Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - PRESSTEK INC /DE/ | form8k.htm |
NEWS
RELEASE
FOR
IMMEDIATE RELEASE
CONTACTS:
Investor
Relations Trade Relations
Linda
Lennox Brian
Wolfenden
(203)
275-6292 (603) 594-8585, ext.
3435
llennox@presstek.com bwolfenden@presstek.com
PRESSTEK
ANNOUNCES THIRD QUARTER 2009 FINANCIAL RESULTS
|
·
|
Improved
sequential operating results, excluding $3.7 million of non-routine
inventory and restructuring charges
|
|
·
|
New
credit facility expected to be in place by December
15
|
|
·
|
Reaffirming
positive EBITDA expected in Q4
|
Greenwich,
CT – November 9, 2009 – Presstek, Inc. (NASDAQ: PRST), a leading manufacturer
and marketer of digital offset printing business solutions, today reported
financial and operating results for the third quarter ended October 3,
2009. The Company reported total revenue of $33.0 million in the
third quarter of 2009, compared with $48.5 million in the third quarter of 2008,
a decline of $15.5 million, or approximately 32 percent. During the
third quarter of 2009, the Company incurred a loss from continuing operations of
$6.6 million, or $0.18 per share, including (on a pre-tax basis) a largely
non-cash inventory-related charge of $2.7 million and a restructuring charge of
$1.0 million related to the $10 million cost reduction program announced in the
second quarter of 2009. Excluding pre-tax non-routine charges of $3.7
million in the third quarter of 2009 and $0.4 million in the third quarter of
2008, the loss from continuing operations would have been $3.0 million, or $0.08
per share, in the third quarter of 2009, compared with income from continuing
operations of $1.0 million, or $0.03 per share, in the third quarter of
2008. (See
“Information Regarding Non-GAAP Measures”)
Results
from continuing operations exclude the Company’s Lasertel subsidiary, which is
currently being marketed for sale and is recorded in discontinued
operations. The Company expects to reach an agreement for the sale of
its Lasertel subsidiary in the fourth quarter of 2009 with a closing anticipated
in the first quarter of 2010. Lasertel’s results improved during the
third quarter of 2009 with income from operations, net of tax, of $0.7 million,
compared with a loss from operations, net of tax, of $0.4 million in the same
period last year.
“Although
revenues for the quarter continue to be impacted by the global economic
recession, sequential quarterly revenues have stabilized and we anticipate that
revenue will begin to grow,” said Presstek Chairman, President and Chief
Executive Officer, Jeff Jacobson. “We have successfully reduced
expenses and managed cash, while staying focused on our strategic initiatives of
expanding our product portfolio and distribution channels. During the
third quarter, we debuted and sold our first 52DI with aqueous coating
capability to Quad/Graphics, the largest privately held printer in the world,
and have already accepted several additional customer orders. We also
introduced Aeon, our first long-run, non-preheat thermal CTP plate, which will
be available by the end of this year. In addition, we have made
tremendous progress expanding our distribution channels to nearly 60 distributor
locations in our Europe, Africa, Middle East and Asia Pacific
regions.”
Third
Quarter 2009 Financial Results
Total
revenue in the third quarter of 2009 was $33.0 million, compared with $48.5
million in the third quarter of 2008.
|
·
|
Equipment revenue
declined 76 percent to $3.6 million in the third quarter of 2009, compared
with $15.2 million for the same period last year. Sales of
equipment have been negatively impacted by the global economic recession
that has caused credit markets to tighten and customers to delay major
capital investment decisions.
|
|
·
|
Consumables revenue
totaled $22.2 million in the third quarter of 2009, compared with $25.1
million for the same period last year. The decline in
consumables revenue was primarily related to lower industry print volume,
as well as lower sales in the Company’s “traditional” portfolio of
consumables products as customers continue to migrate from analog to
digital solutions. However, sequential quarterly revenue
increased $1.0 million, or 4.9
percent.
