American Science and Engineering, Inc. Reports Results for Second Quarter Fiscal Year 2016 and Declares Dividend
November 09 2015 - 4:05PM
American Science and Engineering, Inc. (NASDAQ:ASEI)
(“AS&E”), a leading worldwide supplier of innovative X-ray
detection solutions, today reported its financial results for the
second quarter of fiscal year 2016 ended September 30, 2015. The
Company reported revenues of $25.1 million as compared with
revenues of $23.1 million for the second quarter of fiscal year
2015, net income of $0.5 million, as compared with a net loss of
$3.9 million (inclusive of a $1.4 million charge for a workforce
reduction in the second quarter of fiscal year 2015) and earnings
per share of $0.06 as compared with loss per share of $0.49 for the
second quarter of fiscal year 2015.
For the first six months of fiscal year 2016 ended September 30,
2015, the Company reported revenues of $56.6 million as compared
with revenues of $58.6 million for the same period in the prior
fiscal year, a net loss of $0.1 million (inclusive of the $1.7
million one-time charge related to the corporate realignment in the
first quarter of fiscal year 2016) as compared with a net loss of
$2.5 million for the same period in the prior fiscal year, and a
loss per share of $0.01 as compared with a loss per share of $0.31
for the same period in the prior fiscal year.
The Company reported bookings of $21.7 million for the second
quarter of fiscal year 2016 and $67.6 million for the first six
months of fiscal year 2016. Backlog at September 30, 2015 was
$149.3 million.
The Company is declaring a quarterly cash dividend of $0.50 per
share, payable on December 2, 2015 to the holders of record at the
close of business on November 24, 2015.
“The quarter’s results reflect the benefit of our cost reduction
efforts from Q1 as well as our continued emphasis on working
capital improvements,” said Chuck Dougherty, AS&E’s President
and CEO. “The announcement of the multi-view, multi-technology Z
Portal® next generation vehicle inspection system and the CBP IDIQ
award for a new medium energy mobile scanner are the continuing
results of our aggressive, organic product development program. By
leveraging AS&E’s innovation leadership to support our
portfolio expansion strategy, we continue to differentiate
ourselves from the competition by introducing new, advanced
technologies and products that extend the application reach of our
detection technology for new and existing customers.”
Chuck Dougherty, President and Chief Executive Officer, and Ken
Galaznik, Senior Vice President, Chief Financial Officer and
Treasurer, will host a conference call and simultaneous webcast to
discuss the results and respond to questions. The conference
call and webcast will include a presentation and are scheduled for
Monday, November 9, 2015 at 4:30 pm ET.
To participate in the conference call, please dial (877)
303-9143 at least 10 minutes prior to its starting time. For
international participants, please dial (760) 536-5194. The
conference identification number is 73229964. You will be placed on
hold until the conference call is ready to begin. The live webcast
and presentation can be accessed at
http://edge.media-server.com/m/p/khutjyd4.
An audio replay of the teleconference will be available, in its
entirety, starting Monday, November 9, 2015 at 7:30 pm
ET for a one-week period by dialing (855) 859-2056.
Internationally, please dial (404) 537-3406. The conference
identification number is 73229964. The replay and presentation will
also be available through the Company’s website at
http://ir.as-e.com/events.cfm.
About AS&E
American Science and Engineering, Inc. (AS&E) is the trusted
global provider of threat and contraband detection solutions for
ports, borders, military, critical infrastructure, law enforcement,
and aviation. With over 50 years of experience, AS&E offers
proven, advanced X-ray inspection systems to combat terrorism, drug
smuggling, illegal immigration, and trade fraud. AS&E systems
are designed in a variety of configurations for cargo and vehicle
inspection, parcel inspection, and personnel screening. Using a
combination of technologies, these systems provide superior
detection capabilities, with high-energy, dual-energy, and Z
Backscatter® X-rays. Learn more about AS&E products and
technologies at www.as-e.com and follow us on Twitter
@ase_detects.
