Attached files
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| 8-K - FORM 8-K - PRO DEX INC | d253537d8k.htm |
Exhibit 99.1
| Contact: | Mark Murphy, Chief Executive Officer | |
| (949) 769-3200 |
For Immediate Release
PRO-DEX, INC. ANNOUNCES FISCAL 2012 FIRST QUARTER RESULTS
IRVINE, CA, November 9, 2011-PRO-DEX, INC. (NasdaqCM: PDEX) today announced financial results for its fiscal first quarter ended September 30, 2011.
Sales for the quarter ended September 30, 2011 were $6.0 million, 3% higher than sales of $5.8 million for the corresponding quarter in 2010, due primarily to increases in sales of the Company’s medical device products and fractional horsepower motors.
Operating income was $457,000 for the quarter, a 13% increase from operating income of $405,000 in the corresponding 2010 period.
Net income for the quarter was $446,000, or $0.14 per diluted share, which represents a 30% improvement from net income of $342,000, or $0.10 per diluted share in the corresponding 2010 quarter.
Gross profit for the quarter ended September 30, 2011 increased to $2.3 million, a 38% gross profit margin, compared to gross profit of $2.2 million, a 37% gross profit margin, for the same year-ago period.
Mark Murphy, the Company’s President and Chief Executive Officer, commented, “We were pleased with our operating results this quarter. Medical device sales remained strong as increased year-over-year sales to our second-largest customer more than offset decreased year-over-year sales to our largest customer. In addition, we were happy to see an increase in sales of our fractional horsepower motors. While these results are pleasing, our focus remains on the diversification of our revenue base. In the process, we continue to control expenses and strengthen our balance sheet, as we generated $349,000 of operating cash during the quarter.”
Teleconference Information:
Investors and analysts are invited to listen to a broadcast review of the Company’s fiscal 2012 first quarter financial results today at 9:30 a.m. Eastern Time (6:30 a.m. Pacific Time) that may be accessed by visiting the Company’s website at www.pro-dex.com. The conference call may also be accessed at www.InvestorCalendar.com. Investors and analysts who would like to participate in the conference call may do so via telephone at (877) 407-8033, or at (201) 689-8033 if calling from outside the U.S.
For those who cannot access the live broadcast, a replay will be available approximately two hours after the completion of the call until midnight (Eastern Time) on November 22, 2011 by calling (877) 660-6853, or (201) 612-7415 if calling from outside the U.S., and then entering account number 286 and conference I.D. number 382391. An online archive of the broadcast will be available on the Company’s website www.pro-dex.com for a period of 365 days.
Pro-Dex, Inc., with operations in California, Oregon and Nevada, specializes in bringing speed to market in the development and manufacture of technology-based solutions that incorporate powered surgical device drive systems, embedded motion control and fractional horsepower DC motors, serving the medical, dental, semi-conductor, scientific research and aerospace markets. Pro-Dex’s products are found in hospitals, dental offices, medical engineering labs, commercial and military aircraft, scientific research facilities and high tech manufacturing operations around the world. For more information, visit the Company’s website at www.pro-dex.com.
Statements herein concerning the Company’s plans, growth and strategies may include ‘forward-looking statements’ within the context of the federal securities laws. Statements regarding the Company’s future events, developments and future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company’s actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company’s filings with the Securities and Exchange Commission.
