Ultralife Corporation (NASDAQ: ULBI) reported operating income of
$1.0 million on revenue of $26.0 million for the first quarter
ended March 31, 2021 compared to operating income of $1.5 million
on revenue of $25.8 million for the first quarter of 2020.
“Ultralife increased year-over-year revenue for
the first quarter on the strength of Battery & Energy Products
as medical sales were up 32% and government/defense sales were up
30%. Similar to the trends experienced since the onset of the
pandemic, these gains were for the most part offset by continued
sluggishness in the oil & gas market, as well as lower
Communications Systems sales. Profitability for the quarter
reflected our continuing start-up costs to transition several new
products to high volume manufacturing and investments in
engineering and sales resources for new product development and
market launches to support organic growth initiatives. As we
continue to work on completing new products and identify new
targets in emerging markets, we are steadily expanding our
long-term opportunities to scale the business and realize the
operating leverage inherent in our profitable business model,” said
Michael D. Popielec, President and Chief Executive Officer.
First Quarter 2021 Financial Results
Revenue was $26.0 million, an increase of $0.2
million, or 0.6%, compared to $25.8 million for the first quarter
of 2020, as a 19.4% increase in core battery sales across
diversified end markets was partially offset by lower oil & gas
market and Communications Systems sales. Battery & Energy
Products revenues increased 6.5% to $22.1 million, compared to
$20.8 million last year, as a 32.2% increase in medical device
battery sales and a 30.3% increase in government/defense sales,
were partially offset by a 30.0% decline in oil & gas market
sales. Communications Systems sales decreased 23.6% to $3.9 million
compared to $5.1 million for the same period last year, primarily
reflecting 2020 shipments of vehicle amplifier-adaptor systems to
support the U.S. Army’s Network Modernization initiatives under the
delivery orders announced in October 2018. These orders were
completed in the second quarter of 2020. The net adverse impact of
COVID-19 on revenues for the 2021 first quarter was approximately
$2.0 million as an increase in demand for medical batteries was
more than offset primarily by weakened demand in the oil & gas
and international industrial markets and some delays with
government/defense orders.
Gross profit was $7.0 million, or 26.9% of
revenue, compared to $7.3 million, or 28.4% of revenue, for the
same quarter a year ago. Battery & Energy Products’ gross
margin was 24.6%, compared to 25.6% last year, primarily reflecting
incremental costs in 2021 associated with the transition of a
multitude of new products to higher volume production as well as
higher freight costs on incoming materials. Communications Systems
gross margin was 39.9%, the same as last year.
Operating expenses were $6.0 million compared to
$5.8 million last year, an increase of 3.0%, primarily relating to
our continued investment in engineering and sales resources for new
product development and market launches. Operating expenses were
23.2% of revenue compared to 22.7% of revenue for the year-earlier
period.
Operating income was $1.0 million compared to
$1.5 million last year, and operating margin was 3.7% compared to
5.7% last year. The net adverse impact of COVID-19 on operating
income for the 2021 first quarter was approximately $0.9
million.
Net income was $0.7 million or $0.04 per diluted
share using the U.S. statutory tax rate, compared to net income of
$1.1 million, or $0.07 per diluted share for the first quarter of
2020. Adjusted EPS was $0.05 on a diluted basis for the first
quarter of 2021, compared to $0.08 for the 2020 period. Adjusted
EPS excludes the provision for deferred income taxes of $0.2
million which primarily represents non-cash charges for U.S. taxes
which we expect will be fully offset by net operating loss
carryforwards and other tax credits for the foreseeable future. The
net adverse impact of COVID-19 on Adjusted EPS for the 2021 first
quarter was approximately $0.06.
Adjusted EBITDA, defined as EBITDA including
non-cash, stock-based compensation expense, for the first quarter
of 2021 was $2.0 million or 7.8% of sales, compared to $2.5 million
or 9.8% for the year earlier period. For the trailing twelve-month
period, Adjusted EBITDA was $9.2 million or 8.5% of revenues.
During the first quarter of 2021, our
cash-on-hand increased by 28% to $13.7 million and our debt was
reduced by 27% to $1.1 million (gross of unamortized debt issuance
costs).
See the “Non-GAAP Financial Measures” section of
this release for a reconciliation of Adjusted EPS to EPS and
Adjusted EBITDA to Net Income Attributable to Ultralife
Corporation.
