Form 8-K

 

 

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

April 28, 2016

(Date of Report)

 

 

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. – April 28, 2016 - Ultralife Corporation (NASDAQ: ULBI) reported operating income of $0.5 million on revenue of $20.8 million for the first quarter ended March 27, 2016. For the first quarter of 2015, the Company reported operating income of $0.8 million on revenue of $19.2 million. Included in results for the first quarter of 2016 is $0.3 million of non-recurring costs and purchase accounting adjustments related to the acquisition of Accutronics Ltd., which the Company completed on January 13, 2016.

“During the first quarter, we achieved bottom-line profitability for the sixth consecutive quarter while absorbing direct costs and customary accounting adjustments related to the acquisition of Accutronics, and start-up costs associated with the Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) Program. Although our year-over-year revenue comparison was impacted by variability in the timing of order fulfillment, we held to our business model parameters, generating gross margin of 30.7%, continued to invest in new product development and further extended our pipeline for orders from both government/defense and commercial customers,” said Michael D. Popielec. “As a result, we remain well positioned to deliver profitable growth in 2016 now boosted by our acquisition of Accutronics.”

Revenue was $20.8 million, an increase of $1.7 million, or 9%, compared to $19.2 million for the first quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales. Battery & Energy Products sales were $16.4 million compared to $16.3 million last year, reflecting the contribution of $2.5 million of Accutronics sales which offset the revenue from a large 9-Volt and a large charger order in the first quarter of 2015. Communications Systems sales grew 51% to $4.4 million compared to $2.9 million for the same period last year as a result of shipments under the VIPER Program.

Gross profit was $6.4 million, or 30.7% of revenue, compared to $6.0 million, or 31.3% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 31.7%, compared to 29.4% last year, an increase of 230 basis points reflecting favorable product mix. Included in Battery & Energy Products’ gross margin was a negative 55 basis point impact of purchase accounting adjustments related to the acquisition of Accutronics. Communications Systems’ gross margin declined to 27.0% compared to 42.2% for the prior year primarily due to sales mix.

Operating expenses were $5.9 million compared to $5.2 million last year reflecting the addition of Accutronics and increased spending on new product development in response to a higher level of proposal activity, partially offset by tight control over discretionary spending. Included in operating expenses was $0.2 million of non-recurring expenses related to the acquisition of Accutronics. Operating expenses were 28.4% of revenue compared to 27.0% of revenue for the year earlier period.

Operating income was $0.5 million compared to $0.8 million last year. Operating income for the 2016 period includes purchase accounting adjustments and one-time expenses related to the acquisition of Accutronics of $0.3 million equivalent to $0.02 per share. Including these non-recurring adjustments and expenses, net income was $0.3 million, or $0.02 per share, compared to $0.5 million, or $0.03 per share, for the first quarter of 2015.

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 as 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.

 

Exhibit
Number

  

Description

99.1    Press Release of Ultralife Corporation dated April 28, 2016.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: April 28, 2016     ULTRALIFE CORPORATION
  By:  

/s/ Philip A. Fain

    Philip A. Fain
    Chief Financial Officer and Treasurer


EXHIBIT INDEX

 

Exhibit
Number

  

Description

99.1    Press Release of Ultralife Corporation dated April 28, 2016
EX-99.1

Exhibit 99.1

 

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

Ultralife Corporation Reports First Quarter Results

NEWARK, N.Y. – April 28, 2016 — Ultralife Corporation (NASDAQ: ULBI) reported operating income of $0.5 million on revenue of $20.8 million for the first quarter ended March 27, 2016. For the first quarter of 2015, the Company reported operating income of $0.8 million on revenue of $19.2 million. Included in results for the first quarter of 2016 is $0.3 million of non-recurring costs and purchase accounting adjustments related to the acquisition of Accutronics Ltd., which the Company completed on January 13, 2016.

“During the first quarter, we achieved bottom-line profitability for the sixth consecutive quarter while absorbing direct costs and customary accounting adjustments related to the acquisition of Accutronics, and start-up costs associated with the Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) Program. Although our year-over-year revenue comparison was impacted by variability in the timing of order fulfillment, we held to our business model parameters, generating gross margin of 30.7%, continued to invest in new product development and further extended our pipeline for orders from both government/defense and commercial customers,” said Michael D. Popielec. “As a result, we remain well positioned to deliver profitable growth in 2016 now boosted by our acquisition of Accutronics.”

First Quarter 2016 Financial Results

Revenue was $20.8 million, an increase of $1.7 million, or 9%, compared to $19.2 million for the first quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales. Battery & Energy Products sales were $16.4 million compared to $16.3 million last year, reflecting the contribution of $2.5 million of Accutronics sales which offset the revenue from a large 9-Volt and a large charger order in the first quarter of 2015. Communications Systems sales grew 51% to $4.4 million compared to $2.9 million for the same period last year as a result of shipments under the VIPER Program.

