Attached files
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| 8-K - PHAZAR CORP 8-K - PHAZAR CORP | a6577331.htm |
Exhibit 99.1
PHAZAR CORP Announces Second Quarter 2011 Financial Results
MINERAL WELLS, Texas--(BUSINESS WIRE)--January 19, 2011--PHAZAR CORP (Nasdaq: ANTP) announced today the unaudited results of operations for the quarter ended December 31, 2010.
Second Quarter Fiscal Year 2011
Revenues for the quarter were $2,321,528 up $173,242, or 8% from the $2,148,286 recast second 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 38%, is down 18 percentage points from the 56% gross margin reported in the comparable period last year. Start up expenses related to new tower designs for a customer order was the primary factor in the decline.
Sales and administrative expenses were down 21% to $657,772 from $832,699 in the prior year, reflecting continued increase in plant utilization rates. Research and development costs of $234,135 were also down $92,502, or 28% from $326,637 last year.
The Company recognized a net income of $23,682, or $0.01 per share for the second quarter, compared to a net loss of $1,888, or $0.00 per share, in last year’s fiscal second quarter.
Six Month Period Ending December 31, 2010
The Company reported revenues for the six-month period of $4,857,832, an increase of $845,135, or 21% compared to $4,012,697 for the comparable period last year. Net income for the six-month period was $276,385, or $0.12 per share compared to a net loss of $287,494, or $0.13 per share for the comparable period last year.
Backlog of Orders
The Company’s backlog of orders on December 31, 2010, totaled $2,815,511 up 68% compared to backlog of $1,671,359 at December 31, 2009 and down 3% 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 second quarter ended December 31, 2010, estimated to be filed with the Securities and Exchange Commission in late February, 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 SIX MONTHS ENDED DECEMBER 31, 2010 AND 2009 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||||||
| Sales and contract revenues | $ | 2,321,528 | $ | 2,148,286 | $ |
4,857,832 |
$ | 4,012,697 | ||||||||||||
| Cost of sales and contracts | 1,447,346 | 951,475 | 2,725,366 | 2,129,208 | ||||||||||||||||
| Gross profit | 874,182 | 1,196,811 | 2,132,466 | 1,883,489 | ||||||||||||||||
| Gross profit margin % | 38 | % | 56 | % | 44 | % | 47 | % | ||||||||||||
| Selling, general and administration expenses | 657,772 | 832,699 | 1,340,738 | 1,699,757 | ||||||||||||||||
| Research and development costs | 234,135 | 326,637 | 452,532 | 628,397 | ||||||||||||||||
| Total selling, general and administration expenses | 891,907 | 1,159,336 | 1,793,270 | 2,328,154 | ||||||||||||||||
| Operating income (loss) | (17,725 | ) | 37,475 | 339,196 | (444,665 | ) | ||||||||||||||
| Other income | ||||||||||||||||||||
| Interest income (net) | 14,257 | 2,178 | 27,546 | 37,421 | ||||||||||||||||
| Other income | 9,096 | (32,247 | ) | 21,770 | (23,220 | ) | ||||||||||||||
| Total other income | 23,353 | (30,069 | ) | 49,316 | 14,201 | |||||||||||||||
| Income (loss) from operations before income taxes | 5,628 | 7,406 | 388,512 | (430,464 | ) | |||||||||||||||
| Income tax expense (benefit) | (18,054 | ) | 9,294 | 112,127 | (142,970 | ) | ||||||||||||||
| Net income (loss) | $ | 23,682 | $ | (1,888 | ) | $ | 276,385 | $ | (287,494 | ) | ||||||||||
| Basic income (loss) per common share | $ | 0.01 | $ | (0.00 | ) | $ | 0.12 | $ | (0.13 | ) | ||||||||||
| Diluted income (loss) per common share | $ | 0.01 | $ | (0.00 | ) | $ | 0.12 | $ | (0.13 | ) | ||||||||||
| Basic weighted average of common shares outstanding | 2,305,713 | 2,299,330 | 2,305,186 | 2,298,530 | ||||||||||||||||
| Diluted weighted average of common shares outstanding | 2,318,677 | 2,299,330 | 2,306,908 | 2,298,530 | ||||||||||||||||
