The LGL Group, Inc. (NYSE American: LGL) (the “Company” or
“LGL”), announced results for the three and nine months ended
September 30, 2017.
Summary of Q3 2017 Financial Results:
- Revenue of $5.3 million, up 2.6%
compared to Q3 2016
- Net income of $0.01 per share,
consistent with Q3 2016
- Order backlog declined 10.0% to $9.9
million, compared to $11.0 million at September 30, 2016
- Adjusted EBITDA(1) was $0.06 per share,
consistent with Q3 2016
Commenting on the Company’s Q3 2017 results, Chairman and CEO,
Michael J. Ferrantino, Sr. said, “Although revenue was higher than
the same period last year, had it not been for Hurricane Irma
revenue would’ve been even higher. Our Orlando facility was in the
flight path of the storm. Once we knew Irma was hitting the central
Florida area on Saturday we put in place our inclement weather
protocol. On Friday we shut down all manufacturing operations and
powered down most of our equipment so that in the event of a power
failure a surge would not damage any of our dynamic test equipment.
We also took precaution to protect all our work in process
inventory by storing everything in a hermetic container minimizing
exposure to humidity. Fortunately, that process paid off and
although we were without power for effectively four days, there was
no damage to our products or equipment. When the storm ended and
the power was restored, by the following Wednesday our team
returned to the facility, cleaned up some minor water damage,
brought in dryers and operations were started on Thursday. So I am
happy to report we came through the storm with no structural damage
to the building, no loss of materials or equipment and most
importantly all of our Florida employees returned to work safe and
sound.
“As for new orders, we effectively were offline for four
business days but we believe we did not experience any significant
loss of business as a result of the storm. The major issue was
related to the push out from August to what now appears to be
November, of a three year contract. Not a loss of business to a
competitor but a period event that moved the transaction out of the
third period into the fourth. I believe that during the fourth and
final quarter of 2017 we will return to normal, make up for the
third quarter shortfall and by the New Year, Irma will be a distant
memory.”
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 Michael Ferrantino 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 September 30, 2017 2016
REVENUES $ 5,262 $ 5,128 Costs and expenses:
Manufacturing cost of sales 3,513 3,353 Engineering, selling and
administrative 1,748 1,803
OPERATING
INCOME 1 (28 ) Total other income, net 18
60
INCOME BEFORE INCOME TAXES 19 32 Income tax
provision (2 ) —
NET INCOME $ 17
$ 32 Weighted average number of shares used in
basic EPS calculation 2,675,465 2,665,189
Weighted average number of shares used in diluted EPS
calculation 2,689,911 2,665,831
BASIC AND DILUTED NET INCOME PER COMMON SHARE $ 0.01
$ 0.01
For the nine months ended
September 30, 2017 2016
REVENUES $ 16,745 $ 15,115 Costs and expenses: Manufacturing
cost of sales 11,063 10,069 Engineering, selling and administrative
5,529 5,210
OPERATING INCOME
(LOSS) 153 (164 ) Total other income, net 25
85
INCOME (LOSS) BEFORE INCOME TAXES 178 (79 )
Income tax (provision) benefit (30 ) 1
NET INCOME (LOSS) $ 148 $ (78 ) Weighted
average number of shares used in basic EPS calculation
2,675,465 2,665,352 Weighted average number of
shares used in diluted EPS calculation 2,688,544
2,665,352
BASIC AND DILUTED NET INCOME (LOSS) PER
COMMON SHARE $ 0.06 $ (0.03 )
THE LGL GROUP, INC.
Condensed Consolidated Balance Sheets (Dollars in
Thousands) September 30, December
31, 2017 2016 (Unaudited) (Audited)
ASSETS
Cash and cash equivalents $ 1,976 $ 2,778 Marketable securities
3,787 2,770 Accounts receivable, net of allowances of $27 and $31,
respectively 3,237 3,504 Inventories, net 3,907 3,638 Prepaid
expenses and other current assets 214 200 Total Current Assets
13,121 12,890 Property, plant and equipment, net 2,267 2,711
Intangible assets, net 572 628 Deferred income taxes, net 202 214
Other assets, net 337 203 Total Assets $ 16,499 $ 16,646
LIABILITIES AND STOCKHOLDERS’ EQUITY Total Liabilities 2,410
2,755 Stockholders’ Equity 14,089 13,891 Total Liabilities and
Stockholders’ Equity $ 16,499 $ 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 periods ended September 30, 2017 (000’s, except shares
and per share amounts) Three months
Nine months Net income before income taxes $ 19 $ 178
Interest expense 6 17 Depreciation and amortization 157 520
Non-cash stock compensation 7 22 Gain on sale of marketable
securities (21 ) — Adjusted EBITDA $ 168 $ 737
Basic per share information:
Weighted average shares outstanding. 2,675,465
2,675,465 Adjusted EBITDA. $ 0.06 $ 0.28
Diluted per share information:
Weighted average shares outstanding. 2,689,911
2,688,544 Adjusted EBITDA. $ 0.06 $ 0.27
For the periods ended September 30, 2016 (000’s, except
shares and per share amounts)
Three months Nine months Net
income (loss) before income taxes $ 32 $ (79 ) Interest expense 7
20 Depreciation and amortization 186 587 Non-cash stock
compensation 9 (4 ) Gain on disposal of assets (74 ) (110 ) Bargain
purchase gain (4 ) (4 ) Adjusted EBITDA $ 156
$ 410 Basic per share information: Weighted average
shares outstanding. 2,665,189 2,665,352
Adjusted EBITDA. $ 0.06 $ 0.15 Diluted per
share information: Weighted average shares outstanding.
2,665,831 2,665,352 Adjusted EBITDA. $ 0.06
$ 0.15
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171106006039/en/
The LGL Group, Inc.Michael Ferrantino,
407-298-2000pasmith@lglgroup.com
LGL (AMEX:LGL)
Historical Stock Chart
From Aug 2024 to Sep 2024
LGL (AMEX:LGL)
Historical Stock Chart
From Sep 2023 to Sep 2024