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)

October 29, 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. – October 29, 2015 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $1.2 million on revenue of $19.0 million for the quarter ended September 27, 2015. For the third quarter of 2014, the Company reported an operating loss of $0.1 million on revenue of $16.1 million.

 

“Through sustained execution, we delivered another quarter of profitable growth, steadily building on the revenue gain, margin expansion and positive EPS we generated for the first half of the year. On a 19% increase in revenue for the third quarter, we posted a consolidated gross margin of 31.0%, an operating margin of 6.2% and EPS of $0.07 per share. As a result, on a year-to-date basis, we have generated $5.3 million more in operating income on a $10.6 million gain in revenue, clearly demonstrating our business model operating leverage,” said Michael D. Popielec, Ultralife's President and Chief Executive Officer. “With our new products gaining traction and our opportunity set widening, we firmly believe our plans to produce revenue and earnings growth for 2015 are within reach.”

 

Revenue grew 19%, or $3.0 million, to $19.0 million from $16.1 million for the third quarter of 2014. Battery & Energy Products sales increased 18% to $16.4 million compared to $13.9 million last year, reflecting higher shipments to both Government/Defense and commercial customers. Communications Systems sales were $2.7 million compared to $2.1 million for the same period last year, an increase of 23%.

 

Gross profit grew 32% to $5.9 million from $4.5 million for the third quarter a year ago. As a percentage of revenue, gross profit increased 310 basis points to 31.0% from 27.9% last year, primarily reflecting favorable product mix and improved overhead absorption on higher sales volumes. Battery & Energy Products’ gross margin was 29.1% compared to 27.4% last year, an increase of 170 basis points. Communications Systems’ gross margin was 42.4% compared to 31.4% last year, an increase of 1,100 basis points.

 

Operating expenses were $4.7 million compared to $4.5 million for the third quarter of 2014, reflecting higher new product development spending and sales commissions. As a percentage of revenue, operating expenses improved 350 basis points to 24.8% compared to 28.3% a year ago.

 

The combination of increased revenue and improved gross margin drove a $1.2 million gain in operating income. Operating income was $1.2 million compared to an operating loss of $0.1 million for the third quarter of 2014. Operating margin was 6.2% compared to (0.3%) for the year-earlier period.

 

Net income was $1.0 million, or $0.07 per share, compared to a net loss of ($0.3) million, or ($0.02) per share, for the third 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 October 29, 2015.

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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
   
October 29, 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 Third Quarter Results

 

NEWARK, N.Y. – October 29, 2015 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $1.2 million on revenue of $19.0 million for the quarter ended September 27, 2015. For the third quarter of 2014, the Company reported an operating loss of $0.1 million on revenue of $16.1 million.

 

“Through sustained execution, we delivered another quarter of profitable growth, steadily building on the revenue gain, margin expansion and positive EPS we generated for the first half of the year. On a 19% increase in revenue for the third quarter, we posted a consolidated gross margin of 31.0%, an operating margin of 6.2% and EPS of $0.07 per share. As a result, on a year-to-date basis, we have generated $5.3 million more in operating income on a $10.6 million gain in revenue, clearly demonstrating our business model operating leverage,” said Michael D. Popielec, Ultralife's President and Chief Executive Officer. “With our new products gaining traction and our opportunity set widening, we firmly believe our plans to produce revenue and earnings growth for 2015 are within reach.”

 

Third Quarter 2015 Financial Results

 

Revenue grew 19%, or $3.0 million, to $19.0 million from $16.1 million for the third quarter of 2014. Battery & Energy Products sales increased 18% to $16.4 million compared to $13.9 million last year, reflecting higher shipments to both Government/Defense and commercial customers. Communications Systems sales were $2.7 million compared to $2.1 million for the same period last year, an increase of 23%.

 

Gross profit grew 32% to $5.9 million from $4.5 million for the third quarter a year ago. As a percentage of revenue, gross profit increased 310 basis points to 31.0% from 27.9% last year, primarily reflecting favorable product mix and improved overhead absorption on higher sales volumes. Battery & Energy Products’ gross margin was 29.1% compared to 27.4% last year, an increase of 170 basis points. Communications Systems’ gross margin was 42.4% compared to 31.4% last year, an increase of 1,100 basis points.

 

Operating expenses were $4.7 million compared to $4.5 million for the third quarter of 2014, reflecting higher new product development spending and sales commissions. As a percentage of revenue, operating expenses improved 350 basis points to 24.8% compared to 28.3% a year ago.

