News Column

Ultralife Corporation Reports Fourth Quarter Results

February 13, 2014

NEWARK, N.Y., Feb. 13, 2014 (GLOBE NEWSWIRE) -- Ultralife Corporation (Nasdaq:ULBI) reported operating income from continuing operations of $0.2 million on revenue of $20.2 million for the quarter ended December 31, 2013. For the fourth quarter of 2012, the company reported operating income from continuing operations of $2.4 million on revenue of $29.3 million.

"The fourth quarter closed a year during which the slowdown in global defense-related spending and decision-making dominated our top line comparables. During 2013, we right-sized the business model and stabilized quarterly revenues for our Battery & Energy Products business which compensated for weak Communication Systems' sales such that we delivered a modest operating loss for the year, in line with our guidance," said Michael D. Popielec.

"As we enter 2014, we are starting to realize initial returns on the investments we made in new product development over the past two years, particularly in the areas of portable power, medical carts and integrated communications systems. With the maturation of our new products, we expect to gain further customer acceptance during the year and generate top-line growth. This growth, along with deeply-rooted productivity gains and improved liquidity, will enable us to fully leverage our highly-efficient business model," concluded Popielec.

Fourth Quarter 2013 Financial Results

Revenue was $20.2 million, compared to $29.3 million for the fourth quarter of 2012, a 31% decline. Battery & Energy Products sales were $15.9 million, compared to $18.8 million last year, a 16% decline, reflecting last year's fulfillment of a large order to an allied country's department of defense and the slowdown in the government and defense order rate for rechargeable and non-rechargeable batteries. Communications Systems sales were $4.3 million, compared to $10.4 million for the same period last year, a decrease of $6.1 million. Prior year Communications Systems' sales benefited from the fulfillment of several large orders for amplifiers from international defense customers.

Gross profit was $5.6 million, or 27.7% of revenue, compared to $9.5 million, or 32.3% of revenue, for the same quarter a year ago, a decrease of 460 basis points, primarily attributable to a lower mix of Communication Systems sales. Battery & Energy Products' gross margin was 26.1%, compared to 27.0% last year, a 90 basis point decrease reflecting lower sales volume and a less favorable product mix. Communications Systems' gross margin was 33.5%, compared to 41.9% last year, a decrease of 840 basis points also reflecting the impact of lower sales volume on production and the product mix.

Operating expenses declined $1.7 million, or 24%, to $5.4 million, compared to $7.1 million a year ago, primarily due to reductions in general and administrative expense and continued focus on controlling discretionary spending. As a percent of revenue, operating expenses were 26.6%, compared to 24.3% a year ago.

Operating profit was $0.2 million, compared to $2.4 million for the same period in 2012, reflecting lower gross profit offset by operating expense reductions. Operating margin was 1.1%, compared to 8.0% for the year-earlier period.

Net income from continuing operations was $0.1 million, or $0.01 per share, compared to net income of $2.1 million, or $0.12 per share, for the fourth quarter of 2012.

Outlook

For 2014, management expects mid-single digit organic revenue growth, despite continued constraints on global government spending. Based on this outlook for revenue growth and the improvements made to the business model in 2013, management expects to increase operating profit for the year and generate a mid-single digit operating margin.

Management cautions that the timing of orders and shipments may cause variability in quarterly results.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from portable 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.ultralifecorp.com.

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: uncertain global economic conditions, increased competitive environment and pricing pressures, disruptions related to restructuring actions and delays. 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'sSecurities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K.

Conference Call Information

Ultralife will hold its fourth quarter earnings conference call today at 10:00 AM ET. To participate, please call (800) 915-4836, identify yourself and ask for the Ultralife call. The conference call will also be broadcast live over the Internet at http://www.ultralifecorporation.com. To listen to the call, please go to the web site at least fifteen minutes early to download and install any necessary audio software. For those who cannot listen to the live webcast, a replay of the webcast will be available shortly after the call at the same location.

