Attached files
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| 8-K - PHAZAR CORP 8-K - PHAZAR CORP | a50139634.htm |
Exhibit 99.1
PHAZAR CORP Announces Fiscal Second Quarter 2012 Financial Results
MINERAL WELLS, Texas--(BUSINESS WIRE)--January 19, 2012--PHAZAR CORP, (NASDAQ: ANTP) designs, manufactures and markets antennas, towers, support structures, masts and communication accessories worldwide. Today, PHAZAR CORP announces the unaudited results of operations for the three and six month periods ended December 31, 2011.
Second Quarter Fiscal Year 2012
Revenues for the quarter were $2,092,367 down $66,460, or 3% from $2,158,827 for the second quarter of fiscal year 2011. The sales declines are largely attributable to the same factors that impacted first fiscal quarter, significantly lower FAA related sales and lower commercial sales as wireless antenna projects continued to be delayed because of the now canceled ATT-T Mobile combination. The gross profit margin for the quarter, at 39% is down 3 basis points from the 42% gross margin reported in the comparable period last year.
Sales and administrative expenses were up 29% to $719,588 from $555,949 in the prior year, reflecting a higher level of marketing wages and commission expense. Research and development costs of $127,398 were also up $112,422 from $14,976 last year primarily due to engineering costs on new antenna designs.
The Company recognized net income of $4,471, or $0.00 per share for the second quarter, compared to a net income of $23,682, or $0.01 per share, in last year’s fiscal second quarter.
Six Month Period Ending December 31, 2011
The Company reported revenues for the six-month period of $3,507,585, a decrease of $1,175,381, or 25% compared to $4,682,966 for the comparable period last year. Net loss for the six-month period was $115,784, or $0.05 per share compared to a net income of $276,385, or $0.12 per share for the comparable period last year.
Backlog of Orders
The Company’s backlog of orders on December 31, 2011, totaled $1,442,802, down 49% compared to backlog of $2,815,511 at December 31, 2010 and down 37% from June 30, 2011. Incoming orders for the six-month period ended December 31, 2011 totaled $2,693,051 versus $5,138,588 for the six-month period ended December 31, 2010, a decrease of 48% year over year.
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 second quarter ended December 31, 2011, estimated to be filed with the Securities and Exchange Commission in late February, 2012.
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 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||
| Sales and contract revenues | $ | 2,092,367 | $ | 2,158,827 | $ | 3,507,585 | $ | 4,682,966 | ||||||||||||
| Cost of sales and contracts | 1,273,062 | 1,244,188 | 2,052,381 | 2,503,955 | ||||||||||||||||
| Gross profit | 819,305 | 914,639 | 1,455,204 | 2,179,011 | ||||||||||||||||
| Gross profit margin % | 39 | % | 42 | % | 41 | % | 47 | % | ||||||||||||
| Selling, general and administration expenses | 719,588 | 555,949 | 1,464,958 | 1,137,092 | ||||||||||||||||
| Research and development costs | 127,398 | 14,976 | 226,860 | 29,240 | ||||||||||||||||
| Total selling, general and administration expenses | 846,986 | 570,925 | 1,691,818 | 1,166,332 | ||||||||||||||||
| Operating income (loss) | (27,681 | ) | 343,714 | (236,614 | ) | 1,012,679 | ||||||||||||||
| Other income | ||||||||||||||||||||
| Interest income (net) | 29,585 | 14,257 | 67,877 | 27,546 | ||||||||||||||||
| Other income | 4,871 | 9,096 | 11,351 | 21,770 | ||||||||||||||||
| Total other income | 34,456 | 23,353 | 79,228 | 49,316 | ||||||||||||||||
| Income (loss) from operations before income taxes | 6,775 | 367,067 | (157,386 | ) | 1,061,995 | |||||||||||||||
| Income tax expense (benefit) | 2,304 | 104,835 | (53,511 | ) | 341,111 | |||||||||||||||
| Net income (loss) before discontinued operations | 4,471 | 262,232 | (103,875 | ) | 720,884 | |||||||||||||||
| Loss from discontinued operations | - | (361,439 | ) | (18,044 | ) | (673,483 | ) | |||||||||||||
| Income tax benefit from discontinued operations | - | 122,889 | 6,135 | 228,984 | ||||||||||||||||
| Net loss from discontinued operations | - | (238,550 | ) | (11,909 | ) | (444,499 | ) | |||||||||||||
|
Net income (loss) |
$ | 4,471 | $ | 23,682 | $ | (115,784 | ) | $ | 276,385 | |||||||||||
| Basic income (loss) per common share | ||||||||||||||||||||
