
|
|
|
|
|
|
|
Net Loss (Income) Attributable to Non-Controlling
Interest |
|
3 |
|
|
|
(1 |
) |
|
|
25 |
|
|
|
23 |
|
|
|
|
|
|
|
|
|
Net Income Attributable to Ultralife
Corporation |
$ |
1,019 |
|
|
$ |
1,047 |
|
|
$ |
1,764 |
|
|
$ |
2,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to
Ultralife Common Shareholders – Basic |
$ |
.07 |
|
|
$ |
.07 |
|
|
$ |
.12 |
|
|
$ |
.14 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Share Attributable to
Ultralife Common Shareholders – Diluted |
$ |
.07 |
|
|
$ |
.07 |
|
|
$ |
.11 |
|
|
$ |
.14 |
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding –
Basic |
|
15,207 |
|
|
|
15,633 |
|
|
|
15,262 |
|
|
|
16,503 |
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding –
Diluted |
|
15,298 |
|
|
|
15,740 |
|
|
|
15,446 |
|
|
|
16,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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