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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
May 13, 2003
ULTRALIFE BATTERIES, INC.
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(Exact name of registrant as specified in its charter)
Delaware
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(State or other jurisdiction of incorporation or organization)
0-20852 16-1387013
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(Commission File Number) (I.R.S. Employer Identification No.)
2000 Technology Parkway, Newark, New York 14513
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(Address of principal executive offices) (Zip Code)
(315) 332-7100
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(Registrant's telephone number, including area code)
Item 7. Financial Statements, Pro Forma Financials and Exhibits.
(a) Financial Statements of Business Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Exhibits.
99.1 Press Release dated May 13, 2003
Item 9. Regulation FD Disclosure.
The following information is furnished pursuant to Item 12, Disclosure of
Results of Operations and Financial Condition. It is being furnished under Item
9 of this Form 8-K in accordance with interim guidance issued by the Securities
and Exchange Commission in Release No. 33-8216.
On May 13, 2003, Ultralife Batteries, Inc. (the "Company") issued a press
release setting forth the Company's financial results for the first quarter of
2003. A copy of the Company's press release is attached hereto as Exhibit 99.1.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ULTRALIFE BATTERIES, INC.
Dated: May 13, 2003 By: /s/Robert W. Fishback
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Robert W. Fishback
Vice President - Finance and
Chief Financial Officer
Index to Exhibits
(99) Additional Exhibits
99.1 Press Release dated May 13, 2003
Exhibit 99.1
Company Contact:
Ultralife Batteries, Inc.
Robert W. Fishback
(315) 332-7100
bfishback@ulbi.com
Investor Relations Contact:
Lippert/Heilshorn & Associates, Inc.
Jody Burfening
(212) 838-3777
jks@lhai.com
Media Contact:
Lippert/Heilshorn & Associates, Inc.
Chenoa Taitt
(212) 201-6635
ctaitt@lhai.com
ULTRALIFE BATTERIES, INC. REPORTS FIRST QUARTER EPS OF
$0.02 ON REVENUE OF $15.4 MILLION
- Revenues Increase 74% Over Prior Year; Operating Profit is $0.6 Million -
Newark, NY, May 13, 2003 - Ultralife Batteries, Inc. (NASDAQ: ULBI) today is
reporting operating income of $0.6 million and net income of $0.3 million, or
$0.02 per share, on revenues of $15.4 million for the quarter ended March 29,
2003. These revenues represent a 74% increase over the Company's previous
quarterly record of $8.9 million reported for the same three-month period a year
ago. In addition, the Company's operating cash flow, defined as operating income
plus depreciation and amortization, amounted to $1.3 million.
Revenue growth was fueled by greater demand for the Company's HiRate(R) battery
products, particularly related to orders for UBI5390 batteries from the U.S.
military used in a wide variety of communications and weapons applications. In
addition, shipments of 9-volt batteries reached a quarterly record, and revenues
from battery pack assemblies continued to increase.
Consolidated gross margin for the first quarter of 2003 was $3.2 million, an
improvement of more than $2.2 million over the same quarter a year ago. Higher
primary battery sales volumes, partially offset by ramp-up costs associated with
the rapid growth in production levels, resulted in the gross margin increase.
The Company achieved operating income of $0.6 million compared to an operating
loss of $2.1 million a year earlier. This progress resulted from the improvement
in gross margins, as well as lower research and development costs attributable
to the Company's rechargeable operations.
Net income for the quarter ended March 29, 2003 was $0.3 million, or $0.02 per
share, compared to a net loss of $2.8 million, or $0.23 per share in the same
three-month period last year.
"We are thrilled to have met our key financial goal of turning profitable on
both an operating and a net basis and producing positive operating cash flow
this quarter," said John D. Kavazanjian, president and chief executive officer
of Ultralife Batteries. "This achievement is a major milestone for us as we have
reported an operating profit for the first time in the Company's history. The
sales growth in the quarter was even greater than we had been projecting because
of an acceleration of shipments of UBI5390 batteries to the U.S. military. It
was quite an accomplishment for our manufacturing operations to quickly increase
production in such a short period of time. Going forward, we expect gross
margins to improve further as our manufacturing processes mature and revenues
continue to grow."
Mr. Kavazanjian continued, "Developing a broad, diversified portfolio of
products is an essential part of our growth strategy, and we are continuing to
see increasing demand for products in all areas of our business. We are
optimistic about being able to build on our achievements this quarter as the
marketplace continues to recognize the superior performance and technological
advantages of our products."
