Looking Better.
Monday April 28 9:03 AM EDT
DDL Electronics Reports Third Quarter Results
Operations Continue to Show Improvement
NEWBURY PARK, Calif.--(BUSINESS WIRE)--April 28, 1997-- DDL Electronics Inc announced results today for its
third quarter ended March 31, 1997. Revenues in the latest quarter were $13,580,000 compared with $10,501,000 for the
third quarter last year. For the nine months ended March 31, 1997, revenues were $34,660,000 compared to $22,722,000
in the first nine months of last year.
In the third quarter ended March 31, 1997, DDL earned net income of $134,000 or $.01 per share. In last year's third
quarter, DDL had net income of $1,951,000 or $.10, but without an extraordinary debt extinguishment gain of $2,356,000
the result would have been a net loss of $405,000 or ($.02) per share. For the nine months ended March 31, 1997, DDL
incurred a net loss of $1,122,000 or ($.05) per share. For the same period last year, DDL had net income of $2,687,000,
but without the aforementioned extraordinary gain and a $1,110,000 income tax benefit the result would have been a net loss
of $779,000 or ($.04) per share.
Earnings before interest expense, income taxes, depreciation and amortization (EBITDA) was $1,195,000 and $2,019,000
for the three and nine months ended March 31, 1997, respectively. Excluding the extraordinary gain last year, EBITDA for
the three and nine months ended March 31, 1996 was $712,000 and $747,000 respectively.
Gregory L. Horton, President and CEO stated: "DDL showed solid improvement in sales, gross profit and operating income
in the latest quarter. The Company's total backlog also remains strong at $32 million, up $4 million in the past three months. I
am optimistic that DDL's progress will continue into the fourth quarter and beyond."
DDL Electronics, Inc., headquartered in Newbury Park, California, 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.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
1997 1996 1997 1996
Revenues $ 13,580 $ 10,501 $ 34,660 $ 22,722
Cost of goods sold 11,600 9,147 30,161 19,985
Gross profit 1,980 1,354 4,499 2,737
Operating expenses:
Administrative and
selling 1,290 1,042 3,653 2,937
Goodwill amortization 317 317 951 317
1,607 1,359 4,604 3,254
Operating income (loss) 373 (5) (105) (517)
Interest expense (279) (355) (844) (584)
Other income (expense), net 40 (45) (173) 322
Income (loss) before
income taxes 134 (405) (1,122) (779)
Income tax benefit - - - 1,110 (A)
Income (loss) before
extraordinary item 134 (405) (1,122) 331
Extraordinary item - 2,356 (B) - 2,356 (B)
Net income (loss) $ 134 $ 1,951 $ (1,122) $ 2,687
Earnings (loss) per share:
Income (loss) before
extraordinary item $ 0.01 $ (0.02) $ (0.05) $ 0.02
Extraordinary item - 0.12 - 0.13
$ 0.01 $ 0.10 $ (0.05) $ 0.15
Average shares (in 000s) 23,285 19,064 23,047 17,678
(A) Represents tax refunds received for the carryback of net
operating loses incurred in prior years.
(B) Represents an extraordinary gain for the negotiated reduction of
obligations under several consulting and deferred fee arrangements
with former officers, key employees and directors of the Company.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, June 30,
1997 1996
(Unaudited)
Current Assets:
Cash and cash equivalents $ 1,429 $ 2,519
Accounts receivable 9,429 5,670
Costs and estimated earnings
in excess of billings
on uncompleted contracts 4,394 2,976
Inventories 3,433 4,014
Prepaid expenses and deposits 210 314
Total current assets 18,895 15,493
Property, plant and equipment, net 6,426 5,917
Goodwill 4,756 5,708
Other assets 378 969
$30,455 $28,087
Current liabilities:
Bank lines of credit payable $ 1,969 $ -
Current portion of long-term
debt 5,960 603
Accounts payable 8,989 7,484
Other current liabilities 3,375 3,892
Total current liabilities 20,293 11,979
Long-term debt 5,723 10,935
Stockholders' equity 4,439 5,173
$ 30,455 $ 28,087
CONTACT: DDL Electronics, Inc.
Rick Vitelle, 805/376-9415, ext. 142 |
