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
May 4, 2017
(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 | ||
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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):
☐ 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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
NEWARK, N.Y. – May 4, 2017 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $1.8 million on revenue of $22.0 million for the first quarter ended April 2, 2017. For the first quarter of 2016, the Company reported operating income of $0.5 million on revenue of $20.8 million.
“Our diversified portfolio of commercial and government/defense products contributed across the board to a 5.8% increase in sales and a gross margin of 31.3% for the first quarter. On the strength of these positive results and continued cost discipline, we delivered a 610 basis-point improvement in operating margin to 8.4% and increased EPS more than five-fold to $0.11, for our tenth consecutive quarter of profitability,” said Michael D. Popielec. “Our first quarter performance, strong cash generation and opportunities created by continued investments in market and sales reach expansion and new product development are encouraging indicators for another year of profitable growth in 2017.”
Revenue was $22.0 million, an increase of $1.2 million, or 5.8%, compared to $20.8 million for the first quarter of 2016 reflecting higher medical and government/defense sales. Battery & Energy Products sales increased $1.0 million to $17.5 million, or 6.3%, compared to $16.4 million last year due primarily to higher government/defense, medical, and 9-Volt sales. Communications Systems grew 3.7% to $4.6 million compared to $4.4 million for the same period last year reflecting shipments of power supplies to a large global defense prime contractor which more than offset the year-earlier shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) Program.
Gross profit was $6.9 million, or 31.3% of revenue, compared to $6.4 million, or 30.7% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 28.2%, compared to 31.7% last year, a decrease of 350 basis points, and Communications Systems’ gross margin was 43.0%, compared to 27.0% last year, an increase of 1,600 basis points. For both businesses, the fluctuations in gross margin resulted from variations in product mix.
Operating expenses were $5.0 million compared to $5.9 million last year reflecting discretionary spending reduction actions, acquisition cost synergies and $0.2 million of non-recurring expenses related to last year’s acquisition of Accutronics Ltd. Operating expenses were 22.9% of revenue compared to 28.4% of revenue for the year-earlier period.
Operating income was $1.8 million compared to $0.5 million last year for an operating margin of 8.4% compared to 2.3% last year.
Net income was $1.7 million, or $0.11 per share, compared to net income of $0.3 million, or $0.02 per share, for the first quarter of 2016.
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.
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Exhibit Number |
Description | |
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99.1 |
Press Release of Ultralife Corporation dated May 4, 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: May 4, 2017 |
ULTRALIFE Corporation | |
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By: |
/s/ Philip A. Fain | |
|
Philip A. Fain | ||
|
Chief Financial Officer and Treasurer |
EXHIBIT INDEX
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Exhibit Number |
Description | |
|
99.1 |
Press Release of Ultralife Corporation dated May 4, 2017 |
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. – May 4, 2017 -- Ultralife Corporation (NASDAQ: ULBI) reported operating income of $1.8 million on revenue of $22.0 million for the first quarter ended April 2, 2017. For the first quarter of 2016, the Company reported operating income of $0.5 million on revenue of $20.8 million.
“Our diversified portfolio of commercial and government/defense products contributed across the board to a 5.8% increase in sales and a gross margin of 31.3% for the first quarter. On the strength of these positive results and continued cost discipline, we delivered a 610 basis-point improvement in operating margin to 8.4% and increased EPS more than five-fold to $0.11, for our tenth consecutive quarter of profitability,” said Michael D. Popielec. “Our first quarter performance, strong cash generation and opportunities created by continued investments in market and sales reach expansion and new product development are encouraging indicators for another year of profitable growth in 2017.”
First Quarter 2017 Financial Results
Revenue was $22.0 million, an increase of $1.2 million, or 5.8%, compared to $20.8 million for the first quarter of 2016 reflecting higher medical and government/defense sales. Battery & Energy Products sales increased $1.0 million to $17.5 million, or 6.3%, compared to $16.4 million last year due primarily to higher government/defense, medical, and 9-Volt sales. Communications Systems grew 3.7% to $4.6 million compared to $4.4 million for the same period last year reflecting shipments of power supplies to a large global defense prime contractor which more than offset the year-earlier shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué (“VIPER”) Program.
Gross profit was $6.9 million, or 31.3% of revenue, compared to $6.4 million, or 30.7% of revenue, for the same quarter a year ago. Battery & Energy Products’ gross margin was 28.2%, compared to 31.7% last year, a decrease of 350 basis points, and Communications Systems’ gross margin was 43.0%, compared to 27.0% last year, an increase of 1,600 basis points. For both businesses, the fluctuations in gross margin resulted from variations in product mix.
