Ultralife Corporation Reports Second Quarter Results
August 03 2017 - 7:00AM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$1.3 million on revenue of $19.9 million for the second quarter
ended July 2, 2017. For the second quarter of 2016, the
Company reported operating income of $0.5 million on revenue of
$20.4 million.
“Building on our solid first quarter performance, for the second
quarter on a year-over-year basis we more than doubled operating
income and doubled EPS to $0.07. We are also encouraged that
our year-over-year core product revenues increased 15% when
excluding last year’s VIPER shipments. Battery & Energy
Products produced an 11% increase in commercial sales, including
10% higher medical sales, while Communications Systems delivered a
92% increase in core product sales. These strong sales gains
demonstrate effective execution of our diversification strategy and
the benefit of investments we have made in new product development
and sales reach expansion. In line with this strategy, we
have made a strategic decision to invest up to $4.3 million of
capital in our Newark facility for the manufacture of primary
batteries for the high-growth, wireless internet of things device
market,” said Michael D. Popielec. “Looking ahead, we are seeing
initial indications of increased demand from government/defense
customers and are well positioned to continue growing our
commercial sales. As a result, we believe we remain on track
to deliver another year of profitable growth.”
Second Quarter 2017 Financial Results
Revenue was $19.9 million, a decrease of $.4 million, or 2%,
compared to $20.4 million for the second quarter of 2016 reflecting
a $1.1 million increase in Battery & Energy Products sales
offset by $1.5 million lower Communications Systems sales.
Battery & Energy Products sales increased 7% to $16.9
million compared to $15.8 million last year, reflecting increases
in both commercial and government/defense sales of 11% and 1%,
respectively. The gain in commercial sales included 10%
growth of medical batteries and chargers. Communications
Systems sales declined 34% to $3.1 million compared to $4.6 million
for the same period last year which included $3.0 million of
Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”)
shipments, while sales of core products such as our 20-watt
amplifiers, universal vehicle adaptors and power supplies increased
92% over the prior-year period.
Gross profit was $6.2 million, or 31.2% of revenue, compared to
$5.9 million, or 29.0% of revenue, for the same quarter a year
ago. Battery & Energy Products’ gross margin was 28.1%,
compared to 29.6% last year, a decrease of 150 basis points due
primarily to incremental supply chain and logistics fees incurred
this quarter. Communications Systems’ gross margin
increased to 48.4%, the highest level ever reported for the
segment, compared to 26.8% for the prior year demonstrating the
high value proposition associated with our core amplifier and
integrated solutions products.
Operating expenses were $4.9 million compared to $5.4 million
last year, a reduction of 9.3% reflecting continued tight control
over discretionary spending in line with our business model.
Operating expenses were 24.6% of revenue compared to 26.5% of
revenue for the year earlier period.
Operating income was $1.3 million compared to $0.5 million last
year.
Net income was $1.1 million, or $0.07 per share, compared to net
income of $0.4 million, or $0.03 per share, for the second quarter
of 2016. Earnings per share for the trailing
twelve-month period increased to $.36 compared to $.32 at the end
of the first quarter of 2017.
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 second 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 |
|
|
July 2, |
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
Current
Assets: |
|
|
|
|
Cash and Cash Equivalents |
$ |
15,016 |
|
|
$ |
10,706 |
|
|