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 8:30 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 the impact
of COVID-19, potential reductions in revenues from key customers,
acceptance of our new products on a global basis and uncertain
global economic conditions. 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 |
|
|
|
|
|
|
|
March 31, 2021 |
|
December 31,2020 |
| Current
Assets: |
|
|
|
|
Cash |
$ |
13,662 |
|
|
$ |
10,653 |
|
|
Trade Accounts Receivable, Net |
|
19,156 |
|
|
|
21,054 |
|
|
Inventories, Net |
|
27,856 |
|
|
|
28,193 |
|
|
Prepaid Expenses and Other Current Assets |
|
2,846 |
|
|
|
4,596 |
|
|
Total Current Assets |
|
63,520 |
|
|
|
64,496 |
|
| |
|
|
|
| Property, Plant
and Equipment, Net |
|
22,946 |
|
|
|
22,850 |
|
| Goodwill |
|
27,061 |
|
|
|
27,018 |
|
| Other Intangible
Assets, Net |
|
9,077 |
|
|
|
9,209 |
|
| Deferred Income
Taxes, Net |
|
11,652 |
|
|
|
11,836 |
|
| Other Non-Current
Assets |
|
2,134 |
|
|
|
2,292 |
|
|
Total Assets |
$ |
136,390 |
|
|
$ |
137,701 |
|
| |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
| Current
Liabilities: |
|
Accounts Payable |
$ |
10,141 |
|
|
$ |
10,839 |
|
|
Current Portion of Long-Term Debt, Net |
|
993 |
|
|
|
1,361 |
|
|
Accrued Compensation and Related Benefits |
|
1,404 |
|
|
|
1,748 |
|
|
Accrued Expenses and Other Current Liabilities |
|
4,097 |
|
|
|
4,758 |
|
|
Total Current Liabilities |
|
16,635 |
|
|
|
18,706 |
|
| Deferred Income
Taxes |
|
504 |
|
|
|
515 |
|
| Other Non-Current
Liabilities |
|
1,390 |
|
|
|
1,557 |
|
|
Total Liabilities |
|
18,529 |
|
|
|
20,778 |
|
| |
|
|
|
| Shareholders'
Equity: |
|
|
|
|
Common Stock |
|
2,042 |
|
|
|
2,037 |
|
|
Capital in Excess of Par Value |
|
185,674 |
|
|
|
185,464 |
|
|
Accumulated Deficit |
|
(46,927 |
) |
|
|
(47,598 |
) |
|
Accumulated Other Comprehensive Loss |
|
(1,679 |
) |
|
|
(1,782 |
) |
|
Treasury Stock |
|
(21,380 |
) |
|
|
(21,321 |
) |
|
Total Ultralife Equity |
|
117,730 |
|
|
|
116,800 |
|
| Non-Controlling
Interest |
|
131 |
|
|
|
123 |
|
|
Total Shareholders’ Equity |
|
117,861 |
|
|
|
116,923 |
|
| |
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ |
136,390 |
|
|
$ |
137,701 |
|
|
ULTRALIFE CORPORATION AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF INCOME (In
Thousands Except Per Share Amounts) |
|
(Unaudited) |
|
|
|
|
|
Three-Month Period Ended |
|
|
March 31, |
|
March 31, |
|
|
|
2021 |
|
|
|
2020 |
|
|
Revenues: |
|
|
|
|
Battery & Energy Products |
$ |
22,111 |
|
|
$ |
20,761 |
|
|
Communications Systems |
|
3,862 |
|
|
|
5,053 |
|
|
Total Revenues |
|
25,973 |
|
|
|
25,814 |
|
| |
|
|
|
| Cost of Products
Sold: |
|
|
|
|
Battery & Energy Products |
|
16,675 |
|
|
|
15,445 |
|
|
Communications Systems |
|
2,320 |
|
|
|
3,035 |
|
| Total Cost of Products
Sold |
|
18,995 |
|
|
|
18,480 |
|
| |
|
|
|
|
Gross Profit |
|
6,978 |
|
|
|
7,334 |
|
| |
|
|
|
| Operating
Expenses: |
|
|
|
|
Research and Development |
|
1,647 |
|
|
|
1,548 |
|
|
Selling, General and Administrative |
|
4,379 |
|
|
|
4,301 |
|
| Total Operating
Expenses |
|
6,026 |
|
|
|
5,849 |
|
| |
|
|
|
| Operating
Income |
|
952 |
|
|
|
1,485 |
|
| |
|
|
|
| Other
Expense |
|
(56 |
) |
|
|
(92 |
) |
| Income Before Income
Tax Provision |
|
896 |
|
|
|
1,393 |
|
| |
|
|
|
| Income Tax Provision |
|
(217 |
) |
|
|
(319 |
) |
| |
|
|
|
| Net
Income |
|
679 |
|
|
|
1,074 |
|
| |
|
|
|
| Net Income Attributable to
Non-Controlling Interest |
|
(8 |
) |
|
|
(15 |
) |
| |
|
|
|
| Net Income
Attributable to Ultralife Corporation |
$ |
671 |
|
|
$ |
1,059 |
|
| |
|
|
|
| Net Income Per Share
Attributable to Ultralife Common Shareholders – Basic |
$ |
0.04 |
|
|
$ |
0.07 |
|
| |
|
|
|
| Net Income Per Share
Attributable to Ultralife Common Shareholders –
Diluted |
$ |
0.04 |
|
|
$ |
0.07 |
|
