Archive for February, 2011
ROCK HILL, S.C., Feb. 17, 2011 (GLOBE NEWSWIRE) — 3D Systems Corporation (Nasdaq:TDSC) announced today that it earned 40 cents per share, fully diluted, for the fourth quarter of 2010 on a 42% revenue increase and a 400 basis point gross profit margin expansion compared to the fourth quarter of 2009. The company’s quarterly and annual earnings per share benefitted by 5 cents per share from releasing a portion of its valuation allowance on deferred tax assets.
The company earned 83 cents per share, fully diluted, for the full year 2010 and generated $31.8 million of cash from operations. After using $20.8 million to fund strategic investing activities, the company ended 2010 with $37.3 million of available cash compared to $24.9 million at December 31, 2009.
“Our record fourth quarter and full year results validate our long term operating model,” said Abe Reichental, 3D Systems’ President and Chief Executive Officer.
Pluristem, a leading developer of placenta-based cell therapies for treating local and systemic inflammatory diseases, feels that positive feedback received from both the FDA (Food and Drug Administration) and the EMA (European Medical Agencies) regarding its PLX-PAD product for treating PAD (Peripheral Artery Disease), a chronic disease that progressively restricts blood flow in the limbs, clears the way for further clinical studies with its PLX-PAD cells. The company is now on track to proceed to a Phase II/III trial for CLI (Critical Limb Ischemia) and a Phase II trial for IC (Intermittent Claudication).
The company recently announced the successful completion of a parallel scientific advisory process involving both the U.S. Food and Drug Administration and the European Medical Agencies, in which the FDA and EMA both acknowledged Pluristem’s proposed clinical development plan for PLX-PAD. The goal is to develop an advanced cell therapy product that could help millions of PAD patients.
Pluristem Chairman and CEO, Zami Aberman, commented on the success. “The completion of two Phase-I CLI clinical studies, performed in parallel in Germany and the U.S., placed Pluristem in a unique position to discuss with the regulatory agencies an approach that should allow a single clinical study protocol to be accepted by both agencies. What is particularly exciting about this development is that it places us – for the first time – on-track for a potentially preventative treatment for PAD in addition to treating amputation-destined cases.”
Edwin Horwitz, MD, PhD, President of the International Society for Cell Therapy, and head of Pluristem’s scientific advisory board, added: “PLX-PAD has shown an early read-out of efficacy throughout its clinical development and I am pleased that PLX-PAD has made the necessary progress from a regulatory perspective, to move forward with advanced trials. I am excited that the PLX-PAD clinical trials will be conducted in the EU and the U.S. under the same clinical protocol, bringing the therapy closer to market and to those CLI patients in need of improved therapies.”
Pluristem’s patented PLX (PLacental eXpanded) cells drug delivery platform releases a cocktail of therapeutic proteins in response to a variety of local and systemic inflammatory diseases. The cells are grown using the company’s proprietary 3D micro-environmental technology, and offer an off-the-shelf solution that requires no tissue matching or immune-suppression treatment prior to administration. PLX-PAD is set to target a sub-population of 20 million patients suffering from Peripheral Artery Disease.
For more information visit www.Pluristem.com
GONGYI, China, Feb. 16, 2011 /PRNewswire-Asia-FirstCall/ — China GengSheng Minerals, Inc. (“GengSheng“) (AMEX:CHGS), a leading China-based high-tech industrial materials manufacturer producing heat resistant, energy efficient materials for a variety of industrial applications, today announced that it has been awarded $10.5 million a follow-on contract for its fracture proppants from a China-based distributor specializing in sales to overseas oil and gas companies. GengSheng will begin shipments to this customer in February 2011 and expects to supply approximately 27,000 tons of proppant products over a six-month period.
“During 2010, we achieved tremendous growth in our fracture proppant business, driven by robust demand from both domestic and international customers. Throughout the year, we worked to develop strong relationships with our customers and key distributors, and it is clear that these efforts are bearing fruit. We are pleased that this distributor has recognized the quality of our products and high level of customer service we provide by awarding us this significant follow-on order,” said Mr. Shunqing Zhang, China GengSheng’s Chairman and Chief Executive Officer. “We entered 2011 with our proppant manufacturing operations near full capacity. We expect drilling activity to remain high throughout the year, driving continued strong demand for proppant materials. In an effort to capture this anticipated demand, we are currently exploring opportunities to expand our fracture proppant manufacturing capacity later in the year.”
GengSheng commercially launched its fracture proppant products in the second quarter of 2007, and reported full-year 2009 revenue from this product segment of $8 million, representing a 3-year CAGR of 323%. Fracture proppant sales in the third quarter of 2010 were a record $5 million. In order to meet the growing demand for its fracture proppant products, GengSheng signed a 3-year operating facility lease in the fourth quarter of 2010. This facility increased the Company’s fracture proppant manufacturing capacity to 75,000 metric tons per year.
About China GengSheng Minerals, Inc.
China GengSheng Minerals, Inc. (“GengSheng”) develops, manufactures and markets a broad range of high-tech industrial material products, including monolithic refractories, industrial ceramics and fracture proppants. A market leader offering customized solutions, GengSheng sells its products primarily to the iron-and-steel industry as heat-resistant components for steel-making furnaces, industrial kilns and other high-temperature vessels to guarantee and improve the productivity of those expensive pieces of equipment while reducing their consumption of energy. Founded in 1986 and based in China’s Henan province, GengSheng currently has over 200 customers in the iron, steel, oil, glass, cement, aluminum and chemical businesses located in China and other countries. GengSheng conducts business through GengSheng International Corporation, a British Virgin Islands company, and its Chinese subsidiaries, which are Henan GengSheng Refractories Co., Ltd., Zhengzhou Duesail Fracture Proppant Co., Ltd., Henan GengSheng Micronized Powder Materials Co., Ltd, Guizhou SouthEast Prefecture Co., Ltd., GengSheng New Materials Co., Ltd, and Henan GengSheng High Temperature Materials Co., Ltd.
For more information about GengSheng, please visit http://www.gengsheng.com.
To be added to GengSheng’s email distribution for future press releases, please send your request to gengsheng@tpg-ir.com.
Note Regarding Forward-Looking Statements
This press release contains statements that are forward-looking within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate,” “project,” “intend,” “forecast,” “anticipate,” “plan,” “planning,” “expect,” “believe,” “will,” “will likely, ” “should,” “could,” “would,” “may” or words or expressions of similar meaning. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties, certain assumptions and factors relating to the operations and business environments of China GengSheng Minerals, Inc. and its subsidiaries that my cause the actual results of the companies to be materially different from any future results expressed or implied in such forward-looking statements. Although China GengSheng Minerals, Inc. believes that the expectations and assumptions reflected in the forward-looking statements are reasonable based on information currently available to its management, China GengSheng Minerals, Inc. cannot guarantee future results or events. China GengSheng Minerals, Inc. expressly disclaims a duty to update any of the forward-looking statement.
|
Contacts:
|
|
|
|
|
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
1+212-481-2050
gengsheng@tpg-ir.com
|
|
|
|
|
China GengSheng Minerals, Inc.
Investor Relations
Mr. Shuai Zhang
gszs@gengsheng.com
+86-135-2551-0415
|
HOUSTON, Feb. 16, 2011 /PRNewswire/ — Hyperdynamics Corporation (NYSE Amex: HDY) announced today that Andrei Orlov has joined the company as Vice President for Business Development based in London, England.
Orlov most recently was a Regional Director of Foster Wheeler, a global engineering and construction firm, and prior to that, Vice President for Business Development in the former Soviet Union with SNC Lavalin, Canada’s largest engineering firm. He has more than 15 years of international project and business development experience for the oil and gas industry in Europe and the former Soviet Union.
“With the addition of Andrei Orlov to our team, we are continuing to build the solid management and operational capabilities to enable Hyperdynamics to grow in the future,” said Ray Leonard, President and Chief Executive Officer. “Andrei’s years of experience in the field of international mergers and acquisitions will be an invaluable addition to the management team of Hyperdynamics. He will be responsible for the business development function of the company and will work closely with the Houston and Guinea offices in our farm-out and expansion efforts.”
About Hyperdynamics
Hyperdynamics is an emerging independent oil and gas exploration and production company that is exploring for oil and gas offshore the Republic of Guinea in West Africa. To find out more, visit our website at www.hyperdynamics.com.
Forward Looking Statements
This news release and the Company’s website referenced in this news release contain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding Hyperdynamics Corporation’s future plans and expected performance that are based on assumptions the Company believes to be reasonable. Statements preceded by, followed by or that otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”, “estimates”, “plans”, “may increase”, “may result”, “will result”, “may fluctuate” and similar expressions or future or conditional verbs such as “will”, “should”, “would”, “may” and “could” are generally forward-looking in nature and not historical facts. A number of risks and uncertainties could cause actual results to differ materially from these statements, including without limitation, funding and exploration efforts, fluctuations in oil and gas prices and other risk factors described from time to time in the Company’s reports filed with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2010. The Company undertakes no obligation to publicly update these forward looking statements to reflect events or circumstances that occur after the issuance of this news release or to reflect any change in the Company’s expectations with respect to these forward looking statements.
HDY-IR
|
Contacts:
|
Dennard Rupp Gray & Lascar, LLC
|
|
|
Ken Dennard, Managing Partner
|
|
|
Jack Lascar, Partner
|
|
|
(713) 529-6600
|
|
|
Anne Pearson, Sr. Vice President
|
|
|
(210) 408-6321
|
|
|
|
YOKNEAM, ISRAEL — (Marketwire) — 02/16/11 — Syneron Medical Ltd. (NASDAQ: ELOS), the leading global aesthetic device company, today announced fourth quarter 2010 financial results for the three month period ended December 31, 2010. Fourth quarter 2010 financial results are for Syneron and Candela as a combined company. The fourth quarter 2009 year-over-year comparative financial results referred to below are pro-forma financial results assuming the merger with Candela Corporation had occurred on January 1, 2009.
Fourth Quarter 2010 Highlights Include:
-- Revenue of $53.5 million, up 14.7% year-over-year
-- International revenue of $35.3 million, up 20% year-over-year
-- North America revenue of $18.2 million, up 5.7% year-over-year
-- Non-GAAP gross margin of 54.4%, up from 50.0% in the prior year and
52.3% in Q3 2010
-- Non-GAAP net income from continuing operations before non-controlling
interest of $3.4 million, or 6.3% of revenue compared to a net loss of
$4.1 million in the prior year and $1.5 million in Q3 2010
-- Non-GAAP earnings per share (basic and diluted) of $0.10, compared to a
loss per share of $0.12 in the prior year and $0.04 in Q3 2010
-- Net cash and investments portfolio of $215.2 million at
December 31, 2010
-- Global launch of CO2RE and elure
Lou Scafuri, Chief Executive Officer of Syneron, commented, “The strength of our fourth quarter results clearly demonstrates the benefits of the Syneron and Candela merger. The combined businesses have an unmatched product portfolio and global sales network, which are supported by strong clinical data and customer relationships. We have successfully executed on the integration plan and leveraged these factors to drive continued revenue growth while also focusing on driving operational efficiencies and investing in new growth opportunities.
“We made significant progress on the new product front during the quarter, including global launches of our CO2RE Fractional CO2 Resurfacing System and elure Advanced Skin Lightening Technology. In addition, we are on schedule to launch the ePrime Energy-Based Dermal Remodeling during the first quarter, followed by several additional anticipated new product launches throughout the year. We have received positive feedback on all of the recently launched products, including at the American Academy of Dermatology annual meeting earlier this month.
“As part of our growth strategy, during the quarter we acquired the Tända line of LED home-use products, giving us an immediate presence in the important aesthetic home-use market. Tända represents a synergistic growth opportunity with our other direct to consumer initiatives and we expect this to become an increasingly important part of our business as we launch these new products.”
Revenue: Fourth quarter 2010 revenue was $53.5 million, an increase of 14.7% compared to $46.6 million in the fourth quarter 2009. International revenue was $35.3 million, an increase of 20% compared to $29.5 million in the fourth quarter 2009. Fourth quarter 2010 revenue in North America was $18.2 million, an increase of 5.7% compared to $17.2 million in the fourth quarter 2009.
Non-GAAP Financial Highlights for the Fourth Quarter Ended December 31, 2010:
Gross Margin: Fourth quarter 2010 gross margin was 54.4%, compared to 50.0% in the fourth quarter 2009 and 52.3% in the third quarter 2010.
Operating Income (loss): Fourth quarter 2010 operating income was $4.0 million, compared to an operating loss of $5.8 million in the fourth quarter 2009 and an operating loss of $0.5 million in the third quarter 2010. Fourth quarter 2010 operating income represented 7.5% of revenue in the quarter, compared to an operating loss of 12.4% of revenue in the fourth quarter 2009 and 1.1% of revenue in the third quarter 2010.
Net Income (loss): Fourth quarter 2010 income from continuing operations before non-controlling interest was $3.4 million, compared to a loss of $4.1 million in the fourth quarter 2009 and a loss of $1.5 million in the third quarter 2010.
Fourth quarter non-GAAP operating income and net income excludes one-time income and expenses as detailed in the Company’s financial tables, with the main item being a one-time income of $8.5 million related to the recognition of a deferred gain related to the Company’s merger with Candela Corporation.
Earnings Per Share: Fourth quarter 2010 earnings per share (basic and diluted) was $0.10, compared to a loss per share of $0.12 in the fourth quarter 2009 and a loss per share of $0.04 in the third quarter 2010.
GAAP Financial Highlights for the Fourth Quarter Ended December 31, 2010:
Gross Margin: Fourth quarter 2010 gross margin was 52.5%, compared to 49.0% in the fourth quarter 2009 and 50.8% in the third quarter 2010.
Operating Income (loss): Fourth quarter 2010 operating income was $8.0 million, compared to an operating loss of $8.6 million in the fourth quarter 2009 and an operating loss of $5.0 million in the third quarter 2010.
Net Income (loss) from continuing operations before non-controlling interest: Fourth quarter 2010 net income was $8.1 million, compared to a net loss of $6.2 million in the fourth quarter of 2009 and a loss of $5.3 million in the third quarter 2010.
Earnings Per Share: Fourth quarter 2010 earnings per share basic was $0.25 and diluted was $0.24, compared to a loss per share of $0.18 in the fourth quarter 2009 and a loss per share of $0.15 in the third quarter 2010.
Cash Position: As of December 31, 2010, net cash and cash equivalents, including short-term bank deposits and investments in marketable securities, were $215.2 million.
Asaf Alperovitz, Chief Financial Officer of Syneron, commented, “Beginning this quarter, we are breaking out our financial results between Professional Aesthetic Devices and Emerging Business Units in order to provide increased transparency into our results. We believe this segment reporting will allow investors to better gauge the growth and significant investments we are making as part of our overall growth strategy in our emerging technologies that are primarily targeted at the home-use consumer market. Products in the Emerging Business Units segment include eLure skin whitening, Tända LED systems, MEmyelos hair removal system, Light Instruments’ dental laser devices along with pipeline products that include our strategic home-use device partnership with Procter & Gamble and Fluorinex teeth whitening and fluorination. Segment reporting will also provide a view of the operating results for the traditional Syneron and Candela business, which we have labeled as Professional Aesthetic Devices, or PAD.”
Mr. Alperovitz added, “Our fourth quarter 2010 results in the PAD segment demonstrate a significant improvement in margins that we believe is indicative of the potential leverage we can drive from the combined Syneron and Candela business. Additionally, for the full year 2010 the PAD segment was operationally profitable on a non-GAAP basis. In 2011, we expect further margin improvements for our PAD segment as our mix shifts in favor of higher gross margin products and consumables and we execute on our cross selling opportunities and additional efficiency initiatives that we see in the business.”
Unaudited Non-GAAP segment results for the three months ended December 31, 2010 and 2009 (in thousands):
For the three-months ended
----------------------------------------------
December December
31, % of 31, % of % of
2010 Revenues 2009 Revenues Change
---------- ---------- ---------- ---------- ----------
Revenues
Professional
Aesthetic
Devices $ 52,170 97.4% $ 46,615 99.9% 11.9%
Emerging
Business
Units 1,373 2.6% 60 0.1% 2188.3%
---------- ----------
Total revenues $ 53,543 100.0% $ 46,675 100.0% 14.7%
========== ==========
Professional
Aesthetic
Devices $ 5,948 11.4% $ (3,692) -7.9% -261.1%
Emerging
Business
Units (1,926) -140.3% (2,097) -3495.0% -8.2%
---------- ----------
Total operating
income (loss) $ 4,022 7.5% $ (5,789) -12.4% -169.5%
========== ==========
Unaudited Non-GAAP segment results for the twelve months ended December 31, 2010 and 2009 (in thousands):
For the twelve-months ended
----------------------------------------------
December December
31, % of 31, % of % of
2010 Revenues 2009 Revenues Change
---------- ---------- ---------- ---------- ----------
Revenues
Professional
Aesthetic
Devices $ 185,951 97.9% $ 171,473 98.3% 8.4%
Emerging
Business
Units 3,927 2.1% 2,908 1.7% 35.0%
---------- ----------
Total revenues $ 189,878 100.0% $ 174,381 100.0% 8.9%
========== ==========
Operating
income (loss)
Professional
Aesthetic
Devices $ 302 0.2% $ (22,453) -13.1% -101.3%
Emerging
Business
Units (6,117) -155.8% (3,211) -110.4% 90.5%
---------- ----------
Total operating
loss $ (5,815) -3.1% $ (25,664) -14.7% -77.3%
========== ==========
Unaudited GAAP segment results for the three months ended December 31, 2010 and 2009 (in thousands):
For the three-months ended
----------------------------------------------
December December
31, % of 31, % of % of
2010 Revenues 2009 Revenues Change
---------- ---------- ---------- ---------- ----------
Revenues
Professional
Aesthetic
Devices $ 52,083 97.4% $ 46,528 99.9% 11.9%
Emerging
Business
Units 1,373 2.6% 60 0.1% 2188.3%
---------- ----------
Total revenues $ 53,456 100.0% $ 46,588 100.0% 14.7%
========== ==========
Operating
income (loss)
Professional
Aesthetic
Devices $ 9,963 19.1% $ (6,502) -14.0% -253.2%
Emerging
Business
Units (1,926) -140.3% (2,097) -3495.0% -8.2%
---------- ----------
Total operating
income (loss) $ 8,037 15.0% $ (8,599) -18.5% -193.5%
========== ==========
Unaudited GAAP segment results for the twelve months ended December 31, 2010 and 2009 (in thousands):
For the twelve-months ended
----------------------------------------------
December December
31, % of 31, % of % of
2010 Revenues 2009 Revenues Change
---------- ---------- ---------- ---------- ----------
Revenues
Professional
Aesthetic
Devices $ 185,601 97.9% $ 171,124 98.3% 8.5%
Emerging
Business
Units 3,927 2.1% 2,908 1.7% 35.0%
---------- ----------
Total revenues $ 189,528 100.0% $ 174,032 100.0% 8.9%
========== ==========
Operating
income (loss)
Professional
Aesthetic
Devices $ (27,285) -14.7% $ (35,318) -20.6% -22.7%
Emerging
Business
Units (6,117) -155.8% (3,211) -110.4% 90.5%
---------- ----------
Total operating
loss $ (33,402) -17.6% $ (38,529) -22.1% -13.3%
========== ==========
Use of Non-GAAP Measures
This press release provides financial measures for gross margin, net income (loss), net income ( loss) per basic and diluted share, which exclude one-time expenses relating to the mergers with Candela Corporation and Primeva Medical Inc, one-time income due to reversal of a deferred gain related to the merger with Candela Corporation, and an expense charge related to stock-based compensation and amortization and are therefore not calculated in accordance with generally accepted accounting principles (GAAP). Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance because it reflects our operational results and enhances management’s and investors’ ability to evaluate the Company’s gross margin, net loss and net loss per basic and diluted share. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management uses both GAAP and non-GAAP measures when evaluating the business internally and, therefore, felt it important to make these non-GAAP adjustments available to investors. A reconciliation of each GAAP to non-GAAP financial measure discussed in this press release is contained in the accompanying financial tables.
Conference call
Syneron management will host its fourth quarter 2010 earnings conference call today at 8:30 a.m. ET. Syneron will be broadcasting live via the Investor Relations section of its website, www.syneron.com. To access the call, enter the Syneron website, then click on the Investors Relations Overview and select “Q4 2010 Results Conference Call.”
Participants are encouraged to log on at least 15 minutes prior to the conference call in order to download the applicable audio software. The call can be heard live or with an on-line replay which will follow. Those interested in participating in the call and the question and answer session should dial 877-844-6886 in the U.S., and 970-315-0315 from overseas. The conference pass code is: 31269957.
About Syneron Medical Ltd.
Syneron Medical Ltd. (NASDAQ: ELOS) is the leading global aesthetic device company with a comprehensive product portfolio and a global distribution footprint. The Company’s technology enables physicians to provide advanced solutions for a broad range of medical-aesthetic applications including body contouring, hair removal, wrinkle reduction, rejuvenation of the skin’s appearance through the treatment of superficial benign vascular and pigmented lesions, and the treatment of acne, leg veins and cellulite. The Company sells its products under two distinct brands, Syneron and Candela. Founded in 2000, the corporate, R&D, and manufacturing headquarters for Syneron Medical Ltd. are located in Israel. Syneron also has R&D and manufacturing operations in the US. The company markets and services and supports its products in 86 countries. It has offices in North America, France, Germany, Italy, Portugal, Spain, UK, Australia, China, Japan, and Hong Kong and distributors worldwide. Additional information can be found at www.syneron.com.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
Any statements contained in this document regarding future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Further, any statements that are not statements of historical fact (including statements containing “believes,” “anticipates,” “plans,” “expects,” “may,” “will,” “would,” “intends,” “estimates” and similar expressions) should also be considered to be forward-looking statements. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including the risk that the businesses of Syneron and Candela may not be integrated successfully; the risk that the merger transaction with Candela may involve unexpected costs or unexpected liabilities; the risk that synergies from the merger transaction may not be fully realized or may take longer to realize than expected; the risk that disruptions from the merger transaction make it more difficult to maintain relationships with customers, employees, or suppliers; as well as the risks set forth in Syneron Medical Ltd.’s most recent Annual Report on Form 20-F, and the other factors described in the filings that Syneron Medical Ltd. makes with the SEC from time to time. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, Syneron Medical Ltd.’s actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
In addition, the statements in this document reflect the expectations and beliefs of Syneron Medical Ltd. as of the date of this document. Syneron Medical Ltd. anticipates that subsequent events and developments will cause its expectations and beliefs to change. However, while Syneron Medical Ltd. may elect to update these forward-looking statements publicly in the future, it specifically disclaims any obligation to do so. The forward-looking statements of Syneron Medical Ltd. do not reflect the potential impact of any future dispositions or strategic transactions that may be undertaken. These forward-looking statements should not be relied upon as representing Syneron Medical Ltd.’s views as of any date after the date of this document.
Syneron, the Syneron logo, eMatrix and elos are trademarks of Syneron Medical Ltd. and may be registered in certain jurisdictions. The elos (Electro-Optical Synergy) technology is a proprietary technology of Syneron Medical Ltd. All other names are the property of their respective owners.
Syneron Medical Ltd.
Unaudited Condensed Consolidated Statements of Income (Loss)
(in thousands, except per share data)
For the For the
three-months ended twelve-months ended
------------------- -------------------
December December December December
31, 31, 31, 31,
2010 2009 2010 2009
--------- --------- --------- ---------
Revenue $ 53,456 $ 14,403 $ 189,528 $ 54,726
Cost of sales 25,395 4,239 101,099 18,903
--------- --------- --------- ---------
Gross profit 28,061 10,164 88,429 35,823
Operating expenses:
Sales and marketing 14,310 7,869 63,429 34,156
General and administrative 6,612 3,419 36,103 16,478
Research and development 6,414 4,271 26,837 13,220
Other income, net (7,312) - (4,538) -
Legal settlement, net - - - (3,975)
--------- --------- --------- ---------
Total operating expenses 20,024 15,559 121,831 59,879
--------- --------- --------- ---------
Income (loss) from operations 8,037 (5,395) (33,402) (24,056)
Other income:
Financial Income, net 419 436 717 2,097
Other income 110 562 44 562
--------- --------- --------- ---------
Total other income 529 998 761 2,659
--------- --------- --------- ---------
Income (loss) from continuing
operations before income taxes 8,566 (4,397) (32,641) (21,397)
(Benefit) expense from income
taxes 427 785 (5,110) 3,240
--------- --------- --------- ---------
Income (loss) from continuing
operations before
non-controlling interest 8,139 (5,182) (27,531) (24,637)
Net loss attributable to
non-controlling interest 244 837 1,799 1,050
Income from discontinued
operations, net of income
taxes - - 196 -
--------- --------- --------- ---------
Net income (loss) attributable
to Syneron shareholders $ 8,383 $ (4,345) $ (25,536) $ (23,587)
========= ========= ========= =========
Income (loss) per share:
Basic
Income (loss) from continuing
operations before
non-controlling interest $ 0.24 $ (0.19) $ (0.80) $ (0.90)
Net loss attributable to
non-controlling interest 0.01 0.03 0.05 0.04
Income from discontinued
operations - - 0.01 -
--------- --------- --------- ---------
Net Income (loss)
attributable to Syneron
shareholders $ 0.25 $ (0.16) $ (0.74) $ (0.86)
--------- --------- --------- ---------
Diluted
Income (loss) from continuing
operations before
non-controlling interest $ 0.23 $ (0.19) $ (0.80) $ (0.90)
Net loss attributable to
non-controlling interest 0.01 0.03 0.05 0.04
Income from discontinued
operations - - 0.01 -
--------- --------- --------- ---------
Net Income (loss)
attributable to Syneron
shareholders $ 0.24 $ (0.16) $ (0.74) $ (0.86)
--------- --------- --------- ---------
Weighted average shares
outstanding:
Basic 34,533 27,591 34,369 27,526
--------- --------- --------- ---------
Diluted 34,998 27,591 34,369 27,526
--------- --------- --------- ---------
Syneron Medical Ltd.
Condensed Consolidated Balance Sheets
(in thousands)
December December
31, 31,
2010 2009
----------- -----------
(unaudited) (audited)
Assets
Current assets:
Cash and cash equivalents $ 63,821 $ 24,372
Short-term bank deposits 1,590 1,000
Available-for-sale marketable securities 114,799 169,309
Accounts receivable, net 42,440 13,758
Other current assets 13,868 2,753
Inventories, net 22,720 8,592
----------- -----------
Total current assets 259,238 219,784
----------- -----------
Non-current assets:
Severance pay fund 334 246
Long-term deposits and others 2,346 221
Long-term available-for-sale marketable
securities 37,721 11,449
Investments in affiliated companies 9,369 1,050
Property and equipment, net 4,029 2,885
Goodwill and Intangible assets, net 56,818 34,632
Deferred taxes 6,854 -
----------- -----------
Total non-current assets 117,471 50,483
----------- -----------
Total assets $ 376,709 $ 270,267
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities:
Bank indebtedness $ 2,737 $ -
Accounts payable 16,644 3,735
Other accounts payable and accrued expenses 55,056 30,153
----------- -----------
Total current liabilities 74,437 33,888
----------- -----------
Non-current liabilities:
Contingent consideration 11,365 7,331
Deferred Revenues 4,528 902
Warranty Accruals 1,074 558
Accrued severance pay 554 330
Deferred taxes 6,215 -
----------- -----------
Total non-current liabilities 23,736 9,121
----------- -----------
Stockholders' equity: 278,536 227,258
----------- -----------
Total liabilities and stockholders' equity $ 376,709 $ 270,267
=========== ===========
Syneron Medical Ltd.
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
For the
twelve months ended:
----------------------
December December
31, 31,
2010 2009
---------- ----------
Cash flows from operating activities:
Net loss before non-controlling interest $ (27,335) $ (24,637)
Adjustments to reconcile net loss to net cash
used by operating activities:
Share-based compensation expense 3,196 4,264
Depreciation and amortization 9,186 1,927
Impairments of available-for-sale marketable
securities and other intangible assets 1,378 173
Impairment of investment in an affiliated
company 850 -
Realized loss, changes in accrued interest, and
amortization of premium on marketable
securities 970 1,578
Deferred gain related to acquisition of
Subsidiary and revaluation of contingent
liability (6,900) -
Gain on investments in affiliated companies as
a result of a business combination - (562)
Changes in operating assets and liabilities
Accounts receivable 450 18,879
Inventories 13,180 4,320
Other current assets (4,506) 64
Deferred taxes 7,105 1,549
Accrued severance pay, net 136 (9)
Accounts payable 4,201 (5,039)
Deferred revenue (3,885) (3,608)
Accrued warranty costs 315 (4)
Other accrued liabilities (4,732) 160
---------- ----------
Net cash used by operating activities (6,391) (945)
---------- ----------
Cash flows from investing activities:
Purchases of property and equipment (887) (487)
Maturities of held-to-maturity marketable
securities 460 -
Proceeds from the sale of available-for-sale
marketable securities 210,228 256,735
Purchase of available-for-sale marketable
securities (182,961) (294,345)
Cash paid for investments in affiliated
companies (5,000) (750)
Net cash (paid in) received from acquisition of
subsidiary 21,602 (7,729)
Other investing activities (360) (1,022)
---------- ----------
Net cash provided by (used by) investing activities 43,082 (47,598)
---------- ----------
Cash flows from financing activities:
Proceeds from exercise of stock options 1,932 549
---------- ----------
Net cash provided by financing activities 1,932 549
---------- ----------
Effect of exchange rates on cash and cash
equivalents 826 -
---------- ----------
Net increase (decrease) in cash and cash
equivalents 39,449 (47,994)
Cash and cash equivalents at beginning of period 24,372 72,366
---------- ----------
Cash and cash equivalents at end of period $ 63,821 $ 24,372
========== ==========
Syneron Medical Ltd.
Unaudited Non-GAAP Financial Measures and Reconciliation
(in thousands, except per share data)
For the For the
three-months ended twelve-months ended
-------------------- --------------------
December December December December
31, 31, 31, 31,
2010 2009 2010 2009
--------- --------- --------- ---------
GAAP operating income (loss) $ 8,037 $ (5,395) $ (33,402) $ (24,056)
Stock-based compensation 692 837 3,196 4,264
Amortization of acquired
intangible assets 2,019 68 6,668 272
Merger, restructuring and
other non-recurring items,
net (6,726) - 17,723 -
--------- --------- --------- ---------
Non-GAAP operating income
(loss) $ 4,022 $ (4,490) $ (5,815) $ (19,520)
========= ========= ========= =========
GAAP income (loss) from
continuing operations
before non-controlling
interest $ 8,139 $ (5,182) $ (27,531) $ (24,637)
Stock-based compensation 692 837 3,196 4,264
Amortization of acquired
intangible assets 2,019 68 6,668 272
Merger, restructuring and
other non-recurring items,
net (6,726) - 17,723 -
Income tax adjustments (760) - (8,983) -
--------- --------- --------- ---------
Non-GAAP income (loss) from
continuing operations
before non-controlling
interest $ 3,364 $ (4,277) $ (8,927) $ (20,101)
========= ========= ========= =========
Loss per share:
Basic
GAAP income (loss) per share
from continuing operations $ 0.24 $ (0.19) $ (0.80) $ (0.89)
Stock-based compensation 0.02 0.03 0.09 0.15
Amortization of acquired
intangible assets 0.06 - 0.19 0.01
Merger, restructuring and
other non-recurring costs (0.20) - 0.52 -
Income tax adjustments (0.02) - (0.26) -
--------- --------- --------- ---------
Non-GAAP (income) loss per
share from continuing
operations before
non-controlling interest $ 0.10 $ (0.16) $ (0.26) $ (0.73)
========= ========= ========= =========
Diluted
GAAP income (loss) per share
from continuing operations $ 0.23 $ (0.19) $ (0.80) $ (0.89)
Stock-based compensation 0.02 0.03 0.09 0.15
Amortization of acquired
intangible assets 0.06 - 0.19 0.01
Merger, restructuring and
other non-recurring costs (0.19) - 0.52 -
Income tax adjustments (0.02) - (0.26) -
--------- --------- --------- ---------
Non-GAAP income (loss) per
share from continuing
operations before
non-controlling interest $ 0.10 $ (0.16) $ (0.26) $ (0.73)
========= ========= ========= =========
Weighted average shares
outstanding:
Basic 34,533 27,591 34,369 27,526
--------- --------- --------- ---------
Diluted 35,279 27,591 34,369 27,526
--------- --------- --------- ---------
Syneron Medical Ltd.
Unaudited Pro Forma Condensed Consolidated Statements of Income (Loss)
(in thousands, except per share data)
For the three months ended December 31, 2009
------------------------------------------------------
Syneron Candela Pro Forma Pro Forma
Medical Corporation Adjustments Combined
------------ ------------ ------------ ------------
Revenue $ 14,403 $ 32,272 $ (87) $ 46,588
Cost of sales 4,239 19,227 275 23,741
------------ ------------ ------------ ------------
Gross profit 10,164 13,045 (362) 22,847
Operating expenses:
Sales and
marketing 7,869 8,245 968 17,082
General and
administrative 3,419 4,027 100 7,546
Research and
development 4,271 2,547 - 6,818
------------ ------------ ------------ ------------
Total operating
expenses 15,559 14,819 1,068 31,446
------------ ------------ ------------ ------------
Loss from
operations (5,395) (1,774) (1,430) (8,599)
Other income:
Financial Income,
net 436 33 - 469
Other income 562 534 - 1,096
------------ ------------ ------------ ------------
Total other
income 998 567 - 1,565
------------ ------------ ------------ ------------
Loss from
continuing
operations before
income taxes (4,397) (1,207) (1,430) (7,034)
Expense (benefit)
from income taxes 785 (1,118) (520) (853)
------------ ------------ ------------ ------------
Loss from
continuing
operations
before
non-controlling
interest (5,182) (89) (910) (6,181)
============ ============ ============ ============
Loss per share:
Basic and diluted
Loss from
continuing
operations
before
non-controlling
interest $ (0.18)
============
Weighted average
shares
outstanding:
Basic and diluted 34,261
------------
Syneron Medical Ltd.
