Alpha Technologies Group Reports Fiscal 2002 Second Quarter Results.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--June 12, 2002 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. ) today reported higher revenue and 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 second quarter of fiscal 2002 compared to the year's first quarter. For the three months ended April 28, 2002, net income from continuing operations before an extraordinary item was $16,000, or $0.00 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. This compares to a net loss from continuing operations for the first quarter of fiscal 2002 of $314,000, or $0.04 per share, and to net income from continuing operations for the second quarter of fiscal 2001 of $708,000, or $0.09 per diluted share. After a one-time charge of $364,000 (net of tax) associated with the 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). of the Company's bank debt, the net loss for this year's second quarter was $348,000, or $0.05 per share. This extraordinary loss was related to the amendment and restructuring of the Company's loan agreement with its bank group announced on March 20, 2002. Revenue for the second quarter of fiscal 2002 increased 10.7% to $13,933,000 from $12,587,000 for the first quarter. Revenue for the second quarter of fiscal 2001 was $19,637,000. "In addition to the first sequential increase in sales that we've experienced for a number of quarters, Alpha's second quarter performance benefited from the sharp expense cuts implemented during the past year and our continuing focus on reducing costs wherever possible. New order bookings have stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. over the past few months. While business remains a lot slower than we'd like it to be, we believe that Alpha has turned the corner and is on the path toward gradual recovery. However, any significant growth in our profitability is dependent on increasing revenue," Butler said. For the six months ended April 28, 2002, the net loss from continuing operations before the extraordinary item was $298,000, or $0.04 per share. This compares to net income from continuing operations of $1,858,000, or $0.27 per diluted share, for the first half of fiscal 2001. Revenue was $26,520,000 for this year's first half compared to $35,798,000 for the same period a year earlier. 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 $2,702,000 for the first half of fiscal 2002 compared to $6,222,000 for the first half of fiscal 2001. The Company repaid $2,250,000 of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. during the second quarter of fiscal 2002 and ended the quarter with approximately $1,400,000 of cash and working capital of approximately $4,928,000. Alpha is now in full compliance with the covenants contained in the loan documents. However, the Company is required to make a $5 million principal payment under its amended credit agreement by June 28, 2002. The Company plans to engage in a sale and leaseback sale and leaseback The sale of a fixed asset that is then leased by the former owner from the new owner. A sale and leaseback permits a firm to withdraw its equity in an asset without giving up use of the asset. Also called leaseback. transaction for its Pelham Noun 1. Pelham - a bit with a bar mouthpiece that is designed to combine a curb and snaffle bit - piece of metal held in horse's mouth by reins and used to control the horse while riding; "the horse was not accustomed to a bit" , NH facility to raise the funds to make the payment. The Company has received two offers for such a transaction. The first offer is for $5 million and is subject to financing and the signing of a definitive purchase and sale agreement and the execution of a lease. The second offer is for $4.25 million and is not subject to financing but is subject to the signing of a definitive purchase and sale agreement and the execution of a lease. Neither offer will be able to close by June 28, 2002 and the lower offer will not yield sufficient funds to make the full payment. The Company has asked its lenders for an extension of time to make the payment and the lenders' agreement to accept less than $5 million, but there is no assurance this request will be agreed to. Conference Call Alpha has scheduled a conference call today at 11:00 AM EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . A simultaneous WebCast may be accessed at http://www.CompanyBoardroom.com or http://www.Alphatgi.com/pr.html. A replay will be available at 1:00 PM EDT 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 #20603706 after 1:00 PM EDT. About Alpha Technologies Group Alpha Technologies Group, Inc. is engaged in the manufacture, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. and sale of thermal management products and aluminum extrusions. The Company is one of the leading manufacturers of thermal management products in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Thermal management products, principally heat sinks 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. , 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 automotive, telecommunication telecommunication Communication between parties at a distance from one another. Modern telecommunication systems—capable of transmitting telephone, fax, data, radio, or television signals—can transmit large volumes of information over long distances. , industrial controls, transportation, power supply, factory automation, consumer electronics, aerospace, defense, microprocessor, and computer industries. The Company also sells aluminum extrusions to various industries including the construction, sporting goods Noun 1. sporting goods - sports equipment sold as a commodity commodity, trade good, good - articles of commerce sports equipment - equipment needed to participate in a particular sport and other leisure activity markets. 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, compliance with covenants in the company's loan documents, ability to meet principal payments under these loan documents, 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.
ALPHA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)(In Thousands, Except Per Share Data)
Quarter Ended Six Months Ended
Apr. 28, Apr. 29, Apr. 28, Apr. 29,
2002 2001 2002 2001
Sales $13,933 $19,637 $26,520 $35,798
Cost of sales 11,545 14,946 22,351 26,538
Gross profit 2,388 4,691 4,169 9,260
Operating expenses:
Research and development 131 345 243 574
Selling, general and
administrative 1,597 2,496 3,138 4,812
Total operating expenses 1,728 2,841 3,381 5,386
Operating Income 660 1,850 788 3,874
Interest Expense, net (640) (802) (1,267) (943)
Other Income (Expense), Net -- 1 -- (15)
(Loss) Income Before Income Tax 20 1,049 (479) 2,916
(Benefit) Provision for Income Taxes 4 341 (181) 1,058
(Loss) Income from Continuing
Operations before extraordinary
items 16 708 (298) 1,858
Loss from Discontinued Operation,
Net of Tax -- -- -- (59)
Gain on Sale of Discontinued
Operation, Net of Tax -- -- -- 207
Extraordinary Loss, Early
Extinguishment of Debt,
Net of Tax (364) -- (364) (400)
Net (Loss) Income $ (348) $ 708 $ (662) $ 1,606
Earnings per Common Share:
Basic
(Loss) Income from
Continuing Operations $ 0.00 $ 0.10 $ (0.04) $ 0.27
Loss from Discontinued
Operation -- -- -- (0.01)
Gain on Sale of
Discontinued Operation -- -- -- 0.03
Extraordinary Loss, Early
Extinguishment of Debt,
Net of Tax (0.05) -- (0.05) (0.06)
Net (Loss) Income $ (0.05) $ 0.10 $ (0.09) $ 0.23
Diluted
(Loss) Income from
Continuing Operations $ 0.00 $ 0.09 $ (0.04) $ 0.25
Loss from Discontinued
Operation -- -- -- (0.01)
Gain on Sale of Discontinued
Operation -- -- -- 0.03
Extraordinary Loss, Early
Extinguishment of Debt,
Net of Tax (0.05) -- (0.05) (0.05)
Net (Loss) Income $ (0.05) $ 0.09 $ (0.09) $ 0.21
Shares Used in Computing
Net Income per Share
Basic 7,110 7,078 7,109 6,954
Diluted 7,147 7,539 7,201 7,483
SELECTED BALANCE SHEET DATA
($ in thousands)(April 2002 unaudited) Apr. 28, Oct. 28,
2002 2001
Cash $ 1,395 $ 2,701
Working capital 4,928 (18,117)
Debt, including current maturities 31,150 32,600
Total assets 74,878 77,451
Stockholders' equity $36,474 $36,870
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