Attached files
| file | filename |
|---|---|
| 8-K - ADVANCED PHOTONIX, INC. 8-K - ADVANCED PHOTONIX INC | a50896525.htm |
Exhibit 99.1
Advanced Photonix, Inc. Reports Fiscal 2014 Revenues up 23%
Ann Arbor, MI, June 30, 2014 --Advanced Photonix, Inc.® (NYSE MKT API) (the “Company”) today reported results for the fourth quarter and year ended March 31, 2014.
Financial Highlights for the Fourth Quarter and Fiscal Year Ended March 31, 2014
|
●
|
Net sales for the quarter were $7.0 million, an increase of $1.0 million or 16% from the fourth quarter ended March 31, 2014. Sequentially, revenues were down 6% relative to the third quarter of fiscal 2014.
|
|
●
|
Net sales for the current fiscal year were $29.0 million, an increase of 23% over the prior year. The increase was attributable to test and measurement revenues associated with the Silonex net asset purchase in March 2013 and strong demand in telecommunication market sales.
|
|
●
|
Gross profit margin for Q4 2014 was 29% of sales compared to 36% for the quarter ended March 31, 2013. An unfavorable mix shift out of Comtest and Terahertz contract sales explained the rate change.
|
|
●
|
Gross profit margin for the fiscal year 2014 was 33% relative to 37% in the prior year. The Company incurred approximately $667,000 in one time charges in fiscal 2014 associated with the shutdown of it silicon photodiode fabrication activities.
|
|
●
|
Current quarter net loss was $1.1 million or $0.04 per diluted share, as compared to a quarterly net loss of $1.1 million or $0.03 per diluted share for the quarter ended March 31, 2013.
|
|
●
|
Net loss for the fiscal year 2014 was $4.3 million or $0.14 per diluted share, as compared to a loss of $4.4 million, or $0.14 per diluted share for the prior year period.
|
|
●
|
The Non-GAAP net loss for the fourth quarter of fiscal 2013 was $887,000 or $0.03 per diluted share, as compared to a Non-GAAP loss of $775,000, or $.02 per diluted share, for the fourth quarter last year. The Company reported full-year Non-GAAP net loss of $2.1 million, or $0.07 per diluted share, as compared to a Non-GAAP loss of $3.1 million, or $0.10 per diluted share, for the comparable prior year period.
|
|
●
|
Adjusted EBITDA (which is defined as GAAP earnings before interest, taxes, depreciation, amortization and stock compensation), was a negative $593,000 for the fourth quarter of fiscal 2014 as compared to negative adjusted EBITDA of $572,000 for the quarter ended March 31, 2013. For the fiscal year 2014, the Company reported negative adjusted EBITDA of $846,000 as compared to a negative adjusted EBITDA of $2.2 million for the comparable prior year period.
|
Operating Expenses
The Company’s total operating expenses for the quarter were $3.1 million, down about $216,000 from the fourth quarter last year. As a percent of revenue, total operating expenses were 44% compared to 54% for the fourth quarter last year. For the year, total operating expenses were $13.0 million, or 45% of revenue, compared to $13.2 million, or 56% of revenue last year.
Balance Sheet
The Company finished the year with $120,000 in cash compared to $619,000 as of March 31, 2013 due primarily to the losses that were funded during the year. Net working capital as of March 31, 2014 was $1.7 million and the Company had the ability to borrow up to $2.0 million on the Company’s line of credit to provide any needed working capital. In June 2014, the Company obtained approximately $2.9 million in net cash proceeds from a firm underwritten Class A Common Stock placement using B Riley & Co. The Company believes this capital will be more than sufficient to provide the needed funding to satisfy working capital needs over the next year.
2925 Boardwalk • Ann Arbor, MI 48104 • (734) 864-5600 • Fax (734) 998-3474
Richard Kurtz, President and Chief Executive Officer, commented, "Last year was a transition year. The acquisition of the Silonex business brought about $3.8 million in new test and measurement revenues and resolution of supply chain constraints in the HSOR product line helped grow the Company by an added $4.0 million. The military spending fall off for the year was the big headwind with the second half especially weak. That trend though is reversing given recent contract awards which bodes well for a stronger fiscal 2015. With all three of our key markets looking to grow in fiscal 2015, the Company expects overall growth to exceed 20%.”