Unaudited Pro Forma Condensed Consolidated Statements of Income (Loss)
(in thousands, except per share data)
For the twelve months ended December 31, 2009
------------------------------------------------------
Syneron Candela Pro Forma Pro Forma
Medical Corporation Adjustments Combined
------------ ------------ ------------ ------------
Revenue $ 54,726 $ 119,655 $ (349) $ 174,032
Cost of sales 18,903 73,631 1,370 93,904
------------ ------------ ------------ ------------
Gross profit 35,823 46,024 (1,719) 80,128
Operating expenses:
Sales and
marketing 34,156 30,202 3,872 68,230
General and
administrative 16,478 15,334 400 32,212
Research and
development 13,220 8,970 - 22,190
Legal settlement,
net (3,975) - - (3,975)
------------ ------------ ------------ ------------
Total operating
expenses 59,879 54,506 4,272 118,657
------------ ------------ ------------ ------------
Loss from
operations (24,056) (8,482) (5,991) (38,529)
Other income:
Financial Income,
net 2,097 598 - 2,695
Other income 562 543 - 1,105
------------ ------------ ------------ ------------
Total other
income 2,659 1,141 - 3,800
------------ ------------ ------------ ------------
Loss from
continuing
operations before
income taxes (21,397) (7,341) (5,991) (34,729)
Expense (benefit)
from income taxes 3,240 (3,153) (2,179) (2,092)
------------ ------------ ------------ ------------
Loss from
continuing
operations
before
non-controlling
interest (24,637) (4,188) (3,812) (32,637)
============ ============ ============ ============
Loss per share:
Basic and diluted
Loss from
continuing
operations
before
non-controlling
interest $ (0.95)
============
Weighted average
shares
outstanding:
Basic and diluted 34,196
------------
Syneron Medical Ltd.
Unaudited Pro Forma Non-GAAP Financial Measures and Reconciliation
(in thousands, except per share data)
For the three months ended
December 31, 2009
-------------------------------------
Syneron Candela Pro Forma
Medical Corporation Combined
----------- ----------- -----------
GAAP operating loss $ (5,395) $ (3,204) $ (8,599)
Stock-based compensation 837 475 1,312
Amortization of acquired intangible
assets 68 1,320 1,388
Merger, restructuring and other
non-recurring costs - 110 110
----------- ----------- -----------
Non-GAAP operating loss $ (4,490) $ (1,299) $ (5,789)
=========== =========== ===========
GAAP loss from continuing operations $ (5,182) $ (999) $ (6,181)
Stock-based compensation 837 475 1,312
Amortization of acquired intangible
assets 68 1,320 1,388
Merger, restructuring and other
non-recurring costs - 110 110
Income tax adjustments - (693) (693)
----------- ----------- -----------
Non-GAAP loss from continuing
operations $ (4,277) $ 213 $ (4,064)
=========== =========== ===========
GAAP loss per share from continuing
operations $ (0.18)
Stock-based compensation 0.04
Amortization of acquired intangible
assets 0.04
Merger, restructuring and other
non-recurring costs -
Income tax adjustments (0.02)
-----------
Non-GAAP loss per share from
continuing operations $ (0.12)
===========
Weighted average shares outstanding:
Basic and diluted 34,261
-----------
Syneron Medical Ltd.
Unaudited Pro Forma Non-GAAP Financial Measures and Reconciliation
(in thousands, except per share data)
For the twelve months ended
December 31, 2009
-------------------------------------
Syneron Candela Pro Forma
Medical Corporation Combined
----------- ----------- -----------
GAAP operating loss $ (24,056) $ (14,473) $ (38,529)
Stock-based compensation 4,264 2,338 6,602
Amortization of acquired intangible
assets 272 5,279 5,551
Merger, restructuring and other
non-recurring costs - 712 712
----------- ----------- -----------
Non-GAAP operating loss $ (19,520) $ (6,144) $ (25,664)
=========== =========== ===========
GAAP loss from continuing operations $ (24,637) $ (8,000) $ (32,637)
Stock-based compensation 4,264 2,338 6,602
Amortization of acquired intangible
assets 272 5,279 5,551
Merger, restructuring and other
non-recurring costs - 712 712
Income tax adjustments - (3,029) (3,029)
----------- ----------- -----------
Non-GAAP loss from continuing
operations $ (20,101) $ (2,700) $ (22,801)
=========== =========== ===========
GAAP loss per share from continuing
operations $ (0.95)
Stock-based compensation 0.19
Amortization of acquired intangible
assets 0.16
Merger, restructuring and other
non-recurring costs 0.02
Income tax adjustments (0.09)
-----------
Non-GAAP loss per share from
continuing operations $ (0.67)
===========
Weighted average shares outstanding:
Basic and diluted 34,196
-----------
Syneron Contacts:
Asaf Alperovitz
Chief Financial Officer
+ 972 73 244 2283
Nick Laudico/Zack Kubow
The Ruth Group
646-536-7030/7020
Feb. 16, 2011 (Business Wire) — Cyanotech Corporation (Nasdaq Capital Market: CYAN), world leader in microalgae-based health and nutrition supplements, announced today that researchers at the University of California at Davis have determined that microalgae-based Hawaiian Spirulina Pacifica® may improve immune function and ameliorate anemia in persons over 50. Results of the UC Davis study will be published in the March edition of the journal Cellular & Molecular Immunology, in a paper entitled, ”The effects of Spirulina on anemia and immune function in senior citizens.”
Cyanotech produces Hawaiian Spirulina Pacifica, along with other microalgae nutrition supplements, at its 90-acre facility in Kona, Hawaii using patented and proprietary technology. Spirulina Pacifica is a nutrient-rich, highly absorbable source of protein, mixed carotenoids and other phytonutrients, B-Vitamins, GLA and essential amino acids.
Dr. Gerald Cysewski, Cyanotech’s Chief Scientific Officer, said, “We are delighted with the very positive results of the UC Davis Spirulina Pacifica study, and the impact this development can have on the health of the over-50 population. Study researchers are urging that large-scale random clinical trials of Spirulina Pacifica should now be undertaken, and we most definitely concur.”
The Cyanotech Spirulina Pacifica study was conducted by the UC Davis Division of Rheumatology, Allergy and Clinical Immunology under the supervision of Dr. M. Eric Gershwin and scientists from UC Davis. The objective was to determine if Spirulina Pacifica could be effective in countering two conditions that frequently impact the health of older people: anemia and declining immune function.
Thirty participants over the age of 50 took Spirulina Pacifica supplements for 12 weeks. Key blood chemistry markers for immune function were tested at the outset of the study and again after six and 12 weeks. The subjects’ daily dietary regimens were monitored throughout the process.
Dr. Cysewski said, “The research found a steady increase in corpuscular hemoglobin in subjects of both sexes, and improved immune function in the majority of subjects.”
About Cyanotech — Cyanotech Corporation, a world leader in microalgae technology, produces BioAstin® Natural Astaxanthin and Hawaiian Spirulina Pacifica®—all natural, functional nutrients that leverage our experience and reputation for quality, building nutritional brands which promote health and well-being. Cyanotech’s Spirulina products offer complete nutrition, and augment energy and immune response. They are FDA reviewed and accepted as Generally Recognized as Safe (GRAS) for use in food products. BioAstin’s superior antioxidant activity and ability to support and maintain a natural anti-inflammatory response enhance skin, muscle and joint health. All Cyanotech products are produced from microalgae grown at its 90-acre facility in Kona, Hawaii using patented and proprietary technology. Cyanotech distributes to nutritional supplement, nutraceutical and cosmeceutical manufacturers and marketers in more than 54 countries worldwide. Cyanotech was the first microalgae company in the world to obtain quality management standards ISO 9001:2000 certification and is GMP-certified by the Natural Products AssociationTM. Visit www.cyanotech.com for more information
Cyanotech Corporation
Bruce Russell
310-559-4955 x101
brussell@cyanotech.com
REDWOOD CITY, Calif., Feb. 16, 2011 (GLOBE NEWSWIRE) — Threshold Pharmaceuticals, Inc. (Nasdaq:THLD) today announced that the Company reached agreement with the U.S. Food and Drug Administration (FDA) on a Special Protocol Assessment (SPA) for a Phase 3 randomized trial of TH-302 in patients with soft tissue sarcoma. This pivotal trial is expected to begin in the middle of 2011, and will enroll patients with metastatic or locally advanced unresectable soft tissue sarcoma who have not previously received chemotherapy outside the adjuvant or neoadjuvant setting. The trial is designed to evaluate the efficacy and safety of TH-302 in combination with doxorubicin, compared to doxorubicin alone.
“With this SPA, we have reached agreement with the FDA on the key features of our Phase 3 trial design that will be necessary to support the registration of TH-302,” said Stewart Kroll, Threshold’s Vice President, Biostatistics and Clinical Operations. “The proposed trial is designed to confirm the encouraging results that we have previously reported in our ongoing Phase 1/2 trial of soft tissue sarcoma patients treated with TH-302 in combination with doxorubicin.”
TH-302 Clinical Development Rationale and Strategy
TH-302 has been investigated in over 400 patients with cancer as part of five clinical trials. The TH-302 clinical development program includes an ongoing Phase 1/2 trial in patients with soft tissue sarcoma. As presented at the Connective Tissue Oncology Society meeting in November 2010, fifty-four patients had at least one evaluable post-treatment tumor assessment and 18 of 54 (33%) had a partial response. The median progression free survival was 6.4 months (95% confidence interval: 5.6 to 6.9 months). These data formed the basis for the proposed Phase 3 study of TH-302 and doxorubicin compared to doxorubicin, as covered by the SPA.
In addition, Threshold is pursuing additional clinical trials in patients with solid tumors as well as hematologic malignancies. TH-302 is currently being evaluated in a Phase 2 randomized, controlled combination trial in patients with metastatic or locally advanced pancreatic cancer as well as a Phase 1 open label, monotherapy trial in patients with advanced leukemias.
About the Phase 3 Sarcoma Trial
The Phase 3 trial will be a 450 patient, randomized, open-label, multi-center trial comparing two treatment regimens for patients with metastatic and/or advanced unresectable soft tissue sarcoma who have not received prior doxorubicin. This trial is designed to demonstrate the clinical benefit of TH-302 in combination with doxorubicin compared to doxorubicin alone based on a primary efficacy endpoint of overall survival. The trial includes an interim analysis based on progression-free survival expected to occur about half-way into enrollment and an interim analysis based on overall survival expected to occur at the end of enrollment. Patients will be randomized to receive TH-302 (300 mg/m2 on days 1 and 8 of a 21 day cycle) in addition to the standard dosing schedule of doxorubicin (75 mg/m2 on day 1 of the 21 day cycle) compared to doxorubicin alone. The Company plans to commence the trial in the middle of 2011.
About Soft Tissue Sarcoma
Sarcomas are a group of aggressive cancers of connective tissue of the body for which there are currently limited treatment options. Soft tissue sarcomas are treated with surgery, chemotherapy and radiation. Usually a combination of these modalities offers the best chance to treat the disease successfully. Doxorubicin and ifosfamide are the most commonly used chemotherapeutic agents in patients with advanced soft tissue sarcoma, but response rates are generally low and toxicity can be significant. The American Cancer Society estimates that 10,520 people were diagnosed with a soft tissue sarcoma in the United States in 2010, and approximately 3,920 people died from the disease.
About Special Protocol Assessments
A Special Protocol Assessment is a written agreement with the FDA on the design and planned analysis for a clinical trial. It is intended to form the basis for a marketing application and may only be changed through a written agreement between the sponsor and the FDA, or if the FDA becomes aware of new public health concerns.
About Threshold Pharmaceuticals
Threshold is a biotechnology company focused on the discovery and development of drugs targeting Tumor Hypoxia, the low oxygen condition found in microenvironments of most solid tumors. This approach offers broad potential to treat most solid tumors. By selectively targeting tumor cells, we are building a pipeline of drugs that hold promise to be more effective and less toxic to healthy tissues than conventional anticancer drugs. For additional information, please visit our website (www.thresholdpharm.com).
Forward-Looking Statements
Except for statements of historical fact, the statements in this press release are forward-looking statements, including statements regarding TH-302 and its potential therapeutic uses and benefits. These statements involve risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Threshold’s ability to raise sufficient funding to conduct the Phase 3 trial of TH-302 for patients with soft tissue sarcoma and to successfully enroll patients in that trial as well as the ongoing clinical trials of TH-302, whether the Company’s clinical trials will show results predicted by the Company’s pre-clinical trials or confirm the results of earlier trials, the time and expense required to conduct such clinical trials and analyze data, issues arising in the regulatory or manufacturing process and any unanticipated or increased side-effects observed in patients receiving TH-302. Further information regarding these and other risks is included under the heading “Risk Factors” in Threshold’s Quarterly Report on Form 10-Q, which was filed with the Securities Exchange Commission on November 4, 2010 and is available from the SEC’s website (www.sec.gov) and on our website (www.thresholdpharm.com) under the heading “Investors.” We do not intend to update any forward-looking statement made in this news release.
CONTACT: Denise T. Powell
Sr. Director, Corporate Communications
Threshold Pharmaceuticals, Inc.
650-474-8206
dpowell@thresholdpharm.com
Feb. 15, 2011 (Business Wire) — GlobalSCAPE, Inc. (NYSE Amex: GSB), a leading developer of secure information exchange solutions, announced today immediate availability of a new hosted managed file transfer (MFT) solution, GlobalSCAPE Hosted Enhanced File Transfer Server™. This new service expands the company’s cloud-based Managed Solutions, launched in July 2010, by integrating a hosted version of its market-leading Enhanced File Transfer Server® (EFT Server) solution with proven infrastructure from Rackspace® Hosting (NYSE: RAX), the world’s leading specialist in the hosting and cloud computing industry.
GlobalSCAPE’s Hosted EFT Server enables organizations to securely exchange business-to-business data, including large files and sensitive data, through the cloud. This scalable and tiered service is ideal for the small-to-medium (SMB) market, and also allows customers of all sizes to outsource all or part of their complex and demanding secure information exchange needs. Through such outsourcing, customers can greatly reduce costs, increase efficiencies, track and audit transactions, and provide a greater level of security and compliance, at affordable price points.
The Hosted EFT Server offering delivers these benefits while allowing direct customer management of the EFT Server solution. GlobalSCAPE also offers a fully managed solution, Managed Information Xchange (MIX), for companies seeking complete support.
“Many organizations are embracing cloud computing to save money and to increase efficiency and business agility,” said Mark Perry, vice president of managed solutions at GlobalSCAPE. “This new service will be very attractive to SMB customers who are looking for high-end managed file transfer capabilities delivered securely through a cloud-based infrastructure at an affordable price.”
Key benefits and features of the new offering include:
- Market-leading features and security capabilities of GlobalSCAPE’s EFT Server solution adopted by thousands of customers worldwide
- Robust MFT features including management, automation, and auditing of all file transfer activity for meeting security and compliance mandates
- “Pay as you go” flexible and affordable pricing that helps customers eliminate upfront capital expenditures
- Reduced ongoing maintenance expenses, including hardware, software, and utility services costs
- Deployed rapidly to meet time-sensitive business demands
- Reliable and timely support from GlobalSCAPE’s support team
GlobalSCAPE is discussing Hosted EFT Server and the growth of cloud computing this week at the 2011 RSA Conference (Booth #2159) in San Francisco, February 14 – 18. The annual RSA Conference brings together key players, companies, and potential customers from the information security industry.
To learn more about GlobalSCAPE Hosted EFT Server, including features and benefits, please visit the company website.
In addition to GlobalSCAPE Hosted Enhanced File Transfer Server, GlobalSCAPE also announced the development of appShield™, an innovative new computer security product for home and small business computers. With appShield, GlobalSCAPE is pioneering a much needed safeguard to protect computers against the rapid growth of viruses and other malicious software. appShield is based on proven enterprise-level application whitelisting technology from CoreTrace Corporation, the recognized leader in dynamic and client-based application whitelisting. For more information about GlobalSCAPE and its announcements at the event, please visit the digital press room.
About GlobalSCAPE
GlobalSCAPE, Inc. (NYSE Amex: GSB), headquartered in San Antonio, TX, is a global solutions provider that equips organizations to securely exchange sensitive information and files across multiple locations and with customers and partners. Since the release of CuteFTP in 1996, GlobalSCAPE’s solutions have continued to evolve to meet the business and technology needs of an increasingly interconnected global marketplace. Serving a customer base that spans more than 150 countries and includes the majority of Fortune 100 companies, GlobalSCAPE’s primary focus is providing customers with intuitive and efficient managed file transfer (MFT) solutions while also ensuring end-to-end security. For more information, visit www.globalscape.com, or subscribe to our Blog and Twitter updates.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “would,” “exceed,” “should,” “anticipates,” “believe,” “steady,” “dramatic,” and variations of such words and similar expressions identify forward-looking statements, but their absence does not mean that a statement is not a forward-looking statement. These forward-looking statements are based upon the Company’s current expectations and are subject to a number of risks, uncertainties and assumptions. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Among the important factors that could cause actual results to differ significantly from those expressed or implied by such forward-looking statements are risks that are detailed in the Company’s Annual Report on Form 10-K for the 2009 calendar year, filed with the Securities and Exchange Commission on March 30, 2010.
New Venture Communications
Lauren Dresnick, 650-740-4034
ldresnick@newventurecom.com
WESTFORD, Mass., Feb. 15, 2011 /PRNewswire/ — Cynosure, Inc. (Nasdaq: CYNO) today announced financial results for the three months and year ended December 31, 2010.
Revenues for the fourth quarter of 2010 increased 16 percent to $22.3 million from $19.3 million in the same period of 2009. Net loss for the fourth quarter of 2010 was $0.8 million, or $0.06 per basic and diluted share, compared with a net loss of $14.5 million, or $1.14 per basic and diluted share, or the comparable period of 2009. Financial results for the fourth quarter of 2009 included a non-cash tax charge of $10.4 million to establish a valuation allowance against the company’s U.S. deferred tax assets, and a $2.1 million non-cash charge related to an inventory write-down of an earlier-generation product.
The company reduced its loss from operations in the fourth quarter of 2010 to $0.6 million, which included stock-based compensation of approximately $0.6 million. This compares with a loss from operations in the fourth quarter of 2009 of $5.7 million, which included stock-based compensation of $1.1 million.
“Higher product demand from North America and overseas drove our revenue growth in the fourth quarter,” said Cynosure President and Chief Executive Officer Michael Davin. “In North America, laser product sales were up 17 percent from the same period in 2009. Although financing remains difficult for many aesthetic practitioners, the relationships we have established with certain financial institutions and third-party financing sources are gradually beginning to improve access to credit for our customers. International laser product sales rose 18 percent from the fourth quarter of 2009, paced by solid gains in our Asian direct distribution network.”
Gross profit for the fourth quarter of 2010 was 55.9 percent of total revenues, compared with 43.9 percent for the same period of 2009, which included the inventory write-down. The improvement in gross margin in the 2010 period reflected the effects of the inventory write-down as well as a higher percentage of sales from direct distribution channels, which carry higher margins than products sold through third-party distributors.
Total operating expenses for the fourth quarter of 2010 decreased $1.1 million, or 8 percent, to $13.1 million from $14.2 million for the same period of 2009. For full-year 2010, total operating expenses decreased $8.9 million, or 15 percent, to $51.4 million from $60.3 million for 2009.
“We generated positive cash flow from operations for the seventh consecutive quarter in Q4, reflecting the success of our cost-reduction initiatives,” Davin said. “With our $8.9 million decrease in operating expenses for the year, we exceeded our goal of lowering annualized operating expenses in the range of $5 million to $7 million from 2009, and also exceeded our objective to be cash-flow breakeven for 2010. Our cash, marketable securities and investments totaled $96.8 million at year-end, an increase of approximately $4.9 million from the end of 2009. We also purchased $1.4 million of stock under our previously announced stock buyback plan in 2010.”
FY 2010 Financial Results: Year-over-Year Revenue Growth of 12 Percent
Revenues for the 12 months ended December 31, 2010 increased 12 percent to $81.8 million from $72.8 million for the full year of 2009. Gross profit for 2010 was 56.7 percent of total revenues, compared with 54.9 percent for 2009, which included the inventory write-down. Net loss for 2010 was $5.5 million, or $0.44 per basic and diluted share, compared with a net loss for full-year 2009 of $22.8 million, or $1.79 per basic and diluted share. Financial results for 2009 included the non-cash tax charge of $10.4 million to establish a valuation allowance against the company’s U.S. deferred tax assets, and the $2.1 million non-cash charge related to an inventory write-down of an earlier-generation product.
Recent Highlights
- World’s First Minimally Invasive Laser for Long-term Cellulite Reduction: Cynosure recently introduced the Cellulaze™ Cellulite Laser Workstation, the world’s first minimally invasive surgical device specifically designed for the long-term reduction of cellulite. Cellulaze uses laser energy to restore the normal structure of the skin and underlying connective tissue, increasing skin elasticity and thickness. The product, which recently received CE Mark certification, was unveiled this month at the American Academy of Dermatology’s 69th Annual Meeting in New Orleans. It will be available for sale to physicians in the European Union in the second quarter of 2011.
- Non-Invasive SmoothShapes XV for Temporary Reduction of Cellulite: Cynosure acquired substantially all of the assets of Eleme Medical, including the company’s non-invasive SmoothShapes® XV system for the temporary reduction in the appearance of cellulite. The SmoothShapes XV system treats cellulite through a proprietary process known as Photomology®, which combines laser and light energy with mechanical manipulation (vacuum and massage) to produce tighter, smoother-looking skin. The system is FDA cleared for marketing in the United States and CE marked for sale in the European Union.
“Product innovation is the engine that continues to drive growth at Cynosure, and we believe that our new cellulite workstations will play an integral role in the company’s long-term success,” Davin said. “In Cellulaze and SmoothShapes XV, we are building a broad technology platform designed to serve practitioners and their patients who are seeking a solution for either long-lasting or temporary cellulite reduction. We are excited about the future potential of these products to treat what we believe is a significantly underserved aesthetic indication that affects 85 percent of women over the age of 20.”
Outlook
“Our strong balance sheet and aggressive cost-reduction initiatives put us on solid financial footing for the coming year, as we focus on building momentum across our direct and third-party distributor sales,” Davin said. “Near-term, we plan to begin rolling out Cellulaze in key European territories, complete the clinical steps necessary for regulatory review of our Cellulaze 510(k) application in the United States and launch our SmoothShapes XV workstation in domestic and international markets. We are optimistic about the prospects for our business in 2011.”
Fourth-Quarter and Year-End Financial Results Conference Call
In conjunction with its fourth-quarter results, Cynosure will host a conference call for investors and analysts at 9:00 a.m. ET today. On the call, Michael Davin and Timothy Baker, the company’s Executive Vice President and Chief Financial Officer, will discuss the company’s financial results and provide a business overview. Those who wish to listen to the conference call webcast should visit the “Investor Relations” section of the company’s website at www.cynosure.com. The live call can also be accessed by dialing (877) 407-5790 or (201) 689-8328. If you are unable to listen to the live call, the webcast will be archived on the company’s website.
About Cynosure, Inc.
Cynosure, Inc. develops and markets aesthetic treatment systems that are used by physicians and other practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and pigmented lesions, rejuvenate the skin, liquefy and remove unwanted fat through laser lipolysis and reduce the appearance of cellulite. Cynosure’s products include a broad range of laser and other light-based energy sources, including Alexandrite, pulse dye, Nd:YAG and diode lasers, as well as intense pulsed light. Cynosure was founded in 1991. For corporate or product information, contact Cynosure at 800-886-2966, or visit www.cynosure.com.
Forward-Looking Statements
Any statements in this press release about future expectations, plans and prospects for Cynosure, Inc., including statements about the company’s anticipated financial results, as well as other statements containing the words “believes,” “anticipates,” “plans,” “expects,” “will” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the global economy and lending environment and their effects on the aesthetic laser industry, Cynosure’s history of operating losses, its reliance on sole source suppliers, the inability to accurately predict the timing or outcome of regulatory decisions, changes in consumer preferences, competition in the aesthetic laser industry, economic, market, technological and other factors discussed in Cynosure’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which are filed with the Securities and Exchange Commission. In addition, the forward-looking statements included in this press release represent Cynosure’s views as of the date of this press release. Cynosure anticipates that subsequent events and developments will cause its views to change. However, while Cynosure may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Cynosure’s views as of any date subsequent to the date of this press release.
|
Consolidated Statements of Income (Unaudited)
|
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Dec. 31,
|
|
Year Ended Dec. 31,
|
|
|
|
2010
|
2009
|
|
2010
|
2009
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
$ 22,342
|
$ 19,259
|
|
$ 81,775
|
$ 72,825
|
|
|
Cost of revenues
|
9,859
|
10,811
|
|
35,388
|
32,808
|
|
|
Gross profit
|
12,483
|
8,448
|
|
46,387
|
40,017
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
Selling and marketing
|
8,702
|
9,402
|
|
32,818
|
39,098
|
|
|
Research and development
|
1,846
|
1,678
|
|
7,300
|
6,679
|
|
|
General and administrative
|
2,561
|
3,116
|
|
11,312
|
14,556
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
13,109
|
14,196
|
|
51,430
|
60,333
|
|
|
|
|
|
|
|
|
|
|
Loss from operations
|
(626)
|
(5,748)
|
|
(5,043)
|
(20,316)
|
|
|
|
|
|
|
|
|
|
|
Interest income, net
|
24
|
69
|
|
163
|
523
|
|
|
Other (expense) income, net
|
(28)
|
(12)
|
|
(224)
|
694
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
(630)
|
(5,691)
|
|
(5,104)
|
(19,099)
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
168
|
8,807
|
|
442
|
3,659
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
$ (798)
|
$ (14,498)
|
|
$ (5,546)
|
$ (22,758)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per share
|
$ (0.06)
|
$ (1.14)
|
|
$ (0.44)
|
$ (1.79)
|
|
|
Diluted weighted average shares outstanding
|
12,592
|
12,712
|
|
12,666
|
12,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per share
|
$ (0.06)
|
$ (1.14)
|
|
$ (0.44)
|
$ (1.79)
|
|
|
Basic weighted average shares outstanding
|
12,592
|
12,712
|
|
12,666
|
12,709
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheet
|
|
|
(In thousands)
|
|
|
|
Dec. 31,
|
|
Dec. 31,
|
|
|
|
2010
|
|
2009
|
|
|
|
(unaudited)
|
|
|
Assets:
|
|
|
|
|
|
Cash, cash equivalents and short-term marketable securities
|
$ 86,836
|
|
$ 68,505
|
|
|
Short-term investments and related financial instruments
|
–
|
|
18,454
|
|
|
Accounts receivable, net
|
10,621
|
|
11,741
|
|
|
Inventories
|
18,684
|
|
21,815
|
|
|
Prepaid expenses and other current assets
|
3,902
|
|
6,441
|
|
|
Deferred tax asset, current portion
|
489
|
|
160
|
|
|
Total current assets
|
120,532
|
|
127,116
|
|
|
Property and equipment, net
|
8,892
|
|
10,567
|
|
|
Long-term marketable securities
|
9,990
|
|
5,008
|
|
|
Other noncurrent assets
|
2,398
|
|
2,510
|
|
|
Total assets
|
$ 141,812
|
|
$ 145,201
|
|
|
|
|
|
|
|
|
Liabilities and stockholders’ equity:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
$ 15,267
|
|
$ 14,357
|
|
|
Amounts due to related parties
|
1,785
|
|
1,350
|
|
|
Deferred revenue
|
3,660
|
|
4,237
|
|
|
Capital lease obligations
|
133
|
|
264
|
|
|
Total current liabilities
|
20,845
|
|
20,208
|
|
|
|
|
|
|
|
|
Capital lease obligations, net of current portion
|
40
|
|
171
|
|
|
Deferred revenue, net of current portion
|
348
|
|
620
|
|
|
Other long-term liabilities
|
279
|
|
372
|
|
|
Total stockholders’ equity
|
120,300
|
|
123,830
|
|
|
Total liabilities and stockholders’ equity
|
$ 141,812
|
|
$ 145,201
|
|
|
|
|
|
|
|
Contact:
|
|
|
Scott Solomon
|
|
|
Vice President
|
|
|
Sharon Merrill Associates, Inc.
|
|
|
Phone: (617) 542-5300
|
|
|
CYNO@investorrelations.com
|
|
|
Feb. 15, 2011 (Business Wire) — A.C. Moore Arts & Crafts, Inc. (NASDAQ: ACMR) (the “Company” or “A.C. Moore”) today announced that its Board of Directors is exploring strategic alternatives to enhance shareholder value including, but not limited to, a potential sale of the Company, corporate financing or capital raise. Janney Montgomery Scott LLC has been engaged to serve as the Company’s financial advisor in this process. The Company has received third party expressions of interest. However, the Company does not intend to disclose any developments regarding its exploration of strategic alternatives, unless and until its Board of Directors has approved a specific transaction. There can be no assurance that a transaction will result from this process.
The Company also reported that it ended fiscal 2010 with more than $35.0 million in cash, as forecasted during its investor conference call for third quarter fiscal 2010 results.
About A.C. Moore:
A.C. Moore is a specialty retailer of arts, crafts and floral merchandise for a wide range of customers. The Company currently serves customers through its 134 stores located in the Eastern United States and nationally via its e-commerce site, www.acmoore.com. For more information about A.C. Moore, visit its website at www.acmoore.com.
This press release contains statements that are forward-looking within the meaning of applicable federal securities laws and are based on A.C. Moore’s current expectations and assumptions as of this date. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that could cause actual results to differ from those anticipated include, but are not limited to, the outcome of the strategic alternatives process, the availability of future capital, the failure to consummate our identified strategic objectives, the effect of economic conditions, our ability to implement our business and operating initiatives to improve sales and profitability, our ability to maintain liquidity and preserve cash, our ability to comply with the terms of our credit facility, changes in the labor market and our ability to hire and retain associates and members of senior management, the impact of existing or future government regulation, execution and results of our real estate strategy, competitive pressures, customer demand and trends in the arts and crafts industry, our failure to accurately respond to inventory and merchandise requirements, the impact of unfavorable weather conditions, disruption in our operations or supply chain, changes in our relationships with suppliers, difficulties with respect to new system technologies, difficulties in implementing measures to reduce costs and expenses and improve margins, supply constraints or difficulties, the effectiveness of and changes to advertising and marketing strategies and other risks detailed in the Company’s Securities and Exchange Commission filings. A.C. Moore undertakes no obligation to update or revise any forward-looking statement whether as the result of new developments or otherwise.
A.C. Moore Arts & Crafts, Inc.
David Stern
Chief Financial and Administrative Officer
856-768-4943
FAIRFAX, Va., Feb. 15, 2011 (GLOBE NEWSWIRE) — Geeknet, Inc. (Nasdaq:GKNT), the online network for the global geek community, today announced financial results for the quarter and year ended December 31, 2010.
Total revenue for the fourth quarter of 2010 was $50.0 million compared to $32.6 million of revenue for the fourth quarter of 2009. Net income for the fourth quarter of 2010 was $4.7 million or $0.75 per diluted share compared to net income of $1.5 million or $0.25 per share, for the same period a year ago. Adjusted EBITDA for the fourth quarter of 2010 was $5.7 million, compared to adjusted EBITDA of $2.8 million for the same period a year ago. A reconciliation of net income (loss) as reported to adjusted EBITDA is included in this release.
Fourth Quarter Highlights:
- E-commerce revenue increased 60 percent to $44.7 million for the fourth quarter of 2010, compared to $27.9 million for the fourth quarter of 2009. E-commerce orders shipped increased by 72 percent in the fourth quarter of 2010 as compared with the same period last year.
- Media revenue increased 12 percent to $5.3 million for the fourth quarter of 2010, compared to $4.7 million for the fourth quarter of 2009.
- Total cash and investments at the end of the fourth quarter 2010 was $35.3 million.
“Geeknet closed 2010 with a stellar fourth quarter. ThinkGeek grew revenue by 60% and our media business demonstrated early signs of traction with our new strategy as evidence by its solid growth over last year,” said Ken Langone, Executive Chairman, Geeknet. “Our 44% growth in revenue for the full year demonstrates the strength of our community and our marketing efforts. We look forward to continued success in 2011 as we remain focused on growing top line revenue and increasing profitability.”
Revenue for 2010 grew 44% to $94.6 million, driven by a 55% increase in ThinkGeek revenue and an 11% increase in media revenue. Net loss for 2010 was $4.4 million, or $0.73 per share, compared to a net loss of $14.0 million, or $2.31 per share, for 2009. Adjusted EBITDA loss for 2010 was $1.2 million, a 64% improvement compared to adjusted EBITDA loss of $3.6 million for 2009.
Supplemental schedules of the Company’s quarterly statements of operations and operational statistics are available on the Company’s web site at http://investors.geek.net/.
A conference call and audio webcast will be held at 2:00 p.m. ET on February 15, 2011 and may be accessed by calling (877) 348-9353 or (253) 237-1159 outside the U.S., or by visiting http://investors.geek.net/. An audio replay will be available between 9:30 p.m. ET on February 15, 2011 and 11:59 p.m. ET on March 1, 2011 by calling (800) 642-1687 or (706) 645-9291, with Conference ID 39976306.
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, we also report adjusted EBITDA. Adjusted EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. We believe that adjusted EBITDA provides useful information to both management and investors and is an additional measurement which may be used to evaluate our operating performance. Our management and Board of Directors use adjusted EBITDA as part of their reporting and planning process and it is the primary measure we use to evaluate our operating performance. In addition, we have historically reported adjusted EBITDA to the investment community. We also believe that the financial analysts who regularly follow and report on us and the business sector in which we compete use adjusted EBITDA to prepare their financial performance estimates to measure our performance against other sector participants and to project our future financial results.
We define adjusted EBITDA as net income (loss) which is adjusted for interest and other income (expense) net and income taxes as well as stock-based compensation, gain on sale of assets, restructuring charges and depreciation and amortization. The method we use to produce adjusted EBITDA is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a substitute for results prepared in accordance with accounting principles generally accepted in the United States. Adjusted EBITDA, as we compute it, excludes certain expenses that we believe are not indicative of our core operating results, as well as income taxes, stock-based compensation and depreciation and amortization. We consider our core operating results to include revenue recorded in a particular period and the related expenses that are intended to directly drive operating income during that period.
The EBITDA calculation excludes interest, income taxes and depreciation and amortization by its nature. In addition, when we compute adjusted EBITDA we exclude stock-based compensation, gain on sale of assets, restructuring charges and other amounts included in the Interest income and other income (expense) net caption, as we believe that these amounts represent income and expenses that are not directly related to our core operations. Although some of the items may recur on a regular basis, management does not consider activities associated with these items as core to its operations. With respect to stock-based compensation, we recognize expenses associated with stock-based compensation that require management to make assumptions about our common stock, such as expected future stock price volatility, the anticipated duration of outstanding stock options and awards and the rate at which we recognize the corresponding stock-based compensation expense over the course of future fiscal periods. While other forms of expenses (such as cash compensation, inventory costs and real estate costs) are reasonably correlated to our underlying business and such costs are incurred principally or wholly in the particular fiscal period being reported, stock-based compensation expense is not reasonably correlated to the particular fiscal period in question, but rather is based on expected future events that have no relationship (and in certain instances, an inverse relationship) with how well we currently operate our business. Gain on sale of assets is excluded from adjusted EBITDA because such activities are not representative of our core operations. Restructuring costs are excluded from adjusted EBITDA because they represent non-cash charges which are not representative of our core operations.
About Geeknet, Inc.
Geeknet is the online network for the global geek community. Our sites include SourceForge, Slashdot, ThinkGeek, and freshmeat. We serve an audience of nearly 55 million users* each month and provide the tech-obsessed with content, culture, connections, commerce, and all the things that geeks crave. Want to learn more? Check out geek.net.
