Alpha Technologies Group Reports Fiscal 2001 Third Quarter and Nine Month Results.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Sept. 4, 2001 Alpha Technologies Group, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ATGI ATGI Alpha Technologies Group, Inc. ATGi Active Technologies Group, Inc. ) announced today that net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the first nine months of fiscal 2001 ended July 29, 2001, was $1,432,000, or $0.19 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, on revenue of $52,453,000, including goodwill amortization and other non-recurring items and reflecting a 36% effective tax rate. This compares to net income from continuing operations for the same period of fiscal 2000 of $5,459,000, or $0.75 per diluted share, reflecting a 1% effective tax rate. The Company utilized the benefits of prior year tax loss carryforwards tax loss carryforward See carryforward. in fiscal 2000. For the three months ended July 29, 2001, the net loss from continuing operations was $426,000, or $0.06 per share, on revenue of $16,655,000, including restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other non-recurring costs of $222,000 (before taxes). The net loss includes a tax benefit of 36%. This compares to net income from continuing operations of $2,399,000, or $0.32 per diluted share, on revenue of $16,244,000, reflecting a 2% effective tax rate. Cash flow, as measured by earnings from continuing operations before interest, taxes, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ), was $1,416,000 for this year's third quarter and $7,466,000 for this year's first nine months. This compares to EBITDA of $3,237,000 and $8,042,000 for the third quarter and first nine months of fiscal 2000 respectively. This year's third quarter and nine months included the results of National Northeast (NNE NNE abbr. north-northeast Noun 1. NNE - the compass point that is midway between north and northeast nor'-nor'-east, north northeast ) since its acquisition on January 9, 2001. NNE is engaged in the aluminum heat sink A material that absorbs heat. Typically made of aluminum, heat sinks are widely used in amplifiers and other electronic devices that build up heat. Small heat sinks are the most economical method for cooling microprocessors and other chips. and extrusion business in Pelham, New Hampshire Pelham is a town in Hillsborough County, New Hampshire, United States. The population was 10,914 at the 2000 census. The estimated population in 2005 was 12,485.[1] History . Chairman and Chief Executive Officer Lawrence Butler said, "The continuing global slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the computer and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industries negatively affected our results for the third quarter. We have made further progress on cutting costs from the business. In addition to the reductions in headcount and other steps associated with the integration of NNE that we implemented in the second quarter, during the third quarter we began to transition our corporate accounting and administration functions from Houston to our other facilities." Butler said that in connection with the closure of the Company's Houston office and the consolidation of accounting and administrative functions, Jim Polakiewicz has been named Chief Financial Officer of Alpha Technologies. Polakiewicz joined the Company in January 1994 as Controller of its Wakefield subsidiary and is currently Vice President, Finance of Wakefield. Polakiewicz succeeds Johnny Blanchard Johnny Blanchard (born February 26, 1933, Minneapolis, Minnesota), is a former professional baseball player who played in the Major Leagues primarily as an outfielder and catcher from 1955 and 1959-1965. , who will serve as a consultant to the Company and will assist in the transition. "We have created an increasingly efficient operating company operating company A business that engages in transactions with outsiders. , enhanced our sales and marketing capabilities, and assembled an experienced management team. The Company continues to generate substantial cash flow that allowed us to reduce debt by more than $5 million since the initial funding of our new credit facility in January 2001. We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about Alpha Technologies' longer term prospects once conditions in our primary markets improve," Butler concluded. About Alpha Technologies Group Alpha Technologies Group, Inc. designs, manufactures and sells thermal management products, principally fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: aluminum extrusions (heat sinks) that dissipate dis·si·pate v. dis·si·pat·ed, dis·si·pat·ing, dis·si·pates v.tr. 1. To drive away; disperse. 2. unwanted heat generated by electronic components. The Company's thermal management products serve the microprocessor, computer, automotive, telecommunications, industrial controls, transportation, power supply, factory automation, consumer electronics, and aerospace and defense industries. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. , and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Conference Call Alpha has scheduled a conference call at 11:00 AM ET. A simultaneous WebCast may be accessed at www.StreetFusion.com or www.Alphatgi.com. A replay will be available immediately following the WebCast at these same Internet addresses There are two kinds of addresses that are widely used on the Internet. One is a person's e-mail address, and the other is the address of a Web site, which is known as a URL. Following is an explanation of Internet e-mail addresses only. For more on URLs, see URL and Internet domain name. . For a telephone replay, dial (800) 633-8284, reservation No. 19558362 beginning at approximately 1:00 PM ET.