Safe Harbor Statement: The foregoing press
release contains statements concerning AS&E’s financial
performance, markets and business operations that may be considered
“forward-looking” under applicable securities laws. AS&E
wishes to caution readers of this press release that actual results
might differ materially from those projected in any forward-looking
statements. Factors which might cause actual results to differ
materially from those projected in the forward-looking statements
contained herein include the following: significant reductions,
delays or cancellations (in full or in part) in procurements of the
Company’s systems by the United States and other governments;
disruption in the supply of any source component incorporated into
AS&E's products; litigation seeking to restrict the use of
intellectual property used by the Company; limitations under
certain laws on the Company’s ability to protect its own
intellectual property; potential product liability claims against
the Company; global political trends and events which affect public
perception of the threat presented by drugs, explosives and other
contraband; global economic developments and the ability of
governments and private organizations to fund purchases of the
Company’s products to address such threats; the potential
insufficiency of Company resources, including human resources,
capital, plant and equipment and management systems, to accommodate
any future growth; technical problems and other delays that could
impact new product development and the Company’s ability to adapt
to changes in technology and customer requirements; competitive
pressures; lengthy sales cycles both in United States government
procurement and procurement abroad; future delays in federal
funding, the market price of the company's stock prevailing from
time to time, the nature of other investment opportunities
presented to the company from time to time, the company's
cash flows from operations and market and general economic
conditions. These and certain other factors which might cause
actual results to differ materially from those projected are
detailed from time to time in AS&E’s periodic reports and
registration statements filed with the Securities and Exchange
Commission, which important factors are incorporated herein by
reference. AS&E undertakes no obligation to update forward
looking statements to reflect changed assumptions, the occurrence
of unanticipated events, or changes in future operating results,
financial condition or business over time. Readers are further
advised to review the “Risk Factors” set forth in the Company’s
most recent Form 10-Q and Form 10-K, which further detail and
supplement the factors described in this Safe Harbor
Statement. Among other disclosures, the Risk Factors disclose
risks pertaining to that portion of the Company’s business that is
dependent on United States government contracting as well as
international customers.
|
AMERICAN SCIENCE AND ENGINEERING,
INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(in thousands, except per share amounts) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
|
September
30, |
|
September
30, |
|
September
30, |
|
September
30, |
|
|
2015 |
|
2014 |
|
2015 |
|
2014 |
Total net sales
and contract revenues |
$ |
|
25,137 |
|
$ |
|
23,066 |
|
$ |
|
56,581 |
|
$ |
|
58,603 |
|
Total cost of
sales and contracts |
|
|
12,783 |
|
|
|
13,383 |
|
|
|
29,801 |
|
|
|
32,451 |
|
Gross
profit |
|
|
12,354 |
|
|
|
9,683 |
|
|
|
26,780 |
|
|
|
26,152 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
6,772 |
|
|
|
9,118 |
|
|
|
15,042 |
|
|
|
17,309 |
|
Research and
development costs |
|
|
4,751 |
|
|
|
6,418 |
|
|
|
11,640 |
|
|
|
12,424 |
|
Total operating
expenses |
|
|
11,523 |
|
|
|
15,536 |
|
|
|
26,682 |
|
|
|
29,733 |
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
831 |
|
|
|
(5,853 |
) |
|
|
98 |
|
|
|
(3,581 |
) |
Interest and other,
net |
|
|
(117 |
) |
|
|
(21 |
) |
|
|
(176 |
) |
|
|
(106 |
) |
Income (loss)
before provision (benefit from) income taxes |
|
|
714 |
|
|
|
(5,874 |
) |
|
|
(78 |
) |
|
|
(3,687 |
) |
Provision for
(benefit from) income taxes |
|
|
250 |
|
|
|
(1,968 |
) |
|
|
(27 |
) |
|
|
(1,235 |
) |
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
|
464 |
|
$ |
|
(3,906 |
) |
$ |
|
(51 |
) |
$ |
|
(2,452 |
) |
|
|
|
|
|
|
|
|
|
Income (loss)
per share - Basic |
$ |
|
0.06 |
|
$ |
|
(0.49 |
) |
$ |
|
(0.01 |