|
|
·
|
Service revenue
declined approximately 12 percent to $7.2 million in the third quarter of
2009 primarily due to a decrease in the level of traditional equipment
service and lower print volume.
|
Third
quarter 2009 margin was impacted by an abnormally large inventory charge of $2.7
million to Cost of Goods Sold that lowered gross margin to 23.3 percent,
compared with 34.7 percent in the third quarter of 2008. Excluding
this unusual charge, gross margin in the third quarter of 2009 would have been
31.5 percent. This charge, which is mostly non-cash, was driven in
large part by lower production volume levels in Presstek’s equipment
manufacturing plant and the impact of a change in certain product
strategies. In addition, during the quarter, Presstek refined the
calculations and assumptions used to determine the allocation of manufacturing
spending between period costs and capitalized variances. The Company
is evaluating the need for actions to further enhance its manufacturing cost
efficiencies.
Third
quarter 2009 operating expenses declined to $13.9 million, reflecting a
year-over-year improvement of $0.8 million, or 5.7 percent. Lower
expenses resulted primarily from cost reduction activities. During
the second quarter of 2009, the Company implemented a cost reduction program
that is substantially complete and is expected to result in annualized savings
of approximately $10 million. A restructuring charge of $1.0 million
related to the program was recorded in the third quarter of
2009. Excluding the impact of restructuring charges in both periods,
third quarter 2009 operating expenses were down $1.5 million, or 11 percent,
compared with the same period last year.
“During
the last two years, we have implemented business improvement initiatives that
have resulted in gross profit and operating expense improvements of
approximately $40 million,” said Presstek Executive Vice President and Chief
Financial Officer, Jeff Cook. “With the vast majority of the cost
cutting initiatives complete, we have a cost structure that is appropriately
aligned with our revenue base. I am optimistic that our lean cost
structure combined with the positive sales prospects we are seeing will lead to
positive EBITDA in the fourth quarter of 2009.”
Interest
expense increased to $0.5 million in the third quarter of 2009, compared with
$0.1 million in the third quarter of 2008. The increase is due to
higher interest rates and a $250,000 fee associated with a modification of the
Company’s credit agreement. The Company is in discussions concerning
a new credit facility and expects to have an arrangement in place on or prior to
December 15, 2009 sufficient to repay the Company’s outstanding indebtedness and
provide for continuing operations.
The
Company’s third quarter 2009 debt net of cash totaled $16.2 million, compared
with $13.3 million in the third quarter of 2008. Debt net of cash is
down 56 percent from its high of $37.0 million in March 2007.
“With the
anticipated continued impact of the economy on our financial results, we had
previously indicated that, excluding non-routine charges in both quarters, our
third quarter operating loss would be in line with our second quarter loss of
$3.6 million. In addition, we would be incurring costs related to
Print 09, North America’s largest printing trade show held during the third
quarter,” added Jacobson. “I am encouraged that with a third quarter
operating loss of $2.4 million, absent non-routine charges, the business
performed better than expected. With the talented and dedicated
employees we have and the steps we have taken to ensure that we are well
positioned to thrive once the economy turns around, I am confident of the
Company’s future success.”
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 income (loss) from continuing operations, excluding
non-routine charges; operating income (loss), excluding non-routine charges;
gross margin, excluding non-routine charges; operating expenses, excluding the
impact of restructuring charges; EBITDA from continuing operations; cash
earnings from continuing operations, excluding non-routine charges; working
capital, excluding short-term debt; 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 financial tables below. Supplemental financial
information has been provided with this release to provide additional details on
the Company's performance.
Conference
Call and Webcast Information
Management
will discuss Presstek's third quarter 2009 results in a conference call on
Monday, November 9, 2009 at 10:30 a.m. Eastern Time. Conference call
information is below:
Conference
Call Access:
Domestic
Dial In: (888) 396-2386
International
Dial In: (617) 847-8712
Passcode:
14582468
In
addition, for those unable to participate at the time of the call, a rebroadcast
will be available following the call from Monday, November 9, 2009 at 1:30 PM
Eastern Time until Friday, November 16, 2009 Eastern Time at 11:59
PM.
