UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
August 7, 2003
ULTRALIFE BATTERIES, INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation or organization)
0-20852 16-1387013
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(Commission File Number) (I.R.S. Employer Identification No.)
2000 Technology Parkway, Newark, New York 14513
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(Address of principal executive offices) (Zip Code)
(315) 332-7100
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(Registrant's telephone number, including area code)
Item 7. Financial Statements, Pro Forma Financials and Exhibits.
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
99.1 Press Release dated August 7, 2003
Item 12. Results of Operations and Financial Condition.
On August 7, 2003, Ultralife Batteries, Inc. (the "Company") issued a
press release setting forth the Company's financial results for the second
quarter of 2003. A copy of the Company's press release is attached hereto as
Exhibit 99.1.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ULTRALIFE BATTERIES, INC.
Dated: August 7, 2003 By: /s/Robert W. Fishback
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Robert W. Fishback
Vice President - Finance and
Chief Financial Officer
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Index to Exhibits
(99) Additional Exhibits
99.1 Press Release dated August 7, 2003
4
Exhibit 99.1
Company Contact:
Ultralife Batteries, Inc.
Robert W. Fishback
(315) 332-7100
bfishback@ulbi.com
Investor Relations Contact:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening
(212) 838-3777
jks@lhai.com
Media Contact:
Lippert/Heilshorn & Associates, Inc.
Chenoa Taitt
(212) 201-6635
ctaitt@lhai.com
ULTRALIFE BATTERIES, INC. REPORTS SECOND QUARTER
OPERATING INCOME OF $1.9 MILLION ON REVENUE OF $20.1 MILLION
- Gross Profit Increases 50% on 30% Revenue Growth Over Prior Quarter -
Newark, NY, August 7, 2003 - Ultralife Batteries, Inc. (NASDAQ: ULBI) today
reported operating income of $1.9 million on record revenues of $20.1 million
for its second quarter ended June 28, 2003. Net income was $2.1 million, or
$0.16 per diluted share, including $0.4 million of non-cash, non-operating
income from foreign currency translation impacts pertaining to intercompany
loans. In addition, the Company generated positive operating cash flow (defined
as operating income plus depreciation and amortization) of $2.7 million.
Revenues for the second quarter increased 134% to $20.1 million from $8.6
million for the same three-month period in the prior year. The $11.5 million
increase was driven by higher shipments of the Company's HiRate(R) batteries,
notably the BA-5390 batteries, which are used by military organizations in a
variety of communications and weapons systems.
Gross margin for the June 2003 quarter reached $4.7 million, or 24% of revenues,
compared with $1.1 million, or 13% of revenues, in the same period a year ago
reflecting revenue growth and manufacturing efficiency improvements. Operating
expenses were $2.8 million, consistent with last year's level, exclusive of a
$14.3 million impairment charge on certain fixed assets. As a result, the
Company reported operating income of $1.9 million for the three months ended
June 28, 2003 compared to an operating loss of $16.1 million in the prior year.
Net income amounted to $2.1 million, or $0.16 per diluted share, compared with a
net loss of $16.5 million, or $1.28 per share, for the same period a year ago.
Compared to the first quarter that ended March 29, 2003, the second quarter
gross margin grew 50% on a 30% revenue gain, and operating income increased
three-fold from $0.6 million to $1.9 million.
For the first six months of 2003, revenues reached $35.5 million, a 104%
increase over the $17.4 million in the prior year. This growth was primarily
fueled by strong demand for HiRate batteries, in particular the BA-5390, as well
as higher 9-volt battery shipments. Operating income was $2.5 million compared
to an operating loss of $18.2 million in 2002 that included a $14.3 million
asset impairment charge. Net income amounted to $2.5 million in the year-to-date
period in 2003, or $0.19 per diluted share, compared with a net loss of $19.3
million in the same six-month period last year, or a loss of $1.52 per share.
"We set a goal at the beginning of this year to sustain profitability starting
in the first quarter of 2003, and we are delivering," said Mr. Kavazanjian,
president and chief executive officer of Ultralife Batteries. "This quarter's
operating and gross margin expansion, and strong revenue growth, demonstrate the
positive returns we get from additional revenue and the management team's
ability to execute on its near-term growth plans. At the same time, we continue
to work toward expanding in other key growth markets, including medical,
automotive telematics and rechargeable."
-MORE-
Third Quarter and Full Year Outlook
For the third quarter ending September 27, 2003, management expects operating
income to exceed $2.1 million and revenue to reach at least $20.0 million. This
compares to an operating loss of $1.9 in the same quarter the year before.
In addition, management has revised its guidance for the full year 2003 and now
estimates that operating income and revenue will be approximately $7.0 million
and $75.0 million, respectively. This compares with an operating loss of $7.5
million, excluding a $14.3 million asset impairment charge, and revenue of $33.0
million, respectively, in 2002. The guidance management previously provided
called for basic earnings per share in the range of $0.35 to $0.45 and revenues
of $65.0 million, which assumed operating income in the range of approximately
$5.0 million to $6.3 million.
