Archive for August, 2012
FUQING CITY, CHINA — (Marketwire) — 08/14/12 — Guanwei Recycling Corp. (NASDAQ: GPRC), China’s leading clean tech manufacturer of recycled low density polyethylene (LDPE), reported today that revenues in its second quarter ended June 30, 2012 increased 18.6% to $18,694,938, including $1,773,129 from the resale of raw materials, compared with revenues of $15,757,662 in the same quarter last year. The Company also reported an increase of 3.41% in the selling prices of its manufactured recycled LDPE year over year. However, this increase was not sufficient to offset increased raw material, labor and overhead costs in the period. The resulting lower profit margins contributed to an 8.41% year over year decline in net income to $3,163,030, or $0.15 per share, compared with $3,453,360, or $0.17 per share, in the 2011 second quarter.
For the six months ended June 30, 2012, revenue increased 16.61% to $34,866,428 compared with $29,900,274 in the first half of 2011, while net income decreased 15.24% to $5,228,286 or $0.26 per share, compared with $6,168,642 or $0.31 per share a year earlier.
The Company noted that a “bright spot” in the 2012 second quarter was more than 16% sequential increase in manufactured recycled LDPE sales volume — an additional 1,938 tons sold — compared with the 2012 first quarter. In part, this reflected “weak” results in this year’s first quarter largely due to an earlier than usual Spring Festival in China. On a year over year basis, recycled LDPE sales in the 2012 second quarter were up 6.58% to $16,410,448, reflecting a 3.41% increase in average selling prices to $1,212 per ton and an increase of 3.06% in tons sold to 13,538 tons compared with the corresponding period in 2012. An additional $511,361 in 2012 second quarter sales resulted from sales of non-LDPE materials, an increase of 41.94% compared with the same period in 2011. The reported $1,773,129 from the sale of raw materials in the 2012 second quarter, at a marginal mark-up to cover administrative costs, was a consequence of limited space availability in the Company’s storage facility. No substantial additional revenue from sales of this type are anticipated in the near future.
In the first six months of 2012, revenues from sales of recycled LDPE were up 3.85% to $30,455,090, while total sales including non-LDPE materials ($949,128) and the resale of raw materials ($3,462,210) were $34,866,428, a 16.61% increase over the same period last year. Average recycled LDPE selling prices in the 2012 first half increased 4.84% to $1,212 per ton and tonnage sales declined 0.91% to 25,138 tons.
Costs
Increased raw material costs, as well as increased labor and overhead expenses, contributed to the year over year reduction in second quarter gross profit from $5,095,376 in 2011 to $4,891,796 this year, while gross profit margins declined from 32.34% in last year’s second quarter to 28.34% in 2012. The Company explained that a shortage of workers in Southern China rapidly increased wages and welfare costs. With respect to raw material costs, which included primarily imported plastic waste, the year over year increase in the second quarter of 2012 to an average of $690 per ton for recycled LDPE and sorted non-LDPE material was a relatively minor 2.83%. This reflected a stabilization in prices, which the Company believes will continue through the remainder of the year as a consequence of negotiating with suppliers. The Company noted further that selling and marketing expenses declined in the 2012 second quarter as lower gas prices decreased transportation costs, while G&A expenses increased moderately.
Through the first six months of 2012, the per ton raw material cost of recycled LDPE and sorted non-LDPE material increased 10.81% to $722 per ton, reflecting the sustained strong demand for the LDPE product. This increase, as well as increased labor and overhead costs — while average product prices only increased 4.84% in the period — resulted in a reduction in gross profit margin in the first half of 2012 to 26.43%, compared with 31.21% in the same period last year
Continuing Financial Strength
As of June 30, 2012, the Company reported cash and cash equivalents of $13,216,366, compared with $12,432,803 at December 31, 2011. In the same time frame shareholders’ equity increased to $39,935,168 from $33,007,268. As of June 30, 2012, the Company had no long term debt, and no short term bank debt.
During the six months ended June 30, 2012 cash used in investing activities was $746,327. The Company reported it was building an additional storage area for raw materials and, in order to plan for future expansion, it made a deposit for additional machinery and equipment which the Company expects will be placed into service in the third quarter of 2012. The Company noted that production capacity as of the end of the second quarter was 80,000 tons per year, as a result of significant improvements to its factory equipment and facilities made in 2011. Additionally, the Company’s import quota for imported plastic waste was 115,000 tons, including 35,000 tons contracted from Huan Li.
Management Comment
Mr. Min Chen, Chairman and CEO of the Company, commented, “While the cyclical softening in China’s economy has affected most industries, we have been fortunate in maintaining a diversified customer list which, coupled with the continuing strong demand for recycled LDPE, has enabled us to see sequential quarter over quarter growth thus far this year. In the second half of the year, we believe we will benefit from moderate increases in prices for our products as well as stabilizing raw material costs based on negotiations with our suppliers. Longer term, we believe the outlook for our Company remains very bright, given the anticipated increasing demand in an improved economy for our low-cost, high quality products.”
Mr. Chen added, “There has been a significant negative overreaction in the U.S. stock market to China-based companies, even to strong, well managed companies such as ours. However, we will keep working hard to grow our Company and rebuild investor confidence in our successes.”
Conference Call Invitation
The Company will discuss 2012 second quarter and first half results during a live conference call and webcast on Wednesday, August 15th, at 8:00am ET.
To participate in the call, interested participants should call 1-877-941-4775 when calling within the United States or 1-480-629-9809 when calling internationally. Please ask for the Guanwei Recycling Corp. 2012 Second Quarter Conference Call, Conference ID: 4559509. There will be a playback available until 08/22/12. To listen to the playback, please call 1-877-870-5176 when calling within the United States or 1-858-384-5517 when calling internationally. Use the Replay Pin Number: 4559509.
This call is being webcast by ViaVid Broadcasting and can be accessed by clicking on this link http://public.viavid.com/index.php?id=101461 or at ViaVid’s website at http://viavid.com.
SEE ATTACHED TABLES
Description of Guanwei Recycling Corp.
Guanwei Recycling Corp. is China’s largest manufacturer of recycled low density polyethylene (LDPE). Adhering to the highest “green” standards, it has generated rapid growth producing LDPE from plastic waste procured mostly in Europe for sales to more than 300 customers in more than ten different industries in China. Guanwei Recycling Corp. is one of the few plastic recyclers in China that has been issued a Compliance Certificate by Umweltagentur Erftstadt, which issues certificates of approval for certain plastics manufacturers which meet strict environmental standards in Germany. This enables the Company to procure high quality plastic waste directly from Germany and other European countries (Spain and Holland), with no middlemen, and permits highly economic production of the highest grades of LDPE. Additional information regarding Guanwei Recycling Corp. is available at www.guanweirecycling.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.
GUANWEI RECYCLING CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE
INCOME
Three Months Ended Six Months Ended
June 30, June 30,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Net revenue $18,694,938 $15,757,662 $34,866,428 $29,900,274
Cost of revenue 13,803,142 10,662,286 26,419,246 20,569,798
----------- ----------- ----------- -----------
Gross profit 4,891,796 5,095,376 8,447,182 9,330,476
----------- ----------- ----------- -----------
Operating expenses:
Selling and marketing 78,228 115,154 167,750 203,945
General and
administrative 464,158 428,956 1,123,028 972,726
----------- ----------- ----------- -----------
Total operating
expenses 542,386 544,110 1,290,778 1,176,671
----------- ----------- ----------- -----------
Income from operations 4,349,410 4,551,266 7,156,404 8,153,805
----------- ----------- ----------- -----------
Other income (expenses)
Interest income 14,336 24,443 28,508 47,413
Interest expenses - (7,779) - (25,214)
Exchange (loss) gain (61,606) 59,828 (29,680) 131,124
Miscellaneous - 10,398 - 10,398
----------- ----------- ----------- -----------
Total other income
(expenses) (47,270) 86,890 (1,172) 163,721
----------- ----------- ----------- -----------
Income before income
taxes 4,302,140 4,638,156 7,155,232 8,317,526
Income taxes 1,139,110 1,184,796 1,926,946 2,148,884
----------- ----------- ----------- -----------
Net income 3,163,030 3,453,360 5,228,286 6,168,642
Other comprehensive
income - foreign
currency translation
adjustments 18,029 326,346 231,447 543,528
----------- ----------- ----------- -----------
Comprehensive income $ 3,181,059 $ 3,779,706 $ 5,459,733 $ 6,712,170
=========== =========== =========== ===========
Earnings per share
attributable to
shareholders of
Guanwei Recycling
Corp. - basic and
diluted $ 0.15 $ 0.17 $ 0.26 $ 0.31
=========== =========== =========== ===========
Weighted average number
of common shares
outstanding
- basic and diluted 20,708,096 20,000,006 20,354,051 20,000,006
=========== =========== =========== ===========
GUANWEI RECYCLING CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2012 2011
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 13,216,366 $ 12,432,803
Accounts receivable 5,433,397 4,475,386
Inventories 18,649,153 16,858,801
Refundable value added tax 1,887,436 1,221,531
Prepaid expenses and other current assets 179,523 882,818
------------ ------------
Total current assets 39,365,875 35,871,339
Deposit for property, plant and equipment 645,120 -
Property, plant and equipment, net 7,976,748 8,151,012
Construction in progress 79,253 174,295
Land use right, net 670,688 673,762
Other assets 204,473 205,437
------------ ------------
Total Assets $ 48,942,157 $ 45,075,845
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 6,938,886 $ 8,741,822
Accrued expenses and other payables 625,938 714,072
Amount due to shareholder 323,582 1,468,167
Income tax payable 1,118,583 1,144,516
------------ ------------
Total current liabilities 9,006,989 12,068,577
------------ ------------
Commitments and contingencies
Shareholders' Equity
Common stock, $0.001 par value, 500,000,000
shares authorized, 20,815,654 and 20,000,006
shares issued and outstanding, as of June 30,
2012 and December 31, 2011 20,816 20,000
Additional paid-in capital 2,757,379 1,290,028
PRC statutory reserves 805,483 805,483
Accumulated other comprehensive income 2,494,128 2,262,681
Retained earnings 33,857,362 28,629,076
------------ ------------
Total shareholders' equity 39,935,168 33,007,268
------------ ------------
Total liabilities and shareholders' equity $ 48,942,157 $ 45,075,845
============ ============
Contacts:
Richard Sun
guanweirecycling@gmail.com
Ken Donenfeld
DGI Investor Relations
kdonenfeld@dgiir.com
Tel: 212-425-5700
SAN DIEGO, Aug. 14, 2012 /PRNewswire/ — Cardium Therapeutics (NYSE MKT: CXM) today presented its financial results for the second quarter ended June 30, 2012 and reported on other recent developments including: (1) agreement with Advanced Biosciences Research, an affiliate of bioRASI, for the planned commercialization of Excellagen® physician-use wound care product in the Russian Federation and the CIS; (2) agreement with Angel Biomedical for the manufacture of Excellagen and to assist Cardium in filing for a CE Mark for the potential marketing and sale of Excellagen in the European Union; (3) selection of Excellagen as one of the top ten podiatry innovations in 2012 by Podiatry Today publication; (4) publication of important research findings that have been incorporated into the treatment protocols of the Company’s Generx® ASPIRE Phase 3 / registration study for patients with advanced coronary disease; and (5) introduction of the Neo-Chill Nutra-App® to the Company’s MedPodium® healthy lifestyle product platform. Consistent with its long-term business strategy, Cardium continues to identify and evaluate businesses, product opportunities and technologies for potential acquisition on favorable economic terms consistent with the Company’s long-term business strategy.
(Logo: http://photos.prnewswire.com/prnh/20051018/CARDIUMLOGO)
Second Quarter 2012 Financial Highlights
The Company’s research and development costs for the three months ended June 30, 2012 totaled $425,000 and selling, general and administrative expenses were $1.5 million, compared to $804,000 and $1.2 million, respectively, for the three months ended June 30, 2011. For the six months ended June 30, 2012, research and development costs were $1.6 million and selling, general and administrative expenses were $3.0 million, compared to $1.3 million and $2.5 million, respectively, for the six months ended June 30, 2011. The increase in research and development for the six months ended June 30, 2012 was mainly due to expenses related to the development of our Excellagen product which is now commercially available, as well as increased costs related to our Generx ASPIRE study. The increase in selling, general and administrative expenses for the six-month period was primarily due to increases in expenses related to the marketing efforts for Excellagen and the MedPodium Nutra-Apps® product line. Revenue for the three months ended June 30, 2012 was $13,000 and for the six months ended June 30, 2012 totaled $34,000. Revenues during this period were primarily generated from the introduction of the MedPodium Nutra-Apps product line and initial introduction of the Company’s Excellagen wound care product. During second quarter 2012, Cardium’s initial market introduction of Excellagen was predominantly focused on physician product sampling to “seed” the market and support physician-based post-marketing case studies.
For the three months ended June 30, 2012, the Company reported a net loss of $1.9 million, or $(0.02) per share, compared to a net loss of $1.8 million, or $(0.02) per share for the three months ended June 30, 2011. For the six months ended June 30, 2012, the Company reported a net loss of $4.5 million, or $(0.04) per share, compared to a net loss for the six months ended June 30, 2011 of $3.5 million, or $(0.04) per share. The increase in the net loss was due primarily to testing, validation and marketing costs for the Company’s Excellagen wound care product. As of June 30, 2012, the Company had a total of $6.3 million in cash compared to $4.7 million in cash at the end of December 31, 2011. As of June 30, 2012, 119.6 million shares of Cardium’s common stock were outstanding.
Excellagen Commercialization Activities
In second quarter 2012, Cardium announced an agreement with Advanced Biosciences Research, an affiliate of bioRASI, for the planned commercialization of Cardium’s professional-use Excellagen® topical wound care management product in Russia and the nine additional member countries comprising the Commonwealth of Independent States (CIS). Under this agreement, bioRASI will be responsible for the registration and approval for potential marketing and sales of Excellagen in the Russian Federation, and will assist Cardium to develop an infrastructure plan for the marketing, sales and distribution of Excellagen in Russia and the CIS following final market approval. bioRASI is the sponsor and development partner responsible for the management and regulatory compliance of the Company’s Generx DNA-based cardiovascular angiogenic biologic Phase 3 / registration study for the treatment of patients with myocardial ischemia due to coronary disease which is currently underway in Russia.
In addition, the Company announced an agreement with UK-based Angel Biomedical Limited, a subsidiary of Angel Biotechnology Holdings plc (AIM: ABH), a global biopharmaceutical contract manufacturer, covering the manufacturing of Excellagen and to assist Cardium to facilitate filing for a CE Mark of Excellagen for potential marketing and sale in the European Union, which consists of 27 member countries. Earlier in the year, Cardium announced a marketing and distribution agreement with BL&H Co. for South Korea.
The Company recently announced that Excellagen was selected as one of the top ten podiatry innovations in 2012 by Podiatry Today publication and that it will be exhibiting Excellagen at the American Podiatric Medical Association (APMA) National Meeting (Booth 1910) being held August 16 – 19, 2012 in Washington, DC.
Cardium announced the market introduction of Excellagen in March 2012 with Smith Medical Partners, a subsidiary of H.D. Smith, providing logistics and cold chain services. Initially, the Company’s market introduction efforts have been centered on internet, digital and print marketing to physicians and patients, and exhibiting Excellagen at medical trade shows. Cardium’s market introduction strategy is centered on relationship building with key opinion leaders and wound care specialists through product sampling, support of physician-based case studies and practice integration. To view an Excellagen foot ulcer case study by Dr. Curtis Long, please visit http://www.excellagen.com/diabetic-foot-ulcers.html and to view an Excellagen Mohs surgery case study by Dr. Steven Smith, please visit http://www.excellagen.com/surgical-wounds.html. Consistent with Cardium’s business strategy (similar to the business strategy for the Company’s InnerCool operating unit, which was sold to Philips Electronics), Cardium does not plan to establish an internal sales force, but rather, following Excellagen’s initial market introduction, will look to strategic commercialization partners with existing sales and marketing forces in the U.S., as well as internationally.
About Excellagen
Excellagen is an FDA-cleared formulated collagen topical gel (2.6%) designed for use with debridement and engineered to support a favorable wound healing environment and platelet activation for non-healing lower extremity diabetic ulcers and other dermal wounds. Excellagen’s unique high-molecular weight structured collagen formulation is topically applied through easy-to-control, pre-filled, sterile, single-use syringes and its viscosity-optimized gel formulation is designed for application at only one or two week intervals. Excellagen is intended for professional use following standard debridement procedures in the presence of blood cells and platelets, which are involved with the release of endogenous growth factors. Following FDA clearance, Cardium conducted additional studies showing that Excellagen can activate platelets to trigger the release of Platelet-Derived Growth Factor (PDGF), which is recognized as an important wound healing facilitator. Already-established standard surgical debridement CPT® procedure reimbursement codes for physicians may apply when Excellagen is used in connection with surgical debridement procedures. Following FDA 510(k) marketing and sales clearance, all new products are required to go through a process with regard to specific product reimbursement by private insurers and Government payers, and the Company is moving Excellagen forward through this process.
Cardium’s market research indicates that physicians seek easy-to-use products to reduce preparation time and facilitate product application – and Excellagen’s unique, ready-to-use syringe-based collagen gel requires no thawing or mixing. Because of its specialized formulation, only a thin layer needs to be applied over the wound area, and one syringe containing 0.5 cc of Excellagen covers wounds up to 5cm2 in size using the supplied 24-gauge sterile, single-use flexible applicator tip. To learn more about Excellagen and for product ordering information, please visit http://www.excellagen.com and view the information video, “Excellagen: A New Wound Care Pathway for Diabetic Foot Ulcers”, at http://www.excellagen.com/excellagen-video.html.
Generx Commercial Development Activities
Cardium recently announced the publication of preclinical findings demonstrating that cardiac ischemia plays an important role in adenovector gene delivery (transfection) in mammalian hearts. The new findings were published in the peer-reviewed journal Human Gene Therapy Methods in an article entitled “Ischemia-Reperfusion Increases Transfection Efficiency of Intracoronary Adenovirus type 5 in Pig Heart in Situ,” which is available online at http://online.liebertpub.com/doi/full/10.1089/hgtb.2012.048.
The published findings demonstrate that Cardium’s innovative technique employing transient cardiac ischemia can be used to dramatically enhance gene delivery and transfection efficiency after one-time intracoronary administration of adenovector in mammalian hearts. Two consecutive but brief periods of coronary artery occlusion combined with co-administration of nitroglycerin increased both adenovector presence (measured by PCR) and transgene expression (assessed by luciferase activity) by over two orders of magnitude (>100 fold) in the heart, as compared to prior intracoronary artery delivery methods. The research findings have been incorporated into the treatment protocols of the Company’s recently-initiated Generx® [Ad5FGF-4] ASPIRE study. The Russian-based ASPIRE Phase 3 registration study of patients with chronic myocardial ischemia and advanced angina pectoris uses transient ischemia techniques during non-surgical percutaneous catheterization with a standard angioplasty catheter together with the intracoronary infusion of nitroglycerin with the Generx product candidate.
As recently reported in the New York Times, the European Medicines Agency (EMA) has recommended approval of uniQure’s Glybera gene therapy for the treatment of lipoprotein lipase deficiency. If the recommendation is followed, this will represent the first gene therapy regulatory approval in the Western world and a significant step forward in the field of gene-based therapeutics.
About Generx and the ASPIRE Study
Generx (Ad5FGF-4) is a disease-modifying regenerative medicine biologic that is being developed to offer a one-time, non-surgical option for the treatment of myocardial ischemia in patients with stable angina due to coronary artery disease, who might otherwise require surgical and mechanical interventions, such as coronary artery by-pass surgery or balloon angioplasty and stents. Similar to surgical/mechanical revascularization approaches, the goal of Cardium’s Generx product candidate is to improve blood flow to the heart muscle – but to do so non-surgically, following a single administration from a standard balloon catheter. The video “Cardium Generx Cardio-Chant” provides an overview of Generx and can be viewed at http://www.youtube.com/watch?v=pjUndFhJkjM.
In March 2012, Cardium announced the initiation of the ASPIRE Phase 3 registration study to evaluate the therapeutic effects of its lead product candidate Generx in patients with myocardial ischemia due to coronary artery disease, and patient recruitment is ongoing. The ASPIRE study, a 100-patient, randomized and controlled multi-center study to be conducted at up to eight leading cardiology centers in the Russian Federation, is designed to further evaluate the safety and effectiveness of Cardium’s Generx DNA-based angiogenic product candidate, which has already been tested in clinical studies involving 650 patients at more than one hundred medical centers in the U.S., Europe and elsewhere. The efficacy of Generx will be quantitatively assessed using rest and stress SPECT (Single-Photon Emission Computed Tomography) myocardial imaging to sensitively measure improvements in microvascular cardiac perfusion following a one-time, non-surgical, catheter-based administration of Generx. The Cedars-Sinai Medical Center Nuclear Cardiology Core Laboratory in Los Angeles, California, will serve as the central core lab for the ASPIRE study and will be responsible for the analysis of SPECT myocardial imaging data electronically transmitted from the Russian medical centers participating in the ASPIRE study.
A recent article, “Cardium’s Heart Disease Gene Therapy Advancing with New Discoveries,” outlining the history of the Generx clinical development program is available at http://sandiegobiotechnology.com/topics/4705/cardiums-heart-disease-gene-therapy-moving-toward-commercialization/.
MedPodium’s Healthy Lifestyle Brand
During second quarter 2012, Cardium introduced its new MedPodium Neo-Chill Nutra-App® at the National Association of Chain Drug Stores (NACDS) Marketplace 2012. MedPodium’s Neo-Chill Nutra-App® contains 200 mg Suntheanine®, a 100% pure L-theanine amino acid also found in green tea, which has been shown in clinical studies to promote an alert state of relaxation without drowsiness and to promote mental clarity and focus.* Other Nutra-App products now available include Neo-Energy®, a dietary supplement capsule that provides a customized blend of natural caffeine, green tea leaf extract and Vitamin B3 (Niacin), and Neo-Carb Bloc®, a dietary supplement that features a custom formulation of maximum strength Phase 2™, a white kidney bean extract that has been clinically studied and shown to reduce the enzymatic digestion of dietary starches contained in many carbohydrate-rich foods such as pastas, rice, crackers, breads, pastries, potato chips, and donuts.* MedPodium Nutra-Apps are designed as an impulse item and the products are being marketed to convenience stores with plans to later broaden into the food, drug and mass marketplace. The Company’s business strategy is focused on building relationships with distributors to handle product placement to retailers.
About MedPodium Nutra-Apps®
MedPodium Nutra-Apps are small pharmaceutically-sealed, tasteless, easy-use capsules in pocket-sized packaging that are designed to address the unique needs of today’s millennial consumers. Nutra-Apps provide premium science-based ingredients that have been characterized scientifically and shown to support an active lifestyle by enhancing energy, weight management, and relaxation*. Nutra-Apps come in simple, “one-and-done” servings and are designed to fit comfortably in a pocket or purse for use anytime, anywhere. For information about MedPodium Nutra-Apps, please visit www.medpodium.com. The video, “Nutra-Apps: Fuel your Lifestyle”, is at http://www.youtube.com/watch?v=BtGqfI0Vfvs.
About Cardium
Cardium is an asset-based health sciences and regenerative medicine company focused on the acquisition and strategic development of innovative products and businesses with the potential to address significant unmet medical needs and having definable pathways to commercialization, partnering or other economic monetizations. Cardium’s current portfolio includes the Tissue Repair Company, Cardium Biologics, and the Company’s in-house MedPodium Health Sciences healthy lifestyle product platform. The Company’s lead commercial product Excellagen® topical gel for wound care management, recently received FDA clearance for marketing and sale in the United States. Cardium’s lead clinical development product candidate Generx® is a DNA-based angiogenic biologic intended for the treatment of patients with myocardial ischemia due to coronary artery disease. In addition, consistent with its capital-efficient business model, Cardium continues to actively evaluate new technologies and business opportunities. In July 2009, Cardium completed the sale of its InnerCool Therapies medical device business to Royal Philips Electronics, the first asset monetization from the Company’s biomedical investment portfolio. News from Cardium is located at www.cardiumthx.com.
Forward-Looking Statements
Except for statements of historical fact, the matters discussed in this press release are forward looking and reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control and may cause actual results to differ materially from expectations. For example, there can be no assurance that results or trends observed in one clinical study or procedure will be reproduced in subsequent studies or in actual use; that new clinical studies will be successful or will lead to approvals or clearances from health regulatory authorities, or that approvals in one jurisdiction will help to support studies or approvals elsewhere; that the company can attract suitable commercialization partners for our products or that we or partners can successfully commercialize them; that our product or product candidates will not be unfavorably compared to competitive products that may be regarded as safer, more effective, easier to use or less expensive or blocked by third party proprietary rights or other means; that the products and product candidates referred to in this report or in our other reports will be successfully commercialized and their use reimbursed, or will enhance our market value; that new product opportunities or commercialization efforts will be successfully established; that third parties on whom we depend will perform as anticipated; that we can raise sufficient capital from partnering, monetization or other fundraising transactions to maintain our stock exchange listing or adequately fund ongoing operations; or that we will not be adversely affected by these or other risks and uncertainties that could impact our operations, business or other matters, as described in more detail in our filings with the Securities and Exchange Commission. We undertake no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof.
Copyright 2012 Cardium Therapeutics, Inc. All rights reserved.
For Terms of Use Privacy Policy, please visit www.cardiumthx.com.
Cardium Therapeutics®, Generx®,Cardionovo™, Tissue Repair™, Gene Activated Matrix™, GAM™, Excellagen®, Excellarate™, Osteorate™, MedPodium®, Appexium®, Linée®, Alena®, Cerex®, D-Sorb™, Neo-Energy®, Neo-Carb Bloc®, Neo-Chill™, and Nutra-Apps® are trademarks of Cardium Therapeutics, Inc. or Tissue Repair Company.
Suntheanine® is a trademark of Taiyo, International, Inc.
(Other trademarks belong to their respective owners)
*Note: These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
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Cardium Therapeutics, Inc.
Selected Condensed Consolidated Results of Operations
|
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Product sales
|
|
$ 13,174
|
|
$ –
|
|
$ 33,652
|
|
$ –
|
|
Cost of goods sold
|
|
(6,096)
|
|
–
|
|
(11,551)
|
|
–
|
|
Gross profit
|
|
7,078
|
|
–
|
|
22,101
|
|
–
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
(424,734)
|
|
(803,858)
|
|
(1,589,333)
|
|
(1,295,432)
|
|
Selling, general and administrative
|
|
(1,459,214)
|
|
(1,173,536)
|
|
(2,968,975)
|
|
(2,461,421)
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|
Loss from operations
|
|
(1,876,870)
|
|
(1,977,394)
|
|
(4,536,207)
|
|
(3,756,853)
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|
Interest income (expense), net
|
|
1,423
|
|
1,687
|
|
2,567
|
|
4,336
|
|
Change in fair value of derivative liabilities
|
|
–
|
|
212,401
|
|
64,157
|
|
300,571
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|
Net loss
|
|
$ (1,875,447)
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$ (1,763,306)
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$(4,469,483)
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$ (3,451,946)
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|
|
|
|
|
|
|
|
|
|
Net loss per common share – basic and diluted
|
|
$ (0.02)
|
|
$ (0.02)
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|
$ (0.04)
|
|
$ (0.04)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding – basic and diluted
|
|
119,617,356
|
|
83,097,967
|
|
114,448,254
|
|
83,097,967
|
|
|
|
*Please refer to the reconciliation of Non-GAAP measures included in this release.
|
|
Selected Condensed Consolidated Balance Sheet Data
|
|
|
|
|
|
|
|
June 30,
2012
|
|
December 31,
2011
|
|
Cash and cash equivalents
|
|
$ 6,271,500
|
|
$ 4,721,279
|
|
Restricted cash
|
|
50,000
|
|
200,000
|
|
Accounts receivable
|
|
9,757
|
|
–
|
|
Inventory
|
|
771,867
|
|
434,130
|
|
Prepaid expenses and other current
assets
|
|
182,160
|
|
68,204
|
|
Property and equipment, net
|
|
102,872
|
|
135,581
|
|
Other long-term assets
|
|
1,876,831
|
|
1,944,035
|
|
Total assets
|
|
$ 9,264,987
|
|
$ 7,503,229
|
|
Accounts payable and accrued liabilities
|
|
$ 1,057,429
|
|
$ 1,214,480
|
|
Derivative liabilities
|
|
–
|
|
85,506
|
|
Long-term liabilities
|
|
87,026
|
|
118,313
|
|
Total liabilities
|
|
1,144,455
|
|
1,418,299
|
|
Stockholder’s equity
|
|
8,120,532
|
|
6,084,930
|
|
Total liabilities and stockholder’s equity
|
|
$ 9,264,987
|
|
$ 7,503,299
|
|
Cardium Therapeutics, Inc.
Reconciliation of Non-GAAP Measure
As of June 30, 2012
|
|
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$ (1,875,447)
|
|
$ (1,763,306)
|
|
$ (4,469,483)
|
|
$ (3,451,946)
|
|
Add (subtract)
|
|
|
|
|
|
|
|
|
|
Stock based compensation expense
|
|
43,606
|
|
59,009
|
|
86,845
|
|
81,529
|
|
Change in fair value of derivative liabilities
|
|
–
|
|
(212,401)
|
|
(64,157)
|
|
(300,571)
|
|
Non-GAAP net loss
|
|
$ (1,831,841)
|
|
$ (1,916,698)
|
|
$ (4,446,795)
|
|
$ (3,670,988)
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per common share – basic and diluted
|
|
$ (0.02)
|
|
$ (0.02)
|
|
$ (0.04)
|
|
$ (0.04)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding – basic and diluted
|
|
119,617,356
|
|
83,097,967
|
|
114,448,254
|
|
83,097,967
|
|
Non-GAAP Financial Measure
To supplement our condensed consolidated financial statements, which statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America (GAAP), we use a non-GAAP financial measure called non-GAAP earnings or loss per share. We define non-GAAP earnings or loss per share as net income or loss not including the impact of non-cash items: stock-based compensation and change in fair value of derivative liabilities.
It should be noted that basic and diluted weighted average shares are determined on a GAAP basis and the resulting share count is used for computing both GAAP and non-GAAP basic and diluted earnings per share.
With the adoption of ASC 815 and its very substantial impact on our total liabilities including certain non-cash derivative liabilities and corresponding reported net gains and losses arising from changes in the underlying market value of our common stock, we believe that non-GAAP earnings or loss per share provides meaningful supplemental information regarding our performance by excluding certain expenses that may not be indicative of the core business operating results and may help in comparing current-period results with those of prior periods as well as with our peers. We present this information to investors as an additional tool for evaluating our financial results in a manner that reflects ongoing operations and facilitates comparisons with operating results from prior periods. The presentation of this additional non-GAAP information is intended to provide investors with additional incremental tools for their review of our results and is not meant to be considered in isolation or as a substitute for financial information presented in accordance with GAAP.
SOURCE Cardium Therapeutics
TORONTO, Aug. 13, 2012 /PRNewswire/ – Transition Therapeutics Inc. (“Transition” or the “Company”) (TSX:TTH, NASDAQ:TTHI) announced today that Dr. Tony Cruz, Chairman and Chief Executive Officer of Transition will be presenting at the Canaccord Genuity Annual Growth Conference on Thursday, August 16th, 2012 at 2:00 p.m. Eastern Time at the Intercontinental Boston Hotel in Boston, Massachusetts.
About Transition
Transition is a biopharmaceutical company, developing novel therapeutics for disease indications with large markets. Transition’s lead product is ELND005 (AZD-103) for the treatment of Alzheimer’s disease and Transition also has an emerging pipeline of innovative preclinical and clinical drug candidates. The other drugs in the pipeline that the Company is developing are for anti-inflammatory and metabolic indications. Transition’s shares are listed on the NASDAQ under the symbol “TTHI” and the Toronto Stock Exchange under the symbol “TTH”. For additional information about the Company, please visit www.transitiontherapeutics.com.
Notice to Readers: Information contained in our press releases should be considered accurate only as of the date of the release and may be superseded by more recent information we have disclosed in later press releases, filings with the OSC, SEC or otherwise. Except for historical information, this press release may contain forward-looking statements, relating to expectations, plans or prospects for Transition, including conducting clinical trials and potential efficacy of its products. These statements are based upon the current expectations and beliefs of Transition’s management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include factors beyond Transition’s control and the risk factors and other cautionary statements discussed in Transition’s quarterly and annual filings with the Canadian commissions.
SOURCE Transition Therapeutics Inc.
Supreme Industries, Inc. (NYSE Amex: STS), a leading manufacturer of specialized commercial vehicles, including truck bodies, shuttle buses and armored vehicles, today announced that Thomas B. Hogan, Jr. has been elected to its Board of Directors.
Mr. Hogan, 66, is the retired chief operating officer, Northeast practice, of Deloitte & Touche. He enjoyed a nearly 40-year career with the public accounting firm, and at retirement, was responsible for the Greater New York, New Jersey and Connecticut areas, as well as Boston and Philadelphia. Previously, he served as managing partner of the Rochester, Pittsburgh, St. Louis and New Jersey offices of the firm. Hogan also served as director of Energy East Corporation, a public utility holding company, until its sale in 2008. He is a graduate of St. John Fisher College and the Northwestern University Executive Program.
Supreme’s Chairman of the Board Herbert M. Gardner stated: “We are pleased to announce the addition of Mr. Hogan to our Board. His experience serving numerous large, global companies, especially those in the manufacturing sector, along with his strong background in public company accounting and SEC reporting, will be very valuable to Supreme.”
To be added to Supreme Industries’ email distribution list, please click on the link below:
http://www.clearperspectivegroup.com/clearsite/sts/emailoptin.html.
