$ in thousands | 3 Months Ended | ||||||||||
(except per share data) | Change | ||||||||||
Revenues | $ | 6,942 | $ | 7,269 | -4.5 | % | |||||
Gross profit | $ | 3,138 | $ | 2,877 | 9.1 | % | |||||
Gross margin | 45.2 | % | 39.6 | % | 560 bps | ||||||
Net income (loss) | $ | (67 | ) | $ | (674 | ) | NM* | ||||
Adjusted EBITDA ** | $ | 1,128 | $ | 211 | 434.6 | % |
* NM – Not meaningful
** The Company views Adjusted EBITDA as an important measure in its analysis of the Company’s business because it presents a view of the Company’s performance on an ongoing basis without regard to capital structure, capital investment cycles and corresponding ages of related assets among comparable companies. A more detailed description of Adjusted EBITDA and a reconciliation to GAAP net income (loss) is contained later in this release.
About
Forward-Looking Statements
This press release includes forward-looking statements, including statements concerning anticipated future financial results. These forward-looking statements are based upon management’s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of the Company and which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to: the effect of regional and global economic and industrial market conditions including our expectations concerning their impact on the markets we serve; the effect of conditions in the financial and credit markets and their impact on the Company and our customers and suppliers; the impact of the Company’s cost reduction initiatives; the Company’s ability to
execute its business plan to meet its sales, operating income, cash flow and capital expenditure guidance; the impact on the Company’s gross profit margins as a result of changes in product mix; the Company’s vulnerability to industry conditions and competition; the effect of any interruption in the Company’s supply of raw materials or a substantial increase in the price of raw materials; ongoing capital expenditures and investment in research and development; compliance with any changes in government regulations and environmental and health and safety laws; the effect on the Company’s international operations of unexpected changes in legal and regulatory requirements, export restrictions, currency controls, tariffs and other trade barriers, difficulties in staffing and managing foreign operations, political and economic instability, difficulty in accounts receivable collection and
potentially adverse tax consequences; the effect of foreign currency exchange rates as the Company’s non-U.S. sales continue to increase; reliance for a significant portion of the Company’s total revenues on a limited number of large organizations and the continuity of business relationships with major customers; the loss of key personnel; the nature and extent of military operations being conducted by customers.
Actual results and events may differ significantly from those projected in the forward-looking statements. Reference is made to
The footnotes and other disclosures contained in the Company’s annual report on Form 10-K, its quarterly reports on Form 10-Q, and other periodic filings are an integral part of its financial statements and should be read in conjunction with any review of its financial statements.
Condensed Consolidated Statements of Comprehensive Loss | |||||||||
(in thousands, except shares and per share information) | |||||||||
For the Three | For the Three | ||||||||
Months Ended | Months Ended | ||||||||
Revenues | $ | 6,942 | $ | 7,269 | |||||
Cost of revenues | 3,804 | 4,392 | |||||||
Gross profit | 3,138 | 2,877 | |||||||
Other expenses (income): | |||||||||
Sales and marketing | 546 | 954 | |||||||
General and administrative | 1,574 | 1,919 | |||||||
Research and development | 312 | 375 | |||||||
Interest expense, net | 503 | 513 | |||||||
Interest expense – related party | 63 | 106 | |||||||
Amortization of intangible assets | 239 | 496 | |||||||
Change in warrant liability fair value | 20 | (947 | ) | ||||||
Other (income) expenses, net | (137 | ) | 61 | ||||||
Total other expenses, net | 3,120 | 3,477 | |||||||
Income (loss) before income taxes | 18 | (600 | ) | ||||||
Provision for income taxes | 85 | 74 | |||||||
Net loss | (67 | ) | (674 | ) | |||||
Other comprehensive loss, net of tax: | |||||||||
Foreign currency translation adjustments | (341 | ) | (8 | ) | |||||