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Second Quarter and Full Year Outlook
The Company projects that it will achieve revenues of approximately $18.0
million for the quarter ending June 28, 2003. The Company now estimates that
revenues for the full year of 2003 will exceed $65.0 million, an increase from
the previous guidance of at least $50.0 million. Basic earnings per share are
projected to be in the range of $0.11 to $0.15 for the June 2003 quarter,
compared with a loss of $1.28 per share in the same quarter last year. For the
full year, basic earnings per share are expected to be between $0.35 and $0.45,
compared with a loss of $1.75 per share in 2002. The losses per share for the
June quarter and full year of 2002 include a charge of $1.11 and $1.12 per
share, respectively, related to the impairment of certain fixed assets reflected
in the June quarter.
About Ultralife
Ultralife is a leading developer, manufacturer, and marketer of customized and
standard lithium primary, lithium ion and lithium polymer rechargeable
batteries. Ultralife manufactures high-energy batteries utilizing advanced
lithium technology. Our Primary (non-rechargeable), lithium ion and lithium
polymer rechargeable batteries are used in military, industrial and consumer
portable electronic products. OEM, retail and government customers include
Energizer, Kidde Safety, Philips Medical Systems, Radio Shack and the national
defense agencies of the United States, United Kingdom and Germany.
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: worsening global economic conditions, world events, increased
competitive environment and pricing pressures, disruptions related to
restructuring actions and delays. 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.
Detailed information on Ultralife is available at the Company's web site,
www.ultralifebatteries.com.
Conference Call Information
Investors are invited to listen to a live webcast of the conference call at
10:00 a.m. ET on May 13 at www.ultralifebatteries.com/invest.asp. To listen to
the live call, please go to the web site at least fifteen minutes early to
download and install any necessary audio software. 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 for 90 days. Investors may also listen to a
telephone replay of the conference call by dialing 800-428-6051, Reservation
#291285, starting at 12:00 p.m. ET May 13 until 12:00 p.m. ET May 20.
Ultralife and HiRate are registered trademarks of Ultralife Batteries, Inc.
-MORE-
ULTRALIFE BATTERIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(Unaudited)
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Three Month Period Ended
March 29, March 31,
2003 2002
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Revenues:
Battery sales $15,012 $ 8,827
Technology contracts 416 35
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Total revenues 15,428 8,862
Cost of products sold:
Battery costs 12,055 7,907
Technology contracts 214 33
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Total cost of products sold 12,269 7,940
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Gross margin 3,159 922
Operating expenses:
Research and development 585 1,038
Selling, general, and administrative 1,962 1,981
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Total operating expenses 2,547 3,019
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Operating income (loss) 612 (2,097)
Other income (expense):
Interest, net (91) (98)
Equity loss in UTI -- (501)
Miscellaneous (210) (97)
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Income (loss) before income taxes 311 (2,793)
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Income taxes -- --
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Net income (loss) $ 311 $(2,793)
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Earnings (loss) per share - basic $ 0.02 $ (0.23)
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Earnings (loss) per share - diluted $ 0.02 $ (0.23)
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Average shares outstanding - basic 12,852 12,319
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Average shares outstanding - diluted
12,938 12,319
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ULTRALIFE BATTERIES, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
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March 29, December 31,
ASSETS 2003 2002
(Unaudited)
Current assets:
Cash and investments $ 446 $ 1,374
Trade accounts receivable, net 9,696 6,200
Inventories 5,744 5,813
Prepaid expenses and other
current assets 851 968
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Total current assets 16,737 14,355
Property and equipment 15,897 15,336
Other assets 1,658 1,683
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Total Assets $ 34,292 $ 31,374
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 5,922 $ 4,283
Other current liabilities 3,825 2,861
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Total current liabilities 9,747 7,144
Long-term debt and capital
lease obligations 1,904 1,987
Shareholders' equity:
Common stock, par value
$0.10 per share 1,358 1,358
Capital in excess of
par value 115,279 115,251
Accumulated other
comprehensive loss (957) (1,016)
Accumulated deficit (90,661) (90,972)
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25,019 24,621
Less --Treasury stock, at cost 2,378 2,378
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Total shareholders' equity 22,641 22,243
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Total Liabilities and
Shareholders' Equity $ 34,292 $ 31,374
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-MORE-