Rebroadcast
Access:
Domestic
Dial In: 888-286-8010
International
Dial In: 617-801-6888
Passcode:
30398536
An
archived webcast of this conference call will also be available on the "Investor
Events Calendar" page of the Company's web site, www.presstek.com.
About
Presstek
Presstek,
Inc. is a leading manufacturer and marketer of high tech digital imaging
solutions to the graphic arts and laser imaging markets. Presstek's
patented DI®, CTP
and plate products provide a streamlined workflow in a chemistry-free
environment, thereby reducing printing cycle time and lowering production
costs. Presstek solutions are designed to make it easier for printers
to cost effectively meet increasing customer demand for high-quality, shorter
print runs and faster turnaround while providing improved profit
margins. Presstek subsidiary, Lasertel, Inc., manufactures
semiconductor laser diodes for Presstek's and external customers'
applications. For more information visit www.presstek.com, or call
603-595-7000 or email: info@presstek.com. 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 expected revenue, gross margins,
operating income (loss), EBITDA, asset impairments, expectations concerning the
level of costs, the level of customer demand, the results of the Company’s cost
reduction measures, the Company’s expectation concerning the sale of its
Lasertel subsidiary, the ability of the Company to achieve its stated
objectives, and the Company’s expectations concerning its ability to obtain a
new credit facility. Such forward-looking statements involve a number
of known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, but
are not limited to: the severity and length of the current economic
downturn, the impact of the economic downturn on the availability of
credit for the Company’s customers, the ability of the Company to continue to
have access to its revolving credit facility, the ability of the Company to
obtain an adequate credit facility to replace its current credit facility and
provide for operations, the Company’s ability to successfully market its
Lasertel subsidiary for sale, market acceptance of and demand for the Company's
products and resulting revenue, the ability of the Company to successfully
expand into new territories, the ability of the Company to meet its stated
financial and operational objectives, the Company's dependence on its partners
(both manufacturing and distribution), the results of the pending formal
investigation by the Securities and Exchange Commission and the impact of any
civil penalty on the Company, the ability of the Company’s insurer to fund
certain costs associated with the SEC investigation, and other risks and
uncertainties detailed in the Company's 2008 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.
Financial
Tables Follow
|
PRESSTEK,
INC.
|
||||||||||||||||
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
(in
thousands, except per-share data)
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
Three
months ended
|
Nine
months ended
|
|||||||||||||||
