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
October 27, 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. – October 27, 2016 -- 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.”

 

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.

 

 

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 October 27, 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: October 27, 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 October 27, 2016.

 

 

 

 

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 Third Quarter Results

 

 

NEWARK, N.Y. – October 27, 2016 -- 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)

 

		September 25,				December 31,
		2016				2015
ASSETS
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