Attached files
| file | filename |
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| 8-K - DGT Holdings Corp. | form8k05733_12102012.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
DGT HOLDINGS REPORTS
FISCAL 2013 FIRST QUARTER FINANCIAL RESULTS
New York, NY – December 10, 2012 – DGT Holdings Corp. (OTCBB: DGTC) (“DGT Holdings” or the “Company”) today reported financial results for its fiscal 2013 first quarter ended October 27, 2012.
FINANCIAL PRESENTATION
The Company sold its Power Conversion Business on August 16, 2012 and sold its Medical Systems Group on November 3, 2011. The Company’s operations currently consist of a real estate business. The Company’s focus is on capital redeployment and identification of new profitable operations to redeploy its existing working capital and maximize the use of its net operating loss carryforwards. The operating results for the Power Conversion Business and for the Medical Systems Group, as well as the gains on disposals of such units, are reported as discontinued operations for all periods presented. Continuing operations consist of the real estate business as well as the costs incurred in capital redeployment activites and general and administrative expenses.
FINANCIAL RESULTS
Revenue from continuing operations for the first fiscal quarter of 2013, consisting of rental income on the Company’s real estate, was $189,000. Cost of sales, consisting of depreciation and rental-related costs, were $76,000. There was no revenue or cost of sales from continuing operations in the first fiscal quarter of 2013.
The loss from continuing operations for the first fiscal quarter of 2013 was $570,000, as compared to a loss from continuing operations of $620,000 for the first fiscal quarter of 2012.
The loss from discontinued operations for the first fiscal quarter of 2013 was $344, 000 as compared to income from discounted operations of $820,000 in the first fiscal quarter of 2012.
The gain on the sale of discontinued operations reported in the first fiscal quarter of 2013 was $8,795,000. The gain was recorded on the sale of the Power Conversion Business. There were no disposals in the first quarter of 2012.
Net income for the first quarter of fiscal 2013 was $7,881,000 or $2.04 per share. Net income for the first quarter of fiscal 2012 was $200,000 or $0.05 per share.
FINANCIAL CONDITION
DGT Holdings’ working capital at October 27, 2012 was $55,034,000 which included $22,720,000 of cash and $33,160,000 of investments held for sale.
The cash and marketable securities balance, net of debt, is $53,540,000, or $13.88 per share.
| DGT Holdings Corp. | |
| December 10, 2012 | Page 2 |
ABOUT DGT HOLDINGS
DGT Holdings Corp. previously manufactured proprietary high-voltage power conversion subsystems including electronic filters, high voltage capacitors, pulse modulators, transformers and reactors, and a variety of other products designed for industrial, medical, military and other commercial applications through its Power Conversion Group’s RFI Corporation subsidiary. This business was sold on August 16, 2012. The Company currently owns and leases two industrial buildings.
The Company’s web site is www.dgtholdings.com.
Statements about future results made in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and the current economic environment. DGT Holdings cautions that these statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important assumptions and other important factors that could cause actual results to differ materially from those in the forward-looking statements are specified in the Company's filings with the Securities and Exchange Commission.
DGT HOLDINGS CORP.