Operating expenses were $5.0 million compared to $5.9 million last year reflecting discretionary spending reduction actions, acquisition cost synergies and $0.2 million of non-recurring expenses related to last year’s acquisition of Accutronics Ltd. Operating expenses were 22.9% of revenue compared to 28.4% of revenue for the year-earlier period.
Operating income was $1.8 million compared to $0.5 million last year for an operating margin of 8.4% compared to 2.3% last year.
Net income was $1.7 million, or $0.11 per share, compared to net income of $0.3 million, or $0.02 per share, for the first quarter of 2016.
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 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 revenues from key customers, 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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ASSETS |
||||||||
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April 2, |
December 31, |
|||||||
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2017 |
2016 |
|||||||
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Current Assets: |
||||||||
|
Cash and Cash Equivalents |
$ | 13,679 | $ | 10,706 | ||||
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Trade Accounts Receivable, Net |
13,747 | 13,179 | ||||||
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Inventories |
22,729 | 23,456 | ||||||
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Prepaid Expenses and Other Current Assets |
1,995 | 2,079 | ||||||
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Total Current Assets |
52,150 | 49,420 | ||||||
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Property, Equipment and Improvements, Net |
8,071 | 7,999 | ||||||
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Goodwill, Intangibles and Other Assets |
27,361 | 27,325 | ||||||
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Total Assets |
$ | 87,582 | $ | 84,744 | ||||
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LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
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Current Liabilities: |
||||||||
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Accounts Payable |
$ | 7,071 | $ | 7,292 | ||||
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Accrued Compensation and Related Benefits |
1,708 | 1,258 | ||||||
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Accrued Expenses and Other Current Liabilities |
2,627 | 2,778 | ||||||
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Total Current Liabilities |
11,406 | 11,328 | ||||||
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Deferred Income Taxes and Other Non-Current Liabilities |
5,604 | 5,556 | ||||||
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Total Liabilities |
17,010 | 16,884 | ||||||
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Shareholders' Equity: |
||||||||
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Common Stock |
1,951 | 1,932 | ||||||
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Capital in Excess of Par Value |
178,936 | 178,163 | ||||||
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Accumulated Deficit |
(88,887 | ) | (90,542 | ) | ||||
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Accumulated Other Comprehensive Loss |
(2,821 | ) | (3,080 | ) | ||||
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Treasury Stock |
(18,443 | ) | (18,443 | ) | ||||
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Total Ultralife Equity |
70,736 | 68,030 | ||||||
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Non-Controlling Interest |
(164 | ) | (170 | ) | ||||
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Total Shareholders’ Equity |
70,572 | 67,860 | ||||||
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Total Liabilities and Shareholders' Equity |
$ | 87,582 | $ | 84,744 | ||||
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except Per Share Amounts)
(Unaudited)
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Three Month Periods Ended |
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April 2, |
March 27, |
|||||||
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2017 |
2016 |
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Revenues: |
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Battery & Energy Products |
$ | 17,479 | $ | 16,440 | ||||
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Communications Systems |
4,556 | 4,393 | ||||||
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Total Revenues |
22,035 | 20,833 | ||||||
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Cost of Products Sold: |
||||||||
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Battery & Energy Products |
12,549 | 11,223 | ||||||
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Communications Systems |
2,596 | 3,205 | ||||||
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Total Cost of Products Sold |
15,145 | 14,428 | ||||||
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Gross Profit |
6,890 | 6,405 | ||||||
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Operating Expenses: |
||||||||
|
Research and Development |
1,138 | 1,656 | ||||||
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Selling, General and Administrative |
3,911 | 4,267 | ||||||
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Total Operating Expenses |
5,049 | 5,923 | ||||||
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Operating Income |
1,841 | 482 | ||||||
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Other Expense |
(93 | ) | (113 | ) | ||||
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Income before Income Taxes |
1,748 | 369 | ||||||
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Income Tax Provision |
(87 | ) | (88 | ) | ||||
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Net Income |
1,661 | 281 | ||||||
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Net (Income) Loss Attributable to Non-Controlling Interest |
(6 | ) | 18 | |||||
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Net Income Attributable to Ultralife Corporation |
$ | 1,655 | $ | 299 | ||||
| Net Income Per Share Attributable to Ultralife Common Shareholders – Basic | $ | 0.11 | $ | 0.02 | ||||
| Net Income Per Share Attributable to Ultralife Common Shareholders – Diluted | $ | 0.11 | $ | 0.02 | ||||
|
Weighted Average Shares Outstanding – Basic |
15,412 | 15,323 | ||||||
|
Weighted Average Shares Outstanding – Diluted |
15,656 | 15,666 | ||||||