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
February 9, 2017
(Date of Report)
ULTRALIFE CORPORATION
(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) | ||
(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):
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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. – February 9, 2017 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $1.6 million on revenue of $21.6 million for the fourth quarter ended December 31, 2016 compared to operating income of $.5 million on revenue of $19.3 million for the fourth quarter of 2015. For total year 2016, Ultralife produced operating income of $3.8 million on revenue of $82.5 million compared to operating income of $3.3 million on revenue of $76.4 million for 2015.
“Strong operating leverage on 12% year-over-year revenue growth for the fourth quarter produced EPS of $0.11, our highest quarterly result this year and a more than three-fold increase over last year. Revenue growth for the quarter reflects gains from our Accutronics acquisition and Communications Systems business even though we experienced lower U.S. government/defense battery sales. For the year, we achieved our stated goal of generating profitable growth, posting 13% operating income growth on an 8% revenue increase,” said Michael D. Popielec, President and Chief Executive Officer. “As we look ahead to 2017, an improving backlog and disciplined execution of our business model while continuing to invest in market and sales reach expansion and new product development, positions us well to further diversify beyond our core U.S. government/defense business and achieve another year of profitable growth.”
Revenue was $21.6 million, an increase of $2.4 million, or 12.3%, compared to $19.3 million for the fourth quarter of 2015 reflecting higher medical sales, the addition of Accutronics and higher Communications Systems sales partially offset by lower government/defense Battery & Energy sales. Battery & Energy Products sales increased $1.0 million to $17.6 million, or 5.9%, compared to $16.6 million last year due primarily to higher medical sales and the contribution of Accutronics, partially offset by lower government/defense and 9-Volt sales. Communications Systems sales grew 53.4% to $4.0 million compared to $2.6 million for the same period last year reflecting shipments of Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) units to fulfill an additional order received for the fourth quarter.
Gross profit was $6.8 million, or 31.5% of revenue, compared to $5.6 million, or 28.8% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 29.4%, compared to 27.6% last year, an increase of 180 basis points reflecting higher volume and favorable product mix including the contribution of Accutronics. Communications Systems’ gross margin was 40.6%, compared to 36.4% last year, an increase of 420 basis points primarily due to sales mix.
Operating expenses were $5.2 million compared to $5.0 million last year reflecting the addition of Accutronics, partially offset by the 2015 write down of a Communications Systems trademark and continued tight control over discretionary spending. Operating expenses were 23.9% of revenue compared to 26.1% of revenue for the year earlier period.
Operating income was $1.6 million compared to $.5 million last year for an operating margin of 7.6% compared to 2.7% last year.
Net income was $1.7 million, or $0.11 per share, compared to net income of $0.5 million, or $0.03 per share, for the fourth 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 |
| 99.1 | Press Release of Ultralife Corporation dated February 9, 2017. |
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: February 9, 2017 |
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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 |
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EXHIBIT INDEX
| Exhibit | |
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Number |
Description |
| 99.1 | Press Release of Ultralife Corporation dated February 9, 2017 |
Exhibit 99.1
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Company Contact: |
Investor Relations Contact: |
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Ultralife Corporation |
LHA |
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Philip A. Fain |
Jody Burfening |
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(315) 210-6110 |
(212) 838-3777 |
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pfain@ulbi.com |
jburfening@lhai.com |
Ultralife Corporation Reports Fourth Quarter Results
NEWARK, N.Y. – February 9, 2017 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $1.6 million on revenue of $21.6 million for the fourth quarter ended December 31, 2016 compared to operating income of $.5 million on revenue of $19.3 million for the fourth quarter of 2015. For total year 2016, Ultralife produced operating income of $3.8 million on revenue of $82.5 million compared to operating income of $3.3 million on revenue of $76.4 million for 2015.
“Strong operating leverage on 12% year-over-year revenue growth for the fourth quarter produced EPS of $0.11, our highest quarterly result this year and a more than three-fold increase over last year. Revenue growth for the quarter reflects gains from our Accutronics acquisition and Communications Systems business even though we experienced lower U.S. government/defense battery sales. For the year, we achieved our stated goal of generating profitable growth, posting 13% operating income growth on an 8% revenue increase,” said Michael D. Popielec, President and Chief Executive Officer. “As we look ahead to 2017, an improving backlog and disciplined execution of our business model while continuing to invest in market and sales reach expansion and new product development, positions us well to further diversify beyond our core U.S. government/defense business and achieve another year of profitable growth.”
Fourth Quarter 2016 Financial Results
Revenue was $21.6 million, an increase of $2.4 million, or 12.3%, compared to $19.3 million for the fourth quarter of 2015 reflecting higher medical sales, the addition of Accutronics and higher Communications Systems sales partially offset by lower government/defense Battery & Energy sales. Battery & Energy Products sales increased $1.0 million to $17.6 million, or 5.9%, compared to $16.6 million last year due primarily to higher medical sales and the contribution of Accutronics, partially offset by lower government/defense and 9-Volt sales. Communications Systems sales grew 53.4% to $4.0 million compared to $2.6 million for the same period last year reflecting shipments of Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) units to fulfill an additional order received for the fourth quarter.
Gross profit was $6.8 million, or 31.5% of revenue, compared to $5.6 million, or 28.8% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 29.4%, compared to 27.6% last year, an increase of 180 basis points reflecting higher volume and favorable product mix including the contribution of Accutronics. Communications Systems’ gross margin was 40.6%, compared to 36.4% last year, an increase of 420 basis points primarily due to sales mix.