) |
$ |
|
(0.31 |
) |
Income (loss)
per share - Diluted |
$ |
|
0.06 |
|
$ |
|
(0.49 |
) |
$ |
|
(0.01 |
) |
$ |
|
(0.31 |
) |
|
|
|
|
|
|
|
|
|
Weighted
average shares - Basic |
|
|
7,151 |
|
|
|
7,917 |
|
|
|
7,156 |
|
|
|
7,904 |
|
Weighted
average shares - Diluted |
|
|
7,156 |
|
|
|
7,917 |
|
|
|
7,156 |
|
|
|
7,904 |
|
|
|
|
|
|
|
|
|
|
The results of operations reported herein may not be
indicative of future financial conditions or results of future
operations. |
|
|
|
|
|
|
|
|
|
|
AMERICAN SCIENCE AND ENGINEERING,
INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in thousands) |
(unaudited) |
|
|
|
|
|
|
|
September 30, 2015 |
|
March 31, 2015 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
$ |
79,293 |
$ |
68,835 |
Restricted
cash |
|
5,596 |
|
6,193 |
Short-term investments,
at fair value |
|
7,694 |
|
24,533 |
Accounts receivable,
net |
|
20,873 |
|
22,124 |
Unbilled costs and
fees |
|
3,478 |
|
1,848 |
Inventories, net |
|
38,329 |
|
40,983 |
Other current
assets |
|
11,309 |
|
13,187 |
Total current
assets |
|
166,572 |
|
177,703 |
|
|
|
|
|
Non-current
assets: |
|
|
|
|
Equipment and leasehold
improvements, net |
|
7,117 |
|
8,711 |
Restricted cash |
|
231 |
|
208 |
Other assets |
|
6,253 |
|
6,486 |
Total
assets |
$ |
180,173 |
$ |
193,108 |
Liabilities
& Stockholders' Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
4,747 |
$ |
7,200 |
Customer deposits |
|
11,557 |
|
13,956 |
Deferred revenue |
|
8,653 |
|
7,355 |
Other current
liabilities |
|
9,328 |
|
12,664 |
Total current
liabilities |
|
34,285 |
|
41,175 |
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
Other non-current
liabilities |
|
3,966 |
|
1,526 |
Total
liabilities |
|
38,251 |
|
42,701 |
|
|
|
|
|
Stockholders'
equity |
|
141,922 |
|
150,407 |
Total
liabilities and stockholders' equity |
$ |
180,173 |
$ |
193,108 |
|
|
|
|
|
|
|
AMERICAN SCIENCE AND ENGINEERING, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
September 30, 2015 |
|
September 30, 2014 |
|
Cash flows from
operating activities: |
|
|
|
|
Net loss |
$ |
(51 |
) |
|
$ |
(2,452 |
) |
|
Adjustments to
reconcile net loss to net cash provided by (used for) operating
activities: |
|
|
|
|
Depreciation and
amortization |
|
1,965 |
|
|
|
2,605 |
|
|
Provisions for
contracts, inventory and accounts receivable reserves |
|
(80 |
) |
|
|
(270 |
) |
|
Amortization of
bond premium |
|
63 |
|
|
|
540 |
|
|
Stock
compensation expense |
|
1,044 |
|
|
|
1,770 |
|
|
Other |
|
202 |
|
|
|
- |
|
|
|
|
|
|
|
Changes in assets and
liabilities: |
|
|
|
|
Accounts
receivable |
|
1,326 |
|
|
|
4,878 |
|
|
Unbilled costs
and fees |
|
(1,630 |
) |
|
|
(3,272 |
) |
|
Inventories |
|
2,659 |
|
|
|
(11,534 |
) |
|
Prepaid expenses
and other assets |
|
2,111 |
|
|
|
(5,436 |
) |
|
Accounts
payable |
|
(2,453 |
) |
|
|
(6,762 |
) |
|
Accrued income
taxes |
|
- |
|
|
|
(2,338 |
) |
|
Customer
deposits |
|
(2,399 |
) |
|
|
5,433 |
|
|
Deferred
revenue |
|
3,623 |
|
|
|
(1,847 |
) |
|
Accrued expenses
and other liabilities |
|
(3,221 |
) |
|
|
(7,274 |
) |
|
Net cash provided by
(used for) operating activities |
|
3,159 |
|
|
|
(25,959 |
) |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Purchases of
short-term investments |
|
- |
|
|
|
(29,212 |
) |
|
Proceeds from
sales and maturities of short-term investments |
|
16,780 |
|
|
|
40,933 |
|
|
Purchases of
property and equipment, net |
|
(573 |
) |
|
|
(943 |
) |
|
Net cash provided by
investing activities |
|
16,207 |
|
|
|
10,778 |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Decrease in
restricted cash and investments |
|
574 |
|
|
|
726 |
|
|
Proceeds from
exercise of stock options |
|
- |
|
|
|
888 |
|
|
Repurchase of
shares of common stock |
|
(2,263 |
) |
|
|
- |
|
|
Repayment of
leasehold financing liability |
|
- |
|
|
|
(754 |
) |
|
Payment of
common stock dividend |
|
(7,219 |
) |
|
|
(7,993 |
) |
|
Net cash used for
financing activities |
|
(8,908 |
) |
|
|
(7,133 |
) |
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
10,458 |
|
|
|
(22,314 |
) |
|
Cash and cash
equivalents at beginning of period |
|
68,835 |
|
|
|
62,143 |
|
|
Cash and cash
equivalents at end of period |
$ |
79,293 |
|
|
$ |
39,829 |
|
|
|
|
|
|
|
Public Relations Contact:
Dana Harris
Red Javelin Communications, Inc.
978-440-8392
dana@redjavelin.com
Laura Berman
American Science and Engineering, Inc.
978-262-8700
lberman@as-e.com
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