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8-K - FORM 8-K - EMS TECHNOLOGIES INC | c13570e8vk.htm |
Exhibit
99.1
NEWS RELEASE Atlanta, Georgia March 3, 2011 Contact: Investor Relations Phone: (770) 729-6512 E-mail: investor.relations@ems-t.com www.ems-t.com |
EMS Technologies Announces
Record Fourth Quarter Results
Record Fourth Quarter Results
Strong Growth in Sales and Profits Expected for 2011
ATLANTA March 3, 2011 EMS Technologies, Inc. (NASDAQ: ELMG) today announced record sales
and record Adjusted EBITDA for the fourth quarter of 2010, reflecting strong execution and improved
profitability across the entire company.
For the fourth-quarter 2010, consolidated revenues were a record $98.1 million, and operating
income was $6.2 million. Fourth-quarter net earnings totaled $6.1 million, or $0.40 per share,
including a benefit of approximately $1.0 million, or $0.06 per share, for Congresss recent
extension of the tax credit for R&D expenditures. Adjusted EBITDA (described below under Non-GAAP
Financial Measures) for the fourth quarter was a record, totaling $12.2 million. The Company also
generated a record $17.4 million in operating cash flow from continuing operations during the
fourth quarter of 2010, further improving an already strong balance sheet. These financial results
exceeded the results for the comparable period in 2009. For the full year 2010, the Company
reported revenues of $355.2 million and net earnings of $14.1 million, or $0.92 per share.
Adjusted EBITDA for 2010 was a record $40.3 million, and Adjusted Earnings Per Share (also
described below under Non-GAAP Financial Measures) were $0.97 per share.
Neil Mackay, EMSs CEO, commented, Our results are a direct reflection of the Companys leadership
in dynamic markets and the focused performance of our people, as well as the benefit of strategic
and operational steps we have taken to increase efficiency and improve profitability. EMS is
positioned for growth, and we expect strong results in 2011 and beyond.
Strong North American Markets Drives Record LXE Revenues
Fourth quarter revenues from LXEs rugged wireless computers were a record $38.7 million, a 31%
increase from $29.5 million in Q4 2009. LXEs fourth quarter operating income was $2.5 million in
2010, compared with an operating loss of $0.4 million in 2009. Fourth quarter Adjusted EBITDA
from LXE increased to $3.3 million in 2010 compared with $0.2 million in 2009. The most active
markets were beverage, automotive, and construction equipment, as well as markets for LXEs new
wide-area products for field-force automation.
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
Revenue growth was also driven by the success of LXEs change to an indirect distribution
strategy. We expanded our market reach by establishing strong relationships with large
distribution partners, such as ScanSource and BlueStar, and system integrators, such as Red Prairie
and PEAK Technologies. Since the beginning of 2010, the number of worldwide distribution partners
has nearly tripled to more than 700.
Global Tracking To Align With LXE For Competitive Advantage
Fourth-quarter 2010 revenues for the Global Tracking business were $10.9 million, a 24% increase
from $8.8 million in Q4 2009. Global Trackings operating income increased to $0.6 million in 2010
from $0.3 million in 2009. Adjusted EBITDA was $1.7 million in Q4 2010, a 55% increase from $1.1
million in Q4 2009. Higher airtime revenue and installation of systems for search and rescue
contributed to these improved results.
Neil Mackay commented, Global Tracking comprises powerful enabling technologies that are helping
fuel the demand to track and communicate with people and assets on the move, anywhere in the world.
We believe the integration of this business with LXE will be a competitive advantage and an
important key for long-term success.
Aviation Business Improves In Fourth Quarter and Builds For The Future
The Aviation business earned $2.7 million in operating profit and $5.0 million Adjusted EBITDA on
revenues of $31.1 million for the fourth quarter of 2010, compared with $2.5 million in operating
profit and $4.6 million Adjusted EBITDA on revenues of $30.3 million for the comparable period one
year earlier. This business reported its strongest revenue since mid-2009, driven by sales of
satellite connectivity products for defense applications in intelligence, surveillance and
reconnaissance (ISR). The Aviation business also had major shipments of air-to-ground products,
as part of commercial airline expansion of in-flight broadband service.
