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UNITED STATES | |||
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SECURITIES AND EXCHANGE COMMISSION | |||
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Washington, D.C. 20549 | |||
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FORM 8-K | |||
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CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||
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July 28, 2016 | |||
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(Date of Report) | |||
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ULTRALIFE CORPORATION | |||
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(Exact name of registrant as specified in its charter) | |||
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Delaware |
000-20852 |
16-1387013 | |
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(State of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | |
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2000 Technology Parkway, Newark, New York |
14513 | ||
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(Address of principal executive offices) |
(Zip Code) | ||
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(315) 332-7100 | |||
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(Registrant’s telephone number, including area code) | |||
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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): | |||
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||
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[ ] 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 28, 2016 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $0.5 million on revenue of $20.4 million for the second quarter ended June 26, 2016. For the second quarter of 2015, the Company reported operating income of $0.8 million on revenue of $19.0 million.
“Through solid execution of our business model parameters including close control of spending in a challenging economic environment, we delivered profitability for the seventh consecutive quarter and generated positive cash flow,” said Michael D. Popielec, Ultralife’s President and Chief Executive Officer. “Despite some economic uncertainties weighing on customer’s buying decisions, we still have our sights set on delivering profitable growth for 2016. Our gross margins and liquidity give us the flexibility to continue to invest in new product development in support of our long-term global diversification strategy.”
Revenue was $20.4 million, an increase of $1.4 million, or 7%, compared to $19.0 million for the second quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales. Battery & Energy Products sales were $15.8 million compared to $16.0 million last year, reflecting the contribution of Accutronics sales which offset the revenue reduction resulting from a large 9-Volt and large metering and toll pass battery orders in the second quarter of 2015. Communications Systems sales grew 55% to $4.6 million compared to $3.0 million for the same period last year as a result of shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) Program.
Gross profit was $5.9 million, or 29.0% of revenue, compared to $5.9 million, or 30.9% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 29.6%, compared to 28.4% last year, an increase of 120 basis points reflecting favorable product mix including the contribution of Accutronics. Communications Systems’ gross margin declined to 26.8% compared to 44.2% for the prior year due to sales mix.
Operating expenses were $5.4 million compared to $5.0 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. Operating expenses were 26.5% of revenue compared to 26.6% of revenue for the year earlier period.
Operating income was $0.5 million compared to $0.8 million last year.
Net income was $0.4 million, or $0.03 per share, compared to a net income of $0.8 million, or $0.05 per share, for the second 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
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Number |
____________________Description___________________________ |
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99.1 |
Press Release of Ultralife Corporation dated July 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.
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Date: July 28, 2016 |
ULTRALIFE Corporation | |
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By: |
/s/ Philip A. Fain | |
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Philip A. Fain | ||
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Chief Financial Officer and Treasurer | ||
EXHIBIT INDEX
Exhibit
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Number |
___________________ _Description___________________________ |
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99.1 |
Press Release of Ultralife Corporation dated July 28, 2016 |
Exhibit 99.1
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Company Contact: |
Investor Relations Contact: |
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Ultralife Corporation |
LHA |
| Philip A. Fain | Jody Burfening |
| (315) 210-6110 | (212) 838-3777 |
| pfain@ulbi.com | jburfening@lhai.com |
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Ultralife Corporation Reports Second Quarter Results
NEWARK, N.Y. – July 28, 2016 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $0.5 million on revenue of $20.4 million for the second quarter ended June 26, 2016. For the second quarter of 2015, the Company reported operating income of $0.8 million on revenue of $19.0 million.
“Through solid execution of our business model parameters including close control of spending in a challenging economic environment, we delivered profitability for the seventh consecutive quarter and generated positive cash flow,” said Michael D. Popielec, Ultralife’s President and Chief Executive Officer. “Despite some economic uncertainties weighing on customer’s buying decisions, we still have our sights set on delivering profitable growth for 2016. Our gross margins and liquidity give us the flexibility to continue to invest in new product development in support of our long-term global diversification strategy.”
Second Quarter 2016 Financial Results
Revenue was $20.4 million, an increase of $1.4 million, or 7%, compared to $19.0 million for the second quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales. Battery & Energy Products sales were $15.8 million compared to $16.0 million last year, reflecting the contribution of Accutronics sales which offset the revenue reduction resulting from a large 9-Volt and large metering and toll pass battery orders in the second quarter of 2015. Communications Systems sales grew 55% to $4.6 million compared to $3.0 million for the same period last year as a result of shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) Program.
Gross profit was $5.9 million, or 29.0% of revenue, compared to $5.9 million, or 30.9% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 29.6%, compared to 28.4% last year, an increase of 120 basis points reflecting favorable product mix including the contribution of Accutronics. Communications Systems’ gross margin declined to 26.8% compared to 44.2% for the prior year due to sales mix.
Operating expenses were $5.4 million compared to $5.0 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. Operating expenses were 26.5% of revenue compared to 26.6% of revenue for the year earlier period.
Operating income was $0.5 million compared to $0.8 million last year.
Net income was $0.4 million, or $0.03 per share, compared to a net income of $0.8 million, or $0.05 per share, for the second quarter of 2015.
