SEC Filing | Ultralife Corporation

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K


CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of the earliest event reported) July 30, 2015



ULTRALIFE CORPORATION
(Exact name of registrant as specified in its charter)



Delaware	000-20852	16-1387013
(State of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2000 Technology Parkway, Newark, New York			14513
(Address of principal executive offices)			(Zip Code)

(315) 332-7100
(Registrant’s telephone number, including area code)



Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

NEWARK, N.Y. – July 30, 2015 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $0.8 million on revenue of $19.0 million for the quarter ended June 28, 2015. For the second quarter of 2014, the Company reported an operating loss of $1.3 million on revenue of $15.2 million.

“Our second quarter results demonstrate the operating leverage inherent in our business model and the success of our strategy to invest in new products, customers, markets and geographies. Following a strong first quarter performance, we delivered another quarter of 25% revenue growth, substantial gains in profitability marked by a consolidated gross margin of 31%, an operating margin of 4.3%, and an EPS of $0.05,” Michael D. Popielec, Ultralife's President and Chief Executive Officer. “At the mid-point of the year with revenue growth of 25% and EPS improvement of $0.23 over the first half of 2014, we have increasing confidence in our outlook for top-line growth and profitable results for 2015.”

Revenue grew 25%, or $3.8 million, to $19.0 million from $15.2 million for the second quarter of 2014 driven by gains in Battery & Energy Product sales. Battery & Energy Products sales were $16.0 million, compared to $12.2 million last year, a 31% increase, primarily due to higher shipments to Government/Defense customers. Communications Systems sales were $3.0 million, flat with the same period last year.

Gross profit grew 39% to $5.9 million from $4.2 million for the second quarter a year ago. As a percentage of revenue, gross profit increased 320 basis points to 30.9% from 27.7% last year, primarily reflecting favorable mix of higher gross margin products and improved overhead absorption on higher sales volumes. Battery & Energy Products’ gross margin was 28.4%, compared to 23.6% last year, an increase of 480 basis points. Communications Systems’ gross margin was 44.2%, compared to 44.0% last year, an increase of 20 basis points.

Operating expenses declined 9%, or $0.5 million, to $5.0 million from $5.5 million a year ago. As a percentage of revenue, operating expenses were 26.6%, compared to 36.4% a year ago.

Higher revenue combined with the leverage of improved gross margin and lower operating expenses resulted in operating income of $0.8 million, compared to an operating loss of $1.3 million for the second quarter of 2014, an improvement of $2.1 million. Operating margin was 4.3%, compared to (8.7)% for the year-earlier period.

Net income from continuing operations was $0.8 million, or $0.05 per share, compared to a net loss of $1.4 million, or $0.08 per share, for the second quarter of 2014.

The information set forth in this Form 8-K and the attached exhibit is being furnished to and not filed with the Securities and Exchange Commission and shall not be deemed to be incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except to the extent specifically provided in any such filing.

Item 9.01 Financial Statements, Pro Forma Financials and Exhibits

(a) Exhibits

99.1 Press Release of Ultralife Corporation dated July 30, 2015.

SIGNATURES

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 CORPORATION

July 30, 2015	By:	/s/ Philip A. Fain
		Chief Financial Officer and Treasurer

Exhibit 99.1

Company Contact: Investor Relations Contact:

Ultralife Corporation LHA

Philip A. Fain Jody Burfening

(315) 332-7100 (212) 838-3777

pfain@ulbi.com jburfening@lhai.com

Ultralife Corporation Reports Second Quarter Results

Second Quarter 2015 Financial Results

Operating expenses declined 9%, or $0.5 million, to $5.0 million from $5.5 million a year ago. As a percentage of revenue, operating expenses were 26.6%, compared to 36.4% a year ago.

Net income from continuing operations was $0.8 million, or $0.05 per share, compared to a net loss of $1.4 million, or $0.08 per share, for the second quarter of 2014.

Share Repurchase Program

During the second quarter Ultralife repurchased 1,398,454 shares under its 3.4 million share repurchase program, which will end April 30, 2016. Since the inception of the share repurchase program on May 1, 2014, the Company has repurchased 1,941,691 shares.

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.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its second 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
		June 28,			December 31,
		2015			2014
Current assets:
Cash and cash equivalents	$	15,932		$	17,866
Trade accounts receivable, net		11,293			11,295
Inventories		24,000			26,086
Prepaid expenses and other current assets		1,412			1,603
Total current assets		52,637			56,850

Property, equipment and improvements, net		9,501			9,812
Goodwill, intangibles and other assets		20,797			20,980
Total assets	$	82,935		$	87,642

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	6,353		$	6,996
Accrued compensation and related benefits		2,388			1,725
Accrued expenses and other current liabilities		1,865			2,490
Total current liabilities		10,606			11,211
Deferred income taxes and other non-current liabilities		4,628			4,518
Total liabilities		15,234			15,729

Shareholders' equity:
Common stock		1,897			1,894
Capital in excess of par value		176,249			175,940
Accumulated deficit		(95,599	)		(96,920	)
Accumulated other comprehensive loss		(401	)		(467	)
Treasury stock		(14,307	)		(8,420	)
Total Ultralife equity		67,839			72,027
Noncontrolling interest		(138	)		(114	)
Total shareholders’ equity		67,701			71,913

Total liabilities and shareholders' equity	$	82,935		$	87,642

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands except per share amounts)
(unaudited)

	Three month periods ended					Six month periods ended
	June 28,		June 29,			June 28,			June 29,
	2015		2014			2015			2014
Revenues:
Battery & energy products	$	15,972	$	12,165		$	32,248		$	26,087
Communication systems		2,983		3,034			5,884			4,397
Total revenues		18,955		15,199		$	38,132		$	30,484

Cost of products sold:
Battery & energy products		11,430		9,289			22,922			19,410
Communication systems		1,666		1,698			3,344			2,527
Total cost of products sold		13,096		10,987			26,266			21,937

Gross profit		5,859		4,212			11,866			8,547

Operating expenses:
Research and development		1,334		1,560			2,693			2,996
Selling, general and administrative		3,708		3,976			7,534			7,971
Total operating expenses		5,042		5,536			10,227			10,967

Operating income (loss)		817		(1,324	)		1,639			(2,420	)

Interest and other (expense) income, net		28		5			(160	)		(58	)
Income (loss) from continuing operations before income taxes		845		(1,319	)		1,479			(2,478	)
Income tax provision		71		57			182			117

Net income (loss) from continuing operations		774		(1,376	)		1,297			(2,595	)
Loss from discontinued operations, net of tax		—		—			—			(61	)

Net income (loss)		774		(1,376	)		1,297			(2,656	)

Net loss attributable to non-controlling interest		14		16			24			10

Net income (loss) attributable to Ultralife	$	788	$	(1,360	)	$	1,321		$	(2,646	)


Net income (loss) per share attributable to Ultralife common shareholders – basic:
Continuing operations	$	.05	$	(.08	)	$	.08		$	(.15	)
Discontinued operations		—		—			—			(.00	)
Total	$	.05	$	(.08	)	$	.08		$	(.15	)

Net income per share attributable to Ultralife common shareholders – diluted:
Continuing operations	$	.05				$	.08
Discontinued operations		—					—
Total	$	.05				$	.08

Weighted average shares outstanding – basic		16,557		17,533			16,945			17,523
Weighted average shares outstanding – diluted		16,597					16,977