Argon ST, Inc. Announces Record Q4 and Fiscal Year 2005 Results.FAIRFAX, Va. -- Argon ST Wikipedia is not the place for advertisement or self-advertising. Argon ST (NASDAQ: STST) is a rapidly growing systems engineering and development company headquarted in Fairfax, VA providing full-service C4ISR (command, control, communications, computers, , 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 :STST STST Stainless Steel STST Sounding the Seventh Trumpet (Avenged Sevenfold music album) ), today announced record revenues and earnings for its fourth quarter and fiscal year ended September 30, 2005. Revenues for the fourth quarter ended September 30, 2005 increased $43,523,000, or 108%, to $83,681,000, compared to $40,158,000 for the prior year quarter. Revenue for the fiscal year ended September 30, 2005 increased $142,570,000, or 110%, to $271,754,000, compared to $129,184,000 for the prior fiscal year. Net income for the fourth quarter ended September 30, 2005 was $6,062,000, or $0.29 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, an increase of 95% compared to net income of $3,116,000 or $0.23 per diluted share, for the prior year fourth quarter. For the fiscal year ended September 30, 2005, net income increased 119% to $21,781,000, or $1.06 per diluted share, compared to prior year net income of $9,949,000, or $0.74 per diluted share. Terry Collins, Chairman, 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. and President, stated "Both our fourth quarter and our fiscal year 2005 results reflect record sales, profit, and earnings per share. Even with record sales for the quarter, we continued to increase backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. and the subsequent acquisition of Radix The base value in a numbering system. For example, in the decimal numbering system, the radix is 10. (mathematics) radix - The ratio, R, between the weights of adjacent digits in positional representation of numbers. Technologies on October 1, 2005 will add to our momentum going into 2006. Although the outcome of the Army's stop-work order on the Aerial Common Sensor The Lockheed Martin Aerial Common Sensor (ACS) platform was a reconnaissance aircraft airframe, for the United States Army and Navy. The aircraft would have been able to detect troop movements, intercept enemy communications and radar transmissions, and communicate with other program is still uncertain, we reiterate re·it·er·ate tr.v. re·it·er·at·ed, re·it·er·at·ing, re·it·er·ates To say or do again or repeatedly. See Synonyms at repeat. re·it guidance issued November 1, 2005 that we expect fiscal year 2006 revenue will be in the range of $330 million to $345 million, with 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. estimated to be in the range of $42 million to $45 million. In fiscal year 2005, our employees from the Sensytech/Argon Engineering merger took on significant integration challenges in many important facets of our business while we were simultaneously addressing Sarbanes-Oxley internal controls requirements. During this time, we were able to grow our company by over 100% (over 43% on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis). I am very proud of the team's accomplishment as we look forward to additional growth in 2006." Financial Highlights --Revenue for the fourth quarter increased 108% over the prior year quarter to $83,681,000 --Revenue for the fiscal year increased 110% over the prior year to $271,754,000 --Net Income for the fourth quarter was $6,062,000, or $0.29 per diluted share, up $0.06 per share from the prior year quarter --Net Income for the year was $21,781,000, or $1.06 per diluted share, up $0.32 per diluted share from the prior year About Argon ST, Inc. Argon ST designs, develops, and manufactures systems and sensors
C4ISR Command, Control, Communications, Computer, Intelligence, Surveillance and Reconnaissance C4ISR Command Control Communications Computers Intelligence Surveillance and Reconnaissance ) markets including SIGINT Noun 1. SIGINT - intelligence information gathered from communications intelligence or electronics intelligence or telemetry intelligence signals intelligence (Signals Intelligence), ESM (1) (Enterprise Storage Management) Managing the online, nearline and offline storage within a large organization. It includes analysis of storage requirements as well as making routine copies of files and databases for backup, archiving, disaster recovery, (Electronic Support Measures), EW (Electronic Warfare Noun 1. electronic warfare - military action involving the use of electromagnetic energy to determine or exploit or reduce or prevent hostile use of the electromagnetic spectrum EW military action, action - a military engagement; "he saw action in Korea" ), imaging, and acoustic acoustic /acous·tic/ (ah-kldbomacs´tik) relating to sound or hearing. a·cous·tic or a·cous·ti·cal adj. Of or relating to sound, the sense of hearing, or the perception of sound. systems serving domestic and worldwide markets. Statements in this press release which are not historical facts are 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. under the provisions 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. All forward-looking statements involve risks and uncertainties. The Company wishes to caution readers that certain factors can cause the Company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, the Company. The Company undertakes no obligation and does not intend to update, revise or otherwise publicly release the results of any revisions to these forward-looking statements that may be made to reflect future 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 .
ARGON ST, INC.