Conference Call
Participating in the call will be Richard Kurtz (CEO and Director), Rob Risser (COO and Director), and Jeff Anderson (CFO). The conference call will be webcast live and will be accessible at http://www.videonewswire.com/event.asp?id=99887. Participants can dial into the conference call at 877.870.4263 (412.317.0790 for international and 855.669.9657 for Canada). The conference call will last approximately one hour and will end with a question and answer period.
An audio replay of the call will be available shortly thereafter on the same day and will remain on-line until July 30, 2014. The replay will be available in the investors section of API's website at www.advancedphotonix.com.
Forward-looking Statements:
The information contained herein includes forward looking statements that are based on assumptions that management believes to be reasonable but are subject to inherent uncertainties and risks including, but not limited to, unforeseen technological obstacles which may prevent or slow the development and/or manufacture of new products; potential problems with the integration of the acquired company and its technology and possible inability to achieve expected synergies; obstacles to successfully combining product offerings and lack of customer acceptance of such offerings; limited (or slower than anticipated) customer acceptance of new products which have been and are being developed by the Company; and a decline in the general demand for optoelectronic products; and the risk factors listed from time to time in the Company;s Annual Reports on Form 10-K, Quarterly Reports on Form 10Q, and any Subsequent SEC filings. The Company assumes no obligation to update forward - looking statements contained in this release to reflect new information or future events or developments.
2925 Boardwalk • Ann Arbor, MI 48104 • (734) 864-5600 • Fax (734) 998-3474
CONDENSED CONSOLIDATED BALANCE SHEET
|
ASSETS
|
March 31, 2013
|
March 31, 2014
|
||||||
|
Current assets
|
||||||||
|
Cash and cash equivalents
|
$ | 619,000 | $ | 120,000 | ||||
|
Receivables, net
|
4,988,000 | 5,085,000 | ||||||
|
Inventories
|
3,905,000 | 4,749,000 | ||||||
|
Prepaid expenses and other current assets
|
795,000 | 444,000 | ||||||
|
Total current assets
|
10,307,000 | 10,398,000 | ||||||
|
Net equipment and leasehold improvements, net
|
3,415,000 | 2,144,000 | ||||||
|
Goodwill
|
4,579,000 | 4,579,000 | ||||||
|
Intangible and patents, net
|
3,686,000 | 2,942,000 | ||||||
|
Other assets
|
229,000 | 138,000 | ||||||
|
Total assets
|
$ | 22,216,000 | $ | 20,201,000 | ||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
Current liabilities
|
||||||||
|
Accounts payable and accrued expenses
|
$ | 3,127,000 | $ | 4,113,000 | ||||
|
Accrued compensation
|
729,000 | 701,000 | ||||||
|
Current portion of long-term debt – bank term loan
|
333,000 | 306,000 | ||||||
|
Current portion of long-term debt – bank line of credit
|
-- | 2,147,000 | ||||||
|
Current portion of long-term debt – PFG
|
714,000 | 714,000 | ||||||
|
Current portion of long-term debt – MEDC
|
553,000 | 654,000 | ||||||
|
Current portion of capital leases
|
-- | 20,000 | ||||||
|
Total current liabilities
|
5,456,000 | 8,655,000 | ||||||
|
Long term debt, less current portion – bank term loan
|
334,000 | -- | ||||||
|
Long term debt, net of debt discount and current – PFG
|
1,322,000 | 794,000 | ||||||
|
Long term debt, less current portion – MEDC/MSF
|
377,000 | -- | ||||||