About Supreme Industries
Supreme Industries, Inc. (NYSE Amex: STS), is a nationwide manufacturer of specialized truck bodies produced to the specifications of its customers. Supreme also manufactures special-purpose “shuttle-type” buses and armored vehicles. The Company’s transportation equipment products are used by a wide variety of industrial, commercial and law enforcement customers. News releases and other information on the Company are available on the Internet at: http://www.supremeind.com or http://www.b2i.us/irpass.asp?BzID=1482&to=ea&s=0
Other than historical facts contained, the matters set forth in this news release are “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, as amended, and reflect the view of management with respect to future events. When used in this report, words such as “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” and similar expressions, as they relate to Supreme or its plans or operations, identify forward-looking statements. Such forward-looking statements are based on assumptions made by, and information currently available to management. Although management believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that the expectations reflected in such forward-looking statements are reasonable, and it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from such expectations include, without limitation, an economic slowdown in the specialized vehicle industry, limitations on the availability of chassis on which Supreme’s product is dependent, availability of raw materials, raw material cost increases and severe interest rate increases. Furthermore, Supreme can provide no assurance that any raw material cost increases can be passed on to its customers through implementation of price increases for Supreme’s products. The forward-looking statements contained herein reflect the current view of management with respect to future events and are subject to those factors and other risks, uncertainties, and assumptions relating to the operations, results of operations, cash flows and financial position of Supreme. Supreme assumes no obligation to update the forward-looking statements or to update the reasons actual results could differ from those contemplated by such forward-looking statements.
STERLING, VA — (Marketwire) — 08/13/12 — Sutron Corporation (NASDAQ: STRN), a leading provider of hydrological, meteorological and oceanic monitoring products, systems and services, announced today its financial results for the six months ended June 30, 2012.
Summary
For the second quarter ended June 30, 2012, the Company reports net income of $551,670 or $.12 per share as compared to a net loss of $21,372 or $.0 per share in the second quarter in 2011. Revenues for the second quarter ended June 30, 2012 were up 77 percent to $6,804,168 as compared to $3,848,508 in the second quarter of 2011. In the second quarter, revenues of approximately $511,000 and net income of approximately $30,000 were attributable to the MeteoStar acquisition that was consummated on May 23, 2012. Gross profit for the second quarter of 2012 as a percentage of revenues was 41 percent as compared to 36 percent for the same quarter a year ago. Operating expenses for the second quarter of 2012 were $1,975,177, an increase of 36 percent compared to operating expenses of $1,453,300 for the same quarter a year ago. The increase in operating expenses was the result of approximately $160,000 of acquisition costs relating to the purchase of MeteoStar, increased sales commissions of $163,000 and increased expenses of approximately $100,000 due to MeteoStar operations subsequent to the acquisition.
Net income for the six months ended June 30, 2012 was up 70 percent to $475,561 or $.10 per share as compared to net income of $280,205 or $.06 per share for the comparable period in 2011. Revenues for the six months ended June 30, 2012 were up 21 percent to $10,541,349 as compared to $8,729,127 in 2011. Gross profit for the six months ended June 30, 2012 as a percentage of revenues was 40 percent as compared to 37 percent in 2011. Operating expenses for the six months ended June 30, 2012 were $3,533,261 as compared to operating expenses of $2,847,473 in 2011. The increase in operating expenses was the result of acquisition costs relating to the purchase of MeteoStar, increased expenses due to MeteoStar operations, increased sales commissions and increased R&D activities.
For the six months ended June 30, 2012, customer orders or bookings totaled $14,092,000 as compared to bookings of $6,379,000 for the six months ended June 30, 2011. The backlog of customer orders at June 30, 2012 was $13,150,000 as compared to a backlog of $9,397,000 at June 30, 2011.
Outlook
“We are pleased to report Q2 revenue growth of 77 percent and net income of $551,670 as compared to a loss of $21,372 in Q2 of 2011. These results are reflective of our significantly improved business base and do not yet include a full quarter contribution from our recent MeteoStar acquisition,” said Raul McQuivey, Sutron’s Chairman and Chief Executive Officer. “Our bookings for the first six months of 2012 were $14,092,000, up 121 percent over the comparable period in 2011, and represent 78 percent of bookings for the full year 2011. Based on strong increased backlog and planned shipments, as well as a full quarter of MeteoStar operations, we anticipate strong third quarter revenues. As stated in previous releases, fluctuations in bookings and revenue are not uncommon to our business which is highly project driven and subject to governmental approval and funding processes. We are encouraged regarding our opportunities as we continue to see significant demand both domestically and internationally for our products and systems. Our balance sheet remains strong with no debt and approximately $6.6 million of cash on hand which positions us to fund our growth both organically and through select acquisitions.”
“We are very pleased with the acquisition of MeteoStar. Along with a strong customer base and suite of innovative products and services, the acquisition included 36 employees that bring to Sutron over 200 man years of expertise in the Global Meteorological Market. In May and June, we had several important meetings with key customers that we expect will result in expanded revenue opportunities. We are now in a position to expand dramatically our meteorological market. We also plan to grow MeteoStar’s Air Quality and Water Quality monitoring sales both domestically and internationally.”
About Sutron Corporation
Sutron Corporation, headquartered in Sterling, Virginia, is a project driven business. Our quarterly results may fluctuate substantially based upon contract awards that are difficult to project in terms of timing and may be delayed due to differing time frames in securing government approvals and funding. We provide hydrological, meteorological and oceanic real-time data collection products, systems, software and services to a diversified customer base of federal, state, local and foreign governments, engineering companies, universities and hydropower companies. Over 60,000 Sutron stations have been installed worldwide. We manufacture our dataloggers, satellite transmitters and sensors. Our product and systems are designed to offer commonality of components and uniform interfaces in order to build modular, open, distributed systems that provide excellent performance regardless of the number of sensors or field stations.
Safe Harbor Statement
The statements in this press release that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Act of 1995. Forward-looking statements include without limitation any statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “should” and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. We are under no obligation to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.
SUTRON CORPORATION FINANCIAL SUMMARY
FINANCIAL SUMMARY
(Unaudited)
For the Three Months
Ended March 31,
HIGHLIGHTS OF OPERATING RESULTS 2012 2011
--------------------------------------------- -------------- --------------
Revenues $ 6,804,168 $ 3,848,508
Cost of sales 4,027,666 2,468,422
-------------- --------------
Gross profit 2,776,502 1,380,086
Operating expenses 1,975,177 1,453,300
-------------- --------------
Operating income 801,325 (73,214)
Interest and other income 15,345 24,842
-------------- --------------
Income before income taxes 816,670 (48,372)
Income tax expense (benefit) 265,000 (27,000)
-------------- --------------
Net income $ 551,670 $ (21,372)
============== ==============
PER SHARE AMOUNTS:
Basic income per share $ 0.12 $ 0.00
============== ==============
Diluted income per share $ 0.11 $ 0.00
============== ==============
(Unaudited)
For the Six Months
Ended June 30,
HIGHLIGHTS OF OPERATING RESULTS 2012 2011
--------------------------------------------- -------------- --------------
Revenues $ 10,541,349 $ 8,729,127
Cost of sales 6,338,255 5,500,416
-------------- --------------
Gross profit 4,203,094 3,228,711
Operating expenses 3,533,261 2,847,473
-------------- --------------
Operating income 669,833 381,238
Interest and other income 26,728 42,966
-------------- --------------
Income before income taxes 696,561 424,204
Income tax expense (benefit) 221,000 144,000
-------------- --------------
Net income $ 475,561 $ 280,204
============== ==============
PER SHARE AMOUNTS:
Basic income per share $ 0.10 $ 0.06
============== ==============
Diluted income per share $ 0.09 $ 0.06
============== ==============
Balance Sheets
(Unaudited) (Audited)
June 30, December 31,
2012 2011
-------------- --------------
ASSETS
Current Assets:
Cash and cash equivalents $ 4,813,154 $ 8,737,543
Restricted cash and cash equivalents 891,588 760,037
Certificates of deposit 926,227 924,294
Accounts receivable, net 6,430,900 6,754,434
Inventory 4,159,747 3,520,530
Prepaid items and other assets 475,522 322,369
Income taxes receivable 326,181 383,943
Deferred income taxes 585,000 481,000
-------------- --------------
Total Current Assets 18,608,319 21,884,150
Property and Equipment, Net 1,721,323 1,524,880
-------------- --------------
Other Assets
Goodwill 4,628,435 570,150
Other Assets 98,498 103,591
-------------- --------------
Total Assets $ 25,056,575 $ 24,082,771
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 743,436 $ 799,007
Accrued payroll 326,368 337,563
Other accrued expenses 1,825,313 1,573,409
Billings in excess of costs and estimated
earnings 483,587 201,015
-------------- --------------
Total Current Liabilities 3,378,704 2,910,994
Long-Term Liabilities
Deferred rent 1,025,757 1,127,860
Deferred income taxes 76,000 69,000
-------------- --------------
Total Long-term Liabilities 1,101,757 1,196,860
-------------- --------------
Total Liabilities 4,480,461 4,107,854
-------------- --------------
Stockholders' Equity
Common stock, 12,000,000 shares
authorized; 4,724,632 and 4,704,632
issued and outstanding 47,247 47,047
Additional paid-in capital 4,316,865 4,173,828
Retained earnings 16,406,112 15,930,551
Accumulated other comprehensive loss (194,110) (176,509)
-------------- --------------
Total Stockholders' Equity 20,576,114 19,974,917
-------------- --------------
Total Liabilities and Stockholders'
Equity $ 25,056,575 $ 24,082,771
============== ==============
Contact:
Sidney Hooper
(703)406-2800
TARRYTOWN, NY — (Marketwire) — 08/13/12 — SPAR Group, Inc. (NASDAQ: SGRP) (the “Company” or “SPAR Group”), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, announced today that its Board of Directors has authorized the repurchase of up to 500,000 shares of its Common Stock. Purchases would be made from time to time in the open market and through privately-negotiated transactions, subject to general market and other conditions.
Mr. Gary Raymond, President and CEO of SPAR Group, stated, “We’re pleased that the strength of our business fundamentals allows us to demonstrate our confidence through this stock repurchase program. This investment by the Company reflects our positive outlook on our cash-flow and earnings going forward. SPAR Group is dedicated to leveraging its strong capital structure to further improve shareholder value.”
The Company’s buyback program will be financed out of internally generated corporate funds. Shares acquired would be available, from time to time, for issuance under restricted stock awards or upon the exercise of stock options through its existing stock compensation plan, and for other corporate purposes. SPAR Group may terminate or limit the stock repurchase program at any time.
About SPAR Group
SPAR Group, Inc. is a diversified international merchandising and marketing services Company and provides a broad array of services worldwide to help companies improve their sales, operating efficiency and profits at retail locations. The Company provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide, primarily in mass merchandiser, office supply, grocery, drug, independent, convenience, electronics, toy and specialty stores, as well as providing furniture and other product assembly services, in-store events, radio frequency identification (“RFID”) services, technology services and marketing research. The Company has supplied these project and product services in the United States since certain of its predecessors were formed in 1979 and internationally since the Company acquired its first international subsidiary in Japan in May of 2001. Product services include restocking and adding new products, removing spoiled or outdated products, resetting categories “on the shelf” in accordance with client or store schematics, confirming and replacing shelf tags, setting new sale or promotional product displays and advertising, replenishing kiosks, providing in-store event staffing and providing assembly services in stores, homes and offices. Other merchandising services include whole store or departmental product sets or resets (including new store openings), new product launches, in-store demonstrations, special seasonal or promotional merchandising, focused product support and product recalls. The Company operates throughout the United States and internationally in 10 of the most populated countries, including China and India. For more information, visit the SPAR Group’s website at http://www.sparinc.com/.
Certain statements in this news release are forward-looking, including (without limitation) expectations or guidance respecting the Company’s business fundamentals, including its cash-flow and earnings going forward and its capital structure. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company’s control. The Company’s actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of SPAR Group’s selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success of its international efforts, success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in SPAR Group’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
Contact:
James R. Segreto
Chief Financial Officer
SPAR Group, Inc.
(914) 332-4100
Investors:
Alan Sheinwald
Alliance Advisors, LLC
(212) 398-3486
Email Contact
Christopher Camarra
Alliance Advisors, LLC
(212) 398-3487
Email Contact
HONG KONG, Aug. 13, 2012 /PRNewswire-Asia/ — LJ International Inc. (NASDAQ: JADE) (“LJI” or “the Company”), a leading colored gemstone and diamond jeweler with retail and wholesale businesses, today announced that its Board of Directors has received a preliminary, non-binding proposal letter dated August 13, 2012 from Mr. Yu Chuan Yih, Chairman of the Board of Directors, President and Chief Executive Officer of the Company, and Urban Prosperity Holding Limited, an affiliate of FountainVest Partners, (“FountainVest”, together with Mr. Yih, the “Consortium Members”), to acquire all of the outstanding ordinary shares of the Company not currently owned by Mr. Yih at a proposed price of $2.00 per ordinary share, in cash, subject to certain conditions. Mr. Yih currently beneficially owns, in the aggregate, approximately 11% of the Company’s outstanding ordinary shares.
According to the proposal letter, the Consortium Members will form an acquisition vehicle for the purpose of pursuing the transaction and the acquisition is intended to be financed by equity capital from the Consortium Members (and, if applicable, debt financing). A copy of the proposal letter is attached hereto as Exhibit A.
The Board of Directors intends to form a special committee of disinterested directors to consider the proposal. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated.
About LJ International Inc.
LJ International Inc. (LJI) (NASDAQ:JADE) is engaged in the designing, branding, marketing and distribution of its full range of jewelry. It has built its global business on a vertical integration strategy, and an unwavering commitment to quality and service. Through its China-based ENZO retail chain stores, LJI is now a major presence in China’s fast-growing retail jewelry market. As a wholesaler, it distributes to fine jewelers, department stores, national jewelry chains and electronic and specialty retailers throughout North America and Western Europe. Its product lines incorporate all major categories, including earrings, necklaces, pendants, rings and bracelets. For more information about the Company, visit the Company’s website at www.ljintl.com.
Cautionary Note Regarding Forward-Looking Statements: This press release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Potential risks and uncertainties include, but are not limited to, those relating to whether any definitive offer will be made, whether any agreement will be executed or whether this or any other transaction will be approved or consummated. Our actual results may differ materially from those contemplated by the forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. We caution you therefore against relying on any of these forward-looking statements. Factors that could cause actual results to differ materially from such statements, as well as additional risk factors, are detailed in the Company’s most recent filings with the Securities and Exchange Commission. Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking information contained in this press release or with respect to the announcements described herein, except as may be required by law.
|
|
|
|
Investor Relations contact:
|
|
|
|
LJ International Inc.
|
|
Fleishman-Hillard Inc.
|
|
Ringo Ng
|
|
E : ir@ljintl.com
|
|
Chief Financial Officer
|
|
T : 852-2530 0228
|
|
E : ir@ljintl.com
|
|
|
August 13, 2012
The Board of Directors
LJ International Inc.
Unit #12, 12/F, Block A
Focal Industrial Centre
21 Manlok Street
Hung Hom, Kowloon, Hong Kong
Dear Sirs:
Mr. Yu Chuan Yih (the “Chairman“) and Urban Prosperity Holding Limited, an affiliate of FountainVest Partners, (“FountainVest“), are pleased to submit this preliminary non-binding proposal to acquire LJ International Inc. (the “Company“) in a going private transaction (the “Acquisition“).
We believe that our proposal provides superior value to the Company’s shareholders. Our proposal represents a premium of 24.2% to the Company’s closing price on August 10, 2012 and a premium of 29.0% to the volume-weighted average closing price during the last 60 trading days.
1. Consortium. The Chairman and FountainVest (the “Sponsor” and together with the Chairman, the “Consortium Members“), have entered into a consortium agreement dated as of the date hereof, pursuant to which we will form an acquisition company for the purpose of implementing the Acquisition, and have agreed to work with each other exclusively in pursuing the Acquisition. Please also note that the Chairman is currently only interested in pursuing the Acquisition and has no interest in selling his shares in any other transaction involving the Company.
2. Purchase Price. The consideration payable for each publicly held share of outstanding common stock of the Company (other than those ordinary shares held by the Chairman that may be rolled over in connection with the Acquisition) will be $2.00 per share in cash.
3. Funding. It is intended that the Acquisition will be funded by equity capital from the Consortium Members, but the Consortium Members may explore potential debt financing as appropriate. The proposal is not contingent on debt financing. The consortium agreement sets forth the current terms under which the equity funding and the possible debt financing will occur. We expect definitive commitments for the required equity fundingand debt financing, if any, subject to terms and conditions set forth therein, to be in place when the Definitive Agreements (as defined below) are signed.
4. Due Diligence. We have engaged Fried, Frank, Harris, Shriver & Jacobson LLP as our international legal counsel, King & Wood Mallesons as PRC legal counsel and Conyers, Dill & Pearman as British Virgin Islands legal counsel. We believe that we will be in a position to complete customary legal, financial and accounting due diligence for the Acquisition in a timely manner and in parallel with discussions on the Definitive Agreements.
5. Definitive Agreements. We are prepared to promptly negotiate and finalize definitive agreements (the “Definitive Agreements“) providing for the Acquisition and related transactions. These Definitive Agreements will provide for representations, warranties, covenants and conditions which are typical, customary and appropriate for transactions of this type.
6. Process. We recognize that the Company’s Board of Directors (the “Board“) will evaluate the Acquisition independently before it can make its determination to endorse it. Given the involvement of Mr. Yih in the Acquisition, we appreciate that the independent members of the Board will proceed to consider the proposed Acquisition and that Mr. Yih will recuse himself from participating in any Board deliberations and decisions related to the Acquisition.
7. Confidentiality. The Chairman will, as required by law, promptly file an amendment to his Schedule 13D to disclose this letter and his agreement with FountainVest. However, we are sure you will agree with us that it is in all of our interests to ensure that we proceed in a confidential manner, unless otherwise required by law, until we have executed the Definitive Agreements or terminated our discussions.
8. About FountainVest. FountainVest Partners is a leading China-focused private equity firm, with over $2 billion under management. FountainVest’s investments are long term oriented, and targets high growth industry leaders in China in the consumer, media and technology, environmental and renewable resources and healthcare sectors. FountainVest works closely with management teams to create value in the areas of strategy, operations, finance, industry consolidation and governance.
9. No Binding Commitment. This letter constitutes only a preliminary indication of our interest, and does not constitute any binding commitment with respect to the Acquisition. A binding commitment will result only from the execution of Definitive Agreements, and then will be on terms and conditions provided in such documentation.
In closing, we would like to express our commitment to working together to bring this Acquisition to a successful and timely conclusion. Should you have any questions regarding this proposal, please do not hesitate to contact us. We look forward to hearing from you.
YU CHUAN YIH
URBAN PROSPERITY HOLDING LIMITED
EnerPlex for Galaxy S III to Follow Successful Debut of EnerPlex for iPhone
Ascent Solar Technologies, Inc. (NASDAQ:ASTI), a developer of state-of-the-art, flexible thin-film photovoltaic modules, announced today it has launched a charger for the Samsung® Galaxy S III® smart phone featuring Ascent’s ultra light CIGS technology. Branded under Ascent’s EnerPlex line of consumer products, the charger incorporates the company’s solar cells into a sleek, protective Galaxy S III case, along with an ultra thin battery. The charger adds minimal weight and size to the Galaxy S III yet provides significantly improved battery life by harnessing sunlight for electric power.
Following the successful launch of the EnerPlex for iPhone® 4S case, Ascent is releasing the EnerPlex for the Galaxy S III as Samsung continues to introduce new products in a competitive market where the number of smart phones in use globally is expected to reach 1 billion in the next 4 years. 144 million smart phones were sold globally in the first quarter of 2012. Ascent is developing the EnerPlex line utilizing its transformational CIGS technology to bring solar enabled power to a variety of new consumer products such as the widely anticipated next generation iPhone.
EnerPlex product information & videos, including a video of the Samsung case, can be found at: www.ascentsolar.com/enerplex.
Ascent Solar’s President and CEO, Victor Lee, said, “The EnerPlex charger is the only protective case for the Samsung Galaxy S III which leverages the lightweight qualities and superior aesthetics of our CIGS solar technology. It will extend the usage time of the Galaxy S III while preserving the high level of design quality that consumers demand. Samsung customers can now incorporate transformational solar technology into their everyday life, improving the performance of their smartphone without compromising style.”
Lee continued, “Ascent’s solar powered case designs target the top two market share leaders, Apple®, Inc. and Samsung, who together, account for over 70% of the smart phone market. With the launch of this second product in the EnerPlex line, Ascent now has a solar charger for two of the most popular smart phones on the market, the Apple iPhone and the Samsung Galaxy S III.”
The EnerPlex case for the Samsung Galaxy S III will debut in South Korea in October with an expected launch in the United States in time for the 2012 holiday shopping season.
About Ascent Solar Technologies, Inc.
Ascent Solar Technologies, Inc. is a developer of thin-film photovoltaic modules using flexible substrate materials that can transform the way solar power generation integrates into everyday life. Ascent Solar modules, which were named one of TIME Magazine’s 50 best inventions for 2011, can be directly incorporated into standard building materials, commercial transportation, automotive solutions, space applications, consumer electronics for portable power and durable off-grid solutions. More information can be found at www.ascentsolar.com.
Apple and iPhone are registered trademarks of Apple Inc.
Samsung and Galaxy S are registered trademarks of Samsung Electronics Co., Ltd.
Samsung Galaxy is a trademark of Samsung Electronics Co., Ltd.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the Company’s actual operating results to be materially different from any historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements that explicitly describe these risks and uncertainties, readers are urged to consider statements that contain terms such as “believes,” “belief,” “expects,” “expect,” “intends,” “intend,” “anticipate,” “anticipates,” “plans,” “plan,” to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission.
NEW YORK, NY — (Marketwire) — 08/10/12 — The Biotechnology Industry has been soaring in 2012 as companies — both large and small — have shown impressive growth. The SPDR S&P Biotech ETF (XBI) and the First Trust NYSE Arca Biotech Index ETF (FBT) are up roughly 30 percent for the year, outperforming the broader market by a wide margin. The Paragon Report examines investing opportunities in the Biotechnology Industry and provides equity research on Savient Pharmaceuticals, Inc. (NASDAQ: SVNT) and PDL BioPharma Inc. (NASDAQ: PDLI).
Access to the full company reports can be found at:
www.ParagonReport.com/SVNT
www.ParagonReport.com/PDLI
Despite having to negotiate a more challenging regulation process biotech companies have continued to show investors strong gains in 2012. The FDA Amendments Act of 2007 forced regulators to increase standards for approvals of new drugs, introducing mandatory risk evaluation and mitigation strategies. According to a Pharmaceuticals & Biotechnology report from IMAP, several pharmaceutical firms have altered their drug portfolios from primary care driven blockbusters towards specialties such as oncology, immunology and inflammation, where the medical need is “so high that prices are more easily accepted by the regulators.”
Paragon Report releases regular market updates on the Biotechnology Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.
Savient Pharmaceuticals is a specialty biopharmaceutical company focused on developing and commercializing KRYSTEXXA (pegloticase) for the treatment of chronic gout in adult patients refractory to conventional therapy. Shares of company soared over 24 percent Wednesday after the company reported their second quarter loss decreased when compared with the year ago quarter.
PDL pioneered the humanization of monoclonal antibodies and, by doing so, enabled the discovery of a new generation of targeted treatments for cancer and immunologic diseases. Net income for the second quarter of 2012 was $73.5 million, or $0.52 per diluted share, as compared with net income of $70.0 million, or $0.38 per diluted share, in the same quarter of 2011.
The Paragon Report has not been compensated by any of the above-mentioned publicly traded companies. Paragon Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.paragonreport.com/disclaimer
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Soy protein-based formula delivers more lunasin to promote optimal cell health in athletes
ST. LOUIS, Aug. 10, 2012 /PRNewswire/ — Reliv International, Inc. (NASDAQ:RELV), announced that it has added LunaRich™ soy powder to its ProVantage® athletic performance supplement. Reliv also announced that ProVantage has earned a U.S. patent. Both announcements were made on opening night of Reliv’s 2012 International Conference at America’s Center in downtown St. Louis.
LunaRich is a Reliv-exclusive whole soy powder containing five to ten times more lunasin than the industry standard. Lunasin is a peptide found naturally in soy that scientists have identified as the key to many of soy’s documented health benefits.
Learn how LunaRich maximizes the benefits of soy.
Lunasin protects against oxidative stress and inflammation caused by high-impact exercise. Over time, this oxidation can cause cell damage throughout the body. Lunasin works to protect cells by reducing the negative effects of oxidative stress and by regulating the body’s inflammatory response.
“Studies show the effectiveness of soy in promoting optimal fitness,” said Dr. Carl Hastings, Reliv’s chief scientific officer. “ProVantage provides healthy soy protein for increased muscle mass and function and now maximizes lunasin content to aid in recovery and repair. No other performance supplement harnesses the power of soy like ProVantage — and now there is a patent to prove it.”
ProVantage’s patented formula contains additional advanced ingredients, such as Tonalin®, MCTs, Creatine, CoQ10 and supercharged amino acids.
Learn why ProVantage marks a major advancement in the science of sports nutrition.
ProVantage becomes the seventh patented Reliv nutritional formula, joining Arthaffect® for joint health, Cellebrate® for weight loss, FibRestore® for digestive health, Innergize!® for performance nutrition, GlucAffect® for blood sugar management and ReversAge® for anti-aging nutrition. Reliv Classic® for essential daily nutrition also earned a patent, but it has since expired.
ProVantage is the fifth Reliv product to contain LunaRich soy powder since the ingredient was introduced in January. Reliv also added LunaRich to Reliv Now®, a daily essential nutrition formula; SoySentials®, a women’s protective supplement; Reliv Now® for Kids and GlucAffect. LunaRich is the first product to come out of the joint biotechnology research and development partnership that Reliv, Soy Labs, LLC and the Missouri Plant Science Center formed in August 2011.
About Reliv International, Inc.
Reliv International, Inc., based in Chesterfield, Mo., produces nutritional supplements that promote optimal nutrition along with premium skincare products. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women’s health, anti-aging and healthy energy. The company sells its products through an international network marketing system of independent distributors in 15 countries. Learn more about Reliv at www.reliv.com, or on Facebook, Twitter or YouTube.
NORFOLK, NE — (Marketwire) — 08/10/12 — Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT) which currently owns 94 hotels in 23 states, today announced its results for the second quarter ended June 30, 2012.
Second Quarter 2012 Highlights
- Increased revenues from continuing operations 5.5 percent to $21.6 million.
- Advanced RevPAR 3.9 percent to $35.69 for the 74 same store hotels in continuing operations.
- Reduced loss from continuing operations to $2.7 million, an improvement of 36.6 percent over the same year-ago period.
- Improved continuing operations Property Operating Income (POI) $0.7 million, or 13.3 percent.
- Improved net income attributable to common shareholders to $1.6 million, primarily on gains from the sale of four non-strategic hotels.
- Improved Adjusted EBITDA by $0.4 million, or 6.5% percent, over the same year-ago period.
- Sold four economy hotels generating gross proceeds of $9.6 million.
- Moved into the upscale segment with the purchase of a 100-room Hilton Garden Inn on Solomons Island in Maryland.
Second Quarter Operating and Financial Results
Revenues from continuing operations for the 2012 second quarter rose $1.1 million, or 5.5 percent, to $21.6 million, compared to the same year-ago period. The improved performance primarily was due to the increased average daily rate (ADR) of the same store portfolio, in addition to the acquisition of the Hilton Garden Inn.
The company reported net income attributable to common shareholders of $1.6 million, or $0.07 per diluted share for the 2012 second quarter, compared to a net loss of $(4.5) million or $(0.20) per diluted share for the same 2011 period. The second quarter increase of $6.1 million is primarily attributable to a $4.4 million increase in gains related to dispositions of hotels, a $0.9 million unrealized gain from the reduction in fair market value of the derivative liabilities, and a $0.7 million decrease in total non cash impairment losses; the total non cash impairment losses for the three months ended June 30, 2012 were $4.1 million versus $4.8 million for the like prior period.
Funds from operations (FFO) in the 2012 second quarter was $3.1 million, compared to $2.6 million in the same 2011 period. Adjusted funds from operations (AFFO), which is FFO adjusted to include gain or exclude losses on derivatives and exclude acquisition expense, in the 2012 second quarter was $2.4 million, compared to $2.6 million in the same 2011 period.
Earnings before interest, taxes, depreciation and amortization, (EBITDA) increased to $6.7 million, compared to $1.0 million for the second quarter of 2011. Adjusted EBITDA, which is EBITDA before non-controlling interest, net gain on disposition of assets, impairment, preferred stock dividends, unrealized gain/loss on derivatives and acquisition expense, increased to $6.2 million, or 6.5 percent compared to $5.8 million for the second quarter of 2011.
In the 2012 second quarter, the 74-hotel same store portfolio reported an increase in revenue per available room (RevPAR) of 3.9 percent led by a 3.1 percent improvement in ADR and a 0.7 percent increase in occupancy, compared to the 2011 second quarter.
“The significantly improved results in the 2012 second quarter reflect the full ramp-up of our management companies, the continued improvement in our portfolio make-up and the benefits of the infusion of $30 million in new equity in the 2012 first quarter,” said Kelly A. Walters, Supertel president and CEO.
Second Quarter 2012 vs Second Quarter 2011
-----------------------------------------------------------------
Occ % ADR ($) RevPAR ($)
2012 2011 Variance 2012 2011 Variance 2012 2011 Variance
----- ----- -------- ------ ------ --------- ----- ----- --------
Industry -
Total US
Market 65.1% 63.2% 3.1% 106.41 101.63 4.7% 69.32 64.22 7.9%
Supertel -
Same
Store
Operations
(74
hotels) 67.9% 67.4% 0.7% 52.54 50.98 3.1% 35.69 34.34 3.9%
Chain
Scale
Industry -
Upper
Midscale 67.7% 65.4% 3.4% 98.29 94.38 4.2% 66.50 61.73 7.7%
Supertel -
Upper
Midscale
(21) 71.2% 69.5% 2.4% 72.99 71.23 2.5% 51.95 49.51 4.9%
Industry -
Midscale 58.9% 56.6% 4.0% 74.96 72.53 3.4% 44.17 41.08 7.5%
Supertel -
Midscale
(6) 56.6% 47.6% 18.9% 64.83 63.53 2.0% 36.68 30.24 21.3%
Industry -
Economy 57.6% 56.3% 2.2% 52.76 50.47 4.5% 30.36 28.42 6.8%
Supertel -
Economy
(40) 66.5% 66.9% -0.6% 50.47 49.46 2.0% 33.54 33.07 1.4%
Industry -
Extended
Stay n/a n/a n/a n/a n/a n/a n/a n/a n/a
Supertel -
Extended
Stay (7) 71.7% 73.1% -1.9% 24.71 23.75 4.0% 17.72 17.37 2.0%
Industry Source: STR Monthly Review
Upscale Hotels
The operating results for the Hilton Garden Inn, which was purchased on May 25, 2012, are not reflected in the 74 same store hotel operating results. The hotel generated RevPAR of $93.04, driven by $126.05 ADR and 73.8 percent occupancy during the period of May 25, 2012, through June 30, 2012.
Upper Midscale Hotels
Second quarter RevPAR for the company’s 21 continuing operations, upper midscale hotels rose 4.9 percent to $51.95, led by a 2.5 percent improvement in ADR to $72.99 and a 2.4 percent increase in occupancy. Upper midscale hotel brands currently in the company’s portfolio include Comfort Inns, Comfort Suites, Hampton Inn and Holiday Inn Express.
Midscale Hotels
RevPAR for the company’s six continuing operations midscale hotels rose sharply, 21.3 percent, to $36.68. Occupancy increased 18.9 percent with an ADR increase of 2.0 percent to $64.83. Supertel’s midscale brands include Quality Inn, Sleep Inn, Baymont Inn and Ramada Limited.
Economy Hotels
The company’s 40 continuing operations economy hotels reported a 1.4 percent increase in RevPAR to $33.54 in the 2012 second quarter as a result of a 2.0 percent rise in ADR to $50.47, partially offset by a 0.6 percent decrease in occupancy. Supertel’s branded properties in this segment include Days Inn, Super 8, Key West Inns and Guesthouse Inn.
Extended Stay Hotels
The company’s seven continuing operations, extended-stay hotels reported a 2.0 percent increase in RevPAR to $17.72, led by a 4.0 percent increase in ADR to $24.71, partially offset by a 1.9 percent decline in occupancy. Hotels in this segment include the Savannah Suites brand.
“While we are not yet satisfied with our performance in the midscale segment, overall, our hotels continue to achieve above average occupancy compared to the industry, which provides opportunities to increase ADR,” Walters noted. “We have instructed our operators to evaluate raising room rates as aggressively as possible, while carefully monitoring market conditions and adjusting accordingly. We believe there is still room for ADR improvement, without materially impacting occupancy.”
“Our operators have done a noteworthy job in controlling costs, which is reflected in our 4.6 percent increase for the quarter in property operating income of the total portfolio,” he added. “Year-to-date through the second quarter, revenues rose at twice the rate of incremental labor costs; and management fees remained essentially flat on higher revenues when compared with last year. We attribute the bulk of these improvements to our 2011 decision to move to regional operators from one centralized management company.
“What makes these results all the more gratifying is that many of our markets are in smaller population centers,” he noted. “While they did not suffer as much in the downturn, many of these markets continue to lag behind in the rebound. Although our results were not as strong as the industry as a whole in the 2012 second quarter, we believe they showed good growth given the local economies in which they operate.”
Interest expense from continuing operations decreased slightly to $2.1 million for the quarter. In addition, the company temporarily paid its credit line down to zero by applying the unused portion of its recent equity infusion. A portion of the credit line is expected to be invested in hotel acquisitions by year end. Depreciation and amortization expense from continuing operations declined $0.1 million from the 2011 second quarter to $2.2 million.
Property operating income (POI) from continuing operations for the 2012 second quarter rose $0.7 million, or 13.3 percent, compared to the same period a year earlier. The increase was led by higher same store room revenue, and improved expense management by our new operators, and $0.1 million of POI from the new Hilton Garden Inn in Solomons, Maryland. POI is calculated as revenue from room rentals and other hotel services less hotel and property operations expenses. See attached chart (Property Operating Income Percent Second Quarter 2012 versus Second Quarter 2011).
