The LGL Group, Inc. (NYSE MKT: LGL) (the “Company” or “LGL”),
announced results for the quarter ended March 31, 2017.
Summary of Q1 2017 Financial Results:
- Revenues of $5.6 million, up 18.3%
compared to Q1 2016
- Net income of $0.04 per share compared
to a net loss of ($0.05) per share in Q1 2016
- Order backlog improved 21% to $10.9
million at March 31, 2017 from $9.0 million at March 31, 2016
- Adjusted EBITDA(1) was $0.12 per share,
compared to $0.01 per share for Q1 2016
Commenting on the Company’s 2017 results, Chairman and CEO,
Michael J. Ferrantino, Sr. stated, “I’m very pleased to report our
first quarter financial results. We saw growth in both revenues and
income from the same prior year period. And net income, although
modest, is a great start to the new year. I would also like to
highlight the 21% growth in our backlog which was close to $11
million at the close of the quarter and a strong indicator of how
our revenue stream should improve.”
Mr. Ferrantino continued, “It has been almost two and a half
years since we implemented our strategy and I am pleased to confirm
it is still in place today. Basically, that strategy is to move
away from markets where there are a large number of competitors
bidding unrealistic prices. Ultimately, chasing that kind of
business leads to major problems one of which is the inability to
invest in new product development. We have done an excellent job of
moving away from these low-to-no margin products while, in
parallel, developing higher margin, market-driven,
highly-engineered assemblies. Having a strategy that is
understandable is important. Execution of that strategy is
essential. Over the last two and a half years, our team has
executed with precision and that has certainly paid off as is
evidenced by the continued improvement.”
In closing, Mr. Ferrantino added, “Finally, I intend to close
all future correspondence to our shareholders and potential
shareholders with the following statement. ‘Our future is only
limited by our bandwidth which continues to broaden every
year.’”
About The LGL Group, Inc.
The LGL Group, Inc., through its two principal subsidiaries
MtronPTI and PTF, designs, manufactures and markets
highly-engineered electronic components used to control the
frequency or timing of signals in electronic circuits, and designs
high performance Frequency and Time reference standards that form
the basis for timing and synchronization in various
applications.
Headquartered in Orlando, Florida, the Company has additional
design and manufacturing facilities in Yankton, South Dakota,
Wakefield, Massachusetts and Noida, India, with local sales offices
in Hong Kong, Sacramento, California and Austin, Texas.
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.
(1) See reconciliation of GAAP to Non-GAAP measures.
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)
For the three months ended March 31, 2017
2016 REVENUES $ 5,624 $ 4,756 Costs and expenses:
Manufacturing cost of sales 3,558 3,257 Engineering, selling and
administrative 1,958 1,661 OPERATING
INCOME (LOSS) 108 (162 ) Total other income 6
36 INCOME (LOSS) BEFORE INCOME TAXES 114 (126 ) Income tax
provision (3 ) — NET INCOME (LOSS) $ 111
$ (126 ) Weighted average number of shares used in
basic EPS calculation 2,675,466 2,665,434
Weighted average number of shares used in diluted EPS
calculation 2,688,484 2,665,434 BASIC
AND DILUTED NET INCOME (LOSS) PER COMMON SHARE $ 0.04 $
(0.05 )
THE LGL GROUP, INC.
Condensed Consolidated Balance
Sheets
(Dollars in Thousands)
March 31,2017
December 31,2016
(Unaudited) (Audited) ASSETS Cash and cash equivalents $ 1,989 $
2,778 Marketable securities 3,793 2,770 Accounts receivable, net of
allowances of $29 and $31, respectively 3,186 3,504 Inventories,
net 4,050 3,638 Prepaid expenses and other current assets
294 200 Total Current Assets 13,312 12,890 Property, plant
and equipment, net 2,549 2,711 Intangible assets, net 609 628
Deferred income taxes, net 221 214 Other assets, net 204
203 Total Assets $ 16,895 $ 16,646 LIABILITIES AND
STOCKHOLDERS’ EQUITY Total Liabilities 2,865 2,755 Stockholders’
Equity 14,030 13,891 Total Liabilities and
Stockholders’ Equity $ 16,895 $ 16,646
Reconciliations of GAAP to Non-GAAP Measures
To supplement our consolidated condensed financial statements
presented on a GAAP (generally accepted accounting principles)
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
(expense), 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 Income (Loss)
Before Income Taxes to Non-GAAP Adjusted EBITDA:
For the three months ended (000’s, except shares
and per share amounts)
March 31,2017
March 31,2016
Net income (loss) before income taxes $ 114 $ (126 )
Interest expense 6 6 Income tax provision (3 ) — Depreciation and
amortization 187 204 Non-cash stock compensation 7 (16 ) Gain on
disposal of assets — (43 ) Adjusted EBITDA $
311 $ 25
Basic per share information:
Weighted average shares outstanding
2,675,466 2,665,434
Adjusted EBITDA
$ 0.12 $ 0.01
Diluted per share information:
Weighted average shares outstanding
2,688,484 2,665,434
Adjusted EBITDA
$ 0.12 $ 0.01
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version on businesswire.com: http://www.businesswire.com/news/home/20170511005593/en/
The LGL Group, Inc.Patti Smith,
407-298-2000pasmith@lglgroup.com
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