STATEMENTS OF OPERATIONS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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Three Months Ended
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October 27, 2012
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October 29, 2011
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SALES
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$ | 189 | $ | - | ||||||
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COST OF SALES
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76 | - | ||||||||
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GROSS MARGIN
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113 | - | ||||||||
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General and administrative
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629 | 619 | ||||||||
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Total operating expenses
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629 | 619 | ||||||||
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OPERATING LOSS
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(516 | ) | (619 | ) | ||||||
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Interest income
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47 | 44 | ||||||||
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Interest expense
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(35 | ) | (45 | ) | ||||||
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Other income
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(41 | ) | - | |||||||
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LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
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(545 | ) | (620 | ) | ||||||
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Income tax provision
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25 | - | ||||||||
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LOSS FROM CONTINUING OPERATIONS
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(570 | ) | (620 | ) | ||||||
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Discontinued operations, net of income tax
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(344 | ) | 820 | |||||||
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Gain on disposal of discontinued operations, net of income tax
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8,795 | - | ||||||||
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NET INCOME
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$ | 7,881 | $ | 200 | ||||||
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NET INCOME (LOSS) PER BASIC AND DILUTED SHARE:
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Loss from continuing operations
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$ | (0.15 | ) | $ | (0.16 | ) | ||||
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Income from discontinued operations
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2.19 | 0.21 | ||||||||
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Net income
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$ | 2.04 | $ | 0.05 | ||||||
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WEIGTHED AVERAGE SHARES OUTSTANDING
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3,856,171 | 3,867,572 | ||||||||
| DGT Holdings Corp. | |
| December 10, 2012 | Page 3 |
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COMPREHENSIVE INCOME (LOSS):
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NET INCOME
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$ | 7,881 | $ | 200 | ||||
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Other comprehensive income (loss), net of $0 income taxes:
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Net unrealized gain on securities held for sale
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1,235 | - | ||||||
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Foreign currency translation adjustments
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190 | (1,203 | ) | |||||
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Total other comprehensive income (loss)
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1,425 | (1,203 | ) | |||||
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OTHER COMPREHENSIVE INCOME (LOSS)
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$ | 9,306 | $ | (1,003 | ) | |||
DGT HOLDINGS CORP.
BALANCE SHEETS
(DOLLARS IN THOUSANDS EXCEPT PAR VALUE)
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October 27,
2012
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July 28,
2012
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ASSETS
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Unaudited
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CURRENT ASSETS:
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Cash and cash equivalents
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$ | 19,282 | $ | 38,169 | ||||
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Restricted cash
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3,438 | 2,428 | ||||||
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Securities held for sale
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33,160 | 4,359 | ||||||
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Prepaid expenses and other current assets
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99 | 158 | ||||||
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Current assets of discontinued operations
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- | 3,125 | ||||||
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Total current assets
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55,979 | 48,239 | ||||||
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NON-CURRENT ASSETS:
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Property plant and equipment, net
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3,543 | 3,428 | ||||||
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Promissory note receivable
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646 | 614 | ||||||
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Other assets
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68 | 73 | ||||||
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Non-current assets of discontinued operations
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- | 443 | ||||||
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Total non-current assets
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4,257 | 4,558 | ||||||
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TOTAL ASSETS
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$ | 60,236 | $ | 52,797 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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Current portion of long-term debt
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$ | 82 | $ | 82 | ||||
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Accounts payable – trade
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11 | 11 | ||||||
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Accrued expenses
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852 | 1,951 | ||||||
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Current liabilities of discontinued operations
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- | 1,002 | ||||||
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Total current liabilities
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945 | 3,046 | ||||||
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NON-CURRENT LIABILITIES:
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Long-term debt, less current portion
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2,258 | 2,278 | ||||||
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Deferred income taxes
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474 | 458 | ||||||
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Total non-current liabilities
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2,732 | 2,736 | ||||||
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Total liabilities
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3,677 | 5,782 | ||||||
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| DGT Holdings Corp. | |
| December 10, 2012 | Page 4 |
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COMMITMENTS AND CONTINGENCIES
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SHAREHOLDERS' EQUITY:
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Common stock, $.10 par value;
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Authorized 100,000,000; October 27, 2012 and July 28, 2012, respectively; issued-4,082,157 and 4,042,157 at October 27, 2012 and July 28, 2012, respectively
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408 | 404 | ||||||
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Additional paid-in capital
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98,408 | 98,174 | ||||||
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Treasury shares – 202,689 shares, at cost, at October 27, 2012 and July 28, 2012
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(7,429 | ) | (7,429 | ) | ||||
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Accumulated other comprehensive income (loss)
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1,347 | (78 | ) | |||||
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Accumulated deficit
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(36,175 | ) | (44,056 | ) | ||||
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Total shareholders' equity
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56,559 | 47,015 | ||||||
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 60,236 | $ | 52,797 |
CONTACT: DGT HOLDINGS CORP.
Terry Gibson
Chief Executive Officer
(408) 399-6490
Terry Gibson
Chief Executive Officer
(408) 399-6490
Source: DGT Holdings Corp.