Operating expenses were $5.2 million compared to $5.0 million last year reflecting the addition of Accutronics, partially offset by the 2015 write down of a Communications Systems trademark and continued tight control over discretionary spending. Operating expenses were 23.9% of revenue compared to 26.1% of revenue for the year earlier period.
Operating income was $1.6 million compared to $.5 million last year for an operating margin of 7.6% compared to 2.7% last year.
Net income was $1.7 million, or $0.11 per share, compared to net income of $0.5 million, or $0.03 per share, for the fourth 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 fourth 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)
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December 31, |
December 31, |
|||||||
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2016 |
2015 |
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| ASSETS | ||||||||
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Current Assets: |
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Cash |
$ | 10,706 | $ | 14,533 | ||||
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Trade Accounts Receivable, Net |
13,179 | 11,430 | ||||||
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Inventories |
23,456 | 23,814 | ||||||
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Prepaid Expenses and Other Current Assets |
2,173 | 2,169 | ||||||
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Total Current Assets |
49,514 | 51,946 | ||||||
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Property, Equipment and Improvements, Net |
7,999 | 9,038 | ||||||
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Goodwill, Intangibles and Other Assets |
27,231 | 20,538 | ||||||
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Total Assets |
$ | 84,744 | $ | 81,522 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current Liabilities: | ||||||||
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Accounts Payable |
$ | 7,292 | $ | 6,494 | ||||
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Accrued Compensation and Related Benefits |
1,258 | 2,377 | ||||||
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Accrued Expenses and Other Current Liabilities |
2,778 | 1,976 | ||||||
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Current Portion of Debt |
- | - | ||||||
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Total Current Liabilities |
11,328 | 10,847 | ||||||
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Deferred Income Taxes and Other Non-Current Liabilities |
5,556 | 4,659 | ||||||
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Total Liabilities |
16,884 | 15,506 | ||||||
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Shareholders' Equity: |
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Common Stock |
1,932 | 1,918 | ||||||
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Capital in Excess of Par Value |
178,163 | 177,007 | ||||||
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Accumulated Deficit |
(90,542 | ) | (94,051 | ) | ||||
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Accumulated Other Comprehensive Loss |
(3,080 | ) | (907 | ) | ||||
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Treasury Stock |
(18,443 | ) | (17,808 | ) | ||||
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Total Ultralife Equity |
68,030 | 66,159 | ||||||
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Non-Controlling Interest |
(170 | ) | (143 | ) | ||||
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Total Shareholders’ Equity |
67,860 | 66,016 | ||||||
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Total Liabilities and Shareholders' Equity |
$ | 84,744 | $ | 81,522 | ||||
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
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Three Month Periods Ended |
Year Ended |
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December 31, |
December 31, |
December 31, |
December 31, |
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2016 |
2015 |
2016 |
2015 |
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Revenues: |
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Battery & Energy Products |
$ | 17,611 | $ | 16,634 | $ | 64,753 | $ | 65,272 | ||||||||
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Communication Systems |
4,014 | 2,617 | 17,707 | 11,155 | ||||||||||||
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Total Revenues |
21,625 | 19,251 | 82,460 | 76,427 | ||||||||||||
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Cost of Products Sold: |
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Battery & Energy Products |
12,436 | 12,036 | 45,173 | 46,574 | ||||||||||||
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Communication Systems |
2,384 | 1,665 | 12,179 | 6,537 | ||||||||||||
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Total Cost of Products Sold |
14,820 | 13,701 | 57,352 | 53,111 | ||||||||||||
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Gross Profit |
6,805 | 5,550 | 25,108 | 23,316 | ||||||||||||
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Operating Expenses: |
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Research and Development |
1,508 | 1,686 | 5,946 | 5,603 | ||||||||||||
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Selling, General and Administrative |
3,653 | 3,196 | 15,399 | 14,233 | ||||||||||||
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Intangible Asset Impairment |
- | 150 | - | 150 | ||||||||||||
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Total Operating Expenses |
5,161 | 5,032 | 21,345 | 19,986 | ||||||||||||
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Operating Income |
1,644 | 518 | 3,763 | 3,330 | ||||||||||||
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Other Expense |
(16 | ) | (24 | ) | (183 | ) | (180 | ) | ||||||||
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Income Before Income Taxes |
1,628 | 494 | 3,580 | 3,150 | ||||||||||||
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Income Tax Provision (Benefit) |
(115 | ) | (2 | ) | 98 | 310 | ||||||||||
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Net Income |
1,743 | 496 | 3,482 | 2,840 | ||||||||||||
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Net Loss Attributable to Non-Controlling Interest |
2 | 6 | 27 | 29 | ||||||||||||
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Net Income Attributable to Ultralife Corporation |
$ | 1,745 | $ | 502 | $ | 3,509 | $ | 2,869 | ||||||||
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Other Comprehensive Income: |
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Foreign Currency Translation Adjustments |
(858 | ) | (157 | ) | (2,173 | ) | (440 | ) | ||||||||
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Comprehensive Income Attributable to Ultralife |
$ | 887 | $ | 345 | $ | 1,336 | $ | 2,429 | ||||||||
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Net Income Per Share Attributable to Ultralife Common Shareholders – Basic |
$ | .11 | $ | .03 | $ | .23 | $ | .18 | ||||||||
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Net Income Per Share Attributable to Ultralife Common Shareholders – Diluted |
$ | .11 | $ | .03 | $ | .23 | $ | .17 | ||||||||
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Weighted Average Shares Outstanding – Basic |
15,259 | 15,271 | 15,261 | 16,182 | ||||||||||||
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Weighted Average Shares Outstanding – Diluted |
15,360 | 15,757 | 15,405 | 16,458 | ||||||||||||