American Locker Group Reports 2011 Earnings
March 15 2012 - 7:00PM
Business Wire
American Locker Group Incorporated (OTCQB: ALGI), the worldwide
leader in secure storage solutions, today reported its results for
the year ended December 31, 2011. American Locker reported net
sales of $13.4 million and net income of $37,000, or $0.02 per
share.
2011 Year End Results
2011 2010 Vs. 2010 Net sales $13.4 million $12.1 million
10.6% Net income $37,000 $68,000 -45.7% Adjusted
EBITDA $753,000 $628,000 19.9% Earnings per share $0.02
$0.04 -50.0%
The increase in revenue was driven by increased concession
revenue received pursuant to the Company’s contract with Disney, in
addition to increased locker sales. The Company’s reorganization of
its outside sales efforts also contributed to increased
revenue.
The decrease in net income for 2011 as compared to 2010 was a
result of increased rent expense of $347,000, as well as increased
depreciation expense of $335,000. The increase in rent expense is
due to the commencement of rent for the new DFW facility. The
increase in depreciation is due to depreciation of the lockers used
in the Disney contract, in addition to capital improvements related
to the new facility.
"It is a testament to the quality of our people that we were
able to increase revenue and relocate our primary manufacturing
facility during the year," said Paul M. Zaidins, Chief Executive
Officer.
Adjusted EBITDA for the Company totaled $753,000 during 2011, an
increase of $125,000 from 2010. Adjusted EBITDA as a percentage of
revenues for 2011 was 5.6%.
Use of Non-GAAP Financial Measure: Adjusted
EBITDA
To provide investors with additional information regarding the
Company’s financial results, this press release presents Adjusted
EBITDA, a non-GAAP financial measure. The Company has provided a
reconciliation below of net income (loss) to adjusted EBITDA, the
most directly comparable GAAP financial measure.
Adjusted EBITDA is a key metric used by the Company’s management
to monitor and evaluate the performance of the business and
believes the presentation of this measure will enhance investors’
ability to analyze trends in the Company’s business, evaluate the
Company’s performance relative to other companies, and evaluate the
Company’s ability to service debt.
Adjusted EBITDA is not a presentation made in accordance with
GAAP and the Company’s computation of Adjusted EBITDA may vary from
other companies. Adjusted EBITDA should not be considered as an
alternative to operating earnings or net income as a measure of
operating performance. In addition, Adjusted EBITDA is not
presented as and should not be considered as an alternative to cash
flows as a measure of liquidity. Adjusted EBITDA has important
limitations as an analytical tool and should not be considered in
isolation, or as a substitute for analysis of the Company’s results
as reported under GAAP.
Because of these limitations, you should consider Adjusted
EBITDA alongside other financial performance measures, including
various cash flow metrics, net loss and the Company’s other GAAP
results.
Reconciliation of EBITDA calculation for twelve month period
ended December 31:
Year Ended December 31, 2011
2011 2010 Net Income (Loss) $ 37,091 $ 68,369 Income
tax expense (benefit) 43,516 131,796 Interest expense 68,733 16,232
Other income (move allowance in excess of expense) (129,232 ) -
Depreciation and amortization expense 671,009 336,037 Equity based
compensation 62,025 75,516 Adjusted EBITDA $
753,142 $ 627,950
Forward-Looking Statements
In the interests of providing Company shareholders and potential
investors with information regarding the Company, including the
Company’s assessment of its and its subsidiaries’ future plans and
operations, certain statements included in this press release may
constitute forward-looking information or forward-looking
statements (collectively, “forward-looking statements”). All
statements contained herein that are not clearly historical in
nature are forward-looking, and the words “anticipate,” “believe,”
“expect,” “estimate” and similar expressions are generally intended
to identify forward-looking statements. Actual events or results
may differ materially. Although the Company believes that the
expectations reflected in the forward-looking statements are
reasonable, it cannot guarantee future results, levels of activity,
performance or achievement since such expectations are inherently
subject to significant business, economic, competitive, political
and social uncertainties and contingencies. Many factors could
cause the Company’s actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, the Company and the foregoing list of important
factors is not exhaustive. These forward-looking statements made as
of the date hereof disclaim any intent or obligation to update
publicly any forward-looking statements, whether as a result of new
information, future events or results or otherwise. Company
shareholders and potential investors should carefully consider the
information contained in the Company’s filings with United States
securities administrators at www.sec.gov before making investment
decisions with regard to the Company.
About American Locker Group Incorporated
American Locker is the world's premier supplier of secure
storage solutions under the American Locker and Canadian Locker
brands. The Company is best known for manufacturing and servicing
the widely-utilized key and lock system with the iconic plastic
orange cap. Additionally, American Locker provides precision sheet
metal fabrication services to Fortune 1000 customers. Its Security
Manufacturing Corporation subsidiary is a leading provider of
multi-tenant mailboxes.
Further information about American Locker and its subsidiaries
is available at
www.americanlocker.com
www.securitymanufacturing.com
www.canadianlocker.com