Earnings for LB look good! .08 vs. .05 ...Thursday January 31, 8:54 am Eastern Time
Press Release
SOURCE: LaBarge, Inc.
LaBarge, Inc. Sales and Earnings Increase Sharply for Fiscal 2002 Second Quarter and First Half
Backlog Sets New Record
ST. LOUIS, Jan. 31 /PRNewswire-FirstCall/ -- LaBarge, Inc. (Amex: LB - news) today reported sharply higher sales and earnings for its fiscal 2002 second quarter and first half, ended Dec. 30, 2001.
For the fiscal 2002 second quarter, net sales rose 17 percent to $31,495,000 from $26,923,000 for the year-ago period. Second-quarter net earnings rose 65 percent to $1,200,000, or $.08 per diluted share, compared with $726,000, or $.05 per diluted share, for the fiscal 2001 second quarter.
For the six months ended Dec. 30, 2001, net sales rose 24 percent to $63,603,000 from $51,207,000 for the same period in fiscal 2001. Net earnings for the first six months of fiscal 2002 rose 64 percent to $2,235,000, or $.15 per diluted share, compared with $1,361,000, or $.09 per diluted share, for the fiscal 2001 first half.
Fiscal 2002 results reflect the adoption of Statement of Financial Accounting Standards No. 142, which eliminated goodwill amortization beginning July 1, 2001. Amortization of goodwill for fiscal 2001's second quarter was $226,000, and for the first six months totaled $453,000.
Continuing the Company's strong cash flow in recent quarters, earnings before interest, taxes, depreciation and amortization (EBITDA) for the fiscal 2002 second quarter rose 12 percent to $2.9 million, compared with $2.6 million for the same period one year ago.
LaBarge's fiscal 2002 second-quarter gross margin was 21.2 percent compared with 20.6 percent for the prior year's second quarter. Fiscal 2002 second-quarter selling and administrative expenses declined as a percentage of sales to 14.2 percent from 15.1 percent. Interest expense for the second quarter declined 40 percent to $336,000 compared with $557,000 in the second quarter one year ago, reflecting reduced debt levels and, to a lesser extent, lower interest rates.
The Company reported $15,650,000 in total debt at the end of the fiscal 2002 second quarter, down 10 percent from fiscal 2001 year end and down 26 percent from the comparable period one year ago. Stockholders' equity was $31,807,000, or $2.13 per basic share, up 7 percent and 17 percent, respectively, from the fiscal 2001 year end and second quarter one year ago.
Consolidated backlog of unshipped orders at the end of the fiscal 2002 second quarter was $95.2 million, up slightly from the first quarter and up 5 percent from this time last year. Last year's second-quarter backlog included approximately $38 million of a $39 million contract from Northrop Grumman Corporation to produce electro-mechanical assemblies used in automated postal sorting equipment.
``Both our Manufacturing Services Group and Network Technologies Group generated excellent year-over-year sales growth during the second quarter,'' said Craig LaBarge, chief executive officer and president.
``Sales in our manufacturing services business, which represented 97 percent of total fiscal 2002 second-quarter revenues, increased 15 percent from last year's second quarter due to higher sales to both defense and commercial customers,'' said Mr. LaBarge. ``Most of this growth is attributable to increased shipments to defense customers and shipments of electro-mechanical assemblies used in automated postal sorting equipment. Sales to defense customers accounted for 33 percent of the Manufacturing Services Group's fiscal 2002 second-quarter revenues, compared with 30 percent for the year-ago period. Shipments on the postal program represented 31 percent of the Manufacturing Services Group's second-quarter revenues, compared with 20 percent in last year's second quarter.
``We are sustaining our strong backlog level by continuing to book important new business,'' said Mr. LaBarge. ``An excellent example is the new work we are doing for PerkinElmer Detection Systems building electronic assemblies for use in automated airport checked baggage inspection systems. During the last two weeks, we announced that LaBarge won contracts from PerkinElmer valued at more than $10 million. We continue to seek and win additional business that is compatible with our manufacturing and system integration capabilities.
``Our Network Technologies Group generated revenues of $842,000 in the 2002 second quarter, up significantly from $358,000 one year ago,'' said Mr. LaBarge. ``Still an emerging business for LaBarge, the Network Technologies Group represented 3 percent of the quarter's consolidated revenues. The group's sales were primarily to customers in the railroad industry where LaBarge's proprietary ScadaNET Network(TM) has been selected by several rail organizations to provide remote monitoring of critical safety equipment at railroad crossings. Progress marketing the ScadaNET technology to the pipeline corrosion market was somewhat slower than expected in the second quarter. Overall, the group is making measured progress in selling the ScadaNET Network into its target markets. However, it is possible the Network Technologies Group will not reach profitability during the current fiscal year as originally expected.