In the fourth quarter, the Aviation division completed a major integration project, by combining
our Tacoma Park, Maryland facilities into operations at Moorestown, New Jersey, and reassigning key
managers for a more efficient structure. Said Mackay, Our opportunities in an improving aviation
market are significant, and we believe our integration initiative will translate into more
efficient operations and better margins for the future.
(more)
Page 2
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
Defense & Space Finishes the Year With Strong Profits
The EMS Defense & Space business maintained tight cost control in the fourth quarter and executed
effectively on its programs, including data-links for aircraft. This business achieved operating
profit of $1.8 million and Adjusted EBITDA of $2.7 million on revenues of $17.8 million in the
fourth quarter of 2010, a significant increase over Q4 2009 breakeven operating profit and Adjusted
EBITDA of $0.9 million on revenues of $16.4 million. Fourth-quarter Adjusted EBITDA as a
percentage of sales increased to 15% in 2010 compared with 5% in 2009.
The Defense & Space backlog was $73 million at the end of the quarter, compared with $71 million at
the beginning of the quarter. The backlog has been affected by delays in orders that management
believes are related to uncertainty in defense budgets.
Guidance for 2011 Fiscal Year
Mackay commented, We are very encouraged by the financial success of 2010 and the business trends
developing in our major market sectors. We expect that all of our businesses, except the Defense
& Space segment, will show higher sales and profits in 2011. As a result, we believe that we can
achieve net growth in consolidated revenues of close to 10% in 2011. This growth assumption is
based in part on the broadly improving outlook for the AeroConnectivity and Global Resource
Management sectors, as well as additional growth from the introduction of new products into these
sectors.
Expectations in 2011 consider normal seasonality in which the second half of the year is typically
much stronger than the first half. The Company also expects the 2011 second half revenues to be
higher due to product rollouts beginning earlier in the year.
For the full year 2011, management expects consolidated revenues in the range of $385 $405
million, and Adjusted EBITDA in the range of $43 $46 million. The Company expects Adjusted
Earnings Per Share in the range of $1.10 $1.25 per share, assuming an effective income tax rate
of 20%. The forecasted effective income tax rate is higher than in recent years due to the
expectation of relatively higher profits to be earned in the U.S. in 2011. The 2011 guidance does
not include potential costs associated with a recent announcement by one of our shareholders that
it intends to nominate four directors to the EMS Board.
(more)
Page 3
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
Mackay concluded, Our strategy to increase the value of the company is simple. It is built on
increasing profitability, greater strategic alignment, and growth. In 2010, profits were up
substantially, and we began important initiatives to increase alignment in the Aviation and Global
Resource Management businesses. We expect to see the results of these efforts in revenue growth in
2011 and beyond. We firmly believe this is the best path to maximize long-term shareholder value,
added Mackay.
Non-GAAP Financial Measures
This press release contains information regarding our earnings from continuing operations before
interest expense, income taxes, depreciation and amortization and excluding impairment-related
charges, acquisition-related items and stock-based compensation (Adjusted EBITDA). The press
release also references earnings per share from continuing operations, excluding impairment-related
charges, acquisition-related items, and adjustments, if any, for changes to the valuation allowance
for deferred tax assets resulting from changes in judgment about the potential realization of these
assets (Adjusted Earnings Per Share). Each of these measures also excludes potential costs
associated with a recent announcement by one of our shareholders that it intends to nominate four
directors to the EMS Board. The Company believes that earnings that are based on these non-GAAP
financial measures provide useful information to investors, lenders and financial analysts because
(i) these measures are more comparable with the results for prior fiscal periods, and (ii) by
excluding the potential volatility related to the timing and extent of nonoperating activities,
such as acquisitions or revisions of the estimated value of post-closing earn-outs, such results
provide a useful means of evaluating the success of the Companys ongoing operating activities.