|
October
3,
|
September
27,
|
October
3,
|
September
27,
|
|||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Revenue
|
||||||||||||||||
|
Equipment
|
$ | 3,627 | $ | 15,235 | $ | 13,827 | $ | 42,957 | ||||||||
|
Consumables
|
22,150 | 25,053 | 65,170 | 81,807 | ||||||||||||
|
Service
and parts
|
7,229 | 8,246 | 21,979 | 26,170 | ||||||||||||
|
Total
revenue
|
33,006 | 48,534 | 100,976 | 150,934 | ||||||||||||
|
Cost
of revenue
|
||||||||||||||||
|
Equipment
|
8,152 | 12,937 | 18,015 | 37,207 | ||||||||||||
|
Consumables
|
11,982 | 12,652 | 35,603 | 41,452 | ||||||||||||
|
Service
and parts
|
5,172 | 6,096 | 16,528 | 19,561 | ||||||||||||
|
Total
cost of revenue
|
25,306 | 31,685 | 70,146 | 98,220 | ||||||||||||
|
Gross
profit
|
7,700 | 16,849 | 30,830 | 52,714 | ||||||||||||
|
Operating
expenses
|
||||||||||||||||
|
Research
and development
|
1,379 | 1,059 | 3,803 | 3,697 | ||||||||||||
|
Sales,
marketing and customer support
|
6,276 | 7,088 | 19,525 | 22,411 | ||||||||||||
|
General
and administrative
|
4,946 | 5,932 | 17,239 | 18,321 | ||||||||||||
|
Amortization
of intangible assets
|
225 | 258 | 712 | 823 | ||||||||||||
|
Restructuring
and other charges
|
1,040 | 374 | 1,162 | 1,569 | ||||||||||||
|
Goodwill
impairment
|
- | - | 19,114 | - | ||||||||||||
|
Total
operating expenses
|
13,866 | 14,711 | 61,555 | 46,821 | ||||||||||||
|
Income
(loss) from operations
|
(6,166 | ) | 2,138 | (30,725 | ) | 5,893 | ||||||||||
|
Interest
and other expense, net
|
(745 | ) | (359 | ) | (531 | ) | (646 | ) | ||||||||
|
Income
(loss) from continuing operations before income taxes
|
(6,911 | ) | 1,779 | (31,256 | ) | 5,247 | ||||||||||
|
Provision
for income taxes
|
(264 | ) | 1,153 | 16,366 | 2,731 | |||||||||||
|
Income
(loss) from continuing operations
|
(6,647 | ) | 626 | (47,622 | ) | 2,516 | ||||||||||
|
Income
(loss) from discontinued operations, net of income taxes
|
$ | 706 | $ | (431 | ) | $ | (959 | ) | $ | (1,536 | ) | |||||
|
Net
income (loss)
|
$ | (5,941 | ) | $ | 195 | $ | (48,581 | ) | $ | 980 | ||||||
|
Earnings
(loss) per share - basic
|
||||||||||||||||
|
Income
(loss) from continuing operations
|
$ | (0.18 | ) | $ | 0.02 | $ | (1.30 | ) | $ | 0.07 | ||||||
|
Income
(loss) from discontinued operations
|
0.02 | (0.01 | ) | (0.02 | ) | (0.04 | ) | |||||||||
| $ | (0.16 | ) | $ | 0.01 | $ | (1.32 | ) | $ | 0.03 | |||||||
|
Earnings
(loss) per share - diluted
|
||||||||||||||||
|
Income
(loss) from continuing operations
|
$ | (0.18 | ) | $ | 0.02 | $ | (1.30 | ) | $ | 0.07 | ||||||
|
Income
(loss) from discontinued operations
|
0.02 | (0.01 | ) | (0.02 | ) | (0.04 | ) | |||||||||
| $ | (0.16 | ) | $ | 0.01 | $ | (1.32 | ) | $ | 0.03 | |||||||
|
Weighted
average shares outstanding
|
||||||||||||||||
|
Weighted
average shares outstanding - basic
|
36,638 | 36,603 | 36,668 | 36,586 | ||||||||||||
|
Dilutive
effect of stock options
|
- | 13 | - | 12 | ||||||||||||
|
Weighed
average shares outstanding - diluted
|
36,638 | 36,616 | 36,668 | 36,598 | ||||||||||||
|
PRESSTEK,
INC.