| |
|
|
|
| Weighted Average Shares
Outstanding – Basic |
|
15,973 |
|
|
|
15,875 |
|
| |
|
|
|
| Weighted Average Shares
Outstanding – Diluted |
|
16,152 |
|
|
|
16,087 |
|
Non-GAAP Financial Measures:
Adjusted Earnings Per Share
In evaluating our business, we consider and use
Adjusted EPS, a non-GAAP financial measure, as a supplemental
measure of our business performance in addition to GAAP financial
measures. We define Adjusted EPS as net income attributable to
Ultralife Corporation excluding the provision for deferred taxes
divided by our weighted average shares outstanding on both a basic
and diluted basis. We believe that this information is useful in
providing period-to-period comparisons of our results by reflecting
the portion of our tax provision that we expect will be offset by
our U.S. net operating loss carryforwards and other tax credits for
the foreseeable future. We reconcile Adjusted EPS to EPS, the most
comparable financial measure under GAAP. Neither current nor
potential investors in our securities should rely on Adjusted EPS
as a substitute for any GAAP measures and we encourage investors to
review the following reconciliation of Adjusted EPS to EPS and net
income attributable to Ultralife Corporation.
|
ULTRALIFE CORPORATION AND SUBSIDIARIES |
|
CALCULATION OF ADJUSTED EPS |
|
(In Thousands Except Per Share Amounts) |
|
(Unaudited) |
| |
|
|
Three-Month Period Ended |
|
|
March 31, 2021 |
|
March 31, 2020 |
|
|
Amount |
|
Per Basic Share |
|
Per Diluted Share |
|
Amount |
|
Per Basic Share |
|
Per Diluted Share |
| Net
Income Attributable to Ultralife Corporation |
$671 |
|
$.04 |
|
$.04 |
|
$1,059 |
|
$0.07 |
|
$0.07 |
| Deferred
Tax Provision |
168 |
|
.01 |
|
.01 |
|
242 |
|
.01 |
|
.01 |
| Adjusted
Net Income |
$839 |
|
$.05 |
|
$.05 |
|
$1,301 |
|
$.08 |
|
$.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average Shares
Outstanding |
|
|
15,973 |
|
16,152 |
|
|
|
15,875 |
|
16,087 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
In evaluating our business, we consider and use
Adjusted EBITDA, a non-GAAP financial measure, as a supplemental
measure of our operating performance in addition to GAAP financial
measures. We define Adjusted EBITDA as net income attributable to
Ultralife Corporation before net interest expense, provision
(benefit) for income taxes, depreciation and amortization, and
stock-based compensation expense, plus/minus expense/income that we
do not consider reflective of our ongoing continuing operations. We
reconcile Adjusted EBITDA to net income attributable to Ultralife
Corporation, the most comparable financial measure under GAAP.
Neither current nor potential investors in our securities should
rely on Adjusted EBITDA as a substitute for any GAAP measures and
we encourage investors to review the following reconciliation of
Adjusted EBITDA to net income attributable to Ultralife
Corporation.
|
ULTRALIFE CORPORATION AND SUBSIDIARIES |
|
CALCULATION OF ADJUSTED EBITDA |
|
(Dollars in Thousands) |
|
(Unaudited) |
|
|
|
|
Three-Month Period Ended |
|
|
March 31, 2021 |
|
March 31, 2020 |
|
|
|
|
|
|
Net Income Attributable to Ultralife Corporation |
$ |
671 |
|
$ |
1,059 |
| Adjustments: |
|
|
|
|
Interest Expense |
|
56 |
|
|
174 |
|
Income Tax Provision |
|
217 |
|
|
319 |
|
Depreciation Expense |
|
730 |
|
|
579 |
|
Amortization of Intangible Assets |
|
154 |
|
|
161 |
|
Stock-Based Compensation Expense |
|
184 |
|
|
230 |
| Adjusted EBITDA |
$ |
2,012 |
|
$ |
2,522 |
|
Company Contact: Ultralife
CorporationPhilip A. Fain(315)
210-6110pfain@ulbi.com |
Investor Relations Contact:LHA Jody
Burfening(212)
838-3777jburfening@lhai.com |
Ultralife (NASDAQ:ULBI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ultralife (NASDAQ:ULBI)
Historical Stock Chart
From Apr 2023 to Apr 2024