Also, the Company uses this information, together with other appropriate metrics, to set goals for
and measure the performance of its operating businesses, to determine managements incentive
compensation, and to assess the Companys compliance with debt covenants. Management further
considers Adjusted EBITDA an important indicator of operational strengths and performance of its
businesses. EBITDA measures are used historically by investors, lenders and financial analysts to
estimate the value of a company, to make informed investment decisions and evaluate performance.
Management believes that Adjusted EBITDA facilitates comparisons of our results of operations with
those of companies having different capital structures. In addition, a measure similar to Adjusted
EBITDA is a component of our bank lending agreement, which requires certain levels of Adjusted
EBITDA to be achieved by the Company. This information should not be considered in isolation or in
lieu of the Companys operating and other financial
information determined in accordance with GAAP. In addition, because EBITDA and adjustments to
EBITDA are not determined consistently by all entities, Adjusted EBITDA as presented may not be
comparable to similarly titled measures of other companies.
(more)
Page 4
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
We have not provided a quantitative reconciliation of projected Adjusted EBITDA or Adjusted
Earnings Per Share for 2011. Not all of the information necessary for quantitative reconciliation
is available to us at this time without unreasonable efforts; this is due primarily to variability
and difficulty in making accurate detailed forecasts and projections. Accordingly, we do not
believe that reconciling information for such projected figures would be meaningful.
About EMS Technologies, Inc.
EMS Technologies, Inc. (NASDAQ: ELMG) is a leading provider of wireless connectivity solutions over
satellite and terrestrial networks. EMS keeps people and systems connected, wherever they are on
land, at sea, in the air or in space. EMS enables universal mobility, visibility and intelligence
in two broad market sectors AeroConnectivity (through its Aviation and Defense & Space
businesses), and Global Resource Management (through its LXE and Global Tracking businesses).
Visit www.ems-t.com for more information.
There will be a conference call at 9:30 AM Eastern time on March 3, 2011, in which the
Companys management will discuss the financial results for the fourth quarter of 2010 and the
outlook for 2011. If you would like to participate in this
conference, please dial 1-888-674-0222
(international callers dial 1-201-604-0498) approximately 10 minutes before the call is scheduled
to begin. A taped replay of the conference call will be available through March 11, 2011, by
dialing 1-888-632-8973 and entering the replay code 61857298, followed by the # sign.
(International callers use 1-585-295-6791 and enter same replay
code.)
(more)
Page 5
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
Forward-Looking Statements
Statements contained in this press release regarding the Companys expectations for its financial
results for 2011 and the potential for various businesses and products are forward-looking
statements. Actual results could differ materially from those statements as a result of a wide
variety of factors. Such factors include, but are not limited to...
| economic conditions in the U.S. and abroad and their effect on capital spending in our principal markets; |
| difficulty predicting the timing of receipt of major customer orders, and the effect of customer timing decisions on our results; |
| our successful completion of technological development programs and the effects of technology that may be developed by, and patent rights that may be held or obtained by, competitors; |
| U.S. defense budget pressures on near-term spending priorities; |