|
||||||||
|
CONSOLIDATED
BALANCE SHEETS
|
||||||||
|
(in
thousands)
|
||||||||
|
(Unaudited)
|
||||||||
|
October
3,
|
January
3,
|
|||||||
|
2009
|
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current
assets
|
||||||||
|
Cash
and cash equivalents
|
$ | 7,220 | $ | 4,738 | ||||
|
Accounts
receivable, net
|
24,609 | 30,759 | ||||||
|
Inventories
|
33,134 | 37,607 | ||||||
|
Assets
of discontinued operations
|
14,743 | 13,330 | ||||||
|
Deferred
income taxes
|
503 | 7,066 | ||||||
|
Other
current assets
|
2,693 | 4,095 | ||||||
|
Total
current assets
|
82,902 | 97,595 | ||||||
|
Property,
plant and equipment, net
|
24,744 | 25,530 | ||||||
|
Goodwill
|
- | 19,114 | ||||||
|
Intangible
assets, net
|
4,190 | 4,174 | ||||||
|
Deferred
income taxes
|
739 | 10,494 | ||||||
|
Other
noncurrent assets
|
497 | 606 | ||||||
|
Total
assets
|
$ | 113,072 | $ | 157,513 | ||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current
liabilities
|
||||||||
|
Current
portion of long-term debt and capital lease obligation
|
$ | 834 | $ | 4,074 | ||||
|
Line
of credit
|
22,612 | 12,415 | ||||||
|
Accounts
payable
|
10,189 | 12,060 | ||||||
|
Accrued
expenses
|
9,286 | 13,261 | ||||||
|
Deferred
revenue
|
6,818 | 7,300 | ||||||
|
Liabilities
of discontinued operations
|
5,801 | 5,702 | ||||||
|
Total
current liabilities
|
55,540 | 54,812 | ||||||
|
Other
long-term liabilities
|
151 | 170 | ||||||
|
Total
liabilities
|
55,691 | 54,982 | ||||||
|
Stockholders'
equity
|
||||||||
|
Preferred
stock
|
- | - | ||||||
|
Common
stock
|
368 | 366 | ||||||
|
Additional
paid-in capital
|
119,604 | 117,985 | ||||||
|
Accumulated
other comprehensive loss
|
(4,144 | ) | (5,954 | ) | ||||
|
Accumulated
deficit
|
(58,447 | ) | (9,866 | ) | ||||
|
Total
stockholders' equity
|
57,381 | 102,531 | ||||||
|
Total
liabilities and stockholders' equity
|
$ | 113,072 | $ | 157,513 | ||||
|
PRESSTEK,
INC.
|
||||||||||||||||||||
|
CONTINUING
OPERATIONS SUPPLEMENTAL FINANCIAL INFORMATION
|
||||||||||||||||||||
|
$000's
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
| Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | ||||||||||||||||
|
Key
Units
|
||||||||||||||||||||
|
DI
Presses (Excludes QMDI)
|
37 | 25 | 13 | 11 | 12 | |||||||||||||||
|
CtP
Platesetters (Excludes DPM)
|
36 | 35 | 24 | 21 | 15 | |||||||||||||||
|
Revenue
- Growth Portfolio
|
||||||||||||||||||||
|
DI
Presses (Excludes QMDI)
|
12,867 | 7,528 | 3,521 | 3,732 | 2,923 | |||||||||||||||
|
Presstek
Branded DI Plates
|
4,653 | 4,661 | 4,025 | 4,301 | 4,318 | |||||||||||||||
|
Total
DI Revenue
|
17,520 | 12,189 | 7,546 | 8,033 | 7,241 | |||||||||||||||
|
Presstek
CtP Platesetters (Excludes DPM)
|
2,228 | 2,039 | 1,109 | 1,505 | 1,081 | |||||||||||||||
|
Chemistry
Free CtP Plates
|
4,064 | 4,402 | 3,426 | 3,678 | 3,745 | |||||||||||||||
|
Total
CtP Revenue
|
6,292 | 6,441 | 4,535 | 5,183 | 4,826 | |||||||||||||||
|
Service
Transfer
|
(976 | ) | (1,176 | ) | (601 | ) | (603 | ) | (596 | ) | ||||||||||
|
Service
Revenue
|
2,804 | 3,002 | 2,723 | 2,588 | 2,603 | |||||||||||||||
|
Total
Revenue - Growth Portfolio
|
25,640 | 20,456 | 14,203 | 15,201 | 14,074 | |||||||||||||||
|
Revenue
- Traditional Portfolio
|
||||||||||||||||||||
|
QMDI
Platform
|
3,456 | 3,417 | 2,962 | 2,987 | 3,056 | |||||||||||||||
