Attached files
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| 8-K - PHAZAR CORP 8-K - PHAZAR CORP | a50035845.htm |
Exhibit 99.1
PHAZAR CORP Reports First Quarter Fiscal Year 2012 Financial Results
MINERAL WELLS, Texas--(BUSINESS WIRE)--October 19, 2011--PHAZAR CORP, (NASDAQ: ANTP) designs, manufactures and markets antennas, towers, support structures, masts and communication accessories worldwide. Today, PHAZAR CORP announces the results of operations for the three month period ended September 30, 2011 and 2010, respectively.
First Quarter Fiscal Year 2012
Revenues of $1,415,218 for the first quarter decreased 44% compared to $2,524,139 for the same three month period last year. Sales from our Instrument Landing System (ILS) and commercial wireless product lines are down $896,275 and $298,254, respectively quarter over quarter.
The $480,448, or 38% decrease in cost of goods sold is largely attributed to the lower level of revenues for the quarter ended September 30, 2011 compared to the prior year. The 45% gross profit margin for the first quarter fiscal year 2012 is down five basis points on the 50% gross profit margin seen in the first quarter of fiscal year 2011.
The $164,227 or 28% increase in sales and administration expense for the three month period ended September 30, 2011 reflects a higher level of marketing wages, professional charges and trade show activity. Research and development costs of $99,462 were up $85,198, for the three months ended September 30, 2011 compared to $14,264 in the prior year. The increase represents continued product development for the commercial wireless product line and the redesign of an existing Instrument Landing System antenna.
The Company recognized a net loss of $120,255, or $.05 per share for the first quarter, compared to net income of $252,703, or $.11 per share, in last year's fiscal first quarter.
Backlog of Orders
The Company's backlog of orders on September 30, 2011, totaled approximately $2,552,385 compared to $2,277,566 at June 30, 2011, an increase of 12.1%. Incoming orders for the three month period ended September 30, 2011 totaled $1,724,724 versus $3,298,468 for the three month period ended September 30, 2010, a decrease of 47.7%.
Commenting on operations and financial results, Garland P. Asher, Chairman and Chief Executive Officer, said, “Two events negatively impacted sales in the quarter. The two-week plus shutdown of the FAA halted virtually all FAA infrastructure activity during a period that usually is seasonally peaking. And the Justice Department suit seeking to halt the proposed AT&T-T-Mobile merger has raised the uncertainty of the proposed transaction even further, which is continuing to delay wireless network infrastructure projects.”
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 three month period ended September 30, 2011, estimated to be filed with the Securities and Exchange Commission on or around November 14, 2011.
The Form 10-Q will 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 | ||||||||||
| September 30, 2011 |
September 30, 2010 |
|||||||||
| Sales and contract revenues | $ | 1,415,218 | $ | 2,524,139 | ||||||
| Cost of sales and contracts | 779,319 | 1,259,767 | ||||||||
| Gross profit | 635,899 | 1,264.372 | ||||||||
| Gross profit margin % | 45 | % | 50 | % | ||||||
| Selling, general and administration expenses | 745,370 | 581,143 | ||||||||
| Research and development costs | 99,462 | 14,264 | ||||||||
| Total selling, general and administration expenses | 844,832 | 595,407 | ||||||||
| Operating income (loss) | (208,933 | ) | 668,965 | |||||||
| Other income | ||||||||||
| Interest income (net) | 38,292 | 13,289 | ||||||||
| Other income | 6,480 | 12,674 | ||||||||
| Total other income | 44,772 | 25,963 | ||||||||
| Income (loss) from operations before income taxes | (164,161 | ) | 694,928 | |||||||
| Income tax expense (benefit) | (55,815 | ) | 236,276 | |||||||
| Net income (loss) before discontinued operations | (108,346 | ) | 458,652 | |||||||
| Loss from discontinued operations | (18,044 | ) | (312,044 | ) | ||||||
| Income tax benefit from discontinued operations | 6,135 | 106,095 | ||||||||
| Net loss from discontinued operations expense | $ | (11,909 | ) | $ | (205,949 | ) | ||||
| Net income (loss) | $ | (120,255 | ) | $ | 252,703 | |||||
| Basic income (loss) per common share | ||||||||||