|
Long term debt, capital lease
|
-- | 36,000 | ||||||
|
Warrant liability
|
292,000 | 409,000 | ||||||
|
Total liabilities
|
7,781,000 | 9,894,000 | ||||||
|
Shareholders' equity
|
||||||||
|
Class A common stock, $.001 par value, 100,000,000 shares authorized;
March 31, 2013 – 31,158,347 shares issued and outstanding;
March 31, 2014 – 31,203,213 shares issued and outstanding
|
31,000 | 31,000 | ||||||
|
Additional paid-in capital
|
58,616,000 | 58,752,000 | ||||||
|
Accumulated deficit
|
(44,212,000 | ) | (48,476,000 | ) | ||||
|
Total shareholders' equity
|
14,435,000 | 10,307,000 | ||||||
|
Total liabilities and shareholders' equity
|
$ | 22,216,000 | $ | 20,201,000 | ||||
2925 Boardwalk • Ann Arbor, MI 48104 • (734) 864-5600 • Fax (734) 998-3474
CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)
| Three months ended | Twelve months ended | |||||||||||||||
|
March 31, 2013
|
March 31, 2014
|
March 31, 2013
|
March 31, 2014
|
|||||||||||||
|
Sales, net
|
$ | 6,013,000 | $ | 6,977,000 | $ | 23,649,000 | $ | 29,041,000 | ||||||||
|
Cost of products sold
|
3,858,000 | 4,973,000 | 14,823,000 | 19,433,000 | ||||||||||||
|
Gross profit
|
2,155,000 | 2,004,000 | 8,826,000 | 9,608,000 | ||||||||||||
|
Operating expenses
|
||||||||||||||||
|
Research, development and engineering
|
1,412,000 | 1,085,000 | 5,683,000 | 4,975,000 | ||||||||||||
|
Sales and marketing
|
565,000 | 695,000 | 2,093,000 | 2,562,000 | ||||||||||||
|
General and administrative
|
995,000 | 1,021,000 | 4,254,000 | 4,482,000 | ||||||||||||
|
Amortization expense
|
305,000 | 260,000 | 1,181,000 | 1,029,000 | ||||||||||||
|
Total operating expenses
|
3,277,000 | 3,061,000 | 13,211,000 | 13,048,000 | ||||||||||||
|
Loss from operations
|
(1,122,000 | ) | (1,057,000 | ) | (4,385,000 | ) | (3,440,000 | ) | ||||||||
|
Other income (expense)
|
||||||||||||||||
|
Net interest expense
|
(102,000 | ) | (166,000 | ) | (192,000 | ) | (644,000 | ) | ||||||||
|
Change in fair value of warrant liability
|
142,000 | 96,000 | 168,000 | (117,000 | ) | |||||||||||
|
Other income (expense)
|
1,000 | (16,000 | ) | 22,000 | (63,000 | ) | ||||||||||
|
Total other income (expense)
|
41,000 | (86,000 | ) | (2,000 | ) | (824,000 | ) | |||||||||
|
Loss before benefit from income taxes
|
(1,081,000 | ) | (1,143,000 | ) | (4,387,000 | ) | (4,264,000 | ) | ||||||||
|
Benefit for income taxes
|
-- | -- | -- | -- | ||||||||||||
|
Net loss
|
$ | (1,081,000 | ) | $ | (1,143,000 | ) | $ | (4,387,000 | ) | $ | (4,264,000 | ) | ||||
|
Basic and diluted loss per share
|
$ | (0.03 | ) | $ | (0.04 | ) | $ | (0.14 | ) | $ | (0.14 | ) | ||||
|
Weighted average common shares outstanding
|
31,161,000 | 31,240,000 | 31,161,000 | 31,227,000 | ||||||||||||
Non-GAAP Financial Measures
The Company provides Non-GAAP Net Income, EBITDA and adjusted EBITDA as supplemental financial information regarding the Company's operational performance. These Non-GAAP financial measures are not in accordance with, or an alternative for, generally accepted accounting principles in the United States. Non-GAAP Net Income, EBITDA and adjusted EBITDA should not be considered in isolation from or as a substitute for financial information presented in accordance with generally accepted accounting principles, and may be different from similar measures used by other companies. Reconciliation of Non-GAAP Net Income, EBITDA and adjusted EBITDA to GAAP net income and loss are set forth in the financial schedule section below.