(*January 2011 Unique Visitors 54.9M. Source: Google Analytics and Omniture)
The Geeknet, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7330
Geeknet is a trademark of Geeknet, Inc. SourceForge, Slashdot, ThinkGeek, and freshmeat are trademarks of Geeknet, Inc. in the United States and other countries. All other trademarks or product names are property of their respective owners.
NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on our current expectations, and involve risks and uncertainties. Forward-looking statements contained herein include statements regarding the growth strategies and prospects for our online media and e-commerce businesses. Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including: success in designing and offering innovative online advertising programs; decreases or delays in online advertising spending, especially in light of current macroeconomic challenges and uncertainty; our effectiveness at planning and managing our e-commerce inventory; our ability to achieve and sustain higher levels of revenue; our ability to protect and defend our intellectual property rights; rapid technological and market change; unforeseen expenses that we may incur in future quarters; and competition with, and pricing pressures from larger and/or more established competitors. Investors should consult our filings with the Securities and Exchange Commission, sec.gov, including the risk factors section of our Annual Report on Form 10-K for the year ended December 31, 2009 and our quarterly report on Form 10-Q for the period ending September 30, 2010, for further information regarding these and other risks of our business. All forward-looking statements included in this press release are based upon information available to us as of the date hereof, and we do not assume any obligations to update such statements or the reasons why actual results could differ materially from those projected in such statements.
| GEEKNET, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| (In thousands) |
| (unaudited) |
|
|
December 31, 2010 |
December 31, 2009 |
|
|
| ASSETS |
|
|
|
| Current assets: |
|
|
| Cash and cash equivalents |
$ 35,333 |
$ 28,943 |
| Short-term investments, including restricted cash of $0 and $1,000, respectively |
8 |
10,408 |
| Accounts receivable, net |
5,078 |
4,299 |
| Inventories |
13,322 |
5,280 |
| Prepaid expenses and other current assets |
2,919 |
3,564 |
| Total current assets |
56,660 |
52,494 |
| Property and equipment, net |
5,114 |
2,569 |
| Other long-term assets |
4,983 |
5,088 |
| Total assets |
$ 66,757 |
$ 60,151 |
|
|
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
| Current liabilities: |
|
|
| Accounts payable |
$ 13,381 |
$ 5,763 |
| Deferred revenue |
1,836 |
928 |
| Accrued liabilities and other |
3,591 |
3,854 |
| Accrued restructuring liabilities |
— |
1,238 |
| Total current liabilities |
18,808 |
11,783 |
| Other long-term liabilities |
77 |
103 |
| Total liabilities |
18,885 |
11,886 |
|
|
|
| Stockholders’ equity: |
|
|
| Common stock |
6 |
61 |
| Treasury stock |
(622) |
(492) |
| Additional paid-in capital |
803,160 |
798,917 |
| Accumulated other comprehensive income |
10 |
13 |
| Accumulated deficit |
(754,682) |
(750,234) |
| Total stockholders’ equity |
47,872 |
48,265 |
| Total liabilities and stockholders’ equity |
$ 66,757 |
$ 60,151 |
|
|
|
| GEEKNET, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (In thousands, except per share data) |
| (unaudited) |
|
|
|
|
|
|
Three Months Ended December 31, |
Year Ended December 31, |
|
2010 |
2009 |
2010 |
2009 |
| E-commerce revenue |
$ 44,747 |
$ 27,949 |
$ 76,335 |
$ 49,091 |
| Media revenue |
5,260 |
4,685 |
18,284 |
16,486 |
| Net revenue |
50,007 |
32,634 |
94,619 |
65,577 |
|
|
|
|
|
| E-commerce cost of revenue |
34,842 |
20,336 |
62,630 |
38,151 |
| Media cost of revenue |
1,341 |
1,698 |
6,610 |
6,953 |
| Cost of revenue |
36,183 |
22,034 |
69,240 |
45,104 |
| Gross margin |
13,824 |
10,600 |
25,379 |
20,473 |
|
|
|
|
|
| Operating expenses: |
|
|
|
|
| Sales and marketing |
5,235 |
4,307 |
15,277 |
11,775 |
| Research and development |
1,370 |
2,287 |
6,148 |
8,103 |
| General and administrative |
2,436 |
2,256 |
9,551 |
8,843 |
| Amortization of intangible assets |
21 |
90 |
306 |
200 |
| (Gain) loss on sale of assets |
— |
— |
(1,391) |
1,020 |
| Restructuring |
— |
(62) |
(101) |
(62) |
| Total operating expenses |
9,062 |
8,878 |
29,790 |
29,879 |
| Operating income (loss) from continuing operations |
4,762 |
1,722 |
(4,411) |
(9,406) |
| Interest and other income (expense), net |
1 |
48 |
44 |
(4,475) |
| Income (loss) from continuing operations before income taxes |
4,763 |
1,770 |
(4,367) |
(13,881) |
| Provision (benefit) for income taxes |
(103) |
242 |
(167) |
140 |
| Income (loss) from continuing operations |
4,866 |
1,528 |
(4,200) |
(14,021) |
| Loss from discontinued operations |
(137) |
— |
(248) |
— |
| Net income (loss) |
$ 4,729 |
$ 1,528 |
$ (4,448) |
$ (14,021) |
|
|
|
|
|
| Income (loss) per share from continuing operations: |
|
|
|
|
| Basic |
$ 0.78 |
$ 0.25 |
$ (0.69) |
$ (2.31) |
| Diluted |
$ 0.77 |
$ 0.25 |
$ (0.69) |
$ (2.31) |
|
|
|
|
|
| Loss per share from discontinued operations: |
|
|
|
|
| Basic |
$ (0.02) |
$ — |
$ (0.04) |
$ — |
| Diluted |
$ (0.02) |
$ — |
$ (0.04) |
$ — |
|
|
|
|
|
| Net income (loss) per share |
|
|
|
|
| Basic |
$ 0.76 |
$ 0.25 |
$ (0.73) |
$ (2.31) |
| Diluted |
$ 0.75 |
$ 0.25 |
$ (0.73) |
$ (2.31) |
|
|
|
|
|
| Shares used in computing earnings per share: |
|
|
|
|
| Basic |
6,201 |
6,009 |
6,073 |
6,080 |
| Diluted |
6,277 |
6,073 |
6,073 |
6,080 |
|
|
|
|
|
| GEEKNET, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (In thousands, except per share data) |
| (unaudited) |
|
|
Three Months Ended December 31, |
Year Ended December 31, |
|
2010 |
2009 |
2010 |
2009 |
| Reconciliation of net income (loss) from continuing operations as
reported to adjusted EBITDA income (loss): |
|
|
|
|
|
|
|
|
|
| Net income (loss) from continuing operations – as reported |
$ 4,866 |
$ 1,528 |
$ (4,200) |
$ (14,021) |
| Reconciling items: |
|
|
|
|
| Interest and other income (expense), net |
(1) |
(48) |
(44) |
4,475 |
| Provision (benefit) for income taxes |
(103) |
242 |
(167) |
140 |
| Stock-based compensation expense included in COGS |
35 |
74 |
206 |
319 |
| Stock-based compensation expense included in Op Ex. |
267 |
568 |
2,047 |
2,332 |
| (Gain) loss on sale of assets |
— |
— |
(1,391) |
1,020 |
| Restructuring |
— |
(62) |
(101) |
(62) |
| Depreciation and amortization |
657 |
520 |
2,422 |
2,157 |
| Adjusted EBITDA income (loss) |
$ 5,721 |
$ 2,822 |
$ (1,228) |
$ (3,640) |
|
|
|
|
|
| GEEKNET, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (In thousands) |
| (unaudited) |
|
| |
Three months ended |
Year ended |
| |
December 31, |
December 31, |
| |
2010 |
2009 |
2010 |
2009 |
| |
|
|
|
|
| Cash flows from operating activities form continuing operations: |
|
|
|
|
| Net income (loss) |
$ 4,729 |
$ 1,528 |
$ (4,448) |
$ (14,021) |
| Loss from discontinued operations |
(137) |
— |
(248) |
— |
| Income (loss) from continuing operations |
4,866 |
1,528 |
(4,200) |
(14,021) |
| Adjustments to reconcile net income (loss) from continuing
operations to net cash provided by (used in) operating activities: |
|
|
|
|
| Depreciation and amortization |
595 |
520 |
2,277 |
2,157 |
| Stock-based compensation expense |
302 |
642 |
2,253 |
2,651 |
| Provision for bad debts |
— |
(51) |
— |
46 |
| Provision for excess and obsolete inventory |
(15) |
(17) |
42 |
17 |
| Provision for return for allowance |
350 |
258 |
350 |
258 |
| (Gain) loss on sale of assets |
— |
— |
(1,391) |
1,020 |
| Impairment of investments |
— |
— |
— |
4,585 |
| Non-cash restructuring |
— |
(62) |
— |
(62) |
| Changes in assets and liabilities: |
|
|
|
|
| Accounts receivable |
(1,213) |
(1,157) |
(779) |
78 |
| Inventories |
2,915 |
(395) |
(8,084) |
(2,033) |
| Prepaid expenses and other assets |
2,813 |
370 |
361 |
(471) |
| Accounts payable |
3,871 |
1,751 |
7,209 |
1,735 |
| Deferred revenue |
297 |
(727) |
908 |
(2,816) |
| Accrued liabilities and other |
629 |
158 |
(619) |
337 |
| Accrued restructuring liabilities |
— |
1,270 |
(1,238) |
858 |
| Other long-term liabilities |
(12) |
(94) |
(26) |
(66) |
| Net cash provided by (used in) operating activities from continuing operations |
15,398 |
3,994 |
(2,937) |
(5,727) |
|
|
|
|
|
| Cash flows from investing activities from continuing operations: |
|
|
|
|
| Change in restricted cash |
— |
— |
1,000 |
— |
| Purchase of property and equipment |
(331) |
(263) |
(4,191) |
(1,001) |
| Maturities or sale of marketable securities |
— |
100 |
10,207 |
659 |
| Business acquisitions, net of cash acquired |
— |
— |
(1,000) |
(2,613) |
| Proceeds from sale of intangible assets, net |
— |
— |
1,040 |
172 |
| Purchases of intangible assets |
— |
(16) |
(122) |
(122) |
| Net cash provided by (used in) investing activities from continuing operations |
(331) |
(179) |
6,934 |
(2,905) |
|
|
|
|
|
| Cash flows from financing activities from continuing operations: |
|
|
|
|
| Proceeds from issuance of common stock |
1,710 |
— |
1,962 |
259 |
| Repurchase of common stock |
(12) |
— |
(130) |
(3,195) |
| Repurchases of fractional shares |
(27) |
— |
(27) |
— |
| Net cash provided by (used in) financing activities from continuing operations |
1,671 |
— |
1,805 |
(2,936) |
| Effect of exchange rate changes on cash and cash equivalents |
— |
— |
(4) |
— |
| Cash flows from discontinued operations: |
|
|
|
|
| Net cash used in operating activities |
(20) |
— |
(48) |
— |
| Proceeds from sale of Geek.com |
640 |
— |
640 |
— |
| Net cash provided by discontinued operations |
620 |
— |
592 |
— |
| Net increase (decrease) in cash and cash equivalents |
17,358 |
3,815 |
6,390 |
(11,568) |
| Cash and cash equivalents, beginning of period |
17,975 |
25,128 |
28,943 |
40,511 |
| Cash and cash equivalents, end of period |
$ 35,333 |
$ 28,943 |
$ 35,333 |
$ 28,943 |
|
|
|
|
|
CONTACT: Investor Relations Contact:
The Blueshirt Group
Todd Friedman, todd@blueshirtgroup.com
Stacie Bosinoff, stacie@blueshirtgroup.com
Phone: (415) 217-7722
Founded in 2001, Pluristem Therapeutics is a bio-therapeutics company that lists on the NASDAQ Capital Market. The Company is dedicated to the commercialization of non-personalized (allogeneic) cell therapy products for the treatment of several severe degenerative, ischemic, and autoimmune disorders. The (PLacental eXpanded) cell products are stored off-the-shelf, ready-to-use, and require no histocompatibility matching.
Pluristem Therapeutics Inc. has made the strategic decision to work only with adult stem cells, purified from the placenta after birth, avoiding ethical and religious controversy. The placental adherent stromal cells (ASCs) are expanded in the Company’s proprietary PluriX™ 3D bioreactor system.
This system provides a 3D microenvironment that enables large-scale growth of these cells without the need for supplemental growth factors or other exogenous materials. ASCs are multipotent adult stem cells that have strong anti-inflammatory properties and can regenerate and repair damaged tissue.
PLX cells are the ASCs expanded in Pluristem’s proprietary (PluriX™) 3D bioreactor. PLX cells are immune privileged, possess immunomodulatory properties, and are expanded in vitro without showing signs of phenotypic or karyotypic changes. Pluristem Therapeutics believes that the PLX cells’ mechanism of action may be related to the secretion of cytokines and/or other potent immune modulators.
The Company’s first product, PLX-PAD, is designed to treat Peripheral Artery Disease. PLX-PAD received from the Food and Drug Administration (FDA) and the Paul Ehrlich Institute (PEI), the German competent authority in the European Union, clearance to begin a “First-In-Human” placental-derived mesenchymal-like stromal cell clinical trial.
PLX-PAD has undergone development as an unrelated donor-patient (allogeneic) product intended to treat the limb ischemia from Peripheral Artery Disease (PAD). In the United States alone, it is estimated that 8 to 12 million people suffer from limb ischemia.
Pluristem Therapeutics Inc.’s pre-clinical product line-up includes PLX-IBD for inflammatory bowel diseases; PLX-STROKE for ischemic strokes; PLX-BMT for bone marrow transplantation; and PLX-MS for multiple sclerosis.
DAQING, Heilongjiang, China, Feb. 14, 2011 /PRNewswire-Asia-FirstCall/ — China Nutrifruit Group Limited (NYSE Amex: CNGL) (“China Nutrifruit” or “the Company”), a leading producer of premium specialty fruit based products in China (“PRC”), today announced its financial results for the period ended December 31, 2010, which represents the third quarter of fiscal year 2011.
Third Quarter Fiscal Year 2011 Highlights
- Net sales increased 24.2% year-over-year to $22.1 million
- Gross profit increased 26.4% year-over-year to $10.3 million, with gross margin of 46.4%
- Operating earnings rose 34.3% year-over-year to $8.4 million, with operating margin of 37.8%
- Net income increased 34.9% year-over-year to $6.2 million, or $0.15 per diluted share
- In October 2010, the Company’s board appointed Mr. Aijun Wang as vice president of sales
- In December 2010, the Company announced that it has filed a registration statement with the Securities and Exchange Commission for a proposed offering of Taiwan Depositary Receipt (the “TDRs”). The Company plans to apply for listing the TDRs on the Taiwan Stock Exchange
“During the third fiscal quarter, sales of our fruit based products continued to exhibit strong double-digit year-over-year growth driven by increasing number of health-conscious consumers, the high quality of our products, and our diverse product offering. We reported attractive operating and net income growth of over 34%,” commented Mr. Changjun Yu, Chairman and CEO of China Nutrifruit. “Our new blackcurrant and seabuckthorn concentrate juice and glazed fruits products gained increased market share and accounted for approximately 8.5% of the total sales during the third fiscal quarter.”
Third Quarter Fiscal Year 2011 Results
Net sales for the third quarter of fiscal year 2011 increased 24.2% to $22.1 million, from $17.8 million in the same quarter of fiscal 2010. Strong sales growth during the quarter was primarily due to solid market demand driving sales of glazed fruit and concentrate pulp products and an increase in the average sales price of crab apple concentrate juice and pear concentrate pulp. In addition, the Company’s newly launched seabuckthorn and blackcurrant concentrate juice and glazed fruit products also contributed to the quarter’s sales growth, accounting for 8.5% of total sales.
In the third quarter of fiscal year 2011, net sales from concentrated juice products, which accounted for 41.4% of total net sales, were $9.2 million, up 8.9% from $8.4 million, or 47.2% of total net sales, in the same quarter of fiscal year 2010. Net sales from glazed fruit products reached $6.0 million, contributing 27.3% of net sales, up 12.8% as compared to $5.4 million, or 30.1% of total sales in the same period of prior year. Sales of concentrate pulp products and nectar were $4.9 million and $1.3 million, respectively, up 159.7% and 50.4% from $1.9 million and $0.9 million, respectively, in the same period in fiscal year 2010. Sales of fresh fruit increased 40.1% to $0.8 million, from $0.5 million in the year ago period. The Company reported no revenue from the beverage segment as it discontinued beverage operation in March 2010, following its strategic decision to focus on its high-margin premium products.
Gross profit for the third quarter of fiscal year 2011 increased 26.4% to $10.3 million from $8.1 million for the same period a year ago. Gross margin was 46.4% for the third quarter of fiscal year 2011, up from 45.7% in the year ago period. The increase in gross margin was mainly due to the increase in the gross margin of our concentrate pulp products. Gross margin on concentrate pulp products rose to 36.5% from 28.3% in the same period last fiscal quarter. Gross margin of glazed fruit products, nectar and concentrate juice were 54.2%, 67.7% and 43.7% compared to 51.9%, 69.7% and 44.4%, respectively, in the third quarter of fiscal year 2010.
In the third quarter of fiscal year 2011, selling, general, and administrative expenses remained stable at approximately $1.9 million. Selling expenses were $1.1 million, or 5.0% of net sales, up 1.6% compared to $1.09 million, or 6.1% of net sales, in the third quarter of fiscal year 2010. As a percentage of net sales, decline in selling expenses was due to the Company’s well established relationships with existing distributors who continue to place repeat orders with higher volume, resulting in lower sales related travel expenses. In addition, the Company incurred no selling expenses related to beverage products in the third quarter of fiscal year 2011.
General and administrative (“G&A”) expenses were $807,231, or 3.6% of net sales, down 1.1% from $816,069, or 4.6% of net sales a year ago. The decrease was mainly attributable to cost-control measures implemented to improve operational efficiency.
Operating earnings in the third quarter of fiscal year 2011 were $8.4 million compared to $6.2 million in the comparable period last fiscal year. Operating margin for the quarter was 37.8%, as compared to 34.9 % a year ago.
Provision for income taxes for the quarter was $2.1 million compared to $1.6 million a year ago.
Net income in the third quarter of fiscal year 2011 was $6.2 million, or $0.15 per diluted share, up 34.9% as compared to $4.6 million, or $0.11 per diluted share, a year ago. The calculation of diluted earnings per share for the third quarter of fiscal 2011 is based on 40.4 million weighted average shares outstanding compared to 40.2 million in the same quarter of fiscal 2010.
Nine Months Fiscal Year 2011 Results
For the nine months ended December 31, 2010, net sales were $55.0 million, up 18.2% from $46.5 million in the nine months ended December 31, 2009. Net sales from concentrate juice products, which accounted for 48.5% of total net sales in the first nine months of fiscal 2011, were $26.7 million, up 32.7% from $20.1 million during the comparable period a year ago. Among the Company’s concentrated juice products, sales of crab apple and raspberry increased 96.2% and 35.1%, respectively. Net sales from glazed fruit, which accounted for 21.2% of net sales, were $11.6 million, up 14.1% from $10.2 million in the same period a year ago. Sales of concentrate pulp and nectar, which accounted for 17.0% and 9.2%, were $9.4 million and $5.1 million, up 46.9% and 5.1% from $6.4 million and $4.8 million in the same period a year ago, respectively. The Company did not record sales from beverages since it ceased the production of beverages and focus on its core high-margin products in March 2010.
Gross profit increased 16.5% to $25.4 million from $21.8 million a year ago. Gross margin was 46.1% in the first nine months of fiscal year 2011 compared to 46.8% in the comparable period a year ago. Income from operations was $20.5 million, up 21.6% from $16.8 million last year. Net income for the nine months ended December 31, 2010 was $15.2 million, or $0.38 per diluted share, compared to $12.5 million, or $0.33 per diluted share in the same period of fiscal 2010. The calculation of diluted earnings per share for the first nine months of fiscal 2011 is based on 40.4 million weighted average shares outstanding compared to 37.5 million in the comparable period of fiscal 2010.
Financial Condition
As of December 31, 2010, China Nutrifruit had $24.3 million in cash and cash equivalents, $4.2 million in current liabilities with no long term debt and working capital of $56.0 million. Shareholders’ equity was $82.9 million as of December 31, 2010, up from $65.8 million as of March 31, 2010. Net cash used in operating activities was $3.8 million, mainly due to $10.0 million in advance payment for the construction of the Company’s new fruit and vegetable powder facility in Daqing, which is scheduled to begin operations in June 2011 and an increase in inventory of $15.7 million as the Company has accumulated a large amount of inventories since the start of the production season in July that will be sold throughout the year. These outflows of cash were partially offset by the Company’s net earnings and collection of trade receivables.
Recent Events
On January 12, 2011, at the Company’s annual meeting of stockholders, stockholders re-elected Changjun Yu, Jizeng Zhang, William Haus, Chun Wai Chan and Jingfu Li to the board of directors. China Nutrifruit’s shareholders approved the adoption of the Company’s 2010 Equity Incentive Plan and also ratified the appointment of HLB Hodgson Impey Cheng as the Company’s independent registered public accounting firm for the fiscal year ending March 31, 2011.
On January 18, 2011, the Company announced that due to difficult weather conditions in Daqing, it has decided to delay the final equipment installation phase of its new fruit and vegetable powder production facility until March 2011.
On January 24, 2011, the Company announced that it has entered into a supply contract with Doehler Food and Beverage Ingredients (Rizhao) Co., Ltd. (“Doehler Rizhao”) to supply 1,500 tons of its fruit concentrate products.
On February 1, 2011, the Company announced that it has entered into a supply contract with Cargill Trading (Shanghai) Ltd. (“Cargill Shanghai”) to supply 120 tons of its fruit concentrate products.
Business Outlook
China Nutrifruit recently announced that due to difficult weather conditions, the Company decided to delay the final phase of equipment installation at its new fruit and vegetable powder facility until March 2011 and expects to commence trial production in June 2011. Despite the delay in the production schedule of new fruit and vegetable powder products, management expects no material impact to the Company’s fiscal year 2011 financial results. The Company expects higher average selling prices of its products and increased production of the new glazed fruit products, including seabuckthorn and blackcurrant, coupled with strong demand across all product categories in the last quarter of the fiscal year, to offset the loss in expected revenue and net income from the new fruit and vegetable powder line for fiscal year 2011. Therefore, the Company reaffirms its financial guidance for fiscal year 2011 for revenue in the range of $90 million to $95 million and net income of $22 million to $23 million.
“The fourth fiscal quarter is typically our strongest quarter and we anticipate strong growth in sales volume driven by healthy consumer demand in the fourth quarter of fiscal 2011. We have seen a surge in orders from distributors during the Chinese New Year combined with rise in average selling prices and therefore remain confident in our ability to meet our revenue and net income guidance for fiscal 2011,” said Mr. Yu. “We recently entered into new supply contracts with Doehler Rizhao and Cargill Shanghai to supply our fruit concentrate juice products. Through Cargill Shanghai, our products will be distributed in Mongolia. We received positive feedback from these customers and remain optimistic that such small orders will lead to large scale supply contracts. Looking forward, we expect to further diversify our domestic customer base and add new international customers. Meanwhile, we are preparing to execute the final equipment installation stage of our fruit and vegetable powder product line and commence trial production in June 2011. ”
Conference Call Information
Management will conduct a conference call at 9:00 a.m. Eastern Time on Monday, February 14, 2011 to discuss its third quarter fiscal 2011 results. To participate in the conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: (866) 759-2078. International callers should dial +1-706-643-0585. The conference ID number for the call is 43653814.
If you are unable to participate in the call at this time, a replay will be available on Monday, February 14, 2011 at 12:00 noon Eastern Time, through Monday, February 28, 2011. To access the replay, dial 800-642-1687. International callers should dial +1-706-645-9291. The conference ID number for the replay is 43653814.
About China Nutrifruit Group Limited
Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. The Company’s processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 17 provinces in China. For more information, please visit http://www.chinanutrifruit.com .
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act””). Such statements include, among others, those concerning our new products, new fruit and vegetable powder manufacturing facility, and its expected impact on the Company’s business and financial performance, our expected financial performance in FY2011, our ability to win large scale supply contracts, expand customer base and add international customers, and strategic and operational plans, our plans to apply for listing the TDRs on the Taiwan Stock Exchange and the TDR offering, our expectations regarding the market for our existing products and new products, our expectations regarding the continued growth of the specialty fruit market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words “believe,” “expect,” “anticipate,” “project,” “targets,” “optimistic,” “intend,” “aim,” “will” or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended March 31, 2010, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
–Financial Tables Follow –
|
CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Stated in US Dollars)
|
|
|
Three months ended
December 31,
|
Nine months ended
December 31,
|
|
|
2010
|
2009
|
2010
|
2009
|
|
|
|
|
|
|
|
|
Net sales
|
$ 22,136,504
|
$ 17,816,916
|
$ 54,955,885
|
$ 46,502,988
|
|
|
|
|
|
|
|
|
Cost of sales
|
(11,856,020)
|
(9,680,959)
|
(29,600,110)
|
(24,734,449)
|
|
|
|
|
|
|
|
|
Gross profit
|
10,280,484
|
8,135,957
|
25,355,775
|
21,768,539
|
|
|
|
|
|
|
|
|
Selling expenses
|
(1,111,697)
|
(1,094,111)
|
(2,369,675)
|
(2,592,363)
|
|
|
General and administrative expenses
|
(807,231)
|
(816,069)
|
(2,503,801)
|
(2,333,033)
|
|
|
|
|
|
|
|
|
Operating earnings
|
8,361,556
|
6,225,777
|
20,482,299
|
16,843,143
|
|
|
|
|
|
|
|
|
Other income (expenses)
|
|
|
|
|
|
|
Other income
|
8,988
|
9,204
|
57,009
|
48,575
|
|
|
Total other income (expenses)
|
8,988
|
9,204
|
57,009
|
48,575
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
8,370,544
|
6,234,981
|
20,539,308
|
16,891,718
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
(2,131,289)
|
(1,609,004)
|
(5,317,931)
|
(4,379,594)
|
|
|
|
|
|
|
|
|
Net earnings
|
6,239,255
|
4,625,977
|
15,221,377
|
12,512,124
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
Foreign currency translation
|
1,092,793
|
(39,255)
|
2,668,212
|
(19,452)
|
|
|
Comprehensive income
|
$ 7,332,048
|
$ 4,586,722
|
$ 17,889,589
|
$ 12,492,672
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
|
|
Basic
|
$ 0.16
|
$ 0.12
|
$ 0.40
|
$ 0.34
|
|
|
|
|
|
|
|
|
Diluted
|
$ 0.15
|
$ 0.11
|
$ 0.38
|
$ 0.33
|
|
|
|
|
|
|
|
|
Weighted average number of common stock outstanding
|
|
|
|
|
|
|
Basic
|
36,762,896
|
36,125,754
|
36,703,018
|
36,125,754
|
|
|
|
|
|
|
|
|
Diluted
|
40,375,048
|
40,167,345
|
40,350,605
|
37,507,917
|
|
|
|
|
|
|
|
|
|
CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Stated in US Dollars)
|
|
|
December 31,
|
|
March 31,
|
|
|
2010
|
|
2010
|
|
|
ASSETS
|
(unaudited)
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$ 24,336,712
|
|
$ 35,994,443
|
|
|
Proceeds from private placement held in escrow account
|
–
|
|
931,630
|
|
|
Trade receivables, net of allowance
|
5,535,909
|
|
11,047,846
|
|
|
Inventories, net
|
20,138,578
|
|
4,179,910
|
|
|
Prepayments and deposits
|
10,164,077
|
|
–
|
|
|
Other current assets
|
1,512
|
|
116,196
|
|
|
Total current assets
|
60,176,788
|
|
52,270,025
|
|
|
Property and equipment, net
|
20,644,612
|
|
17,066,907
|
|
|
Construction in progress
|
5,152,212
|
|
–
|
|
|
Deferred tax assets
|
950,652
|
|
1,068,878
|
|
|
Land use rights, net
|
187,730
|
|
185,686
|
|
|
Total assets
|
$ 87,111,994
|
|
$ 70,591,496
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS‘ equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Other payables and accrued expenses
|
$ 1,768,965
|
|
$ 2,379,246
|
|
|
Trade payables
|
327,535
|
|
87,954
|
|
|
Income taxes payable
|
2,107,673
|
|
2,296,513
|
|
|
Total current liabilities
|
4,204,173
|
|
4,763,713
|
|
|
TOTAL LIABILITIES
|
4,204,173
|
|
4,763,713
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity
|
|
|
|
|
|
Series A Preferred stock
|
|
|
|
|
|
Authorized: 5,000,000 shares, par value $0.001
|
|
|
|
|
|
Issued and outstanding: 342,983 shares as at December 31, 2010; (365,109 as at March 31, 2010)
|
343
|
|
365
|
|
|
Common stock
|
|
|
|
|
|
Authorized: 120,000,000 shares, par value $0.001
|
|
|
|
|
|
Issued and outstanding: 36,794,532 shares as at December 31, 2010; (36,573,272 shares as at March 31, 2010)
|
36,794
|
|
36,573
|
|
|
Additional paid-in-capital
|
36,492,675
|
|
36,492,875
|
|
|
Statutory reserves – restricted
|
6,850,422
|
|
4,564,345
|
|
|
Accumulated other comprehensive income
|
3,108,926
|
|
440,714
|
|
|
Retained earnings
|
36,418,661
|
|
24,292,911
|
|
|
TOTAL SHAREHOLDERS‘ EQUITY
|
82,907,821
|
|
65,827,783
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS‘ EQUITY
|
$ 87,111,994
|
|
$ 70,591,496
|
|
|
|
|
|
|
|
|
CHINA NUTRIFRUIT GROUP LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Stated in US Dollars)
|
|
|
|
Nine months ended
December 31,
|
|
|
|
|
2010
|
2009
|
|
|
Operating activities:
|
|
|
|
|
|
|
Net earnings
|
|
|
$ 15,221,377
|
$ 12,512,124
|
|
|
Adjustments to reconcile net earnings to net cash used in operating activities
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
1,489,507
|
1,120,793
|
|
|
Benefit for deferred income taxes
|
|
|
117,392
|
164,934
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Trade receivables, net
|
|
|
5,644,090
|
3,149,316
|
|
|
Inventories
|
|
|
(15,705,832)
|
(10,010,662)
|
|
|
Prepayments and deposits
|
|
|
(10,025,807)
|
291,788
|
|
|
Other current assets
|
|
|
114,703
|
(1,462)
|
|
|
Trade payables
|
|
|
232,288
|
247,371
|
|
|
Income taxes payable
|
|
|
(218,770)
|
136,031
|
|
|
Other payables and accrued expenses
|
|
|
(629,515)
|
(1,908,952)
|
|
|
Net cash (used in) provided by operating activities
|
|
|
(3,760,567)
|
5,701,281
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(4,333,519)
|
(2,577,984)
|
|
|
Addition to construction in progress
|
|
|
(5,084,541)
|
–
|
|
|
Net cash used in investing activities
|
|
|
(9,418,060)
|
(2,577,984)
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
Proceeds from issuance of preferred stocks
|
|
|
–
|
12,006,646
|
|
|
Proceeds from issuance of warrants
|
|
|
–
|
1,302,354
|
|
|
Cost of raising capital
|
|
|
–
|
(1,094,047)
|
|
|
Dividend paid
|
|
|
(809,550)
|
–
|
|
|
Proceeds from private placement held in escrow account
|
|
|
931,630
|
–
|
|
|
Net cash provided by financing activities
|
|
|
122,080
|
12,214,953
|
|
|
|
|
|
|
|
|
(Decrease) Increase in cash and cash equivalents
|
|
|
(13,056,547)
|
15,338,250
|
|
|
|
|
|
|
|
|
Effect of exchange rate on cash and cash equivalents
|
|
|
1,398,816
|
(39,570)
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at beginning of the period
|
|
|
35,994,443
|
4,768,542
|
|
|
|
|
|
|
|
|
Cash and cash equivalents and proceeds from private placement held in escrow account at end of the period
|
|
|
$ 24,336,712
|
$ 20,067,222
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flows information:
|
|
|
|
|
|
|
Cash paid for:
|
|
|
|
|
|
|
Income taxes
|
|
|
$ 5,418,475
|
$ 4,078,629
|
|
|
Supplemental disclosure of non-cash information:
|
|
|
|
|
|
|
Issuance of warrants
|
|
|
$ –
|
$ 367,156
|
|
|
Purchases of property and equipment
|
|
|
$ –
|
$ 160,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company Contact:
|
Investor Relations Contact:
|
|
|
Mr. Colman Cheng, Chief Financial Officer
|
Mr. Crocker Coulson, President
|
|
|
China Nutrifruit Group Limited
|
CCG Investor Relations
|
|
|
Tel：+ 852 9039 8111
|
Tel: +1-646-213-1915 (NY office)
|
|
|
Email: zsj@chinanutrifruit.com
|
Email: crocker.coulson@ccgir.com
|
|
|
Website: www.chinanutrifruit.com
|
Website: www.ccgirasia.com
|
|
|
|
|
|
Elaine Ketchmere, Partner
|
|
|
Email: elaine.ketchmere@ccgir.com
|
|
|
Tel: +1-310-954-1345 (LA office)
|
|
|
|
BARCELONA, SPAIN — (Marketwire) — 02/14/11 — Procera® Networks Inc. (NYSE Amex: PKT), the Intelligent Policy Enforcement (IPE) company, today announced the launch of the next generation PL 10000 series at Mobile World Congress in Barcelona. The new PL10000 series ships with flow processing line cards that boost capacity to an impressive 120 Gbps per chassis in actual deployment configuration with traffic classification and policy enforcement capabilities enabled.
“Our goal is to maximize performance,” said Alexander Haväng, CTO of Procera Networks. “Similar to our IPv6 announcement a few weeks ago, this reflects our leadership position in the technological evolution as we respond to customer requests with innovation.”
Scalable subscriber count is as crucial as speed for mobile operators in today’s social networking society that drives a user behavior with more and longer user sessions, thus increasing the number of concurrent users. Supporting subscriber growth and the changing user behavior is critical to mobile operators who more and more are relying on data services as the primary revenue contributor.
The PacketLogic PL10014 scales to 10 million subscribers in a single chassis. Multiple chassis can be clustered for higher performance, and is supported by PacketLogic’s pertinent and non-disruptive support for asymmetric traffic management and bi-directional traffic identification over multiple links and even multiple PacketLogic systems.
Existing PL10000 customers can upgrade their chassis with the new flow processing line cards to increase capacity to the performance levels above.
The new PL10000 series is generally available in this quarter (11Q1). Procera is exhibiting in Hall 2 (#2A86) at the Mobile World Congress where the new PacketLogic products are being demonstrated.