Share Repurchase Program
The Company’s Share Repurchase Program expired on June 2, 2016. From the inception of the Program on May 1, 2014 through its expiration, the Company repurchased 2,592,095 shares for an aggregate cost of $10.5 million.
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.
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ULTRALIFE CORPORATION AND SUBSIDIARIES | ||||||||
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CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) | ||||||||
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(Unaudited) | ||||||||
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ASSETS | ||||||||
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June 26, |
December 31, |
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2016 |
2015 |
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Current Assets: |
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Cash and Cash Equivalents |
$ | 3,262 | $ | 14,533 | ||||
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Trade Accounts Receivable, Net |
13,735 | 11,430 | ||||||
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Inventories |
26,553 | 23,814 | ||||||
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Prepaid Expenses and Other Current Assets |
2,440 | 2,169 | ||||||
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Total Current Assets |
45,990 | 51,946 | ||||||
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Property, Equipment and Improvements, Net |
8,858 | 9,038 | ||||||
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Goodwill, Intangibles and Other Assets |
28,450 | 20,538 | ||||||
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Total Assets |
$ | 83,298 | $ | 81,522 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
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Current Liabilities: |
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Accounts Payable |
$ | 6,654 | $ | 6,494 | ||||
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Accrued Compensation and Related Benefits |
1,818 | 2,377 | ||||||
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Accrued Expenses and Other Current Liabilities |
2,570 | 1,976 | ||||||
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Current Portion of Debt |
831 | - | ||||||
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Total Current Liabilities |
11,873 | 10,847 | ||||||
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Deferred Income Taxes and Other Non-Current Liabilities |
5,569 | 4,659 | ||||||
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Total Liabilities |
17,442 | 15,506 | ||||||
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Shareholders' Equity: |
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Common Stock |
1,920 | 1,918 | ||||||
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Capital in Excess of Par Value |
177,430 | 177,007 | ||||||
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Accumulated Deficit |
(93,306 | ) | (94,051 | ) | ||||
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Accumulated Other Comprehensive Loss |
(1,608 | ) | (907 | ) | ||||
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Treasury Stock |
(18,415 | ) | (17,808 | ) | ||||
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Total Ultralife Equity |
66,021 | 66,159 | ||||||
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Non-Controlling Interest |
(165 | ) | (143 | ) | ||||
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Total Shareholders’ Equity |
65,856 | 66,016 | ||||||
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Total Liabilities and Shareholders' Equity |
$ | 83,298 | $ | 81,522 | ||||
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ULTRALIFE CORPORATION AND SUBSIDIARIES | ||||||||||||||||
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CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
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(In Thousands Except Per Share Amounts) | ||||||||||||||||
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(Unaudited) | ||||||||||||||||
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Three Month Periods Ended |
Six Month Periods Ended |
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June 26, |
June 28, |
June 26, |
June 28, |
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2016 |
2015 |
2016 |
2015 |
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Revenues: |
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Battery & Energy Products |
$ | 15,759 | $ | 15,972 | $ | 32,199 | $ | 32,248 | ||||||||
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Communication Systems |
4,612 | 2,983 | 9,005 | 5,884 | ||||||||||||
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Total Revenues |
20,371 | 18,955 | $ | 41,204 | $ | 38,132 | ||||||||||
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Cost of Products Sold: |
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Battery & Energy Products |
11,095 | 11,430 | 22,318 | 22,922 | ||||||||||||
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Communication Systems |
3,376 | 1,666 | 6,581 | 3,344 | ||||||||||||
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Total Cost of Products Sold |
14,471 | 13,096 | 28,899 | 26,266 | ||||||||||||
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Gross Profit |
5,900 | 5,859 | 12,305 | 11,866 | ||||||||||||
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Operating Expenses: |
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Research and Development |
1,425 | 1,334 | 3,081 | 2,693 | ||||||||||||
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Selling, General and Administrative |
3,976 | 3,708 | 8,243 | 7,534 | ||||||||||||
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Total Operating Expenses |
5,401 | 5,042 | 11,324 | 10,227 | ||||||||||||
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Operating Income |
499 | 817 | 981 | 1,639 | ||||||||||||
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Other Income (Expense) |
(24 | ) | 28 | (137 | ) | (160 | ) | |||||||||
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Income Before Income Taxes |
475 | 845 | 844 | 1,479 | ||||||||||||
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Income Tax Provision |
33 | 71 | 121 | 182 | ||||||||||||
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Net Income |
442 | 774 | 723 | 1,297 | ||||||||||||
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Net Loss Attributable to Non-Controlling Interest |
4 | 14 | 22 | 24 | ||||||||||||
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Net Income Attributable to Ultralife Corporation |
$ | 446 | $ | 788 | $ | 745 | $ | 1,321 | ||||||||
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Net Income Per Share Attributable to Ultralife Common Shareholders – Basic |
$ | .03 | $ | .05 | $ | .05 | $ | .08 | ||||||||
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Net Income Per Share Attributable to Ultralife Common Shareholders – Diluted |
$ | .03 | $ | .05 | $ | .05 | $ | .08 | ||||||||
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Weighted Average Shares Outstanding – Basic |
15,258 | 16,557 | 15,290 | 16,945 | ||||||||||||
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Weighted Average Shares Outstanding – Diluted |
15,419 | 16,597 | 15,545 | 16,977 | ||||||||||||