``Despite the weak economic conditions, we have made very good progress in broadening our customer base and building our backlog -- primarily with customers in the defense, aerospace and airport security industries. With these new bookings, we have essentially replaced the large Northrop Grumman postal program in our backlog, although we have not yet completely filled the revenue hole in our fiscal 2002 fourth quarter. The Northrop Grumman postal contract has accounted for a significant portion of our sales and earnings in recent quarters and will be completed during the third fiscal quarter.''
Mr. LaBarge concluded, ``Looking forward, we anticipate third-quarter sales and earnings will be comparable with second-quarter results. In addition, we expect fiscal 2002 full-year sales and earnings will exceed fiscal 2001 levels.''
LaBarge, Inc. reports the following . . . .
LaBarge, Inc.
Business Segment Information
(In thousands)
NET SALES
Three Months Ended Six Months Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2001 2000 2001 2000
Manufacturing
Services Group $30,653 $26,565 $61,683 $50,560
Network
Technologies Group 842 358 1,920 647
$31,495 $26,923 $63,603 $51,207
NET EARNINGS
Three Months Ended Six Months Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2001 2000 2001 2000
Pretax earnings:
Manufacturing
Services Group $2,419 $2,349 $4,345 $4,657
Network
Technologies Group (212) (560) (289) (1,159)
Corporate and
other items 89 26 200 (45)
Interest expense (336) (557) (652) (1,095)
Net earnings before
income taxes 1,960 1,258 3,604 2,358
Income tax expense 760 532 1,369 997
Net earnings $1,200 $726 $2,235 $1,361
BACKLOG
Dec. 30, Sept. 30, July 1, April 1, Dec. 31,
2001 2001 2000 2000 2000
Manufacturing
Services Group $94,641 $94,097 $86,624 $93,150 $89,542
Network
Technologies Group 540 568 376 1,388 860
$95,181 $94,665 $87,000 $94,538 $90,402
LaBarge, Inc.
Consolidated Statements of Operations
(In thousands, except per-share data)
Three Months Ended Six Months Ended
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2001 2000 2001 2000
Net sales $31,495 $26,923 $63,603 $51,207
Costs and expenses:
Cost of sales 24,825 21,383 50,713 40,120
Selling and
administrative expense 4,476 4,052 8,831 8,240
Interest expense 336 557 652 1,095
Other income, net (102) (327) (197) (606)
Income before income taxes 1,960 1,258 3,604 2,358
Income tax expense 760 532 1,369 997
Net earnings $1,200 $726 $2,235 $1,361
Basic net earnings
per share $.08 $.05 $.15 $.09
Average common shares
outstanding 14,961 14,899 14,971 14,884
Diluted net earnings
per share $.08 $.05 $.15 $.09
Average diluted common
shares outstanding 15,364 14,899 15,254 14,884
Other data:
Earnings before interest,
taxes, depreciation and
amortization (EBITDA) $2,861 $2,554 $5,365 $4,974
LaBarge, Inc.
Consolidated Balance Sheets
(In thousands)
December 30, July 1,
2001 2001
ASSETS
Current assets:
Cash and cash equivalents $2,322 $666
Accounts and notes receivable, net 11,888 16,946
Inventories 22,666 23,212
Prepaid expenses 700 727
Deferred tax assets, net 923 1,087
Total current assets $38,499 $42,638
Property, plant and equipment, net 13,231 13,113
Deferred tax assets, net 1,039 1,908
Intangible assets, net 4,927 4,693
Other assets, net 5,339 5,186
$63,035 $67,538
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $2,650 $2,500
Current maturities of long-term debt 1,758 1,779
Trade accounts payable 7,734 9,605
Accrued employee compensation 5,342 5,965
Other accrued liabilities 886 3,899
Total current liabilities $18,370 $23,748
Other long-term liabilities 1,616 953
Long-term debt 5,621 7,500
Subordinated debt 5,621 5,621
Stockholders' equity:
Common stock, $.01 par value.
Authorized 40,000,000 shares;
issued 15,773,253 shares at December 30,
2001 and 15,773,253 at July 1, 2001,
including shares in treasury 158 158
Additional paid-in capital 13,520 13,569
Retained earnings 21,041 18,806
Accumulated other comprehensive loss (164) (97)
Less cost of common stock in treasury,
825,519 shares at December 30, 2001
and 812,176 shares at July 1, 2001 (2,748) (2,720)
Total stockholders' equity 31,807 29,716
$63,035 $67,538
LaBarge, Inc. is a broad-based provider of electronics to technology-driven companies in diverse industrial markets. The Company provides its customers with sophisticated electronic products and services through contract electronics design and manufacturing services, and proprietary wireless data communications products and network services. Headquartered in St. Louis, LaBarge has operations in Arkansas, Kansas, Missouri, Oklahoma, and Texas. The Company's Web site address is labarge.com .
Statements contained in this release relating to LaBarge, Inc. that are not historical facts are forward-looking statements within the meaning of the federal securities laws. Forward-looking statements involve risks and uncertainties. Future events and LaBarge |