Procera also launched the world’s fastest Intelligent Policy Enforcement appliance. The PL8820 delivers a remarkable 30 Gbps capacity in a 2RU form factor and announced Technology Alliance with F5 Networks to deliver highly scalable traffic management for mobile operators.
About Procera Networks Inc.
Procera Networks Inc. delivers Intelligent Policy Enforcement (IPE) solutions, leveraging advanced Deep Packet Inspection (DPI) technology. This enables carriers, services providers and higher education institutions to improve the quality and lifetime of their networks, better monetize their infrastructure investments, control hazards, and create attractive services for their users by making qualified business decisions based on granular user and traffic intelligence. Procera’s core product suite, the PacketLogic line of platforms, is an engine that drives the PCC (Policy and Charging Control) ecosystem, by enforcing advanced network and service policies. PacketLogic is deployed at more than 600 customers who value the unparalleled accuracy and high-end performance of the PacketLogic solution. Founded in 2002, Procera (NYSE Amex: PKT) is based in Silicon Valley and has offices around the globe. More information is available at www.proceranetworks.com.
Safe Harbor Statement: This press release contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 (the “Act”). In particular, when used in this press release, the words “plan,” “confident that,” “believe,” “scheduled,” “expect,” or “intend to,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, the ability of Procera to commercialize the applicable technology and introduce products and the acceptance of those products by the market, the ability of resellers to sell the Procera products, market conditions, the general acceptance of the Company’s products and technologies, competitive factors, timing, and other risks described in the Company’s reports and filings with the SEC from time to time.
Procera Networks is a registered trademark, and PacketLogic and DRDL are trademarks of Procera Networks, Inc. All rights reserved. All other products or brands mentioned are trademarks and/or service marks of their respective owners.
Add to Digg Bookmark with del.icio.us Add to Newsvine
Press Contact
Diana Loredo
Procera Networks
1-408-890-7039
diana.loredo@proceranetworks.com
Investor Relations Contact
Charles Messman
Todd Kehrli
MKR Group Inc.
323-468-2300
pkt@mkr-group.com
Feb. 14, 2011 (Business Wire) — Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW), a leading global provider of air cargo assets and outsourced aircraft operating services and solutions, today announced significantly higher fourth-quarter and record full-year 2010 earnings. Adjusted net income in the fourth quarter jumped 23% to $41.4 million, or $1.58 per diluted share, completing a year in which adjusted net earnings soared 102% to a record $150.0 million, or $5.75 per share.
On a reported basis, fourth-quarter net income rose 47% to $41.6 million, or $1.58 per diluted share. Full-year reported net income increased 82% to $141.8 million, or $5.44 per share.
“2010 was an exciting year for the Company and for commercial airfreight demand,” said William J. Flynn, President and Chief Executive Officer of AAWW. “Our revenues increased 26% and our net income grew sharply, due to strong airfreight demand, tight supply of wide-body, long-haul freighter aircraft, and our effectiveness in executing our business model.
“In driving our earnings to a new record, we capitalized on our market leadership and on the global scale and scope of our operations to grow our core, long-term ACMI business. We also capitalized on very profitable market opportunities in our military and commercial charter businesses. And we started a new, non-asset-intensive CMI business, the ongoing expansion of which will complement revenues and earnings generated by the growth of our fleet over the next several years.”
Fourth-Quarter and Full-Year Results
Reported and adjusted net income for the three months ended December 31, 2010, was achieved on revenues of $359.7 million. Solid operating and financial results for the quarter compared with net income of $28.3 million, or $1.17 per diluted share, on revenues of $321.6 million for the three months ended December 31, 2009.
Reported and adjusted net income for the year ended December 31, 2010, reflected revenues of $1.34 billion. In 2009, AAWW’s net income totaled $77.8 million, or $3.56 per diluted share, on revenues of $1.06 billion.
Pretax adjustments to earnings in 2010 included a net expense of $16.1 million for legal settlements, partly offset by an $8.8 million litigation settlement receipt and a gain of $3.6 million on disposal of aircraft assets. Pretax adjustments to earnings in 2009 included $10.0 million for the effective early termination of a contract, a non-cash special charge of $8.2 million related to 747-200 freighter assets, $2.7 million for a gain on the early extinguishment of debt, and a $1.0 million gain on the disposal of aircraft assets.
Reported and adjusted results for the full year of 2010 benefited by $0.69 per diluted share from a surge in military charter activity during the first two quarters of 2010 that related to the movement of mine-resistant, ambush-protected, all-terrain vehicles (M-ATVs) to Afghanistan on premium-rate, one-way 747-400 freighter aircraft flights.
Heading into the fourth quarter, AAWW reallocated two 747-400F aircraft from charter operations into the more predictable, core ACMI business, following new contracts with Panalpina, a leading global freight forwarder, and TNT Express, a major international express package provider. Reflecting encouraging demand and improved yields for airfreight, ACMI customers continued to fly above their minimum contractual block hours during the latest quarter, averaging nearly 7% above minimums for the period and 8% for the full year.
ACMI results during the quarter also benefited from the second full quarter of outsourced, passenger-CMI service for SonAir, using two customer-owned 747-400 aircraft, and the ramp-up of CMI flying for Boeing, with all four of Boeing’s modified 747-400 Dreamlifter aircraft now on the Company’s operating certificate. Each of these opportunities is expected to have a tangible impact on the Company’s results beginning in 2011.
Increased volumes and block-hour rates in the ACMI business more than offset a reduction in AMC Charter contribution compared with the fourth quarter of 2009, following an anticipated moderation in demand for U.S. military activity in Afghanistan. In Commercial Charter, improved block-hour rates offset a modest reduction in block-hour volumes. Improved Commercial Charter rates compared with the fourth quarter of 2009 reflected continued strong demand for charters in Asian and Latin American markets.
Outlook
“We expect to report strong earnings in 2011, with fully diluted earnings in excess of $5.30 per share,” said Mr. Flynn.
“We anticipate steadily improving results throughout the year, and our guidance includes our projection that we will receive and place into service three 747-8Fs from Boeing in the fourth quarter of 2011. We continue to discuss the proposed delivery schedule with Boeing, and uncertainty surrounding the timing of our deliveries remains.”
AAWW expects that airfreight volumes will continue to grow from record levels in 2010, and that demand growth in the high-density Asian trade lanes that are important to the Company’s ACMI and Commercial Charter customers will continue to outpace global demand growth in 2011 and well into the future.
Shipments of high-tech products, pharmaceuticals, automotive parts used in global manufacturing, as well as inventory replenishment and just-in-time inventory management practices by manufacturers and retailers, are contributing to the strength in demand for airfreight. Tight supply in the wide-body, long-haul, heavy-freighter space continues to support rates and load factors.
“To address customer demand and bridge our capacity needs, we have entered into leases for two 747-400 Boeing Converted Freighters for an average of approximately three and a half years,” Mr. Flynn added. “We expect to deploy these aircraft in our military and commercial charter businesses when they enter service during the second quarter of 2011.
“We continue to see strong market demand for our high-payload, fuel-efficient 747-400 aircraft. Twenty of our now 24 747-400 freighters will be in ACMI in late March when we expand our existing express network ACMI service for DHL Express to eight aircraft from six, as previously announced.”
AAWW also continues to profitably deploy its 747-200 freighter assets. Demand and block-hour rates in the Company’s AMC Charter business in 2011 are expected to moderate from the strong levels seen in the first half of 2010, with expected AMC demand this year totaling approximately 17,000 block hours. The Company expects to benefit from continuing demand and tightness of supply in Commercial Charter, and from earnings contributions generated by passenger-CMI service for SonAir and the further ramp-up of Dreamlifter-CMI service for Boeing.
“Our record earnings in 2010 and the strong level of our expected earnings in 2011 reflect the strategic actions we have taken to transform our business, reduce our commercial and operational risk, increase our sustainable core earnings, improve the quality of our cash flows, and de-lever our balance sheet,” Mr. Flynn noted.
“During the past several years, as we have aggressively managed and modernized our fleet, transformed our scheduled service business to express network ACMI, and relentlessly reduced our costs, we grew our pretax earnings to a range of $94 million to $133 million during 2005 to 2009.
“Now we are in a period of transformative growth, with a balance sheet that is well-positioned to fund that growth. We delivered in excess of $220 million in pretax earnings in 2010, and expect to do so again in 2011.
“We continue to execute on our initiatives to grow our fleet with next-generation 747-8 freighters; further ramp up our CMI service for SonAir, Boeing and other potential new customers; and capitalize on our core competencies and market leadership in other ways. We expect to drive our revenues and earnings to levels significantly higher than those in 2010 and 2011.”
Conference Call
Management will host a conference call to discuss AAWW’s fourth-quarter and full-year 2010 financial and operating results at 11:00 a.m. Eastern Time on Monday, February 14, 2011.
Interested parties are invited to listen to the call live over the Internet at www.atlasair.com (click on “Investor Information”, click on “Presentations” and on the link to the fourth-quarter call) or at the following Web address:
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=67423&eventID=3727046
Slides supplementing management’s presentation may be downloaded from the “Presentations” section of AAWW’s Web site prior to the conference call.
For those unable to listen to the live call, a replay will be available on the above Web sites following the call. A replay will also be available through February 21 by dialing (800) 642-1687 (domestic) and (706) 645-9291 (international) and using Access Code 42822600#.
4Q10 Performance versus 4Q09
Revenues, operating expenses, and operating statistics in the fourth quarter and full year of 2010 reflect the consolidation of GSS, for financial reporting purposes, that began on April 8, 2009. As a result, block hours and associated block-hour revenues generated by aircraft supporting GSS since that date have been included in ACMI operations rather than in the previously reported Dry Leasing segment.
Operating revenues totaled $359.7 million in the fourth quarter of 2010, an increase of $38.1 million, or 12%, compared with the year-earlier period, driven primarily by stronger ACMI volumes as well as stronger ACMI and Commercial Charter revenue per block hour.
Total block hours increased 11% (35,029 block hours versus 31,480) compared with the fourth quarter of 2009. Average operating aircraft, excluding Dry Leasing aircraft, increased 10% (29.4 compared with 26.8), reflecting the addition of customer-owned CMI passenger and freighter 747-400 aircraft to the Company’s operating certificate. Average utilization of operating aircraft, excluding Dry Leasing aircraft, totaled approximately 13.0 hours per aircraft per day during the quarter, up 1.6% compared with 12.8 hours in the fourth quarter of 2009, due to a substantial increase in flying activity by ACMI customers compared with the fourth quarter of 2009.
In ACMI, revenues of $159.9 million increased $36.6 million, or 30%, driven by an increase in block-hour volumes (25,952 versus 21,902) and average ACMI revenue per block hour ($6,163 versus $5,629). Higher ACMI block-hour volumes largely reflected the continuing improvement in airfreight demand during the quarter, which led ACMI customers to fly above contractual minimums, as well as new ACMI contract flying for Panalpina and TNT, CMI passenger service for SonAir, and CMI Dreamlifter service for Boeing. Revenue per block hour during the quarter primarily reflected an increase in higher-yielding ACMI flying compared with the fourth quarter of 2009.
For the quarter, an average of 21.0 aircraft (19.2 Boeing 747-400s, 0.3 Boeing 747-200s, and 1.5 CMI aircraft) supported the Company’s ACMI operations, compared with an average of 17.4 aircraft (17.3 Boeing 747-400s, 0.1 Boeing 747-200s, and zero CMI aircraft) in the fourth quarter of 2009.
AMC Charter revenues of $85.7 million decreased $6.1 million, or 7%, in the latest quarter, due to a reduction in block-hour volumes (4,356 block hours versus 4,587) and a slight reduction in block-hour rates ($19,669 versus $20,006) reflecting a moderation in demand to support U.S. military activity in Afghanistan.
An average of 4.3 aircraft (0.8 Boeing 747-400s and 3.5 Boeing 747-200s) supported the Company’s AMC Charter operations during the quarter, compared with an average of 5.1 aircraft (1.7 Boeing 747-400s and 3.4 Boeing 747-200s) in the fourth quarter of 2009.
In Commercial Charter, revenues of $108.9 million increased $6.7 million, or 7%, during the quarter. Revenues were driven by an increase in block-hour rates ($23,990 versus $21,095), partially offset by a slight reduction in block-hour volumes. Block-hour rates during the quarter reflected continued strength in demand for airfreight out of Asia compared with the fourth quarter of 2009, coupled with a tight supply in global wide-body freighter capacity.
For the quarter, an average of 4.1 aircraft (1.9 Boeing 747-400s and 2.2 Boeing 747-200s) supported the Company’s Commercial Charter operations, compared with an average of 4.3 aircraft (3.0 Boeing 747-400s and 1.3 Boeing 747-200s) in the fourth quarter of 2009.
Dry Leasing revenues of $1.8 million in the fourth quarter of 2010 were $1.1 million, or 175%, higher than in the fourth quarter of 2009, primarily due to an increase in revenue from the lease of a 757-200F acquired in the first quarter of 2010 and spare engine leases outstanding during the quarter.
Operating Expenses
Operating expenses in the fourth quarter of 2010 totaled $298.2 million, an increase of $28.8 million, or 11%, compared with the same quarter in 2009. The increase was largely due to the company’s decision to continue to invest in its 747-200 fleet to meet anticipated levels of demand in 2011 as well as an increase in block-hour volumes, partly offset by Continuous Improvement achievements focused on cost savings and productivity enhancements.
Aircraft fuel expense of $77.9 million increased $5.6 million, or 8%, during the quarter, reflecting an increase in fuel prices compared with the fourth quarter of 2009.
Labor expenses of $60.5 million increased $2.1 million, or 4%, compared with the 2009 fourth quarter. Labor expenses during the quarter were primarily driven by the increase in block-hour volumes.
Maintenance expense of $58.1 million increased $18.7 million, or 47%, during the quarter, primarily due to an expense of approximately $17.6 million to perform maintenance on the company’s 747-200 freighters to meet anticipated levels of commercial and military charter market demand in 2011.
Heavy maintenance activity during the quarter included one 747-400 D Check and one 747-200 D Check compared with one 747-400 D Check, two 747-400 C Checks and four 747-200 C Checks in the fourth quarter of 2009. In addition, there were 11 engine overhauls during the period compared with three in the fourth quarter of 2009.
Ground handling and landing fees of $20.2 million during the quarter were $3.4 million, or 20%, higher than in the fourth quarter of 2009, primarily due to the increase in flying to more costly locations.
Travel expense of $10.0 million during the quarter was $2.7 million, or 38%, higher than during the fourth quarter of 2009, reflecting an increase in crew travel related to higher block-hour volumes and an increase in travel-related costs.
Other operating expenses totaled $23.7 million during the quarter, an increase of $3.1 million, or 15%, versus the fourth quarter of 2009, primarily due to an increase in outside services.
Net Interest and Other Non-Operating Expenses
Net interest income totaled $0.8 million during the quarter, an improvement of $7.2 million compared with the fourth quarter of 2009, reflecting higher levels of interest income and capitalized interest as well as a lower level of outstanding debt.
Interest income during the quarter benefited from the Company’s long-term investments in Pass-through Trust Certificates that relate to Enhanced Equipment Trust Certificates (EETCs) issued by the Company to finance 12 of the Company’s 747-400 freighter aircraft.
Income Taxes
Fourth-quarter results included an income tax expense of $19.8 million compared with an income tax expense of $18.0 million in the fourth quarter of 2009, which resulted in an effective income tax rate of 31.7% versus a rate of 39.0%.
The difference between the effective rate and the statutory rate for the three months ended December 31, 2010, was primarily attributable to a reduction in the effective state income tax rate. The reduced rate resulted from tax planning that decreased the apportionment of taxable income to certain states. For the three-month period ended December 31, 2009, the effective tax rate differed from the statutory rate primarily due to the non-deductibility of certain items for tax purposes.
Cash and Cash Equivalents
At December 31, 2010, AAWW’s cash, cash equivalents and short-term investments totaled $595.1 million, compared with $636.3 million at December 31, 2009.
Operating activities generated $280.5 million of cash during the year ended December 31, 2010, partially offsetting $162.0 million of net cash used for investing activities and $143.4 million of net cash used for financing activities.
Outstanding Debt
At December 31, 2010, AAWW’s balance sheet debt totaled $487.2 million, including the impact of $57.0 million of unamortized discount.
The face value of AAWW’s debt at December 31, 2010, totaled $544.2 million, compared with $627.3 million on December 31, 2009.
Non-GAAP Financial Measures
EBITDAR, as adjusted for gains on aircraft sales, totaled $109.2 million in the fourth quarter of 2010 compared with $106.8 million in the fourth quarter of 2009. For the full year, EBITDAR, as adjusted for gains on aircraft sales and net expense for legal settlements, totaled $429.4 million compared with $341.4 million in 2009.
EBITDA, as adjusted for gains on asset sales, totaled $69.7 million in the latest reporting period compared with $68.9 million in the fourth quarter of 2009. EBITDA, as adjusted for gains on aircraft sales and net expense for legal settlements, for the full year was $274.7 million compared with $190.3 million for the prior-year period.
About Non-GAAP Financial Measures
To supplement AAWW’s financial statements presented in accordance with U.S. GAAP, AAWW presents certain non-GAAP financial measures to assist in the evaluation of the performance of its business. These non-GAAP measures include Direct Contribution as well as adjusted net income; EBITDAR, as adjusted; and EBITDA, as adjusted, which exclude gains on asset sales, early termination of debt, consolidation of a subsidiary, net expense for legal settlements, and a special charge.
AAWW’s management uses these non-GAAP financial measures in assessing the performance of the Company’s ongoing operations and liquidity and in planning and forecasting future periods. The Company believes that these adjusted measures provide meaningful information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance.
About Atlas Air Worldwide Holdings, Inc.:
AAWW is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through Atlas and Polar, AAWW operates the world’s largest fleet of Boeing 747 freighter aircraft.
Atlas, Titan and Polar offer a range of air cargo and aircraft operating solutions that include ACMI aircraft leasing – in which customers receive a dedicated aircraft, crew, maintenance and insurance on a long-term lease basis; CMI service, for customers that provide their own aircraft; express network and scheduled air cargo service; military charters; commercial cargo charters; and dry leasing of aircraft and engines.
AAWW’s press releases, SEC filings and other information can be accessed through the Company’s home page, www.atlasair.com.
All references to net income refer to net income attributable to common stockholders.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect AAWW’s current views with respect to certain current and future events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of AAWW and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; labor costs and relations; financing costs; the cost and availability of war risk insurance; our ability to maintain adequate internal controls over financial reporting; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in AAWW’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the Annual Report on Form 10-K filed by AAWW with the Securities and Exchange Commission on February 24, 2010. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, AAWW is not providing guidance or estimates regarding its anticipated business and financial performance for 2011 or thereafter.
AAWW assumes no obligation to update such statements contained in this release to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law.
| Atlas Air Worldwide Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
|
|
December 31, 2010 |
|
December 31, 2009 |
|
December 31, 2010 |
|
December 31, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
159,936 |
|
|
$ |
123,288 |
|
|
$ |
543,853 |
|
|
$ |
482,231 |
|
|
AMC Charter |
|
|
85,680 |
|
|
|
91,766 |
|
|
|
388,994 |
|
|
|
328,990 |
|
|
Commercial Charter |
|
|
108,915 |
|
|
|
102,226 |
|
|
|
384,440 |
|
|
|
215,127 |
|
|
Dry Leasing |
|
|
1,794 |
|
|
|
653 |
|
|
|
7,178 |
|
|
|
12,799 |
|
|
Other |
|
|
3,369 |
|
|
|
3,627 |
|
|
|
13,309 |
|
|
|
22,399 |
|
|
Total Operating Revenue |
|
$ |
359,694 |
|
|
$ |
321,560 |
|
|
$ |
1,337,774 |
|
|
$ |
1,061,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Aircraft fuel |
|
|
77,893 |
|
|
|
72,285 |
|
|
|
300,229 |
|
|
|
201,207 |
|
|
Salaries, wages and benefits |
|
|
60,492 |
|
|
|
58,372 |
|
|
|
238,169 |
|
|
|
215,660 |
|
|
Maintenance, materials and repairs |
|
|
58,062 |
|
|
|
39,402 |
|
|
|
174,029 |
|
|
|
147,758 |
|
|
Aircraft rent |
|
|
39,549 |
|
|
|
37,928 |
|
|
|
154,646 |
|
|
|
151,080 |
|
|
Landing fees and other rent |
|
|
12,726 |
|
|
|
11,326 |
|
|
|
48,700 |
|
|
|
39,552 |
|
|
Depreciation and amortization |
|
|
8,304 |
|
|
|
8,519 |
|
|
|
34,353 |
|
|
|
33,074 |
|
|
Travel |
|
|
9,984 |
|
|
|
7,237 |
|
|
|
34,338 |
|
|
|
25,235 |
|
|
Ground handling and airport fees |
|
|
7,470 |
|
|
|
5,502 |
|
|
|
25,115 |
|
|
|
16,212 |
|
|
Gain on disposal of aircraft |
|
|
(60 |
) |
|
|
– |
|
|
|
(3,601 |
) |
|
|
(953 |
) |
|
Special charge |
|
|
– |
|
|
|
8,216 |
|
|
|
– |
|
|
|
8,216 |
|
|
Other |
|
|
23,733 |
|
|
|
20,604 |
|
|
|
103,910 |
|
|
|
74,498 |
|
|
Total Operating Expenses |
|
|
298,153 |
|
|
|
269,391 |
|
|
|
1,109,888 |
|
|
|
911,539 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income |
|
|
61,541 |
|
|
|
52,169 |
|
|
|
227,886 |
|
|
|
150,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-operating Expenses / (Income) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
(5,043 |
) |
|
|
(1,198 |
) |
|
|
(19,663 |
) |
|
|
(3,014 |
) |
|
Interest expense |
|
|
9,638 |
|
|
|
10,657 |
|
|
|
40,034 |
|
|
|
44,731 |
|
|
Capitalized interest |
|
|
(5,366 |
) |
|
|
(3,026 |
) |
|
|
(16,373 |
) |
|
|
(12,215 |
) |
|
Gain on early extinguishment of debt |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(2,713 |
) |
|
Gain on consolidation of subsidiary |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(113 |
) |
|
Other (income) expense, net |
|
|
14 |
|
|
|
(385 |
) |
|
|
(9,222 |
) |
|
|
(765 |
) |
|
Total Non-operating Expenses / (Income) |
|
|
(757 |
) |
|
|
6,048 |
|
|
|
(5,224 |
) |
|
|
25,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
|
62,298 |
|
|
|
46,121 |
|
|
|
233,110 |
|
|
|
124,096 |
|
|
Income tax expense |
|
|
19,768 |
|
|
|
17,986 |
|
|
|
90,154 |
|
|
|
47,940 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income |
|
|
42,530 |
|
|
|
28,135 |
|
|
|
142,956 |
|
|
|
76,156 |
|
|
Less: Net income / (loss) attributable |
|
|
|
|
|
|
|
|
|
|
|
|
|
to noncontrolling interests |
|
|
970 |
|
|
|
(204 |
) |
|
|
1,146 |
|
|
|
(1,620 |
) |
| Net Income Attributable |
|
|
|
|
|
|
|
|
|
|
|
|
|
to Common Stockholders |
|
$ |
41,560 |
|
|
$ |
28,339 |
|
|
$ |
141,810 |
|
|
$ |
77,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.60 |
|
|
$ |
1.19 |
|
|
$ |
5.50 |
|
|
$ |
3.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
1.58 |
|
|
$ |
1.17 |
|
|
$ |
5.44 |
|
|
$ |
3.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
25,914 |
|
|
|
23,878 |
|
|
|
25,781 |
|
|
|
21,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
26,234 |
|
|
|
24,171 |
|
|
|
26,088 |
|
|
|
21,818 |
|
| Atlas Air Worldwide Holdings, Inc.
Direct Contribution
(in thousands)
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
December 31, 2010 |
|
December 31, 2009 |
|
December 31, 2010 |
|
December 31, 2009 |
| Operating Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
| ACMI |
|
$ |
159,936 |
|
|
$ |
123,288 |
|
|
$ |
543,853 |
|
|
$ |
482,231 |
|
| AMC Charter |
|
|
85,680 |
|
|
|
91,766 |
|
|
|
388,994 |
|
|
|
328,990 |
|
| Commercial Charter |
|
|
108,915 |
|
|
|
102,226 |
|
|
|
384,440 |
|
|
|
215,127 |
|
| Dry Leasing |
|
|
1,794 |
|
|
|
653 |
|
|
|
7,178 |
|
|
|
12,799 |
|
| Other |
|
|
3,369 |
|
|
|
3,627 |
|
|
|
13,309 |
|
|
|
22,399 |
|
| Total Operating Revenue |
|
$ |
359,694 |
|
|
$ |
321,560 |
|
|
$ |
1,337,774 |
|
|
$ |
1,061,546 |
|
| Direct Contribution: |
|
|
|
|
|
|
|
|
|
|
|
|
| ACMI |
|
$ |
40,582 |
|
|
$ |
25,871 |
|
|
$ |
127,679 |
|
|
$ |
90,686 |
|
| AMC Charter |
|
|
15,995 |
|
|
|
24,205 |
|
|
|
111,091 |
|
|
|
93,884 |
|
| Commercial Charter |
|
|
33,345 |
|
|
|
34,577 |
|
|
|
111,717 |
|
|
|
39,790 |
|
| Dry Leasing |
|
|
951 |
|
|
|
37 |
|
|
|
4,643 |
|
|
|
1,051 |
|
| Total Direct Contribution for Reportable Segments |
|
|
90,873 |
|
|
|
84,690 |
|
|
|
355,130 |
|
|
|
225,411 |
|
| Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
| Unallocated income and expenses |
|
|
(28,635 |
) |
|
|
(30,353 |
) |
|
|
(125,621 |
) |
|
|
(96,878 |
) |
| Gain on early extinguishment of debt |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
2,713 |
|
| Gain on consolidation of subsidiary |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
113 |
|
| Gain on disposal of aircraft |
|
|
60 |
|
|
|
– |
|
|
|
3,601 |
|
|
|
953 |
|
| Special charge |
|
|
– |
|
|
|
(8,216 |
) |
|
|
– |
|
|
|
(8,216 |
) |
| Income before Income Taxes |
|
|
62,298 |
|
|
|
46,121 |
|
|
|
233,110 |
|
|
|
124,096 |
|
| Add back (subtract): |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest income |
|
|
(5,043 |
) |
|
|
(1,198 |
) |
|
|
(19,663 |
) |
|
|
(3,014 |
) |
| Interest expense |
|
|
9,638 |
|
|
|
10,657 |
|
|
|
40,034 |
|
|
|
44,731 |
|
| Capitalized interest |
|
|
(5,366 |
) |
|
|
(3,026 |
) |
|
|
(16,373 |
) |
|
|
(12,215 |
) |
| Gain on early extinguishment of debt |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(2,713 |
) |
| Gain on consolidation of subsidiary |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(113 |
) |
| Other, net |
|
|
14 |
|
|
|
(385 |
) |
|
|
(9,222 |
) |
|
|
(765 |
) |
| Operating Income |
|
$ |
61,541 |
|
|
$ |
52,169 |
|
|
$ |
227,886 |
|
|
$ |
150,007 |
|
AAWW uses an economic performance metric, Direct Contribution, to show the profitability of each of its segments after allocation of direct ownership costs. AAWW currently has the following reportable segments: ACMI, AMC Charter, Commercial Charter, and Dry Leasing. Each segment has different operating and economic characteristics, which are separately reviewed by senior management.
Direct Contribution consists of income (loss) before taxes, excluding special charges, nonrecurring items, gains on the sale of aircraft, and unallocated fixed costs.
Direct costs include crew costs, maintenance costs, fuel, ground operations, sales costs, aircraft rent, interest expense related to aircraft debt and aircraft depreciation.
Unallocated income and expenses include corporate overhead, non-aircraft depreciation, interest income, foreign exchange gains and losses, other revenue and other non-operating costs, including one-time items.
| Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures
(in thousands)
(Unaudited) |
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
December 31, 2010 |
|
December 31, 2009 |
|
December 31, 2010 |
|
December 31, 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before income taxes |
|
$ |
62,298 |
|
|
$ |
46,121 |
|
|
$ |
233,110 |
|
|
$ |
124,096 |
|
| Net expense for legal settlements |
|
|
(132 |
) |
|
|
– |
|
|
|
16,068 |
|
|
|
– |
|
| Special charge |
|
|
– |
|
|
|
8,216 |
|
|
|
– |
|
|
|
8,216 |
|
| Gain on disposal of aircraft |
|
|
(60 |
) |
|
|
– |
|
|
|
(3,601 |
) |
|
|
(953 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pretax income before net expense for legal settlements, special charge and gain on disposal of aircraft |
|
|
62,106 |
|
|
|
54,337 |
|
|
|
245,577 |
|
|
|
131,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
(771 |
) |
|
|
6,433 |
|
|
|
3,998 |
|
|
|
29,502 |
|
| Gain on early extinguishment of debt |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(2,713 |
) |
| Gain on consolidation of subsidiary |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(113 |
) |
| Other non-operating expenses |
|
|
14 |
|
|
|
(385 |
) |
|
|
(9,222 |
) |
|
|
(765 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income before non-operating items, net expense for legal settlements, special charge and gain on disposal of aircraft |
|
|
61,349 |
|
|
|
60,385 |
|
|
|
240,353 |
|
|
|
157,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
|
8,304 |
|
|
|
8,519 |
|
|
|
34,353 |
|
|
|
33,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDA, as adjusted* |
|
|
69,653 |
|
|
|
68,904 |
|
|
|
274,706 |
|
|
|
190,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aircraft rent |
|
|
39,549 |
|
|
|
37,928 |
|
|
|
154,646 |
|
|
|
151,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EBITDAR, as adjusted* |
|
$ |
109,202 |
|
|
$ |
106,832 |
|
|
$ |
429,352 |
|
|
$ |
341,424 |
|
* EBITDA, as adjusted: Earnings before interest, taxes, depreciation, amortization, net expense for legal settlements, special charge, gain on disposal of aircraft, gain on litigation, gain on early termination of debt, and gain on consolidation of subsidiary, as applicable.
* EBITDAR, as adjusted: Earnings before interest, taxes, depreciation, amortization, aircraft rent expense, net expense for legal settlements, special charge, gain on disposal of aircraft, gain on litigation, gain on early termination of debt, and gain on consolidation of subsidiary, as applicable.
| Atlas Air Worldwide Holdings, Inc.
Reconciliation to Non-GAAP Measures
(in thousands)
(Unaudited) |
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
December 31, 2010 |
|
December 31, 2010 |
|
|
|
|
Special |
|
As |
|
|
|
Special |
|
As |
|
|
Actual |
|
Items* |
|
Adjusted |
|
Actual |
|
Items* |
|
Adjusted |
| Income before income taxes |
|
$ |
62,298 |
|
|
$ |
(192 |
) |
|
$ |
62,106 |
|
|
$ |
233,110 |
|
|
$ |
3,717 |
|
|
$ |
236,827 |
|
| Less income tax expense |
|
|
19,768 |
|
|
|
(22 |
) |
|
|
19,746 |
|
|
|
90,154 |
|
|
|
(4,483 |
) |
|
|
85,671 |
|
| Net income |
|
|
42,530 |
|
|
|
(170 |
) |
|
|
42,360 |
|
|
|
142,956 |
|
|
|
8,200 |
|
|
|
151,156 |
|
| Less net loss attributable to non-controlling interests |
|
|
970 |
|
|
|
– |
|
|
|
970 |
|
|
|
1,146 |
|
|
|
– |
|
|
|
1,146 |
|
| Net income attributable to Common Stockholders |
|
$ |
41,560 |
|
|
$ |
(170 |
) |
|
$ |
41,390 |
|
|
$ |
141,810 |
|
|
$ |
8,200 |
|
|
$ |
150,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.60 |
|
|
$ |
(0.00 |
) |
|
$ |
1.60 |
|
|
$ |
5.50 |
|
|
$ |
0.32 |
|
|
$ |
5.82 |
|
| Diluted |
|
$ |
1.58 |
|
|
$ |
(0.00 |
) |
|
$ |
1.58 |
|
|
$ |
5.44 |
|
|
$ |
0.31 |
|
|
$ |
5.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Special items are comprised of: Three Months Ended December 31, 2010 – Net reduction for legal settlements – $132; gain on disposal of aircraft – $60. Twelve Months Ended December 31, 2010 – Net expense for legal settlements – $16,068; litigation settlement received – $8,750; gain on disposal of aircraft – $3,601. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Twelve Months Ended |
|
|
December 31, 2009 |
|
December 31, 2009 |
|
|
|
|
Special |
|
As |
|
|
|
Special |
|
As |
|
|
Actual |
|
Items* |
|
Adjusted |
|
Actual |
|
Items* |
|
Adjusted |
| Income before income taxes |
|
$ |
46,121 |
|
|
$ |
8,216 |
|
|
$ |
54,337 |
|
|
$ |
124,096 |
|
|
$ |
(5,563 |
) |
|
$ |
118,533 |
|
| Less income tax expense |
|
|
17,986 |
|
|
|
3,040 |
|
|
|
21,026 |
|
|
|
47,940 |
|
|
|
(2,058 |
) |
|
|
45,882 |
|
| Net income |
|
|
28,135 |
|
|
|
5,176 |
|
|
|
33,311 |
|
|
|
76,156 |
|
|
|
(3,505 |
) |
|
|
72,651 |
|
| Less net loss attributable to non-controlling interests |
|
|
(204 |
) |
|
|
– |
|
|
|
(204 |
) |
|
|
(1,620 |
) |
|
|
– |
|
|
|
(1,620 |
) |
| Net income attributable to Common Stockholders |
|
$ |
28,339 |
|
|
$ |
5,176 |
|
|
$ |
33,515 |
|
|
$ |
77,776 |
|
|
$ |
(3,505 |
) |
|
$ |
74,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
1.19 |
|
|
$ |
0.21 |
|
|
$ |
1.40 |
|
|
$ |
3.59 |
|
|
$ |
(0.16 |
) |
|
$ |
3.43 |
|
| Diluted |
|
$ |
1.17 |
|
|
$ |
0.21 |
|
|
$ |
1.38 |
|
|
$ |
3.56 |
|
|
$ |
(0.16 |
) |
|
$ |
3.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Special items are comprised of: Three Months Ended December 31, 2009 – Special charge – $8,216. Twelve Months Ended December 31, 2009 – Contract termination fee – $10,000; Special charge – $8,216; gain on early retirement of debt – $2,713; gain on disposal of aircraft – $953; gain on consolidation of subsidiary – $113. |
| Atlas Air Worldwide Holdings, Inc.
