Ault Incorporated Reports First Quarter Fiscal Year 2003 Results; First Quarter Acquisition of Power General Expands Ault Capabilities, Strongly Positions Company within Industry.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Sept. 23, 2002 Ault Ault as a personal name can refer to:
The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $10.8 million for the first quarter of fiscal 2003 ended September September: see month. 1, 2002, up from $10.3 million for the first quarter of fiscal 2002 ended September 2, 2001. The net loss applicable to common stock for the first quarter of fiscal 2003 narrowed to $(521,000), or $(0.11) 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, compared with a loss of $(646,000), or $(0.14) per diluted share for the same period last year. Ault president and chief executive officer, Frederick Frederick, city, United States Frederick, city (1990 pop. 40,148), seat of Frederick co., NW Md.; settled 1745, inc. 1817. The processing center of a fertile farm and dairying area, it makes beer, household items, optical and glass products, leather goods, M. Green, commented, "Despite the challenging industry and current economic conditions, Ault has taken the steps necessary to enhance its position as an industry leader. As part of our ongoing strategy, we have also identified opportunities within our industry and acted upon them. The early first quarter acquisition of Power General is a good example of this strategy. As a result, we continue to be well positioned for the eventual industry and economic turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. ." Early in the first quarter, the Company announced the acquisition of the operating assets Operating Assets Another term for working capital. of the Power General division of Nidec America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. Corporation. Power General had specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. in custom AC/DC AC/DC adj. Slang Having a bisexual orientation. [From the likening of a bisexual person to an appliance that works on either alternating or direct current. power supplies and DC/DC products. Ault maintained Power General's engineering group in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , and has begun moving Power
General's manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. to existing Ault facilities in
North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Asia, a process that will be completed within
approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. three to four months. The acquisition of Power General will benefit Ault in a number of ways. The additional engineering capabilities enhanced product development capabilities and the acquisition expanded Ault's line through the addition of AC/DC power supply and DC/DC converter (1) A device that changes one set of codes, modes, sequences or frequencies to a different set. See A/D converter. (2) A device that changes current from 60Hz to 50Hz and vice versa. products. This broader offering affords Ault new business opportunities and strengthens its ability to meet the changing requirements of customers. Green concluded, "Going forward, we will continue to assert our competitive position, engineering expertise and financial strength, to secure and maintain the market share crucial for long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. industry success. Today's business Today's Business is a show on CNBC that aired in the early morning, 5 to 7AM ET timeslot, hosted by Liz Claman and Bob Sellers, and it was replaced by Wake Up Call on Feb 4, 2002. world is increasingly wireless and mobile, a trend that is unlikely to slow. Significantly, this is just the sort of business environment that demands the power supplies that Ault is well positioned to provide globally." For more information on this and other Ault announcements, please join the Ault First Quarter Fiscal 2003 conference call on Tuesday Tuesday: see week. , September 24 at 8:00 a.m. Central Time at 1-800-562-8369 and use the confirmation code/pass-code 477756 to access the conference call. Ask for the Ault Inc. Fiscal 2003 First Quarter Earnings Conference Call, and please call a few minutes before the designated start time. The live webcast of the call may also be accessed online on StreetEvents at www.streetevents.com or on Ault's website at www.aultinc.com. The call will be archived at StreetEvents and Ault's websites for 90 days. You may also listen to an Encore Recording of the conference call from Tuesday, September 24, from 12:00 p.m. Central Time through Tuesday, October October: see month. 1, 12:00 p.m. Central Time by dialing 1-888-203-1112 and then the reservation A clause in a deed of real property whereby the grantor, one who transfers property, creates and retains for the grantor some right or interest in the estate granted, such as rent or an Easement ,a right of use over the land of another. number 477756. The Company's Annual Meeting of Shareholders will be held at 3:00 p.m. on Tuesday, September 24, 2002, at the Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. Club, located at 729 Second Avenue South, Minneapolis, Minn. Ault designs, manufactures, and markets power conversion products. The Company is a leading supplier to original equipment manufacturers of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment, computer peripherals and medical equipment. Ault's power conversion products are used to provide power at various levels from 1 to 1200 watts for a wide variety of equipment. Statements regarding Ault's anticipated future performance are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. and therefore involve risks and uncertainties that could cause results or developments to differ significantly from those indicated in the 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. . These include, but are not limited to: market conditions in the global electronics industry, buying patterns of major customers, competitive products and technologies, the ability to control expense growth, and other factors set forth in the Company's filings with the Securities and Exchange Commission.
