Ultralife Corporation Reports Third Quarter Results
November 02 2017 - 7:00AM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$1.3 million on revenue of $21.0 million for the third quarter
ended October 1, 2017. For the quarter ended September 25,
2016, the Company reported operating income of $1.1 million on
revenue of $19.6 million.
“Third quarter sales grew 7% and operating profit increased 11%
further illustrating the solid operating leverage of our business
model. We are particularly pleased to report broad-based sales
growth across a variety of end markets, both commercial and
government/defense, domestically and internationally.
Commercial sales increased 8%, boosted by a 14% gain in medical
sales, while government/defense sales grew 6%, including a 58%
increase within our Battery & Energy Products business.
Having more than doubled both operating profit and EPS for
the first nine months of the year, we are well positioned towards
delivering another year of profitable growth,” said Michael D.
Popielec, President and Chief Executive Officer. “In
addition, the BA-5390 $21.4 million IDIQ award received in March,
the VIPER $4.7 million contract received in August, and the recent
BA-5790/5795 CFx $49.8 million IDIQ award received in September
serve as positive indicators of future growth potential as we
finish out 2017 and head into 2018.”
Third Quarter 2017 Financial Results
Revenue was $21.0 million, an increase of $1.4 million, or 7%,
compared to $19.6 million for the third quarter of 2016 reflecting
a $3.7 million increase in Battery & Energy Products sales
partially offset by $2.3 million lower Communications Systems
sales. Battery & Energy Products sales increased 25% to
$18.6 million compared to $14.9 million last year.
Communications Systems sales declined 48% to $2.4 million compared
to $4.7 million for the same period last year which included $2.3
million of Vehicle Installed Power Enhanced Riflemen Appliqué
(“VIPER”) shipments.
Gross profit was $6.3 million, or 29.7% of revenue, compared to
$6.0 million, or 30.5% of revenue, for the same quarter a year
ago. Battery & Energy Products’ gross margin was 27.9%,
compared to 30.3% last year, a decrease of 240 basis points
reflecting product mix and incremental supply chain and logistics
fees. Communications Systems’ gross margin increased to 44.0%
compared to 31.4% for the prior year demonstrating the high value
proposition associated with core amplifier and integrated solutions
products.
Operating expenses were $5.0 million compared to $4.9 million
last year reflecting continued tight control over discretionary
spending. Operating expenses were 23.7% of revenue compared
to 24.8% of revenue for the year earlier period.
Operating income was $1.3 million compared to $1.1 million last
year for an operating margin of 6.0% compared to 5.8% last
year.
Net income was $1.1 million, or $0.07 per share, versus net
income of $1.0 million, or $0.07 per share, for the third quarter
of 2016. Earnings per share for the trailing twelve-month
period are $0.36.
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.ultralifecorp.com.
Conference Call Information
Ultralife will hold its third 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 |
|
October 1, |
|
December 31, |
|
|
|
2017 |
|
|
|
2016 |
|
|
Current
Assets: |
|
|
|
|
Cash
and Cash Equivalents |
$ |
14,688 |
|
|
$ |
10,706 |
|
|
Trade Accounts Receivable, Net |
|
15,741 |
|
|
|
13,179 |
|
|
Inventories |
|
24,922 |
|
|
|
23,456 |
|
|
Prepaid Expenses and Other Current Assets |
|
2,602 |
|
|
|
2,079 |
|
|
Total Current Assets |
|
57,953 |
|
|
|
49,420 |
|
|
|
|
|
|
|
Property,
Equipment and Improvements, Net |
|
7,612 |
|
|
|
7,999 |
|
|
Goodwill,
Intangibles and Other Assets |
|
27,776 |
|
|
|
27,325 |
|
|
Total Assets |
$ |
93,341 |
|
|
$ |