Year-to-Date Operating and Financial Results
Revenues from continuing operations for the six months ended June 30, 2012 rose $1.5 million or 4.2 percent, to $38.2 million, compared to $36.7 million for the same year-ago period.
Net loss attributable to common shareholders was $(3.0) million, or $(0.13) per diluted share for the six months ended June 30, 2012, compared to a net loss of $(8.5) million, or $(0.37) per diluted share for the same 2011 period.
RevPAR for the 74 same store hotels was $31.82, a 2.9 percent increase compared to the same period in 2011.
FFO for the six months ended June 30, 2012 was $1.6 million, compared to $1.6 million for the same 2011 period. The company’s Adjusted FFO for six months ended June 30, 2012 was $2.1 million, which is an increase of $0.5 million over the $1.6 million reported at June 30, 2011.
Earnings before interest, taxes, depreciation and amortization, impairment, non controlling interest, net gain on disposition of assets, preferred stock dividends, unrealized gain/loss on derivatives and acquisition expense (Adjusted EBITDA) increased to $8.5 million, compared to $7.2 million for the prior year.
Acquisition Activity
On May 25, the company purchased, in an all cash transaction, the 100-room Hilton Garden Inn in Solomons Island, Maryland for $11.5 million, excluding closing costs and fees. The purchase was funded with proceeds from the company’s first quarter preferred equity capital raise. The company currently is negotiating a mortgage loan for the property, which it expects to complete by year-end.
“While we’ve only owned the property for two months, we already are seeing a positive impact on our overall portfolio,” Walters said. “The hotel has performed to our expectations and continues to hold a substantial market share RevPAR premium over its competitive set. This hotel has multiple, year-round demand generators, and we are quite positive about this acquisition.”
Walters noted, “The company is pursuing several other acquisitions with a similar profile: premium-branded, select-service hotels in healthy secondary markets with identifiable and durable sources of business.”
Disposition Program
During the 2012 second quarter, the company sold four hotels: a 49-room Super 8 hotel located in El Dorado, Kansas, for $1.6 million, an 87-room Super 8 in Sedalia, Missouri for $1.8 million; a 119-room Super 8 in Wichita, Kansas for $4.1 million; and a 127-room Masters Inn in Tampa, Florida for $2.05 million. Proceeds were used to reduce associated mortgage debt by $7.8 million.
“We continue to average selling a non-core hotel approximately every six to eight weeks,” Walters noted. “Financing has eased somewhat, but still takes time for the buyers to obtain. Most of our transactions remain single sales, but we are exploring opportunities for targeted portfolio sales.”
Property Renovations
The company invested $1.6 million in property improvements in the 2012 second quarter. “Based on our experience with renovations at similar hotels, while it causes a temporary displacement in revenues, we typically see improved bottom line results through steady RevPAR growth and improved market share,” Walters said.
Balance Sheet
“Our balance sheet is stronger now than at any point in the last few years,” said Connie Scarpello, chief financial officer. “We have reduced our debt by $32.2 million, or 18.9 percent, in the past 12 months. We will continue to reduce our debt leverage ratios, with a long-term goal of approximately 50 percent debt-to-total enterprise value over time.”
Outstanding debt on hotels in continuing operations totaled $117.6 million, and has an average term to maturity of 3.2 years and a weighted average annual interest rate of 6.4 percent.
“We are in negotiations to finance $28.6 million debt mortgage that matures this year,” Scarpello said. “We also expect to place a prudent amount of debt on our recently acquired Hilton Garden Inn to free up funds to acquire additional hotels.”
“The terms of the preferred capital raise require the company to invest $20 million of equity in hotels meeting the firm’s investment criteria, $11.7 million, including acquisition expenses, of which was used to purchase the Hilton Garden Inn in Solomons, Maryland, initially for cash. The remaining $8.3 million was used to pay down the Great Western revolver until other core acquisitions are ready to close which will then involve drawing down on our credit lines as well as using the proceeds from the financing of the Hilton Garden Inn. By year end, the company has plans to invest as much as $40 million in equity and debt as we begin to rebuild our portfolio,” Walters said. “We continue to focus on balance sheet improvements through additional de-levering measures.”
Subsequent Events
Following the close of the second quarter, the company closed on the sale of its 57-room Super 8 hotel in Watertown, South Dakota for $1.55 million. The associated mortgage debt was fully retired with excess proceeds applied to general corporate purposes.
Dividends
The company did not declare a common stock dividend for the 2012 second quarter. Preferred dividends continued uninterrupted. The company will monitor requirements to maintain its REIT status and will routinely evaluate the dividend policy. The company intends to continue to meet its dividend requirements to retain its REIT status.
Outlook
“We are making steady process in implementing our business plan,” Walters said. “We have made meaningful strides in improving operations, are improving our portfolio make up by selling off non-strategic assets while launching an acquisition program. The weak economic recovery in many markets where we own hotels keeps us cautious, but our dependency on tertiary markets is decreasing steadily as we sell non-core properties. On balance, with proper execution of our business plan, we believe Supertel has a promising future.”
About Supertel Hospitality, Inc.
Supertel Hospitality, Inc. (NASDAQ: SPPR) is a self-administered real estate investment trust that specializes in the ownership of select-service hotels. The company currently owns 94 hotels comprising 8,283 rooms in 23 states. Supertel’s hotels are franchised by a number of the industry’s most well-regarded brand families, including Hilton, IHG, Choice and Wyndham. For more information or to make a hotel reservation, visit www.supertelinc.com.
Forward Looking Statement
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These risks are discussed in the Company’s filings with the Securities and Exchange Commission.
Supertel Hospitality, Inc.
Balance Sheet
As of June 30, 2012, and December 31, 2011
(dollars in thousands, except share and per share data)
The Company owned 95 hotels (including 20 hotels in discontinued
operations) at June 30, 2012, and 105 hotels as of December 31, 2011
respectively.
As of
June 30, December 31,
2012 2011
------------- -------------
(unaudited)
ASSETS
Investments in hotel properties $ 263,534 $ 255,677
Less accumulated depreciation 78,326 76,777
------------- -------------
185,208 178,900
Cash and cash equivalents 1,167 279
Accounts receivable, net of allowance for
doubtful accounts of $194 and $194 2,808 1,891
Prepaid expenses and other assets 10,287 8,917
Deferred financing costs, net 709 850
Investment in hotel properties, held for
sale, net 22,121 30,335
------------- -------------
$ 222,300 $ 221,172
============= =============
LIABILITIES AND EQUITY
LIABILITIES
Accounts payable, accrued expenses and other
liabilities $ 13,051 $ 10,704
Derivative liabilities, at fair value 16,035 -
Debt related to hotel properties held for
sale 20,824 35,173
Long-term debt 117,625 130,672
------------- -------------
167,535 176,549
------------- -------------
Redeemable noncontrolling interest in
consolidated partnership, at redemption
value 114 114
Redeemable preferred stock
10% Series B, 800,000 shares authorized;
$.01 par value, 332,500 shares
outstanding, liquidation preference of
$8,312 7,662 7,662
EQUITY
Shareholders' equity
Preferred stock, 40,000,000 shares
authorized; 8% Series A, 2,500,000 shares
authorized, $.01 par value, 803,270 shares
outstanding, liquidation preference of
$8,033 8 8
6.25% Series C, 3,000,000 shares authorized,
$.01 par value, 3,000,000 shares
outstanding, liquidation preference of
$30,000 30 -
Common stock, $.01 par value, 200,000,000
shares authorized; 23,128,477 and
23,070,387 shares outstanding 231 231
Common stock warrants 252 252
Additional paid-in capital 134,762 121,619
Distributions in excess of retained earnings (88,425) (85,398)
------------- -------------
Total shareholders' equity 46,858 36,712
Noncontrolling interest
Noncontrolling interest in consolidated
partnership, redemption value $92 and $64 131 135
------------- -------------
Total equity 46,989 36,847
------------- -------------
COMMITMENTS AND CONTINGENCIES
$ 222,300 $ 221,172
============= =============
Supertel Hospitality, Inc.
Results of Operations
For the three and six months ended June 30, 2012 and 2011, respectively
(Unaudited-Dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
-------------------- --------------------
2012 2011 2012 2011
--------- --------- --------- ---------
REVENUES
Room rentals and other hotel
services $ 21,562 $ 20,433 $ 38,243 $ 36,703
--------- --------- --------- ---------
EXPENSES
Hotel and property operations 15,269 14,878 28,810 28,366
Depreciation and amortization 2,226 2,313 4,350 4,559
General and administrative 921 1,001 2,014 2,104
Acquisition expense 162 - 162 1
Termination cost - - - 540
--------- --------- --------- ---------
18,578 18,192 35,336 35,570
--------- --------- --------- ---------
EARNINGS BEFORE NET LOSS ON
DISPOSITIONS OF ASSETS, OTHER
INCOME, INTEREST EXPENSE AND
INCOME TAXES 2,984 2,241 2,907 1,133
Net loss on dispositions of
assets (4) (8) (7) (14)
Other income (expense) 872 20 (341) 105
Interest expense (2,057) (2,147) (4,173) (4,482)
Impairment (4,096) (4,198) (3,714) (4,392)
--------- --------- --------- ---------
LOSS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES (2,301) (4,092) (5,328) (7,650)
Income tax (expense) benefit (353) (97) 111 512
--------- --------- --------- ---------
LOSS FROM CONTINUING OPERATIONS (2,654) (4,189) (5,217) (7,138)
Gain (loss) from discontinued
operations, net of tax 5,094 77 3,686 (685)
--------- --------- --------- ---------
NET INCOME (LOSS) 2,440 (4,112) (1,531) (7,823)
Noncontrolling interest (8) 3 (2) 14
--------- --------- --------- ---------
NET INCOME (LOSS) ATTRIBUTABLE
TO CONTROLLING INTERESTS 2,432 (4,109) (1,533) (7,809)
Preferred stock dividends (837) (369) (1,494) (737)
--------- --------- --------- ---------
NET INCOME (LOSS) ATTRIBUTABLE
TO COMMON SHAREHOLDERS $ 1,595 $ (4,478) $ (3,027) $ (8,546)
========= ========= ========= =========
NET INCOME (LOSS) PER COMMON
SHARE - BASIC AND DILUTED
EPS from continuing operations $ (0.15) $ (0.20) $ (0.29) $ (0.34)
========= ========= ========= =========
EPS from discontinued operations $ 0.22 $ - $ 0.16 $ (0.03)
========= ========= ========= =========
EPS basic and diluted $ 0.07 $ (0.20) $ (0.13) $ (0.37)
========= ========= ========= =========
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
FFO and AFFO
FFO and Adjusted FFO (“AFFO”) are non-GAAP financial measures. We consider FFO and AFFO to be market accepted measures of an equity REIT’s operating performance, which are necessary, along with net earnings (loss), for an understanding of our operating results. FFO, as defined under the National Association of Real Estate Investment Trusts (NAREIT) standards, consists of net income computed in accordance with GAAP, excluding gains (or losses) from sales of real estate assets, plus depreciation and amortization of real estate assets. We believe our method of calculating FFO complies with the NAREIT definition. AFFO is FFO adjusted to include gain or exclude losses on derivative liabilities, which is a non-cash charge against income and which does not represent results from our core operations. AFFO also adds back acquisition costs. FFO and AFFO do not represent amounts available for management’s discretionary use because of needed capital replacement or expansion, debt service obligations, or other commitments and uncertainties. FFO and AFFO should not be considered as alternatives to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. All REITs do not calculate FFO and AFFO in the same manner; therefore, our calculation may not be the same as the calculation of FFO and AFFO for similar REITs.
Diluted FFO per share and diluted Adjusted FFO per share are computed after adjusting the numerator and denominator of the basic computation for the effects of any dilutive potential common shares outstanding during the period. Up to 30,000,000 shares of common stock may be issued upon conversion of the Series C convertible preferred stock, and adjustments are made for these shares in the computation of diluted FFO per share and diluted Adjusted FFO per share. The Company’s outstanding warrants to purchase common stock and stock options would be antidilutive and are not included in the dilution computation.
We use FFO and AFFO as performance measures to facilitate a periodic evaluation of our operating results relative to those of our peers. We consider FFO and AFFO to be useful additional measures of performance for an equity REIT because it facilitates an understanding of the operating performance of our properties without giving effect to real estate depreciation and amortization, which assume that the value of real estate assets diminishes predictably over time. Since real estate values have historically risen or fallen with market conditions, we believe that FFO and AFFO provide a meaningful indication of our performance.
(Unaudited-In thousands, except per share data)
Three months Six Months
ended June 30, ended June 30,
2012 2011 2012 2011
--------- --------- --------- ---------
RECONCILIATION OF NET INCOME
(LOSS) TO FFO
Net income (loss) attributable
to common shareholders $ 1,595 $ (4,478) $ (3,027) $ (8,546)
Depreciation and amortization 2,226 2,643 4,396 5,263
Net gain on disposition of
assets (4,772) (354) (5,263) (335)
Impairment 4,083 4,813 5,517 5,262
--------- --------- --------- ---------
FFO available to common
shareholders $ 3,132 $ 2,624 $ 1,623 $ 1,644
Unrealized (gain) loss on
derivatives (867) - 346 -
Acquisition expense 162 - 162 1
--------- --------- --------- ---------
Adjusted FFO $ 2,427 $ 2,624 $ 2,131 $ 1,645
========= ========= ========= =========
FFO available to common
shareholders $ 3,132 $ 2,624 $ 1,623 $ 1,644
Dividends paid on Series C
convertible preferred stock 469 - 758 -
--------- --------- --------- ---------
FFO for FFO per share - diluted $ 3,601 $ 2,624 $ 2,381 $ 1,644
========= ========= ========= =========
Adjusted FFO available to common
shareholders $ 2,427 $ 2,624 $ 2,131 $ 1,645
Dividends paid on Series C
convertible preferred stock 469 - 758 -
--------- --------- --------- ---------
Adjusted FFO for Adjusted FFO
per share - diluted $ 2,896 $ 2,624 $ 2,889 $ 1,645
========= ========= ========= =========
Weighted average shares
outstanding for:
calculation of FFO per share -
basic 23,075 22,964 23,073 22,941
========= ========= ========= =========
calculation of FFO per share -
diluted 53,075 22,964 47,271 22,941
========= ========= ========= =========
FFO per share - basic $ 0.14 $ 0.11 $ 0.07 $ 0.07
========= ========= ========= =========
Adjusted FFO per share - basic $ 0.11 $ 0.11 $ 0.09 $ 0.07
========= ========= ========= =========
FFO per share - diluted $ 0.07 $ 0.11 $ 0.05 $ 0.07
========= ========= ========= =========
Adjusted FFO per share - diluted $ 0.05 $ 0.11 $ 0.06 $ 0.07
========= ========= ========= =========
EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA are financial measures that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We calculate EBITDA and Adjusted EBITDA by adding back to net earnings (loss) available to common shareholders certain non-operating expenses and non-cash charges which are based on historical cost accounting and we believe may be of limited significance in evaluating current performance. We believe these adjustments can help eliminate the accounting effects of depreciation and amortization and financing decisions and facilitate comparisons of core operating profitability between periods, even though EBITDA and Adjusted EBITDA also do not represent an amount that accrues directly to common shareholders. In calculating Adjusted EBITDA, we add back noncontrolling interest, net (gain) loss on disposition of assets, preferred stock dividends and acquisition expenses which are cash charges. We also add back impairment and unrealized gain or loss on derivatives, which are non-cash charges.
EBITDA and Adjusted EBITDA do not represent cash generated from operating activities determined by GAAP and should not be considered as alternatives to net income, cash flow from operations or any other operating performance measure prescribed by GAAP. EBITDA and Adjusted EBITDA are not measures of our liquidity, nor are they indicative of funds available to fund our cash needs, including our ability to make cash distributions. Neither do the measurements reflect cash expenditures for long-term assets and other items that have been and will be incurred. EBITDA and Adjusted EBITDA may include funds that may not be available for management’s discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, and other commitments and uncertainties. To compensate for this, management considers the impact of these excluded items to the extent they are material to operating decisions or the evaluation of our operating performance. Adjusted EBITDA, as presented, may not be comparable to similarly titled measures of other companies.
(Unaudited-In thousands, except statistical data)
Three months Six months
ended June 30, ended June 30,
2012 2011 2012 2011
-------- -------- -------- --------
RECONCILIATION OF NET INCOME (LOSS)
TO ADJUSTED EBITDA
Net income (loss) attributable to
common shareholders $ 1,595 $ (4,478) $ (3,027) $ (8,546)
Interest expense, including
discontinued operations 2,549 2,862 5,227 5,964
Income tax expense (benefit),
including discontinued operations 354 (55) (308) (1,127)
Depreciation and amortization,
including discontinued operations 2,226 2,643 4,396 5,263
-------- -------- -------- --------
EBITDA 6,724 972 6,288 1,554
Noncontrolling interest 8 (3) 2 (14)
Net gain on disposition of assets (4,772) (354) (5,263) (335)
Impairment 4,083 4,813 5,517 5,262
Preferred stock dividend 837 369 1,494 737
Unrealized (gain) loss on
derivatives (867) - 346 -
Acquisition expense 162 - 162 1
-------- -------- -------- --------
ADJUSTED EBITDA $ 6,175 $ 5,797 $ 8,546 $ 7,205
======== ======== ======== ========
Supertel Hospitality, Inc.
Operating Statistics by Chain Scale Classification - Hotels in Continuing
Operations
For the three and six months ended June 30, 2012 and 2011, respectively
(Unaudited - In thousands, except per share data)
Three months Six months
ended June 30, ended June 30,
2012 2011 2012 2011
--------- --------- --------- ---------
Same Store:*
Revenue per available room
(RevPAR):
Upper Midscale $ 51.95 $ 49.51 $ 46.03 $ 42.99
Midscale $ 36.68 $ 30.24 $ 32.27 $ 29.00
Economy $ 33.54 $ 33.07 $ 29.48 $ 29.65
Extended Stay $ 17.72 $ 17.37 $ 17.63 $ 17.69
--------- --------- --------- ---------
Total $ 35.69 $ 34.34 $ 31.82 $ 30.92
========= ========= ========= =========
Average daily room rate (ADR):
Upper Midscale $ 72.99 $ 71.23 $ 69.85 $ 68.63
Midscale $ 64.83 $ 63.53 $ 62.66 $ 61.43
Economy $ 50.47 $ 49.46 $ 49.25 $ 48.16
Extended Stay $ 24.71 $ 23.75 $ 24.55 $ 23.61
--------- --------- --------- ---------
Total $ 52.54 $ 50.98 $ 50.57 $ 48.92
========= ========= ========= =========
Occupancy percentage:
Upper Midscale 71.2% 69.5% 65.9% 62.6%
Midscale 56.6% 47.6% 51.5% 47.2%
Economy 66.5% 66.9% 59.9% 61.6%
Extended Stay 71.7% 73.1% 71.8% 74.9%
--------- --------- --------- ---------
Total 67.9% 67.4% 62.9% 63.2%
========= ========= ========= =========
*Same store reflects 74 hotels.
Supertel Hospitality, Inc.
Property Operating Income (POI) - Continuing and Discontinued Operations
Note: This presentation includes non-GAAP financial measures. The Company
believes that the presentation of hotel property operating income (POI) is
helpful to investors, and represents a useful description of its
operations, as it communicates the comparability of its hotels' operating
results.
Unaudited-In thousands, except
statistical data: Three months Six months
ended June 30, ended June 30,
2012 2011 2012 2011
--------- --------- --------- ---------
Total Same Store Hotels (74
hotels):
Revenue per available room
(RevPAR): $ 35.69 $ 34.34 $ 31.82 $ 30.92
Average daily room rate (ADR): $ 52.54 $ 50.98 $ 50.57 $ 48.92
Occupancy percentage: 67.9% 67.4% 62.9% 63.2%
--------- --------- --------- ---------
Continuing Operations
Revenue from room rentals and
other hotel services consists
of:
Room rental revenue $ 20,927 $ 19,854 $ 37,084 $ 35,560
Telephone revenue 71 75 148 146
Other hotel service revenues 564 504 1,011 997
--------- --------- --------- ---------
Total revenue from room
rentals and other hotel
services $ 21,562 $ 20,433 $ 38,243 $ 36,703
========= ========= ========= =========
Hotel and property operations
expense
Total hotel and property
operations expense $ 15,269 $ 14,878 $ 28,810 $ 28,366
========= ========= ========= =========
Property Operating Income
("POI") from Continuing
Operations
Total POI - continuing
operations $ 6,293 $ 5,555 $ 9,433 $ 8,337
========= ========= ========= =========
POI - continuing operations as a
percentage of revenue from room
rentals and other hotel
services
POI - continuing operations as
a percentage of revenue 29.2% 27.2% 24.7% 22.7%
========= ========= ========= =========
--------- --------- --------- ---------
Discontinued Operations
Room rentals and other hotel
services
Total room rental and other
hotel services $ 4,847 $ 6,314 $ 9,036 $ 11,619
========= ========= ========= =========
Hotel and property operations
expense
Total hotel and property
operations expense $ 4,049 $ 5,091 $ 7,914 $ 10,162
========= ========= ========= =========
Property Operating Income
("POI") from discontinued
operations
POI - discontinued operations $ 798 $ 1,223 $ 1,122 $ 1,457
========= ========= ========= =========
POI - discontinued operations as
a percentage of revenue from
room rentals and other hotel
services
POI - discontinued operations
as a percentage of revenue 16.5% 19.4% 12.4% 12.5%
========= ========= ========= =========
Three months Six months
ended June 30 ended June 30
2012 2011 2012 2011
--------- --------- --------- ---------
Reconciliation of net loss from
continuing operations to POI
from continuing operations
Net loss from continuing
operations $ (2,654) $ (4,189) $ (5,217) $ (7,138)
Depreciation and amortization 2,226 2,313 4,350 4,559
Net loss on disposition of
assets 4 8 7 14
Other (income) expense (872) (20) 341 (105)
Interest expense 2,057 2,147 4,173 4,482
General and administrative
expense 921 1,001 2,014 2,104
Acquisition, termination expense 162 - 162 1
Termination cost - - - 540
Income tax (benefit) expense 353 97 (111) (512)
Impairment expense 4,096 4,198 3,714 4,392
--------- --------- --------- ---------
POI - continuing operations $ 6,293 $ 5,555 $ 9,433 $ 8,337
========= ========= ========= =========
Net income (loss) as a
percentage of continuing
operations revenue from room
rentals and other hotel
services -12.3% -20.5% -13.6% -19.4%
========= ========= ========= =========
Reconciliation of loss from
discontinued operations to POI from Three months Six months
discontinued operations: ended June 30, ended June 30,
2012 2011 2012 2011
-------- -------- -------- --------
Gain (loss) from discontinued
operations $ 5,094 $ 77 $ 3,686 $ (685)
Depreciation and amortization from
discontinued operations - 330 46 704
Net gain on disposition of assets
from discontinued operations (4,776) (362) (5,270) (349)
Interest expense from discontinued
operations 492 715 1,054 1,482
General and administrative expense
from discontinued operations - - - 50
Impairment losses from discontinued
operations (13) 615 1,803 870
Income tax benefit from discontinued
operations 1 (152) (197) (615)
-------- -------- -------- --------
POI - discontinued operations $ 798 $ 1,223 $ 1,122 $ 1,457
======== ======== ======== ========
Reconciliation of Total POI: Three months Six months
ended June 30, ended June 30,
2012 2011 2012 2011
-------- -------- -------- --------
POI - Continuing operations 6,293 5,555 9,433 8,337
POI - Discontinued operations 798 1,223 1,122 1,457
-------- -------- -------- --------
Total - POI $ 7,091 $ 6,778 $ 10,555 $ 9,794
======== ======== ======== ========
Total POI as a percentage of
revenues 26.9% 25.3% 22.3% 20.3%
======== ======== ======== ========
Supertel Hospitality, Inc.
Operating Statistics by Region
For the three months ended June 30, 2012 and 2011, respectively
(Unaudited - In thousands, except per share data)
The comparisons of same store operations are for 74 hotels in continuing
operations as of April 1, 2011.
Three months ended June Three months ended June
30, 2012 30, 2011
------------------------ -----------------------
Room Room
Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR
--------------------- ------ --------- ------- ----- ------ --------- ------
Mountain 214 $40.06 77.8% $ 51.47 214 $35.03 69.2% $50.60
West North
Central 1,559 36.13 69.9% 51.65 1,559 33.71 67.4% 50.04
East North
Central 978 37.78 61.1% 61.88 978 37.78 61.4% 61.51
Middle Atlantic 142 51.10 82.0% 62.33 142 47.62 79.9% 59.63
South Atlantic 2,525 32.66 69.4% 47.05 2,525 31.66 69.7% 45.43
East South
Central 563 46.03 68.2% 67.52 563 41.20 61.9% 66.52
West South
Central 373 24.31 55.4% 43.89 373 30.26 69.4% 43.57
----- ------ --------- ------- ----- ------ --------- ------
Total Same Store
(74 hotels) 6,354 $35.69 67.9% $ 52.54 6,354 $34.34 67.4% $50.98
----- ------ --------- ------- ----- ------ --------- ------
South Atlantic
Acquisitions 100 $93.04 73.8% $126.05 - $ - 0.0% $ -
----- ------ --------- ------- ----- ------ --------- ------
Total
Acquisitions 100 $93.04 73.8% $126.05 - $ - 0.0% $ -
----- ------ --------- ------- ----- ------ --------- ------
Total 6,454 $36.05 68.0% $ 53.05 6,354 $34.34 67.4% $50.98
===== ====== ========= ======= ===== ====== ========= ======
States included
in the Regions
Mountain Idaho and Montana
West North
Central Iowa, Kansas, Missouri, Nebraska and South Dakota
East North
Central Indiana and Wisconsin
Middle Atlantic Pennsylvania
South Atlantic Delaware, Florida, Georgia, Maryland, North Carolina, South
Carolina, Virginia and West Virginia
East South
Central Kentucky and Tennessee
West South
Central Arkansas and Louisiana
Supertel Hospitality, Inc.
Operating Statistics by Region
For the six months ended June 30, 2012 and 2011, respectively
(Unaudited - In thousands, except per share data)
The comparisons of same store operations are for 74 hotels in continuing
operations as of January 1, 2011.
Six months ended June Six months ended June
30, 2012 30, 2011
------------------------ -----------------------
Room Room
Region Count RevPAR Occupancy ADR Count RevPAR Occupancy ADR
--------------------- ------ --------- ------- ----- ------ --------- ------
Mountain 214 $32.78 65.8% $ 49.79 214 $29.22 60.8% $48.06
West North
Central 1,559 30.64 60.9% 50.27 1,559 29.61 61.2% 48.37
East North
Central 978 33.39 55.6% 60.01 978 33.16 55.5% 59.76
Middle Atlantic 142 42.86 71.9% 59.62 142 39.62 69.9% 56.71
South Atlantic 2,525 30.57 67.9% 45.03 2,525 29.48 68.3% 43.19
East South
Central 563 39.67 60.1% 65.99 563 36.59 55.8% 65.61
West South
Central 373 24.19 55.6% 43.55 373 29.36 67.5% 43.47
----- ------ --------- ------- ----- ------ --------- ------
Total Same Store
(74 hotels) 6,354 $31.82 62.9% $ 50.57 6,354 $30.92 63.2% $48.92
===== ====== ========= ======= ===== ====== ========= ======
South Atlantic
Acquisitions 100 $93.04 73.8% $126.05 - $ - 0.0% $ -
----- ------ --------- ------- ----- ------ --------- ------
Total
Acquisitions 100 $93.04 73.8% $126.05 - $ - 0.0% $ -
----- ------ --------- ------- ----- ------ --------- ------
Total 6,454 $32.01 63.0% $ 50.85 6,354 $30.92 63.2% $48.92
===== ====== ========= ======= ===== ====== ========= ======
States included
in the Regions
Mountain Idaho and Montana
West North
Central Iowa, Kansas, Missouri, Nebraska and South Dakota
East North
Central Indiana and Wisconsin
Middle Atlantic Pennsylvania
South Atlantic Delaware, Florida, Georgia, Maryland, North Carolina, South
Carolina, Virginia and West Virginia
East South
Central Kentucky and Tennessee
West South
Central Arkansas and Louisiana
Note: During the reporting periods above, no properties were moved from the same store portfolio and reclassified as held for sale and no properties which were included in discontinued operations (held for sale) were reclassified as held for use.
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Contact:
Ms. Krista Arkfeld
Director of Corporate Communications
CALGARY, ALBERTA — (Marketwire) — 08/10/12 — Sonde Resources Corp. (“Sonde” or the “Company”) (TSX:SOQ) (NYSE MKT:SOQ) (NYSE Amex:SOQ) will be hosting a conference call on Tuesday, August 14, 2012, at 2:00 p.m. MST to provide a report on the Second Quarter 2012 results and an update on exploration and corporate activities. Mr. Jack Schanck, President and CEO will host the call. All interested parties can join the call by dialing (416) 340-9432 or (888) 340-9642. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay on our website within 48 hours of this conference call.
Sonde Resources Corp. is a Calgary, Alberta, Canada based diversified global energy company engaged in the exploration and production of oil and natural gas. Its operations are located in Western Canada and Offshore North Africa. See Sonde’s website at www.sonderesources.com to review further detail on Sonde’s operations.
Contacts:
Sonde Resources Corp.
Investor Relations
(403) 294-1411
(403) 216-2374 (FAX)
Sonde Resources Corp.
Suite 3200, 500 – 4th Avenue S.W.
Calgary, Alberta, Canada T2P 2V6
NEW YORK, NY and SHENZHEN, CHINA — (Marketwire) — 08/10/12 — Highpower International, Inc. (NASDAQ: HPJ), a developer, manufacturer and marketer of nickel-metal hydride (Ni-MH) and lithium rechargeable batteries and battery solutions, today announced financial results for the second quarter ended June 30, 2012.
Second Quarter 2012 Highlights
- Grew net sales by 43% sequentially for the second quarter of 2012 to $29.4 million from $20.6 million in the first quarter 2012
- Achieved record-level sales in both major battery segments — Lithium battery net sales up 56% over the second quarter of 2011 and 72% sequentially; Ni-MH battery net sales up 10% over the second quarter of 2011 and 32% sequentially
- Improved gross margins to 20.5% in the second quarter of 2012 from 16.0% in the second quarter 2012
- Returned to profitability; EPS attributable to Highpower International of $0.04 for second quarter of 2012
- Completed new facility; production to begin in August 2012
Management Commentary
“We are pleased with the strong performance we saw across our business in the second quarter, with exceptional growth in both our major battery segments and a return to profitability for the first time in a year,” said Mr. George Pan, Chairman and Chief Executive Officer of Highpower International. “Not only did our lithium business turn in its strongest results in the history of the company across all metrics, but we also had a nice recovery in our traditional Ni-MH business. We expect that our lithium business can grow rapidly for the foreseeable future with strong end-market demand for our cleaner lithium battery solutions. Moreover, we believe our Ni-MH business will continue to be a steady source of revenue and is well positioned to capitalize on consolidation trends emerging in the Ni-MH space. We are committed to building Highpower into a highly sustainable and profitable company and will achieve this by providing high-end, environmentally sound rechargeable batteries and future battery and e-waste recycling solutions.”
“Lastly, we also achieved another major corporate milestone recently when we completed the long awaited build out of our factory in Huizhou, Guangdong Province. This new facility will allow us to more efficiently manufacture batteries for our customers while meeting the increasing demand for our products. Production will begin in August,” concluded Mr. Pan.
Mr. Henry Sun, Chief Financial Officer of Highpower International, added, “The second quarter proved to be a positive turning point for Highpower despite weaker global macro concerns in both Europe and Asia. As expected, our Nickel-Metal Hydride battery business regained its growth momentum this quarter and we also benefited from lower commodity costs in comparison to the same period last year. Our Materials business continues the shift to a full-scale, more profitable battery and e-waste recycling model and we expect this business to begin to ramp up in 2013.”
Second Quarter 2012 Financial Results
Net sales for the second quarter ended June 30, 2012 totaled $29.4 million, a year-over-year decrease of 1% compared with $29.7 million for the second quarter ended June 30, 2011 and a sequential increase of 43% from the first quarter 2012. The slight year-over-year decrease in sales for the second quarter was primarily due to a decline in revenues in the Materials segment as this business shifts to a full recycling platform, but was offset in part by strong year-over-year sales increases in both the Ni-MH and lithium battery segments.
Second quarter 2012 gross profit increased to $6.0 million, as compared with $4.8 million for the second quarter of 2011. Gross profit margin was 20.5% for the second quarter of 2012, as compared with 16.0% for the second quarter of 2011, or a 450 basis point increase. The year-over-year increase in gross profit margin for the second quarter of 2012 was primarily due to a shift in our revenue mix away from the low margin Materials business, lower commodity costs, and better factory utilization due to the increased production volumes.
R&D spending was $1.2 million for the second quarter of 2012, as compared with $0.9 million for the comparable period in 2011, reflecting our continued increased investments in new product research activities and the expansion of our R&D workforce.
Selling and distribution costs were $1.3 million for second quarter of 2012 as compared with $1.0 million for the comparable period in 2011, primarily as a result of increased sales and marketing activities, including the expansion of our sales team with more experienced international sales personnel.
General and administrative expenses, including non-cash stock-based compensation, were $2.3 million for the second quarter of 2012, as compared with $2.1 million for the second quarter of 2011.
Income from operations for the second quarter of 2012 was $1.1 million as compared with income from operations of $0.7 million for the second quarter of 2011.
Net income attributable to Highpower International (exclusive of loss attributable to non-controlling interest) for the second quarter of 2012 was $0.5 million, or $0.04 per diluted share, based on 13.6 million weighted average shares outstanding. This compares with second quarter 2011 net income attributable to Highpower International (exclusive of loss attributable to non-controlling interest) of $0.4 million, or $0.03 per diluted share, based on 13.6 million weighted average shares outstanding.
