Ultralife Corporation Reports Fourth Quarter Results
February 09 2017 - 7:00AM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$1.6 million on revenue of $21.6 million for the fourth quarter
ended December 31, 2016 compared to operating income of $.5 million
on revenue of $19.3 million for the fourth quarter of 2015.
For total year 2016, Ultralife produced operating income of $3.8
million on revenue of $82.5 million compared to operating income of
$3.3 million on revenue of $76.4 million for 2015.
“Strong operating leverage on 12% year-over-year revenue growth
for the fourth quarter produced EPS of $0.11, our highest quarterly
result this year and a more than three-fold increase over last
year. Revenue growth for the quarter reflects gains from our
Accutronics acquisition and Communications Systems business even
though we experienced lower U.S. government/defense battery
sales. For the year, we achieved our stated goal of
generating profitable growth, posting 13% operating income growth
on an 8% revenue increase,” said Michael D. Popielec, President and
Chief Executive Officer. “As we look ahead to 2017, an
improving backlog and disciplined execution of our business model
while continuing to invest in market and sales reach expansion and
new product development, positions us well to further diversify
beyond our core U.S. government/defense business and achieve
another year of profitable growth.”
Fourth Quarter 2016 Financial Results
Revenue was $21.6 million, an increase of $2.4 million, or
12.3%, compared to $19.3 million for the fourth quarter of 2015
reflecting higher medical sales, the addition of Accutronics and
higher Communications Systems sales partially offset by lower
government/defense Battery & Energy sales. Battery &
Energy Products sales increased $1.0 million to $17.6 million, or
5.9%, compared to $16.6 million last year due primarily to higher
medical sales and the contribution of Accutronics, partially offset
by lower government/defense and 9-Volt sales. Communications
Systems sales grew 53.4% to $4.0 million compared to $2.6 million
for the same period last year reflecting shipments of Vehicle
Installed Power Enhanced Riflemen Appliqué (“VIPER”) units to
fulfill an additional order received for the fourth quarter.
Gross profit was $6.8 million, or 31.5% of revenue, compared to
$5.6 million, or 28.8% of revenue, for the same quarter a year
ago. Battery & Energy Products’ gross margin was 29.4%,
compared to 27.6% last year, an increase of 180 basis points
reflecting higher volume and favorable product mix including the
contribution of Accutronics. Communications Systems’ gross
margin was 40.6%, compared to 36.4% last year, an increase of 420
basis points primarily due to sales
mix.
Operating expenses were $5.2 million compared to $5.0 million
last year reflecting the addition of Accutronics, partially offset
by the 2015 write down of a Communications Systems trademark and
continued tight control over discretionary spending.
Operating expenses were 23.9% of revenue compared to 26.1% of
revenue for the year earlier period.
Operating income was $1.6 million compared to $.5 million last
year for an operating margin of 7.6% compared to 2.7% last
year.
Net income was $1.7 million, or $0.11 per share, compared to net
income of $0.5 million, or $0.03 per share, for the fourth 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 fourth 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 |
|
December 31, |
|
December 31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
Current
Assets: |
|
|
|
|
Cash |
$10,706 |
|
|
$14,533 |
|
|
Trade Accounts Receivable, Net |
|
13,179 |
|
|
|
11,430 |
|
|
Inventories |
|
23,456 |
|
|
|
23,814 |
|
|
Prepaid Expenses and Other Current Assets |
|
2,173 |
|
|
|
2,169 |
|
|
Total Current Assets |
|
49,514 |
|
|
|
51,946 |
|
|
|
|
|
|
|
Property,
Equipment and Improvements, Net |
|
7,999 |
|
|
|
9,038 |
|
|
Goodwill,