AULT INCORPORATED & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Amounts Per Share)
(Unaudited)
Three Months Ended
--------------------------
September 1, September 2,
2002 2001
------------ ------------
Net Sales $10,848 $10,301
Cost of Goods Sold 7,990 7,892
------------ ------------
Gross Profit 2,858 2,409
Operating Expenses:
Marketing 1,125 1,011
Design Engineering 815 688
General & Administrative 1,336 1,120
------------ ------------
3,276 2,819
------------ ------------
Operating Loss (418) (410)
Non Operating Income (Expense):
Interest Expense (109) (148)
Interest Income 5 31
Other (83) (184)
------------ ------------
(187) (301)
------------ ------------
Loss Before Income Taxes (605) (711)
Income Tax Benefit (103) (65)
------------ ------------
Net Loss (502) (646)
Preferred Stock Dividends (19)
Net Loss Applicable to Common Stock $(521) $(646)
============ ============
Loss Per Share:
Basic $(0.11) $(0.14)
Diluted $(0.11) $(0.14)
Common and equivalent shares outstanding:
Basic 4,571,973 4,535,551
Diluted 4,571,973 4,535,551
AULT INCORPORATED & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
September 1, June 2,
2002 2002
------------ ------------
Assets:
Current Assets
Cash and Cash Equivalents $3,191 $4,775
Trade Receivables, Less Allowance for
Doubtful Accounts of $518,000 at
September 1, 2002; $320,000 at June 2,
2002 7,608 7,012
Inventories 10,260 8,502
Prepaid and Other Expenses 2,373 2,299
Deferred Taxes 252 252
------------ ------------
Total Current Assets 23,684 22,840
Other Assets:
Goodwill 1,153 1,153
Other 290 262
------------ ------------
1,443 1,415
Property Equipment and Leasehold
Improvements:
Land 1,704 1,704
Building and Leasehold Improvements 7,780 7,780
Machinery and Equipment 8,959 7,586
Office Furniture 1,807 1,480
E.D.P. Equipment 2,238 2,234
------------ ------------
22,488 20,784
Less Accumulated Depreciation 8,578 8,342
------------ ------------
13,910 12,442
------------ ------------
Total Assets $39,037 $36,697
============ ============
AULT INCORPORATED & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
September 1, June 2,
2002 2002
------------ ------------
Liabilities and Stockholders' Equity:
Current Liabilities
Note Payable to Bank $3,146 $2,890
Current Maturities of Long-Term Debt 287 281
Accounts Payable 4,736 4,717
Accrued Compensation 587 435
Accrued Commissions 305 286
Other 331 148
------------ ------------
Total Current Liabilities 9,392 8,757
Long-Term Debt, Less Current Maturities 2,680 2,754
Deferred Tax Liability 276 273
Retirement and Severance Benefits 186 160
Redeemable Convertible Preferred Stock, No
Par Value, 2,074 Shares Issued and
Outstanding 2,074 -
Stockholders' Equity:
Preferred Stock, No Par Value,
Authorized, 1,000,000 Shares
Common Shares, No Par Value, Authorized
10,000,000 Shares; Issued and
Outstanding 4,573,110 on September 1,
2002; and 4,563,610 on June 2, 2002; 20,882 20,858
Notes Receivable arising from the sale
of common stock (100) (100)
Accumulated Other Comprehensive Loss (749) (922)
Retained Earnings 4,396 4,917
------------ ------------
24,429 24,753
------------ ------------
$39,037 $36,697
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