Balance Sheet
At June 30, 2012, Highpower International had cash, cash equivalents and restricted cash totaling $23.1 million, total assets of $106.3 million, and stockholders’ equity of $30.1 million. Bank credit facilities totaled $63 million at June 30, 2012, of which $38 million was utilized and $25 million was available as unused credit.
Outlook
Based on our current expectations for global demand for the rechargeable battery market in 2012 and our continued shift toward higher-end products, we expect revenues from our battery business to grow between 15% and 25% over 2011 revenue levels. The revenue growth in our Ni-MH and lithium businesses will be offset by the shift away from our traditional Materials business to a full scale materials recycling business that will ramp up in 2013. We expect to remain profitable for the remainder of fiscal 2012.
Conference Call and Webcast
The Company will host a conference call today at 7:00 a.m. Pacific time/10:00 a.m. Eastern time to discuss these results and answer questions.
Individuals interested in participating in the conference call may do so by dialing 877-941-0844 from the U.S. or 480-629-9835 from outside the U.S. and referencing the reservation code 4553100. Those interested in listening to the conference call live via the Internet may do so by visiting the Investor Relations section of the Company’s Web site at www.highpowertech.com or www.InvestorCalendar.com.
About Highpower International, Inc.
Highpower International was founded in 2001 and produces Nickel-Metal Hydride (Ni-MH) and lithium-based rechargeable batteries. With over 3,000 employees and prominent international customers, Highpower is committed to expanding its market through continuous research and development as well as increased vertical integration efforts. As a company, Highpower International is committed to clean technology, not only in the products it makes, but also in the processes used to make them. The majority of Highpower International’s products are distributed worldwide to markets in the United States, Europe, China and Southeast Asia.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995 that are not historical facts. These statements can be identified by the use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “should,” “project,” “plan,” “seek,” “intend,” or “anticipate” or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and the Company’s future performance, operations and products. Such statements involve known and unknown risks, uncertainties and other factors that could cause the Company’s actual results to differ materially from the results expressed or implied by such statements. Such risks and uncertainties include, without limitation, the current economic downturn adversely affecting demand for the Company’s products; fluctuations in the cost of raw materials; the Company’s dependence on, or inability to attract additional, major customers for a significant portion of its net sales; the Company’s ability to increase manufacturing capabilities to satisfy orders from new customers; changes in the laws of the People’s Republic of China that affect the Company’s operations; the devaluation of the U.S. Dollar relative to the Renminbi; the Company’s dependence on the growth in demand for portable electronic devices and the success of manufacturers of the end applications that use the Company’s battery products; the Company’s responsiveness to competitive market conditions; the Company’s ability to successfully manufacture lithium batteries in the time frame and amounts expected; the market acceptance of the Company’s lithium products; changes in foreign, political, social, business and economic conditions that affect the Company’s production capabilities or demand for our products; and various other matters, many of which are beyond the Company’s control. For a more detailed discussion of these and other risks and uncertainties see “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s public filings including the Company’s Form 10-K for the fiscal year ended December 31, 2011 and its Form 10-Q for the quarter ended March 31, 2012 filed with the SEC and its Form 10-Q for the quarter ended June 30, 2012 to be filed with the SEC. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Any forward-looking statement made by us in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. The Company has no obligation to update the forward-looking information contained in this press release.
– financial tables to follow –
HIGHPOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(Stated in US Dollars)
Three months ended Six months ended
June 30, June 30,
2012 2011 2012 2011
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ----------- -----------
$ $ $ $
Net sales 29,377,682 29,708,154 49,980,465 56,658,820
Cost of sales (23,369,258) (24,942,124) (40,299,782) (47,892,431)
----------- ----------- ----------- -----------
Gross profit 6,008,424 4,766,030 9,680,683 8,766,389
Research and development
costs (1,233,585) (873,383) (2,117,931) (1,478,428)
Selling and distribution
costs (1,282,499) (980,663) (2,481,399) (2,155,348)
General and
administrative costs,
including stock-based
compensation (2,263,983) (2,098,497) (4,278,468) (4,205,335)
Income (loss) on
exchange rate
difference 153,360 (297,768) 122,030 (470,703)
Gain (loss) on
derivative instruments (304,147) 156,380 32,956 (234,196)
Equity loss in an
associate - (2,199) - (3,971)
----------- ----------- ----------- -----------
Income from operations 1,077,570 669,900 957,871 218,408
----------- ----------- ----------- -----------
Other income 61,185 66,119 228,218 218,255
Interest expenses (301,123) (170,591) (313,441) (260,142)
----------- ----------- ----------- -----------
Income before taxes 837,632 565,428 872,648 176,521
Income taxes expense (362,941) (137,017) (416,266) (142,778)
----------- ----------- ----------- -----------
Net income 474,691 428,411 456,382 33,743
----------- ----------- ----------- -----------
Less: net loss
attributable to non-
controlling interest (29,023) - (50,517) -
Net income attributable
to the Company 503,714 428,411 506,899 33,743
----------- ----------- ----------- -----------
Comprehensive income
Net income 474,691 428,411 456,382 33,743
Foreign currency
translation (loss) gain (282,868) 3,015 (137,963) (15,768)
----------- ----------- ----------- -----------
Comprehensive income 191,823 431,426 318,419 17,975
=========== =========== =========== ===========
Less: comprehensive loss
attributable to non-
controlling interest (46,997) - (68,449) -
Comprehensive income
attributable to the
Company 238,820 431,426 386,868 17,975
=========== =========== =========== ===========
Earnings per share of
common stock
attributable to the
Company
- Basic 0.04 0.03 0.04 -
=========== =========== =========== ===========
- Diluted 0.04 0.03 0.04 -
=========== =========== =========== ===========
Weighted average common
shares outstanding
- Basic 13,582,106 13,582,106 13,582,106 13,582,106
=========== =========== =========== ===========
- Diluted 13,582,106 13,585,661 13,582,106 13,582,578
=========== =========== =========== ===========
HIGHPOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Stated in US Dollars)
June 30, December 31,
2012 2011
------------- -------------
(Unaudited)
$ $
ASSETS
Current Assets:
Cash and cash equivalents 5,119,991 5,175,623
Restricted cash 18,017,812 12,708,999
Accounts receivable, net 25,753,706 21,129,418
Notes receivable 1,731,336 515,107
Prepayments 3,638,489 4,251,723
Other receivables 789,134 1,041,614
Inventories 16,368,579 13,512,942
------------- -------------
Total Current Assets 71,419,047 58,335,426
------------- -------------
Property, plant and equipment, net 28,979,438 25,462,656
Land use right, net 4,384,150 3,132,965
Intangible asset, net 725,000 750,000
Deferred tax assets 745,328 857,209
Foreign currency derivatives assets - 15,653
------------- -------------
TOTAL ASSETS 106,252,963 88,553,909
============= =============
LIABILITIES AND EQUITY
LIABILITIES
Current Liabilities:
Foreign currency derivatives liabilities 15,969 -
Accounts payable 23,842,503 22,153,822
Deferred revenue 648,298 -
Notes payable 20,801,187 17,909,843
Letter of credit - 2,880,000
Other payables and accrued liabilities 8,361,253 6,941,063
Income taxes payable 477,770 411,536
Short-term loan 14,179,842 9,545,383
------------- -------------
Total Current Liabilities 68,326,822 59,841,647
------------- -------------
Long-term loan 7,867,697 -
TOTAL LIABILITIES 76,194,519 59,841,647
============= =============
HIGHPOWER INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Stated in US Dollars)
June 30, December 31,
2012 2011
------------- -------------
(Unaudited)
$ $
EQUITY
Stockholder's equity
Preferred Stock
(Par value: $0.0001, Authorized: 10,000,000
shares, Issued and outstanding: none) - -
Common stock
(Par value : $0.0001, Authorized: 100,000,000
shares, 13,582,106 shares issued and
outstanding at June 30, 2012 and December 31,
2011) 1,358 1,358
Additional paid-in capital 5,924,400 5,831,237
Statutory and other reserves 2,726,390 2,726,390
Retained earnings 16,145,555 15,638,656
Accumulated other comprehensive income 4,376,658 4,514,621
------------- -------------
Total equity for the Company's stockholders 29,174,361 28,712,262
------------- -------------
Non-controlling interest 884,083 -
TOTAL EQUITY 30,058,444 28,712,262
============= =============
TOTAL LIABILITIES AND EQUITY 106,252,963 88,553,909
============= =============
HIGHPOWER INTERNATIONAL, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Stated in US Dollars)
Six months ended June 30,
2012 2011
------------ ------------
(Unaudited) (Unaudited)
$ $
Cash flows from operating activities
Net income 456,382 33,743
Adjustments to reconcile net loss to net cash
provided by operating activities :
Depreciation and amortization 999,544 883,231
Allowance for doubtful accounts 282,127 61,026
Reversal of allowance for inventory
obsolescence (70,966) (46,705)
Loss on disposal of property, plant and
equipment 56,703 6,636
Equity loss in an associate - 3,971
(Gain) loss on derivative instruments (32,956) 234,196
Deferred income tax 106,643 -
Share based payment 93,164 277,180
Changes in operating assets and liabilities :
Accounts receivable (4,971,615) (629,177)
Notes receivable (1,227,504) (550,505)
Prepayments 591,874 (3,889,931)
Other receivable 240,454 11,223
Inventories (2,836,232) 946,233
Accounts payable 5,680,116 (2,000,570)
Deferred revenue 652,157 -
Other payables and accrued liabilities 1,481,166 60,682
Income taxes payable 69,855 (1,072,317)
------------ ------------
Net cash flows provided by operating activities 1,570,912 (5,671,084)
------------ ------------
Cash flows from investing activities
Acquisition of plant and equipment (8,484,171) (2,930,714)
Acquisition of land use right (1,326,010) -
------------ ------------
Net cash flows used in investing activities (9,810,181) (2,930,714)
------------ ------------
Cash flows from financing activities
Proceeds from short-term bank loans 5,871,646 7,086,802
Repayment of short-term bank loans (1,196,676) (8,422,290)
Proceeds from long-term bank loans 7,914,523 -
Proceeds from notes payable 19,342,085 18,387,317
Repayment of notes payable (16,633,527) (10,225,663)
Proceeds from letter of credit - 5,508,490
Repayment of letter of credit (2,880,000) -
Proceeds from non-controlling interest 949,743 -
Decrease in restricted cash (5,387,117) (5,167,034)
------------ ------------
Net cash flows provided by financing activities 7,980,677 7,167,622
------------ ------------
Effect of foreign currency translation on cash
and cash equivalents 202,960 466,547
------------ ------------
Net decrease in cash and cash equivalents (55,632) (967,629)
Cash and cash equivalents - beginning of period 5,175,623 8,490,629
------------ ------------
Cash and cash equivalents - end of period 5,119,991 7,523,000
============ ============
Supplemental disclosures for cash flow
information :
Cash paid for :
Income taxes 239,767 386,314
============ ============
Interest expenses 590,399 386,313
============ ============
Non-cash transactions
Accounts payable for construction in progress 1,501,464 -
============ ============
Financial Profiles, Inc.
Tricia Ross
+1-916-939-7285
RENO, NV — (Marketwire) — 08/09/12 — Altair Nanotechnologies, Inc. (“Altair”) (NASDAQ: ALTI), today reported financial results for the second quarter ended June 30, 2012.
Altair reported revenues of $0.5 million for the second quarter, essentially flat compared to the same period in 2011. The gross loss was $620,000 reflecting an increase of $399,000 in inventory reserves. Operating expenses increased to $4.4 million primarily due to investments in research and development, compared to $3.8 million for the same quarter in 2011.
“The second quarter marked an important turning point for our company,” said Alexander Lee, Altair’s Chief Executive Officer. “We completed a series of agreements in China that will create a unique point of entry into the Chinese market; we took actions to consolidate our operations and reduce our cost structure; and, we focused on the completion and delivery of four turnkey energy storage system projects that will allow us to recognize revenue in the third and fourth quarters of this year.”
Recent Highlights and Subsequent Events
- On April 1, 2012, Altair board members Alexander Lee and Liming Zou (a/k/a Albert Zou) were respectively named as Chief Executive Officer and President of the Company.
- On April 19, 2012, Altair entered into economic development agreements with the Cities of Handan and Wu’an in the People’s Republic of China (“PRC”). Under these agreements, the two cities shall provide Altair Nanotechnologies (China) Co., Ltd. (“Altair China”) with a package of economic incentives, including a land use rights grant, which shall be used for Altair’s new manufacturing facilities.
- On May 15, 2012, Altair entered into a new supply agreement with Proterra to supply its nano lithium titanate (“nLTO”) battery modules for use in their rapid-charging EV buses. On June 19, 2012, Proterra released its first purchase order under the agreement for deliveries in the first quarter of 2013.
- On May 15, 2012, Altair completed the domestication of its Canadian corporate entity into the United States as a Delaware corporation. We believe that the change will reduce certain administrative costs and regulatory reporting complexity.
- On June 28, 2012, Altair received an order from the Hawaiian Natural Energy Institute (“HNEI”) for the development of advanced system control algorithms, which will be used to integrate wind and solar resources for the two Altair energy storage systems, which will be delivered to HNEI later this year.
- On July 6, 2012, Altair’s Board of Directors approved a plan to repatriate funds from its wholly-owned subsidiary, Altair China, to support and fund Altair’s ongoing U.S. operations.
- On July 9 2012, the Company shipped a 1.2 MW energy storage system to a European renewable energy customer, who will utilize the system in a wind farm application. We anticipate that the system will be installed and commissioned in the fourth quarter of 2012.
- On July 27, 2012, Altair completed a reduction in force in its Reno facility to further consolidate its U.S. operations and reduce the Company’s operating costs. Total U.S. headcount (regular and temporary employees) dropped from 95 on March 31, 2012 to 68 on August 2, 2012.
- On Aug. 1, 2012, Altair China received an initial down payment of $1.9 million (12 million Chinese RMB) from the city of Wu’an for its first EV bus order under its April 2012 economic development agreement with Wu’an. Altair China shall deliver 50 electric buses to Wu’an by the end of 2012.
- On Aug. 8, 2012, the company entered into a $1 million loan agreement to provide general working capital to fund the company’s operations.
The net loss for the second quarter was $4.9 million, or $0.07 per share, compared to a net loss of $3.0 million, or $0.10 per share, for the second quarter of 2011. The basic and diluted weighted average shares outstanding for the quarter were 69.5 million, compared to 30.4 million for the same period in 2011. The net loss increase was primarily due to the change in the market value of previously issued warrants, increases in research and development expense associated with our next generation LTO chemistry and LTO cells, as well as an increase in inventory reserves.
Altair’s cash and cash equivalents decreased by $11.2 million, from $46.5 million at Dec. 31, 2011 to $35.3 million at June 30, 2012. This is primarily due to the $10.8 million of cash used in operating activities during the first half of 2012. The bulk of the cash used in operations went to cover normal compensation and non-labor expenses, and the build-up of work in process inventory related to the fulfillment of customer sales backlog.
Second Quarter 2012 Conference Call
Altair will hold a conference call to discuss its second quarter 2012 results on Thursday, Aug. 9, 2012 at 11 a.m. Eastern Daylight Time (EDT). Shareholders and members of the investment community are invited to participate in the conference call. The dial-in number for both U.S. and international callers is +1 678-224-7719. Please dial in to the conference 5 minutes before the call is scheduled to begin. Ask the operator for the Altair Nanotechnologies call.
Post call, a phone-based audio replay will be available from 2 p.m. EDT, Thursday, Aug. 9, 2012 until Midnight EDT, Aug. 16, 2012. It can be accessed by dialing +1 404-537-3406 and entering the conference number 13762442. Additionally, the conference call and replay will be available online, and can be accessed by visiting Altair’s website, www.altairnano.com.
About Altair Nanotechnologies, Inc.
Headquartered in Reno, Nev. with manufacturing in Anderson, Ind., Altair is a leading provider of energy storage systems for clean, efficient power and energy management. Altair’s lithium-titanate based battery systems are among the highest performing and most scalable, with applications that include complete energy storage systems for use in providing frequency regulation and renewables integration for the electric grid, and battery modules and systems for transportation and industrial applications. For more information please visit Altair at www.altairnano.com.
Forward-Looking Statements
This report may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause Altair’s actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this report. These risks include the risk that the government entities with which the Company has contracted will be unable to fulfill their commitment due to legal limitations, including certain procedures required in connection with land use grants and major product purchases; that the government entities will not fulfill their commitments for political or other discretionary reasons, in which case the Company will have no, or limited, remedies; that the Company will run into regulatory, finance or other obstacles as it attempts to expand its operations into China; that the Company interest may be harmed by the absence from the Agreement of terms and conditions that are customary in contracts under U.S. law; that the Company will be unable to expand capacity (or contract with third parties) in order to meet the demand of product orders, particularly products like electric vehicles which the Company does not itself manufacture; that the Company will not experience expected costs savings as a result of its expansion into China and that the Company will not experience an increase in sales volume or, even if it experiences such an increase, that the Company will experience low (or negative) gross margins and not operate profitably in China. Other risks are identified in Altair’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. Such forward-looking statements speak only as of the date of this release. Altair expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in Altair expectations or results or any change in events.
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of United States Dollars, except shares)
(Unaudited)
June 30, December 31,
2012 2011
------------- -------------
ASSETS
Current assets
Cash and cash equivalents $ 35,275 $ 46,519
Restricted cash 293
Accounts receivable, net 576 333
Product inventories, net 9,860 7,220
Prepaid expenses and other current assets 2,022 2,240
------------- -------------
Total current assets 48,026 56,312
Property, plant and equipment, net 6,297 6,870
Patents, net 312 350
------------- -------------
Total Assets $ 54,635 $ 63,532
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $ 6,225 $ 5,870
Accrued salaries and benefits 928 1,132
Accrued warranty 383 354
Accrued liabilities 438 421
Deferred revenues 2,561 1,616
Warrant liabilities 475 654
Capital lease obligation 21 12
------------- -------------
Total current liabilities 11,031 10,059
Total Liabilities 11,031 10,059
------------- -------------
Stockholders' equity
Common stock, no par value, unlimited shares
authorized; 69,452,487 shares issued and
outstanding at June 30, 2012 and December
31, 2011 245,617 245,617
Additional paid in capital 12,276 12,279
Accumulated deficit (214,157) (204,423)
Accumulated other comprehensive loss (132)
------------- -------------
Total stockholders' equity 43,604 53,473
Total Liabilities and Stockholders'
Equity $ 54,635 $ 63,532
============= =============
ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of United States Dollars, except shares and per
share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Revenues
Product sales $ 376 $ 174 $ 573 $ 2,540
License fees 60 60 120 120
Commercial collaborations 18 78 18 80
Contracts and grants 164 287
----------- ----------- ----------- -----------
Total revenues 454 476 711 3,027
----------- ----------- ----------- -----------
Cost of goods sold
Product 613 314 1,019 2,925
Commercial collaborations 197 197
Contracts and grants 168 296
Warranty and inventory
reserves 461 12 475 58
----------- ----------- ----------- -----------
Total cost of goods sold 1,074 691 1,494 3,476
----------- ----------- ----------- -----------
Gross loss (620) (215) (783) (449)
Operating expenses
Research and development 1,789 1,284 3,622 3,340
Sales and marketing 925 913 1,845 1,964
General and administrative 1,425 1,204 3,174 3,376
Depreciation and
amortization 250 379 519 754
Loss on disposal of assets 16
----------- ----------- ----------- -----------
Total operating expenses 4,389 3,780 9,160 9,450
----------- ----------- ----------- -----------
Loss from operations (5,009) (3,995) (9,943) (9,899)
----------- ----------- ----------- -----------
Other (expense) income
Interest income (expense),
net 32 (52) 30 (59)
Change in market value of
warrants 102 1,022 179 1,022
----------- ----------- ----------- -----------
Total other income, net 134 970 209 963
----------- ----------- ----------- -----------
Net loss $ (4,875)$ (3,025)$ (9,734)$ (8,936)
=========== =========== =========== ===========
Loss per common share -
basic and diluted $ (0.07)$ (0.10)$ (0.14)$ (0.31)
----------- ----------- ----------- -----------
Weighted average shares -
basic and diluted 69,452,487 30,424,730 69,452,487 28,644,546
=========== =========== =========== ===========
For Additional Information:
Investors
Tony Luo
tluo@altairnano.com
— Maintaining a Strong Balance Sheet with Available Liquidity of $191.9 Million — Q-2 Adjusted EBITDA of $22.3 Million; Capital Expenditures of $23.0 Million — Reached Agreements to Ship Approximately 816,000 Tons of Thermal/Industrial and Metallurgical Coal in 2012 at an Average Sales Price of $114.83 Per Ton — Received 5 New Surface Mining Permits from State and Federal Regulatory Agencies — Confirming All Current 2012 Operating and Financial Guidance; Capital Expenditures Remain Under Review — Conference Call Slides Posted to Company Website
RICHMOND, Va., Aug. 9, 2012 /PRNewswire/ — James River Coal Company (NASDAQ: JRCC), today announced that it had net loss of $25.8 million or $0.74 per diluted share for the second quarter of 2012 and net loss of $41.4 million or $1.19 per diluted share for the six months ended June 30, 2012. The 2012 results are compared to net income of $0.8 million or $0.02 per diluted share for the second quarter of 2011 and net loss of $6.8 million or $0.22 per diluted share for the six months ended June 30, 2011.
Peter T. Socha, Chairman and Chief Executive Officer commented: “We are both pleased and cautious this quarter. In the operations area, we are very pleased to report that we have received five significant permits for our surface mining operations. Our operations team has put a tremendous amount of time and effort into obtaining these permits. They showed flexibility and creativity in working with state and federal regulatory authorities in finding solutions that would meet the needs of all parties. Our operations team has also continued to demonstrate their ability to quickly adapt to changing market conditions. Both the met and the thermal coal markets are in a state of transition. The met market has softened recently due to global macroeconomic concerns and a slight oversupply situation. We are cautious about the met market in the short term, but continue to be very enthusiastic about the demand for these coals going forward. The construction of global infrastructure is continuing. The thermal market is just beginning to show signs of recovery. We believe that this is due to production cutbacks throughout the industry as well as improved demand for both coal and natural gas due to warmer than normal temperatures. Our sales and marketing team has done a great job of shipping coal under existing contracts and finding pockets of opportunity in difficult markets. We continue to be pleased with our balanced approach to operating assets, customer markets, and financial stability.”
FINANCIAL RESULTS
The following tables show selected operating results for the quarter and six months ended June 30, 2012 compared to the quarter and six months ended June 30, 2011 (in 000’s except per ton amounts).
|
Total Results
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company and contractor production (tons)
|
2,539
|
|
|
|
2,640
|
|
|
|
5,342
|
|
|
|
4,762
|
|
|
|
Coal purchased from other sources (tons)
|
434
|
|
|
|
566
|
|
|
|
797
|
|
|
|
612
|
|
|
|
Total coal available to ship (tons)
|
2,973
|
|
|
|
3,206
|
|
|
|
6,139
|
|
|
|
5,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Coal shipments (tons)
|
2,910
|
|
|
|
3,261
|
|
|
|
5,961
|
|
|
|
5,334
|
|
|
|
Coal sales revenue
|
$ 259,628
|
|
89.22
|
|
$ 328,182
|
|
100.64
|
|
$ 539,391
|
|
90.49
|
|
$ 492,037
|
|
92.25
|
|
Freight and handling revenue
|
17,730
|
|
6.09
|
|
23,855
|
|
7.32
|
|
39,952
|
|
6.70
|
|
24,582
|
|
4.61
|
|
Cost of coal sold
|
224,314
|
|
77.08
|
|
264,108
|
|
80.99
|
|
461,203
|
|
77.37
|
|
396,927
|
|
74.41
|
|
Freight and handling costs
|
17,730
|
|
6.09
|
|
23,855
|
|
7.32
|
|
39,952
|
|
6.70
|
|
24,582
|
|
4.61
|
|
Depreciation, depletion, & amortization
|
32,514
|
|
11.17
|
|
28,210
|
|
8.65
|
|
62,634
|
|
10.51
|
|
44,245
|
|
8.29
|
|
Gross profit
|
2,800
|
|
0.96
|
|
35,864
|
|
11.00
|
|
15,554
|
|
2.61
|
|
50,865
|
|
9.54
|
|
Selling, general & administrative
|
15,266
|
|
5.25
|
|
14,811
|
|
4.54
|
|
30,832
|
|
5.17
|
|
24,181
|
|
4.53
|
|
Acquisition costs
|
–
|
|
|
|
3,859
|
|
|
|
–
|
|
|
|
8,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA plus acquisition costs (1)
|
$ 22,345
|
|
7.68
|
|
$ 54,449
|
|
16.70
|
|
$ 52,082
|
|
8.74
|
|
$ 78,151
|
|
14.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Adjusted EBITDA plus acquisition costs is defined under “Reconciliation of Non-GAAP Measures” in this release.
|
|
Adjusted EBITDA is used to determine compliance with financial covenants in our revolving credit facility.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Results
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2012
|
|
2011
|
|
2012
|
2011
|
|
CAPP
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company and contractor production (tons)
|
1,932
|
|
|
|
2,023
|
|
|
|
4,177
|
|
|
|
3,478
|
|
|
|
Coal purchased from other sources (tons)
|
434
|
|
|
|
566
|
|
|
|
797
|
|
|
|
612
|
|
|
|
Total coal available to ship (tons)
|
2,366
|
|
|
|
2,589
|
|
|
|
4,974
|
|
|
|
4,090
|
|
|
|
Coal shipments (tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steam (tons)
|
1,412
|
|
|
|
1,893
|
|
|
|
3,176
|
|
|
|
3,274
|
|
|
|
Metallurgical (tons)
|
897
|
|
|
|
727
|
|
|
|
1,625
|
|
|
|
761
|
|
|
|
Total Shipments (tons)
|
2,309
|
|
|
|
2,620
|
|
|
|
4,801
|
|
|
|
4,035
|
|
|
|
Coal sales revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steam
|
$ 117,229
|
|
83.02
|
|
$ 169,977
|
|
89.79
|
|
$ 269,095
|
|
84.73
|
|
$ 303,417
|
|
92.67
|
|
Metallurgical
|
115,581
|
|
128.85
|
|
130,499
|
|
179.50
|
|
218,755
|
|
134.62
|
|
134,644
|
|
176.93
|
|
Total coal sales revenue
|
232,810
|
|
100.83
|
|
300,476
|
|
114.69
|
|
487,850
|
|
101.61
|
|
438,061
|
|
108.57
|
|
Freight and handling revenue
|
17,426
|
|
7.55
|
|
23,316
|
|
8.90
|
|
38,470
|
|
8.01
|
|
23,316
|
|
5.78
|
|
Cost of coal sold
|
$ 202,476
|
|
87.69
|
|
$ 240,794
|
|
91.91
|
|
$ 416,305
|
|
86.71
|
|
$ 349,493
|
|
86.62
|
|
Freight and handling costs
|
17,426
|
|
7.55
|
|
23,316
|
|
8.90
|
|
38,470
|
|
8.01
|
|
23,316
|
|
5.78
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
|
|
2012
|
2011
|
|
2012
|
2011
|
|
Midwest
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
Total
|
|
Per Ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company and contractor production (tons)
|
607
|
|
|
|
617
|
|
|
|
1,165
|
|
|
|
1,284
|
|
|
|
Coal purchased from other sources (tons)
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
–
|
|
|
|
Total coal available to ship (tons)
|
607
|
|
|
|
617
|
|
|
|
1,165
|
|
|
|
1,284
|
|
|
|
Coal shipments (tons)
|
601
|
|
|
|
641
|
|
|
|
1,160
|
|
|
|
1,299
|
|
|
|
Coal sales revenue
|
$ 26,818
|
|
44.62
|
|
$ 27,706
|
|
43.22
|
|
$ 51,541
|
|
44.43
|
|
$ 53,976
|
|
41.55
|
|
Freight and handling revenue
|
304
|
|
0.51
|
|
539
|
|
0.84
|
|
1,482
|
|
1.28
|
|
1,266
|
|
0.97
|
|
Cost of coal sold
|
$ 21,838
|
|
36.34
|
|
$ 23,314
|
|
36.37
|
|
$ 44,898
|
|
38.71
|
|
$ 47,434
|
|
36.52
|
|
Freight and handling costs
|
304
|
|
0.51
|
|
539
|
|
0.84
|
|
1,482
|
|
1.28
|
|
1,266
|
|
0.97
|
PERMITS
C.K. Lane, Senior Vice President and Chief Operating Officer commented: “James River Coal is continuing to use innovative approaches to permit design, along with working cooperatively with the Environmental Protection Agency (EPA), the Corp. of Engineer’s (COE) and State agencies to adapt to the realities of today’s permitting environment. As a result we are pleased to announce that we have received 5 surface mining permits that will allow us to extend existing operations for several years.” Below is a recap of the five permits:
- The Freelandville COE 404 permit allows the mining of approximately 4.2 million tons of surface coal currently under lease at Triad’s Freelandville mine. There are additional leases that could be acquired to add on additional tonnage.
- The Rough Creek Surface Mining Control and Reclamation Act (SMCRA) permit which will allow Triad to surface mine Indiana No. 5 reserves at our Log Creek Complex that were originally slated to be mined by underground methods. In addition to the increased extraction of the Indiana No. 5 coal, additional reserves in the Indiana No. 6 and Indiana No. 5B will also be available. Total reserves associated with this permit are approximately 5.8 million tons.
- The Stacy Branch COE 404 permit has been received. This is one of the few hollow fill permits issued in the Central Appalachian region in the last five years. This will open up approximately 3.4 million tons of high quality coal.
- The Kentucky Department of Natural Resources permit for the Wolfpen mine has been received. This will extend the life of our lowest cost surface operation, Frasure Branch. The Wolfpen permit gives access to 2.9 million tons of high quality low sulfur coal.
- The Canebrake permit has been approved by the EPA and is awaiting minor revisions by the West Virginia Department of Environmental Protection to accommodate a change in mine plans that is better suited for today’s market. This permit opens up approximately 1.9 million tons of low cost metallurgical coal.
LIQUIDITY AND CASH FLOW
As of June 30, 2012, the Company had available liquidity of $191.9 million calculated as follows (in millions):
|
Unrestricted Cash
|
$
|
164.8
|
|
Availability under the Revolver
|
|
86.5
|
|
Letters of Credit Issued under the Revolver
|
|
(59.4)
|
|
|
|
|
Available Liquidity
|
$
|
191.9
|
|
|
|
|
Restricted Cash
|
$
|
29.6
|
Availability under the $100 million Revolver was lower at June 30, 2012 than at March 31, 2012 due to minor disruptions in late June CAPP shipments. The disruptions were caused by the timing of the annual miners’ vacation period and annual rail maintenance. Capital expenditures for the second quarter were $23.0 million and $45.9 million for the six months ended June 30, 2012.
SALES POSITION AND MARKET COMMENTS
As of August 8, 2012, we had the following agreements to ship coal at a fixed and known price (in 000’s except per ton amounts):
|
2012 Priced
|
|
As of May 2, 2012
|
As of August 8, 2012
|
Change
|
|
Tons
|
Avg Price
Per Ton
|
Tons
|
Avg Price
Per Ton
|
Tons
|
Avg Price
Per Ton
|
|
CAPP (1)
|
8,618
|
$ 94.83
|
9,434
|
$ 96.56
|
816
|
$ 114.83
|
|
Midwest (3)
|
2,776
|
$ 44.16
|
2,776
|
$ 44.16
|
–
|
$ –
|
|
|
|
|
|
|
|
|
2013 Priced
|
|
As of May 2, 2012
|
As of August 8, 2012
|
Change
|
|
Tons
|
Avg Price
Per Ton
|
Tons
|
Avg Price
Per Ton
|
Tons
|
Avg Price
Per Ton
|
|
CAPP (2)
|
1,337
|
$ 80.45
|
1,337
|
$ 79.32
|
–
|
$ –
|
|
Midwest (3)
|
2,140
|
$ 45.35
|
2,140
|
$ 45.35
|
–
|
$ –
|
|
|
|
|
|
|
|
|
2014 Priced
|
|
As of May 2, 2012
|
As of August 8, 2012
|
Change
|
|
Tons
|
Avg Price
Per Ton
|
Tons
|
Avg Price
Per Ton
|
Tons
|
Avg Price
Per Ton
|
|
CAPP
|
300
|
$ 75.75
|
300
|
$ 75.75
|
–
|
$ –
|
|
Midwest (3)
|
700
|
$ 49.00
|
700
|
$ 49.00
|
–
|
$ –
|
|
|
|
|
|
|
|
|
(1) Priced tons in CAPP in 2012 do not include approximately 300,000 tons of met coal that have been sold but not yet priced.
|
|
(2) Priced tons in CAPP in 2013 do not include approximately 900,000 tons of met coal that have been sold but not yet priced.
|
|
(3) The prices for the Midwest are minimum base price amounts adjusted for projected fuel escalators.
|
2012 GUIDANCE
We are reaffirming 2012 guidance with the exception of Capital Expenditure guidance which was withdrawn on May 3, 2012. The Company is in the process of assessing its capital needs for the remainder of the year.
CONFERENCE CALL, WEBCAST AND REPLAY: The Company will hold a conference call with management to discuss the second quarter earnings August 9, 2012 at 11:00 a.m. Eastern Time. The conference call can be accessed by dialing 877-340-2553, or through the James River Coal Company website at http://www.jamesrivercoal.com. International callers, please dial 678-224-7860. A replay of the conference call will be available on the Company’s website and also by telephone, at 855-859-2056 for domestic callers. International callers, please dial 404-537-3406: pass code 95471315.
