American Bank Note Holographics Reports Fourth Quarter and Year End Financial Results.Business Editors ELMSFORD, N.Y.--(BUSINESS WIRE)--March 18, 2004 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Bank Note Holographics, Inc. ("ABNH ABNH American Bank Note Holographics, Inc ") (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. : ABHH) a world leader in the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real , production and marketing of holograms for security applications, today announced financial results for the fourth quarter and year ended December December: see month. 31, 2003. Net income for the year ended December 31, 2003 was $1.0 million, or $0.05 per share, compared with a net loss of $8.1 million, or $0.44 per share, for the year ended December 31, 2002. Net income for the fourth quarter of 2003 was $0.4 million, or $0.02 per share, compared with a net loss of $9.0 million, or $0.49 per share, for the fourth quarter of 2002. The results for the year ended December 31, 2002 were impacted by nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. matters, which included non-cash 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. charges to write off goodwill and fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → of $9.3 million included in costs and expenses, and $0.7 million of patent and other settlements included in other income in the accompanying statements of operations. Sales for the year ended December 31, 2003 were $18.3 million, compared with $18.7 million for the year ended December 31, 2002. Sales for the fourth quarter of 2003 were $4.8 million, compared with $4.5 million for the fourth quarter of 2002. Kenneth H. Traub, president and 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. of ABNH, commented, "I am pleased to report several noteworthy accomplishments for 2003: -- Record Profits - This year, ABNH recorded its highest profits since becoming a public company. The fourth quarter was particularly strong with over $0.6 million of pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern profits. We achieved record profits despite the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of a patent license agreement in January January: see month. 2003 which had generated approximately $0.5 million of income in each prior year. We achieved the record profits by focusing our sales on core strategic markets, and by continuing to improve the efficiency of our operations. -- MasterCard MasterCard Worldwide (NYSE: MA) is a mutinational corporation based in Purchase, NY in the United States. Throughout the world, its principal business is to process payments between the banks of merchants and the banks of purchasers that use its "Mastercard" branded debit- and - We signed 2 important contracts with MasterCard which expanded our relationship and extended our agreement to at least 2011. -- VISA See VESA. - We have expanded our relationship with VISA with new products that had a positive impact in 2003, and have attractive growth potential. -- Other Transaction Cards - We have continued to strengthen our position in the transaction card market with many other issuers and manufacturers of cards. -- Identification Cards - We closed several new projects for secure ID products with agencies of 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. government and foreign governments in 2003. We anticipate continued increase in demand for our proprietary and innovative solutions for secure ID documents. -- Pharmaceutical Products - We were actively involved in an initiative with the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. that resulted in a report issued by the FDA addressing the urgent need to combat the problem of counterfeit drugs counterfeit drug Pharmacology A formulation sold or marketed as if it were a particular proprietary substance produced by a particular manufacturer with specified ingredients, which it may or may not, in fact, contain. See Generic drug, Proprietary drug. . The FDA report specifically referenced security holograms as an authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. technology that could be an important part of an effective anti-counterfeiting strategy. Also in 2003, we expanded our relationship with Eli Lilly For lily, the flower, see . Lilly is a surname and a female given name, and may refer to: People
to another major global pharmaceutical company. We anticipate other major pharmaceutical companies will implement our security packaging solutions in the coming years. -- Financial Position - We concluded 2003 with over $11 million of cash and no debt. We are well positioned to invest in continuing to strengthen ABNH's operating and strategic position." About American Bank Note Holographics, Inc. American Bank Note Holographics is a world leader in the origination, production, and marketing of holograms. The Company's products are used primarily for security applications such as counterfeiting counterfeiting, manufacturing spurious coins, paper money, or evidences of governmental obligation (e.g., bonds) in the semblance of the true. There must be sufficient resemblance to the genuine article to deceive a person using ordinary caution. protection and authentication of transaction cards, identification cards, documents of value, consumer and industrial products as well as for packaging and design applications. ABNH is headquartered in Elmsford, NY. For more information, visit www.abnh.com ABNH Forward-Looking Statement 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 news release includes forward-looking statements that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurance that such statements will prove to be correct. Such statements are subject to certain factors that may cause results to differ materially from the forward-looking statements. Such factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , a copy of which may be obtained from the Company without charge. The Company undertakes no obligation to publicly release results of any of these forward-looking statements 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 after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" or to reflect the occurrence of unexpected results. This release and prior releases are available on the ABNH Web site at www.abnh.com
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
BALANCE SHEETS
(In thousands, except share data)
December 31, December 31,
2003 2002
------------ ------------
ASSETS
Current Assets:
Cash and cash equivalents $11,341 $ 8,659
Accounts receivable, net of allowance for
doubtful accounts of $180 and $210 3,174 3,661
Inventories 2,386 2,541
Deferred income taxes 981 1,347
Prepaid expenses 385 396
Other 150 345
------------ ------------
Total current assets 18,417 16,949
Machinery, equipment and leasehold
improvements, net of accumulated
depreciation and amortization of
$9,238 and $8,505 2,490 2,782
Other assets 113 399
------------ ------------
Total Assets $21,020 $20,130
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 687 $ 966
Accrued expenses 1,627 1,803
Customer advances 49 89
------------ ------------
Total current liabilities 2,363 2,858
Deferred income taxes 1,208 830
------------ ------------
Total liabilities 3,571 3,688
------------ ------------
Commitments and contingencies
Stockholders' Equity:
Preferred stock, authorized 5,000,000
shares; no shares issued or outstanding - -
Common stock, par value $.01 per share,
authorized 40,000,000 shares; issued and
outstanding 18,483,720 shares 185 185
Additional paid-in capital 23,994 23,994
Accumulated deficit (6,730) (7,737)
------------ ------------
Total Stockholders' Equity 17,449 16,442
------------ ------------
Total Liabilities and Stockholders' Equity $21,020 $20,130
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AMERICAN BANK NOTE HOLOGRAPHICS, INC.
STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Three Months Twelve Months
Ended Ended
December 31, December 31,
---------------- -----------------
2003 2002 2003 2002
------- -------- -------- --------
Revenue:
Sales $4,842 $ 4,497 $18,284 $18,665
Royalty income 1 92 48 555
------- -------- -------- --------
4,843 4,589 18,332 19,220
Costs and expenses:
Cost of goods sold 2,185 2,074 8,279 8,926
Selling and administrative 1,607 1,719 6,518 7,136
Research and development 239 287 1,142 1,143
Depreciation and amortization 192 205 739 800
Impairment of goodwill and fixed
assets - 9,298 - 9,298
------- -------- -------- --------
4,223 13,583 16,678 27,303
------- -------- -------- --------
Operating income (loss) 620 (8,994) 1,654 (8,083)
Other income:
Interest 24 37 97 113
Patent and other settlements - 121 - 691
------- -------- -------- --------
24 158 97 804
------- -------- -------- --------
Income (loss) before provision for
income taxes 644 (8,836) 1,751 (7,279)
Provision for income taxes 274 196 744 858
------- -------- -------- --------
Net income (loss) $ 370 $(9,032) $ 1,007 $(8,137)
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Net income (loss) per share:
Basic and diluted $ 0.02 $ (0.49) $ 0.05 $ (0.44)
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