Operating Statistics and Traffic Results
(in thousands)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
For the Twelve Months Ended |
|
|
|
|
|
|
December 31, |
|
Percent |
|
|
December 31, |
|
Percent |
|
|
|
|
2010 |
|
2009 |
|
Change |
|
|
2010 |
|
2009 |
|
Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fleet (average during the period) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
|
21.0 |
|
|
17.4 |
|
20.7 |
% |
|
|
|
18.4 |
|
|
17.1 |
|
7.6 |
% |
|
AMC Charter |
|
|
4.3 |
|
|
5.1 |
|
(15.7 |
%) |
|
|
|
5.5 |
|
|
6.8 |
|
(19.1 |
%) |
|
Commercial Charter |
|
|
4.1 |
|
|
4.3 |
|
(4.7 |
%) |
|
|
|
4.7 |
|
|
3.5 |
|
34.3 |
% |
|
Dry Leasing |
|
|
1.0 |
|
|
– |
|
NM |
|
|
|
|
0.8 |
|
|
0.8 |
|
NM |
|
|
Operating Aircraft |
|
|
30.4 |
|
|
26.8 |
|
13.4 |
% |
|
|
|
29.4 |
|
|
28.2 |
|
4.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Out of Service (1) |
|
|
– |
|
|
3.2 |
|
(100.0 |
%) |
|
|
|
0.1 |
|
|
2.5 |
|
(96.0 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Block Hours |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
|
25,952 |
|
|
21,902 |
|
18.5 |
% |
|
|
|
91,357 |
|
|
76,859 |
|
18.9 |
% |
|
AMC Charter |
|
|
4,356 |
|
|
4,587 |
|
(5.0 |
%) |
|
|
|
18,679 |
|
|
19,088 |
|
(2.1 |
%) |
|
Commercial Charter |
|
|
4,540 |
|
|
4,846 |
|
(6.3 |
%) |
|
|
|
17,572 |
|
|
12,694 |
|
38.4 |
% |
|
Non revenue |
|
|
181 |
|
|
145 |
|
24.8 |
% |
|
|
|
750 |
|
|
328 |
|
128.7 |
% |
|
Total Block Hours |
|
|
35,029 |
|
|
31,480 |
|
11.3 |
% |
|
|
|
128,358 |
|
|
108,969 |
|
17.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue Per Block Hour |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
$ |
6,163 |
|
$ |
5,629 |
|
9.5 |
% |
|
|
$ |
5,953 |
|
$ |
6,274 |
|
(5.1 |
%) |
|
AMC Charter |
|
|
19,669 |
|
|
20,006 |
|
(1.7 |
%) |
|
|
|
20,825 |
|
|
17,235 |
|
20.8 |
% |
|
Commercial Charter |
|
|
23,990 |
|
|
21,095 |
|
13.7 |
% |
|
|
|
21,878 |
|
|
16,947 |
|
29.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Utilization (block hours per day) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACMI |
|
|
13.4 |
|
|
13.7 |
|
(2.2 |
%) |
|
|
|
13.6 |
|
|
12.3 |
|
10.6 |
% |
|
AMC Charter |
|
|
11.0 |
|
|
9.8 |
|
12.2 |
% |
|
|
|
9.3 |
|
|
7.7 |
|
20.8 |
% |
|
Commercial Charter |
|
|
12.0 |
|
|
12.2 |
|
(1.6 |
%) |
|
|
|
10.2 |
|
|
9.9 |
|
3.0 |
% |
|
All Operating Aircraft (2) |
|
|
13.0 |
|
|
12.8 |
|
1.6 |
% |
|
|
|
12.3 |
|
|
10.9 |
|
12.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fuel |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel cost per gallon |
|
$ |
2.68 |
|
$ |
2.68 |
|
0.0 |
% |
|
|
$ |
2.68 |
|
$ |
2.02 |
|
32.7 |
% |
|
|
Fuel gallons consumed (000s) |
|
|
13,992 |
|
|
13,916 |
|
0.5 |
% |
|
|
|
58,022 |
|
|
58,709 |
|
(1.2 |
%) |
|
Commercial Charter |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average fuel cost per gallon |
|
$ |
2.51 |
|
$ |
2.14 |
|
17.3 |
% |
|
|
$ |
2.37 |
|
$ |
1.93 |
|
22.8 |
% |
|
|
Fuel gallons consumed (000s) |
|
|
16,094 |
|
|
16,336 |
|
(1.5 |
%) |
|
|
|
61,154 |
|
|
42,742 |
|
43.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Out-of-service aircraft were temporarily parked during the period and are completely unencumbered. Permanently parked aircraft, all of which are also completely unencumbered, are not included in the operating statistics above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Average of All Operating Aircraft excludes Dry Leasing aircraft, which do not contribute to block-hour volumes. |
Feb. 14, 2011 (Business Wire) — NAPCO Security Technologies, Inc., (NASDAQ:NSSC), one of the world’s leading suppliers of high performance electronic security equipment for over 40 years, today announced financial results for its second quarter ended December 31, 2010.
Highlights:
Net sales for the second quarter increased 6% to $17,608,000, from $16,641,000 a year ago. For the six months, net sales increased 6% to $32,935,000, from $31,106,000 a year ago.
Adjusted EBITDA* for the second quarter increased 146% to $1,147,000 as compared to $467,000 for the same period a year ago. For the six months ended December 31, 2010, Adjusted EBITDA* increased 1,306% to $1,265,000 from $90,000 for the same period a year ago (see table attached).
Net income for the second quarter increased $1,069,000 or 117.2% to $157,000 or $0.01 per share as compared to the net loss of ($912,000) and ($0.05) for the same period a year ago. Net income for the six months increased $1,753,000 or 64% to $(977,000) or $(.05) per share as compared to $(2,730,000) and $(.14) for the same period a year ago. Per share results are based on 19,096,000 fully diluted weighted average shares for the three and six months ended December 31, 2010 and 2009.
Cash generated by operating activities was approximately $1.0 million for the three months ended December 31, 2010 and $1.2 million for the six months ended December 31, 2010.
Debt, net of cash, has been reduced by $12.5 million from $35.9 million to $23.4 million since acquiring Marks USA in August of 2008. $.8 million of this reduction occurred in the second quarter of fiscal 2011.
Gross Profit for the three months ended December 31, 2010 was $4,690,000, an increase of 17% compared to $3,992,000 for same period a year ago. Gross Profit for the six months ended December 31, 2010 was $8,113,000, an increase of 11% compared to $7,331,000 for same period a year ago.
Selling, general and administrative expenses for the three months ended December 31, 2010 decreased by 6% to $4,159,000 as compared to $4,402,000 for the same quarter a year ago. Selling, general and administrative expenses for the six months ended December 31, 2010 decreased by 9% to $8,299,000 as compared to $9,094,000 for the same period a year ago.
Operating income for the three months ended December 31, 2010 increased by $941,000 to $531,000 as compared to $(410,000) for the same quarter a year ago. Operating income for the six months ended December 31, 2010 improved by $1,577,000 to $(186,000) as compared to $(1,763,000) for the same period a year ago.
Richard Soloway, Chairman and President, stated, “Since concluding the extended negotiations on our restructured debt agreement in October, we have turned our full focus on sales growth, new products and continued expense reductions. As a result, our second quarter saw increases in sales, gross profit and net income as compared to the second quarter a year ago. In addition, selling, general and administrative and interest expenses in the second quarter were reduced by $429,000 as compared to the same three months last year.”
Mr. Soloway added “Our second quarter saw the introduction by Marks USA of BHMA certified, Grade 1 door closers and Grade 1 and 2 exit devices. These two critical product areas, combined with Marks’ legendary Grade 1 and 2 mortise locksets, provide the Company with a formidable “triple play” of products when specifying new construction projects or selling to contract hardware dealers. This triad of key product areas positions Marks powerfully in providing its customers with a “one supplier” marketing approach.”
Mr. Soloway continued “Initial orders for our new NAPCO Commercial ™ product line have been very promising. The product line provides intrusion and fire alarm dealers with the most advanced, integrated line of 8 to 255 point addressable, analog, commercial, wired or wireless, fire, intrusion, or combination fire/intrusion control panels, in its category. The national rollout is providing incremental interest and applications to NAPCO in the form of banks, hospitals, office buildings, retail outlets and other commercial venues. NAPCO Commercial has provided the Company with a strong entry in the robust, high margin, commercial fire/intrusion/life safety market segment.”
“Our Company’s line of service-driven, recurring revenue generating products continues to grow nicely in sales volume. The introduction of our wireless iSee Video™ product line has made it easier than ever for dealers to install video capabilities in residential and business applications and reap service revenues generated by providing an interactive viewing service, from their cell phones, iTablets or personal computers, to their consumers.”
“Two major product initiatives will be launched in early summer. First, our 2-way, uploading/downloading, next generation of Starlink™ Wireless, GSM Communicators will provide dealers with the ability to do away with the need for traditional phone lines to communicate alarms. Next, NAPCO will launch its new iBridge™ Online Remote Services, suite of products. This product line will provide consumers with the ability to view video cameras and recordings, control thermostats and appliances, operate lighting and interact with their alarm systems, remotely from any cell phone, iTablet, personal computer or any other product that provides online, internet communications. The product will use an advanced 7-inch, wireless iTablet to interact locally with the system. Both of these product introductions will be oriented toward delivering recurring revenue income streams for the Company.”
Mr. Soloway concluded, “We are pleased that our recent efforts have begun to generate both higher sales and higher profitability. As we continue these efforts, we are hopeful that they will result in further improvements in all areas. We believe this, combined with our large network of security dealers who install our extensive and technologically advanced line of products, puts us in a much healthier position as economic conditions improve and market demand increases. We are confident that our restructured operations will allow us to grow stronger as the world markets rebound from the economic crisis of the past few years.”
NAPCO will host a conference call for the investment community today, 2/14/2011, at 11:00 AM EST. Interested parties may participate in the call by dialing (877) 407-8291; international callers dial (201) 689-8345 about 5 – 10 minutes prior to 11:00 AM EST. The conference call will also be available on replay starting at 3:00 PM EST on February 14, 2011 and ending on February 28, 2011. For the replay, please dial (877) 660-6853 (replay account #332, replay conference #366270). The access number for the replay for international callers is (201) 612-7415 (replay account #332, replay conference #366270).
About NAPCO Security Technologies, Inc.
NAPCO Security Technologies, Inc. is one of the world’s leading manufacturers of technologically advanced electronic security equipment including intrusion and fire alarm systems, access control and door locking systems. The Company consists of NAPCO plus three wholly-owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA. The products are installed by security professionals worldwide in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for technical excellence, reliability and innovation, poising the Company for growth in the rapidly expanding electronic security market, a multi-billion dollar market.
For additional information on NAPCO, please visit the Company’s web site at www.napcosecurity.com.
This press release contains forward-looking statements that involve numerous risks and uncertainties. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Company’s filings with the Securities and Exchange Commission.
| NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| ASSETS |
|
December 31, 2010 |
|
June 30, 2010 |
|
|
(unaudited) |
|
(audited) |
|
|
(In thousands except share data) |
| CURRENT ASSETS |
|
|
|
|
| Cash and cash equivalents |
|
$ |
2,777 |
|
|
$ |
5,522 |
|
| Accounts receivable, net of reserves |
|
|
13,736 |
|
|
|
17,740 |
|
| Inventories |
|
|
18,726 |
|
|
|
17,370 |
|
| Prepaid expenses and other current assets |
|
|
776 |
|
|
|
947 |
|
| Income tax receivable |
|
|
1,207 |
|
|
|
785 |
|
| Deferred income taxes |
|
|
448 |
|
|
|
448 |
|
| Total Current Assets |
|
|
37,670 |
|
|
|
42,812 |
|
| Inventories – non-current, net |
|
|
5,787 |
|
|
|
6,712 |
|
| Deferred income taxes |
|
|
1,672 |
|
|
|
1,842 |
|
| Property, plant and equipment, net |
|
|
7,863 |
|
|
|
8,106 |
|
| Intangible assets, net |
|
|
13,293 |
|
|
|
13,870 |
|
| Other assets |
|
|
295 |
|
|
|
326 |
|
| TOTAL ASSETS |
|
$ |
66,580 |
|
|
$ |
73,668 |
|
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
| Current maturities of long-term debt |
|
$ |
2,679 |
|
|
$ |
— |
|
| Loan payable |
|
|
— |
|
|
|
29,849 |
|
| Accounts payable |
|
|
3,562 |
|
|
|
5,320 |
|
| Accrued expenses |
|
|
1,973 |
|
|
|
2,242 |
|
| Accrued salaries and wages |
|
|
1,452 |
|
|
|
1,899 |
|
| Total Current Liabilities |
|
|
9,666 |
|
|
|
39,310 |
|
| Long-term debt, net of current maturities |
|
|
23,491 |
|
|
|
— |
|
| Accrued income taxes |
|
|
121 |
|
|
|
116 |
|
| Total Liabilities |
|
|
33,278 |
|
|
|
39,426 |
|
| COMMITMENTS AND CONTINGENCIES |
|
|
|
|
| STOCKHOLDERS’ EQUITY |
|
|
|
|
| Common Stock, par value $0.01 per share; 40,000,000 shares authorized; 20,095,713 shares issued; 19,095,713 shares outstanding |
|
|
201 |
|
|
|
201 |
|
| Additional paid-in capital |
|
|
14,043 |
|
|
|
14,006 |
|
| Retained earnings |
|
|
24,673 |
|
|
|
25,650 |
|
|
|
|
38,917 |
|
|
|
39,857 |
|
| Less: Treasury Stock, at cost (1,000,000 shares) |
|
|
(5,615 |
) |
|
|
(5,615 |
) |
| TOTAL STOCKHOLDERS’ EQUITY |
|
|
33,302 |
|
|
|
34,242 |
|
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
66,580 |
|
|
$ |
73,668 |
|
| NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|
|
Three months ended December 31, |
|
Six months ended December 31, |
|
|
|
2010 |
|
|
|
2009 |
|
|
|
2010 |
|
|
|
2009 |
|
|
|
(In thousands, except share and per share data) |
| Net sales |
|
$ |
17,608 |
|
|
$ |
16,641 |
|
|
$ |
32,935 |
|
|
$ |
31,106 |
|
| Cost of sales |
|
|
12,918 |
|
|
|
12,649 |
|
|
|
24,822 |
|
|
|
23,775 |
|
| Gross Profit |
|
|
4,690 |
|
|
|
3,992 |
|
|
|
8,113 |
|
|
|
7,331 |
|
| Selling, general, and administrative expenses |
|
|
4,159 |
|
|
|
4,402 |
|
|
|
8,299 |
|
|
|
9,094 |
|
| Operating Income (Loss) |
|
|
531 |
|
|
|
(410 |
) |
|
|
(186 |
) |
|
|
(1,763 |
) |
| Other expense: |
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
411 |
|
|
|
597 |
|
|
|
1,005 |
|
|
|
1,168 |
|
| Other, net |
|
|
14 |
|
|
|
(34 |
) |
|
|
28 |
|
|
|
(20 |
) |
|
|
|
425 |
|
|
|
563 |
|
|
|
1,033 |
|
|
|
1,148 |
|
| Income (Loss) before Benefit for Income Taxes |
|
|
106 |
|
|
|
(973 |
) |
|
|
(1,219 |
) |
|
|
(2,911 |
) |
| Benefit for income taxes |
|
|
(51 |
) |
|
|
(61 |
) |
|
|
(242 |
) |
|
|
(181 |
) |
| Net Income (Loss) |
|
$ |
157 |
|
|
$ |
(912 |
) |
|
$ |
(977 |
) |
|
$ |
(2,730 |
) |
| Income (Loss) per share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.01 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
| Diluted |
|
$ |
0.01 |
|
|
$ |
(0.05 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.14 |
) |
| Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
| Basic |
|
|
19,096,000 |
|
|
|
19,096,000 |
|
|
|
19,096,000 |
|
|
|
19,096,000 |
|
| Diluted |
|
|
19,096,000 |
|
|
|
19,096,000 |
|
|
|
19,096,000 |
|
|
|
19,096,000 |
|
| NAPCO SECURITY TECHNOLOGIES, INC. |
| NON-GAAP MEASURES OF PERFORMANCE* (Unaudited) |
| (in thousands) |
|
|
3 months ended December 31, |
|
6 months ended December 31, |
|
|
|
2010 |
|
|
|
2009 |
|
|
|
2010 |
|
|
|
2009 |
|
| Net Income (Loss) (GAAP) |
|
$ |
157 |
|
|
$ |
(912 |
) |
|
$ |
(977 |
) |
|
$ |
(2,730 |
) |
| Add back (benefit) provision for income taxes |
|
|
(51 |
) |
|
|
(61 |
) |
|
|
(242 |
) |
|
|
(181 |
) |
| Add back interest and other expense |
|
|
425 |
|
|
|
563 |
|
|
|
1,033 |
|
|
|
1,148 |
|
| Operating Income (Loss) (GAAP) |
|
|
531 |
|
|
|
(410 |
) |
|
|
(186 |
) |
|
|
(1,763 |
) |
| Adjustments for non-GAAP measures of performance: |
|
|
|
|
|
|
|
|
| Add back amortization of acquisition-related intangibles |
|
|
288 |
|
|
|
335 |
|
|
|
576 |
|
|
|
670 |
|
| Add back stock-based compensation expense |
|
|
15 |
|
|
|
63 |
|
|
|
38 |
|
|
|
132 |
|
| Add back costs relating to Marks acquisition and consolidation |
|
|
– |
|
|
|
– |
|
|
|
216 |
|
|
|
238 |
|
| Add back costs associated with waivers and amendments to credit facilities |
|
|
34 |
|
|
|
155 |
|
|
|
69 |
|
|
|
168 |
|
| Adjusted non-GAAP Operating Income (Loss) |
|
|
868 |
|
|
|
143 |
|
|
|
713 |
|
|
|
(555 |
) |
| Add back depreciation |
|
|
279 |
|
|
|
324 |
|
|
|
552 |
|
|
|
645 |
|
| Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) |
|
$ |
1,147 |
|
|
$ |
467 |
|
|
$ |
1,265 |
|
|
$ |
90 |
|
* Non-GAAP Information. Certain non-GAAP measures are included in this press release, including EBITDA, non-GAAP operating income and Adjusted EBITDA. We define EBITDA as GAAP net income (loss) plus income tax expense (benefit), net interest expense and depreciation and amortization expense. Non-GAAP operating income does not include impairment of goodwill, amortization of intangibles, restructuring charges, stock-based compensation expense and other infrequent or unusual charges. These non-GAAP measures are provided to enhance the user’s overall understanding of our financial performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in assessing NAPCO’s core operating performance and in comparing our results of operations on a consistent basis from period to period. The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial measures included in the above.
NAPCO Security Technologies, Inc.
Richard L. Soloway, CEO
or
Kevin S. Buchel, Senior VP
631-842-9400 ext. 120
or
Wolfe Axelrod Weinberger Assoc. LLC
Donald Weinberger
or
Diana Bittner (Media)
212-370-4500; 212-370-4505 fax
don@wolfeaxelrod.com
NEW YORK, Feb. 14, 2011 (GLOBE NEWSWIRE) — Rand Logistics, Inc. (Nasdaq:RLOG) (“Rand”) today announced financial and operational results for the third quarter of fiscal 2011 ended December 31, 2010.
Quarter Ended December 31, 2010 Financial Highlights
Versus Quarter Ended December 31, 2009
- Marine freight revenue (excluding fuel and other surcharges, and outside charter revenue) was $27.3 million, a decrease of 4.4% from $28.6 million. The decrease in marine freight revenue was primarily attributable to 15 less sailing days and both less favorable weather conditions and commodity mix. The decrease was partially offset by a stronger Canadian dollar.
- Marine freight revenue per sailing day decreased by $823, or 3.1%, to $26,030 from $26,853. This decrease was attributable to inefficiencies in our trade patterns that resulted from the mechanical incidents in the prior quarter.
- Vessel operating expenses per sailing day increased by $476, or 2.2%, to $22,275 from $21,799. This increase was primarily attributable to higher fuel costs and a stronger Canadian dollar.
- Operating income plus depreciation and amortization decreased by $470,000 to $7.9 million from $8.4 million.
Nine Months Ended December 31, 2010 Financial Highlights
Versus Nine Months Ended December 31, 2009
- Marine freight revenue (excluding fuel and other surcharges, and outside charter revenue) was $86.0 million, an increase of 6.4% from $80.9 million. The increase in marine freight revenue was primarily attributable to 177 more sailing days in the nine month period this year versus last year, price increases and a stronger Canadian dollar, partially offset by inefficiencies in trade patterns resulting from the major mechanical incidents experienced in the first half of the year.
- Marine freight revenue per sailing day increased by $113 or 0.4%, to $27,281 from $27,168, as a result of a stronger Canadian dollar. This increase was partially offset by inefficiencies in trade patterns due to mechanical incidents that occurred in the first half of the year.
- Vessel operating expenses per sailing day increased by $2,788, or 13.7%, to $23,181 from $20,393. The increase was primarily attributable to repair costs below the insurance deductible and associated inefficiencies due to the mechanical incidents on five of our vessels, a one-time insurance assessment, an increase in fuel expense and a stronger Canadian dollar.
- Operating income plus depreciation and amortization (excluding a GE Amendment Fee of $446,000 in fiscal 2010) decreased $2.6 million to $24.9 million from $27.5 million. The reduction in operating income resulting from the previously disclosed operational incidents totaled $4.9 million, including $1.1 million repair costs below insurance deductibles, $2.5 million of lost margin resulting from 113 days of downtime and a one-time insurance assessment of $1.3 million.
Subsequent Events
On February 11, 2011, Rand acquired two Jones Act compliant, self-unloading integrated tug/barge units from KK Integrated Shipping (KKIS). Management anticipates that this acquisition will be accretive to Rand’s fiscal year ending March 31, 2012 results and will add between $0.25 and $0.30 in free cash flow per share. The acquisition was structured with $35.5 million cash paid at closing (including $31.0 million financed with third party debt), $5.1 million of attractively priced junior seller paper and 1,305,963 shares of the Company’s common stock. Further details regarding this transaction are included in the Company’s Form 10-Q, filed with the Securities and Exchange Commission today, February 14, 2011.
Management Comments
Scott Bravener, President of Lower Lakes stated, “Our third quarter results were in line with our expectations as we enjoyed consistent customer demand throughout the quarter. This demand continued across our end markets into January 2011, as we operated for an above average 144 sailing days in the month. While I am disappointed by the previously discussed operational incidents that we incurred during the sailing season, we still expect operating income plus depreciation and amortization will exceed $19 million for the fiscal year ending March 31, 2011, notwithstanding incurring approximately $4.9 million of one-time costs and lost margin due to these incidents.”
Outlook
Laurence S. Levy, Chairman and CEO of Rand, commented, “Despite the negative financial impact to our fiscal year 2011 results to-date from the mechanical incidents, we continue to believe that the long term fundamentals of our business and end markets remain strong. We are very enthusiastic about the highly strategic nature of the KKIS acquisition and project that this purchase will be accretive to Rand’s results in fiscal year 2012. The SS Michipicoten repowering project, which began in December 2010, is on track and will also be accretive to our fiscal year 2012 results, as we estimate that this investment will generate an unlevered annual return on invested funds in the mid teens. Based on current economic conditions, we are adjusting our prior guidance of $0.90 to $1.00 of free cash flow per common share to $1.15 to $1.30, reflecting the anticipated benefits to be derived from the newly acquired vessels.”
“Our outlook for fiscal year 2012 is very positive, given our current order book as well as additional customer demand expected in connection with the KKIS acquisition. Based on contracts in hand, our expanded fleet is fully booked for the 2011 sailing season. Over the next 24 months, we have the opportunity to accelerate our free cash flow growth as we improve the profitability of our existing fleet by better aligning our assets to the trade patterns that they are best suited for and gain greater flexibility in the scheduling of our expanded fleet. Continued improvement in vessel utilization combined with increased customer demand reinforces our confidence in a positive future for Rand, our customers, employees and shareholders.”
|
|
|
|
|
| Rand Logistics, Inc. |
|
|
|
|
| Summary Statements of Operations (Unaudited) |
|
|
|
|
| (U.S. Dollars 000’s except for Shares and Per Share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, |
Nine months ended
December 31, |
|
2010 |
2009 |
2010 |
2009 |
| Revenue |
|
|
|
|
| Freight and related revenue |
$ 27,331 |
$ 28,598 |
$ 86,043 |
$ 80,879 |
| Fuel and other surcharges |
6,432 |
5,633 |
19,117 |
14,409 |
| Outside voyage charter revenue |
2,850 |
3,088 |
7,056 |
7,525 |
|
36,613 |
37,319 |
112,216 |
102,813 |
| Expenses |
|
|
|
|
| Outside voyage charter fees |
2,831 |
3,089 |
7,032 |
7,509 |
| Vessel operating expenses |
23,389 |
23,216 |
73,113 |
60,710 |
| Repairs and maintenance |
74 |
68 |
118 |
785 |
| General and administrative |
2,416 |
2,569 |
7,080 |
6,762 |
| Depreciation and amortization of deferred drydock costs and intangibles |
2,808 |
3,329 |
8,319 |
9,728 |
| Loss on foreign exchange |
2 |
6 |
7 |
14 |
|
31,520 |
32,277 |
95,669 |
85,508 |
| Operating Income |
5,093 |
5,042 |
16,547 |
17,305 |
|
|
|
|
|
| Net income applicable to common stockholders |
$ 3,240 |
$ 2,914 |
$ 11,203.0 |
$ 10,176 |
| Net income per share – basic |
$ 0.24 |
$ 0.22 |
$ 0.84 |
$ 0.78 |
| Net income per share – diluted |
$ 0.24 |
$ 0.22 |
$ 0.82 |
$ 0.75 |
Management will host a conference call to discuss the results at 8:30 a.m. ET on Monday, February 14, 2011. Interested parties may participate in the conference call by dialing 877-218-9317 (706-758-6006 for international callers), Conference ID# 41829430. Please dial in 10 minutes before the call is scheduled to begin.
A telephonic replay of the conference call may be accessed approximately two hours after the completion of the call through April 14, 2011. Dial 800-642-1687 (706-645-9291 for international callers), Conference ID# 41829430, to access the phone replay.
The conference call will be webcast simultaneously on the Rand Logistics, Inc. website at www.randlogisticsinc.com/presentations.html. The webcast replay will be archived for 12 months.
Forward-Looking Statements
This press release contains forward-looking statements. For all forward-looking statements, we claim the protection of the Safe Harbor for Forward-Looking Statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the effect of the economic downturn in our markets; the weather conditions on the Great Lakes; and our ability to maintain and replace our vessels as they age.
For a more detailed description of these uncertainties and other factors, please see the “Risk Factors” section in Rand’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission on June 16, 2010.
About Rand Logistics
Rand Logistics, Inc. is a leading provider of bulk freight shipping services throughout the Great Lakes region. Through its subsidiaries, the Company operates a fleet of fifteen vessels consisting of twelve self-unloading bulk carriers, including eight River Class vessels and one River Class integrated tug/barge unit, and three conventional bulk carriers, of which one is operated under a contract of affreightment. The Company is the only carrier able to offer significant domestic port-to-port services in both Canada and the U.S. on the Great Lakes. The Company’s vessels operate under the U.S. Jones Act – which reserves domestic waterborne commerce to vessels that are U.S. owned, built and crewed, – and the Canada Marine Act – which requires only Canadian registered and crewed ships to operate between Canadian ports.
|
| RAND LOGISTICS, INC. |
| Consolidated Statements of Operations (Unaudited) |
| (U.S. Dollars 000’s except for Shares and Per Share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, |
Nine months ended
December 31, |
|
|
2010 |
2009 |
2010 |
2009 |
| REVENUE |
|
|
|
|
| Freight and related revenue |
$ 27,331 |
$ 28,598 |
$ 86,043 |
$ 80,879 |
| Fuel and other surcharges |
6,432 |
5,633 |
19,117 |
14,409 |
| Outside voyage charter revenue |
|
2,850 |
3,088 |
7,056 |
7,525 |
| TOTAL REVENUE |
36,613 |
37,319 |
112,216 |
102,813 |
|
|
|
|
|
| EXPENSES |
|
|
|
|
| Outside voyage charter fees |
2,831 |
3,089 |
7,032 |
7,509 |
| Vessel operating expenses |
23,389 |
23,216 |
73,113 |
60,710 |
| Repairs and maintenance |
74 |
68 |
118 |
785 |
| General and administrative |
2,416 |
2,569 |
7,080 |
6,762 |
| Depreciation |
1,818 |
2,411 |
5,376 |
6,792 |
| Amortization of deferred drydock costs |
696 |
619 |
2,070 |
1,799 |
| Amortization of intangibles |
294 |
299 |
873 |
1,137 |
| Loss on foreign exchange |
|
2 |
6 |
7 |
14 |
|
31,520 |
32,277 |
95,669 |
85,508 |
| OPERATING INCOME |
5,093 |
5,042 |
16,547 |
17,305 |
|
|
|
|
|
| OTHER (INCOME) AND EXPENSES |
|
|
|
|
| Interest expense |
1,503 |
1,409 |
4,161 |
4,320 |
| Interest income |
(11) |
— |
(34) |
(5) |
| Gain on interest rate swap contracts |
(508) |
(386) |
(131) |
(1,955) |
|
984 |
1,023 |
3,996 |
2,360 |
|
|
|
|
|
| INCOME BEFORE INCOME TAXES |
4,109 |
4,019 |
12,551 |
14,945 |
| PROVISION (RECOVERY) FOR INCOME TAXES |
|
|
|
|
| Current |
|
(178) |
15 |
(4) |
84 |
| Deferred |
|
450 |
600 |
(367) |
3,275 |
|
272 |
615 |
(371) |
3,359 |
| NET INCOME BEFORE PREFERRED STOCK DIVIDENDS |
3,837 |
3,404 |
12,922 |
11,586 |
| PREFERRED STOCK DIVIDENDS |
597 |
490 |
1,719 |
1,410 |
| NET INCOME APPLICABLE TO COMMON STOCKHOLDERS |
$ 3,240 |
$ 2,914 |
$ 11,203 |
$ 10,176 |
|
|
|
|
|
| Net income per share basic |
$ 0.24 |
$ 0.22 |
$ 0.84 |
$ 0.78 |
| Net income per share diluted |
$ 0.24 |
$ 0.22 |
$ 0.82 |
$ 0.75 |
| Weighted average shares basic |
13,466,879 |
13,141,574 |
13,404,338 |
12,980,831 |
| Weighted average shares diluted |
13,466,879 |
15,560,929 |
15,823,693 |
15,400,186 |
|
|
| RAND LOGISTICS, INC. |
| Consolidated Balance Sheets (Unaudited) |
| (U.S. Dollars 000’s except for Shares and Per Share data) |
|
|
|
|
|
|
|
December 31,
2010 |
March 31,
2010 |
| ASSETS |
|
|
| CURRENT |
|
|
| Cash and cash equivalents |
$ 12,021 |
$ 943 |
| Accounts receivable |
18,169 |
3,922 |
| Prepaid expenses and other current assets |
3,637 |
3,506 |
| Income taxes receivable |
— |
159 |
| Deferred income taxes |
491 |
262 |
| Total current assets |
34,318 |
8,792 |
|
|
|
| PROPERTY AND EQUIPMENT, NET |
104,510 |
98,479 |
| LOAN TO EMPLOYEE |
250 |
250 |
| OTHER ASSETS |
426 |
541 |
| DEFERRED INCOME TAXES |
9,169 |
8,583 |
| DEFERRED DRYDOCK COSTS, NET |
5,730 |
7,129 |
| INTANGIBLE ASSETS, NET |
13,456 |
14,000 |
| GOODWILL |
10,193 |
10,193 |
|
|
|
| Total assets |
$ 178,052 |
$ 147,967 |
| LIABILITIES |
|
|
| CURRENT |
|
|
| Bank indebtedness |
$ — |
$ — |
| Accounts payable |
4,639 |
7,864 |
| Accrued liabilities |
13,332 |
11,085 |
| Interest rate swap contracts |
2,202 |
2,298 |
| Income taxes payable |
42 |
266 |
| Deferred income taxes |
450 |
— |
| Current portion of long-term debt |
5,282 |
4,728 |
| Total current liabilities |
25,947 |
26,241 |
| LONG-TERM DEBT |
75,500 |
57,924 |
| OTHER LIABILITIES |
238 |
238 |
| DEFERRED INCOME TAXES |
12,163 |
12,086 |
|
|
|
| Total liabilities |
113,848 |
96,489 |
| COMMITMENTS AND CONTINGENCIES |
|
| STOCKHOLDERS’ EQUITY |
|
| Preferred stock, $.0001 par value, |
14,900 |
14,900 |
| Authorized 1,000,000 shares, Issued and outstanding 300,000 shares |
|
|
| Common stock, $.0001 par value, |
1 |
1 |
| Authorized 50,000,000 shares, Issuable and outstanding 13,470,802 shares |
|
|
| Additional paid-in capital |
64,639 |
63,906 |
| Accumulated deficit |
(17,218) |
(28,421) |
| Accumulated other comprehensive income |
1,882 |
1,092 |
|
|
|
| Total stockholders’ equity |
64,204 |
51,478 |
|
|
|
| Total liabilities and stockholders’ equity |
$ 178,052 |
$ 147,967 |
CONTACT: Rand Logistics, Inc.
Laurence S. Levy, Chairman & CEO
Edward Levy, President
(212) 644-3450
INVESTOR RELATIONS COUNSEL:
Lesley Snyder
(212) 863-9413
LSnyder@randlogisticsinc.com
SHELTON, Conn.–(BUSINESS WIRE)– Baldwin Technology Company, Inc. (NYSE Amex: BLD), a global leader in process automation technology for the printing industry, today reported its financial results for the Company’s fiscal second quarter ended December 31, 2010.
Highlights
- Orders increased 28% year-over-year, including acquired UV products
- Sales up 8.9% year-over-year
- Margins increased quarter-over-quarter
- Mark T. Becker elected President & CEO effective October 1, 2010
Second Quarter Fiscal 2011 Financial Results
The Company reported net sales of $42.2 million for the second quarter, an 8.9% increase over net sales of $38.8 million for the second quarter of the prior fiscal year. Currency translation had virtually no impact on sales for the quarter. Sales from the entities acquired on June 30, 2010 contributed $4.1 million.
Net loss for the second quarter was $0.6 million or $0.04 per diluted share, compared to net loss of $0.4 million or $0.03 per diluted share for the comparable quarter in the prior year. Net loss after adjusting for the net of tax effect of restructuring expenses in the current quarter was $0.3 million, or $0.02 per diluted share.
EBITDA after adjustment for restructuring costs recorded during the quarter was $0.7 million, essentially equal to the EBITDA for the same quarter of the prior year. Cash flow from operations in the quarter was $1 million compared to $10.8 million in the second quarter of the prior year. Cash flow in the prior year quarter included $9.6 million proceeds from settlement of a patent infringement lawsuit.
Orders for the quarter were approximately $44.0 million, compared to $34.3 million for the second quarter of the prior year and $40 million for the prior quarter, an increase of 28% over the same quarter in the prior year and 10% over the prior quarter. Backlog at December 31, 2010 was $33.6 million compared to $31.8 million at September 30, 2010 and $29.9 million at June 30, 2010. Acquired entities contributed $5.4 million of orders for the quarter and comprised $4.2 million of the backlog at December 31, 2010.