ALPHA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(In Thousands Except Per Share Data)(Unaudited)
Three Months Ended Nine Months Ended
July 29, July 30, July 29, July 30,
2001 2000 2001 2000
Sales $ 16,655 $ 16,244 $ 52,453 $ 43,486
Cost of Sales 14,120 11,167 40,658 30,683
Gross profit 2,535 5,077 11,795 12,803
Operating Expenses:
Research and development 217 212 791 637
Selling, general and
administrative 2,128 2,231 6,940 6,250
Restructuring & other
non-recurring 222 -- 222 --
Total operating expenses 2,567 2,443 7,953 6,887
Income (Loss) from Continuing
Operations (32) 2,634 3,842 5,916
Other Income (Expense), Net 90 (27) 75 149
Interest Income (Expense), Net (731) (158) (1,674) (556)
Operating Income (Loss)
Before Income Taxes (673) 2,449 2,243 5,509
Provision (Benefit) for
Income Taxes (247) 50 811 50
Income (Loss) from
Continuing Operations $ (426) $ 2,399 $ 1,432 $ 5,459
Income from Operations Sold,
Net of Income Tax -- 227 (59) 943
Gain from Sale of Operation,
Net of Income Tax -- 6,478 207 6,478
Extraordinary Loss, Early
Extinguishment of Debt,
Net of Tax -- -- (400) --
Net Income (Loss) $ (426) $ 9,104 $ 1,180 $ 12,880
Basic Earnings (Loss) per
Common Share:
Income (loss) before
discontinued operations $ (0.06) $ 0.36 $ 0.20 $ 0.81
Net income (loss) $ (0.06) $ 1.36 $ 0.17 $ 1.92
Diluted Earnings (Loss) per
Common Share:
Income (loss) before
discontinued operations $ (0.06) $ 0.32 $ 0.19 $ 0.75
Net income (loss) $ (0.06) $ 1.22 $ 0.16 $ 1.76
SHARES USED IN COMPUTING NET INCOME
PER SHARE -- BASIC 7,083 6,692 7,006 6,700
SHARES USED IN COMPUTING NET INCOME
PER SHARE -- DILUTED 7,469 7,470 7,497 7,320
PROFORMA ADJUSTMENTS
GOODWILL AND NONCOMPETE
AMORTIZATION, net of tax(1) $ 270 $ 35 $ 616 $ 106
NONRECURRING OTHER INCOME
(EXPENSE), net of tax 84 17 94 (95)
PROVISION FOR INCOME TAX(2) -- (837) -- (1,944)
PROFORMA NET INCOME (LOSS)
FROM CONTINUING OPERATIONS $ (72) $ 1,614 $ 2,142 $ 3,526
PROFORMA DILUTED EARNINGS (LOSS)
PER COMMON SHARE FROM
CONTINUING OPERATIONS $ (0.01) $ 0.22 $ 0.29 $ 0.48
Footnotes:
(1) Acquisition related goodwill and noncompete amortization
(2) Proforma adjustment to make the 2001 and 2000 earnings
comparable, if the Company had been subject to income tax on
both years' earnings. Because the Company was able to utilize
the benefit of prior year tax loss carry forwards no tax
provision was recorded in the first half of 2000.
SELECTED BALANCE SHEET DATA
($ in thousands)(July 2001 unaudited) Jul. 29, Oct. 29,
2001 2000
Cash $ 2,040 $ 12,364
Working capital 9,998 22,646
Debt-current maturities 6,500 1,080
Long term debt 27,700 2,200
Total assets 78,155 45,605
Stockholders' equity 37,402 34,515
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