The LGL Group, Inc. (NYSE American: LGL) (the “Company” or
“LGL”), announced results for the three and six months ended June
30, 2017.
Summary of Q2 2017 Financial Results:
- Revenues of $5.9 million, up 12.0%
compared to Q2 2016
- Net income of $0.01 per share,
consistent with Q2 2016
- Order backlog improved 12.3% to $10.9
million, compared to $9.7 million at June 30, 2016
- Adjusted EBITDA(1) was $0.09 per share,
compared to $0.08 for Q2 2016
Commenting on the Company’s Q2 2017 results, Chairman and CEO,
Michael J. Ferrantino, Sr. said, “I would like to share with you a
little more detail around the financial results for this quarter.
First, we are always pleased to have a positive book to bill ratio
which certainly is an indicator of how the future of the business
is trending. What is most significant about this last quarter is
the increase in revenue was primarily generated by engineering
prototypes; investments that we are confident will produce future
revenue streams once qualified by our customers.”
Our Strategy
Mr. Ferrantino had these comments regarding the Company’s
strategy, “Our organic strategy continues to be providing complex,
less competitive integrated assemblies. This will, however, create
some unevenness to quarter over quarter revenue growth since the
dollar value of some of these projects can be substantial. As a
result, we expect the third quarter revenues to be down from the
second quarter, and back up again for the fourth quarter.”
Mr. Ferrantino continued, “As for our external strategy, we have
increased our acquisition bandwidth to include companies that are
inside and outside of our current space. At LGL, we will look
outside of our industry for undervalued companies much like ours
where our management expertise can rapidly drive top and bottom
line growth. Our motivation continues to be increasing shareholder
value as quickly as we can.”
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.
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.
(1) See reconciliation of GAAP to Non-GAAP measures.
THE LGL GROUP, INC.
Condensed Consolidated Statements of
Operations - UNAUDITED
(Dollars in Thousands, Except Shares and Per Share Amounts)
For the three months ended June
30,
2017 2016
REVENUES $ 5,859 $ 5,231 Costs and expenses: Manufacturing
cost of sales 3,992 3,459 Engineering, selling and administrative
1,823 1,746
OPERATING INCOME 44
26 Total other income (expense) 1 (11 )
INCOME BEFORE INCOME TAXES 45 15 Income tax (provision)
benefit (25 ) 1
NET INCOME
$ 20 $ 16 Weighted average number of shares
used in basic EPS calculation 2,675,465
2,665,434 Weighted average number of shares used in diluted
EPS calculation 2,687,774 2,665,434
BASIC AND DILUTED NET INCOME PER COMMON
SHARE
$ 0.01 $ 0.01
For the six months ended June
30,
2017 2016 REVENUES
$ 11,483 $ 9,987 Costs and expenses: Manufacturing cost of sales
7,550 6,716 Engineering, selling and administrative 3,781
3,407
OPERATING INCOME (LOSS) 152 (136
) Total other income 7 25
INCOME
(LOSS) BEFORE INCOME TAXES 159 (111 ) Income tax (provision)
benefit (28 ) 1
NET INCOME
(LOSS) $ 131 $ (110 ) Weighted average number of
shares used in basic EPS calculation 2,675,465
2,665,434 Weighted average number of shares used in diluted
EPS calculation 2,688,127 2,665,434
BASIC AND DILUTED NET INCOME (LOSS) PER COMMON SHARE $ 0.05
$ (0.04 )
THE LGL GROUP, INC.
Condensed Consolidated Balance
Sheets
(Dollars in Thousands)
June 30,
2017
December 31,
2016
(Unaudited)
ASSETS
Cash and cash equivalents $ 2,158 $ 2,778 Marketable securities
3,813 2,770 Accounts receivable, net of allowances of $32 and $31,
respectively 3,065 3,504 Inventories, net 4,082 3,638 Prepaid
expenses and other current assets 207 200 Total
Current Assets 13,325 12,890 Property, plant and equipment, net
2,415 2,711 Intangible assets, net 590 628 Deferred income taxes,
net 196 214 Other assets, net 219 203 Total Assets $
16,745 $ 16,646
LIABILITIES AND STOCKHOLDERS’
EQUITY
Total Liabilities 2,666 2,755 Stockholders’ Equity 14,079
13,891 Total Liabilities and Stockholders’ Equity $ 16,745 $
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 period ended June 30, 2017 (000’s, except
shares and per share amounts) Three months Six
months Net income before income taxes $ 45 $ 159
Interest expense 5 11 Depreciation and amortization 176 363
Non-cash stock compensation 8 15 Adjusted EBITDA $
234 $ 548
Basic per share information:
Weighted average shares outstanding. 2,675,465
2,675,465 Adjusted EBITDA. $ 0.09 $ 0.20
Diluted per share information:
Weighted average shares outstanding. 2,687,774
2,688,127 Adjusted EBITDA. $ 0.09 $ 0.20
For the period ended June 30, 2016 (000’s, except shares and
per share amounts)
Three months Six months Net income (loss)
before income taxes $ 15 $ (111 ) Interest expense 7 13
Depreciation and amortization 197 401 Non-cash stock compensation 3
(13 ) Gain on disposal of assets — (36 ) Adjusted
EBITDA $ 222 $ 254 Weighted average number of shares
used in basic and diluted EPS calculation 2,665,434
2,665,434 Adjusted EBITDA per share $ 0.08 $ 0.10
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version on businesswire.com: http://www.businesswire.com/news/home/20170810006100/en/
The LGL Group, Inc.Patti Smith,
407-298-2000pasmith@lglgroup.com
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