(tables follow)
PRO-DEX, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
| September 30, 2011 | June 30, 2011 | |||||||
| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 4,907,000 | $ | 4,689,000 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $8,000 at September 30, 2011 and $7,000 at June 30, 2011 |
2,330,000 | 3,128,000 | ||||||
| Other receivables |
24,000 | 12,000 | ||||||
| Inventories |
4,041,000 | 3,703,000 | ||||||
| Prepaid expenses |
264,000 | 145,000 | ||||||
| Deferred income taxes |
162,000 | 163,000 | ||||||
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| Total current assets |
11,728,000 | 11,840,000 | ||||||
| Property, plant, equipment and leasehold improvements, net |
3,534,000 | 3,661,000 | ||||||
| Other assets |
53,000 | 60,000 | ||||||
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| Total assets |
$ | 15,315,000 | $ | 15,561,000 | ||||
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 1,163,000 | $ | 1,207,000 | ||||
| Accrued expenses |
1,804,000 | 2,379,000 | ||||||
| Income taxes payable |
80,000 | 78,000 | ||||||
| Current portion of bank term loan |
357,000 | 357,000 | ||||||
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| Total current liabilities |
3,404,000 | 4,021,000 | ||||||
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| Non-current liabilities: |
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| Bank term loan |
685,000 | 774,000 | ||||||
| Deferred income taxes |
162,000 | 163,000 | ||||||
| Deferred rent |
282,000 | 279,000 | ||||||
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| Total non-current liabilities |
1,129,000 | 1,216,000 | ||||||
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| Total liabilities |
4,533,000 | 5,237,000 | ||||||
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| Commitments and contingencies |
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| Shareholders’ equity: |
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| Common shares; no par value; 50,000,000 shares authorized; 3,272,350 shares issued and outstanding at September 30, 2011 and at June 30, 2011 |
16,756,000 | 16,744,000 | ||||||
| Accumulated deficit |
(5,974,000 | ) | (6,420,000 | ) | ||||
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| Total shareholders’ equity |
10,782,000 | 10,324,000 | ||||||
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| Total liabilities and shareholders’ equity |
$ | 15,315,000 | $ | 15,561,000 | ||||
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PRO-DEX, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
| For The Three Months Ended September 30, |
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| 2011 | 2010 | |||||||
| Net sales |
$ | 6,030,000 | $ | 5,829,000 | ||||
| Cost of sales |
3,701,000 | 3,645,000 | ||||||
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| Gross profit |
2,329,000 | 2,184,000 | ||||||
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| Operating expenses: |
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| Selling expenses |
374,000 | 424,000 | ||||||
| General and administrative expenses |
836,000 | 764,000 | ||||||
| Research and development costs |
662,000 | 591,000 | ||||||
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| Total operating expenses |
1,872,000 | 1,779,000 | ||||||
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| Income from operations |
457,000 | 405,000 | ||||||
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| Other income (expense): |
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| Interest expense, net |
(10,000 | ) | (57,000 | ) | ||||
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| Total other income (expense) |
(10,000 | ) | (57,000 | ) | ||||
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| Income before provision for income taxes |
447,000 | 348,000 | ||||||
| Provision for income taxes |
1,000 | 6,000 | ||||||
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| Net income |
$ | 446,000 | $ | 342,000 | ||||
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| Net income per share: |
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| Basic |
$ | 0.14 | $ | 0.11 | ||||
| Diluted |
$ | 0.14 | $ | 0.10 | ||||
| Weighted average shares outstanding—basic |
3,272,350 | 3,251,850 | ||||||
| Weighted average shares outstanding—diluted |
3,280,045 | 3,263,366 | ||||||
PRO-DEX, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| For The Three Months Ended September 30, |
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| 2011 | 2010 | |||||||
| Cash flows from operating activities: |
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| Net income |
$ | 446,000 | $ | 342,000 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
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| Depreciation and amortization |
169,000 | 172,000 | ||||||
| Allowance for doubtful accounts |
1,000 | (12,000 | ) | |||||
| Stock based compensation |
12,000 | 4,000 | ||||||
| Deferred taxes |
— | (18,000 | ) | |||||
| Changes in: |
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| Accounts receivable |
785,000 | (18,000 | ) | |||||
| Inventories |
(338,000 | ) | (621,000 | ) | ||||
| Prepaid expenses |
(119,000 | ) | (36,000 | ) | ||||
| Other assets |
8,000 | 17,000 | ||||||
| Accounts payable and accrued expenses |
(616,000 | ) | 582,000 | |||||
| Income taxes payable |
1,000 | (31,000 | ) | |||||
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| Net cash provided by operating activities |
349,000 | 381,000 | ||||||
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| Cash flows from investing activities: |
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| Purchases of equipment and leasehold improvements |
(42,000 | ) | (6,000 | ) | ||||
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| Net cash used in investing activities |
(42,000 | ) | (6,000 | ) | ||||
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| Cash flows from financing activities: |
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| Principal payments on term loan |
(89,000 | ) | (100,000 | ) | ||||
| Principal payments on mortgage |
— | (1,528,000 | ) | |||||
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| Net cash used by financing activities |
(89,000 | ) | (1,628,000 | ) | ||||
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| Net increase (decrease) in cash and cash equivalents |
218,000 | (1,253,000 | ) | |||||
| Cash and cash equivalents, beginning of period |
4,689,000 | 3,794,000 | ||||||
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| Cash and cash equivalents, end of period |
$ | 4,907,000 | $ | 2,541,000 | ||||
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| Supplemental Information | ||||||||
| Cash payments for interest |
$ | 11,000 | $ | 68,000 | ||||
| Cash payments for income taxes |
— | $ | 55,000 | |||||