FYI - any comments.
Thursday February 6 8:17 AM EDT
DDL Electronics reports second-quarter results
earnings before fixed charges show strong improvement
NEWBURY PARK, Calif.--(BUSINESS WIRE)--Feb. 6, 1997-- DDL Electronics Inc Thursday announced results for its
second quarter ended Dec. 31, 1996.
Revenues in the latest quarter were $11,185,000 compared with $6,029,000 for the second quarter last year. For the six
months ended Dec. 31, 1996, revenues were $21,080,000 compared with $12,221,000 in the first six months of last year.
The revenue increases result from the acquisition of SMTEK Inc. in January 1996 and a 20 percent increase in sales of
DDL's contract manufacturing operation in Europe.
A net loss of $531,000 or 2 cents per share was incurred in the second quarter, compared with a net loss of $348,000 or 2
cents per share in the second quarter of last year. For the six months ended Dec. 31, 1996, the net loss was $1,256,000,
compared with net income of $736,000 in the first six months of last year which included an income tax benefit of
$1,110,000.
The net losses in the quarter and six months ended Dec. 31, 1996, result primarily from non-operational charges associated
with the SMTEK acquisition (goodwill amortization, interest expense and debt issue cost amortization).
Earnings (loss) before interest expense, income taxes, depreciation and amortization (EBITDA) increased to $596,000 in the
second quarter from ($30,000) in the second quarter of last year. For the six months ended Dec. 31, 1996, EBITDA was
$884,000, an increase of $647,000 over EBITDA for the first six months of last year.
Commenting on the latest quarter, Gregory L. Horton, president and chief executive officer, stated: "Bookings and bidding
activity have continued to be very strong. DDL's total backlog at the end of January exceeded $28 million, compared to $23
million at the end of the first quarter. We are further encouraged by the improvement in earnings before fixed charges in the
second quarter."
DDL Electronics, with headquarters in Newbury Park, provides integrated design and electronic manufacturing services
(EMS) to original equipment manufacturers in the instrumentation, communications, computer, medical and aerospace
industries.
The company also fabricates multilayer printed circuit boards (PCBs). The company's EMS operations are located in
Southern California and Northern Ireland. Its PCB facilities are located in Northern Ireland.
DDL ELECTRONICS INC.
Condensed Consolidated Statement of Operations
(In thousands, except per-share amounts)
(Unaudited)
Three months ended Six months ended
Dec. 31, Dec. 31,
1996 1995 1996 1995
Revenues $11,185 $ 6,029 $21,080 $12,221
Cost of goods sold 9,762 5,372 18,561 10,838
Gross profit 1,423 657 2,519 1,383
Operating expenses:
Administrative and
selling 1,212 1,031 2,363 1,895
Goodwill amortization 317 -- 634 --
1,529 1,031 2,997 1,895
Operating loss (106) (374) (478) (512)
Interest expense (324) (114) (582) (229)
Other income (expense), net (101) 140 (196) 367
Loss before income taxes (531) (348) (1,256) (374)
Income tax benefit -- -- -- 1,110/a
Net income (loss) $ (531) $ (348) $(1,256) $ 736
Earnings (loss) per share $ (0.02) $ (0.02) $ (0.05) $ 0.04
Average shares (in 000s) 23,272 17,131 23,300 16,985
Supplemental information:
Earnings (loss) before
interest expense, income
taxes, depreciation and
amortization (EBITDA) $ 596 $ (30) $ 884 $ 237
(a) Represents tax refunds received for the carryback of net
operating losses incurred in prior years.
DDL ELECTRONICS INC.
Condensed Consolidated Balance Sheet
(In thousands)
Dec. 31, June 30,
1996 1996
(Unaudited)
Current assets
Cash and cash equivalents $ 1,052 $ 2,519
Accounts receivable 7,134 5,670
Costs and estimated earnings in
excess of billings on uncompleted
contracts 4,173 2,976
Inventories 3,394 4,014
Prepaid expenses and deposits 210 314
Total current assets 15,963 15,493
Property, plant and equipment, net 6,325 5,917
Goodwill 5,074 5,708
Other assets 863 969
$ 28,225 $ 28,087
Current liabilities:
Bank lines of credit payable $ 1,621 $ --
Current portion of long-term debt 5,915 603
Accounts payable 6,999 7,484
Other current liabilities 3,320 3,892
Total current liabilities 17,855 11,979
Long-term debt 5,947 10,935
Stockholders' equity 4,423 5,173
$ 28,225 $ 28,087
CONTACT: DDL Electronics Inc., Newbury Park
Rick Vitelle, 805/376-9415 ext. 142 |
