Alpha Technologies Group Reports Record Fourth Quarter and Fiscal 2000 Results; Fourth Quarter Income From Continuing Operations Increases 109% to $0.33 Per Diluted Share.Business Editors LOS ANGELES--(BUSINESS WIRE)--Dec. 15, 2000 Fiscal 2000 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 Increases 198% to $1.07 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 Alpha Technologies Group, Inc. (Nasdaq:ATGI ATGI Alpha Technologies Group, Inc. ATGi Active Technologies Group, Inc. ) announced today that income from continuing operations for the fourth quarter of fiscal 2000 ended October 29, 2000 more than doubled to a record $2,459,000, or $0.33 per diluted share, as revenue increased 41% to a record $18,061,000. For the fourth quarter of fiscal 1999, income from continuing operations was $1,172,000, or $0.16 per diluted share, on revenue of $12,777,000. For the twelve months ended October 29, 2000, income from continuing operations increased 198% to a record $7,918,000, or $1.07 per diluted share. This compares to income from continuing operations for fiscal 1999 of $2,656,000, or $0.37 per diluted share. Revenue increased 27% to $61,547,000 from $48,429,000 a year earlier. Gross margin from continuing operations increased to 31.1% for the fourth quarter and 29.9% for fiscal 2000. This compares to gross margin of 28.2% for the fourth quarter and 25.4% for fiscal 1999. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. as a percentage of sales (operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: ) increased to 16.3% for the fourth quarter and 14.3% for fiscal 2000. This compares to operating margin of 10.6% for the fourth quarter and 7.3% for fiscal 1999. "Fiscal 2000 was an outstanding year for Alpha. In addition to our record operating performance, we completed the sale of our connector business and, in November, completed the sale of our subsystems business and received a total of approximately $14,500,000 in cash. These transactions allow us to focus our resources exclusively on our thermal management business. Because the functionality and reliability of electronic systems is impaired by excess heat, the demand for thermal management products is expected to continue to grow as systems become smaller, more complex and more powerful. Alpha is now properly positioned to benefit from this outstanding long-term growth opportunity," said Chairman and Chief Executive Officer Lawrence Butler. Butler said that the Company has received commitments to fully syndicate a $50,000,000 loan facility through Union Bank of California Union Bank of California is one of the 30 largest commercial banks in the United States. It has 327 branches, the majority of which are in San Diego, Los Angeles and Orange Counties. in connection with the previously announced acquisition 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 ), which 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 . He said that the transaction is expected to close in January 2001. "We expect continued revenue and earnings growth in fiscal 2001, driven both by anticipated internal growth and the NNE acquisition. NNE will further diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our revenue base by bringing new customers and products to our business. In addition, NNE's state-of-the-art facility will significantly expand Alpha's capacity and extrusion capabilities, setting the foundation for further growth," Butler added. 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 Communicating information, including data, text, pictures, voice and video over long distance. See communications. , industrial controls, transportation, power supply, factory automation, consumer electronics, and aerospace and defense industries. Alpha has scheduled a conference call this morning at 11:00 AM ET to discuss its results for the fourth quarter and fiscal 2000. During the conference call, the Company may also discuss the future outlook as well as other matters. A simultaneous WebCast of the conference call may be accessed online at www.StreetFusion.com or at 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. 17030733 beginning at approximately 1:00 PM ET. In conjunction with the provisions of the "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " section 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, this press release may contain 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. pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to future anticipated projected plans, performance and developments, as well as other statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future operations. All such forward-looking statements are necessarily only estimates of future results and there can be no assurance that actual results will not materially differ from expectations. Further information on potential factors which could affect Alpha Technologies Group, Inc. are included in the company's Form 10Q and Form 10K filed with the Securities and Exchange Commission.
ALPHA TECHNOLOGIES GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
($ in thousands except per share data)
Quarter Ended Year Ended
Oct. 29, Oct. 31, Oct. 29, Oct. 31,
2000 1999 2000 1999
(unaudited) (unaudited)
(restated)(1) (restated)(1)
(1) (1)
Sales $ 18,061 $ 12,777 $ 61,547 $ 48,429
Cost of sales 12,453 9,177 43,136 36,121
Gross profit 5,608 3,600 18,411 12,308
Operating expenses
Research and development 201 179 831 738
Selling, general and
administrative 2,465 2,064 8,722 8,035
Total operating
expenses 2,666 2,243 9,553 8,773
Operating income 2,942 1,357 8,858 3,535
Interest income
(expense), net 51 (182) (505) (898)
Other income
(expense), net (4) (3) 145 19
Income before taxes 2,989 1,172 8,498 2,656
Provision for
income taxes 530 -- 580 --
Income from continuing
operations 2,459 1,172 7,918 2,656
Gain on sale of discontinued
operations, net of income
tax -- -- 6,478 --
Income from discontinued
operations 53 415 996 1,498
Net income $ 2,512 $ 1,587 $ 15,392 $ 4,154
Basic earnings per common share
Income before
discontinued operations $ 0.36 $ 0.17 $ 1.17 $ 0.38
Gain on sale of
discontinued operations -- -- 0.96 --
Income from discontinued
operations 0.01 0.06 0.15 0.22
Net income $ 0.37 $ 0.23 $ 2.28 $ 0.60
Diluted earnings per common share
Income before
discontinued operations $ 0.33 $ 0.16 $ 1.07 $ 0.37
Gain on sale of
discontinued operations -- -- 0.87 --
Income from discontinued
operations 0.01 0.06 0.13 0.21
Net income $ 0.33 $ 0.22 $ 2.07 $ 0.58
Shares used in computing net
income per share
-- Basic 6,751 6,934 6,760 6,936
Shares used in computing net
income per share
-- Diluted 7,542 7,329 7,429 7,134
SELECTED BALANCE SHEET DATA
($ in thousands) (Oct. 1999 audited) Restated (1)
Oct. 29, 2000 Oct. 31, 1999
Cash $ 12,364 $ 233
Working capital 22,646 11,353
Debt (including current maturities) 3,280 7,659
Total assets 45,605 32,962
Stockholders' equity 34,515 18,502
(1) Restated to reflect discontinued operations
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