Gross profit was $6.4 million, or 30.7% of revenue, compared to $6.0 million, or 31.3% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 31.7%, compared to 29.4% last year, an increase of 230 basis points reflecting favorable product mix. Included in Battery & Energy Products’ gross margin was a negative 55 basis point impact of purchase accounting adjustments related to the acquisition of Accutronics. Communications Systems’ gross margin declined to 27.0% compared to 42.2% for the prior year primarily due to sales mix.


Operating expenses were $5.9 million compared to $5.2 million last year reflecting the addition of Accutronics and increased spending on new product development in response to a higher level of proposal activity, partially offset by tight control over discretionary spending. Included in operating expenses was $0.2 million of non-recurring expenses related to the acquisition of Accutronics. Operating expenses were 28.4% of revenue compared to 27.0% of revenue for the year earlier period.

Operating income was $0.5 million compared to $0.8 million last year. Operating income for the 2016 period includes purchase accounting adjustments and one-time expenses related to the acquisition of Accutronics of $0.3 million equivalent to $0.02 per share. Including these non-recurring adjustments and expenses, net income was $0.3 million, or $0.02 per share, compared to $0.5 million, or $0.03 per share, for the first 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 first 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  
     March 27,
2016
    December 31,
2015
 

Current Assets:

    

Cash and Cash Equivalents

   $ 2,902      $ 14,533   

Trade Accounts Receivable, Net

     15,140        11,430   

Inventories

     26,980        23,814   

Prepaid Expenses and Other Current Assets

     2,603        2,169   
  

 

 

   

 

 

 

Total Current Assets

     47,625        51,946   

Property, Equipment and Improvements, Net

     8,865        9,038   

Goodwill, Intangibles and Other Assets

     29,153        20,538   
  

 

 

   

 

 

 

Total Assets

   $ 85,643      $ 81,522   
  

 

 

   

 

 

 
LIABILITIES AND SHAREHOLDERS’ EQUITY   

Current Liabilities:

    

Accounts Payable

   $ 8,018      $ 6,494   

Accrued Compensation and Related Benefits

     1,928        2,377   

Accrued Expenses and Other Current Liabilities

     2,786        1,976   

Current Portion of Debt

     1,156        —     
  

 

 

   

 

 

 

Total Current Liabilities

     13,888        10,847   

Deferred Income Taxes and Other Non-Current Liabilities

     5,541        4,659   
  

 

 

   

 

 

 

Total Liabilities

     19,429        15,506   
  

 

 

   

 

 

 

Shareholders’ Equity:

    

Common Stock

     1,919        1,918   

Capital in Excess of Par Value

     177,202        177,007   

Accumulated Deficit

     (93,752     (94,051

Accumulated Other Comprehensive Loss

     (1,186     (907

Treasury Stock

     (17,808     (17,808
  

 

 

   

 

 

 

Total Ultralife Equity

     66,375        66,159   

Non-Controlling Interest

     (161     (143
  

 

 

   

 

 

 

Total Shareholders’ Equity

     66,214        66,016   
  

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 85,643      $ 81,522   
  

 

 

   

 

 

 


ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(In Thousands Except Per Share Amounts)

(Unaudited)

 

     Three Month Periods Ended  
     March 27,
2016
    March 29,
2015
 

Revenues:

    

Battery & Energy Products

   $ 16,440      $ 16,276   

Communications Systems

     4,393        2,901   
  

 

 

   

 

 

 

Total Revenues

     20,833        19,177   
  

 

 

   

 

 

 

Cost of Products Sold:

    

Battery & Energy Products

     11,223        11,492   

Communications Systems

     3,205        1,678   
  

 

 

   

 

 

 

Total Cost of Products Sold

     14,428        13,170   
  

 

 

   

 

 

 

Gross Profit

     6,405        6,007   
  

 

 

   

 

 

 

Operating Expenses:

    

Research and Development

     1,656        1,359   

Selling, General and Administrative

     4,267        3,826   
  

 

 

   

 

 

 

Total Operating Expenses

     5,923        5,185   
  

 

 

   

 

 

 

Operating Income

     482        822   

Other Expense

     (113     (188
  

 

 

   

 

 

 

Income before Income Taxes

     369        634   

Income Tax Provision

     (88     (111
  

 

 

   

 

 

 

Net Income

     281        523   

Net Loss Attributable to Non-Controlling Interest

     18        10   
  

 

 

   

 

 

 

Net Income Attributable to Ultralife Corporation

   $ 299      $ 533   
  

 

 

   

 

 

 

Net Income Per Share Attributable to Ultralife Common Shareholders – Basic

  

   $ 0.02      $ 0.03   
  

 

 

   

 

 

 

Net Income Per Share Attributable to Ultralife Common Shareholders – Diluted

  

 
   $ 0.02      $ 0.03   
  

 

 

   

 

 

 

Weighted Average Shares Outstanding – Basic

     15,323        17,346   
  

 

 

   

 

 

 

Weighted Average Shares Outstanding – Diluted

     15,666        17,354