Other comprehensive loss | (341 | ) | (8 | ) | |||||
Comprehensive loss | $ | (408 | ) | $ | (682 | ) | |||
Net loss | $ | (67 | ) | $ | (674 | ) | |||
Series A convertible preferred stock dividends | (135 | ) | (120 | ) | |||||
Series C preferred stock dividends | (62 | ) | 0 | ||||||
Loss available to common stockholders – basic and diluted | $ | (264 | ) | $ | (794 | ) | |||
Loss per common share: | |||||||||
Basic and diluted | (0.01 | ) | (0.04 | ) | |||||
Weighted average shares used to compute net loss per common share: | |||||||||
Basic and diluted | 21,400,244 | 21,004,592 | |||||||
Condensed Consolidated Balance Sheets | |||||||||
(in thousands, except shares and per share information) | |||||||||
2015 |
2014 |
||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash | $ | 1,343 | $ | 2,358 | |||||
Accounts receivable, net of allowance for doubtful accounts of |
3,508 | 3,622 | |||||||
Inventories, net | 8,506 | 7,826 | |||||||
Prepaid expenses and other current assets | 813 | 648 | |||||||
Total current assets | 14,170 | 14,454 | |||||||
Property, plant and equipment, net | 6,955 | 7,120 | |||||||
Goodwill | 7,992 | 7,992 | |||||||
Other intangible assets, net | 6,294 | 6,591 | |||||||
Other noncurrent assets | 32 | 18 | |||||||
Total assets | $ | 35,443 | $ | 36,175 | |||||
Liabilities and Stockholders’ (Deficit) Equity | |||||||||
Current liabilities: | |||||||||
Line of credit | $ | 900 | $ | 2,050 | |||||
Current portion of notes payable | 982 | 5,775 | |||||||
Accounts payable | 3,021 | 2,144 | |||||||
Accrued expenses | 2,777 | 2,690 | |||||||
Deferred revenue and deferred rent | 187 | 181 | |||||||
Income taxes payable | 710 | 644 | |||||||
Capital lease obligation | 3 | 7 | |||||||
Warrant liability | 45 | 25 | |||||||
Total current liabilities | 8,625 | 13,516 | |||||||
Notes payable, net of current portion | 14,749 | 10,214 | |||||||
Note payable due to related parties | 2,100 | 2,100 | |||||||
Deferred income taxes | 368 | 430 | |||||||
Asset retirement obligation | 206 | 204 | |||||||
Legal obligation | 2,781 | 2,781 | |||||||
Other noncurrent liabilities | 69 | 78 | |||||||
Total liabilities | 28,898 | 29,323 | |||||||
Commitments and contingencies | |||||||||
Series C preferred stock, |
2,165 | 2,103 | |||||||
Series A convertible preferred stock, |
4,699 | 4,564 | |||||||
Stockholders’ (deficit) equity: | |||||||||
Series B convertible preferred stock, |
1,401 | 1,401 | |||||||
Common stock, |
21 | 21 | |||||||
Additional paid-in capital | 102,918 | 103,014 | |||||||
Accumulated deficit | (103,657 | ) | (103,590 | ) | |||||
Accumulated other comprehensive loss | (1,002 | ) | (661 | ) | |||||
Total stockholders’ (deficit) equity | (319 | ) | 185 | ||||||
Total liabilities and stockholders’ (deficit) equity | $ | 35,443 | $ | 36,175 | |||||
Adjusted EBITDA (a Non-GAAP Financial Measure)
losses and one-time income or expense items,
GAAP or as a measure of our liquidity or financial condition. Because Adjusted EBITDA is not a measure determined in accordance with GAAP and is thus susceptible to varying calculations, Adjusted EBITDA as discussed may not be comparable to other similarly titled measures of other companies.
The following table sets forth a reconciliation of Adjusted EBITDA to net loss for the periods presented.
Reconciliation of Net Income to Adjusted EBITDA | |||||||||
(in thousands) | |||||||||
For the Three | For the Three | ||||||||
Months Ended | Months Ended | ||||||||
2015 | 2014 | ||||||||
Net Income (loss) | $ | (67 | ) | $ | (674 | ) | |||
Adjustments to arrive at EBITDA: | |||||||||
Interest expense, net | 566 | 619 | |||||||
Provision for (benefit from) income taxes | 85 | 74 | |||||||
Depreciation | 305 | 374 | |||||||
Amortization | 239 | 496 | |||||||
EBITDA | 1,128 | 889 | |||||||
Adjustments to arrive at Adjusted EBITDA: | |||||||||
Stock based compensation | 101 | 208 | |||||||
Foreign currency loss (gain) | (121 | ) | 11 | ||||||
Non-cash change in fair values (1) | 20 | (897 | ) | ||||||
Adjusted EBITDA | $ | 1,128 | $ | 211 | |||||
(1) Prior year non-cash change in fair values relates primary to stock warrants. | |||||||||
Contact:
(413) 858-2516
www.cyalume.com
Investor Relations Counsel:
lcati@equityny.com
www.theequitygroup.com
Source:
News Provided by Acquire Media