84,744 |
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY |
Current
Liabilities: |
|
|
|
Accounts Payable |
$ |
7,108 |
|
|
$ |
7,292 |
|
|
Accrued Compensation and Related Benefits |
|
2,286 |
|
|
|
1,258 |
|
|
Accrued Expenses and Other Current Liabilities |
|
3,673 |
|
|
|
2,778 |
|
|
Total Current Liabilities |
|
13,067 |
|
|
|
11,328 |
|
|
Deferred
Income Taxes and Other Non-Current Liabilities |
|
5,732 |
|
|
|
5,556 |
|
|
Total Liabilities |
|
18,799 |
|
|
|
16,884 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Common Stock |
|
1,961 |
|
|
|
1,932 |
|
|
Capital in Excess of Par Value |
|
179,794 |
|
|
|
178,163 |
|
|
Accumulated Deficit |
|
(86,694 |
) |
|
|
(90,542 |
) |
|
Accumulated Other Comprehensive Loss |
|
(1,887 |
) |
|
|
(3,080 |
) |
|
Treasury Stock |
|
(18,470 |
) |
|
|
(18,443 |
) |
|
Total Ultralife Equity |
|
74,704 |
|
|
|
68,030 |
|
|
Non-Controlling Interest |
|
(162 |
) |
|
|
(170 |
) |
|
Total Shareholders’ Equity |
|
74,542 |
|
|
|
67,860 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders'
Equity |
$ |
93,341 |
|
|
$ |
84,744 |
|
|
ULTRALIFE CORPORATION AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME |
(In Thousands Except Per Share
Amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Month Periods Ended |
|
Nine Month Periods Ended |
|
October 1, |
|
September25, |
|
October 1, |
|
September 25, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Revenues: |
|
|
|
|
|
|
|
Battery &
Energy Products |
$ |
18,616 |
|
|
$ |
14,943 |
|
|
$ |
52,977 |
|
|
$ |
47,142 |
|
Communication
Systems |
|
2,431 |
|
|
|
4,688 |
|
|
|
10,045 |
|
|
|
13,693 |
|
Total Revenues |
|
21,047 |
|
|
|
19,631 |
|
|
|
63,022 |
|
|
|
60,835 |
|
|
|
|
|
|
|
|
|
Cost of
Products Sold: |
|
|
|
|
|
|
|
Battery &
Energy Products |
|
13,430 |
|
|
|
10,420 |
|
|
|
38,119 |
|
|
|
32,738 |
|
Communication
Systems |
|
1,362 |
|
|
|
3,214 |
|
|
|
5,537 |
|
|
|
9,795 |
|
Total Cost of Products Sold |
|
14,792 |
|
|
|
13,634 |
|
|
|
43,656 |
|
|
|
42,533 |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
6,255 |
|
|
|
5,997 |
|
|
|
19,366 |
|
|
|
18,302 |
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
Research and
Development |
|
1,355 |
|
|
|
1,357 |
|
|
|
3,678 |
|
|
|
4,438 |
|
Selling, General
and Administrative |
|
3,637 |
|
|
|
3,502 |
|
|
|
11,262 |
|
|
|
11,745 |
|
Total Operating Expenses |
|
4,992 |
|
|
|
4,859 |
|
|
|
14,940 |
|
|
|
16,183 |
|
|
|
|
|
|
|
|
|
Operating
Income |
|
1,263 |
|
|
|
1,138 |
|
|
|
4,426 |
|
|
|
2,119 |
|
|
|
|
|
|
|
|
|
Other
Expense |
|
(58 |
) |
|
|
(30 |
) |
|
|
(200 |
) |
|
|
(167 |
) |
Income Before
Income Taxes |
|
1,205 |
|
|
|
1,108 |
|
|
|
4,226 |
|
|
|
1,952 |
|
|
|
|
|
|
|
|
|
Income Tax
Provision |
|
104 |
|
|
|
92 |
|
|
|
370 |
|
|
|
213 |
|
|
|
|
|
|
|
|
|
Net
Income |
|
1,101 |
|
|
|
1,016 |
|
|
|
3,856 |
|
|
|
1,739 |
|
|
|
|
|
|
|
|
|
Net Loss (Income)
Attributable to Non-Controlling Interest |
|
(3 |
) |
|
|
3 |
|
|
|
(8 |
) |
|
|
25 |
|
|
|
|
|
|
|
|
|
Net Income
Attributable to Ultralife Corporation |
$ |
1,098 |
|
|
$ |
1,019 |
|
|
$ |
3,848 |
|
|
$ |
1,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Basic |
$ |
.07 |
|
|
$ |
.07 |
|
|
$ |
.25 |
|
|
$ |
.12 |
|
|
|
|
|
|
|
|
|
Net Income Per
Share Attributable to Ultralife Common Shareholders –
Diluted |
$ |
.07 |
|
|
$ |
.07 |
|
|
$ |
.24 |
|
|
$ |
.11 |
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding – Basic |
|
15,564 |
|
|
|
15,207 |
|
|
|
15,495 |
|
|
|
15,262 |
|
|
|
|
|
|
|
|
|
Weighted
Average Shares Outstanding – Diluted |
|
15,971 |
|
|
|
15,298 |
|
|
|
15,818 |
|
|
|
15,446 |
|
Company Contact:Ultralife
CorporationPhilip A. Fain(315)
210-6110pfain@ulbi.com
Investor Relations Contact:LHAJody
Burfening(212)
838-3777jburfening@lhai.com
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