Axsys Earnings Release:
Monday February 2, 6:23 pm Eastern Time
Company Press Release
SOURCE: Axsys Technologies, Inc.
Axsys Technologies, Inc. Reports $1.53 For The Year and $.41
For The Fourth Quarter From Continuing Operations
ENGLEWOOD CLIFFS, N.J., Feb. 2 /PRNewswire/ -- Axsys Technologies, Inc. (Nasdaq: AXYS -
news) today announced its unaudited results of operations for 1997. Sales totaled $123,816,000 for the
year ended December 31, 1997, an increase of 36% over sales of $91,301,000 in 1996. Sales of the
Company's Precision Systems Group increased by 62% to $78,889,000 and the sales of its Industrial
Components Group increased by 5% to $44,927,000. The increase in the Precision Systems Group
sales was due primarily to business acquisitions and higher shipments to the space, electronic capital
equipment and digital imaging markets. Income from continuing operations, before an extraordinary
charge of $109,000, net of taxes, or $.03 per diluted share, was $5,487,000 in 1997, or $1.53 per
diluted share, compared with $2,855,000, or $.74 per diluted share, in 1996. The extraordinary charge
relates to an early extinguishment of debt in connection with the Company's stock offering which
closed on October 27, 1997. The Company recorded a loss on discontinued operations of $244,000,
net of taxes, or $.07 per diluted share, in the third quarter of 1997. This loss was incurred to increase
the Company's reserve for environmental costs associated with a formerly owned property.
Net sales for the quarter ended December 31, 1997 were $33,293,000, an increase of 26% over sales of
$26,523,000 for the fourth quarter of 1996. Sales of the Company's Precision Systems Group
increased by 32% to $21,793,000, due primarily to higher shipments to the space and electronic capital
equipment markets and business acquisitions. Sales of the Industrial Components Group increased by
15% to $11,500,000, primarily as a result of higher sales of precision ball bearings as compared to an
unusually low fourth quarter of 1996. Axsys reported income from continuing operations, before
extraordinary charges, for the fourth quarter of 1997 of $1,671,000 or $.41 per diluted share, compared
with $1,046,000 or $.30 per diluted share, in 1996.
Stephen Bershad, Axsys' Chairman said, ''The results for the quarter and the year reflect the continued
strong growth of the Speedring companies as well as the successful completion and integration of the
Teletrac, Inc. acquisition which expanded the Company's penetration of the semiconductor, flat panel
and the mass data storage markets, while enhancing our capabilities, principally in linear measurement
and positioning systems, to provide higher-level systems and subsystems to its core markets. During
1997, Axsys also completed a stock offering which generated approximately $19,500,000 used to
repay outstanding bank borrowings. As a result of these accomplishments and other actions taken in
1997, we are well positioned for the challenges of 1998.''
Axsys Technologies designs, manufactures and sells custom precision optical and micropositioning
components and systems for markets such as defense, space, digital imaging and electronics capital
equipment. The Company also designs, manufactures and sells interconnect devices and distributes
precision ball bearings for use in a variety of industrial, commercial and consumer applications.
AXSYS TECHNOLOGIES, INC.
Consolidated Statements of Operations
(Dollars in thousands, except per share data)
Quarter Ended December 3l, Year Ended December 31,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited)
Net sales $33,293 $26,523 $123,816 $91,301
Cost of sales 23,934 19,472 89,819 67,483
Selling, general
and administrative
expenses 5,953 4,569 21,749 16,501
Amortization of
intangible assets 121 53 363 210
Operating income 3,285 2,429 11,885 7,107
Interest expense 467 686 2,633 2,343
Other expense 1 22 25 18
Income from continuing
operations before
taxes and
extraordinary items 2,817 1,721 9,227 4,746
Provision for income
taxes 1,146 675 3,740 1,891
Income from continuing
operations before
extraordinary item 1,671 1,046 5,487 2,855
Loss on discontinued
operations, net
of taxes -- -- (244) --
Income before
extraordinary items 1,671 1,046 5,243 2,855
Extraordinary loss on
early extinguishment
of debt, net of taxes (109) -- (109) (173)
Net income 1,562 1,046 5,134 2,682
Preferred stock
dividends -- 221 102 847
Net income applicable
to common
shareholders $1,562 $825 $5,032 $1,835
Basic Earnings per share:
Continuing operations $0.42 $0.32 $1.64 $0.79
Discontinued operations -- -- (0.08) --
Extraordinary charge (O.03) -- (0.03) (0.07)
$0.39 $0.32 $1.53 $0.72
Weighted average
common shares
outstanding 3,952,652 2,563,479 3,281,092 2,547,329
Diluted Earnings per share:
Continuing
operations $0.41 $0.30 $1.53 $0.74
Discontinued
operations -- -- (0.07) --
Extraordinary
charge (O.03) -- (0.03) (0.06)
$0.38 $0.30 $1.43 $0.68
Weighted average
common shares
outstanding 4,051,320 2,787,391 3,513,302 2,688,270
AXSYS TECHNOLOGIES, INC.
Consolidated Balance Sheets
(Dollars in thousands)
December 31,
1997 1996
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $575 $2,691
Accounts receivable - net 18,643 13,801
Inventories - net 29,324 24,454
Other current assets 1,011 850
TOTAL CURRENT ASSETS 49,553 41,796
PROPERTY, PLANT AND EQUIPMENT 15,074 13,456
EXCESS OF COST OVER NET ASSETS
ACQUIRED - net 13,942 6,415
OTHER 430 504
TOTAL ASSETS $ 78,999 $ 62,171
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $9,631 $6,881
Accrued expenses and
other liabilities 9,963 7,290
Current portion of long-term debt
and capital lease obligations 904 2,831
TOTAL CURRENT LIABILITIES 20,498 17,002
LONG-TERM DEBT & CAPITAL LEASES,
less current portion 8,629 23,324
OTHER LONG-TERM LIABILITIES 2,284 2,293
DEFERRED INCOME 255 387
SHAREHOLDERS' EQUITY:
$1.20 CUMULATIVE EXCHANGEABLE
REDEEMABLE PREFERRED STOCK,
$.01 PAR VALUE: authorized
4,000,000 shares, none issued
and outstanding at December 31, 1997
and 738,881 shares at
December 31, 1996 -- 7
COMMON STOCK, $.01 PAR VALUE:
authorized 30,000,000 shares,
issued and outstanding
4,113,190 shares at
December 31, 1997 and
2,568,940 shares at
December 31, 1996 41 26
Capital in Excess of Par 40,425 17,297
Retained Earnings 6,867 1,835
TOTAL SHAREHOLDERS' EQUITY 47,333 19,165
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $78,999 $62,171
SOURCE: Axsys Technologies, Inc. |