Please refer to the attached schedule, “Non-GAAP Statements of Operations,” for a reconciliation of GAAP results to adjusted results.
Recent Press Releases
- Baldwin in Compliance with NYSE Amex Listing Standards (December 14, 2010)
- Baldwin Secures Over $4 million of New Orders in U.S. (December 8, 2010)
- Baldwin Elects Paul J. Griswold as a Director (November 17, 2010)
Additional details, copies of these releases and other news are available at www.baldwintech.com.
Comments
President and CEO Mark T. Becker said, “Our order trends for both core and new UV products continue to improve. Year to date, orders exceeded those received during the comparable six-month period last year by 23%. Sales also improved during the first half of fiscal 2011 driven by strength in the Americas in equipment and the acquired UV products, which helped offset weakness in other parts of the world. Year to date sales in the core business has not yet recovered to prior year levels due to timing delays between when orders are received and when they are recorded as sales. The recent increased order activity is expected to have a favorable impact on our fiscal fourth quarter and fiscal 2012 sales.
“We have just completed a functional reorganization of the Company which will enable a consolidation of facilities and adjustment of headcount consistent with the current revenue level. We will be presenting a restructuring plan to the Board of Directors next week for implementation during the third quarter. The restructuring undertaken in the second quarter was a small first step in that larger overall plan. The resulting leaner organization will reposition the Company for profitability and improved cash flow and will also position us to refinance our credit facilities prior to the end of their terms,” Becker concluded.
Vice President and CFO John P. Jordan added, “Our ongoing margin initiatives (global sourcing, manufacturing in lower cost countries and standardization of components and controls), combined with increased sales over the prior quarter and the influence of the higher-margin UV business, helped increase margins from 28.1% in the prior quarter to 29.5% in the current quarter. We anticipate that these initiatives will continue to contribute to margin growth.
“Aggressive execution of our inventory reduction initiatives eliminated $1.3 million of inventory (net of foreign exchange impact) during the current quarter. Our new global organization structure and ongoing focus on working capital management are expected to contribute to cash flow in future quarters.
“The debt due under the existing Bank of America credit agreement has been classified as current due to its maturity within one year. The Company met its credit agreement covenant targets during the second quarter, and we anticipate a continuing ability to comply with the covenants and to refinance the Company’s credit facilities during 2011. Our internal cash-generating capability is expected to provide adequate liquidity to carry out our operating and restructuring plans,” Jordan concluded.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a company’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets, or statements of cash flows of the Company; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Pursuant to the requirements of Regulation G, the Company has provided reconciliations of each of the non-GAAP financial measures contained herein to the most directly comparable GAAP financial measures. These non-GAAP measures are provided because management of the Company uses these financials measures as an indicator of business performance in maintaining and evaluating the Company’s on-going financial results and trends. The Company believes that both management and investors benefit from referring to these non-GAAP measures in assessing the performance of the Company’s ongoing operations and liquidity and when planning and forecasting future periods. These non-GAAP measures also facilitate management’s internal comparisons to the Company’s historical operating results and liquidity.
Conference Call and Webcast
The Company will host a conference call to discuss the financial results and business outlook today at 11:00 AM Eastern Time. Call in information is below:
|
Conference Call Access:
|
| Domestic: 888-972-6405 |
| International: 210-234-0045 |
| Passcode: Baldwin Q2 |
|
|
Rebroadcast Access:
|
| Domestic: 866-420-4824 |
| International: 203-369-0786 |
|
An archived webcast of the conference call will also be available on the Company’s web site http://www.baldwintech.com or http://www.investorcalendar.com/IC/CEPage.asp?ID=163363.
Leading the call will be Baldwin President and CEO Mark T. Becker and Vice President and CFO John P. Jordan.
About Baldwin
Baldwin Technology Company, Inc. is a leading international supplier of process automation equipment and related consumables for the printing, publishing and packaging industries. Baldwin offers its customers a broad range of market-leading technologies, products and systems that enhance the quality of printed products and improve the economic and environmental efficiency of the printing process. Headquartered in Shelton, Connecticut, the Company has operations strategically located in the major print media markets and distributes its products via a global sales and service infrastructure. Baldwin’s technology and products include cleaning systems, fluid management and ink control systems, web press protection systems and drying and curing systems and related consumables. For more information, visit http://www.baldwintech.com.
A profile for investors is available at www.hawkassociates.com/profile/bld.cfm. An online investor kit including press releases, current price quotes, stock charts and other valuable information for investors is available at http://www.hawkassociates.com. To receive free e-mail notification of future releases for Baldwin, sign up at www.hawkassociates.com/about/alert/.
Cautionary Statement
Certain statements contained in this News Release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding expected revenue, gross margins, operating income (loss), EBITDA, asset impairments, expectations concerning the reductions of costs, the level of customer demand and the ability of the Company to achieve its stated objectives. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward- looking statements. Such factors include, but are not limited to: the severity and length of the current economic downturn, the impact of the economic downturn on the availability of credit for the Company’s customers, the ability of the Company to maintain ongoing compliance with the terms of its amended credit agreement, market acceptance of and demand for the Company’s products and resulting revenue, the ability of the Company to successfully expand into new territories, the ability of the Company to meet its stated financial and operational objectives, the Company’s dependence on its partners (both manufacturing and distribution), and other risks and uncertainties detailed in the Company’s periodic filings with the Securities and Exchange Commission. The words “looking forward,” “looking ahead, ” “believe(s),” “should,” “may,” “expect(s),” “anticipate(s),” “project(s),” ” likely,” “opportunity,” and similar expressions, among others, identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to update any forward-looking statements contained in this news release.
| Baldwin Technology Company, Inc.
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data) |
|
|
|
|
|
|
|
Quarter ended December 31, |
|
|
|
|
2010 |
|
|
|
|
|
2009 |
|
| Net sales |
|
|
$ |
42,203 |
|
|
|
|
$ |
38,751 |
|
| Cost of goods sold |
|
|
|
29,764 |
|
|
|
|
|
27,093 |
|
| Gross profit |
|
|
|
12,439 |
|
|
|
|
|
11,658 |
|
| Operating expenses |
|
|
|
12,502 |
|
|
|
|
|
11,551 |
|
| Restructuring |
|
|
|
455 |
|
|
|
|
|
— |
|
| Operating (loss) income |
|
|
|
(518 |
) |
|
|
|
|
107 |
|
| Interest expense, net |
|
|
|
495 |
|
|
|
|
|
485 |
|
| Other (income) expense, net |
|
|
|
(24 |
) |
|
|
|
|
26 |
|
| Loss before income taxes |
|
|
|
(989 |
) |
|
|
|
|
(404 |
) |
| (Benefit) provision for income taxes |
|
|
|
(371 |
) |
|
|
|
|
12 |
|
| Net loss |
|
|
$ |
(618 |
) |
|
|
|
$ |
(416 |
) |
| Net loss per share – basic and diluted |
|
|
$ |
(0.04 |
) |
|
|
|
$ |
(0.03 |
) |
| Weighted average shares outstanding – basic |
|
|
|
15,604 |
|
|
|
|
|
15,461 |
|
| Weighted average shares outstanding – diluted |
|
|
|
15,604 |
|
|
|
|
|
15,461 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months ended December 31, |
|
|
|
|
2010 |
|
|
|
|
|
2009 |
|
| Net sales |
|
|
$ |
80,654 |
|
|
|
|
$ |
74,925 |
|
| Cost of goods sold |
|
|
|
57,402 |
|
|
|
|
|
52,847 |
|
| Gross profit |
|
|
|
23,252 |
|
|
|
|
|
22,078 |
|
| Operating expenses |
|
|
|
25,708 |
|
|
|
|
|
23,581 |
|
| Restructuring |
|
|
|
647 |
|
|
|
|
|
— |
|
| Legal settlement (income), net of expenses |
|
|
|
— |
|
|
|
|
|
(9,266 |
) |
| Operating (loss) income |
|
|
|
(3,103 |
) |
|
|
|
|
7,763 |
|
| Interest expense, net |
|
|
|
1,035 |
|
|
|
|
|
2,200 |
|
| Other income, net |
|
|
|
148 |
|
|
|
|
|
202 |
|
| (Loss) income before income taxes |
|
|
|
(4,286 |
) |
|
|
|
|
5,361 |
|
| (Benefit) provision for income taxes |
|
|
|
(2,556 |
) |
|
|
|
|
1,879 |
|
| Net (loss) income |
|
|
$ |
(1,730 |
) |
|
|
|
$ |
3,482 |
|
| Net income per share – basic and diluted |
|
|
$ |
(0.11 |
) |
|
|
|
$ |
0.23 |
|
| Weighted average shares outstanding – basic |
|
|
|
15,586 |
|
|
|
|
|
15,421 |
|
| Weighted average shares outstanding – diluted |
|
|
|
15,586 |
|
|
|
|
|
15,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated Balance Sheets
(in thousands) |
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2010 |
|
|
June 30, 2010 |
|
Assets
|
|
|
(unaudited) |
|
|
(audited) |
| Cash and equivalents |
|
|
$ |
15,554 |
|
|
$ |
15,710 |
| Trade receivables |
|
|
|
31,636 |
|
|
|
28,668 |
| Inventory |
|
|
|
21,379 |
|
|
|
20,839 |
| Prepaid expenses and other |
|
|
|
5,903 |
|
|
|
6,261 |
| Total current assets |
|
|
|
74,472 |
|
|
|
71,478 |
| Property, plant and equipment |
|
|
|
5,649 |
|
|
|
6,095 |
| Intangible assets |
|
|
|
31,954 |
|
|
|
31,201 |
| Other assets |
|
|
|
16,000 |
|
|
|
13,722 |
| Total assets |
|
|
$ |
128,075 |
|
|
$ |
122,496 |
|
|
|
|
|
|
|
| Liabilities |
|
|
|
|
|
|
| Loans payable |
|
|
$ |
6,156 |
|
|
$ |
4,525 |
| Current portion of long-term debt |
|
|
|
16,095 |
|
|
|
389 |
| Other current liabilities |
|
|
|
36,660 |
|
|
|
37,340 |
| Total current liabilities |
|
|
|
58,911 |
|
|
|
42,254 |
| Long-term debt |
|
|
|
2,132 |
|
|
|
16,066 |
| Other long-term liabilities |
|
|
|
12,070 |
|
|
|
12,427 |
| Total liabilities |
|
|
|
73,113 |
|
|
|
70,747 |
|
|
|
|
|
|
|
| Shareholders’ equity |
|
|
|
54,962 |
|
|
|
51,749 |
| Total liabilities and shareholders’ equity |
|
|
$ |
128,075 |
|
|
$ |
122,496 |
|
|
|
|
|
|
|
|
|
| Baldwin Technology Company, Inc.
Reconciliation of GAAP Results to Adjusted Results
(Unaudited, in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
| Quarter ended December 31, 2010 |
|
|
As Reported |
|
|
Adjustments |
|
|
As Adjusted |
|
Restructuring
|
|
|
$
|
455
|
|
|
|
$ |
(455 |
)(a)
|
|
|
$ |
—
|
(1)
|
| Operating loss |
|
|
|
(518 |
) |
|
|
|
455 |
|
|
|
|
(63 |
)(1) |
| Loss before income taxes |
|
|
|
(989 |
) |
|
|
|
455 |
|
|
|
|
(534 |
)(1) |
| Provision for income taxes |
|
|
|
(371 |
) |
|
|
|
152 |
|
|
|
|
(219 |
)(1) |
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
$ |
(618 |
) |
|
|
$ |
303 |
|
|
|
$ |
(315 |
)(1) |
|
|
|
|
|
|
|
|
|
|
|
Net loss per share:
|
|
|
|
($0.04 |
) |
|
|
$ |
0.02 |
|
|
|
|
($0.02
|
)(1)
|
|
Basic and Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Adjustment represents restructuring charges for the three month period.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA Calculation (1)
|
|
|
|
As Reported
|
|
|
Adjustments
|
|
|
As Adjusted
|
| Net (loss) income |
|
|
|
$
|
(618
|
)
|
|
|
$ |
303 |
|
|
$ |
(315 |
) |
| Add back: |
|
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for income taxes |
|
|
|
|
(371 |
) |
|
|
|
152 |
|
|
|
(219 |
) |
|
Interest, net |
|
|
|
|
495 |
|
|
|
|
— |
|
|
|
495 |
|
|
Depreciation and amortization |
|
|
|
|
786 |
|
|
|
|
— |
|
|
|
786 |
|
| EBITDA |
|
|
|
$ |
292 |
|
|
|
$ |
455 |
|
|
$ |
747 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter ended December 31, 2009
|
|
|
|
|
|
|
EBITDA Calculation (1)
|
|
|
|
|
As Reported
|
| Net loss |
|
|
|
|
$ (416
|
) |
| Add back: |
|
|
|
|
|
|
Provision for income taxes |
|
|
|
|
12
|
|
|
Interest, net |
|
|
|
|
485
|
|
|
Depreciation and amortization |
|
|
|
|
672
|
|
| EBITDA |
|
|
|
|
753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2010
|
|
|
As Reported
|
|
|
Adjustments
|
|
|
As Adjusted
|
|
Cost of goods sold
|
|
|
$ |
57,402 |
|
|
|
$ |
(243 |
)(a)
|
|
|
$ |
57,159
|
(1)
|
| Gross profit |
|
|
|
23,252 |
|
|
|
|
243 |
|
|
|
|
23,495
|
(1)
|
| Operating expenses |
|
|
|
25,708 |
|
|
|
|
(878 |
)(b) |
|
|
|
24,830
|
(1)
|
| Restructuring |
|
|
|
647 |
|
|
|
|
(647 |
)(c) |
|
|
|
—
|
(1)
|
| Operating (loss) income |
|
|
|
(3,103 |
) |
|
|
|
1,768 |
|
|
|
|
(1,335 |
)(1) |
| Interest expense, net |
|
|
|
1,035 |
|
|
|
|
(118 |
)(d) |
|
|
|
917
|
(1)
|
| (Loss) income before income taxes |
|
|
|
(4,286 |
) |
|
|
|
1,886 |
|
|
|
|
(2,400 |
)(1) |
| (Benefit) provision for income taxes |
|
|
|
(2,556 |
) |
|
|
|
646 |
|
|
|
|
(1,910 |
)(1) |
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
$ |
(1,730 |
) |
|
|
$ |
1,240 |
|
|
|
$ |
(490 |
)(1) |
| Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
|
($0.11 |
) |
|
|
|
$0.08
|
|
|
|
|
($0.03 |
)(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) Adjustment represents step up charge associated with Nordson acquisition.
(b) Adjustment represents non-routine termination costs for former CEO.
(c) Adjustment represents restructuring charges for the six month period.
(d) Adjustment represents non-routine charges for financing agreement changes. |
|
|
|
|
|
|
|
|
|
|
|
EBITDA Calculation (1)
|
|
|
As Reported
|
|
|
Adjustments
|
|
|
As Adjusted
|
| Net loss |
|
|
$
|
(1,730
|
)
|
|
|
$ |
1,240 |
|
|
|
$ |
(490 |
) |
| Add back: |
|
|
|
|
|
|
|
|
|
|
(Benefit) provision for income taxes
|
|
|
|
(2,556 |
) |
|
|
|
646 |
|
|
|
|
(1,910 |
) |
| Interest, net |
|
|
|
1,035 |
|
|
|
|
(118 |
) |
|
|
|
917 |
|
| Depreciation and amortization |
|
|
|
1,450 |
|
|
|
|
— |
|
|
|
|
1,450 |
|
| EBITDA |
|
|
$ |
(1,801 |
) |
|
|
$ |
1,768 |
|
|
|
$ |
(33 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended December 31, 2009
|
|
|
As Reported
|
|
|
Adjustments
|
|
|
As Adjusted
|
| Operating expenses |
|
|
$
|
23,581
|
|
|
|
$ |
911
|
(e)
|
|
|
$ |
22,670
|
(1)
|
| Legal settlement (income), net of expense |
|
|
|
(9,266 |
) |
|
|
|
(9,266)
|
(f)
|
|
|
|
—
|
(1)
|
| Operating income (loss) |
|
|
|
7,763 |
|
|
|
|
8,355 |
|
|
|
|
(592)
|
(1)
|
| Interest expense, net |
|
|
|
2,200 |
|
|
|
|
1,183
|
(g)
|
|
|
|
1,017
|
(1)
|
| Income (loss) before income taxes |
|
|
|
5,361 |
|
|
|
|
7,172 |
|
|
|
|
(1,811)
|
(1)
|
| Provision (benefit) for income taxes |
|
|
|
1,879 |
|
|
|
|
1,883 |
|
|
|
|
(4)
|
(1)
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) |
|
|
$ |
3,482 |
|
|
|
$ |
5,289 |
|
|
|
$ |
(1,807)
|
(1)
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
|
$ |
0.23 |
|
|
|
$ |
0.34 |
|
|
|
$ |
(0.12)
|
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (e) Adjustment represents non-routine charges for special investigation costs.
(f) Adjustment represents non-routine income associated with a legal settlement, net of expenses.
(g) Adjustment represents non-routine charges for debt financing costs. |
|
EBITDA Calculation (1)
|
|
|
As Reported
|
|
|
Adjustments
|
|
|
As Adjusted
|
| Net income (loss) |
|
|
3,482
|
|
|
5,289 |
|
|
(1,807 |
) |
| Add back: |
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
|
1,879 |
|
|
1,883 |
|
|
(4 |
) |
| Interest, net |
|
|
2,200 |
|
|
1,183 |
|
|
1,017 |
|
| Depreciation and amortization |
|
|
1,331 |
|
|
|
|
|
1,331 |
|
| EBITDA |
|
|
8,892 |
|
|
8,355 |
|
|
537 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Debt Calculation (1)
|
|
|
Dec 31, 2010
|
|
|
Sept 30, 2010
|
|
|
June 30, 2010
|
| Loans payable |
|
|
$
|
6,156
|
|
|
$ |
5,391 |
|
|
$ |
4,525 |
| Current portion of long-term debt |
|
|
|
16,095 |
|
|
|
389 |
|
|
|
389 |
| Long-term debt |
|
|
|
2,132 |
|
|
|
17,877 |
|
|
|
16,066 |
| Total Debt |
|
|
|
24,383 |
|
|
|
23,657 |
|
|
|
20,980 |
| Cash |
|
|
|
15,554 |
|
|
|
13,891 |
|
|
|
15,710 |
| Net debt |
|
|
$ |
8,829 |
|
|
$ |
9,766 |
|
|
$ |
5,270 |
(1) Restructuring, Cost of good sold, Gross profit, Operating expenses, Legal Settlement, Operating (loss) income, Income (loss) before income taxes, Provision for income taxes, Net income (loss) and Net income (loss) per share, as adjusted, as well as EBITDA (earnings before interest, taxes, depreciation and amortization) and Net Debt are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”) and should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Baldwin’s management believes that EBITDA and Net Debt and the other non-GAAP measures listed above provide meaningful supplemental information regarding Baldwin’s current financial performance and prospects for the future. Baldwin believes that both management and investors benefit from referring to these non-GAAP measures in assessing the performance of Baldwin’s ongoing operations and liquidity, and when planning and forecasting future periods. These non-GAAP measures also facilitate management’s internal comparisons to Baldwin’s historical operating results and liquidity. Our presentations of these measures, however, may not be comparable to similarly titled measures used by other companies.
MISSISSAUGA, ON – YM BioSciences Inc. (NYSE Amex: YMI, TSX: YM), a life sciences product development company advancing a diverse portfolio of promising hematology and cancer-related products at various stages of development, today reported operational and financial results for the second quarter of fiscal 2011, ended December 31, 2010.
“At the American Society of Hematology Annual Meeting in December 2010, we presented interim data from the Phase I/II trial of our JAK inhibitor, CYT387, in myelofibrosis. In addition to demonstrating positive efficacy signals in the approvable endpoints in this indication, splenomegaly and symptomatic improvement, CYT387 also exhibited a promising ability to positively impact anemia, a major life-shortening symptom associated with myelofibrosis. We now look forward to updated data from the full 140 patient clinical trial in calendar mid-2011 to further quantify these outcomes, including the durability of this compelling anemia response,” said Dr. Nick Glover, President and CEO of YM BioSciences. “We are encouraged by these data and accordingly are also reviewing development opportunities for the compound in other indications where the properties of our drug might benefit patients. During the quarter we raised net proceeds before expenses of $43.3 million, underscoring the shared desire our investors have for supporting the timely development this asset.”
Highlights from the second quarter:
CYT387:
- Mayo Clinic announced positive interim data from the first
60 patients enrolled in the Phase I/II trial for CYT387 in
myelofibrosis. The results were reported in an oral presentation at
the 52nd American Society of Hematology (ASH) Annual Meeting.
- The Overall Response Rate (spleen, anemia), as per the
International Working Group for Myeloproliferative Neoplasms
Research and Treatment (IWG-MRT) criteria, was 62%.
- Of the 53 evaluable subjects who had splenomegaly at baseline,
47% achieved a minimum 50% decrease in palpable spleen size,
qualifying for Clinical Improvement (CI) per IWG-MRT criteria.
- CYT387 controlled constitutional symptoms in a significant
percentage of patients (night sweats: 88%, bone pain 80%,
pruritus: 92%, fever: 100%).
- Of 42 subjects who were evaluable for anemia response, 50% had
achieved CI as per IWG-MRT criteria. A 57% response rate was
observed in transfusion-dependent patients.
- Full enrollment of 140 patients into the trial is anticipated in
calendar Q1 2011. To date, 111 patients have been enrolled into the
study. The Company anticipates that an additional set of updated
interim data will be reported in the second quarter of calendar 2011
and a full data set will be reported by the end of calendar 2011. The
Company is also working towards completing in calendar 2011 any
preclinical and manufacturing activities required to enable CYT387 to
commence a Phase III pivotal trial in calendar Q1 2012.
Nimotuzumab:
- Daiichi Sankyo Co., Ltd., CIMYM's licensee for nimotuzumab in Japan,
previously initiated a randomized trial with nimotuzumab in second
line gastric cancer, together with Kuhnil Pharma Co. Ltd., CIMYM's
licensee in Korea. Data from this trial were presented in January
2011 at the ASCO Gastrointestinal Cancers Symposium and demonstrated
an improvement in Progression Free Survival in a subset of patients
whose tumors were EGFR-positive. Should Daiichi Sankyo indicate an
interest in advancing nimotuzumab into a Phase III clinical trial in
gastric cancer, it could initiate in calendar 2012 subject to
achieving commercial-scale production. Daiichi Sankyo also launched a
Phase II trial in first-line treatment of advanced NSCLC for which YM
has been advised that recruitment has been completed, with data
expected during the first half of calendar 2011.
- Oncoscience AG (OSAG), CIMYM's licensee for Europe, has advised that
data from a Phase III trial in adult glioma patients may be reported
in the first half of calendar 2011. OSAG continues to recruit
patients into a Phase IIb/III trial in pancreatic cancer patients.
- YM's two randomized, Phase II, double-blind trials of nimotuzumab
(for brain metastasis from non-small cell lung cancer and for
palliative treatment of NSCLC) are lagging recruitment targets and
consequently these programs are under review as the Company focuses
support on the more advanced trials involving Daiichi Sankyo, which
have the prospect of earlier registration trial initiation. YM's
Phase II, second-line, single-arm study in children with progressive
diffuse intrinsic pontine glioma (DIPG) has concluded recruitment at
multiple sites in the US, Canada, and Israel and YM should report
results in calendar Q1 2011.
CYT997:
- CYT997 is a small molecule therapeutic capable of being developed in
IV and oral dose formulations with dual mechanisms of vascular
disruption and cytotoxicity. Preliminary data from YM's current Phase
I/II trial of CYT997 given IV in glioma patients are expected in
calendar H2 2011.
Financial Results (CDN dollars)
Total revenue for the second quarter of fiscal 2011, ended December 31, 2010, was $0.3 million compared to $0.7 million for the second quarter of fiscal 2010, ended December 31, 2009. Total revenue for the first six months of fiscal 2011, ended December 31, 2010, was $0.7 million compared to $1.4 million for the first six months of fiscal 2010, ended December 31, 2010. Interest income for the first quarter of fiscal 2011 was $83 thousand compared with $13 thousand for the second quarter of fiscal 2010.
Licensing and product development expenses were $5.3 million for the second quarter of fiscal 2011 compared to $2.4 million for the second quarter of fiscal 2010. Licensing and product development expenses were $10.5 million for the first six months of fiscal 2011 compared to $4.8 million for the first six months of fiscal 2010. The increases were due mainly to increases in salaries, travel and office expenses as a result of restructuring and the addition of the Australian office.
General and administrative expenses were $3.1 million for the second quarter of fiscal 2011 compared with $1.7 million for the second quarter of fiscal 2010. General and administrative expenses were $5.5 million for the first six months of fiscal 2011 compared with $3.5 million for the first six months of fiscal 2010. The increases were due mainly to higher stock-based compensation expense, restructuring costs, bonuses awarded and increased Board of Director fees and travel expenses as a result of additional meetings held during the year.
Net loss for the second quarter of fiscal 2011 was $8.4 million ($0.10 per share) compared to $3.4 million ($0.06 per share) for the same period last year. Net loss for the first six months of fiscal 2011 was $16.0 million ($0.19 per share) compared to $6.9 million ($0.12 per share) for the same period last year.
As at December 31, 2010, the Company had cash and short-term deposits totaling $78.7 million and accounts payables and accrued liabilities totaling $4.9 million compared to $45.6 million and $2.8 million respectively, at June 30, 2010. Management believes that the cash and short-term deposits at December 31, 2010 are sufficient to support the Company’s activities for at least the next twelve months.
As at December 31, 2010 the Company had 109,956,275 common shares and 7,639,137 warrants outstanding.
About YM BioSciences
YM BioSciences Inc. is a drug development company advancing three clinical-stage products: CYT387, a small molecule, dual inhibitor of the JAK1/JAK2 kinases; nimotuzumab, an EGFR-targeting monoclonal antibody; and CYT997, a potent vascular disrupting agent (VDA).
CYT387 is an orally administered inhibitor of both the JAK1 and JAK2 kinases, which have been implicated in a number of immune cell disorders including myeloproliferative neoplasms and inflammatory diseases as well as certain cancers. CYT387 is currently in a Phase I/II trial in myelofibrosis. Nimotuzumab is a humanized monoclonal antibody targeting EGFR with an enhanced side effect profile. Nimotuzumab is being evaluated in numerous Phase II and III trials worldwide by YM’s licensees. CYT997 is an orally-available small molecule therapeutic with dual mechanisms of vascular disruption and cytotoxicity, and is currently in a Phase II trial for glioblastoma multiforme. In addition to YM’s three clinical stage products, the Company has a library of more than 4,000 novel compounds identified through internal research conducted at YM BioSciences Australia which are currently being evaluated.
This press release may contain forward-looking statements, which reflect the Company’s current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process or the ability to obtain drug product in sufficient quantity or at standards acceptable to health regulatory authorities to complete clinical trials or to meet commercial demand; and other risks detailed from time to time in the Company’s ongoing quarterly and annual reporting. Certain of the assumptions made in preparing forward-looking statements include but are not limited to the following: that nimotuzumab will continue to demonstrate a competitive safety profile in ongoing and future clinical trials; that our JAK1/JAK2 inhibitor CYT387 and our VDA small molecule CYT997 will generate positive efficacy and safety data in future clinical trials; that YM and its various partners will complete their respective clinical trials within the timelines communicated in this release. Except as required by applicable securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Summary financial statements attached:
YM BIOSCIENCES INC.
Interim Consolidated Balance Sheets
(Expressed in Canadian dollars, unless otherwise noted)
-------------------------------------------------------------------------
December 31, June 30,
2010 2010
-------------------------------------------------------------------------
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $ 25,261,196 $ 19,460,141
Short-term deposits 53,451,681 26,184,991
Accounts receivable 203,163 161,184
Prepaid expenses 494,678 237,962
-----------------------------------------------------------------------
79,410,718 46,044,278
Property and equipment 109,065 84,775
Intangible assets 9,391,706 11,645,714
-------------------------------------------------------------------------
$ 88,911,489 $ 57,774,767
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 1,411,962 $ 699,277
Accrued liabilities 3,524,184 2,085,824
Deferred revenue 594,072 1,523,916
-----------------------------------------------------------------------
5,530,218 4,309,017
Deferred revenue 2,128,758 1,650,909
Shareholders' equity:
Share capital 248,203,430 203,498,239
Share purchase warrants 1,378,324 1,473,246
Contributed surplus 14,916,826 14,088,671
Deficit (183,246,067) (167,245,315)
-----------------------------------------------------------------------
81,252,513 51,814,841
Basis of presentation
Commitments
-------------------------------------------------------------------------
$ 88,911,489 $ 57,774,767
-------------------------------------------------------------------------
-------------------------------------------------------------------------
YM BIOSCIENCES INC.
Interim Consolidated Statements of Operations and Comprehensive Loss
and Deficit
(Expressed in Canadian dollars, unless otherwise noted)
-------------------------------------------------------------------------
Three months ended Six months ended
December 31, December 31,
2010 2009 2010 2009
-------------------------------------------------------------------------
(Unaudited) (Unaudited)
Out-licensing
revenue $ 251,417 $ 687,222 $ 593,773 $ 1,411,910
Interest
income 82,740 13,174 138,375 32,293
-------------------------------------------------------------------------
334,157 700,396 732,148 1,444,203
Expenses:
Licensing
and product
development 5,289,150 2,372,946 10,498,331 4,808,994
General and
adminis-
trative 3,099,952 1,699,330 5,517,058 3,483,762
-----------------------------------------------------------------------
8,389,102 4,072,276 16,015,389 8,292,756
-------------------------------------------------------------------------
Loss before the
undernoted (8,054,945) (3,371,880) (15,283,241) (6,848,553)
Loss on foreign
exchange (603,528) (7,130) (1,010,362) (33,877)
Gain (loss) on
short-term
deposits 4,152 (6,888) 11,123 (9,106)
Gain on disposal
of property and
equipment - - 10,744 -
Other income 270,984 10,361 270,984 13,211
-------------------------------------------------------------------------
(328,392) (3,657) (717,511) (29,772)
-------------------------------------------------------------------------
Loss and
comprehensive
loss for the
period (8,383,337) (3,375,537) (16,000,752) (6,878,325)
Deficit,
beginning of
period (174,862,730) (149,754,739) (167,245,315) (146,251,951)
-------------------------------------------------------------------------
Deficit, end
of period $(183,246,067) $(153,130,276) $(183,246,067) $(153,130,276)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Basic and
diluted loss
per common
share $ (0.10) $ (0.06) $ (0.19) $ (0.12)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted
average number
of common
shares
outstanding 85,323,592 55,888,710 82,853,129 55,862,879
-------------------------------------------------------------------------
-------------------------------------------------------------------------
YM BIOSCIENCES INC.
Interim Consolidated Statements of Cash Flows
(Expressed in Canadian dollars, unless otherwise noted)
-------------------------------------------------------------------------
Three months ended Six months ended
December 31, December 31,
2010 2009 2010 2009
-------------------------------------------------------------------------
(Unaudited) (Unaudited)
Cash provided by
(used in):
Operating
activities:
Loss for the
period $ (8,383,337) $ (3,375,537) $ (16,000,752) $ (6,878,325)
Items not
involving
cash:
Amortiza-
tion of
property
and
equipment 19,789 17,331 39,147 33,583
Amortiza-
tion of
intangible
assets 1,127,004 265,135 2,254,008 530,271
Unrealized
loss (gain)
on short-
term
deposits (4,152) 6,888 (11,123) 9,106
Gain on
disposal
of property
and equipment - - (10,744) -
Stock-based
compensation 399,475 118,046 999,935 514,690
Change in
non-cash
operating
working
capital:
Accounts
receivable
and prepaid
expenses (407,406) 87,560 (298,695) 333,595
Accounts
payable,
accrued
liabili-
ties and
deferred
revenue 1,364,785 (722,825) 1,699,050 (727,675)
-----------------------------------------------------------------------
(5,883,842) (3,603,402) (11,329,174) (6,184,755)
Financing
activities:
Issuance of
common shares
on exercise
of options 238,809 51,165 253,809 62,589
Issue of
common shares
on exercise
of warrants 850,159 - 850,159 -
Net proceeds
from issuance
of shares 43,334,522 - 43,334,522 -
-----------------------------------------------------------------------
44,423,490 51,165 44,438,490 62,589
Investing
activities:
Short-term
deposits (28,374,371) 25,422 (27,255,567) 34,530,291
Property and
equipment - (13,974) (52,694) (17,537)
-----------------------------------------------------------------------
(28,374,371) 11,448 (27,308,261) 34,512,754
-------------------------------------------------------------------------
Increase
(decrease) in
cash and cash
equivalents 10,165,277 (3,540,789) 5,801,055 28,390,588
Cash and cash
equivalents,
beginning of
period 15,095,919 34,269,093 19,460,141 2,337,716
-------------------------------------------------------------------------
Cash and cash
equivalents,
end of period $ 25,261,196 $ 30,728,304 $ 25,261,196 $ 30,728,304
-------------------------------------------------------------------------
-------------------------------------------------------------------------
DUBLIN, Calif., Feb. 10, 2011 /PRNewswire/ — Taleo Corporation (Nasdaq: TLEO), the leading provider of on-demand talent management solutions, announced unmatched momentum in the small and mid-sized business markets with the success of Taleo Business Edition.
The company reported record-breaking growth in new business with over 900 new customers, a greater than 50 percent increase over the previous year. Taleo sales records signify that smaller businesses continue to embrace talent management solutions once solely the hallmark of Enterprise-level organizations.
Taleo’s rapid growth spanned the healthcare, retail, hospitality, entertainment, public sector and manufacturing markets with employers that range in size from one to 5,000 employees. New 2010 customers included ARMA Global, Chesapeake Government Health Services, Chicago Public Media, Coveo Solutions, Cycling Sports Group, Father Flanagan’s Boys’ Home in Nebraska, KeyLime Cove Waterpark Resort and Spa (Gurnee Waterpark, LLC), Perisher Ski Resort, The Boys & Girls Club of Scottsdale, The Country Vintner, Yukon Kuskokwim Health Corporation and others.
“With Taleo, we went from a chaotic mess of incoming online applications to a well-organized and efficient system for managing, organizing and searching through applicants and resumes,” said Courtney M. Meyer, Human Resources Manager, KeyLime Cove Indoor Waterpark Resort. “Taleo allows us the flexibility to customize our application content and process to our unique culture and specific job needs. The implementation was seamless and their customer support is timely, efficient and satisfying. We can’t imagine the process without the Taleo system.”
New quarterly product offerings in 2010 and the acquisition of Learn.com further sealed Taleo’s commitment to providing small businesses with a fully-integrated talent management suite of recruiting, performance, succession, compensation and learning capabilities.
