Ultralife Corporation
Oct 27, 2016

Ultralife Corporation Reports Third Quarter Results

NEWARK, N.Y., Oct. 27, 2016 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $1.1 million on revenue of $19.6 million for the third quarter ended September 25, 2016.  For the quarter ended September 27, 2015, the Company reported operating income of $1.2 million on revenue of $19.0 million.

"Successful execution of the strategy to diversify beyond our core U.S. government/defense business while abiding by our business model parameters produced solid third quarter results," said Michael D. Popielec, President and Chief Executive Officer.  "Although weak economic conditions continued to constrain revenue growth, we delivered operating income for the third quarter that was more than double the second quarter, and profitability for the eighth consecutive quarter.  We also remain poised to achieve profitable growth for 2016.  Finally, we continue to build resources to support investments in organic and inorganic growth opportunities through greater operating leverage and inventory reductions."   

Third Quarter 2016 Financial Results

Revenue was $19.6 million, an increase of $0.6 million, or 3.1%, compared to $19.0 million for the third quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales partially offset by lower core Battery & Energy sales.  Battery & Energy Products sales declined to $14.9 million compared to $16.4 million last year due primarily to lower sales to a large U.S. government/defense OEM and lower 9-Volt sales, partially offset by higher medical sales, the contribution of Accutronics, and a large shipment to a non-U.S. government/defense customer.  Communications Systems sales grew 76.6% to $4.7 million compared to $2.7 million for the same period last year reflecting shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué ("VIPER") Program.

Gross profit was $6.0 million, or 30.5% of revenue, compared to $5.9 million, or 31.0% of revenue, for the same quarter a year ago.  Battery & Energy Products' gross margin was 30.3%, compared to 29.1% last year, an increase of 120 basis points reflecting favorable product mix including the contribution of Accutronics.  Communications Systems' gross margin declined to 31.4% compared to 42.4% for the prior year primarily due to sales mix.       

Operating expenses were $4.9 million compared to $4.7 million last year reflecting the addition of Accutronics, partially offset by certain cost reduction actions along with continued tight control over discretionary spending.  Operating expenses were 24.8% of revenue equal to 24.8% of revenue for the year earlier period.  

Operating income was $1.1 million compared to $1.2 million last year for an operating margin of 5.8% compared to 6.2% last year. 

Net income was $1.0 million, or $0.07 per share, equal to net income of $1.0 million, or $0.07 per share, for the third quarter of 2015.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.

Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorp.com.

Conference Call Information

Ultralife will hold its third quarter earnings conference call today at 10:00 AM ET. To participate in the live call, please dial (800) 915-4836 at least ten minutes before the scheduled start time, identify yourself and ask for the Ultralife call. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. 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.

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:  potential reductions in U.S. military spending, uncertain global economic conditions and acceptance of our new products on a global basis. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances.  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. 

 
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
    
 ASSETS
 September 25, December 31, 
  2016   2015  
Current Assets:    
Cash and Cash Equivalents$6,732  $14,533  
Trade Accounts Receivable, Net 12,888   11,430  
Inventories 24,877   23,814  
Prepaid Expenses and Other Current Assets 2,692   2,169  
Total Current Assets 47,189   51,946  
     
Property, Equipment and Improvements, Net 8,551   9,038  
Goodwill, Intangibles and Other Assets 27,817   20,538  
Total Assets$83,557  $81,522  
             
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:   
Accounts Payable$6,323  $6,494  
Accrued Compensation and Related Benefits 1,264   2,377  
Accrued Expenses and Other Current Liabilities 3,889   1,976  
Current Portion of Debt -   -  
Total Current Liabilities 11,476   10,847  
Deferred Income Taxes and Other Non-Current Liabilities 5,528   4,659  
Total Liabilities 17,004   15,506  
     
Shareholders' Equity:    
Common Stock 1,925   1,918  
Capital in Excess of Par Value 177,737   177,007  
Accumulated Deficit (92,287)  (94,051) 
Accumulated Other Comprehensive Loss (2,221)  (907) 
Treasury Stock (18,433)  (17,808) 
Total Ultralife Equity 66,721   66,159  
Non-Controlling Interest (168)  (143) 
Total Shareholders' Equity 66,553   66,016  
     
Total Liabilities and Shareholders' Equity$83,557  $81,522  
         



ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
        
 Three Month Periods Ended Nine Month Periods Ended
 September
25,
 September
27,
 September
25,
 September 
27,
  2016   2015   2016   2015 
Revenues:       
Battery & Energy Products$14,943  $16,390  $47,142  $48,638 
Communication Systems 4,688   2,654   13,693   8,538 
Total Revenues 19,631   19,044   60,835   57,176 
        
Cost of Products Sold:       
Battery & Energy Products 10,420   11,616   32,738   34,538 
Communication Systems 3,214   1,528   9,795   4,872 
Total Cost of Products Sold 13,634   13,144   42,533   39,410 
        
Gross Profit 5,997   5,900   18,302   17,766 
        
Operating Expenses:       
Research and Development 1,357   1,224   4,438   3,917 
Selling, General and Administrative 3,502   3,503   11,745   11,037 
Total Operating Expenses 4,859   4,727   16,183   14,954 
        
Operating Income  1,138   1,173   2,119   2,812 
        
Other Income (Expense) (30)  5   (167)  (156)
                
Income Before Income Taxes 1,108   1,178   1,952   2,656
 
        
Income Tax Provision 92   130   213   312 
        
Net Income  1,016   1,048   1,739   2,344 
        
Net Loss (Income) Attributable to Non-Controlling Interest 3   (1)  25   23 
        
Net Income Attributable to Ultralife Corporation$1,019  $1,047  $1,764  $2,367 
                
                
Net Income Per Share Attributable to Ultralife Common Shareholders — Basic$.07  $.07  $.12  $.14 
                
Net Income Per Share Attributable to Ultralife Common Shareholders — Diluted$.07  $.07  $.11  $.14 
        
Weighted Average Shares Outstanding — Basic 15,207   15,633   15,262   16,503 
        
Weighted Average Shares Outstanding — Diluted 15,298   15,740   15,446   16,550 
                

 

Company Contact:
Ultralife Corporation
Philip A. Fain 
(315) 210-6110
pfain@ulbi.com
 
Investor Relations Contact:
LHA 
Jody Burfening
(212) 838-3777
jburfening@lhai.com