CONSOLIDATED BALANCE SHEETS
September 30,
---------------------------
ASSETS 2005 2004
CURRENT ASSETS
Cash and cash equivalents $ 4,064,000 $ 29,732,000
Accounts receivable, net 103,577,000 59,716,000
Inventory 1,166,000 1,574,000
Income taxes receivable 2,464,000 -
Deferred income tax asset 1,742,000 4,822,000
Prepaids and other 888,000 1,288,000
------------ ------------
TOTAL CURRENT ASSETS 113,901,000 97,132,000
Property, equipment and software, net 14,896,000 13,949,000
Advances and cash held in escrow 10,900,000 -
Goodwill 107,956,000 107,776,000
Intangibles, net 1,219,000 2,190,000
Other assets 962,000 694,000
------------ ------------
TOTAL ASSETS $249,834,000 $221,741,000
============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Line of Credit $ 11,000,000 $ -
Accounts payable and accrued expenses 26,857,000 12,727,000
Accrued salaries and related expenses 8,848,000 10,606,000
Deferred revenue 7,139,000 28,336,000
Notes payable - current portion 56,000 226,000
Capital lease obligations - current 19,000 -
Income taxes payable - 5,810,000
Deferred rent 61,000 200,000
------------ ------------
TOTAL CURRENT LIABILITIES 53,980,000 57,905,000
Deferred income tax liability,
long term 1,979,000 1,901,000
Notes payable, net of current portion - 56,000
Deferred rent 1,799,000 954,000
Capital lease obligations, net of
current 63,000 -
Commitments and contingencies - -
STOCKHOLDERS' EQUITY
Common stock:
$.01 Par Value, 100,000,000 and
25,0000 shares authorized,
20,153,878 and 19,468,734 shares
issued at September 30, 2005 and
2004 202,000 195,000
Additional paid in capital 158,458,000 149,043,000
Treasury stock at cost, 126,245 shares (534,000) (534,000)
Retained earnings 34,002,000 12,221,000
Accumulated other comprehensive loss (115,000) -
------------ ------------
TOTAL STOCKHOLDERS' EQUITY $192,013,000 $160,925,000
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $249,834,000 $221,741,000
============ ============
ARGON ST, INC.
CONSOLIDATED INCOME STATEMENTS
For the Quarter Ended For the Year Ended
September 30, September 30,
2005 2004 2005 2004
----------- ----------- ------------ ------------
CONTRACT
REVENUES $83,681,000 $40,158,000 $271,754,000 $129,184,000
COST OF REVENUES 71,258,000 33,977,000 222,792,000 107,307,000
GENERAL AND
ADMINISTRATIVE
EXPENSES 3,273,000 958,000 14,578,000 5,905,000
----------- ----------- ------------ ------------
INCOME FROM
OPERATIONS 9,150,000 5,223,000 34,384,000 15,972,000
OTHER INCOME
(EXPENSE)
Interest income 173,000 77,000 711,000 167,000
Interest expense (3,000) (3,000) (13,000) (13,000)
----------- ----------- ------------ ------------
170,000 74,000 $ 698,000 $ 154,000
INCOME BEFORE
INCOME TAXES 9,320,000 5,297,000 35,082,000 16,126,000
PROVISION FOR
INCOME TAXES 3,258,000 2,181,000 13,301,000 6,177,000
----------- ----------- ------------ ------------
NET INCOME $ 6,062,000 $ 3,116,000 $ 21,781,000 $ 9,949,000
=========== =========== ============ ============
EARNINGS PER SHARE
Basic $ 0.30 $ 0.25 $ 1.10 $ 0.81
Diluted $ 0.29 $ 0.23 $ 1.06 $ 0.74
WEIGHTED- AVERAGE
SHARES
OUTSTANDING
Basic 19,966,072 12,522,871 19,738,367 12,308,412
Diluted 20,825,447 13,479,803 20,616,024 13,366,916
Pro forma Financial Results of Operations The following unaudited condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. combined pro forma results of operations reflect the pro forma combination of Argon argon (är`gŏn) [Gr.,=inert], gaseous chemical element; symbol Ar; at. no. 18; at. wt. 39.948; m.p. −189.2°C;; b.p. −185.7°C;; density 1.784 grams per liter at STP; valence 0. Engineering and the acquired Sensytech business as if the combination had occurred at the beginning of fiscal year 2004, compared with the historical results of operations for Argon Engineering for the same period. These unaudited pro forma condensed combined pro forma results of operations were prepared based on the historical financial statements of Argon Engineering. We believe that the assumptions used provide a reasonable basis for presenting the significant effects directly attributable to the merger transaction. The unaudited pro forma condensed combined results of operations do not purport To convey, imply, or profess; to have an appearance or effect. The purport of an instrument generally refers to its facial appearance or import, as distinguished from the tenor of an instrument, which means an exact copy or duplicate. PURPORT, pleading. to represent what Argon ST's results of operations would have been if such transaction had occurred on the period presented, and are not necessarily indicative of Argon ST's future results.
Twelve Months Ended September 30,
-----------------------------------------------------
2004
-----------------------------------------------------
Historical Proforma
-----------------------------------------------------
Revenue $129,184,000 $189,792,000
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Income from operations 15,972,000 23,132,000
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Net income 9,949,000 14,386,000
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Basic earnings per share $0.81 $0.76
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Diluted earnings per share $0.74 $0.71
-----------------------------------------------------
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Basic wt average shares 12,308,000 18,914,000
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Diluted wt average shares 13,367,000 20,156,000
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Revenues acquired from Sensytech were $60,608,000 for fiscal year 2004. Income from operations acquired from Sensytech was $6,033,000 for fiscal year 2004. Net income acquired from Sensytech was $3,749,000 for fiscal year 2004. Depreciation and amortization on the write up of tangible and 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. , in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with 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 141, was $82,000 and $971,000 respectively for fiscal year 2004 and the after tax effect was $50,000 and $592,000 respectively. The one time merger costs and expenses, incurred by Sensytech, of approximately $2,180,000 before tax and $1,330,000 after tax were added back to the pro forma results for 2004. |
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