|
Polyester
CtP Platform
|
4,077 | 3,601 | 3,575 | 3,178 | 3,228 | |||||||||||||||
|
Other
DI Plates
|
2,059 | 1,693 | 1,295 | 1,128 | 1,438 | |||||||||||||||
|
Conventional/Other
|
7,943 | 7,916 | 7,775 | 6,608 | 6,772 | |||||||||||||||
|
Total
Product Revenue - Traditional
|
17,535 | 16,627 | 15,607 | 13,901 | 14,494 | |||||||||||||||
|
Service
Transfer
|
(85 | ) | (102 | ) | (190 | ) | (190 | ) | (188 | ) | ||||||||||
|
Service
Revenue - Traditional
|
5,444 | 5,336 | 4,840 | 4,598 | 4,626 | |||||||||||||||
|
Total
Revenue - Traditional Portfolio
|
22,894 | 21,861 | 20,257 | 18,309 | 18,932 | |||||||||||||||
|
Total
Revenue
|
48,534 | 42,318 | 34,460 | 33,510 | 33,006 | |||||||||||||||
|
Product
Revenue Components %
|
||||||||||||||||||||
|
Growth
|
52.8 | % | 48.3 | % | 41.2 | % | 45.4 | % | 42.6 | % | ||||||||||
|
Traditional
|
47.2 | % | 51.7 | % | 58.8 | % | 54.6 | % | 57.4 | % | ||||||||||
|
Geographic
Revenues (Origination)
|
||||||||||||||||||||
|
North
America
|
35,244 | 32,374 | 26,715 | 26,076 | 26,810 | |||||||||||||||
|
Europe
|
13,290 | 9,944 | 7,745 | 7,434 | 6,196 | |||||||||||||||
|
Consolidated
|
48,534 | 42,318 | 34,460 | 33,510 | 33,006 | |||||||||||||||
|
Gross
Margin
|
||||||||||||||||||||
|
Presstek
|
||||||||||||||||||||
|
Equipment
|
15.1 | % | 11.7 | % | 5.9 | % | 0.9 | % | -124.8 | % | ||||||||||
|
Consumables
|
49.5 | % | 51.2 | % | 46.7 | % | 43.5 | % | 45.9 | % | ||||||||||
|
Service
|
26.1 | % | 29.7 | % | 20.8 | % | 25.3 | % | 28.5 | % | ||||||||||
|
Consolidated
|
34.7 | % | 37.9 | % | 35.1 | % | 32.9 | % | 23.3 | % | ||||||||||
|
Operating
Expense (Excluding Special Charges) (A)
|
$ | 14,337 | $ | 16,409 | $ | 13,851 | $ | 14,602 | $ | 12,826 | ||||||||||
|
Profitability
|
||||||||||||||||||||
|
Net
income (loss)
|
$ | 195 | $ | (456 | ) | $ | (1,191 | ) | $ | (41,449 | ) | $ | (5,941 | ) | ||||||
|
Add
back: Loss from discontinued operations
|
431 | 1,070 | 85 | 1,580 | (706 | ) | ||||||||||||||
|
Net
income (loss) from continuing operations
|
626 | 614 | (1,106 | ) | (39,869 | ) | (6,647 | ) | ||||||||||||
|
Add
back:
|
||||||||||||||||||||
|
Interest
|
147 | 121 | 56 | 110 | 491 | |||||||||||||||
|
Other
(income) expense
|
212 | (1,705 | ) | (516 | ) | 136 | 254 | |||||||||||||
|
Tax
charge (benefit)
|
1,153 | 49 | (275 | ) | 16,905 | (264 | ) | |||||||||||||
|
Impairment
/ Other charges
|
- | - | - | 19,114 | 2,700 | |||||||||||||||
|
Non
cash portion of equity compensation (2006 forward 123R
related)
|
498 | 482 | 457 | 505 | 389 | |||||||||||||||
|
Restructuring
and Other charges
|
374 | 539 | 84 | 38 | 1,040 | |||||||||||||||
|
Operating
income (loss) from continuing operations
|
3,010 | 100 | (1,300 | ) | (3,061 | ) | (2,037 | ) | ||||||||||||
|
Add
back:
|
||||||||||||||||||||
|
Depreciation
and amortization
|
1,379 | 1,172 | 1,191 | 1,150 | 1,231 | |||||||||||||||
|
Other
income (expense)
|
(212 | ) | 1,705 | 516 | (136 | ) | (745 | ) | ||||||||||||
|
EBITDA
From Continuing Operations (A)
|
$ | 4,177 | $ | 2,977 | $ | 407 | $ | (2,047 | ) | $ | (1,551 | ) | ||||||||
| Q3 2008 | Q4 2008 | Q1 2009 | Q2 2009 | Q3 2009 | ||||||||||||||||
|
Cash
Earnings From Continuing Operations
|
||||||||||||||||||||
|
Income
(loss) from continuing operations
|