| uncertainties inherent in the process of converting contract awards into firm contractual orders in the future; |
| volatility of foreign currency exchange rates relative to the U.S. dollar and their effect on purchasing power by international customers, and on the cost structure of the our operations outside the U.S., as well as the potential for realizing foreign exchange gains and losses associated with assets and liabilities denominated in foreign currencies; |
| successful resolution of technical problems, proposed scope changes, or proposed funding changes that may be encountered on contracts; |
| changes in our consolidated effective income tax rate caused by the extent to which actual taxable earnings in the U.S., Canada and other taxing jurisdictions may vary from expected taxable earnings, changes in tax laws, and the extent to which deferred tax assets are considered realizable; |
| successful transition of products from development stages to an efficient manufacturing environment; |
| changes in the rates at which our products are returned for repair or replacement under warranty; |
| customer response to new products and services, and general conditions in our target markets (such as logistics and space-based communications) and whether these responses and conditions develop according to our expectations; |
| the increased potential for asset impairment charges as unfavorable economic or financial market conditions or other developments might affect the estimated fair value of one or more of our business units; |
| the success of certain of our customers in marketing our line of high-speed commercial airline communications products as a complementary offering with their own lines of avionics products; |
| the availability of financing for various mobile and high-speed data communications systems; |
| risk that unsettled conditions in the credit markets may make it more difficult for some customers to obtain financing and adversely affect their ability to pay, which in turn could have an adverse impact on our business, operating results and financial condition; |
(more)
Page 6
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
| development of successful working relationships with local business and government personnel in connection with distribution and manufacture of products in foreign countries; |
| the demand growth for various mobile and high-speed data communications services; |
| our ability to attract and retain qualified senior management and other personnel, particularly those with key technical skills; |
| our ability to effectively integrate our acquired businesses, products or technologies into our existing businesses and products, and the risk that any such acquired businesses, products or technologies do not perform as expected, are subject to undisclosed or unanticipated liabilities, or are otherwise dilutive to our earnings; |
| the potential effects, on cash and results of discontinued operations, of final resolution of potential liabilities under warranties and representations that we made, and obligations assumed by purchasers, in connection with our dispositions of discontinued operations; |
| the availability, capabilities and performance of suppliers of basic materials, electronic components and sophisticated subsystems on which we must rely in order to perform according to contract requirements, or to introduce new products on the desired schedule; |
| uncertainties associated with U.S. export controls and the export license process, which restrict our ability to hold technical discussions with customers, suppliers and internal engineering resources and can reduce our ability to obtain sales from customers outside the U.S. or to perform contracts with the desired level of efficiency or profitability; |
| our ability to maintain compliance with the requirements of the Federal Aviation Administration and the Federal Communications Commission, and with other government regulations affecting our products and their production, service and functioning; and |