Intangibles and Other Assets |
|
27,231 |
|
|
|
20,538 |
|
|
Total Assets |
$84,744 |
|
|
$81,522 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
Current
Liabilities: |
|
|
|
Accounts Payable |
$7,292 |
|
|
$6,494 |
|
|
Accrued Compensation and Related Benefits |
|
1,258 |
|
|
|
2,377 |
|
|
Accrued Expenses and Other Current Liabilities |
|
2,778 |
|
|
|
1,976 |
|
|
Current Portion of Debt |
|
- |
|
|
|
- |
|
|
Total Current Liabilities |
|
11,328 |
|
|
|
10,847 |
|
|
Deferred
Income Taxes and Other Non-Current Liabilities |
|
5,556 |
|
|
|
4,659 |
|
|
Total Liabilities |
|
16,884 |
|
|
|
15,506 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Common Stock |
|
1,932 |
|
|
|
1,918 |
|
|
Capital in Excess of Par Value |
|
178,163 |
|
|
|
177,007 |
|
|
Accumulated Deficit |
|
(90,542) |
|
|
|
(94,051) |
|
|
Accumulated Other Comprehensive Loss |
|
(3,080) |
|
|
|
(907) |
|
|
Treasury Stock |
|
(18,443) |
|
|
|
(17,808) |
|
|
Total Ultralife Equity |
|
68,030 |
|
|
|
66,159 |
|
|
Non-Controlling Interest |
|
(170) |
|
|
|
(143) |
|
|
Total Shareholders’ Equity |
|
67,860 |
|
|
|
66,016 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$84,744 |
|
|
$81,522 |
|
|
|
ULTRALIFE CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(In Thousands Except Per Share
Amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Month Periods Ended |
|
Year Ended |
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenues: |
|
|
|
|
|
|
|
Battery
& Energy Products |
$17,611 |
|
|
$16,634 |
|
|
$64,753 |
|
|
$65,272 |
|
Communication Systems |
|
4,014 |
|
|
|
2,617 |
|
|
|
17,707 |
|
|
|
11,155 |
|
Total Revenues |
|
21,625 |
|
|
|
19,251 |
|
|
|
82,460 |
|
|
|
76,427 |
|
|
|
|
|
|
|
|
|
Cost of
Products Sold: |
|
|
|
|
|
|
|
Battery
& Energy Products |
|
12,436 |
|
|
|
12,036 |
|
|
|
45,173 |
|
|
|
46,574 |
|
Communication Systems |
|
2,384 |
|
|
|
1,665 |
|
|
|
12,179 |
|
|
|
6,537 |
|
Total Cost of Products Sold |
|
14,820 |
|
|
|
13,701 |
|
|
|
57,352 |
|
|
|
53,111 |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
6,805 |
|
|
|
5,550 |
|
|
|
25,108 |
|
|
|
23,316 |
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
Research
and Development |
|
1,508 |
|
|
|
1,686 |
|
|
|
5,946 |
|
|
|
5,603 |
|
Selling,
General and Administrative |
|
3,653 |
|
|
|
3,196 |
|
|
|
15,399 |
|
|
|
14,233 |
|
Intangible Asset Impairment |
|
- |
|
|
|
150 |
|
|
|
- |
|
|
|
150 |
|
Total
Operating Expenses |
|
5,161 |
|
|
|
5,032 |
|
|
|
21,345 |
|
|
|
19,986 |
|
|
|
|
|
|
|
|
|
Operating
Income |
|
1,644 |
|
|
|
518 |
|
|
|
3,763 |
|
|
|
3,330 |
|
|
|
|
|
|
|
|
|
Other
Expense |
|
(16) |
|
|
|
(24) |
|
|
|
(183) |
|
|
|
(180) |
|
Income Before
Income Taxes |
|
1,628 |
|
|
|
494 |
|
|
|
3,580 |
|
|
|
3,150 |
|
|
|
|
|
|
|
|
|
Income Tax Provision
(Benefit) |
|
(115) |
|
|
|
(2) |
|
|
|
98 |
|
|
|
310 |
|
|
|
|
|
|
|
|
|
Net
Income |
|
1,743 |
|
|
|
496 |
|
|
|
3,482 |
|
|
|
2,840 |
|
|
|
|
|
|
|
|
|
Net Loss Attributable
to Non-Controlling Interest |
|
2 |
|
|
|
6 |
|
|
|
27 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Ultralife Corporation |
$1,745 |
|
|
$502 |
|
|
$3,509 |
|
|
$2,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Comprehensive Income: |
|
|
|
|
|
|
|
Foreign
Currency Translation Adjustments |
|
(858) |
|
|
|
(157) |
|
|
|
(2,173) |
|
|
|
(440) |
|
Comprehensive
Income Attributable to Ultralife |
$887 |
|
|
$345 |
|
|
$1,336 |
|
|
$2,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Basic |
$.11 |
|
$.03 |
|
$.23 |
|
$.18 |
|
|
|
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Diluted |
$.11 |
|
$.03 |
|
$.23 |
|
$.17 |
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding – Basic |
|
15,259 |
|
|
|
15,271 |
|
|
|
15,261 |
|
|
|
16,182 |
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding – Diluted |
|
15,360 |
|
|
|
15,757 |
|
|
|
15,405 |
|
|
|
16,458 |
|
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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