James River Coal Company is one of the leading coal producers in Central Appalachia and the Illinois Basin. The company sells metallurgical, bituminous steam and industrial-grade coal to electric utility companies and industrial customers both domestically and internationally. The Company’s operations are managed through eight operating subsidiaries located throughout eastern Kentucky, southern West Virginia and southern Indiana. Additional information about James River Coal can be found at its web site www.jamesrivercoal.com
FORWARD-LOOKING STATEMENTS: Certain statements in this press release and other written or oral statements made by or on behalf of us are “forward-looking statements” within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. Forward looking statements include, without limitation, statements regarding future sales and contracting activity, projected fuel escalators and all guidance figures. These forward-looking statements are subject to a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, the following: our cash flows, results of operation or financial condition; the consummation of acquisition, disposition or financing transactions and the effect thereof on our business; our ability to successfully integrate International Resource Partners LP and its related entities (IRP); governmental policies, regulatory actions and court decisions affecting the coal industry or our customers’ coal usage; legal and administrative proceedings, settlements, investigations and claims; our ability to obtain and renew permits necessary for our existing and planned operation in a timely manner; environmental concerns related to coal mining and combustion and the cost and perceived benefits of alternative sources of energy; inherent risks of coal mining beyond our control, including weather and geologic conditions or catastrophic weather-related damage; our production capabilities; availability of transportation; our ability to timely obtain necessary supplies and equipment; market demand for coal, electricity and steel; competition; our relationships with, and other conditions affecting, our customers; employee workforce factors; our assumptions concerning economically recoverable coal reserve estimates; future economic or capital market conditions; our plans and objectives for future operations and expansion or consolidation; and the other risks detailed in our reports filed with the Securities and Exchange Commission (SEC). Management believes that these forward-looking statements are reasonable; however, you should not place undue reliance on such statements. These statements are based on current expectations and speak only as of the date of such statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of future events, new information or otherwise.
|
JAMES RIVER COAL COMPANY
AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2012
|
|
December 31, 2011
|
|
Assets
|
|
(unaudited)
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
$
|
164,835
|
|
199,711
|
|
Trade receivables
|
|
99,870
|
|
107,557
|
|
Inventories:
|
|
|
|
|
|
|
Coal
|
|
59,224
|
|
52,717
|
|
|
Materials and supplies
|
|
18,377
|
|
17,800
|
|
|
|
|
|
Total inventories
|
|
77,601
|
|
70,517
|
|
Prepaid royalties
|
|
8,809
|
|
8,465
|
|
Other current assets
|
|
9,387
|
|
11,461
|
|
|
|
|
|
Total current assets
|
|
360,502
|
|
397,711
|
|
Property, plant, and equipment, net
|
|
889,978
|
|
909,294
|
|
Goodwill
|
|
26,492
|
|
26,492
|
|
Restricted cash and short term investments
|
|
29,579
|
|
29,510
|
|
Other assets
|
|
35,790
|
|
41,575
|
|
|
|
|
|
Total assets
|
$
|
1,342,341
|
|
1,404,582
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
$
|
77,533
|
|
110,557
|
|
Accrued salaries, wages, and employee benefits
|
|
13,859
|
|
12,996
|
|
Workers’ compensation benefits
|
|
9,200
|
|
9,200
|
|
Black lung benefits
|
|
2,512
|
|
2,512
|
|
Accrued taxes
|
|
5,680
|
|
7,563
|
|
Other current liabilities
|
|
23,308
|
|
27,861
|
|
|
|
|
|
Total current liabilities
|
|
132,092
|
|
170,689
|
|
Long-term debt, less current maturities
|
|
589,519
|
|
582,193
|
|
Other liabilities:
|
|
|
|
|
|
Noncurrent portion of workers’ compensation benefits
|
|
63,100
|
|
60,721
|
|
Noncurrent portion of black lung benefits
|
|
57,894
|
|
56,152
|
|
Pension obligations
|
|
27,146
|
|
29,121
|
|
Asset retirement obligations
|
|
99,211
|
|
94,654
|
|
Other
|
|
13,287
|
|
14,390
|
|
|
|
|
|
Total other liabilities
|
|
260,638
|
|
255,038
|
|
|
|
|
|
Total liabilities
|
|
982,249
|
|
1,007,920
|
|
Commitments and contingencies
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
Preferred stock, $1.00 par value. Authorized 10,000,000 shares
|
|
–
|
|
–
|
|
Common stock, $.01 par value. Authorized 100,000,000 shares; issued and outstanding 35,888,611 and 35,671,953 shares as of June 30, 2012 and December 31, 2011
|
|
359
|
|
357
|
|
Paid-in-capital
|
|
543,769
|
|
541,362
|
|
Accumulated deficit
|
|
(139,104)
|
|
(97,682)
|
|
Accumulated other comprehensive loss
|
|
(44,932)
|
|
(47,375)
|
|
|
|
|
|
Total shareholders’ equity
|
|
360,092
|
|
396,662
|
|
|
|
|
|
|
Total liabilities and shareholders’ equity
|
$
|
1,342,341
|
|
1,404,582
|
|
JAMES RIVER COAL COMPANY
AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
June 30, 2012
|
|
June 30, 2011
|
|
June 30, 2012
|
|
June 30, 2011
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
Coal sales revenue
|
$
|
259,628
|
|
328,182
|
|
539,391
|
|
492,037
|
|
Freight and handling revenue
|
|
17,730
|
|
23,855
|
|
39,952
|
|
24,582
|
|
|
|
Total revenue
|
|
277,358
|
|
352,037
|
|
579,343
|
|
516,619
|
|
Cost of sales:
|
|
|
|
|
|
|
|
|
|
Cost of coal sold
|
|
224,314
|
|
264,108
|
|
461,203
|
|
396,927
|
|
Freight and handling costs
|
|
17,730
|
|
23,855
|
|
39,952
|
|
24,582
|
|
Depreciation, depletion and amortization
|
|
32,514
|
|
28,210
|
|
62,634
|
|
44,245
|
|
|
|
Total cost of sales
|
|
274,558
|
|
316,173
|
|
563,789
|
|
465,754
|
|
|
|
Gross profit
|
|
2,800
|
|
35,864
|
|
15,554
|
|
50,865
|
|
Selling, general and administrative expenses
|
|
15,266
|
|
14,811
|
|
30,832
|
|
24,181
|
|
Acquisition costs
|
|
–
|
|
3,859
|
|
–
|
|
8,504
|
|
|
|
Total operating income (loss)
|
|
(12,466)
|
|
17,194
|
|
(15,278)
|
|
18,180
|
|
Interest expense
|
|
13,527
|
|
15,607
|
|
26,912
|
|
23,458
|
|
Interest income
|
|
(171)
|
|
(128)
|
|
(385)
|
|
(183)
|
|
Charges associated with repayment of debt
|
|
–
|
|
740
|
|
–
|
|
740
|
|
Miscellaneous income, net
|
|
(90)
|
|
(181)
|
|
(433)
|
|
(302)
|
|
|
|
Total other expense, net
|
|
13,266
|
|
16,038
|
|
26,094
|
|
23,713
|
|
|
|
Net income (loss) before income taxes
|
|
(25,732)
|
|
1,156
|
|
(41,372)
|
|
(5,533)
|
|
Income tax expense
|
|
31
|
|
367
|
|
50
|
|
1,282
|
|
Net income (loss)
|
$
|
(25,763)
|
|
789
|
|
(41,422)
|
|
(6,815)
|
|
Earnings (loss) per common share
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per common share
|
$
|
(0.74)
|
|
0.02
|
|
(1.19)
|
|
(0.22)
|
|
Diluted earnings (loss) per common share
|
$
|
(0.74)
|
|
0.02
|
|
(1.19)
|
|
(0.22)
|
|
JAMES RIVER COAL COMPANY AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
Six Months
|
|
Six Months
|
|
|
Ended
|
|
Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2012
|
|
2011
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net loss
|
$
|
(41,422)
|
|
(6,815)
|
|
Adjustments to reconcile net loss to net cash provided by operating activities
|
|
|
|
|
|
|
Depreciation, depletion, and amortization
|
|
62,634
|
|
44,245
|
|
|
Accretion of asset retirement obligations
|
|
2,617
|
|
1,975
|
|
|
Amortization of debt discount and issue costs
|
|
8,667
|
|
6,383
|
|
|
Stock-based compensation
|
|
2,696
|
|
2,648
|
|
|
Deferred income tax benefit
|
|
–
|
|
2,236
|
|
|
Gain on sale or disposal of property, plant and equipment
|
|
(122)
|
|
–
|
|
|
Write-off of deferred financing costs
|
|
–
|
|
740
|
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
Receivables
|
|
7,687
|
|
38,568
|
|
|
|
Inventories
|
|
(3,724)
|
|
(10,156)
|
|
|
|
Prepaid royalties and other current assets
|
|
1,730
|
|
(878)
|
|
|
|
Restricted cash
|
|
(69)
|
|
(6,010)
|
|
|
|
Other assets
|
|
4,417
|
|
(4,991)
|
|
|
|
Accounts payable
|
|
(33,024)
|
|
12,512
|
|
|
|
Accrued salaries, wages, and employee benefits
|
|
863
|
|
1,369
|
|
|
|
Accrued taxes
|
|
(2,170)
|
|
(21)
|
|
|
|
Other current liabilities
|
|
(4,691)
|
|
4,339
|
|
|
|
Workers’ compensation benefits
|
|
2,379
|
|
1,937
|
|
|
|
Black lung benefits
|
|
2,514
|
|
1,881
|
|
|
|
Pension obligations
|
|
(304)
|
|
(971)
|
|
|
|
Asset retirement obligations
|
|
(96)
|
|
(2,123)
|
|
|
|
Other liabilities
|
|
(157)
|
|
(70)
|
|
|
|
|
Net cash provided by operating activities
|
|
10,425
|
|
86,798
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Additions to property, plant, and equipment
|
|
(45,881)
|
|
(58,306)
|
|
Payment for acquisition, net of cash acquired
|
|
–
|
|
(515,962)
|
|
Proceeds from sale of property, plant and equipment
|
|
580
|
|
–
|
|
|
|
|
Net cash used in investing activities
|
|
(45,301)
|
|
(574,268)
|
|
Cash flows from financing activities:
|
|
|
|
|
|
Proceeds from issuance of long-term debt
|
|
–
|
|
505,000
|
|
Repayment of long-term debt
|
|
–
|
|
(150,000)
|
|
Net proceeds from issuance of common stock
|
|
–
|
|
170,545
|
|
Debt issuance costs
|
|
–
|
|
(13,768)
|
|
|
|
|
Net cash provided by financing activities
|
|
–
|
|
511,777
|
|
|
|
|
Increase (decrease) in cash
|
|
(34,876)
|
|
24,307
|
|
Cash and cash equivalents at beginning of period
|
|
199,711
|
|
180,376
|
|
Cash and cash equivalents at end of period
|
$
|
164,835
|
|
204,683
|
JAMES RIVER COAL COMPANY
AND SUBSIDIARIES
Reconciliation of Non GAAP Measures
(in thousands)
(unaudited)
EBITDA is used by management to measure operating performance. We define EBITDA as net income or loss plus interest expense (net), income tax expense (benefit) and depreciation, depletion and amortization (EBITDA), to better measure our operating performance. We regularly use EBITDA to evaluate our performance as compared to other companies in our industry that have different financing and capital structures and/or tax rates. In addition, we use EBITDA in evaluating acquisition targets.
Adjusted EBITDA is defined as EBITDA as further adjusted for certain cash and non-cash charges as specified in our revolving credit facility and is used in several of the covenants in that facility. Adjusted EBITDA plus acquisition costs further adjusts Adjusted EBITDA to add back certain non-recurring costs incurred in connection with the IRP acquisition that may not reflect the trend of future results. We believe that Adjusted EBITDA plus acquisition cost presents a useful measure of our ability to service and incur debt on an ongoing basis.
EBITDA, Adjusted EBITDA, Adjusted EBITDA plus acquisition costs are not recognized terms under GAAP and are not an alternative to net income, operating income or any other performance measures derived in accordance with GAAP or an alternative to cash flow from operating activities as a measure of operating liquidity. Because not all companies use identical calculations, this presentation of EBITDA, Adjusted EBITDA, Adjusted EBITDA plus acquisition costs may not be comparable to other similarly titled measures of other companies. Additionally, EBITDA, Adjusted EBITDA, Adjusted EBITDA plus acquisition costs are not intended to be a measure of free cash flow for management’s discretionary use, as they do not reflect certain cash requirements such as tax payments, interest payments and other contractual obligations.
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
June 30
|
|
June 30
|
|
June 30
|
|
June 30
|
|
|
|
|
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
(25,763)
|
|
789
|
|
(41,422)
|
|
(6,815)
|
|
Income tax expense
|
|
31
|
|
367
|
|
50
|
|
1,282
|
|
Interest expense
|
|
13,527
|
|
15,607
|
|
26,912
|
|
23,458
|
|
Interest income
|
|
(171)
|
|
(128)
|
|
(385)
|
|
(183)
|
|
Depreciation, depletion, and amortization
|
|
32,514
|
|
28,210
|
|
62,634
|
|
44,245
|
|
EBITDA (before adjustments)
|
$
|
20,138
|
|
44,845
|
|
47,789
|
|
61,987
|
|
Other adjustments specified
|
|
|
|
|
|
|
|
|
|
in our current debt agreement
|
|
|
|
|
|
|
|
|
|
Direct acquisition costs
|
|
–
|
|
3,859
|
|
–
|
|
8,504
|
|
Charges associated with repayment of debt
|
–
|
|
740
|
|
–
|
|
740
|
|
Other
|
|
2,207
|
|
2,256
|
|
4,293
|
|
4,171
|
|
Adjusted EBITDA
|
$
|
22,345
|
|
51,700
|
|
52,082
|
|
75,402
|
|
Write-up of IRP inventory
|
|
–
|
|
2,749
|
|
|
|
2,749
|
|
Adjusted EBITDA plus acquisition costs
|
$
|
22,345
|
|
54,449
|
|
52,082
|
|
78,151
|
CONTACT:
James River Coal Company
Elizabeth M. Cook
Director of Investor Relations
(804) 780-3000
-Sales, Gross Profit Margins, Pretax Income Show Marked Improvement-
WEST MELBOURNE, Fla., Aug. 9, 2012 /PRNewswire/ — RELM Wireless Corporation (NYSE MKT: RWC) today announced its financial and operating results for the quarter and six months ended June 30, 2012.
For the quarter ended June 30, 2012, sales totaled approximately $9.3 million, compared with approximately $4.7 million for the second quarter last year. Pretax income for the quarter ended June 30, 2012 was approximately $2.0 million, compared with a pretax loss of approximately $855,000 for the second quarter last year. The Company recognized income tax expense of approximately $765,000 for the second quarter 2012, compared with no income tax expense or benefit for the same quarter last year. The second quarter’s income tax expense was largely non-cash due to the Company’s deferred tax assets derived primarily from its net operating loss carryforwards. Net income for the quarter ended June 30, 2012 was approximately $1.2 million, or $0.09 per diluted share, compared with a net loss of approximately $855,000, or $0.06 per diluted share, for the same quarter last year.
Gross profit margin for the second quarter 2012 was 49.7% of sales, versus 35.5% of sales for the same quarter last year. Selling, general and administrative expenses totaled approximately $2.6 million (28.1% of sales) for the second quarter 2012, compared with $2.5 million (53.2% of sales) for the second quarter last year.
The Company had approximately $20.7 million in working capital as of June 30, 2012, of which $10.0 million was comprised of cash and trade receivables. This compares with working capital of $19.5 million as of December 31, 2011, of which $6.8 million was comprised of cash and trade receivables. The Company had no balance outstanding under its revolving credit facility at June 30, 2012.
RELM President and Chief Executive Officer David Storey commented, “The second quarter 2012 was our best quarter in three years. It represented a sharp rebound from the preceding quarter and the same quarter last year. The improvement in our business was broad-based, including sales growth from new KNG products and new customers, combined with resurgent demand for legacy products primarily from longstanding federal customers. Sales for the quarter included noteworthy wins in the international arena as well as in the state and local government market. Higher overall volumes and a sales mix that was heavily weighted toward P25 digital products yielded strong gross profit margins approaching 50%; a significant improvement from recent quarters. Meanwhile, we maintained a controlled approach with our SG&A spending. The convergence of all these factors resulted in profits for the quarter and six month periods, and positive cash flow.”
Mr. Storey continued, “This quarter demonstrates the kind of financial performance that can be generated when we successfully increase sales revenue. While pleased with our progress in the second quarter, we realize the importance of consistently delivering and improving upon this kind of performance. Our team is committed to making that objective a reality in coming quarters.”
For the six months ended June 30, 2012, sales totaled approximately $13.7 million compared with approximately $11.4 million for the same period last year. Pretax income for the six months ended June 30, 2012 was approximately $1.3 million compared with a pretax loss of approximately $1.5 million for the same period last year. For the six months ended June 30, 2012 the Company recognized income tax expense of approximately $488,000, compared with no income tax expense or benefit for the same period last year. Income tax expense for the six month period was largely non-cash due to the Company’s deferred tax assets derived primarily from its net operating loss carryforwards. Net income for the six months ended June 30, 2012 totaled approximately $845,000, or $0.06 per diluted share, compared with a net loss of approximately $1.5 million, or $0.11 per diluted share, for the same period last year.
Gross profit margins for the six months ended June 30, 2012 were 46.0% of sales, versus 37.4% of sales for the same period last year. Selling, general and administrative expenses for the six months ended June 30, 2012 totaled approximately $5.0 million compared with approximately $5.7 million for the same period last year.
Conference Call and Webcast
The Company will host a conference call and webcast for investors at 9:00 a.m. Eastern Time, Thursday, August 9, 2012. Shareholders and other interested parties may participate in the conference call by dialing 877-317-6789 (international/local participants dial 412-317-6789) and asking to be connected to the “RELM Wireless Corporation Conference Call” a few minutes before 9:00 a.m. Eastern Time on August 9, 2012. The call will also be webcast at http://www.relm.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet webcast. An online archive of the webcast will be available on the Company’s website for 30 days following the call at http://www.relm.com.
A replay of the conference call will be available one hour after the completion of the call until August 17, 2012, by dialing 877-344-7529 (international/local participants dial 412-317-0088) and entering the conference ID# 10016439.
About APCO Project 25 (P25)
APCO Project 25 (P25), which requires interoperability among compliant equipment regardless of the manufacturer, was established by the Association of Public-Safety Communications Officials and is approved by the U.S. Department of Homeland Security. The shift toward interoperability gained momentum as a result of significant communications failures in critical emergency situations. RELM was one of the first manufacturers to develop P25-compliant technology.
About RELM Wireless Corporation
As an American Manufacturer for more than 60 years, RELM Wireless Corporation has produced high‑specification two‑way communications equipment of unsurpassed reliability and value for use by public safety professionals and government agencies, as well as radios for use in a wide range of commercial and industrial applications. Advances include a broad new line of leading digital two‑way radios compliant with APCO Project 25 specifications. RELM’s products are manufactured and distributed worldwide under BK Radio and RELM brand names. The Company maintains its headquarters in West Melbourne, Florida and can be contacted through its web site at www.relm.com or directly at 1‑800‑821‑2900. The Company’s common stock trades on the NYSE MKT market under the symbol “RWC”.
This press release contains certain forward-looking statements that are made pursuant to the “Safe Harbor” provisions of the Private Securities Litigation Reform Act Of 1995. These forward-looking statements concern the Company’s operations, economic performance and financial condition and are based largely on the Company’s beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, the following: changes or advances in technology; the success of our LMR product line; competition in the land mobile radio industry; general economic and business conditions, including federal, state and local government budget deficits and spending limitations; the availability, terms and deployment of capital; reliance on contract manufacturers and suppliers; heavy reliance on sales to agencies of the U.S. government; our ability to utilize deferred tax assets; retention of executive officers and key personnel; our ability to manage our growth; government regulation; business with manufacturers located in other countries; our inventory and debt levels; protection of our intellectual property rights; acts of war or terrorism; and any infringement claims. Certain of these factors and risks, as well as other risks and uncertainties, are stated in more detail in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in the Company’s subsequent filings with the SEC. These forward-looking statements are made as of the date of this press release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
|
RELM WIRELESS CORPORATION
|
|
Condensed Consolidated Statements of Operations
|
|
(In Thousands, Except Per Share Amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|
(Unaudited)
|
(Unaudited)
|
|
6/30/2012
|
6/30/2011
|
6/30/2012
|
6/30/2011
|
|
|
|
|
|
|
Sales, net
|
$ 9,327
|
$ 4,671
|
$ 13,696
|
$ 11,385
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Cost of products
|
4,687
|
3,015
|
7,389
|
7,128
|
|
Selling, general and administrative expenses
|
2,624
|
2,484
|
4,964
|
5,732
|
|
Total expenses
|
7,311
|
5,499
|
12,353
|
12,860
|
|
|
|
|
|
|
Operating income (loss)
|
2,016
|
(828)
|
1,343
|
(1,475)
|
|
|
|
|
|
|
Other expense:
|
|
|
|
|
|
Net interest expense
|
(3)
|
(27)
|
(3)
|
(62)
|
|
Other expense
|
(2)
|
0
|
(7)
|
(6)
|
|
|
|
|
|
|
Income (loss) before income taxes
|
2,011
|
(855)
|
1,333
|
(1,543)
|
|
|
|
|
|
|
Income tax expense
|
(765)
|
0
|
(488)
|
0
|
|
|
|
|
|
|
Net income (loss)
|
$ 1,246
|
$ (855)
|
$ 845
|
$ (1,543)
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) per share – basic
|
$ 0.09
|
$ (0.06)
|
$ 0.06
|
$ (0.11)
|
|
Net earnings (loss) per share – diluted
|
$ 0.09
|
$ (0.06)
|
$ 0.06
|
$ (0.11)
|
|
|
|
|
|
|
Weighted average common shares outstanding, basic
|
13,544
|
13,509
|
13,539
|
13,509
|
|
Weighted average common shares outstanding, diluted
|
13,545
|
13,509
|
13,539
|
13,509
|
|
RELM WIRELESS CORPORATION
|
|
Condensed Consolidated Balance Sheets
|
|
(In Thousands, Except Share Data) (Unaudited)
|
|
|
|
|
|
|
June 30,
|
December 31,
|
|
|
2012
|
2011
|
|
|
|
|
|
ASSETS
|
|
|
|
Current assets:
|
|
|
|
Cash & cash equivalents
|
$ 4,402
|
$ 2,693
|
|
Trade accounts receivable, net
|
5,551
|
4,155
|
|
Inventories, net
|
11,255
|
12,148
|
|
Deferred tax assets, net
|
2,966
|
3,458
|
|
Prepaid expenses & other current assets
|
982
|
526
|
|
Total current assets
|
25,156
|
22,980
|
|
|
|
|
|
Property, plant and equipment, net
|
1,096
|
1,158
|
|
Deferred tax assets, net
|
4,712
|
4,712
|
|
Capitalized software, net
|
2,337
|
2,778
|
|
Other assets
|
201
|
219
|
|
|
|
|
|
Total assets
|
$ 33,502
|
$ 31,847
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$ 2,162
|
$ 1,756
|
|
Accrued compensation and related taxes
|
1,204
|
807
|
|
Accrued warranty expense
|
243
|
247
|
|
Accrued other expenses and other current liabilities
|
195
|
318
|
|
Note payable
|
53
|
–
|
|
Deferred revenue
|
558
|
385
|
|
Total current liabilities
|
4,415
|
3,513
|
|
|
|
|
|
Deferred revenue
|
133
|
265
|
|
Long-term debt
|
–
|
–
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
Preferred stock; $1.00 par value; 1,000,000 authorized
|
|
|
|
shares, none issued or outstanding.
|
–
|
–
|
|
Common stock; $0.60 par value; 20,000,000 authorized
|
|
|
|
shares; 13,545,482 and 13,519,323 issued and outstanding shares
|
|
|
|
at June 30, 2012 and December 31, 2011, respectively.
|
8,127
|
8,111
|
|
Additional paid-in capital
|
24,594
|
24,570
|
|
Accumulated deficit
|
(3,767)
|
(4,612)
|
|
Total stockholders’ equity
|
28,954
|
28,069
|
|
|
|
|
|
Total liabilities and stockholders’ equity
|
$ 33,502
|
$ 31,847
|
|
|
|
|
|
|
Jones Soda Co. (the Company) (NASDAQ: JSDA), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced results for the second quarter ended June 30, 2012. Revenue for the second quarter of 2012 increased 7.0% to $5.3 million compared to revenue of $4.9 million for the second quarter of 2011. The Company reported a net loss of $459,000, or $(0.01) per share, for the second quarter of 2012, compared to a net loss of $1.8 million, or $(0.06) per share, for the second quarter of 2011.
Jennifer Cue, Jones Soda’s Chief Executive Officer, commented, “The improvement in Jones’ financial performance demonstrates that the expense reduction initiatives started at the beginning of the year are taking hold. The Company’s operations are focused on a more disciplined approach to growing revenues, living within our means, and re-igniting the entrepreneurial spirit of the Company. Our entire team and our board of directors are committed to investing the Company’s resources in a way that will deliver sustainability through the combination of growth and judicious expense management.”
Chairman Mick Fleming added, “We are thrilled to have Jennifer Cue back at Jones. She has an impressive track record of operating and financial success at Jones as well as a true passion and understanding of our brand. Jennifer is highly motivated to lead the Company to its true potential.”
Second Quarter Review – Comparison of Quarters Ended June 30, 2012 and 2011
- Revenue increased 7.0% to $5.3 million, compared to $4.9 million last year.
- Gross margin increased to 30% of revenue, compared to 29% of revenue last year.
- Operating expenses decreased 37% to $2.0 million, compared to $3.2 million last year.
- Net loss improved to $459,000, or $(0.01) per share, for the second quarter of 2012, compared to a net loss of $1.8 million, or $(0.06) per share, last year.
Year-to-Date Review – Comparison of Six Month Periods Ended June 30, 2012 and 2011
- Revenue increased 1.3% to $9.1 million, compared to $9.0 million last year.
- Gross margin increased to 29% of revenue, compared to 27% of revenue last year.
- Operating expenses decreased 21% to $4.7 million, compared to $5.9 million last year.
- Net loss improved to $2.1 million, or $(0.06) per share, compared to a net loss of $3.5 million, or $(0.11) per share, last year.
Conference Call
The Company will discuss its results for the quarter ended June 30, 2012 on its scheduled conference call today, August 9, 2012 at 4:30 p.m., Eastern time (1:30 p.m., Pacific). This call will be webcast and can be accessed by visiting our website at www.jonessoda.com or www.jonessoda.com/company/jones-press/webcasts. Investors may also listen to the call via telephone by dialing (719) 457-2694 (confirmation code: 4046273). In addition, a telephone replay will be available by dialing (858) 384-5517 (confirmation code: 4046273) through August 16, 2012, at 11:59 p.m. Eastern Time.
About Jones Soda Co.
Headquartered in Seattle, Washington, Jones Soda Co.® markets and distributes premium beverages under the Jones® Soda and WhoopAss™ Energy Drink brands and sells through its distribution network, in markets primarily across North America. A leader in the premium soda category, Jones is known for its variety of flavors, highest quality ingredients, including pure cane sugar and innovative labeling technique that incorporates always-changing photos sent in from its consumers. Jones Soda is sold through traditional beverage retailers. For more information, visit www.jonessoda.com or www.myjones.com.
Forward-Looking Statements Disclosure
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 words such as “will,” “aims,” “anticipates,” “becoming,” “believes,” “continue,” “estimates,” “expects,” “future,” “intends,” “plans,” “predicts,” “projects,” “targets,” or “upcoming”. 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 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 or implied in the forward-looking statements. Factors that could affect Jones Soda’s actual results include, among others: its ability to successfully execute on its 2012 operating plan; its ability to generate sufficient cash flow from operations; its ability to streamline operations, reduce operating expenses, and reduce and slow its use of cash; its ability to successfully integrate management changes and reductions in operating expense and personnel; its ability to manage impacts if its common stock is delisted from The Nasdaq Capital Market; its ability to develop and introduce new products to satisfy customer preferences; its ability to market and distribute brands on a national basis; changes in consumer demand or market acceptance for its products; its use of the net proceeds from any financings to improve its financial condition; its ability to increase demand and points of distribution for its products or to successfully innovate new products and product extensions; its ability to establish, maintain and expand distribution arrangements with distributors, retailers or national retail accounts; its ability to maintain relationships with co-packers; its ability to maintain a consistent and cost-effective supply of raw materials; its ability to maintain brand image and product quality; its ability to attract, retain and motivate key personnel; its ability to protect its intellectual property; the impact of future litigation; and the impact of intense competition from other beverage suppliers. More information about factors that potentially could affect Jones Soda’s operations or financial results is included in Jones Soda’s most recent annual report on Form 10-K for the year ended December 31, 2011, filed with the Securities and Exchange Commission on March 30, 2012. 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, Jones Soda 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.
|
|
|
|
| JONES SODA CO.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
|
|
|
|
(In thousands, except share data) |
|
| Revenue |
|
|
|
|
$ |
5,257 |
|
|
|
$ |
4,914 |
|
|
|
$ |
9,119 |
|
|
|
$ |
9,001 |
|
|
| Cost of goods sold |
|
|
|
|
|
3,696 |
|
|
|
|
3,497 |
|
|
|
|
6,510 |
|
|
|
|
6,584 |
|
|
| Gross profit |
|
|
|
|
|
1,561 |
|
|
|
|
1,417 |
|
|
|
|
2,609 |
|
|
|
|
2,417 |
|
|
| Gross profit % |
|
|
|
|
|
29.7 |
% |
|
|
|
28.8 |
% |
|
|
|
28.6 |
% |
|
|
|
26.9 |
% |
|
| Licensing revenue |
|
|
|
|
|
6 |
|
|
|
|
7 |
|
|
|
|
11 |
|
|
|
|
12 |
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Promotion and selling |
|
|
|
|
|
920 |
|
|
|
|
1,873 |
|
|
|
|
2,277 |
|
|
|
|
3,153 |
|
|
| General and administrative |
|
|
|
|
|
1,078 |
|
|
|
|
1,313 |
|
|
|
|
2,410 |
|
|
|
|
2,793 |
|
|
|
|
|
|
|
|
1,998 |
|
|
|
|
3,186 |
|
|
|
|
4,687 |
|
|
|
|
5,946 |
|
|
| Loss from operations |
|
|
|
|
|
(431 |
) |
|
|
|
(1,762 |
) |
|
|
|
(2,067 |
) |
|
|
|
(3,517 |
) |
|
| Other (expense) income, net |
|
|
|
|
|
(5 |
) |
|
|
|
6 |
|
|
|
|
(16 |
) |
|
|
|
78 |
|
|
| Loss before income taxes |
|
|
|
|
|
(436 |
) |
|
|
|
(1,756 |
) |
|
|
|
(2,083 |
) |
|
|
|
(3,439 |
) |
|
| Income tax expense, net |
|
|
|
|
|
(23 |
) |
|
|
|
(64 |
) |
|
|
|
(48 |
) |
|
|
|
(51 |
) |
|
| Net loss |
|
|
|
|
$ |
(459 |
) |
|
|
$ |
(1,820 |
) |
|
|
$ |
(2,131 |
) |
|
|
$ |
(3,490 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share – basic and diluted |
|
|
|
|
$ |
(0.01 |
) |
|
|
$ |
(0.06 |
) |
|
|
$ |
(0.06 |
) |
|
|
$ |
(0.11 |
) |
|
| Weighted average basic and diluted common shares outstanding |
|
|
|
|
|
38,544,140 |
|
|
|
|
31,990,645 |
|
|
|
|
37,268,386 |
|
|
|
|
31,724,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| Case sale data (288-ounce equivalent) |
|
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
| Finished product cases |
|
|
|
|
|
376,200 |
|
|
|
|
358,300 |
|
|
|
|
672,200 |
|
|
|
|
660,300 |
|
|
|
|
|
|
| JONES SODA CO.
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2012 |
|
|
|
December 31, 2011 |
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
| Assets |
|
|
|
|
(In thousands) |
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
|
$ |
2,500 |
|
|
|
|
$ |
1,709 |
|
|
| Accounts receivable |
|
|
|
|
|
3,151 |
|
|
|
|
|
1,966 |
|
|
| Inventory |
|
|
|
|
|
2,258 |
|
|
|
|
|
2,386 |
|
|
| Prepaid expenses and other current assets |
|
|
|
|
|
203 |
|
|
|
|
|
204 |
|
|
| Total current assets |
|
|
|
|
|
8,112 |
|
|
|
|
|
6,265 |
|
|
| Fixed assets |
|
|
|
|
|
632 |
|
|
|
|
|
844 |
|
|
| Other assets |
|
|
|
|
|
526 |
|
|
|
|
|
548 |
|
|
| Total assets |
|
|
|
|
$ |
9,270 |
|
|
|
|
$ |
7,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
|
|
$ |
1,909 |
|
|
|
|
$ |
1,278 |
|
|
| Accrued expenses |
|
|
|
|
|
1,548 |
|
|
|
|
|
1,323 |
|
|
| Taxes payable |
|
|
|
|
|
25 |
|
|
|
|
|
64 |
|
|
| Other current liabilities |
|
|
|
|
|
51 |
|
|
|
|
|
48 |
|
|
| Total current liabilities |
|
|
|
|
|
3,533 |
|
|
|
|
|
2,713 |
|
|
| Long-term liabilities – other |
|
|
|
|
|
514 |
|
|
|
|
|
539 |
|
|
| Shareholders’ equity: |
|
|
|
|
|
|
|
|
|
|
| Common stock, no par value: |
|
|
|
|
|
|
|
|
|
|
| Authorized: 100,000,000 |
|
|
|
|
|
|
|
|
|
|
| Issued and outstanding: 38,550,889 and 32,100,882 shares, respectively |
|
|
|
|
|
52,904 |
|
|
|
|
|
50,090 |
|
|
| Additional paid-in capital |
|
|
|
|
|
7,252 |
|
|
|
|
|
7,116 |
|
|
| Accumulated other comprehensive income |
|
|
|
|
|
419 |
|
|
|
|
|
420 |
|
|
| Accumulated deficit |
|
|
|
|
|
(55,352 |
) |
|
|
|
|
(53,221 |
) |
|
| Total shareholders’ equity |
|
|
|
|
|
5,223 |
|
|
|
|
|
4,405 |
|
|
| Total liabilities and shareholders’ equity |
|
|
|
|
$ |
9,270 |
|
|
|
|
$ |
7,657 |
|
|
|
GREENWICH, CT — (Marketwire) — 08/08/12 — Presstek, Inc. (NASDAQ: PRST)
- Positive adjusted EBITDA of $0.8 Million
- Quarterly operating expenses down 21% from prior year quarter
- Two 75DI units installed in Q2
- Debt net of cash at its lowest level since December, 2010
Presstek, Inc. (NASDAQ: PRST), a leading supplier of digital offset printing solutions to the printing and communications industries, today reported financial and operating results for the second quarter ended June 30, 2012. The Company reported total revenue of $29.7 million compared to $31.4 million in the second quarter of 2011.
