REPT .31.COMTEX)B: Reptron Electronics, Inc. Announces Second Quarter And Six-Mon
h 2003 Financial Results
Reptron's President and Chief Operating Officer, Paul J. Plante, commented, "We
have developed a strategic plan to improve our operating performance and
strengthen our balance sheet. This plan includes our exiting the distribution
business, restructuring our Convertible Notes, reducing operating expenses and
improving our cash conversion cycle." Plante continued, "We made solid progress
on all of these fronts during the second quarter of 2003 and we remain committed
to successful completion and continued improvement of these strategic
initiatives in the second half of 2003. We believe these steps will help to
restore profitable operating results at Reptron Electronics."
B: Reptron Electronics, Inc. Announces Second Quarter And Six-Month 2003 Financi
l Results
TAMPA, Fla., Aug 19, 2003 /PRNewswire-FirstCall via COMTEX/ -- Reptron
Electronics. (Nasdaq: REPT), an electronics manufacturing services company,
today reported financial results for its second quarter and six month period
ended June 30, 2003. As previously reported, Reptron sold certain identified
assets of its electronic components distribution division on June 13, 2003. The
2003 results have been adjusted to reflect the results of the remaining
operations while segregating and summarizing the electronic component
distribution business as a discontinued operation, in accordance with current
accounting pronouncements.
Reptron recorded second quarter, 2003 net sales from continuing operations of
$45.4 million, an 8% decrease from the same period a year ago and flat when
compared to the first quarter of 2003. The Company incurred a second quarter
2003 loss from continuing operations totaling $1.9 million, or $0.30 per fully
diluted share, compared to a $3.1 million net loss from continuing operations,
$0.48 per fully diluted share, in the same period a year ago. Reptron generated
$7.8 million in cash from operations in the second quarter, 2003 which was used
primarily to further reduce debt.
For the six months ended June 30, 2003, net sales from continuing operations
totaled $90.6 million, a 9% decrease from the same period a year ago. The
Company recorded a $4.3 million net loss from continuing operations during the
first six months of 2003, or $0.67 per fully diluted share, compared to a net
loss from continuing operations of $7.5 million, or $1.16 per fully diluted
share, in the same period last year. Reptron also incurred a net loss from
discontinued operations totaling $17.3 million, or $2.70 per fully diluted share
in the first half of 2003 compared to a net loss from discontinued operations of
$4.7 million, or $0.73 per fully diluted share, in the same period in 2002. The
2003 loss from discontinued operations includes charges associated with
impairment of long lived assets and increases in reserves for assets held for
sale. Non-cash charges included in the 2003 loss from discontinued operations
totaled $14.7 million.
As of June 30, 2003, Reptron owed $76.3 million under its 6 3/4% Convertible
Subordinated Notes due in August, 2004 ("Notes"). Reptron remains in default of
the Notes for its failure to pay interest due on February 1, 2003 and August 1,
2003, as earlier reported. Interest expense associated with this debt totaling
approximately $1.3 million has been accrued and is included in the second
quarter, 2003 net loss from continuing operations, and approximately $2.6
million of interest expense for this debt is included in the six month, 2003 net
loss from continuing operations. Reptron previously announced it has reached an
agreement to restructure these Notes, the consummation of which being subject to
a number of conditions and the negotiation and execution of definitive
agreements.
Reptron's President and Chief Operating Officer, Paul J. Plante, commented, "We
have developed a strategic plan to improve our operating performance and
strengthen our balance sheet. This plan includes our exiting the distribution
business, restructuring our Convertible Notes, reducing operating expenses and
improving our cash conversion cycle." Plante continued, "We made solid progress
on all of these fronts during the second quarter of 2003 and we remain committed
to successful completion and continued improvement of these strategic
initiatives in the second half of 2003. We believe these steps will help to
restore profitable operating results at Reptron Electronics."
Due to significant transactions currently in process, providing guidance for
future periods is extremely difficult. Therefore, Reptron will not be providing
such guidance at the present time.
About Reptron
Reptron Electronics, Inc. is an electronics manufacturing services company
providing engineering services, electronics manufacturing services and display
integration services. Reptron Manufacturing Services offers full electronics
manufacturing services including complex circuit board assembly, complete supply
chain services and manufacturing engineering services to OEMs in a wide variety
of industries. Reptron Display and System Integration provides value- added
(COMTEX) B: Reptron Electronics, Inc. Announces Second Quarter And Six-Mon
h 2003 Financial Results
B: Reptron Electronics, Inc. Announces Second Quarter And Six-Month 2003 Financi
l Results
TAMPA, Fla., Aug 19, 2003 /PRNewswire-FirstCall via COMTEX/ -- Reptron
Electronics. (Nasdaq: REPT), an electronics manufacturing services company,
today reported financial results for its second quarter and six month period
ended June 30, 2003. As previously reported, Reptron sold certain identified
assets of its electronic components distribution division on June 13, 2003. The
2003 results have been adjusted to reflect the results of the remaining
operations while segregating and summarizing the electronic component
distribution business as a discontinued operation, in accordance with current
accounting pronouncements.