| Continuing operations | $ | - | $ | 0.11 | $ | ( 0.04 | ) | $ | 0.31 | |||||||||||
| Discontinued operations | - | (0.10 | ) | (0.01 | ) | (0.19 | ) | |||||||||||||
| Net income (loss) | $ | - | $ | 0.01 | $ | (0.05 | ) | $ | 0.12 | |||||||||||
| Diluted income (loss) per common share | ||||||||||||||||||||
| Continuing operations | $ | - | $ | 0.11 | $ | (0.04 | ) | $ | 0.31 | |||||||||||
| Discontinued operations | - | (0.10 | ) | (0.01 | ) | (0.19 | ) | |||||||||||||
| Net income (loss) | $ | - | $ | 0.01 | $ | (0.05 | ) | $ | 0.12 | |||||||||||
| Basic weighted average of common shares outstanding | 2,313,569 | 2,305,713 | 2,312,346 | 2,305,186 | ||||||||||||||||
| Diluted weighted average of common shares outstanding | 2,313,569 | 2,318,677 | 2,312,346 | 2,306,908 | ||||||||||||||||
| PHAZAR CORP AND SUBSIDIARIES | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
|
December 31, 2011
(Unaudited) |
June 30, 2011 | ||||||||
|
CURRENT ASSETS |
|||||||||
| Cash and cash equivalents | $ | 1,428,590 | $ | 1,169,318 | |||||
| Accounts receivable: | |||||||||
| Trade, net of allowance for doubtful accounts of $0 | |||||||||
| as of December 31, 2011 and June 30, 2011 | 447,506 | 785,665 | |||||||
| Inventories | 2,647,304 | 2,732,232 | |||||||
| Prepaid expenses and other assets | 62,994 | 125,989 | |||||||
| Income taxes receivable | 261,321 | 236,366 | |||||||
| Deferred income taxes | 224,875 | 224,875 | |||||||
| Total current assets | 5,072,590 | 5,274,444 | |||||||
| Property and equipment, net | 1,015,993 | 1,043,435 | |||||||
| Note receivable | 1,219,919 | 963,684 | |||||||
| Long - term deferred income tax | 286,129 | 252,617 | |||||||
| TOTAL ASSETS | $ | 7,594,631 | $ | 7,534,180 | |||||
| CURRENT LIABILITIES | |||||||||
| Accounts payable | $ | 239,073 | $ | 216,575 | |||||
| Accrued liabilities | 455,462 | 284,969 | |||||||
| Deferred revenues | 21,973 | 2,355 | |||||||
| Liabilities held for discontinued operations | 114,571 | 178,060 | |||||||
| Total current liabilities | 831,079 | 681,959 | |||||||
| TOTAL LIABILITIES | $ | 831,079 | $ | 681,959 | |||||
| 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 | |||||||||
|
2,388,828 and 2,385,128 issued and outstanding on December 31, 2011
and June 30, 2011, respectively |
23,889 |
23,852 |
|||||||
|
Additional paid in capital |
4,544,311 | 4,517,234 | |||||||
|
Treasury stock, at cost, 74,691 shares on December 30, 2011
and June 30, 2011 |
(215,918 | ) | (215,918 | ) | |||||
| Retained earnings | 2,411,270 | 2,527,053 | |||||||
| Total shareholders’ equity | 6,763,552 | 6,852,221 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 7,594,631 | $ | 7,534,180 | |||||
| PHAZAR CORP AND SUBSIDIARIES | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| Six Months Ended | |||||||||
|
December 31, 2011
(Unaudited) |
December 31, 2010
(Unaudited) |
||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
| Net income (loss) | $ | (115,784 | ) | $ | 276,385 | ||||
|
Adjustments to reconcile net income (loss) to net cash
provided (used in) operating activities: |
|||||||||
| Depreciation | 64,692 | 65,813 | |||||||
| Loss from discontinued operations | 11,908 | 444,499 | |||||||
| Stock based compensation | 27,116 | 66,240 | |||||||
| Deferred federal income tax | (33,512 | ) | (23,291 | ) | |||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | 338,158 | (471,840 | ) | ||||||
| Inventories | 84,928 | (610,117 | ) | ||||||
| Income taxes receivable | (24,955 | ) | 192,769 | ||||||
| Prepaid expenses | 62,995 | 7,836 | |||||||
| Accounts payable | 22,498 | (143,833 | ) | ||||||
| Accrued expenses | 170,493 | 171,214 | |||||||
| Deferred revenues | 19,618 | 22,647 | |||||||
| Net cash used in discontinued operations | (75,398 | ) | (175,918 | ) | |||||
| Net cash provided by (used in) operating activities | 552,757 | (177,596 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||
| Funding of note receivable | (256,235 | ) | (125,000 | ) | |||||
| Purchase of property and equipment | (37,250 | ) | (16,003 | ) | |||||
| Net cash used in investing activities | (293,485 | ) | (141,003 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 259,272 | (318,599 | ) | ||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 1,169,318 | 1,403,839 | |||||||
|
CASH AND CASH EQUIVALENTS, end of period |
$ | 1,428,590 | $ | 1,085,240 | |||||
CONTACT:
PHAZAR CORP
Kathy Kindle, 940-325-3301
Fax:
940-325-0716
kindle@phazarcorp.com