Ultralife Corporation Reports First Quarter Results
May 03 2018 - 7:00AM
Ultralife Corporation (NASDAQ:ULBI) reported operating income of
$2.4 million on revenue of $23.1 million for the first quarter
ended April 1, 2018. For the first quarter of 2017, the
Company reported operating income of $1.8 million on revenue of
$22.0 million.
“Our first quarter results demonstrate the leveraged earnings
power of our business model and the diversity of new revenue
opportunities we have been cultivating,” said Michael D. Popielec,
President and Chief Executive Officer. “Total Company
government/defense sales grew 6% driven by strong Communications
Systems shipments and total Company commercial sales grew 3% driven
by higher medical sales. On the strength of 5% revenue
growth, solid gross margins and disciplined expense control,
operating profit grew 28% generating a 10.2% operating
margin. A strong start to the year, backlog, and strict
adherence to our business model parameters give us confidence that
we will deliver another year of profitable
growth.”
First Quarter 2018 Financial Results
Revenue was $23.1 million, an increase of $1.0 million, or 4.7%,
compared to $22.0 million for the first quarter of 2017 reflecting
higher medical and government/defense sales. Battery &
Energy Products sales decreased $.3 million, or 1.5%, to $17.2
million compared to $17.5 million last year due primarily to timing
differences in government/defense shipments, not fully offset by an
18.9% increase in medical sales. Communications Systems grew
28.3% to $5.8 million compared to $4.6 million for the same period
last year reflecting shipments of our Vehicle Amplifier Adapters
for the U.S. Army’s Special Force Assistance Brigades under a
contract awarded in December 2017, power supplies shipments to a
large global defense prime contractor, as well as a 49%
year-over-year increase in shipments of core products such as our
20-watt amplifiers and universal vehicle adapters.
Gross profit was $7.3 million, or 31.6% of revenue, compared to
$6.9 million, or 31.3% of revenue, for the same quarter a year
ago. Battery & Energy Products’ gross margin was 29.2%,
compared to 28.2% last year, and Communications Systems’ gross
margin was 38.4%, compared to 43.0% last year, primarily due to
product mix.
Operating expenses were $4.9 million compared to
$5.0 million last year reflecting continued tight control over
discretionary spending. Operating expenses were 21.4% of
revenue compared to 22.9% of revenue for the year-earlier
period.
Operating income was $2.4 million compared to $1.8 million last
year for an operating margin of 10.2% compared to 8.4% last
year.
Net income was $2.2 million, or $0.14 per share, compared to net
income of $1.7 million, or $0.11 per share, for 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 first 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 |
|
April 1, |
|
December 31, |
|
|
2018 |
|
2017 |
|
Current
Assets: |
|
|
|
|
Cash |
$ |
18,330 |
|
|
$ |
18,330 |
|
|
Trade Accounts Receivable, Net |
|
15,730 |
|
|
|
14,657 |
|
|
Inventories |
|
26,961 |
|
|
|
26,326 |
|
|
Prepaid Expenses and Other Current Assets |
|
2,730 |
|
|
|
2,603 |
|
|
Total Current Assets |
|
63,751 |
|
|
|
