Attached files
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| 8-K - PHAZAR CORP 8-K - PHAZAR CORP | a6698330.htm |
Exhibit 99.1
PHAZAR CORP Announces Third Quarter 2011 Financial Results
MINERAL WELLS, Texas--(BUSINESS WIRE)--April 26, 2011--PHAZAR CORP, (Nasdaq: ANTP) announced today the unaudited results of operations for the quarter ended March 31, 2011.
Third Quarter Fiscal Year 2011
Revenues for the quarter at $1,991,678 were relatively flat compared to $2,003,995 for the recast third quarter of fiscal year 2010. Prior year’s numbers are recast to reflect the change in our fiscal year end to June 30th from May 31st.
The gross profit margin for the quarter, at 36% is down 12 percentage points from the 48% gross margin reported in the comparable period last year. Start up expenses related to new tower designs for a customer order along with continued increase in plant utilization overhead on lower throughput were the primary factors in the decline.
Sales and administrative expenses were down 29% to $707,997 from $993,975 in the prior year, reflecting continued increase in plant utilization overhead on lower throughput and lower wages in both Engineering and Marketing Departments. Research and development costs of $94,574 were also down $101,358 or 52% from $195,932 last year.
On January 4, 2011, the Company announced that after a thorough review of the progress and status of the True Mesh Network Radio program the Board of Directors concluded that commercial viability and profitability was unlikely to be achievable in the foreseeable future and voted to discontinue further development. As a result, the Company has recorded a charge of $478,361 for discontinued operations, net of tax for the quarter ended March 31, 2011.
The Company recognized a net loss of $550,841, or $0.24 per share for the third quarter, compared to a net loss of $123,821, or $0.05 per share, in last year’s fiscal third quarter.
The continuing budget struggles in Congress would appear to have impacted our federal governmental sales and incoming orders. We have clearly seen a subdued level of bid opportunities in recent months. And severe weather, particularly on the eastern seaboard, negatively impacted and delayed commercial orders and activity in January and February.
Nine Month Period Ending March 31, 2011
The Company reported revenues for the nine-month period of $6,849,510, an increase of $832,818, or 14% compared to $6,016,692 for the comparable recast period last year. Net loss for the nine-month period was $274,456, or $0.12 per share compared to a net loss of $411,315, or $0.18 per share for the comparable period last year.
Backlog of Orders
The Company’s backlog of orders on March 31, 2011, totaled $1,985,379 up 26% compared to backlog of $1,575,399 at March 31, 2010 and down 31% from May 31, 2010.
More information and analysis of PHAZAR CORP’s financial results will be provided in the management discussion and analysis of financial condition and results of operations in the Form 10-Q for the third quarter ended March 31, 2011, estimated to be filed with the Securities and Exchange Commission in mid April, 2011.
The Form 10-Q will also be available at the SEC’s website at www.sec.gov and PHAZAR CORP’S website at www.phazarcorp.com.
Product information is available at www.antennaproducts.com and www.phazar.com.
The common stock of PHAZAR CORP is listed on the NASDAQ Capital Market under the trading symbol “ANTP”. This press release contains forward-looking information within the meaning of Section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performances and underlying assumption and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results, or outcomes to differ materially from those expressed in the forward-looking statements. The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, management’s examination of historical operating trends, data contained in the Company’s records and other data available from third parties, but there can be no assurance that management’s expectations, beliefs or projections will result, or be achieved, or accomplished.
| PHAZAR CORP AND SUBSIDIARIES | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2011 AND 2010 | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| March 31 | March 31 | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Sales and contract revenues | $ | 1,991,678 | $ | 2,003,995 | $ | 6,849,510 | $ | 6,016,692 | ||||||||
| Cost of sales and contracts | 1,276,435 | 1,036,638 | 4,001,801 | 3,165,846 | ||||||||||||
| Gross profit | 715,243 | 967,357 | 2,847,709 | 2,850,846 | ||||||||||||
| Gross profit margin % | 36 | % | 48 | % | 42 | % | 47 | % | ||||||||
| Selling, general and administration expenses | 707,997 | 993,975 | 2,048,735 | 2,693,732 | ||||||||||||
| Research and development costs | 94,574 | 195,932 | 547,106 | 824,329 | ||||||||||||
| Total selling, general and administration expenses | 802,571 | 1,189,907 | 2,595,841 | 3,518,061 | ||||||||||||
| Operating Income (loss) | (87,328 | ) | (222,550 | ) | 251,868 | (667,215 | ) | |||||||||
| Other income | ||||||||||||||||
| Interest income (net) | 13,307 | (2,425 | ) | 40,853 | 34,996 | |||||||||||
| Other income | 51 | 37,367 | 21,821 | 14,147 | ||||||||||||