| costs associated with a recent announcement by one of shareholders that it intends to nominate four directors to our Board. |
Further information concerning relevant factors and risks are identified under the caption Risk
Factors in our Annual Report on Form 10-K for the year ended December 31, 2009.
(more)
Page 7
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
EMS Technologies, Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per-share data)
Consolidated Statements of Operations
(In millions, except per-share data)
Unaudited
Three Months Ended | Years Ended | |||||||||||||||
December 31 | December 31 | December 31 | December 31 | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 98.1 | 85.0 | 355.2 | 360.0 | |||||||||||
Cost of sales |
61.7 | 55.7 | 225.7 | 242.1 | ||||||||||||
Gross profit |
36.4 | 29.3 | 129.5 | 117.9 | ||||||||||||
Selling, general and administrative |
24.3 | 21.0 | 90.1 | 86.5 | ||||||||||||
Research and development |
5.9 | 5.1 | 20.9 | 18.9 | ||||||||||||
Impairment loss on goodwill and related charges |
| 19.9 | 0.4 | 19.9 | ||||||||||||
Acquisition-related items |
| 1.9 | 0.6 | 7.2 | ||||||||||||
Operating income (loss) |
6.2 | (18.6 | ) | 17.5 | (14.6 | ) | ||||||||||
Interest income |
0.1 | | 0.5 | 0.2 | ||||||||||||
Interest expense |
(0.4 | ) | (0.4 | ) | (1.9 | ) | (2.2 | ) | ||||||||
Foreign
exchange gain (loss) |
0.2 | (0.4 | ) | (0.2 | ) | 0.6 | ||||||||||
Acquisition-related FX adjustment |
| | | (1.4 | ) | |||||||||||
Earnings (loss) from continuing operations
before income taxes |
6.1 | (19.4 | ) | 15.9 | (17.4 | ) | ||||||||||
Income tax (expense) benefit |
| | (1.8 | ) | 4.3 | |||||||||||
Earnings (loss) from continuing operations |
6.1 | (19.4 | ) | 14.1 | (13.1 | ) | ||||||||||
Loss from
discontinued operations, net of tax |
| (6.2 | ) | | (7.0 | ) | ||||||||||
Net earnings (loss) |
$ | 6.1 | (25.6 | ) | 14.1 | (20.1 | ) | |||||||||
Net earnings (loss) per share: |
||||||||||||||||
From continuing operations |
$ | 0.40 | (1.27 | ) | 0.92 | (0.87 | ) | |||||||||
From discontinued operations |
| (0.41 | ) | | (0.45 | ) | ||||||||||
Earnings (loss) per share |
$ | 0.40 | (1.68 | ) | 0.92 | (1.32 | ) | |||||||||
Outstanding shares diluted |
15.3 | 15.2 | 15.2 | 15.2 | ||||||||||||
Supplemental data from continuing operations: |
||||||||||||||||
Adjusted EBITDA |
$ | 12.2 | 8.5 | 40.3 | 35.7 | |||||||||||
Adjusted EPS |
0.40 | 0.16 | 0.97 | 1.00 | ||||||||||||
Net cash provided by operating activities |
17.4 | 9.3 | 39.1 | 42.3 |
(more)
Page 8
NEWS RELEASE (Continued) |
||
Atlanta, GA March 3, 2011 |
EMS Technologies, Inc. and Subsidiaries
Consolidated Condensed Balance Sheets
(In millions)
Unaudited
Consolidated Condensed Balance Sheets
(In millions)
Unaudited
December 31 | December 31 | |||||||
2010 | 2009 | |||||||
Assets |
||||||||
Cash and cash equivalents |
$ | 55.9 | 47.2 | |||||
Trade accounts receivable |
68.7 | 61.0 | ||||||
Revenue in excess of billings on long-term contracts |
22.0 | 25.3 | ||||||
Inventories |
41.6 | 40.7 | ||||||
Other current assets |
11.3 | 23.3 | ||||||
Current assets |
199.5 | 197.5 | ||||||
Net property, plant and equipment |
48.4 | 47.9 | ||||||
Goodwill |
60.5 | 60.3 | ||||||
Other assets |
64.5 | 68.4 | ||||||
$ | 372.9 | 374.1 | ||||||
Liabilities and Shareholders Equity |
||||||||
Current installments of long-term debt |
$ | 1.5 | 1.4 | |||||
Accounts payable |
25.0 | 27.3 | ||||||
Other current liabilities |
47.1 | 70.6 | ||||||
Current liabilities |
73.6 | 99.3 | ||||||
Long-term debt, less current installments |
27.5 | 26.4 | ||||||
Other noncurrent liabilities |
14.8 | 11.3 | ||||||
Shareholders equity |
257.0 | 237.1 | ||||||
$ | 372.9 | 374.1 | ||||||
(more)
Page 9
NEWS RELEASE (Continued) |
||
Atlanta, GA March 3, 2011 |
EMS Technologies, Inc. and Subsidiaries