626 | 614 | (1,106 | ) | (39,869 | ) | (6,647 | ) | ||||||||||||
|
Add
back:
|
||||||||||||||||||||
|
Restructuring
and Other charges
|
374 | 539 | 84 | 38 | 1,040 | |||||||||||||||
|
Impairment
/ Other charges
|
- | - | - | 19,114 | 2,700 | |||||||||||||||
|
Depreciation
and amortization
|
1,379 | 1,172 | 1,191 | 1,150 | 1,231 | |||||||||||||||
|
Non
cash portion of equity compensation (2006 forward 123R
related)
|
498 | 482 | 457 | 505 | 389 | |||||||||||||||
|
Non
cash portion of taxes
|
749 | 36 | (454 | ) | 17,071 | (299 | ) | |||||||||||||
|
Cash
Earnings From Continuing Operations (A)
|
3,626 | 2,843 | 172 | (1,991 | ) | (1,586 | ) | |||||||||||||
|
Working
Capital
|
||||||||||||||||||||
|
Current
assets (excluding net assets of discontinued operations)
|
$ | 93,152 | $ | 84,263 | $ | 83,850 | $ | 73,994 | $ | 68,159 | ||||||||||
|
Current
liabilities
|
||||||||||||||||||||
|
Short-term
debt
|
15,130 | 16,489 | 14,941 | 17,592 | 23,446 | |||||||||||||||
|
All
other current liabilities
|
37,163 | 32,575 | 33,847 | 31,345 | 26,293 | |||||||||||||||
|
Current
liabilities
|
52,293 | 49,064 | 48,788 | 48,937 | 49,739 | |||||||||||||||
|
Working
capital
|
40,859 | 35,199 | 35,062 | 25,057 | 18,420 | |||||||||||||||
|
Add
back short-term debt
|
15,130 | 16,489 | 14,941 | 17,592 | 23,446 | |||||||||||||||
|
Working
capital, excluding short-term debt (A)
|
$ | 55,989 | $ | 51,688 | $ | 50,003 | $ | 42,649 | $ | 41,866 | ||||||||||
|
Debt
net of cash (A)
|
||||||||||||||||||||
|
Calculation
of total debt:
|
||||||||||||||||||||
|
Current
portion of long-term debt
|
$ | 3,240 | $ | 4,074 | $ | 2,454 | $ | 1,644 | $ | 834 | ||||||||||
|
Line
of credit
|
11,890 | 12,415 | 12,487 | 15,948 | 22,612 | |||||||||||||||
|
Long-term
debt, net of current portion
|
834 | - | - | - | - | |||||||||||||||
|
Total
debt
|
15,964 | 16,489 | 14,941 | 17,592 | 23,446 | |||||||||||||||
|
Cash
|
2,634 | 4,738 | 5,262 | 4,453 | 7,220 | |||||||||||||||
|
Debt
net of cash
|
$ | 13,330 | $ | 11,751 | $ | 9,679 | $ | 13,139 | $ | 16,226 | ||||||||||
|
Days
Sales Outstanding
|
60 | 69 | 74 | 69 | 66 | |||||||||||||||
|
Days
Inventory Outstanding
|
87 | 87 | 100 | 105 | 99 | |||||||||||||||
|
Capital
Expenditures
|
$ | 437 | $ | 831 | $ | 180 | $ | 238 | $ | 257 | ||||||||||
|
Employees
|
622 | 608 | 612 | 608 | 553 |
A. Operating
expenses, excluding special charges and EBITDA from continuing operations
[earnings before interest, taxes, depreciation, amortization and restructuring
and merger-related charges (credits)]; Working capital, excluding short-term
debt; Debt net of cash; and Cash earning from continuing operations 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 EBITDA
provides meaningful supplemental information regarding Presstek's current
financial performance and prospects for the future. Presstek's
management believes that Cash earnings from continuing operations provide
meaningful supplemental information regarding Presstek's current financial
performance and prospects for the future. Presstek's management
believes that Working capital, excluding short-term debt, provides meaningful
supplemental information regarding Presstek's ability to meet its current
liability obligations. 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.