Taleo Insight was launched, providing new reporting and analysis capabilities including more comprehensive standard reports, ad-hoc reporting with a custom report builder, dashboards, scheduling and security features to control access to confidential information. Taleo Business Edition gained new sourcing capabilities with the introduction of Taleo Talent Exchange™, the leading community marketplace for helping recruiters secure high quality candidates across multiple industries and disciplines. Additionally, Taleo Business Edition also added 360-degree multi-rater reviews to its Performance Management platform. With 360-degree reviews, employees can gather more comprehensive feedback with assessments from subordinates, peers and supervisors.
“Small and mid-sized employers are at the heart of the economic recovery, and they realize their future success depends primarily on employees—their biggest investment,” said Michael Boese, Senior Vice President, SMB and Talent Grid, at Taleo. “Taleo Business Edition is leaving the competition behind because we’re not only helping our customers build the right foundation for managing today’s talent, but also plan ahead for continued success.”
Taleo’s momentum also included the acquisition of Learn.com, a leading next generation provider of social and formal learning solutions. With the purchase Taleo became the industry’s only company to offer best-in-class solutions across all four pillars of a talent-optimized organization: recruiting, performance, compensation and learning management.
About Taleo
Taleo’s (NASDAQ: TLEO) cloud-based talent management platform unites products and an ecosystem to drive business performance through talent intelligence. Approximately 5,100 customers use Taleo for talent acquisition, performance, learning, and compensation management, including 47 of the Fortune 100. Further, Taleo’s Talent Grid cloud community harnesses the expertise of Taleo customers, more than 200 million candidates, and 140 partners and industry experts.
Forward-looking Statements
This release contains forward-looking statements, including statements regarding the demand for and results from use of Taleo’s solutions and general business conditions. Any forward-looking statements contained in this press release are based upon Taleo’s historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Taleo’s expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Taleo disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Further information on potential factors that could affect actual results is included in Part II, Item 1A of Taleo’s Quarterly Report on Form 10-Q, as filed with the SEC on November 5, 2010, and in other reports filed by Taleo with the SEC.
SOURCE Taleo Corporation
Source: PR Newswire (February 10, 2011 – 9:01 AM EST)
VANCOUVER, British Columbia, Feb. 10, 2011 (GLOBE NEWSWIRE) — LML PAYMENT SYSTEMS INC. (“LML”) (Nasdaq:LMLP), a leading technology provider of financial payment solutions for e-commerce and traditional businesses, reports results for its third quarter and nine month period ended December 31, 2010.
Revenue for the third quarter ended December 31, 2010 was $11,060,000, an increase of 133% over the $4,743,000 in revenue for the third quarter ended December 31, 2009. GAAP net income for the quarter was $2,119,000, or $0.08 per share, compared to a GAAP net loss of $396,000, or $(0.02) per share, for the third quarter ended December 31, 2009, an improvement of $2,515,000 or $0.10 per share. Cash provided by operating activities was $4,420,000 compared to $75,000 last year.
Non-GAAP net income was $2,679,000, or $0.10 per share, compared to $87,000, or $0.00 per share, for the third quarter last year. Non-GAAP net income excludes stock-based compensation, depreciation and amortization, and other non-cash items. A reconciliation of GAAP to non-GAAP financial measures is attached.
Revenue for the nine month period ended December 31, 2010 was $22,010,000, an increase of 96% from revenue of $11,230,000 for the nine month period ended December 31, 2009. GAAP net income for the same period was $3,019,000 or $0.11 per share, compared to GAAP net income of $59,000 or $0.00 per share, for the same period during fiscal 2009, an improvement of $2,960,000 or $0.11 per share.
Non-GAAP net income for the nine month period ended December 31, 2010 was $4,587,000, or $0.16 per share, compared to $1,449,000, or $0.05 per share, for the same period last year.
“We are pleased to announce these results for the third quarter and first nine month period of our fiscal year. All three of our business segments reported increased revenue and profitable results. Our Transaction Payment Processing segment continued to grow impressively at 30%. Our check business increased revenue by 22% and our Intellectual Property segment grew revenue by 350% during the last quarter. We are encouraged by these results and the impact of aligning our business segments; our products and services; and our customers’ needs, as an increasing number of payments transition to electronic forms and are increasingly conducted over the Internet,” said Patrick H. Gaines, Chief Executive Officer.
Q3 Highlights
- Overall revenue increased 133%
- Transaction Payment Processing segment adds 406 new merchants and increases revenue by 30%
- Intellectual Property segment settles litigation and licenses 5 defendants from Eastern District of Texas case
- Net income of $2,119,000 compared to a net loss of $396,000 last year
- Cash provided by operating activities of $4,420,000 compared to $75,000 last year
- EPS increased to $0.08
9 Month Highlights
- Overall revenue increased 96%
- Transaction Payment Processing segment revenue increased 30%
- Intellectual Property segment settles litigation with 8 defendants in Eastern District of Texas case
- Net income of $3,019,000 compared to $59,000 last year
- Cash provided by operating activities of $6,612,000 compared to $175,000 last year
- EPS increased to $0.11
Conference Call
Management will host a conference call tomorrow, February 11, 2011, at 1:30 pm Pacific Time (4:30 pm Eastern Time) to discuss these results. To participate in the conference call, please dial in 5-10 minutes before the start of the call and follow the operator’s instruction. If you are calling from the United States or Canada, please dial 1-800-916-9263. International callers please dial 1-212-231-2907.
If you are unable to join the call, an audio recording of the call will be available on our website at www.lmlpayment.com.
About LML Payment Systems Inc. (www.lmlpayment.com)
LML Payment Systems Inc., through its Canadian subsidiary Beanstream Internet Commerce Inc., and its U.S. subsidiaries Beanstream Internet Commerce Corp. and LML Payment Systems Corp., is a leading provider of financial payment processing solutions for e-commerce and traditional businesses. We provide credit card processing, online debit, electronic funds transfer, automated clearinghouse payment processing and authentication services, along with routing of selected transactions to third party processors and banks for authorization and settlement. Our intellectual property estate, owned by subsidiary LML Patent Corp., includes U.S. Patent No. RE40,220, No. 6,354,491, No. 6,283,366, No. 6,164,528, and No. 5,484,988 all of which relate to electronic check processing methods and systems. For more information about the Corporation please visit our interactive website at www.lmlpayment.com or email info@lmlpayment.com.
GAAP versus Non-GAAP Financial Information
In addition to GAAP financial measures, the Corporation has provided supplemental non-GAAP financial measures of net income and earnings per share, which exclude certain non-cash and non-recurring items. For purposes of this news release, non-GAAP net income and earnings per share exclude stock-based compensation expense under CICA 3870 and the FASB authoritative guidance regarding share-based payment, depreciation and amortization expense, and certain non-cash items. A reconciliation of adjustments of non-GAAP to GAAP results for the third quarter and nine month period and prior periods is included in the enclosed table. The Corporation believes that non-GAAP financial measures are useful in assessing operating performance as they provide an additional basis to evaluate our ability to incur and service debt and to fund capital expenditures. The Corporation believes the non-GAAP financial measures provide investors with similar measurement tools as its management uses to evaluate performance. Specifically, the Corporation’s management utilizes and relies upon certain financial reports which consist of an operating performance indicator without certain non-cash items such as amortization and depreciation and stock-based compensation to evaluate the Corporation’s operational performance as it pertains to generating cash, measuring budget expectations and achieving performance milestones. Non-GAAP financial measures are not meant to be considered in isolation and should not be considered as alternatives to financial information prepared in accordance with GAAP. Furthermore, our method of calculating the non-GAAP financial measures presented in this news release may differ from methods used by other companies, and as a result, the non-GAAP financial measures disclosed herein may not be comparable to other similarly titled measures used by other companies.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all passages containing verbs such as “aims,” “anticipates,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects” or “targets” or nouns corresponding to such verbs. Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect LML’s actual results include, among others, the impact, if any, of stock-based compensation charges, the potential failure to establish and maintain strategic relationships, inability to integrate recent and future acquisitions, inability to develop new products or product enhancements on a timely basis, inability to protect our proprietary rights or to operate without infringing the patents and proprietary rights of others, and quarterly and seasonal fluctuations in operating results. More information about factors that potentially could affect LML’s financial results is included in LML’s quarterly reports on Form 10-Q and our most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, LML undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
| LML PAYMENT SYSTEMS INC. |
| CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT |
| (In U.S. Dollars, except share data) |
| (Unaudited) |
|
|
Three Months Ended
December 31 |
Nine months Ended
December 31 |
|
|
|
|
|
|
2010 |
2009 |
2010 |
2009 |
|
|
|
|
|
| REVENUE |
$11,060,030 |
$4,742,568 |
$22,010,200 |
$11,229,773 |
| COST OF REVENUE (includes stock-based compensation (“s.b.c.”)
expense of $18,773 for three months ended December 31, 2010 (2009
– $37,464) and $101,460 for nine months ended December 31, 2010
(2009 – $113,579)) |
5,017,906 |
2,329,810 |
10,758,827 |
5,670,576 |
| GROSS PROFIT (excludes amortization and depreciation expense) |
6,042,124 |
2,412,758 |
11,251,373 |
5,559,197 |
|
|
|
|
|
| OPERATING EXPENSES |
|
|
|
|
| General and administrative (includes s.b.c. expense of $211,254 for
three months ended December 31, 2010 (2009 – $243,028) and
$691,751 for nine months ended December 31, 2010 (2009 –
$781,386)) |
1,179,386 |
1,059,165 |
3,346,474 |
3,083,629 |
| Sales and marketing (includes s.b.c. expense of $16,779 for three
months ended December 31, 2010 (2009 – $765) and $32,589 for
nine months ended December 31, 2010 (2009 – $2,277)) |
191,754 |
103,481 |
453,177 |
296,084 |
| Product development and enhancement (includes s.b.c. expense of
$14,891 for three months ended December 31, 2010 (2009 –
$12,233) and $46,165 for nine months ended December 31, 2010
(2009 – $36,434)) |
137,311 |
122,759 |
410,888 |
342,585 |
| Amortization of property and equipment |
30,514 |
34,702 |
97,847 |
99,748 |
| Amortization of intangible assets |
165,644 |
165,644 |
496,932 |
497,182 |
| Gain on sale of assets |
— |
— |
— |
(3,830) |
|
|
|
|
|
| INCOME BEFORE OTHER INCOME (EXPENSES) AND INCOME
TAXES |
4,337,515 |
927,007 |
6,446,055 |
1,243,799 |
|
|
|
|
|
| Foreign exchange (loss) gain |
(102,369) |
10,928 |
(101,298) |
135,296 |
| Other expenses |
(626) |
— |
(5,464) |
(50,641) |
| Interest income |
16,873 |
4,285 |
29,170 |
20,549 |
| Interest expense |
— |
(846) |
— |
(47,676) |
|
|
|
|
|
| INCOME BEFORE INCOME TAXES |
4,251,393 |
941,374 |
6,368,463 |
1,301,327 |
| Income tax expense (recovery) |
|
|
|
|
| Current |
1,281,285 |
(324,275) |
983,532 |
(323,647) |
| Future |
850,875 |
1,661,740 |
2,366,354 |
1,565,586 |
|
2,132,160 |
1,337,465 |
3,349,886 |
1,241,939 |
|
|
|
|
|
| NET INCOME (LOSS) |
2,119,233 |
(396,091) |
3,018,577 |
59,388 |
|
|
|
|
|
| DEFICIT, beginning of period |
(27,977,938) |
(28,295,977) |
(28,877,282) |
(28,751,456) |
|
|
|
|
|
| DEFICIT, end of period |
$(25,858,705) |
$(28,692,068) |
$(25,858,705) |
$(28,692,068) |
|
|
|
|
|
| EARNINGS (LOSS) PER SHARE, basic |
$0.08 |
$(0.02) |
$0.11 |
$– |
|
|
|
|
|
| EARNINGS (LOSS) PER SHARE, diluted |
$0.08 |
$(0.02) |
$0.11 |
$– |
|
|
|
|
|
| WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
|
|
| Basic |
27,253,886 |
27,116,408 |
27,252,620 |
27,116,408 |
| Diluted |
28,285,669 |
27,252,792 |
27,707,532 |
27,150,430 |
|
| LML PAYMENT SYSTEMS INC. |
| RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES |
| (In U.S. Dollars) |
| (Unaudited) |
|
|
Three Months Ended
December 31 |
Nine Months Ended
December 31 |
|
|
|
|
|
|
2010 |
2009 |
2010 |
2009 |
|
|
|
|
|
| GAAP Net Income (Loss) |
$2,119,233 |
$(396,091) |
$3,018,577 |
$59,388 |
|
|
|
|
|
| Add stock-based compensation |
261,697 |
293,490 |
871,965 |
931,676 |
| Add amortization of property and equipment |
30,514 |
34,702 |
97,847 |
99,748 |
| Add amortization of intangible assets |
165,644 |
165,644 |
496,932 |
497,182 |
| Add foreign exchange loss (gain) |
102,369 |
(10,928) |
101,298 |
(135,296) |
| Less gain on sale of capital assets |
— |
— |
— |
(3,830) |
|
|
|
|
|
| Non-GAAP Net Income |
$2,679,457 |
$86,817 |
$4,586,619 |
$1,448,868 |
|
|
|
|
|
|
|
|
|
|
| GAAP Earnings (Loss) Per Share, basic |
$0.08 |
$(0.02) |
$0.11 |
$– |
|
|
|
|
|
| Add stock-based compensation |
0.01 |
0.01 |
0.03 |
0.03 |
| Add amortization of property and equipment |
0.00 |
0.00 |
0.00 |
0.00 |
| Add amortization of intangible assets |
0.01 |
0.01 |
0.02 |
0.02 |
| Add foreign exchange loss (gain) |
0.00 |
(0.00) |
0.00 |
(0.00) |
| Less gain on sale of capital assets |
— |
— |
— |
(0.00) |
|
|
|
|
|
| Non-GAAP Earnings Per Share, basic |
$0.10 |
$– |
$0.16 |
$0.05 |
|
|
|
|
|
|
|
|
|
|
| GAAP Earnings (Loss) Per Share, diluted |
$0.08 |
$(0.02) |
$0.11 |
$– |
|
|
|
|
|
| Add stock-based compensation |
0.01 |
0.01 |
0.03 |
0.03 |
| Add amortization of property and equipment |
0.00 |
0.00 |
0.00 |
0.00 |
| Add amortization of intangible assets |
0.01 |
0.01 |
0.02 |
0.02 |
| Add foreign exchange loss (gain) |
0.00 |
(0.00) |
0.00 |
(0.00) |
| Less gain on sale of capital assets |
— |
— |
— |
(0.00) |
|
|
|
|
|
| Non-GAAP Earnings Per Share, diluted |
$0.10 |
$– |
$0.16 |
$0.05 |
| |
|
|
| LML PAYMENT SYSTEMS INC. |
| CONSOLIDATED BALANCE SHEETS |
| (In U.S. Dollars, except as noted below) |
| (Unaudited) |
| |
|
|
| |
December 31, 2010 |
March 31, 2010 |
| ASSETS |
|
|
| Current Assets |
|
|
| Cash and cash equivalents |
$11,779,289 |
$5,069,763 |
| Funds held for merchants |
8,175,053 |
5,804,752 |
| Restricted cash |
175,000 |
175,000 |
| Accounts receivable, less allowances of
$31,339 and $31,463, respectively |
1,141,865 |
799,584 |
| Corporate taxes receivable |
1,632,383 |
1,072,930 |
| Prepaid expenses |
276,114 |
416,507 |
| Current portion of future income tax assets |
527,824 |
1,280,860 |
| Total current assets |
23,707,528 |
14,619,396 |
|
|
|
| Property and equipment, net |
166,288 |
219,580 |
| Patents, net |
329,734 |
455,304 |
| Restricted cash |
258,556 |
255,247 |
| Future income tax assets |
817,480 |
2,406,473 |
| Other assets |
20,822 |
20,641 |
| Goodwill |
17,874,202 |
17,874,202 |
| Other intangible assets, net |
4,338,975 |
4,710,337 |
|
|
|
| TOTAL ASSETS |
$47,513,585 |
$40,561,180 |
|
|
|
| LIABILITIES |
|
|
| Current Liabilities |
|
|
| Accounts payable |
$1,309,644 |
$836,274 |
| Accrued liabilities |
849,814 |
1,040,443 |
| Corporate taxes payable |
1,076,558 |
— |
| Funds due to merchants |
8,175,053 |
5,804,752 |
| Current portion of obligations under capital lease |
2,460 |
11,195 |
| Current portion of deferred revenue |
1,314,733 |
1,325,983 |
| Total current liabilities |
12,728,262 |
9,018,647 |
|
|
|
| Obligations under capital lease |
9,225 |
9,840 |
|
|
|
| Deferred revenue |
1,274,961 |
2,155,162 |
|
|
|
| TOTAL LIABILITIES |
14,012,448 |
11,183,649 |
| Commitments and Contingencies |
|
|
| SHAREHOLDERS’ EQUITY |
|
|
| Capital Stock |
|
|
| Class A, preferred stock, $1.00 CDN par value,
150,000,000 shares authorized, issuable in
series, none issued or outstanding |
— |
— |
|
|
|
| Class B, preferred stock, $1.00 CDN par value,
150,000,000 shares authorized, issuable in
series, none issued or outstanding |
— |
— |
|
|
|
| Common shares, no par value, 100,000,000
shares authorized, 27,293,984 and 27,241,408
issued and outstanding, respectively |
50,284,080 |
50,152,385 |
| |
|
|
| Contributed surplus |
8,784,979 |
7,952,343 |
| Deficit |
(25,858,705) |
(28,877,282) |
| Accumulated other comprehensive income |
290,783 |
150,085 |
| Total shareholders’ equity |
33,501,137 |
29,377,531 |
|
|
|
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$47,513,585 |
$40,561,180 |
|
| LML PAYMENT SYSTEMS INC. |
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
| (In U.S. Dollars) |
| (Unaudited) |
|
|
Three Months Ended
December 31 |
Nine months Ended
December 31 |
|
|
|
|
|
|
2010 |
2009 |
2010 |
2009 |
| |
|
|
|
|
| Operating Activities: |
|
|
|
|
| Net income (loss) |
$2,119,233 |
$(396,091) |
$3,018,577 |
$59,388 |
| Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities |
|
|
|
|
| Provision for losses on accounts receivable |
— |
— |
— |
5,705 |
| Amortization of property and equipment |
30,514 |
34,702 |
97,847 |
99,748 |
| Amortization of intangible assets |
165,644 |
165,644 |
496,932 |
497,182 |
| Gain on sale of assets |
— |
— |
— |
(3,830) |
| Stock-based compensation |
261,697 |
293,490 |
871,965 |
931,676 |
| Stock-based compensation – future income taxes |
24,325 |
— |
24,325 |
— |
| Future income taxes |
826,550 |
1,661,740 |
2,342,029 |
1,565,586 |
| Foreign exchange gain |
(730) |
(52,253) |
(2,226) |
(331,716) |
|
|
|
|
|
| Changes in non-cash operating working capital |
|
|
|
|
| Funds held in trust |
361,684 |
(718,093) |
— |
(718,093) |
| Restricted cash |
— |
(100,000) |
— |
(100,000) |
| Accounts receivable |
(196,246) |
(145,436) |
(319,316) |
71,714 |
| Corporate taxes receivable |
(69,898) |
(432,147) |
(496,025) |
(582,863) |
| Prepaid expenses |
152,522 |
152,228 |
142,697 |
3,202 |
| Accounts payable and accrued liabilities |
9,061 |
(4,503) |
252,771 |
(70,949) |
| Corporate taxes payable |
1,076,558 |
(6,991) |
1,076,558 |
(327,673) |
| Deferred revenue |
(341,216) |
(377,545) |
(893,994) |
(923,947) |
| Net cash provided by operating activities |
4,419,698 |
74,745 |
6,612,140 |
175,130 |
|
|
|
|
|
| Investing Activities: |
|
|
|
|
| Acquisition of property and equipment |
(14,717) |
(75,497) |
(44,998) |
(90,017) |
| Proceeds from disposal of property and equipment |
— |
— |
— |
3,830 |
| Net cash used in investing activities |
(14,717) |
(75,497) |
(44,998) |
(86,187) |
| |
|
|
|
|
| Financing Activities: |
|
|
|
|
| Payments on capital leases |
— |
(39,552) |
(9,202) |
(140,882) |
| Payment on promissory notes |
— |
— |
— |
(2,321,460) |
| Proceeds from exercise of stock options |
68,040 |
— |
68,040 |
— |
| Net cash provided by (used in) financing activities |
68,040 |
(39,552) |
58,838 |
(2,462,342) |
|
|
|
|
|
| Effects of foreign exchange rate changes on cash and cash equivalents |
84,236 |
16,457 |
83,546 |
214,356 |
| |
|
|
|
|
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
4,557,257 |
(23,847) |
6,709,526 |
(2,159,043) |
| |
|
|
|
|
| Cash and cash equivalents, beginning of period |
7,222,032 |
4,003,334 |
5,069,763 |
6,138,530 |
| |
|
|
|
|
| Cash and cash equivalents, end of period |
$11,779,289 |
$3,979,487 |
$11,779,289 |
$3,979,487 |
| |
|
|
|
|
| Supplemental disclosure of cash flow information |
|
|
|
|
| Interest paid |
$– |
$846 |
$– |
$47,939 |
| Taxes paid |
$137,000 |
$– |
$137,000 |
$435,138 |
CONTACT: Patrick H. Gaines
Chairman and CEO
(604) 689-4440
Investor Relations
(800) 888-2260
Feb. 10, 2011 (Business Wire) — IPG Photonics Corporation (NASDAQ: IPGP) today announced preliminary financial results for the fourth quarter ended December 31, 2010. The Company expects sales for the fourth quarter of 2010 to be approximately $100 million compared with the previously guided range of $80 to $86 million, and earnings per diluted share to be in a range of $0.53 to $0.56 compared with previous guidance of between $0.30 and $0.35. For the fourth quarter of 2009, IPG reported sales of $54.3 million and earnings per share of $0.07. As IPG Photonics’ year-end audit is not complete, these preliminary results are subject to adjustments from the audit.
“We expect to report more than 80% year-over-year growth in revenues and a seven-fold increase in earnings per share for the fourth quarter of 2010,” said Dr. Valentin Gapontsev, IPG Photonics’ Chief Executive Officer. “Our exceptional sales performance this quarter was driven by broad-based demand strength. Geographically, China and Europe were the stand-out performers for the quarter, although we experienced significant year-over-year sales increases across nearly all regions. Materials processing, communications and advanced applications were the strongest end markets and high-power and pulsed lasers both reported triple-digit year-over-year growth. Our expected bottom-line increase was due to the excellent leverage in our business model, resulting in further improvements in gross and operating margins.”
“We continue to see strong order flow into Q1 and expect the first quarter to show robust quarterly year-over-year revenue and earnings growth, even after taking into account historical seasonal patterns which typically result in lower sequential quarterly revenue in Q1. We enter 2011 with great momentum and expect to continue to capitalize on the demand for our fiber lasers and benefit from the leverage in our business model,” concluded Gapontsev.
IPG Photonics expects to provide revenue and earnings per share guidance for the first quarter of 2011 when it announces its financial results for the fourth quarter and full year 2010 on Friday, February 25, 2011.
Chief Financial Officer, Tim Mammen, will be presenting at Stifel Nicolaus’ 9th Annual Technology, Communications & Internet Conference on Friday, February 11, 2011 at 8:00 a.m. PT/11:00 a.m. ET. A live audio webcast of the presentation will be available through the “Investors” section of IPG’s website at www.ipgphotonics.com. For those unable to listen to the live webcast, an archive of the presentation will be available on the Company’s website for approximately 90 days.
About IPG Photonics Corporation
IPG Photonics Corporation is the world leader in high-power fiber lasers and amplifiers. Founded in 1990, IPG pioneered the development and commercialization of optical fiber-based lasers for use in a wide range of applications such as materials processing, advanced, telecommunications and medical. Fiber lasers have revolutionized the industry by delivering superior performance, reliability and usability at a lower total cost of ownership compared with conventional lasers, allowing end users to increase productivity and decrease operating costs. IPG has its headquarters in Oxford, Massachusetts, and has additional plants and offices throughout the world. For more information, please visit www.ipgphotonics.com.
Safe Harbor Statement
Information and statements provided by the Company and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, the Company’s expectations for revenue and earnings per share for the fourth quarter of 2010 and its expectations for robust year-over-year revenue and earnings growth in the first quarter of 2011. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of the business conditions in industries and geographic markets that the Company serves, particularly the effect of economic downturns; reduction in customer capital expenditures; potential order cancellations and push-outs and financial and credit market issues; the Company’s ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG’s products; effective management of growth; level of fixed costs from its vertical integration; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; inventory write-downs; foreign currency fluctuations; competitive factors, including declining average selling prices; building and expanding field service and support operations; uncertainties pertaining to customer orders; demand for products and services; development of markets for the Company’s products and services; and other risks identified in the Company’s SEC filings. Readers are encouraged to refer to the risk factors described in the Company’s Annual Report on Form 10-K (filed with the SEC on March 12, 2009) and its periodic reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
IPG Photonics Corporation
Tim Mammen, 508-373-1100
Chief Financial Officer
or
Sharon Merrill Associates, Inc.
David Calusdian, 617-542-5300
Executive Vice President
VANCOUVER, BRITISH COLUMBIA–(Marketwire – 02/08/11) – Exeter Resource Corporation (TSX:XRC)(AMEX:XRA)(Frankfurt:EXB) (“Exeter” or the “Company”) is pleased to announce that it has optioned water rights to a total volume of 300 litres per second from a private Chilean company. The rights relate to surface water flows and are consumptive in nature. The option agreement provides for staged payments deductible from a purchase price of US$15 million. The Company can withdraw from the option at any time without penalty.
The Company has also applied for water exploration concessions over three separate water basins in its own right. Importantly with respect to obtaining permission to develop these basins, the aquifers are contained, and do not appear to contribute water to downstream catchments or basins.
Both the optioned water rights and the nearest basin are located some 100 kilometres north of the project, adjacent to water rights proposed for the Cerro Casale project, 10 kilometres south of Caspiche. Additional basins are 50-100km further north again.
AKER Solutions has begun work on two concurrent pre-feasibility studies (see Press Release dated 22 November, 2010). The first is designed to provide detailed economics for the development of the shallow, heap leachable gold-only oxide deposit. The second will focus on the development of the complete Caspiche resource. At this stage preliminary studies indicate that a gold-only heap leach project would require a water supply of less than 100 litres per second.
Yale Simpson, Exeter’s Executive Chairman said, “We are very pleased to have achieved another milestone for the project. Water is a fundamental component for any potential mining operation at Caspiche. The optioned water rights are more than sufficient to meet the needs of a gold-only oxide project at Caspiche. The oxide gold resource is a +100 metre thick blanket of gold bearing oxide material that overlies the large sulphide resource.
“Metallurgical studies to date have shown favourable heap leaching characteristics. Based on the measured and indicated resource for the oxide deposit, the gold-only oxide project could produce +150,000 ounces of gold per year for five years, providing early cash flow for the project.”
Jerry Perkins, Exeter’s VP Development and Operations and a “qualified person” within the definition of that term in National Instrument 43-101, Standards of Disclosure for Mineral Projects, has supervised the preparation of the technical information contained in this news release.
About Exeter
Exeter Resource Corporation is a Canadian mineral exploration company focused on the exploration and development of the Caspiche project in Chile. The project is situated in the Maricunga gold district, between the Refugio mine (Kinross Gold Corp.) and the giant Cerro Casale gold deposit (Barrick Gold Corp. and Kinross Gold Corp.). The discovery represents one of the largest mineral discoveries made in Chile in recent years. Exeter has initiated pre-feasibility studies with the aim of demonstrating the commercial viability of this world class discovery. The Company has cash reserves of $87 million and no debt.
You are invited to visit the Exeter web site at www.exeterresource.com.
EXETER RESOURCE CORPORATION
Bryce Roxburgh, President and CEO
Safe Harbour Statement – This news release contains “forward-looking information” and “forward-looking statements” (together, the “forward-looking statements”) within the meaning of applicable securities laws and the United States Private Securities Litigation Reform Act of 1995, including in relation to the Company’s belief as to the extent and timing of its drilling programs, adequacy of water resources, various studies including pre-feasibility studies, engineering, environmental, infrastructure and other studies, and exploration results, budgets for its exploration programs, the potential tonnage, grades and content of deposits, timing, establishment and extent of resources estimates, potential for financing its activities, potential production from and viability of its properties, permitting submission and timing and expected cash reserves. These forward-looking statements are made as of the date of this news release. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes or results anticipated in or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur.
While the Company has based these forward-looking statements on its expectations about future events as at the date that such statements were prepared, the statements are not a guarantee that such future events will occur and are subject to risks, uncertainties, assumptions and other factors which could cause events or outcomes to differ materially from those expressed or implied by such forward-looking statements. Such factors and assumptions include, among others, the effects of general economic conditions, the price of gold and copper, changing foreign exchange rates and actions by government authorities, uncertainties associated with legal proceedings and negotiations and misjudgements in the course of preparing forward-looking information. In addition, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Known risk factors include risks associated with project development; including risks associated with the failure to satisfy the requirements of the Company’s agreement with Anglo American on its Caspiche project which could result in loss of title; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in metal prices; title matters; uncertainties and risks related to carrying on business in foreign countries; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters of the Company with certain other projects; the absence of dividends; currency fluctuations; competition; dilution; the volatility of the Company’s common share price and volume; tax consequences to U.S. investors; and other risks and uncertainties, including those described in the Company’s Annual Information Form for the financial year ended December 31, 2009 dated March 25, 2010 filed with the Canadian Securities Administrators and available at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company is under no obligation to update or alter any forward-looking statements except as required under applicable securities laws.
Cautionary Note to United States Investors – The information contained herein and incorporated by reference herein has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws. In particular, the term “resource” does not equate to the term “reserve”. The Securities Exchange Commission’s (the “SEC”) disclosure standards normally do not permit the inclusion of information concerning “measured mineral resources”, “indicated mineral resources” or “inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute “reserves” by U.S., unless such information is required to be disclosed by the law of the Company’s jurisdiction of incorporation or of a jurisdiction in which its securities are traded. U.S. investors should also understand that “inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.
NEITHER THE TSX NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE
Contact:
Contacts:
Exeter Resource Corporation
B. Roxburgh
President
604.688.9592 or Toll-free: 1.888.688.9592
604.688.9532 (FAX)
Exeter Resource Corporation
Rob Grey
VP Corporate Communications
604.688.9592 or Toll-free: 1.888.688.9592
604.688.9532 (FAX)
exeter@exeterresource.com
www.exeterresource.com
TORONTO, CANADA–(Marketwire – 02/08/11) – An independent mineral resource model for Seabridge Gold’s (TSX:SEA)(AMEX:SA) Iron Cap Zone at its 100% owned KSM project estimates a new indicated resource containing 5.1 million ounces of gold and 1.7 billion pounds of copper immediately adjacent to the Mitchell deposit. The indicated resource is flanked by a halo of inferred resources containing an additional 3.4 million ounces of gold and 1.3 billion pounds of copper. The Iron Cap resource estimate was prepared by Resource Modeling Inc. (“RMI”) of Stites, Idaho and will be incorporated into an updated Preliminary Feasibility Study (“PFS”) scheduled for completion in April 2011.
The NI 43-101 compliant global resource estimate is as follows:
Iron Cap Mineral Resources at 0.50 g/t Gold Equivalent Cutoff-Grade
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Gold Copper
Tonnes Gold (000 of Cu (millions
Resource Category (000) (g/t) ounces) (%) of lbs)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Indicated 361,700 0.44 5,117 0.21 1,674
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inferred 297,300 0.36 3,441 0.20 1,310
----------------------------------------------------------------------------
----------------------------------------------------------------------------
-----------------------------------------------------------------
-----------------------------------------------------------------
Silver Moly
Silver (000 of Moly (millions
Resource Category (g/t) ounces) (ppm) of lbs)
-----------------------------------------------------------------
-----------------------------------------------------------------
Indicated 5.4 62,796 47 37.5
-----------------------------------------------------------------
-----------------------------------------------------------------
Inferred 3.9 37,278 60 39.3
-----------------------------------------------------------------
-----------------------------------------------------------------
A new global resource estimate for the KSM project, including the Mitchell, Sulphurets and Kerr zones, will be released shortly.
Seabridge Gold President and CEO Rudi Fronk said “the Iron Cap resource has exceeded our expectations. Our objective was to book a five million ounce gold resource in all categories. In fact, we have achieved more than five million ounces of indicated resources with a superior copper grade which should help us optimize mine plans to maintain a favorable copper head grade. We expect that most of the indicated resource should qualify as reserves in our new PFS and improve the economics for the KSM project.”
RMI estimated gold and copper grades using inverse distance weighting methods within geologically constrained gold and copper grade domains that were constructed for the Iron Cap zone. The grade models were validated visually and by comparisons with nearest neighbor models. The estimated block grades were classified into indicated and inferred mineral resource categories based on mineralized continuity that was determined both visually and statistically (i.e. variogram ranges) together with the proximity to drill hole data. To facilitate comparisons with previous resource estimates, recoverable gold equivalent grades were calculated using the same $650 gold price with a 70% recovery rate and a $2.00 copper price with an 85% recovery rate. The cutoff grade for resource tabulation was set at 0.50 grams per tonne (g/t) gold equivalent, also consistent with the cutoff grade used for previous KSM resource estimates.
The resource model for Iron Cap incorporates data from a total of 51 core holes (41 drilled by Seabridge in 2010 plus 10 holes drilled by previous operators) totaling about 17,700 meters. Grades from the 10 holes drilled by previous operators were compared with nearby holes drilled by Seabridge. The grades of the older holes were found to be comparable with the newer holes. For example, the average gold grade of the old and new holes within 50 meters of one another was 0.43 and 0.45 g/t, respectively. RMI reviewed the quality assurance/quality control protocols and results from Seabridge’s 2010 drilling program and has deemed that the number and type of gold and copper standard reference materials (standards, blanks, and duplicates) were reasonable. Based on the performance of those standard reference materials, RMI believes that the Seabridge drill samples are reproducible and suitable for estimating mineral resources. RMI constructed a preliminary block model in August 2010 using ten historic and eight 2010 Seabridge drill holes that had been completed as of that date. After the 2010 drilling campaign was completed, RMI compared the grades from 33 Seabridge core holes that were completed after the preliminary block model had been constructed. This comparison showed that the newly obtained drill hole intervals were slightly higher in grade (gold, copper, silver, and molybdenum) than the estimated preliminary model blocks. The infill drilling program also validated and expanded the volume of mineralization that was established by the initial ten drill holes.