 

The combination of increased revenue and improved gross margin drove a $1.2 million gain in operating income. Operating income was $1.2 million compared to an operating loss of $0.1 million for the third quarter of 2014. Operating margin was 6.2% compared to (0.3%) for the year-earlier period.

 

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Net income was $1.0 million, or $0.07 per share, compared to a net loss of ($0.3) million, or ($0.02) per share, for the third quarter of 2014.

 

Share Repurchase Program

 

During the third quarter Ultralife repurchased 748,582 shares under its currently authorized 3.4 million share repurchase program, which will expire April 30, 2016. Since the inception of the share repurchase program on May 1, 2014, the Company has repurchased 2,442,191 shares.

 

 About Ultralife Corporation

 

Ultralife Corporation serves its markets with products and services ranging from portable 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 27,   December 31, 
   2015   2014 
Current assets:          
    Cash and cash equivalents  $14,728   $17,866 
    Trade accounts receivable, net   11,242    11,295 
    Inventories, net   23,352    26,086 
    Prepaid expenses and other current assets   2,226    1,603 
          Total current assets   51,548    56,850 
Property, equipment and improvements, net   9,191    9,812 
Goodwill, intangibles and other assets   20,613    20,980 
          Total assets  $81,352   $87,642 
           
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:          
    Accounts payable  $6,766   $6,996 
    Accrued compensation and related benefits   2,398    1,725 
    Accrued expenses and other current liabilities   2,334    2,490 
           Total current liabilities   11,498    11,211 
Deferred income taxes and other non-current liabilities   4,679    4,518 
           Total liabilities   16,177    15,729 
           
           
           
Shareholders' equity:          
    Common stock   1,899    1,894 
    Capital in excess of par value   176,402    175,940 
    Accumulated deficit   (94,553)   (96,920)
    Accumulated other comprehensive loss   (750)   (467)
    Treasury stock   (17,686)   (8,420)
          Total Ultralife equity   65,312    72,027 
Noncontrolling interest   (137)   (114)
          Total shareholders’ equity   65,175    71,913 
           
          Total liabilities and shareholders' equity  $81,352   $87,642 
           
           
           
 
 

 

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands except per share amounts)
(unaudited)
       
    Three month periods ended  Nine month periods ended
   September 27,  September 28,  September 27,  September 28,
   2015  2014  2015  2014
Revenues:                    
   Battery & energy products  $16,390   $13,913   $48,638   $40,000 
   Communication systems   2,654    2,149    8,538    6,546 
      Total revenues   19,044    16,062   $57,176   $46,546 
                     
Cost of products sold:                    
   Battery & energy products   11,616    10,100    34,538    29,510 
   Communication systems   1,528    1,476    4,872    4,003 
      Total cost of products sold   13,144    11,576    39,410    33,513 
                     
     Gross profit   5,900    4,486    17,766    13,033 
                     
Operating expenses:                    
  Research and development   1,224    1,014    3,917    4,010 
  Selling, general and administrative   3,503    3,527    11,037    11,498 
     Total operating expenses   4,727    4,541    14,954    15,508 
                     
Operating income (loss)   1,173    (55)   2,812    (2,475)
                     
Other (expense) income:                    
  Interest income   —      3    2    12 
  Interest and financing expense   (65)   (56)   (197)   (153)
  Miscellaneous   70    (158)   39    (128)
   Income (loss) from continuing operations before income taxes   1,178    (266)   2,656    (2,744)
Income tax provision   130    60    312    177 
                     
Net income (loss) from continuing operations   1,048    (326)   2,344    (2,921)
Loss from discontinued operations, net of tax   —      —      —      (61)
                     
 Net income (loss)   1,048    (326)   2,344    (2,982)
   Net (income) loss attributable to noncontrolling interest   (1)   3    23    13 
                     
Net income (loss) attributable to Ultralife  $1,047   $(323)  $2,367   $(2,969)
                     
   Net income (loss) per share attributable to Ultralife common shareholders – basic:                    
       Continuing operations  $.07   $(.02)  $.14   $(.17)
       Discontinued operations   —      —      —      (.00)
          Total  $.07   $(.02)  $.14   $(.17)
   Net income per share attributable to Ultralife common shareholders – diluted:                    
       Continuing operations  $.07        $.14      
       Discontinued operations   —           —        
          Total  $.07        $.14      
                     
Weighted average shares outstanding – basic   15,633    17,490    16,503    17,510 
Weighted average shares outstanding – diluted   15,740         16,550