**
Certain amounts may be subject to reclassification to conform to current
presentation.
|
Reconciliation
of GAAP amounts to Non-GAAP amounts
|
||||||||||||||||||||||||
|
(Dollar
amounts in thousands)
|
||||||||||||||||||||||||
|
Three
months ended October 3, 2009
|
Three
months ended September 27, 2008
|
|||||||||||||||||||||||
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|||||||||||||||||||||
|
amounts
|
Adjustments
|
amounts
|
amounts
|
Adjustments
|
amounts
|
|||||||||||||||||||
|
Revenue
|
$ | 33,006 | $ | - | $ | 33,006 | $ | 48,534 | $ | - | $ | 48,534 | ||||||||||||
|
Gross
profit
|
7,700 | 2,700 | 10,400 | 16,849 | - | 16,849 | ||||||||||||||||||
| 23.3 | % | 31.5 | % | 34.7 | % | 34.7 | % | |||||||||||||||||
|
Operating
expenses
|
13,866 | 1,040 | 12,826 | 14,711 | 374 | 14,337 | ||||||||||||||||||
|
Operating
income
|
(6,166 | ) | 3,740 | (2,426 | ) | 2,138 | 374 | 2,512 | ||||||||||||||||
|
Income
before income taxes
|
(6,911 | ) | 3,740 | (3,171 | ) | 1,779 | 374 | 2,153 | ||||||||||||||||
|
Provision
for income taxes
|
(264 | ) | 127 | (137 | ) | 1,153 | (34 | ) | 1,119 | |||||||||||||||
|
Income
(loss) from continuing operations
|
(6,647 | ) | 3,613 | (3,034 | ) | 626 | 408 | 1,034 | ||||||||||||||||
|
Loss
from discontinued operations, net of income taxes
|
706 | 706 | (431 | ) | (431 | ) | ||||||||||||||||||
|
Net
income
|
(5,941 | ) | (2,328 | ) | 195 | 603 | ||||||||||||||||||
|
Earnings
(loss) per share from continuing operations
|
$ | (0.18 | ) | $ | 0.10 | $ | (0.08 | ) | $ | 0.02 | $ | 0.01 | $ | 0.03 | ||||||||||
|
Three
months ended October 3, 2009
|
Three
months ended July 4, 2009
|
|||||||||||||||||||||||
|
GAAP
|
Non-GAAP
|
GAAP
|
Non-GAAP
|
|||||||||||||||||||||
|
amounts
|
Adjustments
|
amounts
|
amounts
|
Adjustments
|
amounts
|
|||||||||||||||||||
|
Revenue
|
$ | 33,006 | $ | - | $ | 33,006 | $ | 33,510 | $ | - | $ | 33,510 | ||||||||||||
|
Gross
profit
|
7,700 | 2,700 | 10,400 | 11,036 | - | 11,036 | ||||||||||||||||||
|
Operating
expenses
|
13,866 | 1,040 | 12,826 | 33,754 | 19,152 | 14,602 | ||||||||||||||||||
|
Operating
loss excluding non-routine charges
|
(6,166 | ) | 3,740 | (2,426 | ) | (22,718 | ) | 19,152 | (3,566 | ) | ||||||||||||||
|
Adjustments
represent non-routine charges for non-cash inventory write-downs and
restructuring charges in Q309, restructuring charges in Q308, goodwill
impairment and restructuring charges in Q209.
|
||||||||||||||||||||||||