Ault Incorporated Reports Second Quarter Fiscal Year 2003 Results.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Jan. 6, 2003 Company Notes Enhanced Product Mix, Engineering Capabilities and Broader Client Base Well Position the Company for Balance of 2003; Conference Call Set for Tuesday Tuesday: see week. , January January: see month. 7 at 8:00 a.m. CT 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 were $10.5 million, up from the $10.0 million reported for the second quarter of fiscal 2002. The Company reported sales of $21.4 million for the first two quarters of fiscal 2003, compared to $20.3 million for the same period one year ago. For the second quarter of fiscal 2003, the Company's net loss applicable to common stock narrowed to $(1,495,000) or $(0.33) 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 to the net loss of $(2,060,000), or $(0.45) per diluted share for the same period last year. For the six months ended December 1, 2002, the Company reported a net loss applicable to common stock of $(2,016,000), or $(0.44) per diluted share, compared to a net loss of $(2,706,000), or $(0.60) per share for the first two quarters of fiscal 2002. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased in the second quarter of fiscal 2003 to $3,622,000 from $4,104,000 in the second quarter of fiscal 2002. The change in expenses in the second quarter of fiscal 2003 is primarily related to two factors: a reduction in bad debt expense offset by the addition of costs associated with the Power General acquisition, including transition costs for temporary operation for the current Power General location. The second fiscal quarter included a continuing series of measures designed to enhance the Company's 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. growth prospects and industry position. Ault's engineering capabilities were expanded through the consolidation of the Power General acquisition. The 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. of Power General were closed and integrated into existing Ault locations. In addition, the Company's sales and marketing efforts were expanded to broaden both the client and product mix. 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, Ault president and chief executive officer, commented, "Within this challenging business climate, we have been identifying the available opportunities and moving to realize their potential. In addition to the Power General acquisition, we have directed our sales and marketing efforts to new industries and customers. This improved business mix includes customers who are not dependent on our traditional or existing industry dynamics. We believe the time and effort during the past year will reap benefits throughout the next twelve months. Our Asia operations are also notable. They again performed well throughout the second quarter, and we continue to participate in that market's potential. "Also important is the fact that along with this expanded sales and marketing effort, we continue to maintain valued relationships with our largest and best customers." Green concluded, "Once again, we are pleased to move into the new calendar year with a solid foundation, poised for profitability and growth through 2003." For more information on this and other Ault announcements, join the Ault Fiscal 2003 Second Quarter Results Conference Call on Tuesday, January 7, at 8:00 a.m. Central Time. Please call 1-800-562-8369 and use the confirmation code/passcode 791120 five to ten 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 beginning Tuesday, January 7, from 12:00 p.m. Central Time through Tuesday, January 14, 12:00 p.m. Central Time by dialing 1-888-203-1112 and entering the passcode, 791120. 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)
--------------------------------------------
Second Quarter Ended Six Months Ended
---------------------- ---------------------
Dec. 1 Dec. 2 Dec. 1 Dec. 2
2002 2001 2002 2001
---------- ---------- ---------- ----------
Net Sales $10,523 $9,953 $21,371 $20,254
Cost of Goods Sold 8,380 8,587 16,370 16,479
---------- ---------- ---------- ----------
Gross Profit 2,143 1,366 5,001 3,775
Operating Expenses:
Marketing 1,175 953 2,300 1,964
Design Engineering 1,093 603 1,908 1,291
General and
Administrative 1,354 2,548 2,690 3,668
---------- ---------- ---------- ----------
3,622 4,104 6,898 6,923
---------- ---------- ---------- ----------
Operating Loss (1,479) (2,738) (1,897) (3,148)
Other Income (Expense):
Interest Expense (126) (137) (235) (285)
Interest Income 18 30 23 61
Other (41) (68) (124) (252)
---------- ---------- ---------- ----------
(149) (175) (336) (476)
---------- ---------- ---------- ----------
Loss Before Income Taxes (1,628) (2,913) (2,233) (3,624)
Income Tax Benefit (169) (853) (272) (918)
---------- ---------- ---------- ----------
Net Loss (1,459) (2,060) (1,961) (2,706)
Preferred Stock Dividends (36) (55)
---------- ---------- ---------- ----------
Net Loss Applicable to
Common Stock $(1,495) $(2,060) $(2,016) $(2,706)
========== ========== ========== ==========
Loss Per Share
Basic: $(0.33) $(0.45) $(0.44) $(0.60)
Diluted: $(0.33) $(0.45) $(0.44) $(0.60)
Common and Equivalent
Shares Outstanding:
Basic 4,580,574 4,537,522 4,576,355 4,536,536
Diluted 4,580,574 4,537,522 4,576,355 4,536,536
AULT INCORPORATED & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
Dec. 1, June 2,
2002 2002
---------- ----------
Assets:
Current Assets
Cash and Cash Equivalents $3,122 $4,775
Trade Receivables, Less Allowance for Doubtful
Accounts of $424,000 at December 1, 2002;
$320,000 at June 2, 2002 6,943 7,012
Inventories 9,756 8,502
Prepaid and Other Expenses 1,287 2,299
Deferred Taxes 252 252
---------- ----------
Total Current Assets 21,360 22,840
Other Assets:
Goodwill 1,158 1,153
Other 279 262
---------- ----------
1,437 1,415
Property Equipment and Leasehold Improvements:
Land 1,704 1,704
Building and Leasehold Improvements 7,780 7,780
Machinery and Equipment 9,074 7,586
Office Furniture 1,818 1,480
E.D.P. Equipment 2,207 2,234
---------- ----------
22,583 20,784
Less Accumulated Depreciation 8,830 8,342
---------- ----------
13,753 12,442
---------- ----------
$36,550 $36,697
========== ==========
AULT INCORPORATED & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
Dec. 1, June 2,
2002 2002
--------- ---------
Liabilities and Stockholders' Equity:
Current Liabilities
Note Payable to Bank $3,029 $2,890
Current Maturities of Long-Term Debt 294 281
Accounts Payable 3,676 4,717
Accrued Compensation 541 435
Accrued Commissions 204 286
Other 701 148
--------- ---------
Total Current Liabilities 8,445 8,757
Long-Term Debt, Less Current Maturities 2,604 2,754
Deferred Tax Liability 275 273
Retirement and Severance Benefits 211 160
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; None Issued.
Common Shares, No Par Value, Authorized
10,000,000 Shares; Issued and Outstanding
4,587,876 on December 1, 2002; and 4,563,610 on
June 2, 2002; 20,918 20,858
Notes Receivable arising from the sale of common
stock (100) (100)
Accumulated Other Comprehensive Loss (778) (922)
Retained Earnings 2,901 4,917
--------- ---------
22,941 24,753
--------- ---------
$36,550 $36,697
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