The Company generated positive adjusted EBITDA of $0.8 million for the quarter, an increase of $0.4 million from the prior year. The Company had an operating loss of $0.3 million in the second quarter of 2012 versus an operating loss of $1.2 million in the 2011 second quarter, an improvement of $0.9 million. Cost reduction actions undertaken in the latter half of 2011 contributed significantly to this improvement. During the second quarter of 2012, the Company incurred a net loss of $0.8 million, or $0.02 per share, compared to a net loss of $1.7 million, or $0.05 per share, in the second quarter of 2011. (See “Information Regarding Non-GAAP Measures”)
“While we continue to experience the effects of the difficult economic climate, especially in Europe, our quarterly results reflect continued improvement in EBITDA and a narrowing of our quarterly operating loss. While these results are in large part due to our cost management efforts, we believe that we are positioned for improving results once the overall economic environment improves,” said Stanley Freimuth, Presstek’s Chairman, President and CEO.
Second Quarter 2012 Financial Results
Total revenue in the second quarter was $29.7 million, a decrease of $1.7 million from the second quarter of 2011.
- Equipment revenue increased $0.2 million, to $6.4 million, compared with the same prior year period due primarily to an increase in the number of DI units sold, including the sale of two 75DI units.
- Consumables revenue totaled $17.6 million compared with $19.3 million for the same prior year period resulting primarily from unfavorable economic conditions in Europe as well as the continued gradual erosion of some of our legacy plate product lines.
- Service revenue decreased $0.2 million, to $5.7 million, compared to the prior year quarter due to lower contract revenues resulting from a decrease in active legacy equipment accounts.
Gross margin percent for the second quarter of 2012 was 28.7% compared to 31.7% in the second quarter of 2011. Lower margins were primarily the result of unfavorable consumables product mix and an increase in our per unit plate costs resulting from lower overall factory volume production.
Second quarter operating expenses, including the costs of the drupa trade show, declined $2.3 million, or 21%, to $8.8 million compared with the prior year period due primarily to lower expenses resulting from the cost reduction actions taken in the second half of 2011.
“The cost reduction actions that we undertook during the second half of 2011 have resulted in three consecutive quarters of improving operating results and adjusted EBITDA, and we continue to forecast positive adjusted EBITDA for the full year,” said Arnon Dror, Presstek’s Vice President, Chief Financial Officer and Treasurer. “In addition, debt net of cash, which improved from $8.8 million to $7.9 million on a sequential quarter basis, closed at its lowest level since the fourth quarter of 2010 resulting from a continued emphasis on managing working capital.” (See “Information Regarding Non-GAAP Measures”)
Information Regarding Non-GAAP Measures
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the Company provides non-GAAP financial measures, including operating expenses excluding special charges; adjusted EBITDA; debt net of cash; and other GAAP measures adjusted for certain charges, which the Company believes are useful to help investors better understand its past financial performance and prospects for the future. A full reconciliation of GAAP to non-GAAP measures is provided in the supplemental financial information provided with this press release.
Conference Call and Webcast Information
Management will discuss Presstek’s first quarter 2012 results in a conference call on Wednesday, August 8, 2012 at 10:30 a.m. Eastern Time. Conference call information is below:
CONFERENCE CALL ACCESS
Domestic Dial In: (866) 788-0544
International Dial In: (857) 350-1682
Passcode: 16904958
Investors can access the call in a “listen only” mode via the Internet at http://www.presstek.com
In addition, for those unable to participate at the time of the call, a rebroadcast will be available following the call from 12:30 PM Eastern Time on Wednesday, August 8, 2012 until 11:59 PM Eastern Time on Wednesday, August 15, 2012.
REBROADCAST ACCESS
Domestic Dial In: (888) 286-8010
International Dial In: (617) 801-6888
Passcode: 41211988
An archived webcast of this conference call also will be available on the “Investor Events Calendar” page of the company’s web site.
About Presstek:
Presstek, Inc. is a leading supplier of digital offset printing solutions to the printing and communications industries. Presstek’s DI® digital offset solutions bridge the gap between toner and conventional offset printing, enabling printers to cost effectively meet increasing customer demand for high quality, short run color printing with a fast turnaround time while providing improved profit margins. The Company’s CTP portfolio ranges from two-page to eight-page systems, many of which are fully automated. These systems support Presstek’s line of chemistry-free plates as well as Aeon, a no preheat thermal plate which offers run lengths up to one million impressions and PhD 830, a high resolution preheat, thermal CTP plate that offers run lengths of one million and more impressions. Presstek also offers a range of workflow solutions, pressroom supplies, and reliable service. Presstek is well positioned to support print environments of any size on a worldwide basis. Visit www.presstek.com or call +1.603.595.7000 for more information.
DI is a registered trademark of Presstek, Inc.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: 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 2012, the prospects for the success of the Company’s recently introduced 75DI® press and the Company’s marketing plans for the press, the ability of the Company to achieve positive adjusted EBITDA and enhanced profitability in the future, and the intention of the Company to file for a transfer of its stock listing to the NASDAQ Capital Market. 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, market acceptance of and demand for the Company’s products, revenue and adjusted EBITDA levels resulting from the Company’s sales activities, the ability of the Company to achieve sales and performance levels sufficient to achieve positive adjusted EBITDA, the Company’s dependence on its partners (both manufacturing and distribution), the Company’s ability to successfully transfer the listing of its Common Stock to the NASDAQ Capital Market, and other risks and uncertainties detailed in the Company’s 2011 Annual Report on Form 10-K and the Company’s other reports on file with the Securities and Exchange Commission. The words “looking forward,” “looking ahead,” “believe(s),” “should,” “may,” “expect(s),” “anticipate(s),” “project(s),” “likely,” “opportunity,” expressions of optimism concerning future events or results, 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.
PRESSTEK, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
Three months ended Six months ended
-------------------- --------------------
June 30, July 2, June 30, July 2,
2012 2011 2012 2011
--------- --------- --------- ---------
Revenue
Equipment $ 6,386 $ 6,230 $ 9,886 $ 11,348
Consumables 17,557 19,252 35,120 39,986
Service and parts 5,718 5,913 11,681 11,941
--------- --------- --------- ---------
Total revenue 29,661 31,395 56,687 63,275
--------- --------- --------- ---------
Cost of revenue
Equipment 6,081 6,269 10,294 11,833
Consumables 10,678 10,386 21,632 21,615
Service and parts 4,380 4,783 8,940 9,925
--------- --------- --------- ---------
Total cost of revenue 21,139 21,438 40,866 43,373
--------- --------- --------- ---------
Gross profit 8,522 9,957 15,821 19,902
--------- --------- --------- ---------
Operating expenses
Research and development 770 1,110 1,744 2,185
Sales, marketing and customer
support 4,343 5,609 8,285 10,873
General and administrative 3,380 4,135 6,207 8,452
Amortization of intangible
assets 289 210 535 411
Restructuring and other
charges - 48 - 363
--------- --------- --------- ---------
Total operating expenses 8,782 11,112 16,771 22,284
--------- --------- --------- ---------
Operating loss (260) (1,155) (950) (2,382)
Interest and other income
(expense), net (487) (360) (984) (675)
--------- --------- --------- ---------
Loss from continuing operations
before income taxes (747) (1,515) (1,934) (3,057)
Provision (benefit) for income
taxes 8 183 45 181
--------- --------- --------- ---------
Net loss $ (755) $ (1,698) $ (1,979) $ (3,238)
========= ========= ========= =========
Loss per share (basic and
diluted) $ (0.02) $ (0.05) $ (0.05) $ (0.09)
========= ========= ========= =========
PRESSTEK, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(Unaudited)
June 30, December 31,
2012 2011
----------- ------------
ASSETS
Current assets
Cash and cash equivalents $ 2,901 $ 2,539
Cash - restricted 516 512
Accounts receivable, net 14,987 15,904
Inventories 21,178 25,038
Other current assets 1,580 1,345
----------- ------------
Total current assets 41,162 45,338
Property, plant and equipment, net 17,363 18,543
Intangible assets, net 4,496 5,001
Other noncurrent assets 769 931
----------- ------------
Total assets $ 63,790 $ 69,813
=========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Line of credit $ 10,813 $ 13,757
Accounts payable 7,260 6,864
Accrued expenses 4,210 5,472
Deferred revenue 3,752 4,473
----------- ------------
Total current liabilities 26,035 30,566
Other long-term liabilities - 31
----------- ------------
Total liabilities 26,035 30,597
----------- ------------
Stockholders' equity
Preferred stock, $0.01 par value, 1,000,000
shares authorized, no shares issued - -
Common stock, $0.01 par value, 75,000,000
shares authorized, 37,395,228 outstanding at
June 30, 2012 and December 31, 2011,
respectively 374 374
Additional paid-in capital 125,400 124,992
Accumulated other comprehensive loss (3,275) (3,384)
Accumulated deficit (84,744) (82,766)
----------- ------------
Total stockholders' equity 37,755 39,216
----------- ------------
Total liabilities and stockholders' equity $ 63,790 $ 69,813
=========== ============
PRESSTEK, INC.
SUPPLEMENTAL FINANCIAL INFORMATION
$ thousands
(Unaudited)
Incr/(Decr) from
Q2 2011 Q1 2012 Q2 2012 Q2 2011 Q1 2012
------- ------- ------- ------- ----------
Operating Expenses excluding
Special Charges
Total Operating Expenses 11,112 7,990 8,782 (2,330) 792
less: Restructuring and
Other Charges 48 0 0 (48) 0
------- ------- ------- ------- ----------
Operating Expenses excluding
Special Charges (a) 11,064 7,990 8,782 (2,282) 792
------- ------- ------- ------- ----------
Adjusted EBITDA
Net income/(Loss) (1,698) (1,224) (755) 943 469
Add back:
Interest 281 363 296 15 (67)
Tax charge (benefit) 183 37 8 (175) (29)
Amortization 210 246 289 79 43
Depreciation 1,005 855 825 (180) (30)
Non cash portion of
equity comp 373 245 164 (209) (81)
Restructuring and
other charges 48 0 0 (48) 0
------- ------- ------- ------- ----------
Adjusted EBITDA (a) 402 522 827 424 305
------- ------- ------- ------- ----------
Debt net of cash
Line of credit 12,897 11,283 10,813 (2,084) (470)
Cash (excludes restricted
cash) 3,720 2,512 2,901 (819) 389
------- ------- ------- ------- ----------
Debt net of cash (a) 9,177 8,771 7,912 (1,265) (859)
------- ------- ------- ------- ----------
a. Operating expenses excluding special charges, Adjusted EBITDA [earnings before interest, taxes, depreciation, amortization and restructuring and other non-recurring charges (credits)], and Debt net of cash 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. Presstek’s management believes that Adjusted EBITDA and Operating expenses excluding special charges provide meaningful supplemental information regarding Presstek’s current financial performance and prospects for the future. Presstek’s management believes that Debt net of cash provides meaningful information on Presstek’s debt relative to its cash position.
Presstek believes that both management and investors benefit from referring to these non-GAAP measures in assessing the performance of Presstek’s ongoing operations and liquidity, and when planning and forecasting future periods. These non-GAAP measures also facilitate management’s internal comparisons to Presstek’s historical operating results and liquidity. Our presentations of these measures, however, may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included in the tables above.
CSP Inc. (NASDAQ: CSPI), a provider of IT solutions, systems integration services and dense cluster computing systems, today reported financial results for the third quarter of fiscal 2012 ended June 30, 2012.
For the third quarter of fiscal 2012, total sales increased 19% to $22.4 million from $18.8 million for the third quarter of 2011. For the nine-month period, sales grew 10% to $62.5 million from $57 million in the year-earlier period.
Gross margin for the third quarter of fiscal 2012 increased to 23% compared with 19% in the third quarter a year ago. The year-over-year increase in gross margin was the result of greater Systems segment royalty revenue. Gross margin increased to 24% in the first nine months of fiscal 2012 from 22% in the same period of fiscal 2011.
Net income for the third quarter of fiscal 2012 increased to $758,000, or $0.22 per diluted share, compared with a net loss of $211,000, or $0.06 per share, in the third quarter of fiscal 2011. For the nine-month period, net income grew 264% to $1.6 million, or $0.48 per diluted share, from $455,000, or $0.13 per diluted share, in the same period in fiscal 2011.
Cash and short-term investments increased to $18 million compared with $15.9 million at year end fiscal 2011. The increase was due to higher net income, an increase in accounts payable and accrued expenses, higher deferred revenue, and a decrease in inventory and depreciation and amortization. This was partially offset by an increase in accounts receivable, an increase in other assets and prepaid items, the purchase of PP&E, the dividend payment and the negative effect of foreign exchange. CSP’s cash position may vary significantly from quarter to quarter due to the high working capital requirements needed to fund large projects at both its Systems and its Services and Systems Integration segments.
Management Comments
“We performed well again in the third quarter of fiscal 2012, reporting 19% growth in revenues, a 400 basis point increase in gross margins and net income per diluted share of $0.22 compared with a loss in the third quarter last year,” said CSP Chairman and Chief Executive Officer Alexander R. Lupinetti. “Our top line was driven by a 120% increase in sales at the Systems segment and 10% growth at Service and Systems Integration.”
“At our Systems segment, we reported an additional $2 million in royalties from Lockheed Martin for three E2D Advanced Hawkeye aircraft as part of phases 3 and 4 of the Low Rate Initial Production Phase,” said Lupinetti. “We have now received royalty for seven planes and expect that in the current fourth fiscal quarter we could receive royalty revenue for up to the remaining three planes under the purchase order.”
“The year-over-year increase in Service and Systems Integration segment revenue was driven by increased demand at our Germany and UK subsidiaries, offset by a decline in the US as a result of lower sales from our large hosting customer,” said Lupinetti. “The overall demand environment is positive in the US where we have a strong pipeline of potential university, institutional and hosting company customers. Sales to our large customers in Germany continue to be robust and we expect strong demand through the end of the fiscal year.”
“Based on expected royalty revenues in the Systems business and demand at Service and Systems Integration, we expect to report another strong quarter to conclude the fiscal year,” concluded Lupinetti.
Conference Call Details
CSP Chairman and Chief Executive Officer Alexander R. Lupinetti, and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) today to review CSP’s financial results and provide a business update. To listen to a live webcast of the call, please visit the “Investor Relations” section of the Company’s website at www.cspi.com. Individuals may also listen to the call via telephone, by dialing (877) 407-5790 or (201) 689-8328. For interested parties unable to participate in the live call, an archived version of the webcast will be available for approximately one year on CSP’s website.
About CSP Inc.
Based in Billerica, Massachusetts and founded in 1968, CSP Inc. and its subsidiaries develop and market IT integration solutions and high-performance computer systems to meet the diverse requirements of our industrial, commercial, and defense customers worldwide.
CSP’s Systems segment includes the MultiComputer Division, which designs and manufactures commercial high-performance computer signal processing systems for a variety of complex real time applications in defense and commercial markets. The Company’s MODCOMP Inc. subsidiary, also part of its Service and Systems Integration segment was founded in 1970, and has offices in the U.S., U.K. and Germany. Modcomp provides solutions and services for complex IT environments including storage and servers, unified communications solutions, IT security solutions and consulting services. More information about CSP is available on the company’s website at www.cspi.com.
To learn more about MODCOMP, Inc., consult www.modcomp.com.
Safe Harbor
The Company wishes to take advantage of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the Act. Such forward-looking statements may include, but are not limited to, CSP could receive royalty revenue for up to the remaining three planes under the purchase order, in under the purchase order the US where we have a strong pipeline of potential university, institutional and hosting company customers and sales to our large customers in Germany continue to be robust and we expect strong demand through the end of the fiscal year. The Company cautions that numerous factors could cause actual results to differ materially from forward-looking statements made by the Company. Such risks include general economic conditions, market factors, competitive factors and pricing pressures, and others described in the Company’s filings with the SEC. Please refer to the section on forward-looking statements included in the Company’s filings with the Securities and Exchange Commission.
|
|
CSP INC. AND SUBSIDIARIES |
|
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS |
|
|
(Amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
September 30, |
|
|
2012 |
|
2011 |
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and short-term investments |
|
$ |
18,037 |
|
$ |
15,874 |
| Accounts receivable, net |
|
|
14,146 |
|
|
13,148 |
| Inventories |
|
|
6,378 |
|
|
6,777 |
| Other current assets |
|
|
3,427 |
|
|
2,079 |
|
|
|
|
|
| Total current assets |
|
|
41,988 |
|
|
37,878 |
| Property, equipment and improvements, net |
|
|
905 |
|
|
833 |
| Other assets |
|
|
4,473 |
|
|
4,397 |
|
|
|
|
|
| Total assets |
|
$ |
47,366 |
|
$ |
43,108 |
|
|
|
|
|
|
|
|
|
|
| Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities |
|
|
19,097 |
|
|
15,870 |
|
|
|
|
|
| Pension and retirement plans |
|
|
8,835 |
|
|
9,056 |
| Non-current liabilities |
|
|
417 |
|
|
286 |
|
|
|
|
|
| Shareholders’ equity |
|
|
19,017 |
|
|
17,896 |
|
|
|
|
|
| Total liabilities and shareholders’ equity |
|
$ |
47,366 |
|
$ |
43,108 |
| CSP INC. AND SUBSIDIARIES |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| (Amounts in thousands, except per share data ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—–Three Months Ended—– |
|
—–Nine Months Ended—– |
|
|
June 30 |
|
June 30 |
|
June 30 |
|
June 30 |
|
|
|
2012 |
|
|
|
2011 |
|
|
|
2012 |
|
|
|
2011 |
|
| Sales: |
|
|
|
|
|
|
|
|
| Product |
|
$ |
16,328 |
|
|
$ |
14,726 |
|
|
$ |
43,607 |
|
|
$ |
42,784 |
|
| Service |
|
|
6,026 |
|
|
|
4,063 |
|
|
|
18,869 |
|
|
|
14,261 |
|
|
|
|
|
|
|
|
|
|
| Total sales |
|
|
22,354 |
|
|
|
18,789 |
|
|
|
62,476 |
|
|
|
57,045 |
|
|
|
|
|
|
|
|
|
|
| Cost of sales: |
|
|
|
|
|
|
|
|
| Product |
|
|
13,899 |
|
|
|
12,256 |
|
|
|
37,274 |
|
|
|
35,631 |
|
| Service |
|
|
3,226 |
|
|
|
2,912 |
|
|
|
10,435 |
|
|
|
9,016 |
|
|
|
|
|
|
|
|
|
|
| Total cost of sales |
|
|
17,125 |
|
|
|
15,168 |
|
|
|
47,709 |
|
|
|
44,647 |
|
|
|
|
|
|
|
|
|
|
| Gross Profit |
|
|
5,229 |
|
|
|
3,621 |
|
|
|
14,767 |
|
|
|
12,398 |
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Engineering and development |
|
|
444 |
|
|
|
442 |
|
|
|
1,301 |
|
|
|
1,460 |
|
| Selling, general & administrative |
|
|
3,580 |
|
|
|
3,450 |
|
|
|
10,828 |
|
|
|
10,135 |
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
4,024 |
|
|
|
3,892 |
|
|
|
12,129 |
|
|
|
11,595 |
|
|
|
|
|
|
|
|
|
|
| Operating income (loss) |
|
|
1,205 |
|
|
|
(271 |
) |
|
|
2,638 |
|
|
|
803 |
|
|
|
|
|
|
|
|
|
|
| Other income (loss), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign exchange loss |
|
|
(5 |
) |
|
|
(9 |
) |
|
|
(31 |
) |
|
|
– |
|
| Other expense, net |
|
|
(27 |
) |
|
|
(24 |
) |
|
|
(71 |
) |
|
|
(55 |
) |
| Total Other income (loss), net |
|
|
(32 |
) |
|
|
(33 |
) |
|
|
(102 |
) |
|
|
(55 |
) |
|
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
|
|
1,173 |
|
|
|
(304 |
) |
|
|
2,536 |
|
|
|
748 |
|
|
|
|
|
|
|
|
|
|
| Provision (benefit) for income taxes |
|
|
399 |
|
|
|
(90 |
) |
|
|
859 |
|
|
|
287 |
|
| Net income (loss) |
|
$ |
774 |
|
|
|
($214 |
) |
|
$ |
1,677 |
|
|
$ |
461 |
|
| Net income (loss) attributable to common stockholders |
|
$ |
759 |
|
|
|
($211 |
) |
|
$ |
1,647 |
|
|
$ |
455 |
|
| Net income (loss) per share – basic |
|
$ |
0.23 |
|
|
|
($0.06 |
) |
|
$ |
0.49 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding – basic |
|
|
3,366 |
|
|
|
3,428 |
|
|
|
3,362 |
|
|
|
3,446 |
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per share – diluted |
|
$ |
0.22 |
|
|
|
($0.06 |
) |
|
$ |
0.48 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding – diluted |
|
|
3,418 |
|
|
|
3,428 |
|
|
|
3,405 |
|
|
|
3,485 |
|
EAST BRUNSWICK, N.J., Aug. 8, 2012 /PRNewswire/ — Savient Pharmaceuticals, Inc. (NASDAQ: SVNT) today reported financial results for the three and six months ended June 30, 2012, which reflects the Company’s continuing commercialization of KRYSTEXXA® (pegloticase) in the U.S.
Savient ended the quarter with approximately $142.2 million in cash and short-term investments, a net increase of $11.2 million for the quarter. The increase in cash and short-term investments was primarily driven by the Company entering into definitive financing and restructuring agreements with certain of its 2018 convertible note-holders during the quarter, which raised approximately $43.1 million in net cash proceeds.
Net sales for KRYSTEXXA were $4.0 million for the second quarter of 2012, a 30% increase over the first quarter of 2012. For the second quarter of 2012, the Company had a net loss of $16.4 million, or $0.23 per share, on total revenues of $4.6 million, compared with a net loss of $30.2 million, or $0.43 per share, on total revenues of $2.0 million for the same period in 2011. The net loss for the first six months of 2012 was $50.6 million, or $0.72 per share, on total revenues of $8.2 million, compared with a net loss of $43.8 million, or $0.63 per share, on total revenues of $3.3 million for the same period in 2011. The net loss for the three and six-month periods ended June 30, 2012 includes a $21.8 million, or $0.31 per share, gain on the extinguishment of debt.
“We are confident in our plan, which builds upon the foundation we have established and the long term opportunity for KRYSTEXXA,” said Louis Ferrari, Chief Executive Officer and President. “To achieve that goal, we have implemented our reorganization plan and have put cost control initiatives in place that we believe will support future growth opportunities. We believe that these are necessary steps that will allow us to further the commercialization of KRYSTEXXA and drive sustainable results and value to patients, physicians and our stakeholders.”
Operational Highlights:
- Appointed Louis Ferrari to the position of Chief Executive Officer and President and a member of Savient’s board of directors.
- Implemented a reorganization plan designed to improve operational efficiencies while ensuring continued focus on the commercialization of KRYSTEXXA and the advancement of its clinical expansion programs.
- Published results of an analysis of KRYSTEXXA® Phase III data that demonstrates that adult patients with refractory chronic gout (RCG) treated bi-weekly experienced statistically significant and clinically meaningful improvements in health-related quality of life (HRQOL), pain and physical function. The results were published in the July 2012 issue of The Journal of Rheumatology.
- Seven abstracts were accepted for the European League Against Rheumatism (EULAR) 2012 Annual Congress, one of which was for oral presentation.
- Entered into definitive financing and restructuring agreements with certain of the Company’s existing 2018 convertible note-holders that raised approximately $43.1 million in net cash proceeds and extended maturity by approximately fifteen months.
- Granted a favorable decision by the Delaware Court of Chancery to the Company on certain aspects of the Tang Capital litigation.
- Adopted a stockholder rights plan intended to enable all of the Company’s stockholders to realize the full value of their investment in the Company.
Financial Results of Operations for the Three Months Ended June 30, 2012
Net revenues increased $2.6 million to $4.6 million for the three months ended June 30, 2012, from $2.0 million for the three months ended June 30, 2011, as a result of the continued sales momentum of KRYSTEXXA. We expect KRYSTEXXA sales to continue to increase in future periods as our marketing and promotion efforts take effect.
Cost of goods sold increased $5.7 million to $6.7 million for the three months ended June 30, 2012, from $1.0 million for the three months ended June 30, 2011. During the three-month period ended June 30, 2012, we recorded a $4.9 million charge primarily related to KRYSTEXXA in process and finished goods inventory that we currently estimate we will not be able to sell through, prior to expiration. Additionally, a portion of the charge relates to future minimum purchase commitments of raw material for use in manufacturing of KRYSTEXXA finished product that we do not believe will be required for future manufacturing.
Research and development expenses decreased $1.0 million to $6.7 million for the three months ended June 30, 2012, from $7.7 million for the three months ended June 30, 2011. The decrease is primarily due to prior year costs associated with our potential secondary source supplier of pegloticase drug substance relating to validation batch production partially offset by current year expenses related to our post-FDA approval clinical studies for KRYSTEXXA.
Selling, general and administrative expenses increased $3.4 million to $27.3 million for the three months ended June 30, 2012, from $23.9 million for the three months ended June 30, 2011, primarily due to increased selling and marketing expenses associated with our marketing and commercialization efforts for KRYSTEXXA and an increase in legal expenses.
We recorded a gain of approximately $21.8 million upon the extinguishment of debt during the three-month period ended June 30, 2012, as a result of exchanging a significant portion of our 2018 Convertible Notes for 2019 Notes that were issued at a discount. The gain arose as the fair value of the 2018 Convertible Notes was less than its carrying value at the time of the transaction.
Other income, net increased $3.5 million for the three-month period ended June 30, 2012 as a result of a decrease in the fair value of our warrant liability due to the mark-to-market valuation adjustment during the current quarter. The decrease in fair value of our warrant liability was primarily driven by a lower Company common stock price subsequent to the issuance date of the warrants.
Conference Call and Webcast
The Company will host a live conference call and webcast on August 8, 2012 at 9:00 a.m. EDT to discuss these results and to answer questions. To participate by telephone, please dial:
|
Domestic:
|
866-393-1565
|
|
International:
|
253-237-1151
|
|
Conference ID:
|
9954484
|
The live and archived webcast can be accessed on the investor relations section of the Savient website at www.savient.com. A telephone replay will be available on August 8, 2012 through August 16, 2012 by dialing:
|
Domestic:
|
855-859-2056
|
|
International:
|
404-537-3406
|
|
Conference ID:
|
99954484
|
ABOUT SAVIENT PHARMACEUTICALS, INC.
Savient Pharmaceuticals, Inc. is a specialty biopharmaceutical company focused on developing and commercializing KRYSTEXXA® (pegloticase) for the treatment of chronic gout in adult patients refractory to conventional therapy. Savient has exclusively licensed worldwide rights to the technology related to KRYSTEXXA and its uses from Duke University (“Duke”) and Mountain View Pharmaceuticals, Inc. (“MVP”). Duke developed the recombinant uricase enzyme and MVP developed the PEGylation technology used in the manufacture of KRYSTEXXA. MVP and Duke have been granted U.S. and foreign patents disclosing and claiming the licensed technology and, in addition, Savient owns or co-owns U.S. and foreign patents and patent applications, which collectively form a broad portfolio of patents covering the composition, manufacture and methods of use and administration of KRYSTEXXA. Savient also manufactures and supplies Oxandrin® (oxandrolone tablets, USP) CIII in the U.S. For more information, please visit the Company’s website at www.savient.com.
FORWARD-LOOKING STATEMENTS
All statements other than statements of historical facts included in this press release are forward-looking statements that are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such statements. These risks, trends and uncertainties are in some instances beyond our control. Words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “will” and other similar expressions identify forward-looking statements, although not all forward-looking statements contain these identifying words. In particular, any statements regarding the safety and efficacy of KRYSTEXXA®, the potential to expand the clinical utility of KRYSTEXXA, status of our KRYSTEXXA marketing efforts in the US and additional plans related thereto both in the US and ex-US, market demand and reimbursement for KRYSTEXXA, our view of the refractory chronic gout (RCG) market size in the US and ex-US, and our market expansion plans including our MAA filing before the EMA are forward-looking statements. These forward-looking statements involve substantial risks and uncertainties and are based on our assessment and interpretation of the currently available data and information, current expectations, assumptions, estimates and projections about our business and the biopharmaceutical and specialty pharmaceutical industries in which we operate. Important factors that may affect our ability to achieve the matters addressed in these forward-looking statements include, but are not limited to, developments that may arise in the litigation with Tang Capital; our ability to commercialize KRYSTEXXA; the risk that the market for KRYSTEXXA is smaller than we have anticipated; our ability to retain the personnel; our reliance on third parties to manufacture KRYSTEXXA; competition from existing therapies and therapies that are currently under development, including therapies that are significantly less expensive than KRYSTEXXA; our ability to gain market acceptance for KRYSTEXXA among physicians, patients, health care payers and others in the medical community; whether we are able to obtain financing, if needed; economic, political and other risks associated with foreign operations; risks of maintaining protection for our intellectual property; risks of an adverse determination in intellectual property litigation; and risks associated with stringent government regulation of the biopharmaceutical industry and other important factors set forth more fully in our reports filed with the Securities and Exchange Commission, to which investors are referred for further information. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements, which speak only as of the date of publication of this press release. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments that we may make. We do not have a policy of updating or revising forward-looking statements and, except as required by law, assume no obligation to update any forward-looking statements.
SVNT-I
|
(Tables to Follow)
|
|
|
SAVIENT PHARMACEUTICALS, INC.
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In thousands, except share data)
|
|
|
|
June 30,
|
|
December 31,
|
|
2012
|
|
2011
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash equivalents
|
$ 92,463
|
|
$ 114,094
|
|
Short-term investments
|
49,748
|
|
55,694
|
|
Accounts receivable, net
|
5,677
|
|
4,737
|
|
Inventories, net
|
10,305
|
|
10,924
|
|
Prepaid expenses and other current assets
|
7,566
|
|
4,186
|
|
|
|
|
|
Total current assets
|
165,759
|
|
189,635
|
|
|
|
|
|
Property and equipment, net
|
884
|
|
833
|
|
Deferred financing costs, net
|
5,058
|
|
4,068
|
|
Restricted cash
|
2,970
|
|
2,580
|
|
Total assets
|
$ 174,671
|
|
$ 197,116
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Accounts payable
|
$ 5,551
|
|
$ 7,046
|
|
Deferred revenues
|
428
|
|
414
|
|
Warrant liability
|
1,490
|
|
—
|
|
Accrued interest
|
3,154
|
|
4,643
|
|
Other current liabilities
|
20,741
|
|
17,962
|
|
|
|
|
|
Total current liabilities
|
31,364
|
|
30,065
|
|
|
|
|
|
Convertible notes, net of discount of $27,225 at June 30, 2012 and $54,542 at December 31, 2011
|
95,216
|
|
175,458
|
|
Senior secured notes, net of discount of $51,103 at June 30, 2012
|
119,838
|
|
—
|
|
Other liabilities
|
1,462
|
|
3
|
|
Stockholders’ Deficit:
|
|
|
|
|
Preferred stock—$.01 par value 4,000,000 shares authorized; no shares issued
|
—
|
|
—
|
|
Common stock—$.01 par value 150,000,000 shares authorized; 72,859,000 issued and outstanding at June 30, 2012 and 71,502,000 shares issued and outstanding at December 31, 2011
|
728
|
|
715
|
|
Additional paid-in-capital
|
394,077
|
|
408,463
|
|
Accumulated deficit
|
(468,180)
|
|
(417,603)
|
|
Accumulated other comprehensive income
|
166
|
|
15
|
|
|
|
|
|
Total stockholders’ deficit
|
(73,209)
|
|
(8,410)
|
|
|
|
|
|
Total liabilities and stockholders’ deficit
|
$ 174,671
|
|
$ 197,116
|
|
SAVIENT PHARMACEUTICALS, INC.
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited)
|
|
(In thousands, except per share data)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
June 30,
|
|
June 30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
Revenues:
|
|
|
|
|
Product sales, net
|
$ 4,626
|
|
$ 1,984
|
|
$ 8,160
|
|
$ 3,274
|
|
|
|
|
|
|
|
|
|
Cost and expenses:
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
6,727
|
|
1,008
|
|
8,447
|
|
1,424
|
|
Research and development
|
6,705
|
|
7,729
|
|
13,951
|
|
11,457
|
|
Selling, general and administrative
|
27,327
|
|
23,856
|
|
51,579
|
|
40,493
|
|
40,759
|
|
32,593
|
|
73,977
|
|
53,374
|
|
|
|
|
|
|
|
|
|
Operating loss
|
(36,133)
|
|
(30,609)
|
|
(65,817)
|
|
(50,100)
|
|
Investment income, net
|
41
|
|
38
|
|
84
|
|
68
|
|
Interest expense on debt
|
(5,600)
|
|
(5,068)
|
|
(10,157)
|
|
(8,307)
|
|
Gain on extinguishment of debt
|
21,800
|
|
—
|
|
21,800
|
|
—
|
|
Other income (expense), net
|
3,513
|
|
(10)
|
|
3,513
|
|
1,750
|
|
|
|
|
|
Loss before income taxes
|
(16,379)
|
|
(35,649)
|
|
(50,577)
|
|
(56,589)
|
|
Income tax benefit
|
—
|
|
(5,400)
|
|
—
|
|
(12,810)
|
|
|
|
|
|
|
|
|
|
Net loss
|
$ (16,379)
|
|
$ (30,249)
|
|
$ (50,577)
|
|
$ (43,779)
|
|
|
|
|
|
|
|
|
|
Loss per common share:
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$ (0.23)
|
|
$ (0.43)
|
|
$ (0.72 )
|
|
$ (0.63)
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares:
|
|
|
|
|
|
|
|
Basic and diluted
|
70,721
|
|
70,075
|
|
70,596
|
|
70,035
|
|
Contact:
|
|
|
|
|
Mary Coleman
|
Kelly Sullivan / Taylor Ingraham
|
|
Savient Pharmaceuticals, Inc.
|
Joele Frank, Wilkinson Brimmer Katcher
|
|
information@savient.com
|
ksullivan@joelefrank.com / tingraham@joelefrank.com
|
|
(732) 418-9300
|
(212) 355-4449
|
SOURCE Savient Pharmaceuticals, Inc.