Segment Data
(In millions)
Unaudited
Segment Data
(In millions)
Unaudited
Three Months Ended | Years Ended | |||||||||||||||
December 31 | December 31 | December 31 | December 31 | |||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
||||||||||||||||
Aviation |
$ | 31.1 | 30.3 | 106.8 | 124.0 | |||||||||||
Defense & Space |
17.8 | 16.4 | 67.9 | 91.6 | ||||||||||||
LXE |
38.7 | 29.5 | 141.2 | 109.4 | ||||||||||||
Global Tracking |
10.9 | 8.8 | 40.7 | 35.0 | ||||||||||||
Less intercompany sales |
(0.4 | ) | | (1.4 | ) | | ||||||||||
Total |
$ | 98.1 | 85.0 | 355.2 | 360.0 | |||||||||||
Operating income (loss) |
||||||||||||||||
Aviation |
$ | 2.7 | 2.5 | 6.3 | 11.0 | |||||||||||
Defense & Space |
1.8 | | 6.1 | 7.3 | ||||||||||||
LXE |
2.5 | (0.4 | ) | 7.5 | (6.6 | ) | ||||||||||
Global Tracking |
0.6 | 0.3 | 1.5 | 0.4 | ||||||||||||
Corporate & Other |
(1.4 | ) | 0.8 | (2.9 | ) | 0.4 | ||||||||||
Impairment loss and related charges |
| (19.9 | ) | (0.4 | ) | (19.9 | ) | |||||||||
Acquisition-related items |
| (1.9 | ) | (0.6 | ) | (7.2 | ) | |||||||||
Total |
$ | 6.2 | (18.6 | ) | 17.5 | (14.6 | ) | |||||||||
Adjusted EBITDA |
||||||||||||||||
Aviation |
$ | 5.0 | 4.6 | 14.3 | 20.2 | |||||||||||
Defense & Space |
2.7 | 0.9 | 9.5 | 10.9 | ||||||||||||
LXE |
3.3 | 0.2 | 11.3 | (3.2 | ) | |||||||||||
Global Tracking |
1.7 | 1.1 | 5.4 | 4.3 | ||||||||||||
Corporate & Other |
(0.5 | ) | 1.7 | (0.2 | ) | 3.5 | ||||||||||
Total |
$ | 12.2 | 8.5 | 40.3 | 35.7 | |||||||||||
(more)
Page 10
NEWS RELEASE (Continued) |
||
Atlanta, GA March 3, 2011 |
Non-GAAP Financial Measures
This press release contains information regarding our earnings from continuing operations and
earnings per share, excluding impairment loss and related charges, acquisition-related items, and
an acquisition-related foreign exchange adjustment, (Adjusted Earnings Per Share) and earnings
before interest expense, income taxes, depreciation and amortization and excluding impairment loss
and related charges, the acquisition-related items and acquisition-related foreign exchange
adjustment (Adjusted EBITDA). The Company believes that earnings that are based on these
non-GAAP financial measures provide useful information to investors, lenders and financial analysts
because (i) these measures are more comparable with the results for prior fiscal periods, and (ii)
by excluding the potential volatility related to the timing and extent of nonoperating activities,
such as acquisitions or revisions of the estimated value of post-closing earn-outs, such results
provide a useful means of evaluating the success of the Companys ongoing operating activities.
Also, the Company uses this information, together with other appropriate metrics, to set goals for
and measure the performance of its operating businesses, to determine managements incentive
compensation, and to assess the Companys compliance with debt covenants. Management further
considers Adjusted EBITDA an important indicator of operational strengths and performance of its
businesses. EBITDA measures are used historically by investors, lenders and financial analysts to
estimate the value of a company, to make informed investment decisions and evaluate performance.
Management believes that Adjusted EBITDA facilitates comparisons of our results of operations with
those of companies having different capital structures. In addition, a measure similar to Adjusted
EBITDA is a component of our bank lending agreement, which requires certain levels of Adjusted
EBITDA to be achieved by the Company. This information should not be considered in isolation or in
lieu of the Companys operating and other financial information determined in accordance with GAAP.
In addition, because EBITDA and adjustments to EBITDA are not determined consistently by all
entities, Adjusted EBITDA as presented may not be comparable to similarly titled measures of other
companies.