Reptron recorded second quarter, 2003 net sales from continuing operations of
$45.4 million, an 8% decrease from the same period a year ago and flat when
compared to the first quarter of 2003. The Company incurred a second quarter
2003 loss from continuing operations totaling $1.9 million, or $0.30 per fully
diluted share, compared to a $3.1 million net loss from continuing operations,
$0.48 per fully diluted share, in the same period a year ago. Reptron generated
$7.8 million in cash from operations in the second quarter, 2003 which was used
primarily to further reduce debt.
For the six months ended June 30, 2003, net sales from continuing operations
totaled $90.6 million, a 9% decrease from the same period a year ago. The
Company recorded a $4.3 million net loss from continuing operations during the
first six months of 2003, or $0.67 per fully diluted share, compared to a net
loss from continuing operations of $7.5 million, or $1.16 per fully diluted
share, in the same period last year. Reptron also incurred a net loss from
discontinued operations totaling $17.3 million, or $2.70 per fully diluted share
in the first half of 2003 compared to a net loss from discontinued operations of
$4.7 million, or $0.73 per fully diluted share, in the same period in 2002. The
2003 loss from discontinued operations includes charges associated with
impairment of long lived assets and increases in reserves for assets held for
sale. Non-cash charges included in the 2003 loss from discontinued operations
totaled $14.7 million.
As of June 30, 2003, Reptron owed $76.3 million under its 6 3/4% Convertible
Subordinated Notes due in August, 2004 ("Notes"). Reptron remains in default of
the Notes for its failure to pay interest due on February 1, 2003 and August 1,
2003, as earlier reported. Interest expense associated with this debt totaling
approximately $1.3 million has been accrued and is included in the second
quarter, 2003 net loss from continuing operations, and approximately $2.6
million of interest expense for this debt is included in the six month, 2003 net
loss from continuing operations. Reptron previously announced it has reached an
agreement to restructure these Notes, the consummation of which being subject to
a number of conditions and the negotiation and execution of definitive
agreements.
Reptron's President and Chief Operating Officer, Paul J. Plante, commented, "We
have developed a strategic plan to improve our operating performance and
strengthen our balance sheet. This plan includes our exiting the distribution
business, restructuring our Convertible Notes, reducing operating expenses and
improving our cash conversion cycle." Plante continued, "We made solid progress
on all of these fronts during the second quarter of 2003 and we remain committed
to successful completion and continued improvement of these strategic
initiatives in the second half of 2003. We believe these steps will help to
restore profitable operating results at Reptron Electronics."
Due to significant transactions currently in process, providing guidance for
future periods is extremely difficult. Therefore, Reptron will not be providing
such guidance at the present time.
About Reptron
Reptron Electronics, Inc. is an electronics manufacturing services company
providing engineering services, electronics manufacturing services and display
integration services. Reptron Manufacturing Services offers full electronics
manufacturing services including complex circuit board assembly, complete supply
chain services and manufacturing engineering services to OEMs in a wide variety
of industries. Reptron Display and System Integration provides value- added
display design engineering and system integration services to OEMs. For more
information, please access www.reptron.com.
Safe Harbor statement under the Private Securities Litigation Reform Act of
1995: Certain of the above statements contained in this press release, are
forward-looking statements that involve a number of risks and uncertainties.
Such forward-looking statements are within the meaning of that term in Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities
Act of 1934, as amended. Factors that could cause actual results to differ
materially include the following: the definitive agreements attendant to the
bond indebtedness are not successfully negotiated or executed, approval of the
definitive agreements by the requisite constituencies are not obtained, failure
of the Company's secured working capital lender to continue to provide
financing, failure of the Company's third party vendors to continue to provide
adequate credit terms, the filing of a bankruptcy proceeding, business
conditions and growth in the Company's industry and in the general economy;
competitive factors; risks due to shifts in market demand; risks inherent with
predicting revenue and earnings outcomes; uncertainties involved in implementing
improvements in the manufacturing process; the ability of the Company to
complete and integrate acquisitions; and the risk factors listed from time to
time in the Company's reports filed with the Securities and Exchange Commission
as well as assumptions regarding the foregoing. In particular, any statement
suggesting the restoration of profitable operating results are forward looking
statements. The words "believe," "estimate," "expect," "intend," "anticipate,"
"plan," "appears," and similar expressions and variations thereof identify
certain of such forward-looking statements, which speak only as of the dates on
which they were made. The Company undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. Readers are cautioned that any such forward looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
indicated in the forward- looking statements as a result of various factors.
Readers are cautioned not to place undue reliance on these forward-looking
statements.
