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| 8-K - FORM 8-K - VIDEO DISPLAY CORP | g25808e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Video Display Reports Third Quarter and Nine Month Results
January 17, 2011 — Video Display Corporation (NASDAQ: VIDE), a world leader in the supply of
unique medical, defense and industrial display solutions, reports financial results for the fiscal
third quarter and nine month periods ended November 30, 2010.
Revenue for the three month period ended November 30, 2010 is reported at $16.9 million, reflecting
the expected decrease in quarterly revenues caused by the early shipment of products by the Company
in the previous quarter ended August 31, 2010 which had been scheduled for shipment in the
3rd quarter. The fiscal 2011 3rd quarter revenue is reported as slightly
less than the previous year third quarter revenue of $17.5 million by $591,000 or 3.37%. Revenue
was also negatively impacted at the Company’s Fox International Ltd fulfillment service subsidiary
by $1.17 million, versus the previous year’s 3rd quarter, due to disruptions in the
supply chain from a major Japanese supplier of parts required to fill existing orders as well as
reduced demand from a large customer for consumer parts and accessories.
Fully diluted earnings per share for the third fiscal quarter are reported at a loss of ($0.05)
versus the previous year’s third quarter fully diluted profit of $0.01 per share. As with third
quarter revenues, this period’s quarterly profits were negatively impacted by the Fox Intl Ltd
quarterly performance. In this period, the Company’s display operations generated pretax profits of
$285,000 which were offset by losses at Fox which reported a pretax loss of ($894,000) for the
period.
Revenue for the nine month period ended November 30, 2010 is reported at $59.4 million versus $50.7
million reported for November 30, 2009, an increase of 17% versus the previous year period. Fully
diluted earnings per share are reported at $0.17 for the first nine months of fiscal 2011 versus
$0.03 for the like period of 2010.
Company CEO, Ron Ordway, stated, “Results, for the third quarter, were less than impressive for a
variety of causes. I anticipate that the Company will show improved results for the fourth
quarter. With the effect of Sony parts shipments being 95% back to normal and regular shipments
from the Display division also on schedule, I would expect previously stated fourth quarter
guidance, without any non-recurring gains or losses, to still be attainable and that full year
earnings per share are expected to be in the range of $0.23 to $0.25 per share for fiscal February
28, 2011. It is expected, however, that the Company will report a non recurring gain on the
auction sale of its Fox Intl Ltd subsidiary which is scheduled to occur during the Company’s fourth
fiscal quarter.”
Video Display Corporation designs, develops and manufactures unique solutions for display
requirements for military, medical and industrial use with emphasis on high end training and
simulation applications. Its product offerings include rugged AMLCD and CRT displays as well as
complete projection systems utilizing VDC’s Marquee™ line of projectors. Video Display Corporation
operates 8 display design and manufacturing plants plus additional sales facilities throughout the
United States and Europe.
This document contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. In addition, from time to time, Video Display Corporation or its representatives have made
or may make forward-looking statements, orally or in writing. Such forward-looking statements may
be included in, but are not limited to, various filings made by the Company with the Securities and
Exchange Commission, press releases or oral statements made with the approval of an authorized
executive officer of the Company. Actual results could differ materially from those projected or
suggested in any forward-looking statements as a result of a wide variety of factors and
conditions, including items discussed in the Company’s Form 10-K for the year ended February 28,
2009, filed with the Securities and Exchange
Commission. The Company undertakes no duty to publicly update forward-looking statements, whether
as a result of new information, future events or otherwise.
Video Display Corporation and Subsidiaries
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
Consolidated Statements of Income (unaudited)
(in thousands, except per share data)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| November 30, | November 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 16,922 | $ | 17,513 | $ | 59,373 | $ | 50,704 | ||||||||
Cost of goods sold |
12,009 | 12,328 | 40,613 | 33,713 | ||||||||||||
Gross profit |
4,913 | 5,185 | 18,760 | 16,991 | ||||||||||||
Operating expenses |
||||||||||||||||
Selling and delivery |
1,868 | 1,711 | 5,690 | 5,234 | ||||||||||||
General and administrative |
3,435 | 3,202 | 10,185 | 11,084 | ||||||||||||
| 5,303 | 4,913 | 15,875 | 16,318 | |||||||||||||
Operating profit |
(390 | ) | 272 | 2,885 | 673 | |||||||||||
Other income (expense) |
||||||||||||||||
Interest expense |
(243 | ) | (308 | ) | (832 | ) | (811 | ) | ||||||||
Other, net |
62 | 80 | 251 | 413 | ||||||||||||
| (181 | ) | (228 | ) | (581 | ) | (398 | ) | |||||||||
Income before income taxes |
(571 | ) | 44 | 2,304 | 275 | |||||||||||
Income tax expense |
(152 | ) | (26 | ) | 802 | 27 | ||||||||||
Net income |
$ | (419 | ) | $ | 70 | $ | 1,502 | $ | 248 | |||||||
Basic earnings per share of
common stock |
$ | (.05 | ) | $ | .01 | $ | .18 | $ | .03 | |||||||
Diluted earnings per share
of common stock |
$ | (.05 | ) | $ | .01 | $ | .17 | $ | .03 | |||||||
Basic weighted average
shares outstanding |
8,365 | 8,372 | 8,365 | 8,445 | ||||||||||||
Diluted weighted average
shares outstanding |
8,700 | 8,706 | 8,693 | 8,756 | ||||||||||||
CONTACT: Video Display Corporation Ronald D. Ordway, 770/938-2080