The LGL Group, Inc. Pre-Announces Q4 2021 Revenues, Backlog, Cash and Marketable Securities, Updates its MtronPTI Spin-Off Progress, and Sets the Date for its Q4, 2021 Earnings Release and Conference Call
February 14 2022 - 6:30AM
Business Wire
The LGL Group, Inc. pre-announces Q4 2021 revenues, backlog,
cash and marketable securities and updates its MtronPTI spin-off
progress and sets the date for its Q4 2021 earnings conference
call.
Flash report: The Company’s Q4 2021 revenues, backlog, cash and
marketable securities and other highlights are as follows:
- Revenues for the fourth quarter 2021 are expected to be
approximately $7.2 million vs. $7.4 million for the fourth quarter
of 2020 and vs. $7.5 million in revenue against the third quarter
2021 sequentially.
- Revenue for the full year 2021 is expected to be approximately
$28.1 million vs. 2020 revenues of $31.2 million, and 11.8% lower
than pre-COVID-19 2019 revenue of $31.9 million.
- Backlog at the end of 2021 is expected to be approximately
$29.8 million, up 50 percent over our year-end 2020 backlog level
of $19.8 million.
- Cash and cash equivalents at year-end 2021 is approximately
$29.6 million.
- Consolidated marketable securities at year-end 2021 are
estimated at $16.2 million, inclusive of an estimated GAAP fair
value of IRNT-related securities of approximately $6.4
million.
- The MtronPTI spin-off is progressing with a contemplated timing
for shareholder presentation and approvals expected in the second
quarter 2022 with a tentative date of May 15, 2022.
- Full results for the year 2021 are expected to be released on
or about March 24, 2022. A conference call discussion with
management will also be anticipated to be held on or about this
date.
Michael Ferrantino, President and Chief Executive Officer, said,
“Despite continuing COVID-related headwinds, we are beginning to
benefit from the recovering avionics market and progress in our
defense and space business. The backlog improvement is from the
recovering avionics market and strong defense orders including a
$6.3 million fourth quarter order which relates to a major missile
defense program, most of which is expected to ship subsequent to
2022. I am optimistic about our future as our markets improve and
we execute on our strategies to improve operations securing
delivery of superior technology to our customers.”
James Tivy, LGL’s Chief Financial Officer added, “During the
year 2021 we sold approximately 1.46 million shares of our IRNT
common stock holdings received from LGL‘s SPAC investment. This
SPAC investment has generated over $17 million in gross pre-tax
proceeds for the year. The Company continues to hold 1.34 million
IRNT common shares of which approximately 300,000 shares are hedged
and in the money. ”
As previously announced, LGL Group’s Board of Directors approved
the spin-off of M-Tron Industries, Inc. (“MtronPTI”). The spin-off
is expected to be structured as a tax-free, pro-rata distribution
to all LGL shareholders as of a record date to be determined. If
completed, upon effectiveness of the transaction, LGL shareholders
would own shares of both companies. Completion of any spin-off
would be subject to various conditions, including approval of
shareholders and relevant regulatory bodies. It is also expected
that MtronPTI will be treated as discontinued operations from a
GAAP reporting perspective, effective upon shareholder approval.
There can be no assurance that the potential spin-off transaction
will be completed in the manner described above, or at all. If LGL
proceeds with the spin-off, it does not expect to complete the
transaction earlier than the second quarter of 2022.
LGL believes that, if completed, the potential spin-off of
MtronPTI would enable shareholders to more clearly evaluate the
performance and future potential of each entity on a standalone
basis, while allowing each to pursue its own distinct business
strategy and capital allocation policy. Separating MTronPTI as an
independent, publicly owned company positions the business to
increase value to both MTronPTI and LGL Group. The spin-off permits
each company to tailor its strategic plans and growth
opportunities, more efficiently raise and allocate resources,
including capital raised through debt or equity offerings, flexibly
use its own stock as currency for teammate incentive compensation
and potential acquisitions and provide investors a more targeted
investment opportunity.
The LGL Group continues to strive for profitable growth
internally and by acquisition. The LGL Group, on a pro-forma
standalone basis after the spin-off, will continue to own and
develop its frequency reference and time standard synchronization
solutions business through its Precise Time and Frequency LLC
(“PTF”) subsidiary platform, and is expected to retain
substantially all the company’s cash and marketable securities.
The LGL Group has successfully spun off several businesses over
its history, including Lynch Interactive, The Morgan Group, Tremont
Advisors, and others. MTronPTI itself sought to become an
independently listed company via an IPO, filing a form S-1
registration statement with Needham & Company as the
underwriter in 2000. This IPO was pulled as a result of market
conditions. MTronPTI has an established and formidable presence in
its key markets today and if the spin-off is completed, the
standalone MTronPTI would continue providing market-leading
engineered solutions to its defense and aerospace customers. The
potential spin-off is thus a continuation of the company’s strategy
of developing businesses and positioning them as independent
entities to enhance shareholder value and alignment.
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 and Austin, Texas.
For more information on the Company and its products and
services, contact James Tivy at The LGL Group, Inc., 2525 Shader
Rd., Orlando, Florida 32804, (407) 298-2000, or visit
www.lglgroup.com, www.ptf-llc.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 21E 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.
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James Tivy The LGL Group, Inc. jtivy@lglgroup.com (407)
298-2000
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