FAIR LAWN, N.J., Aug. 13 /PRNewswire-FirstCall/ -- Henry Bros.
Electronics, Inc. (NASDAQ:HBE), a turnkey provider of
technology-based integrated electronic security solutions, today
announced results for the second quarter ended June 30, 2009. The
Company reported revenue of $14.0 million for the three months
ended June 30, 2009, representing a 7.6% decrease over revenue of
$15.1 million for the same period a year ago. Revenue was down in
all of the Company's integration regions in the second quarter of
2009 versus the same quarter in the prior year, with the exception
of Colorado, which was up 57.7%. The New Jersey region had the
greatest decrease, as a result of the winding down of large
projects that were not replaced by similar projects due to
competitive margin pressure. The protracted credit freeze and
economic downturn which is having a significant negative impact on
construction markets and capital spending patterns of commercial
businesses are also contributing to this decline in revenue.
Partially offsetting these declines was an increase in revenue from
the Company's TVCS contract with L-3 Communications. The Company
reported net income of $55,253 or $0.01 per diluted share, for the
second quarter ended June 30, 2009, compared to net income of
$337,261, or $0.06 per diluted share, in the comparable period of
2008. The Company's decrease in net income is principally the
result of the reduction in revenue in the aforementioned regions
and the costs associated with the investment in a larger sales
staff. Revenue for the six-month period ended June 30, 2009 was
$29.3 million, representing a decrease of 5.6% over revenue of
$31.0 million for the six months ended June 30, 2008. Net income
for the 2009 six-month period was $221,375, or $0.04 per diluted
share, compared to net income of $621,218, or $0.10 per diluted
share, for the 2008 six-month period. The Company's backlog as of
June 30, 2009 was $22.7 million, compared to $23.7 million at
December 31, 2008. The decline in backlog is a primary result of
work completed on several large public agency jobs in New Jersey /
New York, partially offset by the recent amendment of an existing
contract with the New York City Housing Authority. As a result of
the lingering economic softness and delays related to the Company's
TVCS project, the Company is lowering its guidance from an
operating profit of 6% on revenue of $80 million for fiscal 2009 to
an operating profit of 3% to 5% on revenue of between $65 million
and $70 million for fiscal 2009. Jim Henry, CEO of Henry Bros.
Electronics, commented, "Although the second quarter proved to be a
challenging one for our company, primarily due to the lingering
effect of the macroeconomic slowdown, we remain optimistic about
the positioning of our business. This confidence comes from the
fact that much of our shortfall is a result of larger projects
having longer sales cycles due to the economic downturn. The
fundamentals of our business remain intact, and our brand is
stronger than ever before. We plan to continue to add additional
collateral material, quality staff, and support systems for this
staff in order to position them for taking advantage of the best
prospecting opportunities. We believe that this is the best long
term strategy for our company." Henry concluded, "Looking forward,
I am happy to announce that the New York City Housing Authority
recently amended an existing $5 million contract with our company
to $10 million. The contract is for the installation and
maintenance of multiple CCTV systems. We are also positioning
ourselves to benefit from activity coming from the new Chemical
Facility Anti-Terrorism Standards (or CFATS) legislation. Before a
company in our industry can even speak with a prospective CFATS
client, you are required to have a CVI number, which encompasses
the passing of a qualifying test to be registered. To date, 19 of
our sales people have qualified for their CVI number, and we expect
to focus intently on this potentially lucrative market over the
next six to eight quarters. We also now expect to complete $10
million of TVCS project related to work in the second half of this
year, mostly in the fourth quarter." Conference Call Information:
Henry Bros. Electronics will be hosting a conference call on August
13, 2009, at 11 a.m. ET. To participate on the call, please use the
following number and conference code: (888) 562-3356 (Domestic)
(973) 582-2700 (International) Conference code: 22808579 A replay
of the call will be available from 08/13/2009 at 12 p.m., ET,
through 09/13/2009 at 11:59 p.m., ET. To access the replay, please
call (800) 642-1687 in the United States or (706) 645-9291 outside
the United States. To access the replay, users will need to enter
the following code: 22808579. About Henry Bros. Electronics, Inc.
Henry Bros. Electronics (NASDAQ:HBE) provides technology-based
integrated electronic security systems, services and emergency
preparedness consultation to commercial enterprises and government
agencies. The Company has offices in Arizona, California, Colorado,
Maryland, New Jersey, New York, Texas and Virginia. For more
information, visit http://www.hbe-inc.com/. Safe Harbor Statement:
Certain statements in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. Forward-looking statements
inherently involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements.
In particular, there can be no assurance that the Company will
achieve revenues of $65 to $70 million or a 3% to 5% operating
profit in 2009. Additional information concerning factors that
could cause actual results to differ materially from those in the
forward looking statements is contained under the heading of risk
factors listed in the Company's filings with the U.S. Securities
and Exchange Commission. Henry Bros. Electronics Inc. does not
assume any obligation to update the forward-looking information.
Investor Contacts: Todd Fromer KCSA Strategic Communications
212-896-1215 Jim Henry, Chairman & Chief Executive Officer
Henry Bros. Electronics, Inc. 201-794-6500 Tables follow HENRY
BROS. ELECTRONICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (Unaudited) Six months ended
June 30, Three months ended June 30, -------------------------
-------------------------- 2009 2008 2009 2008 ---- ---- ---- ----
Revenue $29,280,192 $31,029,997 $13,971,980 $15,123,951 Cost of
revenue 21,168,069 23,498,938 10,081,871 11,282,000 ----------
---------- ---------- ---------- Gross profit 8,112,123 7,531,059
3,890,109 3,841,951 Operating expenses: Selling, general &
administrative expenses 7,562,645 6,256,168 3,691,785 3,126,987
--------- --------- --------- --------- Operating profit 549,478
1,274,891 198,324 714,964 Interest income 9,037 52,981 2,067 22,937
Other income 15,794 8,248 2,608 4,034 Interest expense (165,407)
(142,728) (99,706) (65,995) -------- -------- ------- -------
Income before tax expense 408,902 1,193,392 103,293 675,940 Tax
expense 187,527 572,174 48,040 338,679 ------- ------- ------
------- Net income $221,375 $621,218 $55,253 $337,261 ========
======== ======= ======== BASIC EARNINGS PER COMMON SHARE:
-------------- Basic earnings per common share $0.04 $0.11 $0.01
$0.06 ===== ===== ===== ===== Weighted average common shares
5,850,048 5,772,864 5,870,291 5,772,864 ========= =========
========= ========= DILUTED EARNINGS PER COMMON SHARE:
-------------- Diluted earnings per common share: $0.04 $0.10 $0.01
$0.06 ===== ===== ===== ===== Weighted average diluted common
shares 6,044,499 5,976,008 6,064,742 5,976,008 ========= =========
========= ========= DATASOURCE: Henry Bros. Electronics Inc.
CONTACT: Todd Fromer, KCSA Strategic Communications,
+1-212-896-1215, ; or Jim Henry, Chairman & Chief Executive
Officer, Henry Bros. Electronics, Inc., +1-201-794-6500, Web Site:
http://www.hbe-inc.com/
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