DALLAS and CAESAREA, Israel, Aug. 8, 2012 (GLOBE NEWSWIRE) — Zion Oil & Gas, Inc. (Nasdaq:ZN) announced the successful end of field operations at its Elijah #3 wellsite within its 78,824 acre Asher-Menashe License in northern Israel.
In July 2012, Zion re-entered the existing wellbore of its temporarily suspended Elijah #3 well and acquired an electric wireline log suite that had not been acquired when the well was originally drilled in 2010. A Formation Evaluation Log (an advanced petrophysical evaluation analysis) was then derived from the newly acquired log suite and Zion subsequently obtained approximately 48 sidewall core samples from key zones in the previously drilled wellbore. During the re-entry operations, Zion also obtained vertical seismic profile (VSP) data. Zion was assisted in this project by Baker Hughes, the Geophysical Institute of Israel, NuTech Energy Alliance (“NuTech”), Core Labs, and Bedrock Petroleum Consultants.
A preliminary review of the NuTech Formation Evaluation Log indicates the presence of a series of carbonates over two thousand feet thick, with the possibility of interspersed zones of developed fair to good porosity and permeability with oil shows (up to a combined several hundred feet thick) at depths shallower than 9,350 feet. When the sidewall core samples were retrieved, dark brown hydrocarbon stains were noted on some sidewall core samples. The core samples have been sent to Houston, Texas for further analysis and both Baker Hughes and the Geophysical Institute of Israel are processing the VSP data. Zion estimates that the analysis of the core samples and the VSP processing and analysis will take at least one month.
Zion’s Chief Executive Officer, Richard Rinberg, said, “After successfully completing this exploratory work, initial indications are positive; however, much analysis needs to be carried out during the coming weeks and months.”
Zion’s President and Chief Operating Officer, Victor G. Carrillo, said: “We are excited about the potential of this relatively shallow, stacked carbonate with a possible Jurassic oil column in our Elijah #3 wellbore. The combination of old data and newly acquired geophysical and geological data represents the most extensive dataset Zion has ever had, as the Company has never previously obtained VSP or sidewall core data. I believe this combination of data will give us a better subsurface image of the hydrocarbon potential in proximity to this wellbore.”
The primary purpose of the re-entry operation was to obtain additional geologic and geophysical data and to better understand the hydrocarbon potential of a zone through which Zion drilled while drilling the Elijah #3 well in late 2009 and early 2010. The Elijah #3 well, originally planned to drill to below 17,000 feet, to test both Triassic and Permian-aged geological formations, was temporarily suspended in 2010 after encountering technical issues at a total depth of approximately 11,000 feet. In the recently completed field operations, the rig arrived at the Elijah #3 wellsite on July 15, 2012, and was released by the Company on August 8, 2012.
Zion Oil & Gas, a Delaware corporation, explores for oil and gas in Israel in areas located onshore between Haifa and Tel Aviv. It currently holds three petroleum exploration licenses: the Joseph License (on approximately 83,272 acres) and the Asher-Menashe License (on approximately 78,824 acres) between Netanya, in the south, and Haifa, in the north, and the Jordan Valley License (on approximately 55,845 acres), just south of the Sea of Galilee. The total license area amounts to approximately 218,000 acres.
FORWARD-LOOKING STATEMENTS: Statements in this communication that are not historical fact, including statements regarding Zion’s planned operations, geophysical and geological data and interpretation, anticipated time frame of the completion of testing and analysis, anticipated attributes of geological strata being drilled, drilling efforts and locations, the presence or recoverability of hydrocarbons, sufficiency of cash reserves, timing and potential results thereof and plans contingent thereon are forward-looking statements as defined in the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward looking statements are based on assumptions that are subject to significant known and unknown risks, uncertainties and other unpredictable factors, many of which are described in Zion’s periodic reports filed with the SEC and are beyond Zion’s control. These risks could cause Zion’s actual performance to differ materially from the results predicted by these forward-looking statements. Zion can give no assurance that the expectations reflected in these statements will prove to be correct and assumes no responsibility to update these statements.
Zion’s homepage may be found at: www.zionoil.com
The Zion Oil & Gas, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6850
CONTACT: Zion Oil & Gas, Inc.
6510 Abrams Rd., Suite 300
Dallas, TX 75231
Brittany Russell:
Telephone: 214-221-4610
Email: dallas@zionoil.com
HOUSTON, Aug. 8, 2012 (GLOBE NEWSWIRE) — Duma Energy Corp. (OTCBB:DUMA) (“Duma” or the “Company”) today announced that it has entered into an agreement, dated August 7, 2012 (the “Agreement”), to acquire Namibia Exploration, Inc. (“NEI”), a company organized under the laws of the State of Nevada, USA. As a result of the completion of the acquisition, NEI would become a wholly-owned subsidiary of Duma. NEI holds the rights to a 39% working interest in an onshore Namibian petroleum concession measuring approximately 5.3 million acres.
“The Owambo Basin in Namibia, where our concession is located, is in the northern part of the country near the border of Angola. The exploration potential of this large concession is high and the preliminary data is encouraging,” stated Jeremy G. Driver, Chairman and CEO of Duma. He went on to say, “This acquisition fits our stated strategy of producing domestic cash flow in order to fund high impact international opportunities.”
“Africa remains a vastly under-explored continent despite increasing discoveries in recent years of world class oil and gas reserves by companies such as Kosmos and Tullow PLC. Major and independent players such as Chevron and Hyperdynamics have secured huge acreage positions and are budgeting billions of dollars for exploration,” said Pasquale Scaturro, Hydrocarb’s President and Chief Operating Officer. Mr. Scaturro further stated, “The Owambo Basin concession is over 5 million acres, roughly the size of Massachusetts. It has all of the key ingredients for becoming a major oil province, including good reservoir and source rocks that extend into southern Angola, one of the top oil producers in Africa. The commercial terms of our Petroleum Contract are highly favorable and since our concessions are onshore, operating and exploration costs are a fraction of those offshore.”
As a consequence of the completion of the acquisition, Duma, through NEI, will have acquired and been assigned a 39% working interest (43.33% cost responsibility) in and to an onshore African petroleum concession (the “Concession”) located in the Republic of Namibia which is approximately 5.3 million acres in size and covered by Petroleum Exploration License No. 0038 as issued by the Republic of Namibia Ministry of Mines and Energy. Duma will then hold its indirect working interest in the Concession in partnership with the National Petroleum Corporation of Namibia Ltd. (“NPC Namibia”) and Hydrocarb Namibia Energy Corporation (“Hydrocarb Namibia”), a company chartered in the Republic of Namibia and which is a majority owned subsidiary of Hydrocarb Corporation (“Hydrocarb”), a company organized under the laws of the State of Nevada, USA. Hydrocarb Namibia, as operator of the Concession, will then hold a 51% working interest (56.67% cost responsibility) in the Concession and NPC Namibia will then hold a 10% carried working interest in the Concession. The assignment of the 39% working interest to NEI from Hydrocarb Namibia is subject to the prior approval of the government of the Republic of Namibia.
Pursuant to the terms of the Agreement, Duma is required to issue shares of stock as consideration for the acquisition in accordance with particular milestones based upon market capitalization levels which must be reached within 10 years after the closing of the Agreement. The shares of Duma to be issued pursuant to the Agreement have not been registered under the Securities Act of 1933, as amended (the “Act”), or under the securities laws of any state in the United States, and were issued in reliance upon an exemption from registration under the Act. The securities may not be offered or sold in the United States absent registration under the Act or an applicable exemption from such registration requirements.
Further information on this transaction can be found in the Company’s Form 8-K which will be filed with the SEC shortly.
The Company will also be updating its website to include further information regarding this acquisition and the Namibian concession. A short video has been made available at www.duma.com
About Duma Energy Corp.
Duma Energy Corp. (DUMA) is an aggressive growth company actively producing oil and gas in the continental United States, both on and offshore. Duma Energy will continue increasing revenue, cash flow and reserves to fund its aggressive growth through acquisition and participation in projects with the potential of providing exponential returns for shareholders. Further information can be found on Duma’s website at www.duma.com.
About Hydrocarb Corporation
Hydrocarb Corporation is a privately held energy exploration and production company targeting major under-explored oil and gas projects in emerging, highly prospective regions of the world. With headquarters in Houston, Texas, Hydrocarb maintains offices in Abu Dhabi, UAE and Windhoek, Namibia. For further information: www.hydrocarb.com
Safe Harbor Statements
Except for the statements of historical fact contained herein, the information presented in this news release constitutes “forward-looking statements” as such term is used in applicable United States laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. 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” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. Such forward looking statements involve 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 risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of oil or gas resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the oil and gas industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. 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 such 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 contained in this news release and in any document referred to in this news release.
Forward looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the “SEC”) (available at www.sec.gov). Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company’s filings with the SEC, such as the ability to obtain additional financing, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company’s periodic reports filed from time-to-time with the SEC.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
CONTACT: Investor Relations
Investor Awareness, Inc.
Tony Schor
847-945-2222
www.InvestorAwareness.com
Zalicus Inc. (NASDAQ: ZLCS) today reported financial results for the second quarter ended June 30, 2012.
“During the first half of 2012 we made tremendous progress advancing our internal pipeline candidates including the initiation of a multiple ascending dose Phase 1 clinical study with Z944, our novel, oral, T-type calcium channel blocker and second Ion channel program to advance into clinical development,” commented Mark H.N. Corrigan, MD, President and CEO of Zalicus. “Looking forward to the third quarter of 2012 we are on-track to move Z160, our first-in-class treatment for neuropathic pain, into Phase 2a clinical trials and report top-line data results with Synavive.”
Second Quarter 2012 and Recent Accomplishments:
Pipeline Progress:
- Completed enrollment in the Synavive® Phase 2b SYNERGY trial, with 259 patients enrolled in the active phase of the study. The SYNERGY clinical trial is designed to evaluate the safety and efficacy of Synavive, a low-dose glucocorticoid with the potential for amplified immuno-inflammatory benefits, in patients with rheumatoid arthritis (RA). Top-line results of the clinical trial are expected to be available in the third quarter of 2012.
- Advancing Z160, a novel, oral, N-type calcium channel blocker into multiple Phase 2a clinical trials for neuropathic pain indications. Zalicus has selected the most promising formulation for clinical use and is planning to initiate two Phase 2a clinical trials with Z160 this year for the treatment of neuropathic pain, including post-herpetic neuralgia and neuropathic pain from lumbosacral radiculopathy (LSR), a form of chronic lower back pain. The first of these Phase 2a studies in LSR is expected to begin enrolling patients in the third quarter of 2012.
- Initiated a Phase 1 multiple ascending dose (MAD) clinical study with Z944, its novel, oral, T-type calcium channel blocker which has demonstrated efficacy in a number of preclinical inflammatory pain models and other disease models. The initiation of this MAD study follows the successfully completed Phase 1 single ascending dose study in which Z944 was determined to be generally well-tolerated and a maximum tolerated dose was achieved. T-type calcium channels have been recognized as key targets in the therapeutic inhibition of a broad range of cell functions and have been implicated in the frequency and intensity of pain signals. Assuming Z944 successfully completes the MAD study, Z944 could enter Phase 2 clinical development in the first quarter of 2013.
Collaborations and Partnered Programs:
- Extended our alliance with Novartis for an additional contract year, through April 2013, based on the success of the cHTS discovery collaboration up to this point. This is Novartis’ second extension, further validating the value of the cHTS discovery technology to the advancement of novel treatments for cancer.
Financing Matters:
- Completed our previously announced at-the-market equity offering (ATM) with Wedbush Securities Inc. on August 1, 2012. Since commencing sales under the ATM on June 20, 2012, Zalicus sold a total of 13,091,957 shares of common stock, with net offering proceeds to Zalicus of approximately $14.6 million.
Second Quarter 2012 Financial Results (Unaudited):
As of June 30, 2012, we had cash, cash equivalents, restricted cash and short-term investments of approximately $44.1 million compared to $52.5 million on March 31, 2012.
For the quarter ended June 30, 2012, revenue was $2.9 million compared to $1.8 million for the quarter ended June 30, 2011. The increase in revenue from the 2011 to the 2012 period was primarily due to increased Exalgo royalties from Covidien and increased collaboration revenue from Novartis. Zalicus recognized $1.3 million in royalty revenue from Covidien based on Exalgo sales for the quarter ended June 30, 2012. This represented a 12% increase in revenue from Exalgo compared to the first quarter of 2012.
For the quarter ended June 30, 2012, net loss was $10.3 million, or $0.09 per share, compared to a net loss of $11.3 million, or $0.11 per share, in the quarter ended June 30, 2011.
Research and development expenses were $9.9 million in the quarter ended June 30, 2012 compared to $9.0 million in the quarter ended June 30, 2011. The increase in R&D expense from the 2011 period to the 2012 period was primarily due to increased clinical development expenses related to Z160.
General and administrative expenses were $2.3 million in the quarter ended June 30, 2012 compared to $2.7 million for the quarter ended June 30, 2011. We expect our general and administrative expenses for the remainder of the year ending December 31, 2012 to be consistent with such expenses during 2011.
About Zalicus
Zalicus Inc. (Nasdaq: ZLCS) is a biopharmaceutical company that discovers and develops novel treatments for patients suffering from pain and immuno-inflammatory diseases. Zalicus has a portfolio of proprietary clinical-stage product candidates targeting pain and immuno-inflammatory diseases and has entered into multiple revenue-generating collaborations with large pharmaceutical companies relating to other products, product candidates and drug discovery technologies. Zalicus applies its expertise in the discovery and development of selective Ion channel modulators and its combination high throughput screening capabilities to discover innovative therapeutics for itself and its collaborators in the areas of pain, inflammation, oncology and infectious disease. To learn more about Zalicus, please visit www.zalicus.com.
Forward-Looking Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Zalicus, its product candidates, their potential and the plans for their clinical development, the Zalicus selective Ion channel modulation technology, and related preclinical product candidates, Zalicus’ combination drug discovery technology, cHTS, and its financial condition, results of operations, and other business plans. These forward-looking statements about future expectations, plans, objectives and prospects of Zalicus may be identified by words like “believe,” “expect,” “may,” “will,” “should,” “seek,” “plan” or “could” and similar expressions and involve significant risks, uncertainties and assumptions, including risks related to the sale and marketing of Exalgo by Covidien, risks related to the development and regulatory approval of Zalicus’ product candidates, including risks relating to formulation and clinical development of Synavive, Z160 and Z944, the unproven nature of the Zalicus drug discovery technologies, the ability of the Company or its collaboration partners to initiate and successfully complete clinical trials of its product candidates, the Company’s ability to obtain additional financing or funding for its research and development and those other risks that can be found in the “Risk Factors” section of Zalicus’ annual report on Form 10-K on file with the Securities and Exchange Commission and the other reports that Zalicus periodically files with the Securities and Exchange Commission. Actual results may differ materially from those Zalicus contemplated by these forward-looking statements. These forward-looking statements reflect management’s current views and Zalicus does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release except as required by law.
(c) 2012 Zalicus Inc. All rights reserved.
|
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|
|
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|
|
|
|
| Zalicus Inc. |
| Condensed Consolidated Statements of Comprehensive Loss |
| (in thousands, except share and per share amounts)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, |
|
|
Six months ended June 30, |
|
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
| Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
| Collaborations and other |
|
|
$ |
2,821 |
|
|
|
$ |
1,650 |
|
|
|
$ |
5,042 |
|
|
|
$ |
2,742 |
|
| Government contracts and grants |
|
|
|
103 |
|
|
|
|
198 |
|
|
|
|
202 |
|
|
|
|
377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
|
2,924 |
|
|
|
|
1,848 |
|
|
|
|
5,244 |
|
|
|
|
3,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
|
9,861 |
|
|
|
|
8,990 |
|
|
|
|
20,443 |
|
|
|
|
16,807 |
|
| General and administrative |
|
|
|
2,308 |
|
|
|
|
2,723 |
|
|
|
|
4,971 |
|
|
|
|
5,467 |
|
| Amortization of intangible |
|
|
|
973 |
|
|
|
|
1,285 |
|
|
|
|
1,946 |
|
|
|
|
2,570 |
|
| Restructuring |
|
|
|
28 |
|
|
|
|
— |
|
|
|
|
1,129 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total operating expenses |
|
|
|
13,170 |
|
|
|
|
12,998 |
|
|
|
|
28,489 |
|
|
|
|
24,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from operations |
|
|
|
(10,246 |
) |
|
|
|
(11,150 |
) |
|
|
|
(23,245 |
) |
|
|
|
(21,725 |
) |
| Interest income |
|
|
|
44 |
|
|
|
|
31 |
|
|
|
|
85 |
|
|
|
|
67 |
|
| Interest expense |
|
|
|
(563 |
) |
|
|
|
(116 |
) |
|
|
|
(1,154 |
) |
|
|
|
(221 |
) |
| Other income (expense) |
|
|
|
— |
|
|
|
|
(79 |
) |
|
|
|
7 |
|
|
|
|
(146 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss before provision for income taxes |
|
|
|
(10,765 |
) |
|
|
|
(11,314 |
) |
|
|
|
(24,307 |
) |
|
|
|
(22,025 |
) |
| Income tax benefit |
|
|
|
441 |
|
|
|
|
— |
|
|
|
|
441 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
|
$ |
(10,324 |
) |
|
|
$ |
(11,314 |
) |
|
|
$ |
(23,866 |
) |
|
|
$ |
(22,025 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss per share—basic and diluted |
|
|
$ |
(0.09 |
) |
|
|
$ |
(0.11 |
) |
|
|
$ |
(0.22 |
) |
|
|
$ |
(0.23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| used in net loss per share calculation—basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| and diluted |
|
|
|
113,730,060 |
|
|
|
|
98,867,394 |
|
|
|
|
108,760,065 |
|
|
|
|
95,440,314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive loss |
|
|
$ |
(10,331 |
) |
|
|
$ |
(11,303 |
) |
|
|
$ |
(23,851 |
) |
|
|
$ |
(22,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Zalicus Inc. |
| Condensed Consolidated Balance Sheets |
| (in thousands except per share data) |
| (Unaudited) |
|
|
|
|
|
|
|
|
|
|
June 30,
2012 |
|
|
December 31,
2011 |
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
$ |
4,604 |
|
|
|
$ |
2,750 |
|
| Restricted cash |
|
|
|
— |
|
|
|
|
50 |
|
| Short-term investments |
|
|
|
37,682 |
|
|
|
|
45,124 |
|
| Accounts receivable |
|
|
|
2,157 |
|
|
|
|
1,886 |
|
| Prepaid expenses and other current assets |
|
|
|
1,516 |
|
|
|
|
1,397 |
|
|
|
|
|
|
|
|
| Total current assets |
|
|
|
45,959 |
|
|
|
|
51,207 |
|
| Property and equipment, net |
|
|
|
4,208 |
|
|
|
|
5,258 |
|
| Intangible asset, net |
|
|
|
19,600 |
|
|
|
|
21,546 |
|
| Restricted cash and other assets |
|
|
|
1,928 |
|
|
|
|
1,872 |
|
|
|
|
|
|
|
|
| Total assets |
|
|
$ |
71,695 |
|
|
|
$ |
79,883 |
|
|
|
|
|
|
|
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
|
$ |
1,741 |
|
|
|
$ |
1,743 |
|
| Accrued expenses and other current liabilities |
|
|
|
4,831 |
|
|
|
|
6,133 |
|
| Accrued restructuring |
|
|
|
457 |
|
|
|
|
— |
|
| Deferred revenue |
|
|
|
4,757 |
|
|
|
|
3,349 |
|
| Current portion of term loan payable |
|
|
|
5,752 |
|
|
|
|
4,035 |
|
| Current portion of lease incentive obligation |
|
|
|
284 |
|
|
|
|
284 |
|
|
|
|
|
|
|
|
| Total current liabilities |
|
|
|
17,822 |
|
|
|
|
15,544 |
|
| Term loan payable, net of current portion |
|
|
|
12,031 |
|
|
|
|
15,099 |
|
| Deferred revenue, net of current portion |
|
|
|
1,230 |
|
|
|
|
3,000 |
|
| Deferred rent, net of current portion |
|
|
|
531 |
|
|
|
|
605 |
|
| Lease incentive obligation, net of current portion |
|
|
|
1,017 |
|
|
|
|
1,159 |
|
| Other long-term liabilities |
|
|
|
42 |
|
|
|
|
563 |
|
| Stockholders’ equity: |
|
|
|
|
|
|
| Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued |
|
|
|
|
|
|
| and outstanding |
|
|
|
— |
|
|
|
|
— |
|
| Common stock, $0.001 par value; 200,000 shares authorized; 115,968 and 99,239 |
|
|
|
|
|
|
| shares issued and outstanding at June 30, 2012 and December 31, 2011, |
|
|
|
|
|
|
| respectively |
|
|
|
116 |
|
|
|
|
99 |
|
| Additional paid-in capital |
|
|
|
359,461 |
|
|
|
|
340,518 |
|
| Accumulated other comprehensive income (loss) |
|
|
|
7 |
|
|
|
|
(8 |
) |
| Accumulated deficit |
|
|
|
(320,562 |
) |
|
|
|
(296,696 |
) |
|
|
|
|
|
|
|
| Stockholders’ equity |
|
|
|
39,022 |
|
|
|
|
43,913 |
|
|
|
|
|
|
|
|
| Total liabilities and stockholders’ equity |
|
|
$ |
71,695 |
|
|
|
$ |
79,883 |
|
|
|
|
|
|
|
|
Vitesse Semiconductor Corporation (NASDAQ: VTSS), a leading provider of advanced IC solutions for Carrier and Enterprise networks, reported its financial results for the third quarter of fiscal year 2012, ended June 30, 2012.
“Our vision and operational management continue to deliver, resulting in both operating and net income profitability this quarter,” said Chris Gardner, CEO of Vitesse. “Vitesse’s strategy to leverage our disruptive technology to gain share in the high-growth Carrier and Enterprise networking markets is also working. Innovations such as VeriTime™, our patent-pending distributed timing technology with the industry’s highest accuracy IEEE1588v2 timing, strengthen our market leadership.”
“While market challenges persist, we remain confident that our product development investments and solid execution will drive our revenue growth. Near-term, we see this trend with core revenue growing at 11% sequentially this quarter. Looking out, revenues from our new products will double from 2012 to 2013 and double again in 2014. In fact, the design wins expected to drive this revenue growth in 2013 are currently in or moving to production.”
Third Quarter Fiscal Year 2012 Financial Results Summary
- Total net revenues were $30.3 million, compared to $29.7 million in the second quarter of fiscal year 2012 and $36.0 million in the third quarter of fiscal year 2011.
- Product revenues were $25.7 million compared to $27.2 million in the second quarter of fiscal year 2012 and $31.9 million in the third quarter of fiscal year 2011.
- The product lines contributed the following as a percent of product revenue as compared to the second quarter of fiscal year 2012:
- Carrier networking products: 45.1% versus 35.3%
- Enterprise networking products: 52.6% versus 48.3%
- Core Carrier and Enterprise networking products: 97.7% versus 83.6%
- Non-core products: 2.3% versus 16.4%
- Intellectual property revenues totaled $4.6 million compared to $2.5 million in the second quarter of fiscal year 2012 and $4.1 million in the third quarter of fiscal year 2011.
- Product margins were 56.2% compared to 61.0% in the second quarter of fiscal year 2012 and 57.8% in the third quarter of fiscal year 2011.
- Operating expenses decreased to $16.9 million from $18.0 million in the second quarter of fiscal year 2012 and $22.2 million in the third quarter of fiscal year 2011.
- Operating income was $2.1 million up from $1.1 million in the second quarter of fiscal year 2012 and $326,000 in the third quarter of fiscal year 2011.
- Non-GAAP operating income was $3.3 million up from $2.3 million in the second quarter of fiscal year 2012 and $1.5 million in the third quarter of fiscal year 2011.
- Net income, which included a $5.8 million gain on the embedded derivative, was $4.7 million, or $0.18 per basic and $0.16 per fully diluted share. This compares to a net loss, which included a $5.3 million loss on the embedded derivative, of $6.2 million, or $0.25 per basic and fully diluted share, in the second quarter of fiscal year 2012; and net income of $6.6 million, which included an $8.0 million gain on the embedded derivative, or $0.26 per basic share and $0.21 per fully diluted share, in the third quarter of fiscal year 2011.
- Non-GAAP net income was $140,000, or breakeven per basic share and fully diluted share, compared to non-GAAP net income of $313,000, or $0.01 per basic and breakeven per fully diluted share, for the second quarter of fiscal year 2012; and a non-GAAP net loss of $202,000, or $0.02 per basic and fully diluted share, in the third quarter of fiscal year 2011.
Balance Sheet Data at June 30, 2012 as Compared to September 30, 2011
- Cash balance increased to $20.6 million, compared to $17.3 million;
- Accounts receivable totaled $10.7 million, compared to $9.6 million;
- Inventory totaled $14.8 million, compared to $20.9 million; and
- Working capital increased to $27.2 million, compared to $26.7 million.
Fourth Quarter Fiscal 2012 Outlook
For the fourth quarter of fiscal year 2012, ending September 30, 2012, Vitesse expects revenues to be in the range of $28.0 million to $31.5 million and product margins are expected to be between 55% and 57%. Operating expenses are expected to be between $18.0 million and $19.0 million.
August 7, 2012 Conference Call Information
A conference call is scheduled for Tuesday, August 7, 2012, at 1:30 p.m. Pacific Time / 4:30 p.m. Eastern Time to report financial results for the third quarter of fiscal year 2012.
To listen to the conference call via telephone, dial 888.203.7667 (U.S. toll-free) or 719.325.2111 (International) and provide the passcode 2470079. Participants should dial in at least 10 minutes prior to the start of the call. To listen via the Internet, the webcast can be accessed through the Vitesse corporate web site at www.vitesse.com.
The playback of the conference call will be available approximately two hours after the call concludes and will be accessible on the Vitesse corporate web site or by calling 877.870.5176 (U.S. toll-free) or 858.384.5517 (International) and entering the passcode 2470079. The audio replay will be available for seven days.
About Vitesse
Vitesse (NASDAQ: VTSS) designs a diverse portfolio of high-performance semiconductor solutions for Carrier and Enterprise networks worldwide. Vitesse products enable the fastest-growing network infrastructure markets including Mobile Access/IP Edge, Cloud Computing and SMB/SME Enterprise Networking. Visit www.vitesse.com or follow us on Twitter @VitesseSemi.
Vitesse is a registered trademark of Vitesse Semiconductor Corporation in the United States and other jurisdictions. All other trademarks or registered trademarks mentioned herein are the property of their respective holders.
VTSS-F
Cautions Regarding Forward Looking Statements
All statements included or incorporated by reference in this release and the related conference call for analysts and investors, other than statements or characterizations of historical fact, are forward-looking statements that are based on our current expectations, estimates and projections about our business and industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” and similar terms, and variations or negatives of these words. Examples of forward-looking statements in this release include the Company’s financial outlook for its fourth fiscal quarter and anticipated long-term revenue growth Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that could affect the Company’s forward-looking statements include, among other things: identification of feasible new product initiatives, management of R&D efforts and the resulting successful development of new products and product platforms; acceptance by customers of the Company’s products; reliance on key suppliers; rapid technological change in the industries in which the Company operates; and competitive factors, including pricing pressures and the introduction by others of new products with similar or better functionality than the Company’s products. These and other risks are more fully described in the Company’s filings with the Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and Quarterly Report on Form 10-Q, which should be read in conjunction herewith for a further discussion of important factors that could cause actual results to differ materially from those in the forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Measures
A non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.
We provide non-GAAP measures of non-GAAP income (loss) from operations and non-GAAP net income (loss) as a supplement to financial results based on GAAP income from operations and GAAP net income. The Company believes that the additional non-GAAP measures are useful to investors for the purpose of financial analysis. We believe the presentation of non-GAAP measures provides investors with additional insight into underlying operating results and prospects for the future by excluding gains, losses and other charges that are considered by management to be outside of the Company’s core operating results. Management uses these measures internally to evaluate the Company’s in-period operating performance before taking into account these non-operating gains, losses and charges. In addition, the measures are used for planning and forecasting of the Company’s performance in future periods.
In deriving non-GAAP income (loss) from operations from GAAP income (loss) from operations, we exclude stock-based compensation charges, amortization of intangible assets, as well as restructuring and impairment charges. In deriving non-GAAP net income (loss) from GAAP net income (loss), we further exclude gain or loss on the embedded derivative. Stock-based compensation charges, amortization of intangible assets and gain or loss on the embedded derivative represent charges that recur in amounts unrelated to the Company’s operations. Restructuring and impairment costs relate to strategic initiatives that result in short term increases in costs that end with the fulfillment of the initiative and cost reductions in future periods.