Following is a reconciliation of our net earnings (loss) and earnings (loss) per share to the
non-GAAP financial measures that exclude impairment loss and related charges, acquisition-related
items and an acquisition-related foreign exchange adjustment for the fourth quarters and years of
2010 and 2009 (in millions, except per share data unaudited):
Three Months Ended | Years Ended | |||||||||||||||||||||||||||||||
December 31, 2010 | December 31, 2009 | December 31, 2010 | December 31, 2009 | |||||||||||||||||||||||||||||
Net | Earnings | Net | Earnings | |||||||||||||||||||||||||||||
Net | Earnings | earnings | (loss) | Net | Earnings | earnings | (loss) | |||||||||||||||||||||||||
earnings | per share | (loss) | per share | earnings | per share | (loss) | per share | |||||||||||||||||||||||||
As reported |
$ | 6.1 | 0.40 | (25.6 | ) | (1.68 | ) | 14.1 | 0.92 | (20.1 | ) | (1.32 | ) | |||||||||||||||||||
Less net loss from discontinued
operations, net of tax |
| | (6.2 | ) | (0.41 | ) | | | (7.0 | ) | (0.45 | ) | ||||||||||||||||||||
Earnings (loss) from
continuing operations |
6.1 | 0.40 | (19.4 | ) | (1.27 | ) | 14.1 | 0.92 | (13.1 | ) | (0.87 | ) | ||||||||||||||||||||
Impairment loss and related
charges, net of tax |
| | 19.9 | 1.31 | 0.2 | 0.01 | 19.9 | 1.31 | ||||||||||||||||||||||||
Acquisition-related items |
| | 1.9 | 0.12 | 0.6 | 0.04 | 7.2 | 0.47 | ||||||||||||||||||||||||
Acquisition-related foreign
exchange adjustment |
| | | | | | 1.4 | 0.09 | ||||||||||||||||||||||||
As adjusted |
$ | 6.1 | 0.40 | 2.4 | 0.16 | 14.9 | 0.97 | 15.4 | 1.00 | |||||||||||||||||||||||
(more)
Page 11
NEWS RELEASE (Continued) Atlanta, GA March 3, 2011 |
Following is a reconciliation of net earnings (loss) to Adjusted EBITDA and earnings (loss)
from continuing operations before income taxes to Adjusted EBITDA by segment, for the three months
and years ended December 31, 2010 and 2009 (in millions unaudited):
Global | Corp & | |||||||||||||||||||||||
Aviation | D&S | LXE | Tracking | Other | Total | |||||||||||||||||||
Three
Months Ended December 31, 2010 |
||||||||||||||||||||||||
Net earnings |
$ | 6.1 | ||||||||||||||||||||||
Income tax expense |
| |||||||||||||||||||||||
Earnings (loss) before income taxes |
$ | 2.7 | 1.8 | 2.5 | 0.7 | (1.6 | ) | 6.1 | ||||||||||||||||
Interest expense |
| | | | 0.4 | 0.4 | ||||||||||||||||||
Depreciation and amortization |
2.2 | 0.9 | 0.8 | 0.9 | 0.3 | 5.1 | ||||||||||||||||||
Stock-based compensation |
0.1 | | | 0.1 | 0.4 | 0.6 | ||||||||||||||||||
Adjusted EBITDA |
$ | 5.0 | 2.7 | 3.3 | 1.7 | (0.5 | ) | $ | 12.2 | |||||||||||||||
Year
Ended December 31, 2010 |
||||||||||||||||||||||||
Net earnings |
$ | 14.1 | ||||||||||||||||||||||
Income tax expense |
1.8 | |||||||||||||||||||||||
Earnings (loss) before income taxes |
$ | 5.9 | 6.1 | 7.7 | 1.6 | (5.4 | ) | 15.9 | ||||||||||||||||
Interest expense |
| | | | 1.9 | 1.9 | ||||||||||||||||||
Depreciation and amortization |
8.1 | 3.2 | 3.3 | 3.7 | 1.2 | 19.5 | ||||||||||||||||||
Impairment loss on goodwill and related charges |
| | | | 0.4 | 0.4 | ||||||||||||||||||
Stock-based compensation |
0.3 | 0.2 | 0.3 | 0.1 | 1.1 | 2.0 | ||||||||||||||||||
Acquisition-related items |
| | | | 0.6 | 0.6 | ||||||||||||||||||
Adjusted EBITDA |
$ | 14.3 | 9.5 | 11.3 | 5.4 | (0.2 | ) | $ | 40.3 | |||||||||||||||
Three
Months Ended December 31, 2009 |
||||||||||||||||||||||||
Net loss |
$ | (25.6 | ) | |||||||||||||||||||||
Loss from discontinued operations, net of tax |
6.2 | |||||||||||||||||||||||
Income tax expense |
| |||||||||||||||||||||||
Earnings (loss) from continuing operations
before income taxes |
$ | 2.3 | (0.1 | ) | (20.3 | ) | 0.3 | (1.6 | ) | (19.4 | ) | |||||||||||||
Interest expense |
