Ultralife Corporation Reports First Quarter Results
May 04 2017 - 7:00AM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$1.8 million on revenue of $22.0 million for the first quarter
ended April 2, 2017. For the first quarter of 2016, the
Company reported operating income of $0.5 million on revenue of
$20.8 million.
“Our diversified portfolio of commercial and government/defense
products contributed across the board to a 5.8% increase in sales
and a gross margin of 31.3% for the first quarter. On
the strength of these positive results and continued cost
discipline, we delivered a 610 basis-point improvement in operating
margin to 8.4% and increased EPS more than five-fold to $0.11, for
our tenth consecutive quarter of profitability,” said Michael D.
Popielec. “Our first quarter performance, strong cash
generation and opportunities created by continued investments in
market and sales reach expansion and new product development are
encouraging indicators for another year of profitable growth in
2017.”
First Quarter 2017 Financial Results
Revenue was $22.0 million, an increase of $1.2 million, or 5.8%,
compared to $20.8 million for the first quarter of 2016 reflecting
higher medical and government/defense sales. Battery &
Energy Products sales increased $1.0 million to $17.5 million, or
6.3%, compared to $16.4 million last year due primarily to higher
government/defense, medical, and 9-Volt sales. Communications
Systems grew 3.7% to $4.6 million compared to $4.4 million for the
same period last year reflecting shipments of power supplies to a
large global defense prime contractor which more than offset the
year-earlier shipments under the Vehicle Installed Power Enhanced
Riflemen Appliqué (“VIPER”) Program.
Gross profit was $6.9 million, or 31.3% of revenue, compared to
$6.4 million, or 30.7% of revenue, for the same quarter a year
ago. Battery & Energy Products’ gross margin was 28.2%,
compared to 31.7% last year, a decrease of 350 basis points, and
Communications Systems’ gross margin was 43.0%, compared to 27.0%
last year, an increase of 1,600 basis points. For both
businesses, the fluctuations in gross margin resulted from
variations in product mix.
Operating expenses were $5.0 million compared to
$5.9 million last year reflecting discretionary spending reduction
actions, acquisition cost synergies and $0.2 million of
non-recurring expenses related to last year’s acquisition of
Accutronics Ltd. Operating expenses were 22.9% of revenue
compared to 28.4% of revenue for the year-earlier period.
Operating income was $1.8 million compared to $0.5 million last
year for an operating margin of 8.4% compared to 2.3% last
year.
Net income was $1.7 million, or $0.11 per share, compared to net
income of $0.3 million, or $0.02 per share, for the first quarter
of 2016.
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 first 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 revenues from key customers, 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 |
|
April 2, |
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
Current
Assets: |
|
|
|
|
Cash and Cash Equivalents |
|
$13,679 |
|
|
|
$10,706 |
|
|
Trade Accounts Receivable, Net |
|
13,747 |
|
|
|
13,179 |
|
|
Inventories |
|
22,729 |
|
|
|
23,456 |
|
|
Prepaid Expenses and Other Current Assets |
|
1,995 |
|
|
|
2,079 |
|
|
Total Current Assets |
|
52,150 |
|
|
|
49,420 |
|
|
|
|
|
|
|
Property,
Equipment and Improvements, Net |
|
8,071 |
|
|
|
7,999 |
|
|
Goodwill,
Intangibles and Other Assets |
|
27,361 |
|
|
|
27,325 |
|
|
Total Assets |
|
$87,582 |
|
|
|
$84,744 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
Current
Liabilities: |
|
|
|
Accounts Payable |
|
$7,071 |
|
|
|
$7,292 |
|
|
Accrued Compensation and Related Benefits |
|
1,708 |
|
|
|
1,258 |
|
|
Accrued Expenses and Other Current Liabilities |
|
2,627 |
|
|
|
2,778 |
|
|
Total Current Liabilities |
|
11,406 |
|
|
|
11,328 |
|
|
Deferred
Income Taxes and Other Non-Current Liabilities |
|
5,604 |
|
|
|
5,556 |
|
|
Total Liabilities |
|
17,010 |
|
|
|
16,884 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Common Stock |
|
1,951 |
|
|
|
1,932 |
|
|
Capital in Excess of Par Value |
|
178,936 |
|
|
|
178,163 |
|
|
Accumulated Deficit |
|
(88,887) |
|
|
|
(90,542) |
|
|
Accumulated Other Comprehensive Loss |
|
(2,821) |
|
|
|
(3,080) |
|
|
Treasury Stock |
|
(18,443) |
|
|
|
(18,443) |
|
|
Total Ultralife Equity |
|
70,736 |
|
|
|
68,030 |
|
|
Non-Controlling Interest |
|
(164) |
|
|
|
(170) |
|
|
Total Shareholders’ Equity |
|
70,572 |
|
|
|
67,860 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$87,582 |
|
|
|
$84,744 |
|
|
ULTRALIFE CORPORATION
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME (In Thousands Except Per Share
Amounts) |
(Unaudited) |
|
Three Month Periods Ended |
|
April 2, |
|
March 27, |
|
|
2017 |
|
|
|
2016 |
|
Revenues: |
|
|
|
Battery
& Energy Products |
|
$17,479 |
|
|
|
$16,440 |
|
Communications Systems |
|
4,556 |
|
|
|
4,393 |
|
Total
Revenues |
|
22,035 |
|
|
|
20,833 |
|
|
|
|
|
Cost of
Products Sold: |
|
|
|
Battery
& Energy Products |
|
12,549 |
|
|
|
11,223 |
|
Communications Systems |
|
2,596 |
|
|
|
3,205 |
|
Total Cost of
Products Sold |
|
15,145 |
|
|
|
14,428 |
|
|
|
|
|
Gross Profit |
|
6,890 |
|
|
|
6,405 |
|
|
|
|
|
Operating
Expenses: |
|
|
|
Research
and Development |
|
1,138 |
|
|
|
1,656 |
|
Selling,
General and Administrative |
|
3,911 |
|
|
|
4,267 |
|
Total Operating
Expenses |
|
5,049 |
|
|
|
5,923 |
|
|
|
|
|
Operating
Income |
|
1,841 |
|
|
|
482 |
|
|
|
|
|
Other
Expense |
|
(93) |
|
|
|
(113) |
|
Income before
Income Taxes |
|
1,748 |
|
|
|
369 |
|
|
|
|
|
Income Tax
Provision |
|
(87) |
|
|
|
(88) |
|
|
|
|
|
|
|
|
|
Net
Income |
|
1,661 |
|
|
|
281 |
|
|
|
|
|
Net (Income) Loss
Attributable to Non-Controlling Interest |
|
(6) |
|
|
|
18 |
|
|
|
|
|
Net Income
Attributable to Ultralife Corporation |
|
$1,655 |
|
|
|
$299 |
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Basic |
|
|
|
|
|
|
|
$0.11 |
|
|
|
$0.02 |
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Diluted |
|
|
|
|
|
|
|
$0.11 |
|
|
|
$0.02 |
|
|
|
|
|
Weighted
Average Shares Outstanding – Basic |
|
15,412 |
|
|
|
15,323 |
|
Weighted
Average Shares Outstanding – Diluted |
|
15,656 |
|
|
|
15,666 |
|
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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