61,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property,
Equipment and Improvements, Net |
|
7,359 |
|
|
|
7,570 |
|
|
Goodwill,
Intangibles and Other Assets |
|
27,967 |
|
|
|
27,700 |
|
|
Total Assets |
$ |
99,077 |
|
|
$ |
97,186 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
Current
Liabilities: |
Accounts Payable |
$ |
7,545 |
|
|
$ |
8,787 |
|
|
Accrued Compensation and Related Benefits |
|
1,694 |
|
|
|
2,413 |
|
|
Accrued Expenses and Other Current Liabilities |
|
2,840 |
|
|
|
3,039 |
|
|
Total Current Liabilities |
|
12,079 |
|
|
|
14,239 |
|
|
Deferred
Income Taxes and Other Non-Current Liabilities |
|
3,905 |
|
|
|
3,898 |
|
|
Total Liabilities |
|
15,984 |
|
|
|
18,137 |
|
|
|
|
|
|
|
Shareholders' Equity: |
|
|
|
|
Common Stock |
|
1,989 |
|
|
|
1,966 |
|
|
Capital in Excess of Par Value |
|
181,312 |
|
|
|
180,211 |
|
|
Accumulated Deficit |
|
(80,743 |
) |
|
|
(82,894 |
) |
|
Accumulated Other Comprehensive Loss |
|
(859 |
) |
|
|
(1,611 |
) |
|
Treasury Stock |
|
(18,469 |
) |
|
|
(18,469 |
) |
|
Total Ultralife Equity |
|
83,230 |
|
|
|
79,203 |
|
|
Non-Controlling Interest |
|
(137 |
) |
|
|
(154 |
) |
|
Total Shareholders’ Equity |
|
83,093 |
|
|
|
79,049 |
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
99,077 |
|
|
$ |
97,186 |
|
|
|
ULTRALIFE CORPORATION
AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF
INCOME (In Thousands Except Per Share
Amounts) |
(Unaudited) |
|
Three Month Periods Ended |
|
April 1, |
|
April 2, |
|
2018 |
|
2017 |
Revenues: |
|
|
|
Battery
& Energy Products |
$ |
17,224 |
|
|
$ |
17,479 |
|
Communications Systems |
|
5,845 |
|
|
|
4,556 |
|
Total
Revenues |
|
23,069 |
|
|
|
22,035 |
|
|
|
|
|
Cost of
Products Sold: |
|
|
|
Battery
& Energy Products |
|
12,188 |
|
|
|
12,549 |
|
Communications Systems |
|
3,599 |
|
|
|
2,596 |
|
Total Cost of
Products Sold |
|
15,787 |
|
|
|
15,145 |
|
|
|
|
|
Gross Profit |
|
7,282 |
|
|
|
6,890 |
|
|
|
|
|
Operating
Expenses: |
|
|
|
Research
and Development |
|
1,101 |
|
|
|
1,138 |
|
Selling,
General and Administrative |
|
3,825 |
|
|
|
3,911 |
|
Total Operating
Expenses |
|
4,926 |
|
|
|
5,049 |
|
|
|
|
|
Operating
Income |
|
2,356 |
|
|
|
1,841 |
|
|
|
|
|
Other
Expense |
|
(133 |
) |
|
|
(93 |
) |
Income Before
Income Tax Provision |
|
2,223 |
|
|
|
1,748 |
|
|
|
|
|
Income Tax
Provision |
|
(55 |
) |
|
|
(87 |
) |
|
|
|
|
|
|
|
|
Net
Income |
|
2,168 |
|
|
|
1,661 |
|
|
|
|
|
Net Income Attributable
to Non-Controlling Interest |
|
(17 |
) |
|
|
(6 |
) |
|
|
|
|
Net Income
Attributable to Ultralife Corporation |
$ |
2,151 |
|
|
$ |
1,655 |
|
|
|
|
|
Net
Income Per Share Attributable to Ultralife Common
Shareholders – Basic |
|
|
|
|
$ |
0.14 |
|
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
Net
Income Per Share Attributable to Ultralife Common Shareholders –
Diluted |
|
|
|
|
|
|
$ |
0.13 |
|
|
$ |
0.11 |
|
|
|
|
|
|
Weighted
Average Shares Outstanding – Basic |
|
15,704 |
|
|
|
15,412 |
|
Weighted
Average Shares Outstanding – Diluted |
|
16,202 |
|
|
|
15,656 |
|
Company
Contact: |
Investor
Relations Contact: |
Ultralife
Corporation |
LHA |
Philip A.
Fain |
Jody
Burfening |
(315)
210-6110 |
(212)
838-3777 |
pfain@ulbi.com |
jburfening@lhai.com |
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