| 0.1 | (0.1 | ) | | 0.4 | 0.4 | |||||||||||||||||
Depreciation and amortization |
2.3 | 0.9 | 0.7 | 0.8 | 0.3 | 5.0 | ||||||||||||||||||
Impairment loss on goodwill and related charges |
| | 19.9 | | | 19.9 | ||||||||||||||||||
Stock-based compensation |
| | | | 0.7 | 0.7 | ||||||||||||||||||
Acquisition-related items |
| | | | 1.9 | 1.9 | ||||||||||||||||||
Adjusted EBITDA |
$ | 4.6 | 0.9 | 0.2 | 1.1 | 1.7 | $ | 8.5 | ||||||||||||||||
(more)
Page 12
NEWS RELEASE (Continued) Atlanta, GA Mar. 3, 2011 |
Global | Corp & | |||||||||||||||||||||||
Aviation | D&S | LXE | Tracking | Other | Total | |||||||||||||||||||
Year
Ended December 31, 2009 |
||||||||||||||||||||||||
Net loss |
$ | (20.1 | ) | |||||||||||||||||||||
Loss from discontinued operations, net of tax |
7.0 | |||||||||||||||||||||||
Income tax benefit |
(4.3 | ) | ||||||||||||||||||||||
Earnings (loss) from continuing operations
before income taxes |
$ | 11.4 | 7.3 | (26.7 | ) | 0.8 | (10.2 | ) | (17.4 | ) | ||||||||||||||
Interest expense |
0.1 | | 0.1 | | 2.0 | 2.2 | ||||||||||||||||||
Depreciation and amortization |
8.6 | 3.4 | 3.3 | 3.5 | 1.2 | 20.0 | ||||||||||||||||||
Impairment loss on goodwill and related charges |
| | 19.9 | | | 19.9 | ||||||||||||||||||
Stock-based compensation |
0.1 | 0.2 | 0.2 | | 1.9 | 2.4 | ||||||||||||||||||
Acquisition-related items |
| | | | 7.2 | 7.2 | ||||||||||||||||||
Acquisition-related foreign exchange adjustment |
| | | | 1.4 | 1.4 | ||||||||||||||||||
Adjusted EBITDA |
$ | 20.2 | 10.9 | (3.2 | ) | 4.3 | 3.5 | $ | 35.7 | |||||||||||||||
(more)
Page 13
NEWS RELEASE (Continued) Atlanta, GA Mar. 3, 2011 |
Additional Information and Where To Find It
In connection with the proxy contest initiated by MMI Investments, L.P., the Company will be filing
documents with the Securities and Exchange Commission (the SEC), including the filing by the
Company of a proxy statement. Shareholders are urged to read the Proxy Statement for the 2011
Annual Meeting of Shareholders when it becomes available, as well as other documents filed with the
SEC, because they will contain important information. The final Proxy Statement will be mailed to
shareholders of the Company. Shareholders may obtain free copies of these documents (when they are
available) and other documents filed with the SEC at the Companys website (www.ems-t.com) under
the heading Investor Relations, the SECs website at (www.sec.gov), or by contacting the
Company at (770) 729-6512.
Information Regarding Participants
The Company, its directors and certain of its officers and employees are participants in a
solicitation of proxies in connection with the Companys 2011 Annual Meeting of Shareholders.
Information with respect to the identity of these participants in the solicitation and a
description of their direct or indirect interest in the Company, by security holdings or otherwise,
is contained in the Schedule 14A filed by the Company with the SEC on February 16, 2011.
Shareholders may obtain free copies of this information at the Companys website (www.ems-t.com)
under the heading Investor Relations, the SECs website at (www.sec.gov), or by contacting the
Company at (770) 729-6512 or 660 Engineering Drive, Norcross, Georgia 30092, Attention: Secretary.
As of the date hereof, the Companys directors, officer and employees who are participants
collectively own an aggregate of: (1) 564,488 shares of common stock of the Company, including
options that are currently exercisable or will be exercisable within 60 days, and (2) 61,193
nonvoting phantom-share units.
For further information please contact:
|
Gary B. Shell | |
Chief Financial Officer | ||
(770) 729-6512 |
###
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