Gold resource estimates included herein were prepared by Resource Modeling Inc. under the direction of Michael Lechner, who is independent of Seabridge and a Qualified Person as defined by National Instrument 43-101. Mr. Lechner is a highly regarded expert in his field and frequently undertakes independent resource estimates for major mining companies. Mr. Lechner has reviewed and approved this news release. The independent technical report detailing the Iron Cap resource model, plus updated resource estimates for the Mitchell, Sulphurets and Kerr zones will be filed on SEDAR at www.sedar.com.
Exploration activities by Seabridge Gold at KSM have been conducted under the supervision of William E. Threlkeld, Registered Professional Geologist, Senior Vice President of the Company and a Qualified Person as defined by National Instrument 43-101. An ongoing and rigorous quality control/quality assurance protocol was employed during the 2010 program including blank and reference standards in every batch of assays. Cross-check analyses are being conducted at a second external laboratory on 10% of the samples. Samples were assayed at Eco Tech Laboratory Ltd., Kamloops, B.C., using fire assay atomic adsorption methods for gold and total digestion ICP methods for other elements.
Seabridge holds a 100% interest in several North American gold projects. The Company’s principal assets are the KSM property located near Stewart, British Columbia, Canada and the Courageous Lake gold project located in Canada’s Northwest Territories. For a breakdown of Seabridge’s mineral reserves and mineral resources by category please visit the Company’s website at http://www.seabridgegold.net/resources.php.
All reserve and resource estimates reported by the Corporation were calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. These standards differ significantly from the requirements of the U.S. Securities and Exchange Commission. Mineral resources which are not mineral reserves do not have demonstrated economic viability.
This document contains “forward-looking information” within the meaning of Canadian securities legislation and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. This information and these statements, referred to herein as “forward-looking statements” are made as of the date of this document. Forward-looking statements relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the amount of mineral reserves and mineral resources; (ii) any potential for the increase of mineral reserves and mineral resources, whether in existing zones or new zones; (iii) the amount of future production; (iv) further optimization of the PFS including metallurgical performance; (v) completion of and submission of the Environmental Assessment Application; and (vi) potential for engineering improvements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “envisages”, “assumes”, “intends”, “strategy”, “goals”, “objectives” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
All forward-looking statements are based on Seabridge’s or its consultants’ current beliefs as well as various assumptions made by them and information currently available to them. These assumptions include: (i) the presence of and continuity of metals at the Project at modeled grades; (ii) the capacities of various machinery and equipment; (iii) the availability of personnel, machinery and equipment at estimated prices; (iv) exchange rates; (v) metals sales prices; (vi) appropriate discount rates; (vii) tax rates and royalty rates applicable to the proposed mining operation; (viii) financing structure and costs; (ix) anticipated mining losses and dilution; (x) metallurgical performance; (xi) reasonable contingency requirements; (xii) success in realizing further optimizations and potential in exploration programs and proposed operations; (xiii) receipt of regulatory approvals on acceptable terms, including the necessary right of way for the proposed tunnels; and (xiv) the negotiation of satisfactory terms with impacted First Nations groups. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, but specifically include, without limitation: risks relating to variations in the mineral content within the material identified as mineral reserves or mineral resources from that predicted; variations in rates of recovery and extraction; developments in world metals markets; risks relating to fluctuations in the Canadian dollar relative to the US dollar; increases in the estimated capital and operating costs or unanticipated costs; difficulties attracting the necessary work force; increases in financing costs or adverse changes to the terms of available financing, if any; tax rates or royalties being greater than assumed; changes in development or mining plans due to changes in logistical, technical or other factors; changes in project parameters as plans continue to be refined; risks relating to receipt of regulatory approvals or settlement of an agreement with impacted First Nations groups; the effects of competition in the markets in which Seabridge operates; operational and infrastructure risks and the additional risks described in Seabridge’s Annual Information Form filed with SEDAR in Canada (available at www.sedar.com) for the year ended December 31, 2009 and in the Corporation’s Annual Report Form 40-F filed with the U.S. Securities and Exchange Commission on EDGAR (available at www.sec.gov/edgar.shtml). Seabridge cautions that the foregoing list of factors that may affect future results is not exhaustive.
When relying on our forward-looking statements to make decisions with respect to Seabridge, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Seabridge does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Seabridge or on our behalf, except as required by law.
WESTLAKE, Texas, Feb. 8, 2011 (GLOBE NEWSWIRE) — Animal Health International, Inc. (Nasdaq:AHII), a leading distributor of animal health products in the United States and Canada, today reported its financial results for the Company’s second fiscal quarter, which ended December 31, 2010.
Results include the following highlights.
Three Months Ended December 31, 2010
- Net sales increased 16.3%, to $198.2 million, compared to $170.5 million for the same period a year ago. The increase in net sales was primarily attributable to improving economics in the beef market as well as continued growth in our veterinary business.
- Gross margin increased $3.1 million for the quarter, with $4.5 million due to higher sales volume partially offset by a shift in mix to lower margin products of $0.9 million and a special one-time promotional rebate received last year of $0.5 million. Margin for the quarter was 16.4% of net sales, compared to 17.3% last year.
- Selling, General and Administrative (SG&A) expenses declined to 12.5% of sales this year compared to 13.8% in the same period last year. SG&A expenses increased $1.3 million from the same period last year largely due to increased sales.
- Adjusted earnings before interest, tax, depreciation and amortization (Adjusted EBITDA) increased by 29.8% or $1.9 million to $8.1 million for the quarter, compared to $6.2 million last year.
- Net income increased 52.5% to $1.9 million, or $0.07 per fully diluted share, compared to $1.2 million or $0.05 per fully diluted share in last year’s second quarter. The net income for the quarter included a one-time adjustment for the completion of the FY2010 Canadian tax provision of $0.4 million. Net income excluding this adjustment would have been $2.3 million and an 87.1% increase over last year. Earnings per share would have been $0.09 without the one-time tax provision.
Fiscal Year to Date December 31, 2010
- Net sales for the year to date were $374.7 million, an increase of 12.9% compared to $331.8 for the same period a year ago. Sales to beef producers and veterinarians led the increase.
- Gross margin increased $4.5 million, compared to the same period last year, with $7.2 million due to the increase in volume, offset $2.0 million by a shift in mix to lower margin product and a special one-time promotional rebate received last year of $0.5 million. Margins for the first half were 16.0% of net sales, compared to 16.7% last year.
- SG&A expenses declined to 13.2% of sales compared to 14.0% last year. SG&A increased $3.3 million from the same period last year primarily due to increased sales volume.
- Adjusted EBITDA for the first half of the fiscal year increased 16.7% or $1.6 million to $11.2 million, compared to $9.6 million in the same period last year.
- Net income was $1.3 million or $0.05 per fully diluted share, compared to last year’s net income of $0.5 million or $0.02 per fully diluted share. The net income for the year to date included a one-time adjustment for the completion of the FY2010 Canadian tax provision of $0.4 million. Net income excluding this adjustment would have been $1.8 million. Earnings per share would have been $0.07 without the one-time tax provision.
Jim Robison, Chairman and Chief Executive Officer, stated, “We are executing well and pleased with our second quarter results. With the refinancing of our debt completed during the quarter and good results, we are optimistic about the year.”
At December 31, 2010, the Company’s availability under its revolving credit facility totaled $30.1 million, and the Company is in compliance with all of its financial covenants.
Fiscal Year 2011 Guidance
The following statements are based on current information and the Company assumes no obligation to update them. These statements are forward-looking and inherently uncertain.
Management forecasts that our Adjusted EBITDA for the fiscal year ending June 2011 will be in the range of $25 – $27 million. This guidance excludes any projections of future acquisitions.
Conference Call
The Company plans to host its investor conference call today at 10:00 a.m. Eastern Time to discuss these results and its business outlook. You can access the conference call by dialing 877-407-9210. Participants will be required to register their name and company affiliation for the conference call. Audio replay will be made available by accessing the Company’s web site at www.ahii.com under the Investor Relations tab.
Use of Non-GAAP measures
Adjusted EBITDA represents net income (loss) before interest expense, income tax expense, depreciation and amortization, goodwill impairment, stock-based compensation expense, and acquisition costs. We present Adjusted EBITDA as a supplemental performance measure because we believe it facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting interest expense), tax positions (such as the impact on periods or companies of changes in effective tax rates or net operating losses), the age and book depreciation of fixed assets (affecting relative depreciation expense), the non-cash impact of stock-based compensation expenses and the impact of purchase accounting. Because Adjusted EBITDA facilitates internal comparisons of our historical financial position and operating performance on a more consistent basis, we also use Adjusted EBITDA in measuring our performance relative to that of our competitors and in evaluating acquisition opportunities. Adjusted EBITDA is not a measurement of our financial performance under generally accepted accounting principles in the United States, or GAAP, and should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our profitability or liquidity. We understand that although Adjusted EBITDA is frequently used by securities analysts, lenders and others in their evaluation of companies, Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect our cash expenditures, or future requirements for capital expenditures or contractual commitments. Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements;
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on our debts; and
- Other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.
About Animal Health International, Inc.
Animal Health International, Inc., through its wholly owned subsidiaries, is engaged in the distribution of animal health products in the United States and Canada. The Company’s subsidiaries distribute more than 40,000 products sourced from over 1,500 manufacturers to over 71,000 customers, including veterinarians, production animal operators, and animal health product retailers. Products the Company’s subsidiaries distribute include pharmaceuticals, vaccines, parasiticides, diagnostics, capital equipment, sanitizers, pet foods, devices and supplies. The Company was founded in 1954, and has its corporate headquarters located in Westlake, Texas.
The Animal Health International logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3240
Safe Harbor for Forward-Looking Statements
Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Animal Health International can give no assurance that expectations will be attained. Factors that could cause actual results to differ materially from our expectations include, but are not limited to, the current general economic conditions, our inability to maintain relationships with manufacturers, an adverse change in manufacturer rebates or our inability to meet applicable rebate targets, the outbreak of infectious disease within an animal population, the loss of products or delays in product availability from one or more manufacturers, the loss of key personnel, the consolidation among animal health product vendors, consolidation among our customers, currency exchange rates and other risks detailed in our filings with the Securities and Exchange Commission, including our 2010 Annual Report on Form 10-K, which was filed on September 10, 2010. Such forward-looking statements speak only as of the date of this press release. Animal Health International expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Animal Health International’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
| ANIMAL HEALTH INTERNATIONAL, INC. |
| Condensed Consolidated Statements of Operations |
| (In thousands, except per share data) |
|
|
|
|
|
|
Three months ended December 31, |
Six months ended December 31, |
|
2010 |
2009 |
2010 |
2009 |
| Net sales |
$198,220 |
$170,487 |
$374,695 |
$331,816 |
| Direct cost of products sold |
165,745 |
141,071 |
314,830 |
276,454 |
| Gross Profit |
32,475 |
29,416 |
59,865 |
55,362 |
| Selling, general, and administrative expenses (including salary, wages, commission, and related benefits) |
24,793 |
23,540 |
49,595 |
46,328 |
| Depreciation and amortization |
2,006 |
2,022 |
3,943 |
4,000 |
| Operating income |
5,676 |
3,854 |
6,327 |
5,034 |
| Other income (expense): |
|
|
|
|
| Other income |
167 |
166 |
308 |
300 |
| Interest expense |
(2,176) |
(2,068) |
(3,757) |
(4,579) |
| Income before income taxes |
3,667 |
1,952 |
2,878 |
755 |
| Income tax expense |
(1,809) |
(734) |
(1,535) |
(284) |
| Net income |
$1,858 |
$1,218 |
$1,343 |
$471 |
| Income per share: |
|
|
|
|
| Basic |
$0.07 |
$0.05 |
$0.05 |
$0.02 |
| Diluted |
$0.07 |
$0.05 |
$0.05 |
$0.02 |
| Weighted average shares outstanding: |
|
|
|
|
| Basic |
24,794 |
24,691 |
24,794 |
24,691 |
| Diluted |
25,396 |
24,691 |
25,284 |
24,691 |
|
| ANIMAL HEALTH INTERNATIONAL, INC. |
| Condensed Consolidated Balance Sheets |
| (In thousands) |
| (Unaudited) |
|
| Assets |
December 31, 2010 |
June 30, 2010 |
| Current assets: |
|
|
| Cash and cash equivalents |
$1,736 |
$2,243 |
| Accounts receivable, net |
92,924 |
77,954 |
| Merchandise inventories, net |
109,908 |
99,545 |
| Other current assets |
4,409 |
5,097 |
| Total current assets |
208,977 |
184,839 |
| Noncurrent assets: |
|
|
| Property, plant, and equipment, net |
14,411 |
14,657 |
| Goodwill and other intangible assets, net |
122,373 |
122,391 |
| Other noncurrent assets, net |
4,570 |
3,044 |
| Total assets |
$350,331 |
$324,931 |
| Liabilities and Stockholders’ Equity |
|
|
| Current liabilities: |
|
|
| Accounts payable |
$99,437 |
$94,705 |
| Accrued liabilities |
13,809 |
9,891 |
| Current portion of long-term debt |
433 |
129,339 |
| Total current liabilities |
113,679 |
233,935 |
| Noncurrent liabilities: |
|
|
| Long-term debt, net of current portion |
144,600 |
— |
| Other noncurrent liabilities |
23,524 |
24,532 |
| Total liabilities |
281,803 |
258,467 |
|
|
|
| Stockholders’ equity |
68,528 |
66,464 |
| Total liabilities and stockholders’ equity |
$350,331 |
$324,931 |
|
| ANIMAL HEALTH INTERNATIONAL, INC. |
| Adjusted EBITDA Reconciliation |
| (In thousands) |
| (Unaudited) |
|
|
Three months ended December 31, |
Six months ended December 31, |
|
2010 |
2009 |
2010 |
2009 |
| Net income |
$1,858 |
$1,218 |
$1,343 |
$471 |
| Interest expense |
2,176 |
2,068 |
3,757 |
4,579 |
| Income tax expense |
1,809 |
734 |
1,535 |
284 |
| Depreciation and amortization |
2,006 |
2,022 |
3,943 |
4,000 |
| Stock-based compensation |
222 |
140 |
436 |
245 |
| Acquisition costs |
22 |
55 |
230 |
55 |
| Adjusted EBITDA |
$8,093 |
$6,237 |
$11,244 |
$9,634 |
CONTACT: Animal Health International, Inc.
William F. Lacey
817-859-3000
Feb. 8, 2011 (Business Wire) — Oculus Innovative Sciences, Inc. (NASDAQ:OCLS), a commercial healthcare company that designs, produces and markets safe and effective tissue care products based upon the Microcyn® Technology platform, announced today it had received a new FDA 510(k) clearance for its uniquely formulated Microcyn-based Epicyn™ HydroGel. Under the supervision of a healthcare professional, it is indicated to manage and relieve the burning, itching and pain experienced with various types of dermatoses, including atopic dermatitis and radiation dermatitis. Epicyn HydroGel may also be used to relieve the pain of first- and second-degree burns and can help to relieve dry waxy skin by maintaining a moist wound and skin environment, which is beneficial to the healing process. The hydrogel is a shelf-stable hypochlorous acid formulation based on the company’s proprietary Microcyn Technology platform.
“Our newly approved dermatology indication opens two interesting new markets to Oculus — atopic dermatitis, which afflicts 15 million U.S. patients, and radiation dermatitis, with over one million U.S. patients. The use of the proprietary Microcyn Technology for these challenging skin afflictions is truly a unique approach and adds both depth and breadth to Oculus’ dermatology product portfolio,” said Hoji Alimi, founder and CEO of Oculus. “And in line with our business strategy, we plan to partner this new indication at the earliest for faster commercialization.”
About Atopic Dermatitis
More than 15 million patients have symptoms of atopic dermatitis, characterized by itchy skin, which can lead to rash, redness, swelling, crusting and scaling. The disease affects up to 20 percent of infants and young children, who continue to have symptoms as adults with significant impact on their quality of life. The exact cause is unknown, but genetics are considered a key factor.
In a 2009 GlobalData study, it was estimated the global atopic dermatitis therapeutics market delivered revenues of $643 million in 2009. It is expected to grow to $810 million at a Compound Annual Growth Rate (CAGR) of 3.4% by 2016. This growth is primarily attributed to an increase in competition among existing products and the presence of a strong pipeline with more emerging therapies. Globally, the United States remains the largest market for atopic dermatitis therapeutics, and generated revenue of $402 million in 2009. It is forecast to grow at a CAGR of 3.8% over the next seven years to reach $582 million by 2016.
About Radiation Dermatitis
Radiation dermatitis is an unintended and often unavoidable skin reaction commonly experienced by patients receiving radiation therapy as part of their cancer treatment. This side effect, caused by radiation passing through skin cells, is often unpleasant and painful and may contribute to poor quality of life in cancer patients. In some cases, radiation dermatitis may become so severe as to necessitate interruption or cessation of radiation therapy. A wide variety of products have been used to treat radiation dermatitis with little or no evidence to support their use. According to estimates from the International Agency for Research on Cancer (IARC), there were 12.7 million new cancer cases in 2008 worldwide, of which 5.6 million occurred in economically developed countries and 7.1 million in economically developing countries. Of the total cancer patients, approximately 60 percent receive radiation treatment, and up to 95% of those are afflicted with radiation dermatitis.
About Oculus Innovative Sciences
Oculus Innovative Sciences is a commercial healthcare company that designs, produces and markets safe and effective tissue care products based upon the Microcyn® Technology platform, which significantly reduces the need for antibiotics while reducing infections and accelerating healing. The Microcyn Technology addresses the need for improved solutions in multiple markets, including dermatology, oral care, cosmeceutical, wound care and others. It features a biocompatible, shelf-stable solution that is currently commercialized in the United States, Europe, India, China and Mexico and select Middle East countries under various country-specific regulatory clearances and approvals. Several solutions derived from this platform have demonstrated, in a variety of research and investigational studies, the ability to treat a wide range of pathogens, including antibiotic-resistant strains of bacteria (including MRSA and VRE), viruses, fungi and spores; increase blood flow to the wound site; and reduce both inflammation and pain while assisting in faster wound closure. The company’s headquarters are in Petaluma, California, with manufacturing operations in the United States and Latin America. More information can be found at www.oculusis.com.
Forward-Looking Statements
Except for historical information herein, matters set forth in this press release are forward-looking within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements about the Company’s commercial and technology progress and future financial performance. These forward-looking statements are identified by the use of words such as “opens,” “adds” and “plan,” among others. Forward-looking statements in this press release are subject to certain risks and uncertainties inherent in the Company’s business that could cause actual results to vary, including such risks that regulatory clinical and guideline developments may change, scientific data may not be sufficient to meet regulatory standards or receipt of required regulatory clearances or approvals, clinical results may not be replicated in actual patient settings, protection offered by the Company’s patents and patent applications may be challenged, invalidated or circumvented by its competitors, the available market for the Company’s products will not be as large as expected, the Company’s products will not be able to penetrate one or more targeted markets, revenues will not be sufficient to fund further development and clinical studies, the Company may not meet its future capital needs, and its ability to obtain additional funding, as well as uncertainties relative to varying product formulations and a multitude of diverse regulatory and marketing requirements in different countries and municipalities, and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission, including the annual report on Form 10-K for the year ended March 31, 2010. Oculus Innovative Sciences disclaims any obligation to update these forward-looking statements except as required by law.
Oculus, Epicyn and Microcyn Technology are trademarks or registered trademarks of Oculus Innovative Sciences, Inc. All other trademarks and service marks are the property of their respective owners.
Oculus Innovative Sciences, Inc.
Media and Investor Contact:
Dan McFadden, 425-753-2105
dmcfadden@oculusis.com
Director of Public and Investor Relations
TIRAT CARMEL, ISRAEL — (Marketwire) — 02/07/11 — D. Medical Industries Ltd. (NASDAQ: DMED)(TASE: DMDC) (“D. Medical” or the “Company”), a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery, announced today that its subsidiary, Spring-Set Health Solutions Ltd. (formerly “Medx- Set Ltd.”), has achieved ISO 13485:2003 and ISO 9001:2008 certifications. Spring-Set designs and markets the Company’s Universal Detach Detect Infusion Sets.
ISO 13485:2003 is an internationally recognized standard developed to ensure that companies provide medical devices that consistently meet regulatory requirements. In order to obtain the certification, Spring-Set demonstrated the ability to consistently meet strict requirements for Quality Management Systems (QMS) applicable to medical device manufacturing and related services.
ISO 9001:2008 is an internationally recognized quality management standard. The standard focuses on defining customer quality requirements, use of data to analyze the processes, meeting applicable customer and regulatory requirements, enhancing customer satisfaction and continually improving business performance.
“The achievement of both ISO 13485:2003 and ISO 9001:2008 certifications demonstrates our continued commitment to the highest levels of quality management and design controls to ensure the delivery of safe and effective products to our international customer base. In addition, as we prepare to launch our Universal Detach Detect Infusion Sets in the United States, Canada, Europe, Mexico and the BRIC countries of Brazil, Russia, India and China – commencing in 2011 – we believe these certifications will help to simplify and, in some cases, potentially shorten this key product’s regulatory pathway in those markets,” said Efri Argaman, D. Medical’s Chief Executive Officer.
About D. Medical
D. Medical is a medical device company engaged through its subsidiaries in the research, development, manufacture and sale of innovative products for diabetes treatment and drug delivery. D. Medical has developed durable and semi-disposable insulin pumps, which continuously infuse insulin into a patient’s body, using its proprietary spring-based delivery technology. D. Medical believes that its spring-based delivery mechanism is cost-effective compared to the motor and gear train mechanisms that drive competitive insulin pumps and also allows it to incorporate certain advantageous functions and design features in its insulin pumps. D. Medical has also developed an infusion set for insulin pumps and is focusing its research and development efforts on the development of next generation insulin pumps and a device that will combine a continuous glucose monitoring system and an insulin pump on the same patch. For more information, please visit http:www.dmedicalindustries.com (corporate) and http://www.springnow.com (healthcare professionals, patients and care givers).
Forward-Looking Statements
This press release contains forward-looking statements (as defined by the Israeli Securities Law, 1968, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) that involve risks and uncertainties. These statements include, forecasts, goals, uncertainties and assumptions and relate, inter alia, to D. Medical’s future expectations in connection with its level of sales and cost of sales, manufacturing volumes, the cost-effectiveness of its spring-based design, target markets, regulatory approvals and timing of markets penetration. The forward-looking statements are based on D. Medical’s current expectations and beliefs which are based on, among other things, its analysis of publicly available information and market research reports. All forward-looking statements are subject to certain risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the impact of general economic conditions, competitive products, product demand, product performance, the performance of D. Medical’s contract manufacturer and distributors, regulatory trends and approvals and healthcare reform legislation. If one or more of these risks and/or uncertainties materialize, or if the underlying assumptions prove to be incorrect, D. Medical’s actual results, performance or achievements could differ materially from those expressed in, or implied by, any such forward-looking statements or results which are based upon such assumptions. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or of any of them will transpire or occur, what impact it will have on D. Medical’s results of operations or financial condition. D. Medicals does not undertake to update any forward-looking statements.
Contacts:
D. Medical Industries Ltd.
Amir Loberman
Chief Financial Officer
+972-73-2507135
info@springnow.com
D. Medical Industries Ltd.
Stephen Kilmer
North American Investor Contact
T: 212.618.6347
M: 905-906-6908
stephen@dmedicalindustries.com
Israeli Investor Relations
Iris Lubitch
972-775538007
Iris@EffectiveIR.co.il
NEW YORK, Feb. 7, 2011 (GLOBE NEWSWIRE) — Vringo, Inc. (NYSE Amex:VRNG), a provider of video ringtones and personalization solutions for mobile devices, today announced that it will exhibit at the upcoming GSMA Mobile World Congress 2011 (MWC) to be held February 14-17 in Barcelona, Spain. MWC is the leading mobile industry event of the year with 50,000 attendees from over 200 countries.
Conference participants are encouraged to join us at our booth (No. 7D46, Hall P7 – App Planet) where they can demo the latest iteration of Vringo’s award-winning video ringtone platform which has been successfully deployed for leading carrier partners such as Orange UK, Maxis, Etisalat and more. Vringo will also be demonstrating its new video remix platform for Android which it recently released with T-Pain’s Nappy Boy Entertainment.
Andrew Perlman, President of Vringo, said, “Mobile carriers around the world should be looking at Vringo’s popular service and apps that bring video ringtones, user-generated video content, and social networking to both smart phones and feature phones. We look forward to meeting with prospective new carrier and content partners at the upcoming MWC conference in Barcelona.”
Vringo’s fully-hosted carrier platform has now been deployed for international partners in six markets with new launches anticipated in the next quarter. Vringo’s scalable, cloud-based, distributed application architecture enables a carrier’s subscribers to browse and download mobile videos, set them as video ringtones and instantly share them with friends. In addition to carrier partners, Vringo has content partnerships with major content providers including EMI, T-Pain, Marvel, Discovery Mobile, Ingrooves and Agence France-Presse.
About Vringo
Founded in 2006, Vringo (NYSE Amex:VRNG) is bringing about the evolution of ringtones. With its award-winning video ringtone application and mobile software platform, Vringo transforms the basic act of making and receiving mobile phone calls into a highly visual, social experience. By installing Vringo’s application, which is compatible with more than 200 handsets, users can create or take video, images and slideshows from virtually anywhere and make them into their personal call signature. Vringo’s patented VringForward™ technology allows users to share video clips with friends with a simple call. Vringo has launched its service with various international mobile operators and dozens of content partners, and maintains a library of more than 5,000 video ringtones and growing. For more information, visit http://ir.vringo.com.
For more information about how video ringtones work, visit www.vringo.com/p_video_ringtones.html.
The Vringo, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8289
Forward-Looking Statements
This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Vringo expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a results of new information, future events or otherwise, except as required by law.
CONTACT: Vringo, Inc.
Jonathan Medved
CEO
Email: jon@vringo.com
Phone: +1 646-525-4319 x 2501
Investor Relations Firm:
Crescendo Communications, LLC
John J. Quirk / David K. Waldman
Email: vrng@crescendo-ir.com
Phone: +1 212-671-1020
SUN VALLEY, Calif., Feb. 7, 2011 (GLOBE NEWSWIRE) — Emergent Group Inc. (NYSE Amex Equities:LZR), a leading provider of mobile medical lasers and surgical equipment through its wholly owned subsidiary, PRI Medical Technologies, Inc., today announced that it has signed a definitive agreement with Universal Hospital Services, Inc. (UHS), whereby UHS will make a cash tender offer of $8.46 per share for all outstanding shares of Emergent Group after a customary “go-shop” period of 21 days. UHS has estimated that the total enterprise value of the transaction including debt assumption is approximately $70 million.
Assuming that UHS acquires at least 65% of the outstanding shares on a fully diluted basis, UHS intends to promptly take appropriate action to merge Emergent Group into a wholly-owned UHS subsidiary and pay all-non-tendering holders of Emergent Group the same consideration per share as paid in the tender offer. The directors and executive officers of Emergent Group, holding in the aggregate approximately 47% of the outstanding shares, have agreed to tender their shares in the tender offer unless it is terminated as a result of a superior proposal.
The tender offer is expected to commence in early March 2011. The transaction is not subject to a financing condition. The companies expect to close the transaction within 45 to 90 days.
“This transaction represents a new opportunity for PRI Medical and its employees to bring its cost-effective solutions nationwide through Universal Hospital Services’ extensive distribution network covering all 50 states,” said Bruce J. Haber, Chairman and CEO of both Emergent Group and PRI Medical. “We also believe that the transaction will be highly beneficial to shareholders. Emergent Group’s leadership has always acted with our shareholders in mind, as evidenced by our past efforts to enhance shareholder value and our Board’s declarations of sizeable annual dividends.”
PRI Medical currently operates in 16 states and provides surgical equipment and laser technology to hospitals, outpatient surgery centers and physicians’ offices. The equipment is supplied with specialized technicians, who support its proper operation and maintenance. PRI Medical also sells its customers the consumable items required for the equipment’s operation. The company’s equipment rentals allow hospitals and other providers to conserve capital and upgrade to new, cost-effective, physician-preferred medical technologies used primarily to treat the rapidly growing older population. PRI Medical also has partnered with medical technology manufacturers, recommending rentals as one alternative to their long selling cycles and, thus, opening up additional revenue streams for them.
“PRI Medical will allow us to expand our offerings into state-of-the-art surgical equipment and services for our hospital and surgery center customers,” said Gary Blackford, Chairman and CEO of UHS. “It will enhance and expand our ability to meet our commitment to our customers to bring comprehensive solutions that reduce costs, increase efficiencies and drive better health care outcomes.”
IMPORTANT INFORMATION AND WHERE TO FIND IT
This press release is not an offer to purchase or a solicitation of an offer to sell any securities of Emergent Group Inc. The planned tender offer by UHS for all of the outstanding shares of common stock of Emergent Group has not yet been commenced. Upon commencement of the tender offer, UHS will mail to Emergent Group stockholders an offer to purchase and related materials and Emergent will mail to its stockholders a solicitation/recommendation statement with respect to such tender offer. UHS will file its offer to purchase with the Securities and Exchange Commission (the “SEC”) on Schedule TO and Emergent Group will file its solicitation/recommendation statement with the SEC on Schedule 14D-9. Emergent Group stockholders are urged to read these materials carefully when they become available since they will contain important information, including the terms and conditions of the offer. Emergent Group stockholders may obtain a free copy of these materials (when they become available) and other documents filed by UHS or Emergent Group with the SEC at the website maintained by the SEC at www.sec.gov. The offer to purchase and related materials, the solicitation/recommendation statement, the Schedule TO, and the Schedule 14D-9 also may be obtained (when they become available) for free by contacting the information agent for the tender offer (when one is selected).
About Emergent Group Inc.
Emergent Group Inc., through its wholly owned subsidiary, PRI Medical Technologies, Inc., provides mobile medical laser and surgical equipment in 16 states on a per-procedure basis to hospitals, outpatient surgery centers and physicians’ offices. Surgical equipment is provided to customers along with technical support personnel to ensure that such equipment is operating correctly. PRI Medical currently offers its services in five states in the western United States and 11 states along the eastern seaboard. Emergent Group, Inc. is a member of the Russell Microcap® Index. For investor and product information, please visit Emergent Group’s website, www.emergentgroupinc.com.
Forward-Looking Statements
Statements in this news release contain forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1993 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon management’s current expectations and are subject to uncertainty and changes in circumstances, including the risks that the proposed transactions may not be consummated, regulatory approval that may be required is not obtained on a timely basis or is obtained with unanticipated conditions, and that, as a result of continuing diligence by UHS and unanticipated future events (some of which are discussed in the Company’s most recent Annual Report on Form 10-K and subsequently filed SEC reports), the proposed per share price may be reduced. There is no assurance that any forward-looking statements will prove accurate, as actual results and future events could differ materially from those presently anticipated.
CONTACT: Bruce J. Haber
Emergent Group/PRI Medical
(914) 235-5550, x. 12
bhaber@primedical.net
Thomas C. Blum
G.C. Andersen Partners, LLC
(212) 842-1608
tblum@andersenllc.com
MORRISVILLE, NC — (Marketwire) — 02/07/11 — Charles & Colvard, Ltd. (NASDAQ: CTHR), the sole manufacturer of moissanite lab-created gemstones, The Most Brilliant Jewel in the World®, today announced the appointment of Steven M. Larkin to its Board of Directors.
Since January 2010, Mr. Larkin, age 52, has served as Senior Vice President, Direct, of Golfsmith International Holdings, Inc. (“Golfsmith”), a specialty retailer of golf and tennis equipment, apparel, and accessories. From November 2009 to January 2010, he was a consultant to Golfsmith. From August 2008 to June 2009, Mr. Larkin served as Executive Vice President, Chief Marketing and E-Commerce Officer at Zale Corporation, a specialty retailer of diamonds and other jewelry products. He was Zale Corporation’s Senior Vice President, Brand Marketing and E-Commerce, from February 2008 to August 2008 and its Senior Vice President, Direct to Consumer, from January 2006 to February 2008. Before joining Zale Corporation, Mr. Larkin served in a variety of e-commerce and marketing-related executive positions with various companies in the retail industry for over 20 years, including ShopNBC, The Fingerhut Corporation, and Federated Department Stores/Macy’s, Inc.
“We are very pleased to welcome Steve Larkin as an independent member of our Board of Directors,” stated Randy N. McCullough, Chief Executive Officer of Charles & Colvard, Ltd. “An important element in our growth strategy involves e-commerce marketing initiatives. Steve’s extensive experience in this area and his understanding of the jewelry industry should prove invaluable to our management team and is consistent with our Board’s strategic direction as we seek to realize the potential of moissanite in the $120 billion global jewelry industry.”
About Charles & Colvard, Ltd.
Charles & Colvard, Ltd., based in the Research Triangle Park area of North Carolina, is the global sole source of moissanite, a unique, near-colorless lab-created gemstone that is distinct from other gemstones and jewels based on its exceptional fire, brilliance, luster, durability, and rarity. Charles & Colvard Created Moissanite® is currently incorporated into fine jewelry sold through domestic and international retailers and other sales channels. Charles & Colvard, Ltd. is headquartered in Morrisville, North Carolina, and the Company’s common stock is listed on the NASDAQ Global Select Market under the symbol “CTHR”. For more information, please access www.moissanite.com or www.charlesandcolvard.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements expressing expectations regarding our future and projections relating to products, sales, revenues, and earnings are typical of such statements and are made under the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about our plans, objectives, representations, and contentions and are not historical facts and typically are identified by use of terms such as “may,” “will,” “should,” “could,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “continue,” and similar words, although some forward-looking statements are expressed differently.
All forward-looking statements are subject to the risks and uncertainties inherent in predicting the future. You should be aware that although the forward-looking statements included herein represent management’s current judgment and expectations, our actual results may differ materially from those projected, stated, or implied in these forward-looking statements as a result of many factors including, but not limited to, our dependence on consumer acceptance and growth of sales of our products; general economic and market conditions, including the current economic environment; dependence on Cree, Inc. as the current supplier of the raw material; dependence on third parties for the sales and marketing of our products to end consumers; intense competition in the worldwide jewelry industry; financial difficulties or insolvency of one or more of our major customers; our ability to protect our intellectual property; possible adverse effects of governmental regulation and oversight; risks of conducting business in foreign countries; and the pricing of precious metals, which is beyond our control, in addition to the other risks and uncertainties described in more detail in our filings with the Securities and Exchange Commission, or the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and subsequent reports filed with the SEC. Forward-looking statements speak only as of the date they are made. We undertake no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur except as required by the federal securities laws, and you are urged to review and consider disclosures that we make in the reports that we file with the SEC that discuss other factors relevant to our business.
Add to Digg Bookmark with del.icio.us Add to Newsvine
Company Contact:
Timothy Krist
Chief Financial Officer
919.468.0399, ext. 295
Email Contact
Investor Relations:
R. Jerry Falkner
RJ Falkner & Company, Inc.
Investor Relations Counsel
800.377.9893
Email Contact