| Continuing operations | $ | (0.05 | ) | $ | 0.20 | |||||
| Discontinued operations | (0.00 | ) | (0.09 | ) | ||||||
| Net income (loss) | $ | (0.05 | ) | $ | 0.11 | |||||
| Diluted income (loss) per common share | ||||||||||
| Continuing operations | $ | (0.05 | ) | $ | 0.20 | |||||
| Discontinued operations | (0.00 | ) | (0.09 | ) | ||||||
| Net income (loss) | $ | (0.05 | ) | $ | 0.11 | |||||
| Basic weighted average of common shares outstanding | 2,311,124 | 2,304,659 | ||||||||
| Diluted weighted average of common shares outstanding | 2,311,124 | 2,304,659 | ||||||||
| PHAZAR CORP AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| September 30, 2011 | June 30, 2011 | |||||||||
| CURRENT ASSETS | $ | 1,277,849 |
$ |
1,169,318 |
||||||
| Cash and cash equivalents |
449,966 |
785,664 | ||||||||
| Accounts receivable: | ||||||||||
| Trade, net of allowance for doubtful accounts of $- 0- | ||||||||||
|
as of September 30, 2011 and June 30, 2011 |
||||||||||
| Inventories | 2,862,915 | 2,732,232 | ||||||||
| Prepaid expenses and other assets | 81,847 | 125,989 | ||||||||
| Income taxes receivable | 292,945 | 236,366 | ||||||||
| Deferred income taxes | 224,875 | 224,875 | ||||||||
| Total current assets |
5,190,397 |
5,274,444 | ||||||||
| Property and equipment, net | 1,048,339 | 1,043,435 | ||||||||
| Note receivable |
1,111,718 |
963,684 | ||||||||
| Long - term deferred income tax | 256,808 | 252,617 | ||||||||
| TOTAL ASSETS |
$ |
7,607,262 |
$ |
7,534,180 |
||||||
| CURRENT LIABILITIES | ||||||||||
| Accounts payable | $ | 307,221 | $ | 216,575 | ||||||
| Accrued liabilities | 435,437 | 284,969 | ||||||||
| Deferred revenues | 0 | 2,355 | ||||||||
| Liabilities held for discontinued operations | 114,571 | 178,060 | ||||||||
| Total current liabilities | $ | 857,229 | $ | 681,959 | ||||||
| TOTAL LIABILITIES | $ | 857,229 | $ | 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 | ||||||||||
|
and 2,387,528, and 2,385,128 issued and outstanding on
September 30, 2011 and June 30, 2011, respectively |
23,876 |
23,852 |
||||||||
| Additional paid in capital | 4,535,277 | 4,517,234 | ||||||||
| Treasury stock, at cost, 74,691 shares on September 30, 2011 and | ||||||||||
| June 30, 2011 | (215,918 | ) | (215,918 | ) | ||||||
| Retained earnings | 2,406,798 | 2,527,053 | ||||||||
| Total shareholders’ equity | 6,750,033 | 6,852,221 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 7,607,262 | $ | 7,534,180 | ||||||
| PHAZAR CORP AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| Three Months Ended | ||||||||||
| September 30, 2011 | September 30, 2010 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net income (loss) | $ | (120,255 | ) | $ | 252,703 | |||||
| Adjustments to reconcile net income (loss) to net cash | ||||||||||
| provided (used in) operating activities: | ||||||||||
| Depreciation | 32,346 | 32,842 | ||||||||
| Loss from discontinued operations | 11,909 | 205,949 | ||||||||
| Stock based compensation | 18,067 | 31,947 | ||||||||
| Deferred federal income tax | (4,191 | ) | (13,306 | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable |
335,698 |
(179,600 | ) | |||||||
| Inventories | (130,683 | ) | 562,920 | |||||||
| Income taxes receivable | (56,579 | ) | (29,605 | ) | ||||||
| Prepaid expenses | 44,142 | (14,292 | ) | |||||||
| Accounts payable | 90,646 | (277,810 | ) | |||||||
| Accrued expenses | 150,468 | 106,815 | ||||||||
| Federal income tax liability | 0 | 142,594 | ||||||||
| Deferred revenues | (2,355 | ) | 30,960 | |||||||
| Net cash used in discontinued operations | (75,398 | ) | (871,398 | ) | ||||||
|
Net cash provided by (used in) operating activities |
293,815 |
(19,281 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Funding of note receivable |
(148,034 |
) | (80,000 | ) | ||||||
| Purchase of property and equipment | (37,250 | ) | (16,003 | ) | ||||||
| Purchase of treasury stock | - | - | ||||||||
| Net cash used in investing activities |
(185,284 |
) | (96,003 | ) | ||||||
| Net decrease in cash and cash equivalents | 108,531 | (115,284 | ) | |||||||
| CASH AND CASH EQUIVALENTS, beginning of period | 1,169,318 | 1,403,839 | ||||||||
| CASH AND CASH EQUIVALENTS, end of period | $ | 1,277,849 |
$ |
1,288,555 |
||||||
CONTACT:
Antenna Products Corporation
Kathy Kindle, 940-325-3301
Fax:
940-325-0716
kindle@phazarcorp.com