| PHAZAR CORP AND SUBSIDIARIES | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| DECEMBER 31, 2010 AND MAY 31, 2010 | |||||||||
| December 31, 2010 | May 31, 2010 | ||||||||
| (Unaudited) | (Audited) | ||||||||
| CURRENT ASSETS | |||||||||
| Cash and cash equivalents | $ | 1,085,240 | $ | 2,030,774 | |||||
| Accounts receivable: | |||||||||
| Trade, net of allowance for doubtful accounts of $0 | |||||||||
| as of December 31, 2010 and May 31, 2010 | 1,678,897 | 748,671 | |||||||
| Note receivable | 599,993 | 432,146 | |||||||
| Inventories | 3,685,653 | 3,481,074 | |||||||
| Prepaid expenses and other assets | 67,706 | 95,586 | |||||||
| Income taxes receivable | 94,000 | 316,374 | |||||||
| Deferred income taxes | 96,439 | 105,314 | |||||||
| Total current assets | 7,307,928 | 7,209,939 | |||||||
| Property and equipment, net | 1,109,381 | 1,170,090 | |||||||
| Long - term deferred income tax | 249,605 | 232,188 | |||||||
| TOTAL ASSETS | $ | 8,666,914 | $ | 8,612,217 | |||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
| CURRENT LIABILITIES | |||||||||
| Accounts payable | $ | 653,236 | $ | 477,111 | |||||
| Accrued liabilities | 543,690 | 899,072 | |||||||
| - | - | ||||||||
| Deferred revenues | 51,351 | 207,514 | |||||||
| Total current liabilities | 1,248,277 | 1,583,697 | |||||||
| TOTAL LIABILITIES | 1,248,277 | 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 | |||||||||
| 2,380,928 and 2,378,428 issued and outstanding | 23,810 | 23,785 | |||||||
| Additional paid in capital | 4,480,474 | 4,403,261 | |||||||
|
Treasury stock, at cost, 74,691 shares in May and December, 2010 |
(215,918 |
) |
(215,918 | ) | |||||
| Retained earnings | 3,130,271 | 2,817,392 | |||||||
| Total shareholders’ equity | 7,418,637 | 7,028,520 | |||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 8,666,914 | $ | 8,612,217 | |||||
| PHAZAR CORP AND SUBSIDIARIES | |||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
| FOR THE SIX MONTHS ENDED DECEMBER 31, 2010 AND 2009 | |||||||||
| (Unaudited) | |||||||||
| Six Months Ended | |||||||||
|
December 31,
2010 |
December 31,
2009 |
||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||
| Net income (loss) | $ | 276,385 | $ | (287,494 | ) | ||||
|
Adjustments to reconcile net income (loss) to net cash used by operating activities: |
|||||||||
| Depreciation | 65,813 | 67,388 | |||||||
| Stock based compensation | 66,510 | 148,462 | |||||||
| Tax benefit for employee stock options | |||||||||
| Deferred federal income tax | (23,559 | ) | (103,192 | ) | |||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (471,840 | ) | 248,572 | ||||||
| Inventory | (253,934 | ) | (225,976 | ) | |||||
| Income taxes receivable | 192,769 | (31,029 | ) | ||||||
| Prepaid expenses | 7,836 | (8,715 | ) | ||||||
| Accounts payable | (143,833 | ) | (5,441 | ) | |||||
| Accrued expenses | 83,610 | (82,947 | ) | ||||||
| Deferred revenues | 22,647 | - | |||||||
| Net cash used by operating activities | (177,596 | ) | (280,372 | ) | |||||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||||||||
| Funding of note receivable | (125,000 | ) | (190,000 | ) | |||||
| Purchase of property and equipment | (16,003 | ) | (7,712 | ) | |||||
| Purchase of treasury stock | - | - | |||||||
| Net cash used by investing activities | (141,003 | ) | (197,712 | ) | |||||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||||||||
| - | - | ||||||||
| Net cash provided by financing activities | - | - | |||||||
| Net decrease in cash and cash equivalents | (318,599 | ) | (478,084 | ) | |||||
| CASH AND CASH EQUIVALENTS, beginning of period | 1,403,839 | 3,036,602 | |||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 1,085,240 | $ | 2,558,518 | |||||
CONTACT:
PHAZAR CORP
Kathy Kindle, 940-325-3301
Fax:
940-325-0716
kindle@phazarcorp.com