About Ultralife Batteries, Inc.
Ultralife is a leading developer, manufacturer, and marketer of standard and
customized lithium primary (non-rechargeable), lithium ion and lithium polymer
rechargeable batteries. Ultralife's high-energy batteries use advanced lithium
technology and are used in military, industrial and consumer portable electronic
products. Through its range of standard products and ability to customize for a
wide range of applications, Ultralife is able to provide the next generation of
battery solutions. OEM, retail and government customers include Energizer, Kidde
Safety, Philips Medical Systems, Radio Shack and the national defense agencies
of the United States and United Kingdom, among others.
Ultralife's headquarters, principal manufacturing and research facilities are in
Newark, New York, near Rochester. Ultralife (UK) Ltd., a second manufacturing
and research facility, is located in Abingdon, U.K. Both facilities are
ISO-9001/2000 certified.
This press release may contain forward-looking statements based on current
expectations that involve a number of risks and uncertainties. The potential
risks and uncertainties that could cause actual results to differ materially
include: worsening global economic conditions, world events, increased
competitive environment and pricing pressures, disruptions related to
restructuring actions and delays. Further information on these factors and other
factors that could affect Ultralife's financial results is included in
Ultralife's Securities and Exchange Commission (SEC) filings, including the
latest Annual Report on Form 10-K.
Detailed information on Ultralife is available at the Company's web site,
www.ultralifebatteries.com.
Conference Call Information
Investors are invited to listen to a live webcast of the conference call at
10:00 a.m. ET on August 7 at www.ultralifebatteries.com/invest.asp. To listen to
the live call, please go to the web site at least fifteen minutes early to
download and install any necessary audio software. For those who cannot listen
to the live broadcast, a replay of the webcast will be available shortly after
the call at the same location for 90 days. Investors may also listen to a
telephone replay of the conference call by dialing 800-428-6051, Reservation
#300352, starting at 12:00 p.m. ET August 7 until 12:00 p.m. ET August 15.
Ultralife and HiRate are registered trademarks of Ultralife Batteries, Inc.
-MORE-
ULTRALIFE BATTERIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(unaudited)
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Three Month Period Ended Six Month Period Ended
June 28, June 30, June 28, June 30,
2003 2002 2003 2002
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Revenues:
Battery sales $ 19,828 $ 8,370 $ 34,840 $ 17,197
Technology contracts 282 208 698 243
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Total revenues 20,110 8,578 35,538 17,440
Cost of products sold:
Battery costs 15,209 7,305 27,264 15,212
Technology contracts 170 188 384 221
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Total cost of products sold 15,379 7,493 27,648 15,433
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Gross margin 4,731 1,085 7,890 2,007
Operating expenses:
Research and development 646 1,099 1,231 2,137
Selling, general, and administrative 2,187 1,755 4,149 3,736
Impairment of long-lived assets -- 14,318 -- 14,318
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Total operating expenses 2,833 17,172 5,380 20,191
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Operating income (loss) 1,898 (16,087) 2,510 (18,184)
Other income (expense):
Interest, net (146) (103) (237) (201)
Equity loss in UTI -- (678) -- (1,179)
Miscellaneous 397 362 187 265
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Income (loss) before income taxes 2,149 (16,506) 2,460 (19,299)
Income taxes -- -- -- --
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Net income (loss) $ 2,149 $(16,506) $ 2,460 $(19,299)
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Earnings (loss) per share - basic $ 0.17 $ (1.28) $ 0.19 $ (1.52)
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Earnings (loss) per share - diluted $ 0.16 $ (1.28) $ 0.19 $ (1.52)
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Average shares outstanding - basic 12,927 12,920 12,895 12,662
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Average shares outstanding - diluted 13,651 12,920 13,266 12,662
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-MORE-
ULTRALIFE BATTERIES, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
(unaudited)
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June 28, December 31,
ASSETS 2003 2002
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Current assets:
Cash and investments $ 1,664 $ 1,374
Trade accounts receivable, net 13,140 6,200
Inventories 6,729 5,813
Prepaid expenses and other current assets 1,110 968
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Total current assets 22,643 14,355
Property and equipment 17,260 15,336
Other assets 1,633 1,683
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Total Assets $ 41,536 $ 31,374
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 7,065 $ 4,283
Other current liabilities 6,476 2,861
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Total current liabilities 13,541 7,144
Long-term debt and capital lease obligations 1,703 1,987
Shareholders' equity:
Common stock, par value $0.10 per share 1,387 1,358
Capital in excess of par value 116,876 115,251
Accumulated other comprehensive loss (1,081) (1,016)
Accumulated deficit (88,512) (90,972)
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28,670 24,621
Less -- Treasury stock, at cost 2,378 2,378
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Total shareholders' equity 26,292 22,243
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Total Liabilities and Shareholders' Equity $ 41,536 $ 31,374
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