2925 Boardwalk • Ann Arbor, MI 48104 • (734) 864-5600 • Fax (734) 998-3474
RECONCILIATION OF NON-GAAP LOSS TO GAAP LOSS
| Three months ended | Twelve months ended | |||||||||||||||
|
March 31, 2013
|
March 31, 2014
|
March 31, 2013
|
March 31, 2014
|
|||||||||||||
|
Net loss
|
$ | (1,081,000 | ) | $ | (1,143,000 | ) | $ | (4,387,000 | ) | $ | (4,264,000 | ) | ||||
|
Adjustments:
|
||||||||||||||||
|
Change in warrant fair value
|
(142,000 | ) | (96,000 | ) | (168,000 | ) | 117,000 | |||||||||
|
Amortization - intangibles/patents
|
305,000 | 260,000 | 1,181,000 | 1,029,000 | ||||||||||||
|
Accelerated depreciation on fab shutdown
|
-- | -- | -- | 608,000 | ||||||||||||
|
Non-cash interest expense
|
-- | 63,000 | -- | 264,000 | ||||||||||||
|
Acquisition related expenses
|
100,000 | -- | 100,000 | -- | ||||||||||||
|
Stock option compensation expense
|
43,000 | 29,000 | 167,000 | 139,000 | ||||||||||||
|
Subtotal
|
306,000 | 256,000 | 1,280,000 | 2,157,000 | ||||||||||||
|
Non-GAAP income (loss)
|
$ | (775,000 | ) | $ | (887,000 | ) | $ | (3,107,000 | ) | $ | (2,107,000 | ) | ||||
|
Basic and diluted loss per share
|
$ | (0.02 | ) | $ | (0.03 | ) | $ | (0.10 | ) | $ | (0.07 | ) | ||||
|
Weighted average common shares outstanding
|
31,161,000 | 31,240,000 | 31,161,000 | 31,227,000 | ||||||||||||
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA TO GAAP LOSS
| Three months ended |
Twelve months ended
|
|||||||||||||||
|
March 31, 2013
|
March 31, 2014
|
March 31, 2013
|
March 31, 2014
|
|||||||||||||
|
Net loss
|
$ | (1,081,000 | ) | $ | (1,143,000 | ) | $ | (4,387,000 | ) | $ | (4,264,000 | ) | ||||
|
Adjustments:
|
||||||||||||||||
|
Net interest expense (income)
|
102,000 | 166,000 | 192,000 | 644,000 | ||||||||||||
|
Warrant fair value adjustment
|
(142,000 | ) | (96,000 | ) | (168,000 | ) | 117,000 | |||||||||
|
Depreciation expense
|
201,000 | 191,000 | 785,000 | 1,489,000 | ||||||||||||
|
Amortization
|
305,000 | 260,000 | 1,181,000 | 1,029,000 | ||||||||||||
|
Subtotal
|
466,000 | 521,000 | 1,990,000 | 3,279,000 | ||||||||||||
|
EBITDA
|
$ | (615,000 | ) | $ | (622,000 | ) | $ | (2,397,000 | ) | $ | (985,000 | ) | ||||
|
Stock compensation
|
43,000 | 29,000 | 167,000 | 139,000 | ||||||||||||
|
Adjusted EBITDA
|
$ | (572,000 | ) | $ | (593,000 | ) | $ | (2,230,000 | ) | $ | (846,000 | ) | ||||
About Advanced Photonix, Inc.
Advanced Photonix, Inc. ® (NYSE MKT: API) is a leading supplier with a broad offering of optoelectronic products to a global customer base. We provide optoelectronic solutions, high-speed optical receivers and terahertz instrumentation for telecom, homeland security, military, medical and industrial markets. With our patented technology and state-of-the-art manufacturing we offer industry leading performance, exceptional quality, and high value added products to our OEM customer base. For more information visit us on the web at www.advancedphotonix.com.
CONTACT: ir@advancedphotonix.com
SOURCE: Advanced Photonix, Inc.
RELATED LINKS: http://www.advancedphotonix.com
2925 Boardwalk • Ann Arbor, MI 48104 • (734) 864-5600 • Fax (734) 998-3474