ULTRALIFE CORPORATION
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
(unaudited)
    
     
 December 31,December 31,
ASSETS 2013 2012
     
Current assets:    
Cash and cash equivalents  $ 16,489  $ 10,078
Trade accounts receivable, net  14,238  20,913
Inventories  26,053  30,370
Prepaid expenses and other current assets  2,031  2,461
Total current assets 58,811 63,822
     
Property and equipment  10,202  12,415
     
Other assets:    
Goodwill, intangible and other assets 21,203 21,481
     
Total Assets  $ 90,216  $ 97,718
     
LIABILITIES AND SHAREHOLDERS' EQUITY    
     
Current liabilities:    
Short-term debt and current portion of long-term debt  $ --  $ --
Accounts payable  7,053  11,357
Other current liabilities  4,971  8,535
Total current liabilities 12,024 19,892
     
Long-term liabilities:    
Other long-term liabilities  4,547  4,370
     
Shareholders' equity:    
Ultralife equity:    
Common stock, par value $0.10 per share 1,888 1,886
Capital in excess of par value 174,932 173,791
Accumulated other comprehensive loss (614) (620)
Accumulated deficit (94,804) (93,878)
  81,402 81,179
Less -- Treasury stock, at cost 7,658 7,658
Total Ultralife equity 73,744 73,521
Noncontrolling interest  (99)  (65)
Total shareholders' equity 73,645 73,456
     
Total Liabilities and Shareholders' Equity  $ 90,216  $ 97,718
         
ULTRALIFE CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands, Except Per Share Amounts)
(Unaudited)
 
         
  Three Month Periods Ended  Twelve Month Periods Ended
         
 December 31,December 31,December 31,December 31,
  2013 2012 2013 2012
         
Revenues:        
Battery & energy products  $ 15,861  $ 18,846  $ 57,077  $ 71,084
Communications systems  4,315  10,423  21,758  30,573
Total revenues 20,176 29,269 78,835 101,657
         
Cost of products sold:        
Battery & energy products  11,714  13,760  42,739  53,522
Communications systems  2,869  6,058  13,475  19,405
Total cost of products sold  14,583  19,818  56,214  72,927
         
Gross profit  5,593  9,451  22,621  28,730
         
Operating expenses:        
Research and development  1,403  1,511  5,859  7,216
Selling, general, and administrative  3,967  5,587  17,386  21,628
Total operating expenses  5,370  7,098  23,245  28,844
         
Operating income (loss)  223  2,353  (624)  (114)
         
Other income (expense):        
Interest income  12  --  39  4
Interest expense  (39)  (124)  (238)  (440)
Miscellaneous  5  (41)  (26)  (24)
Income (loss) from continuing operations before income taxes 201 2,188 (849) (574)
         
Income tax provision - current  52  152  94  539
Income tax provision (benefit) -deferred  52  (35)  145  15
Total income taxes  104  117  239  554
         
Net income (loss) from continuing operations  97  2,071  (1,088)  (1,128)
         
Discontinued operations:        
 Income (loss) from discontinued operations, net of tax  (31)  (680)  128  (501)
         
Net income (loss)  66  1,391  (960)  (1,629)
         
Net loss attributable to noncontrolling interest  3  --   34  31
         
Net income (loss) attributable to Ultralife  $ 69  $ 1,391  $ (926)  $ (1,598)
         
Other comprehensive income (loss):        
 Foreign currency translation adjustments  (47)  446  6  365
         
Comprehensive income (loss) loss attributable to Ultralife  $ 22  $ 1,837  $ (920)  $ (1,233)
         
         
Net income (loss) attributable to Ultralife common shareholders - basic        
 Continuing operations  $ 0.01  $ 0.12  $ (0.06)  $ (0.06)
 Discontinued operations  $ 0.00  $ (0.04)  $ 0.01  $ (0.03)
 Total  $ 0.00  $ 0.08  $ (0.05)  $ (0.09)
Net income (loss) attributable to Ultralife common shareholders - diluted        
 Continuing operations  $ 0.01  $ 0.12  $ (0.06)  $ (0.06)
 Discontinued operations  $ 0.00  $ (0.04)  $ 0.01  $ (0.03)
 Total  $ 0.00  $ 0.08  $ (0.05)  $ (0.09)
         
         
Weighted average shares outstanding - basic  17,477  17,443  17,465  17,403
Weighted average shares outstanding - diluted  17,572  17,443  17,465  17,403

CONTACT: Company Contact: Ultralife CorporationPhilip A. Fain (315) 332-7100 pfain@ulbi.com Investor Relations Contact: LHA Jody Burfening (212) 838-3777 jburfening@lhai.com



Ultralife Corporation logo

Source: Ultralife Corporation


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: GlobeNewswire


Story Tools