Alpha Technologies Group Reports Fourth Quarter and Fiscal 2003 Results.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Jan. 8, 2004 Alpha Technologies Group, Inc. (Nasdaq:ATGI ATGI Alpha Technologies Group, Inc. ATGi Active Technologies Group, Inc. ) announced today that revenue for the fiscal year ended October 26, 2003 was $46.8 million. This compares to revenue of $55.6 million for the fiscal year ended October 27, 2002. The net loss for fiscal 2003, before charges totaling $13.3 million for the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of goodwill and other intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. under Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 142, was $2.3 million, or $0.32 per share. Including these pre-tax, non-recurring items, the net loss for fiscal 2003 was $15.6 million, or $2.19 per share. For fiscal 2002, the net loss before a $15.6 million goodwill impairment charge, a $2.1 million loss on the sale of land and building, and a $561,000 loss associated with debt modifications, was $514,000, or $0.07 per share. Including these items, the net loss for fiscal 2002 was $11.5 million, or $1.62 per share. Total 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. declined to $19.2 million at October 26, 2003 from $21.7 million at October 27, 2002. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Larry Butler
1. said, "With the decline in revenue in fiscal 2003, we focused on aggressively managing our costs and using the positive cash flow we generated to reduce our debt as quickly as possible. These efforts will continue. While last year was disappointing, the recent signs of an economic recovery are encouraging. We currently anticipate improved results in fiscal 2004." Non-GAAP Financial Measures Cash flow for fiscal 2003, as measured by earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (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 approximately $2.2 million. This compares to EBITDA of approximately $5.6 million for fiscal 2002. The following table reconciles GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to non-GAAP financial measures:
Reconciliation From GAAP to Non-GAAP Financial Measures
(In Thousands)
Twelve Months Ended
Oct. 26, Oct. 27,
2003 2002
Net Loss $(15,598) $(11,488)
Add (deduct):
Impairment of goodwill 12,980 15,602
Impairment of other intangible assets 323 --
Loss on sale of land and building -- 2,097
Depreciation and amortization 3,281 3,775
Interest expense 2,042 2,510
Costs associated with debt modifications -- 561
Other 45 219
Credit for income taxes (883) (7,634)
EBITDA $2,190 $5,642
Conference Call Alpha has scheduled a conference call today at 11:00 AM ET. A simultaneous WebCast may be accessed at www.ALPHAtgi.com/pr.html. A replay will be available after 1:00 PM ET at this same Internet address 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 #21177491, after 1:00 PM ET. About Alpha Technologies Group Alpha Technologies Group, Inc. (www.ALPHAtgi.com) is engaged in the manufacture, fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. , and sale of thermal management and non-thermal 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: 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 non-thermal fabricated products and 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 may contain 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 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 those 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or which may take place after the date of this release.
ALPHA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Shares and Per Share Data) (Unaudited)
Three Months Ended Twelve Months Ended
Oct. 26, Oct. 27, Oct. 26, Oct. 27,
2003 2002 2003 2002
SALES $ 11,513 $ 13,796 $ 46,801 $ 55,574
COST OF SALES 10,290 12,224 41,715 47,343
Gross profit 1,223 1,572 5,086 8,231
OPERATING EXPENSES:
Research and development 104 124 396 496
Selling, general, and
administrative 1,511 1,439 5,837 6,117
Impairment of goodwill -- -- 12,980 15,602
Impairment of other
intangible assets -- -- 323 --
Total operating
expenses 1,615 1,563 19,536 22,215
OPERATING (LOSS) INCOME (392) 9 (14,450) (13,984)
LOSS ON SALE OF LAND AND
BUILDING -- (2,097) -- (2,097)
INTEREST EXPENSE (517) (598) (2,042) (2,510)
OTHER INCOME, net 3 4 11 30
COSTS ASSOCIATED WITH DEBT
MODIFICATIONS -- 30 -- (561)
LOSS BEFORE BENEFIT FOR
INCOME TAXES (906) (2,652) (16,481) (19,122)
BENEFIT FOR INCOME TAXES -- (1,659) (883) (7,634)
Net loss $ (906) $ (993) $(15,598) $(11,488)
LOSS PER COMMON BASIC &
DILUTED SHARE $ (0.12) $ (0.14) $ (2.19) $ (1.62)
WEIGHTED AVERAGE NUMBER OF
COMMON & COMMON EQUIVALENT
SHARES OUTSTANDING, BASIC &
DILUTED 7,110 7,109 7,110 7,110
ALPHA TECHNOLOGIES GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share-Related Data)
Oct. 26, Oct. 27,
ASSETS 2003 2002
CURRENT ASSETS:
Cash and cash equivalents $1,677 $751
Trade accounts receivable, net 5,745 7,198
Inventories, net 6,553 7,585
Prepaid expenses 1,364 1,201
Total current assets 15,339 16,735
PROPERTY AND EQUIPMENT, net 12,103 14,991
GOODWILL -- 12,980
DEFERRED INCOME TAXES 10,046 9,608
OTHER ASSETS, net 807 1,319
TOTAL ASSETS $38,295 $55,633
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade $3,486 $2,967
Accrued compensation and related benefits 612 700
Other accrued expenses 716 584
Current portion of long-term debt 1,000 3,000
Total current liabilities 5,814 7,251
REVOLVING CREDIT FACILITY 3,200 3,200
LONG-TERM DEBT 18,150 18,650
OTHER LONG-TERM LIABILITIES 470 652
TOTAL LIABILITIES 27,634 29,753
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $100 par value; 180,000 shares
authorized; no shares issued or outstanding -- --
Common stock, $.03 par value; 17,000,000 shares
authorized; 8,529,826 shares issued at October 26,
2003, and October 27, 2002 256 256
Additional paid-in capital 47,504 47,336
Accumulated deficit (31,128) (15,530)
Accumulated other comprehensive (loss) (77) (288)
Treasury stock, at cost; 1,419,490 common shares at
October 26, 2003, and at October 27, 2002 (5,894) (5,894)
TOTAL STOCKHOLDERS' EQUITY 10,661 25,880
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $38,295 $55,633
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