Trade Accounts Receivable, Net |
|
13,543 |
|
|
|
13,179 |
|
|
Inventories |
|
24,490 |
|
|
|
23,456 |
|
|
Prepaid Expenses and Other Current Assets |
|
1,754 |
|
|
|
2,079 |
|
|
Total Current Assets |
|
54,803 |
|
|
|
49,420 |
|
|
|
|
|
|
|
Property,
Equipment and Improvements, Net |
|
7,833 |
|
|
|
7,999 |
|
|
Goodwill,
Intangibles and Other Assets |
|
27,629 |
|
|
|
27,325 |
|
|
Total Assets |
$ |
90,265 |
|
|
$ |
84,744 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
Current
Liabilities: |
|
|
|
Accounts Payable |
$ |
7,647 |
|
|
$ |
7,292 |
|
|
Accrued Compensation and Related Benefits |
|
1,875 |
|
|
|
1,258 |
|
|
Accrued Expenses and Other Current Liabilities |
|
2,352 |
|
|
|
2,778 |
|
|
Total Current Liabilities |
|
11,874 |
|
|
|
11,328 |
|
|
Deferred
Income Taxes and Other Non-Current Liabilities |
|
5,642 |
|
|
|
5,556 |
|
|
Total Liabilities |
|
17,516 |
|
|
|
16,884 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Common Stock |
|
1,957 |
|
|
|
1,932 |
|
|
Capital in Excess of Par Value |
|
179,519 |
|
|
|
178,163 |
|
|
Accumulated Deficit |
|
(87,793 |
) |
|
|
(90,542 |
) |
|
Accumulated Other Comprehensive Loss |
|
(2,327 |
) |
|
|
(3,080 |
) |
|
Treasury Stock |
|
(18,443 |
) |
|
|
(18,443 |
) |
|
Total Ultralife Equity |
|
72,913 |
|
|
|
68,030 |
|
|
Non-Controlling Interest |
|
(164 |
) |
|
|
(170 |
) |
|
Total Shareholders’ Equity |
|
72,749 |
|
|
|
67,860 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
90,265 |
|
|
$ |
84,744 |
|
|
ULTRALIFE CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(In Thousands Except Per Share
Amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Month Periods Ended |
|
Six Month Periods Ended |
|
July 2, |
|
June 26, |
|
July 2, |
|
June 26, |
|
2017 |
|
2016 |
|
|
2017 |
|
|
2016 |
Revenues: |
|
|
|
|
|
|
|
Battery & Energy Products |
$ |
16,880 |
|
$ |
15,759 |
|
$ |
34,359 |
|
|
$ |
32,199 |
Communication Systems |
|
3,059 |
|
|
4,612 |
|
|
7,615 |
|
|
|
9,005 |
Total Revenues |
|
19,939 |
|
|
20,371 |
|
$ |
41,974 |
|
|
$ |
41,204 |
|
|
|
|
|
|
|
|
Cost of
Products Sold: |
|
|
|
|
|
|
|
Battery & Energy Products |
|
12,139 |
|
|
11,095 |
|
|
24,688 |
|
|
|
22,318 |
Communication Systems |
|
1,579 |
|
|
3,376 |
|
|
4,175 |
|
|
|
6,581 |
Total Cost of Products Sold |
|
13,718 |
|
|
14,471 |
|
|
28,863 |
|
|
|
28,899 |
|
|
|
|
|
|
|
|
Gross Profit |
|
6,221 |
|
|
5,900 |
|
|
13,111 |
|
|
|
12,305 |
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
Research and Development |
|
1,185 |
|
|
1,425 |
|
|
2,323 |
|
|
|
3,081 |
Selling, General and Administrative |
|
3,714 |
|
|
3,976 |
|
|
7,625 |
|
|
|
8,243 |
Total Operating Expenses |
|
4,899 |
|
|
5,401 |
|
|
9,948 |
|
|
|
11,324 |
|
|
|
|
|
|
|
|
Operating
Income |
|
1,322 |
|
|
499 |
|
|
3,163 |
|
|
|
981 |
|
|
|
|
|
|
|
|
Other
Expense |
|
49 |
|
|
24 |
|
|
142 |
|
|
|
137 |
Income Before
Income Taxes |
|
1,273 |
|
|
475 |
|
|
3,021 |
|
|
|
844 |
|
|
|
|
|
|
|
|
Income Tax
Provision |
|
179 |
|
|
33 |
|
|
266 |
|
|
|
121 |
|
|
|
|
|
|
|
|
Net
Income |
|
1,094 |
|
|
442 |
|
|
2,755 |
|
|
|
723 |
|
|
|
|
|
|
|
|
Net( Income) Loss
Attributable to Non-Controlling Interest |
|
- |
|
|
4 |
|
|
(6 |
) |
|
|
22 |
|
|
|
|
|
|
|
|
Net Income
Attributable to Ultralife Corporation |
$ |
1,094 |
|
$ |
446 |
|
$ |
2,749 |
|
|
$ |
745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Basic |
$.07 |
|
$.03 |
|
$.18 |
|
$.05 |
|
|
|
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Diluted |
$.07 |
|
$.03 |
|
$.17 |
|
$.05 |
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding – Basic |
|
15,510 |
|
|
15,528 |
|
|
15,461 |
|
|
|
15,290 |
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding – Diluted |
|
15,850 |
|
|
15,419 |
|
|
15,752 |
|
|
|
15,545 |
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
Ultralife (NASDAQ:ULBI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ultralife (NASDAQ:ULBI)
Historical Stock Chart
From Apr 2023 to Apr 2024