The non-GAAP financial measures we provide have certain limitations because they do not reflect all of the costs associated with the operation of our business as determined in accordance with GAAP. Non-GAAP income (loss) from operations and Non-GAAP net income (loss) are in addition to, and are not a substitute for or superior to, income (loss) from operations and net income (loss), which are prepared in accordance with GAAP and may be different from non-GAAP measures used by other companies. A detailed reconciliation of the non-GAAP measures to the most directly comparable GAAP measure is set forth below. Investors are encouraged to review these reconciliations to appropriately incorporate the non-GAAP measures and the limitations of these measures into their analyses. For complete information on stock-based compensation, amortization of intangible assets, restructuring and impairment charges, and the change in the fair value of our embedded derivatives, please see our Form 10-Q for the three months ended June 30, 2012.
| VITESSE SEMICONDUCTOR CORPORATION |
| UNAUDITED CONSOLIDATED BALANCE SHEETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
|
|
|
|
September 30, |
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash |
|
|
|
|
|
$ |
20,586 |
|
|
|
|
|
|
$ |
17,318 |
|
|
Accounts receivable, net |
|
|
|
|
|
|
10,724 |
|
|
|
|
|
|
|
9,591 |
|
|
Inventory |
|
|
|
|
|
|
14,796 |
|
|
|
|
|
|
|
20,857 |
|
|
Restricted cash |
|
|
|
|
|
|
92 |
|
|
|
|
|
|
|
404 |
|
|
Prepaid expenses and other current assets |
|
|
|
|
|
|
1,985 |
|
|
|
|
|
|
|
2,039 |
|
|
|
Total current assets |
|
|
|
|
|
|
48,183 |
|
|
|
|
|
|
|
50,209 |
|
|
Property, plant and equipment, net |
|
|
|
|
|
|
4,530 |
|
|
|
|
|
|
|
5,934 |
|
|
Other intangible assets, net |
|
|
|
|
|
|
1,625 |
|
|
|
|
|
|
|
1,781 |
|
|
Other assets |
|
|
|
|
|
|
2,805 |
|
|
|
|
|
|
|
3,070 |
|
|
|
|
|
|
|
|
|
$ |
57,143 |
|
|
|
|
|
|
$ |
60,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
|
|
|
$ |
5,234 |
|
|
|
|
|
|
$ |
5,198 |
|
|
Accrued expenses and other current liabilities |
|
|
|
|
|
|
13,208 |
|
|
|
|
|
|
|
14,463 |
|
|
Deferred revenue |
|
|
|
|
|
|
2,580 |
|
|
|
|
|
|
|
3,878 |
|
|
Current portion of debt and capital leases |
|
|
|
|
|
|
11 |
|
|
|
|
|
|
|
11 |
|
|
|
Total current liabilities |
|
|
|
|
|
|
21,033 |
|
|
|
|
|
|
|
23,550 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term liabilities |
|
|
|
|
|
|
1,518 |
|
|
|
|
|
|
|
1,927 |
|
|
Long-term debt, net |
|
|
|
|
|
|
15,742 |
|
|
|
|
|
|
|
15,444 |
|
|
Compound embedded derivative |
|
|
|
|
|
|
4,023 |
|
|
|
|
|
|
|
7,796 |
|
|
Convertible subordinated debt, net |
|
|
|
|
|
|
42,064 |
|
|
|
|
|
|
|
40,736 |
|
|
|
Total liabilities |
|
|
|
|
|
|
84,380 |
|
|
|
|
|
|
|
89,453 |
|
| Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ deficit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.01 par value: 10,000 shares authorized; Series B Non
Cumulative, Convertible, 135 shares outstanding at June 30, 2012 and
September 30, 2011 |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
1 |
|
|
Common stock, $0.01 par value: 250,000 shares authorized; 25,315 and 24,470
shares outstanding at June 30, 2012 and September 30, 2011, respectively |
|
|
|
|
|
|
253 |
|
|
|
|
|
|
|
245 |
|
|
Additional paid-in-capital |
|
|
|
|
|
|
1,827,977 |
|
|
|
|
|
|
|
1,824,433 |
|
|
Accumulated deficit |
|
|
|
|
|
|
(1,855,468 |
) |
|
|
|
|
|
|
(1,853,138 |
) |
|
|
Total stockholders’ deficit |
|
|
|
|
|
|
(27,237 |
) |
|
|
|
|
|
|
(28,459 |
) |
|
|
|
|
|
|
|
|
$ |
57,143 |
|
|
|
|
|
|
$ |
60,994 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VITESSE SEMICONDUCTOR CORPORATION |
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
Nine Months Ended June 30, |
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
2012 |
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
(in thousands, except per share data) |
| Net revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Product revenues |
|
|
|
|
|
$ |
25,730 |
|
|
|
|
|
$ |
31,856 |
|
|
|
|
|
$ |
81,867 |
|
|
|
|
|
$ |
103,855 |
|
| Intellectual property revenues |
|
|
|
|
|
|
4,557 |
|
|
|
|
|
|
4,132 |
|
|
|
|
|
|
8,148 |
|
|
|
|
|
|
6,772 |
|
| Net revenues |
|
|
|
|
|
|
30,287 |
|
|
|
|
|
|
35,988 |
|
|
|
|
|
|
90,015 |
|
|
|
|
|
|
110,627 |
|
| Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of product revenues |
|
|
|
|
|
|
11,270 |
|
|
|
|
|
|
13,432 |
|
|
|
|
|
|
34,028 |
|
|
|
|
|
|
40,776 |
|
| Engineering, research and development |
|
|
|
|
|
|
10,513 |
|
|
|
|
|
|
12,502 |
|
|
|
|
|
|
32,518 |
|
|
|
|
|
|
41,582 |
|
| Selling, general and administrative |
|
|
|
|
|
|
6,292 |
|
|
|
|
|
|
9,455 |
|
|
|
|
|
|
22,095 |
|
|
|
|
|
|
29,892 |
|
| Restructuring and impairment charges |
|
|
|
|
|
|
4 |
|
|
|
|
|
|
211 |
|
|
|
|
|
|
36 |
|
|
|
|
|
|
554 |
|
| Amortization of intangible assets |
|
|
|
|
|
|
88 |
|
|
|
|
|
|
62 |
|
|
|
|
|
|
234 |
|
|
|
|
|
|
288 |
|
| Costs and expenses |
|
|
|
|
|
|
28,167 |
|
|
|
|
|
|
35,662 |
|
|
|
|
|
|
88,911 |
|
|
|
|
|
|
113,092 |
|
| Income (loss) from operations |
|
|
|
|
|
|
2,120 |
|
|
|
|
|
|
326 |
|
|
|
|
|
|
1,104 |
|
|
|
|
|
|
(2,465 |
) |
| Other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense, net |
|
|
|
|
|
|
1,950 |
|
|
|
|
|
|
1,929 |
|
|
|
|
|
|
5,823 |
|
|
|
|
|
|
6,486 |
|
| Gain on compound embedded derivative |
|
|
|
|
|
|
(5,755 |
) |
|
|
|
|
|
(7,951 |
) |
|
|
|
|
|
(3,773 |
) |
|
|
|
|
|
(2,491 |
) |
| Loss on extinguishment of debt |
|
|
|
|
|
|
– |
|
|
|
|
|
|
– |
|
|
|
|
|
|
– |
|
|
|
|
|
|
3,874 |
|
| Other (income) expense, net |
|
|
|
|
|
|
(20 |
) |
|
|
|
|
|
25 |
|
|
|
|
|
|
21 |
|
|
|
|
|
|
(33 |
) |
| Other (income) expense, net |
|
|
|
|
|
|
(3,825 |
) |
|
|
|
|
|
(5,997 |
) |
|
|
|
|
|
2,071 |
|
|
|
|
|
|
7,836 |
|
| Income (loss) before income tax expense |
|
|
|
|
|
|
5,945 |
|
|
|
|
|
|
6,323 |
|
|
|
|
|
|
(967 |
) |
|
|
|
|
|
(10,301 |
) |
| Income tax expense (benefit) |
|
|
|
|
|
|
1,234 |
|
|
|
|
|
|
(227 |
) |
|
|
|
|
|
1,363 |
|
|
|
|
|
|
(78 |
) |
| Net Income (loss) |
|
|
|
|
|
$ |
4,711 |
|
|
|
|
|
$ |
6,550 |
|
|
|
|
|
$ |
(2,330 |
) |
|
|
|
|
$ |
(10,223 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income (loss) per common share – basic |
|
|
|
|
|
$ |
0.18 |
|
|
|
|
|
$ |
0.26 |
|
|
|
|
|
$ |
(0.09 |
) |
|
|
|
|
$ |
(0.42 |
) |
| Net income (loss) per common share – diluted |
|
|
|
|
|
$ |
0.16 |
|
|
|
|
|
$ |
0.21 |
|
|
|
|
|
$ |
(0.09 |
) |
|
|
|
|
$ |
(0.42 |
) |
| Weighted average common shares outstanding – basic |
|
|
|
|
|
|
25,302 |
|
|
|
|
|
|
24,447 |
|
|
|
|
|
|
24,951 |
|
|
|
|
|
|
24,266 |
|
| Weighted average common shares outstanding – diluted |
|
|
|
|
|
|
38,413 |
|
|
|
|
|
|
37,543 |
|
|
|
|
|
|
24,951 |
|
|
|
|
|
|
24,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| VITESSE SEMICONDUCTOR CORPORATION |
| UNAUDITED RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
Nine Months Ended June 30, |
|
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
2012 |
|
|
|
|
|
|
|
2011 |
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
| GAAP net income (loss) |
|
|
|
|
|
|
$ |
4,711 |
|
|
|
|
|
|
$ |
6,550 |
|
|
|
|
|
|
$ |
(2,330 |
) |
|
|
|
|
|
$ |
(10,223 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation charges |
|
|
|
|
|
|
|
1,092 |
|
|
|
|
|
|
|
926 |
|
|
|
|
|
|
|
3,301 |
|
|
|
|
|
|
|
2,534 |
|
| Amortization of intangible assets |
|
|
|
|
|
|
|
88 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
234 |
|
|
|
|
|
|
|
288 |
|
| Restructuring and impairment charges |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
211 |
|
|
|
|
|
|
|
36 |
|
|
|
|
|
|
|
554 |
|
| Gain on compound embedded derivative |
|
|
|
|
|
|
|
(5,755 |
) |
|
|
|
|
|
|
(7,951 |
) |
|
|
|
|
|
|
(3,773 |
) |
|
|
|
|
|
|
(2,491 |
) |
| Loss on extinguishment of debt |
|
|
|
|
|
|
|
– |
|
|
|
|
|
|
|
– |
|
|
|
|
|
|
|
– |
|
|
|
|
|
|
|
3,874 |
|
| Total GAAP to non-GAAP adjustments |
|
|
|
|
|
|
|
(4,571 |
) |
|
|
|
|
|
|
(6,752 |
) |
|
|
|
|
|
|
(202 |
) |
|
|
|
|
|
|
4,759 |
|
| Non-GAAP net income (loss) |
|
|
|
|
|
|
$ |
140 |
|
|
|
|
|
|
$ |
(202 |
) |
|
|
|
|
|
$ |
(2,532 |
) |
|
|
|
|
|
$ |
(5,464 |
) |
| Net income (loss) per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) |
|
|
|
|
|
|
$ |
0.18 |
|
|
|
|
|
|
$ |
0.26 |
|
|
|
|
|
|
$ |
(0.09 |
) |
|
|
|
|
|
$ |
(0.42 |
) |
| Adjustments * |
|
|
|
|
|
|
|
(0.18 |
) |
|
|
|
|
|
|
(0.28 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
|
|
0.20 |
|
| Non-GAAP net income (loss) |
|
|
|
|
|
|
$ |
– |
|
|
|
|
|
|
$ |
(0.02 |
) |
|
|
|
|
|
$ |
(0.10 |
) |
|
|
|
|
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP net income (loss) |
|
|
|
|
|
|
$ |
0.16 |
|
|
|
|
|
|
$ |
0.26 |
|
|
|
|
|
|
$ |
(0.09 |
) |
|
|
|
|
|
$ |
(0.42 |
) |
| Adjustments * |
|
|
|
|
|
|
|
(0.16 |
) |
|
|
|
|
|
|
(0.28 |
) |
|
|
|
|
|
|
(0.01 |
) |
|
|
|
|
|
|
0.20 |
|
| Non-GAAP net income (loss) |
|
|
|
|
|
|
$ |
– |
|
|
|
|
|
|
$ |
(0.02 |
) |
|
|
|
|
|
$ |
(0.10 |
) |
|
|
|
|
|
$ |
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| UNAUDITED RECONCILIATION OF GAAP INCOME (LOSS) FROM OPERATIONS |
| TO NON-GAAP INCOME FROM OPERATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP income (loss) from operations |
|
|
|
|
|
|
$ |
2,120 |
|
|
|
|
|
|
$ |
326 |
|
|
|
|
|
|
$ |
1,104 |
|
|
|
|
|
|
$ |
(2,465 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation charges |
|
|
|
|
|
|
|
1,092 |
|
|
|
|
|
|
|
926 |
|
|
|
|
|
|
|
3,301 |
|
|
|
|
|
|
|
2,534 |
|
| Amortization of intangible assets |
|
|
|
|
|
|
|
88 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
234 |
|
|
|
|
|
|
|
288 |
|
| Restructuring and impairment charges |
|
|
|
|
|
|
|
4 |
|
|
|
|
|
|
|
211 |
|
|
|
|
|
|
|
36 |
|
|
|
|
|
|
|
554 |
|
| Total GAAP to non-GAAP adjustments |
|
|
|
|
|
|
|
1,184 |
|
|
|
|
|
|
|
1,199 |
|
|
|
|
|
|
|
3,571 |
|
|
|
|
|
|
|
3,376 |
|
| Non-GAAP income from operations |
|
|
|
|
|
|
$ |
3,304 |
|
|
|
|
|
|
$ |
1,525 |
|
|
|
|
|
|
$ |
4,675 |
|
|
|
|
|
|
$ |
911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * Included in the adjustments are calculations required by the two class method relative to participation rights of our preferred shares. |
TARRYTOWN, NY — (Marketwire) — 08/07/12 — SPAR Group, Inc. (NASDAQ: SGRP) (the “Company” or “SPAR Group”), a leading supplier of retail merchandising and other marketing services throughout the United States and internationally, today announced second quarter 2012 financial results, including revenue of $24.3 million, gross profit of $6.7 million and net income attributable to SPAR Group, Inc. of $718,000. In the first six months of 2012 the Company achieved revenue of $45.4 million, gross profit of $12.5 million and diluted earnings per share of $0.05.
Company Highlights
- Second quarter 2012 domestic net income increased 66% to $928,000.
- Second quarter consolidated net income attributable to SPAR Group, Inc. increased 41% to $0.03 per diluted share.
- Consolidated revenue for the first six months of 2012 increased 40% to $45.4 million.
- Consolidated net income attributable to SPAR Group, Inc. for the first six months of 2012 increased 35% to $1.0 million.
- Working capital continued to improve.
“We are pleased by the 35% growth in our net income for the first six months of 2012, based on the success we experienced in our domestic operations,” stated Gary Raymond, Chief Executive Officer of SPAR Group. “We are currently in discussions with several Fortune 500 companies and expect to secure additional contracts that will augment our rapidly escalating revenue base and net income. The Company is confident that we have successfully implemented our long-term plan to reposition the Company for sustained, profitable growth for the foreseeable future. Our first six months results provide us with confidence in meeting our 2012 guidance of $90 million in revenue.”
Mr. Raymond continued, “Our international division’s net revenue grew by 105% in the second quarter based on strong growth from recent acquisitions in Mexico, Romania and Turkey. These additions provide proof of efficacy in our acquisition model. We have identified several potential acquisition candidates that could provide immediate earnings to our bottom-line. Our financial growth is typically the strongest during the second half of the year, and we fully expect that trend to persist in 2012.”
Financial Results for the three and six month periods ended June 30, 2012 and 2011
For the Three Months Ended For the Six Months Ended June
June 30, 30,
Change Change
-------------- -------------
2012 2011 $ % 2012 2011 $ %
------- ------- ------- ------ ------- ------- -------------
Net Revenue:
Domestic $10,881 $ 9,367 $ 1,514 16% $20,166 $18,889 $ 1,277 7%
International 13,462 6,577 6,885 105% 25,224 13,474 11,750 87%
------- ------- ------- ------- ------- -------
Total $24,343 $15,944 $ 8,399 53% $45,390 $32,363 $13,027 40%
Gross Profit:
Domestic $ 3,744 $ 2,930 $ 814 28% $ 6,704 $ 6,208 $ 496 8%
International 2,964 2,027 937 46% 5,773 3,985 1,788 45%
------- ------- ------- ------- ------- -------
Total $ 6,708 $ 4,957 $ 1,751 35% $12,477 $10,193 $ 2,284 22%
Net Income attributable to SPAR Group, Inc.:
Domestic $ 928 $ 560 $ 368 66% $ 1,190 $ 1,059 $ 131 12%
International (210) (51) (159) (312)% (165) (297) 132 44%
------- ------- ------- ------- ------- -------
Total $ 718 $ 509 $ 209 41% $ 1,025 $ 762 $ 263 35%
Earnings per Diluted Share:
$ 0.03 $ 0.02 $ 0.01 $ 0.05 $ 0.04 $ 0.01
Consolidated net revenue for the three and six month periods ended June 30, 2012 increased 53% and 40%, respectively, when compared to the same periods in 2011. The increases in net revenue were primarily due to our new subsidiaries in Mexico, Romania and Turkey and strong performances in South Africa and Japan combined with continued growth in our domestic operations resulting from new client initiatives and continued organic growth from our syndicated service and assembly businesses.
Consolidated gross profit for the three and six month periods ended June 30, 2012 increased 35% and 22%, respectively, when compared to the prior year due primarily to our international expansion efforts and improved margins in our domestic operations.
Net income attributable to SPAR Group, Inc. increased 41% and 35% for the three and six month periods ended June 30, respectively, when compared to the same period a year ago. The increase for the three month period ended June 30, 2012 was driven by a 66% increase in domestic operations while international net income declined for the same period primarily due to margin pressure in our Canadian market. The improvement in net income for the six month period ended June 30, 2012 was equally attributed to the improved performances in both the domestic and international divisions.
Balance Sheet as of June 30, 2012
As of June 30, 2012 our working capital improved to $8.2 million and our current ratio was to 1.7 to 1. Total current assets and total assets were $19.8 million and $23.5 million, respectively, and cash and cash equivalents totaled $1.7 million at June 30, 2012. Total current liabilities and total liabilities were $11.5 million and $11.9 million, respectively and total equity was $10.5 million at June 30, 2012.
The Company currently plans to file its Quarterly Report on Form 10-Q with the Securities and Exchange Commission on or before August 10, 2012 and to host a shareholder conference call on August 13, 2012 at 11:00 a.m. eastern daylight time.
About SPAR Group
SPAR Group, Inc. is a diversified international merchandising and marketing services company and provides a broad array of services worldwide to help companies improve their sales, operating efficiency and profits at retail locations. The Company provides merchandising and other marketing services to manufacturers, distributors and retailers worldwide, primarily in mass merchandisers, office supply, grocery and drug store chains, independent, convenience and electronics stores, as well as providing furniture and other product assembly services, in-store events, radio frequency identification (“RFID”) and related technology services and marketing research. The Company has supplied these project and product services in the United States since certain of its predecessors were formed in 1979 and internationally since the Company acquired its first international subsidiary in Japan in May of 2001. Product services include product additions; placement, reordering, replenishment, labeling, evaluation and deletions, and project services include seasonal and special product promotions, product recalls and complete setups of departments and stores. The Company operates throughout the world in 10 of the most populated countries, including China and India. For more information, visit the SPAR Group’s Web site at http://www.sparinc.com/.
Certain statements in this news release and such conference call are forward-looking, including (without limitation) expectations or guidance respecting customer contract expansion, increasing revenues, profits and earnings per share, through organic growth and acquisitions, attracting new business that will increase SPAR Group’s revenues, continuing to maintain costs and consummating any acquisitions or other transactions. Undue reliance should not be placed on such forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the Company’s control. The Company’s actual results, performance and trends could differ materially from those indicated or implied by such statements as a result of various factors, including (without limitation) the continued strengthening of SPAR Group’s selling and marketing functions, continued customer satisfaction and contract renewal, new product development, continued availability of capable dedicated personnel, continued cost management, the success of its international efforts, success and availability of acquisitions, availability of financing and other factors, as well as by factors applicable to most companies such as general economic, competitive and other business and civil conditions. Information regarding certain of those and other risk factors and cautionary statements that could affect future results, performance or trends are discussed in SPAR Group’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings made with the Securities and Exchange Commission from time to time. All of the Company’s forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
SPAR Group, Inc.
Consolidated Statements of Income and Comprehensive Income
(unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------- -----------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------
Net revenues $ 24,343 $ 15,944 $ 45,390 $ 32,363
Cost of revenues 17,635 10,987 32,913 22,170
----------- ----------- ----------- -----------
Gross profit 6,708 4,957 12,477 10,193
Selling, general, and
administrative expense 5,634 4,137 10,655 8,711
Depreciation and
amortization 293 265 570 528
----------- ----------- ----------- -----------
Operating income 781 555 1,252 954
Interest expense 12 24 63 106
Other expense (income) 75 (2) (7) 7
----------- ----------- ----------- -----------
Income before provision for
income taxes 694 533 1,196 841
Provision for income taxes 58 29 101 53
----------- ----------- ----------- -----------
Net income 636 504 1,095 788
Net loss (income)
attributable to the non-
controlling interest 82 5 (70) (26)
----------- ----------- ----------- -----------
Net income attributable to
SPAR Group, Inc. $ 718 $ 509 $ 1,025 $ 762
=========== =========== =========== ===========
Net income per
basic/diluted common
share:
Net income - basic $ 0.04 $ 0.03 $ 0.05 $ 0.04
=========== =========== =========== ===========
Net income -diluted $ 0.03 $ 0.02 $ 0.05 $ 0.04
=========== =========== =========== ===========
Weighted average common
shares - basic 20,134 20,012 20,125 19,826
=========== =========== =========== ===========
Weighted average common
shares - diluted 22,320 21,656 22,306 21,387
=========== =========== =========== ===========
Net income $ 636 $ 504 $ 1,095 $ 788
Other comprehensive income:
Foreign currency
translation adjustments (153) 2 (195) 25
----------- ----------- ----------- -----------
Comprehensive income $ 483 $ 506 $ 900 $ 813
=========== =========== =========== ===========
SPAR Group, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
June 30, December 31,
2012 2011
------------- -------------
Assets (unaudited) (note)
Current assets:
Cash and cash equivalents $ 1,722 $ 1,705
Accounts receivable, net 17,344 15,461
Prepaid expenses and other current assets 701 801
------------- -------------
Total current assets 19,767 17,967
Property and equipment, net 1,724 1,523
Goodwill 1,148 1,148
Intangibles 637 705
Other assets 261 178
------------- -------------
Total assets $ 23,537 $ 21,521
============= =============
Liabilities and equity
Current liabilities:
Accounts payable $ 3,220 $ 1,819
Accrued expenses and other current
liabilities 5,035 4,039
Accrued expense due to affiliates 1,600 1,092
Customer deposits 424 183
Lines of credit 1,246 3,641
------------- -------------
Total current liabilities 11,525 10,774
Long-term debt and other liabilities 375 334
------------- -------------
Total liabilities 11,900 11,108
Equity:
SPAR Group, Inc. equity
Preferred stock, $.01 par value:
Authorized and available shares -
2,445,598
Issued and outstanding shares -
None - June 30, 2012
None - December 31, 2011 - -
Common stock, $.01 par value:
Authorized shares - 47,000,000
Issued and outstanding shares -
20,136,418 - June 30, 2012
20,103,043 - December 31, 2011 201 201
Additional paid-in capital 14,225 13,940
Accumulated other comprehensive loss (367) (172)
Accumulated deficit (3,601) (4,626)
------------- -------------
Total SPAR Group, Inc. equity 10,458 9,343
Non-controlling interest 1,179 1,070
------------- -------------
Total liabilities and equity $ 23,537 $ 21,521
============= =============
Note: The Balance Sheet at December 31, 2011, is excerpted from the consolidated audited financial statements as of that date but does not include certain information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
Contact:
James R. Segreto
Chief Financial Officer
SPAR Group, Inc.
(914) 332-4100
Investors:
Alan Sheinwald
Alliance Advisors, LLC
(212) 398-3486
Email Contact
Chris Camarra
Alliance Advisors, LLC
(212) 398-3487
LOS ANGELES, CA — (Marketwire) — 08/07/12 — Seven Arts Entertainment Inc. (NASDAQ: SAPX) (“Seven Arts” or the “Company”) announced today that its Board of Directors has authorized the adoption of a Stock Repurchase Program, pursuant to which the Company may repurchase up to $250,000 of its currently outstanding common stock at prevailing market prices up to $.10, as adjusted for any stock split. The time period during which the repurchasing activities may occur will be dependent on future market volume, but is expected to start immediately and continue through October 31, 2012. The Stock Repurchase Program is subject to various trading restrictions as established in Rule 10(b)-18 of the Securities Exchange Act of 1934.
CEO Peter Hoffman stated: “Management is aware of concerns of shareholders regarding the heavy selling of Seven Arts common stock and the potential effects on that selling of Seven Arts’ previously announced program of converting its debt into equity. Management believes that this selling volume is far in excess of the number of new shares issued in debt conversion and that much selling pressure is the result of market strategies or manipulation, including substantial short selling as reflected in the failure to deliver chart. In response to those concerns, management has set aside and intends to further set aside from Seven Arts’ expected tax credit collections up to $250,000 to provide bid support of our common stock up to $.10. Management continues to believe that those market participants ‘betting against’ Seven Arts will be disproven by financial results, which is the only viable long term strategy to defend against widespread manipulation and short term trading activities, and we believe such results will be forthcoming.”
Management believes that the Seven Arts’ debt conversion program has substantially strengthened the Company and prepared it for future growth. Seven Arts’ shareholders equity is now estimated to be in excess of $25 million.
About Seven Arts Entertainment Inc.:
Seven Arts Entertainment Inc. is the successor to Seven Arts Pictures Plc, which was founded in 2002 as an independent motion picture production and distribution company engaged in the development, acquisition, financing, production and licensing of theatrical motion pictures for exhibition in domestic (i.e., the United States and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video and pay and free television.
Cautionary Information Regarding Forward-Looking Statements.
Forward-looking statements contained in this press release are made under the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the anticipated.
Contact:
Seven Arts Entertainment Inc.
Peter Hoffman
323-372-3080
phoffman@7artspictures.com
DENVER, Aug. 6, 2012 /PRNewswire/ – Augusta Resource Corporation (TSX/NYSE MKT: AZC) (“Augusta” or “the Company”) is pleased to announce that the Arizona Department of Environmental Quality (“ADEQ”) has asserted complete jurisdiction over Rosemont Copper’s (“Rosemont”) Air Quality Permit due to the confusion and uncertainty caused by the inappropriate denial of Rosemont’s Air Quality Permit application by the Pima County Department of Environmental Quality. Rosemont has thereby received the draft Air Quality Permit from the ADEQ.
ADEQ’s Air Quality Permit will ensure that Rosemont meets all federal, state and local requirements by operating with enhanced emissions controls at the mine site. The public comment period, which commences today, will be 60 days and will end on October 9, 2012. Soon after the conclusion of the public comment period, the final Air Quality Permit will be issued for Rosemont.
“We are happy to see the Air Quality Permit process continue to advance and have the ADEQ officially issue the draft permit,” said Rod Pace, Augusta’s Chief Operating Officer. “The ADEQ will give Rosemont regulatory certainty and specific timeframes that were lacking in the Pima County permitting process. The ADEQ has handled our application since the initial submission in November 2011 in a professional and consistent manner.”
ABOUT AUGUSTA
Augusta is a base metals company focused on advancing the Rosemont Copper deposit near Tucson, Arizona. Rosemont hosts a large copper/molybdenum reserve that would account for about 10% of US copper output once in production (for details refer to www.augustaresource.com). The exceptional experience and strength of Augusta’s management team, combined with the developed infrastructure and robust economics of the Rosemont project, propels Augusta to becoming a solid mid-tier copper producer. The Company trades on the Toronto Stock Exchange and the NYSE MKT under the symbol AZC.
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING INFORMATION
Certain of the statements made and information contained herein may contain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws. Such forward-looking statements and forward-looking information include, but are not limited to statements concerning: expectations surrounding future project financings or refinancing; the Company’s plans at the Rosemont Project including timing for final permits and construction; estimated production; and capital and operating and cash flow estimates. Forward-looking statements or information include statements regarding the expectations and beliefs of management. Often, but not always, forward-looking statements and forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negatives thereof or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements or information are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements or information, including, without limitation, risks and uncertainties relating to: history of losses; requirements for additional capital; dilution; loss of its material properties; interest rates increase; global economy; no history of production; speculative nature of exploration activities; periodic interruptions to exploration, development and mining activities; environmental hazards and liability; industrial accidents; failure of processing and mining equipment; labour disputes; supply problems; commodity price fluctuations; uncertainty of production and cost estimates; the interpretation of drill results and the estimation of mineral resources and reserves; legal and regulatory proceedings and community actions; title matters; regulatory restrictions; permitting and licensing; volatility of the market price of Common Shares; insurance; competition; hedging activities; currency fluctuations; loss of key employees; as well as those factors discussed in the section entitled “Risk Factors” in the Company’s Annual Information Form dated March 19, 2012. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements or information. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. The Company disclaims any intent or obligation to update forward-looking statements or information except as required by law, and you are referred to the full discussion of the Company’s business contained in the Company’s reports filed with the securities regulatory authorities in Canada and the United States.
Players Encouraged to Play Popular Zynga Games Draw Something and Words With Friends to Support Local Schools
UNIVERSAL CITY, Calif., Aug. 6, 2012 /PRNewswire/ — Today, Universal Studios Home Entertainment and Zynga announced a first-time partnership to commemorate the highly anticipated debut of Dr. Seuss’ The Lorax on Blu-ray™ & DVD on August 7th. Starting today, this week-long in-game integration brings one of the year’s top animated films to Zynga’s popular games Draw Something and Words With Friends to benefit local schools across the United States.
A popular Dr. Seuss Book and character that made over $200M at the domestic box office as a major animated motion picture this past spring, Dr. Seuss’ The Lorax, will appear as a subject to be drawn in Draw Something. Players will also be provided a free Dr. Suess’ The Lorax color palette, typically earned through credits or purchased by the player, to be used in all game play. Additionally, Words With Friends will feature special Dr. Seuss’ The Lorax words to play during the promotion.
“Both games are highly engaging and accentuate three key attributes that fans like most about the movie; fun and clever word play mixed with vibrant colorful animation,” noted Joe Eibert, Vice President of Digital Marketing for Universal Studios Home Entertainment.
In-game prompts in both games will encourage players to go to www.loraxsweeps.com for chances to win gift cards and other special prizes including Dr. Seuss books to be donated to a school of their choice.
After launching in February 2012, Draw Something quickly and organically grew to become an international hit. The game is built for collaboration between friends — one player draws a picture of a chosen word and the other must guess the word correctly before taking their turn at drawing. Players earn coins by guessing pictures correctly and can earn new shades of color to draw even brighter, more eye-popping pictures. Draw Something recently launched in 12 additional languages.
Words With Friends is a word building game that challenges players to create the highest-scoring words while playing against family and friends or random opponents. Players can be engaged in up to 20 games at once and are able to communicate with each other through an in-game chat feature. Words With Friends is a part of the With Friends franchise of mobile social games by Zynga.
Dr. Seuss’ The Lorax sweepstakes site will encourage visitors to play Draw Something and Words With Friends to enjoy The Lorax in all new ways. The promotion is the first in-game integration to run in two Zynga mobile games simultaneously.
Dr. Seuss’ The Lorax promotion in both games will kick-off August 5th and run through August 12th, including a Draw Something Takeover, Tuesday, August 7th.
About Dr. Seuss’ The Lorax
The imaginative world of Dr. Seuss comes to life like never before in this visually spectacular adventure from the creators of Despicable Me! Twelve-year-old Ted will do anything to find a real live Truffula Tree in order to impress the girl of his dreams. As he embarks on his journey, Ted discovers the incredible story of the Lorax, a grumpy but charming creature who speaks for the trees. Featuring the voice talents of Danny DeVito, Ed Helms, Zac Efron, Taylor Swift, Rob Riggle, Jenny Slate and Betty White, Dr. Seuss’ The Lorax is filled with hilarious fun for everyone!
Dr. Seuss’ The Lorax is the third feature created by Universal Pictures and Illumination Entertainment (Despicable Me, Hop).
For more information, please visit www.theloraxmovie.com.
About Universal Studios Home Entertainment
In honor of its Centennial anniversary, Universal Pictures proudly salutes 100 years of unforgettable films that have entertained audiences and touched the hearts of millions around the globe. In celebration of its first 100 years, Universal Studios Home Entertainment is proud to present a selection of its many beloved movies as part of an extensive year-long program that underscores the studio’s rich cinematic history and indelible cultural impact.
Universal Studios Home Entertainment is a unit of Universal Pictures, a division of Universal Studios (www.universalstudios.com). Universal Studios is a part of NBCUniversal, one of the world’s leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience. NBCUniversal owns and operates a valuable portfolio of news and entertainment television networks, a premier motion picture company, significant television production operations, a leading television stations group and world-renowned theme parks. Comcast Corporation owns a controlling 51% interest in NBCUniversal, with GE holding a 49% stake.
About Zynga Inc.
Zynga Inc. (NASDAQ: ZNGA) is the world’s leading provider of social game services with more than 305 million monthly active users playing its games, which include FarmVille, Words With Friends, Matching With Friends, Scramble With Friends, The Ville, Bubble Safari, Ruby Blast, Draw Something, Zynga Slingo, CastleVille, CityVille, Hidden Chronicles, Zynga Poker, Zynga Bingo, Zynga Slots, Empires & Allies, The Pioneer Trail, and Mafia Wars. Zynga’s games are available on a number of global platforms, including Facebook, Zynga.com, Google+, Tencent, Apple iOS and Google Android. Through Zynga.org, Zynga players have raised more than $10 million for world social causes. Zynga is headquartered in San Francisco, Calif.
CONTACTS
Universal Studios Home Entertainment
Lea Porteneuve
lea.porteneuve@nbcuni.com
(818) 777-1391
Evan Fong
Evan.fong@nbcuni.com
(818) 777-5540
CONTACTS
Zynga
Michelle Kramer
mkramer@zynga.com
415-519-6645
NeuroMetrix, Inc. (Nasdaq: NURO), www.neurometrix.com, a medical device company focused on the diagnosis and treatment of the neurological complications of diabetes, announced that it has received 510(k) clearance for its SENSUS Pain Management device from the U.S. Food and Drug Administration (FDA). This regulatory determination by the FDA gives NeuroMetrix clearance to market the SENSUS device in the U.S. market. The device is intended for use as a transcutaneous electrical nerve stimulator for the symptomatic relief and management of chronic intractable pain.
“This product has attracted attention among health care providers because of its potential benefit to patients suffering from chronic pain,” said Shai N. Gozani M.D., Ph.D., President and Chief Executive Officer of NeuroMetrix. “FDA clearance keeps us on track to launch the SENSUS Pain Management System in the fourth quarter of 2012. We are particularly enthusiastic about adoption of the device by diabetes focused clinicians because a number of recent systematic literature reviews and meta-analyses have concluded that transcutaneous electrical nerve stimulation may be an effective and safe treatment for painful diabetic neuropathy.”
About NeuroMetrix
NeuroMetrix is an innovative medical device company that develops and markets home use and point-of-care devices, associated consumables, and support software for the treatment and management of diabetes and its complications. The company is focused on nerve related complications of diabetes, called diabetic neuropathies, which affect over 50% of people with diabetes. If left untreated, diabetic neuropathies trigger foot ulcers that may require amputation, cause disabling chronic pain, and increase the risk of falling in the elderly. The annual cost of diabetic neuropathies has been estimated at $14 billion in the United States. The company’s products are used by physicians and other clinicians, in retail health settings such as pharmacies, and by managed care organizations to optimize patient care and reduce healthcare costs. The company markets the NC-stat® DPNCheck™ device, which is a rapid, accurate, and quantitative point-of-care test for diabetic neuropathy. This product is used to detect diabetic neuropathy at an early stage and to guide treatment. The company is in late stage development of SENSUS™, a pain management device. The company has additional therapeutic products in its pipeline. For more information, please visit http://www.neurometrix.com.
ATLANTA, GA — (Marketwire) — 08/06/12 — MissionIR today announces that its Inside Track video interview with Don Johnston, the Chief Executive Officer of SEFE, Inc. (OTCBB: SEFE), is now available online. The interview, complete with on-site footage, can be viewed at http://sefe.missionir.com/sefe/video-interview.html.
Mr. Johnston provided a brief overview of his background and responsibilities, the business model employed, key individuals comprising the development team, and the company’s dedication to protecting concepts and innovations with patents. He also discussed the green energy market and its place as the fastest growing sector of the utilities market.
“Our concepts are sound and we’re protecting them,” Mr. Johnston stated in the interview. “We want to make sure that we deploy our capital wisely to maximize the amount of revenue the company will ultimately generate. Our team is trying to do something that no one else has tried, and we’re making headway each and every month.”
About SEFE, Inc.
SEFE focuses on pushing the boundaries of what’s possible, embracing innovation and employing the cutting-edge to solve problems, and offering sustainable solutions to a world hungry for invention, direction and leadership. SEFE is technology- and solutions-driven, focusing on developing inventions that provide a real-world impact and true profitability. So, success is measured by both a sustainable return on investment, as well as a project’s sustainability from an environmental perspective.
For more information, visit www.SEFElectric.com
About MissionIR
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
To sign up for The MissionIR Report, please visit http://www.MissionIR.com
To connect with MissionIR via Facebook, please visit http://www.Facebook.com/MissionIR
To connect with MissionIR via Twitter, please visit http://www.Twitter.com/MissionIR
Please read FULL disclaimer on the MissionIR website: http://Disclaimer.MissionIR.com
Forward-Looking Statement:
This release may 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. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company’s actual results to differ materially from those indicated in any forward-looking statements.
Contact:
SEFE, Inc.
Justin Ackerman
714-495-1927
ir@sefelectric.com
Mission Investor Relations
Atlanta, Georgia
www.MissionIR.com
404-941-8975