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three months ended
June 30,
2003 2002
Net sales:
Reptron Computer Products $ 5,751 $ 6,163
Electronic Manufacturing Services 39,680 43,003
Total net sales $45,431 $49,166
Gross profit:
Reptron Computer Products $(570) $548
Electronic Manufacturing Services 5,450 4,442
Total gross profit 4,880 4,990
Selling, general and
administrative expenses(1) 5,050 6,425
Operating loss (170) (1,435)
Interest expense:
Convertible notes(2) 1,288 1,288
Other 456 384
Total interest expense 1,744 1,672
Loss from continuing
operations before income taxes (1,914) (3,107)
Income tax provision (benefit) -- --
Loss from continuing operations(3) (1,914) (3,107)
Discontinued operations
Loss from operations
of discontinued Reptron
Distribution (101) (2,495)
Income tax benefit -- --
Loss on discontinued operations (101) (2,495)
Net loss $(2,015) $(5,602)
Net loss from continuing
operations per common share - diluted $ (0.30) $ (0.48)
Net loss from discontinued
operations per common share - diluted $ (0.01) $ (0.39)
Net loss per common share - diluted $ (0.31) $ (0.87)
Weighted average common
shares outstanding - diluted 6,417,196 6,417,196
(1) Includes all common or shared expenses which cannot be properly
charged directly to any specific operating division. No allocation
has been made to the discontinued distribution operation. Management
believes these common expenses will decrease upon completion of the
sale of the discontinued distribution operation.
(2) Interest accrued but unpaid on the Company's Convertible Notes.
Negotiations are in process to restructure these notes.
(3) The loss from continuing operations includes depreciation and
amortization totaling $1.5 million in the second quarter, 2003 and
$1.7 million in the second quarter, 2002.
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Six months ended
June 30,
2003 2002
Net sales:
Reptron Computer Products $16,390 $ 21,238
Electronic Manufacturing Services 74,205 78,780
Total net sales $90,595 $100,018
Gross profit:
Reptron Computer Products $ 26 $ 2,047
Electronic Manufacturing Services 9,753 6,982
Total gross profit 9,779 9,029
Selling, general and
administrative expenses(1) 10,686 13,045
Operating loss (907) (4,016)
Interest expense
Convertible Notes (2) 2,576 2,576
Other 824 858
Total interest expense 3,400 3,434
Loss from continuing operations
before income taxes (4,307) (7,450)
Income tax provision (benefit) -- --
Loss from continuing operations(3) (4,307) (7,450)
Discontinued operations
Loss from operations
of discontinued Reptron
Distribution (including loss
on disposal of $1,789 in 2003)(4) (17,322) (4,690)
Income tax benefit -- --
Loss on discontinued operations (17,322) (4,690)
Net loss $(21,629) $(12,140)
Net loss from continuing
operations per common
share - diluted $ (0.67) $ (1.16)
Net loss from discontinued
operations per common
share - diluted $ (2.70) $ (0.73)
Net loss per common share - diluted $ (3.37) $ (1.89)
Weighted average common shares
outstanding - diluted 6,417,196 6,417,196
(1) Includes all common or shared expenses which cannot be properly
charged directly to any specific operating division. No allocation
has been made to the discontinued distribution operation. Management
believes these common expenses will decrease upon completion of the
sale of the discontinued distribution operation.
(2) Interest accrued but unpaid on the Company's Convertible Notes.
Negotiations are in process to restructure these notes.
(3) The loss from continuing operations includes depreciation and
amortization totaling $3.0 million in the first six months of 2003
and $3.4 million in the first six months of 2002.
(4) Non-cash charges included in the loss in discontinued operations
totaled $14.7 million.
REPTRON ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
ASSETS
June 30, Dec 31,
2003 2002
CURRENT ASSETS
Cash and cash equivalents $ 509 $ 370
Accounts receivable - trade, net 29,855 41,743
Inventories, net 22,832 26,746
Assets held for sale 2,544 28,832
Prepaid expenses and other 2,089 1,909
Total current assets 57,829 99,600
PROPERTY, PLANT & EQUIPMENT - AT COST, NET 21,205 23,377
GOODWILL, NET 26,779 30,073
DEFERRED INCOME TAX 2,447 2,449
OTHER ASSETS 1,821 1,475
TOTAL ASSETS $110,081 $156,974
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable - trade $ 17,087 $ 19,045
Note payable to bank 18,854 33,606
6 3/4% Convertible Subordinated Notes 76,315 --
Current portion of long-term obligations 880 1,080
Liabilities held for sale -- 7,948
Accrued expenses 8,748 8,860
Total current liabilities 121,804 70,539
LONG-TERM OBLIGATIONS, less current portion 3,878 80,407
SHAREHOLDERS' EQUITY (DEFICIT)
Preferred Stock - authorized 15,000,000 shares
of $.10 par value; no shares issued -- --
Common Stock - authorized 50,000,000 shares
of $.01 par value; issued and outstanding,
6,417,196 and 6,417,196 shares, respectively 64 64
Additional paid-in capital 23,146 23,146
Retained earnings (deficit) (38,811) (17,182)
TOTAL SHAREHOLDERS EQUITY (DEFICIT) (15,601) 6,028
TOTAL LIABILITIES AND
SHAREHOLDERS EQUITY (DEFICIT) $110,081 $156,974
SOURCE Reptron Electronics, Inc.
CONTACT: Paul J. Plante, President and Chief Operating Officer of
Reptron Electronics, Inc., +1-813-891-4058, pplante@reptron.c
m
URL: reptron.com
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Copyright (C) 2003 PR Newswire. All rights reserved.
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KEYWORD: Florida
INDUSTRY KEYWORD: CPR
SUBJECT CODE: ERN
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