| Total other income | 13,358 | 34,942 | 62,674 | 49,143 | ||||||||||||
| Income (loss) from operations before income taxes | (73,970 | ) | (187,608 | ) | 314,542 | (618,072 | ) | |||||||||
| Income tax expense (benefit) | (1,490 | ) | (63,787 | ) | 110,637 |
(206,757 |
) |
|||||||||
| Net Income (loss) from continuing operations | (72,480 | ) | (123,821 | ) | 203,905 | (411,315 | ) | |||||||||
| Discontinued operations expense | 724,789 | - | 724,789 | - | ||||||||||||
| Income tax benefit from discontinued operations | (246,428 | ) | - | (246,428 | ) | - | ||||||||||
| Net loss | $ | (550,841 | ) | $ | (123,821 | ) | $ | (274,456 | ) | $ | (411,315 | ) | ||||
| Basic income (loss) per common share | ||||||||||||||||
| Continuing operations | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.09 | $ | (0.18 | ) | |||||
| Discontinued operations | (0.21 | ) | - | (0.21 | ) | - | ||||||||||
| Net Income | $ | (0.24 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.18 | ) | ||||
| Diluted loss per common share | ||||||||||||||||
| Continuing operations | $ | (0.03 | ) | $ | (0.05 | ) | $ | 0.09 | $ | (0.18 | ) | |||||
| Discontinued operations | (0.21 | ) | - | (0.21 | ) | - | ||||||||||
| Net Income | $ | (0.24 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.18 | ) | ||||
| Basic weighted average of common shares outstanding | 2,307,588 | 2,301,608 | 2,305,987 | 2,299,556 | ||||||||||||
| Diluted weighted average of common shares outstanding | 2,310,510 | 2,301,608 |
2,308,872 |
2,299,556 | ||||||||||||
| PHAZAR CORP AND SUBSIDIARIES | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| MARCH 31, 2011 AND MAY 31, 2010 | |||||||||
| March 31, 2011 | May 31, 2010 | ||||||||
| (Unaudited) | (Audited) | ||||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | $ | 1,012,081 | $ | 2,030,774 | |||||
| Accounts receivable: | |||||||||
| Trade, net of allowance for doubtful accounts of $0 | |||||||||
| as of March 31, 2011 and May 31, 2010 | 1,202,170 | 748,671 | |||||||
| Inventories | 2,967,820 | 3,481,074 | |||||||
| Prepaid expenses and other assets | 45,761 | 95,586 | |||||||
| Income taxes receivable | 261,231 | 316,374 | |||||||
| Deferred income taxes | 96,441 | 105,314 | |||||||
| Total current assets | 5,585,504 | 6,777,793 | |||||||
| Property and equipment, net | 1,076,408 | 1,170,090 | |||||||
| Note receivable | 797,993 | 432,146 | |||||||
| Long - term deferred income tax | 330,084 | 232,188 | |||||||
| TOTAL ASSETS | $ | 7,789,989 | $ | 8,612,217 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Accounts payable | $ | 300,606 | $ | 477,111 | |||||
| Accrued liabilities | 603,270 | 899,072 | |||||||
| Federal income tax liability | - | - | |||||||
| Deferred revenues | - | 207,514 | |||||||
| Total current liabilities | 903,876 | 1,583,697 | |||||||
| TOTAL LIABILITIES | 903,876 | 1,583,697 | |||||||
| COMMITMENTS AND CONTINGENCIES | - | - | |||||||
| SHAREHOLDERS’ EQUITY | |||||||||
| Preferred Stock, $1 par, 2,000,000 shares authorized, none issued | |||||||||
| or outstanding, attributes to be determined when issued | - | - | |||||||
| Common stock, $0.01 par, 6,000,000 shares authorized | |||||||||
| and 2,382,728 and 2,378,428 issued and outstanding | 23,828 | 23,785 | |||||||
| Additional paid in capital | 4,498,773 | 4,403,261 | |||||||
| Treasury stock, at cost, 74,691 shares in May 31, 2010 and March 31, 2011 | (215,918 | ) | (215,918 | ) | |||||
| Retained earnings | 2,579,430 | 2,817,392 | |||||||
| Total shareholders’ equity | 6,886,113 | 7,028,520 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 7,789,989 | $ | 8,612,217 | |||||
| PHAZAR CORP AND SUBSIDIARIES | ||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| FOR THE NINE MONTHS ENDED MARCH 31, 2011 AND 2010 | ||||||||
| (Unaudited) | ||||||||
| Nine Months Ended | ||||||||
| March 31, | March 31, | |||||||
| 2011 | 2010 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (274,456 | ) | $ | (411,315 | ) | ||
| Adjustments to reconcile net loss to net cash | ||||||||
| used by operating activities: | ||||||||
| Depreciation | 98,784 | 105,177 | ||||||
| Stock based compensation | 84,829 | 184,410 | ||||||
| Deferred federal income tax | (104,040 | ) | (58,998 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 4,887 | 404,515 | ||||||
| Inventories | 463,899 | (277,857 | ) | |||||
| Income taxes receivable | 25,538 | (179,405 | ) | |||||
| Prepaid expenses | 29,781 | (375 | ) | |||||
| Accounts payable | (496,463 | ) | (53,938 | ) | ||||
| Accrued expenses | 143,190 | 75,314 | ||||||
| Deferred revenues | (28,704 | ) | 142,705 | |||||
| Net cash used by operating activities | (52,755 | ) | (69,767 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Funding of note receivable | (323,000 | ) | (379,993 | ) | ||||
| Purchase of property and equipment | (16,003 | ) | (148,760 | ) | ||||
| Net cash used by investing activities | (339,003 | ) | (528,753 | ) | ||||
| Net decrease in cash and cash equivalents | (391,758 | ) | (598,520 | ) | ||||
| CASH AND CASH EQUIVALENTS, beginning of period | 1,403,839 | 3,036,602 | ||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 1,012,081 | $ | 2,438,082 | ||||
CONTACT:
PHAZAR CORP
Kathy Kindle, 940-325-3301
Fax:
940-325-0716
kindle@phazarcorp.com