Ault Incorporated Reports Third Quarter Fiscal Year 2003 Results; Customer Base Remains Strong; Order Placement Slows; Conference Call Set for Tuesday, March 25 at 8:00 a.m. CT.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--March 24, 2003 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 $9.94 million, up from the $9.48 million reported for the third quarter of fiscal 2002. The Company reported sales of $31.3 million for the first three quarters of fiscal 2003, up from $29.7 million for the same period one year ago. For the third quarter of fiscal 2003, the Company's net loss applicable to common stock was $(1,829,000) or $(0.40) 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 $(610,000), or $(0.13) per diluted share for the same period last year. For the nine months ended March 2, 2003, the Company reported a net loss applicable to common stock of $(3,845,000), or $(0.84) per diluted share, compared to a net loss of $(3,316,000), or $(0.73) per share for the first three 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. in the third quarter of fiscal 2003 were $3,659,000, compared to $2,602,000 in the third quarter of fiscal 2002. The increase in expenses in the third quarter of fiscal 2003 is primarily due to the additional costs associated with the Power General acquisition, including equipment moving and office relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. . Notably, during the third quarter the Company was impacted by the last of these one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. merger transition expenses. The third fiscal quarter continued a 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 worldwide. These measures concentrated on the introduction of new products, expansion of target markets and acquisition of new customers. Currently, the Company has six to eight new products scheduled for release during the fourth quarter. The product mix includes external and internal switch-mode power supplies as well as the Transport 75, a new dc/dc mobile adapter A device that allows one system to connect to and work with another. An adapter is often a simple circuit that converts one set of signals to another; however, the term often refers to devices which are more accurately called "controllers. . Each of the new power supplies targets one of the Company's key markets that include medical, wireless, industrial and the newest entry - mobile products for powering laptops in cars and service vehicles. The Company is also seeing strong activity among existing OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and customers and new prospects for product samples as they develop new and next-generation equipment. 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, "At the end of the second quarter, we reported that feedback from our customers was more positive and that our business was on the upturn. Due to the recurrence recurrence /re·cur·rence/ (-ker´ens) the return of symptoms after a remission.recur´rent re·cur·rence n. 1. of economic uncertainty worldwide, however, we now find ourselves back in the same holding pattern we have been in for the better part of a year. Unless we see a significant market change in the next three to four weeks, the fourth quarter will not be as strong as we anticipated. "We are, however, well-positioned to deliver the products, services and technical support to our customers worldwide when the economic and industry 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. begins again," Green concluded. For more information on this and other Ault announcements, join the Ault Fiscal 2003 Third Quarter Results Conference Call on Tuesday Tuesday: see week. , March 25, at 8:00 a.m. Central Time. Please call 1-800-500-0177 and use the confirmation code/passcode 259344 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, March 25, from 12:00 p.m. Central Time through Tuesday, April 1, 12:00 p.m. Central Time by dialing 1-888-203-1112 and entering the passcode, 259344. 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)
--------------------------------------------
Third Quarter Ended Nine Months Ended
---------------------- ---------------------
March 2 March 3 March 2 March 3
2003 2002 2003 2002
---------- ---------- ---------- ----------
Net Sales $9,940 $9,484 $31,311 $29,738
Cost of Goods Sold 8,078 7,527 24,448 24,006
---------- ---------- ---------- ----------
Gross Profit 1,862 1,957 6,863 5,732
Operating Expenses:
Marketing 1,185 865 3,485 2,829
Design Engineering 1,154 611 3,062 1,902
General and
Administrative 1,320 1,126 4,010 4,794
---------- ---------- ---------- ----------
3,659 2,602 10,557 9,525
---------- ---------- ---------- ----------
Operating Loss (1,797) (645) (3,694) (3,793)
Other Income (Expense):
Interest Expense (94) (124) (329) (409)
Interest Income 6 31 29 92
Other 62 47 (62) (205)
---------- ---------- ---------- ----------
(26) (46) (362) (522)
---------- ---------- ---------- ----------
Loss Before Income Taxes (1,823) (691) (4,056) (4,315)
Income Tax Benefit (30) (81) (302) (999)
---------- ---------- ---------- ----------
Net Loss (1,793) (610) (3,754) (3,316)
Preferred Stock Dividends (36) (91)
---------- ---------- ---------- ----------
Net Loss Applicable to
Common Stock $(1,829) $(610) $(3,845) $(3,316)
========== ========== ========== ==========
Loss Per Share
Basic: $(0.40) $(0.13) $(0.84) $(0.73)
Diluted: $(0.40) $(0.13) $(0.84) $(0.73)
Common and Equivalent
Shares Outstanding:
Basic 4,597,283 4,538,489 4,583,374 4,537,187
Diluted 4,597,283 4,538,489 4,583,374 4,537,187
AULT INCORPORATED & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
March 2, June 2,
2003 2002
-------- --------
Assets:
Current Assets
Cash and Cash Equivalents $1,204 $4,775
Trade Receivables, Less Allowance for Doubtful
Accounts of $585,000 at March 2, 2003; $320,000
at June 2, 2002 6,742 7,012
Inventories 10,708 8,502
Prepaid and Other Expenses 1,756 2,551
-------- --------
Total Current Assets 20,410 22,840
Other Assets:
Goodwill 1,153 1,153
Other 333 262
-------- --------
1,486 1,415
Property Equipment and Leasehold Improvements:
Land 1,704 1,704
Building and Leasehold Improvements 7,780 7,780
Machinery and Equipment 9,145 7,586
Office Furniture 1,824 1,480
E.D.P. Equipment 2,207 2,234
-------- --------
22,660 20,784
Less Accumulated Depreciation 9,110 8,342
-------- --------
13,550 12,442
-------- --------
$35,446 $36,697
======== ========
AULT INCORPORATED & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
March 2, June 2,
2003 2002
-------- --------
Liabilities and Stockholders' Equity:
Current Liabilities
Note Payable to Bank $3,507 $2,890
Current Maturities of Long-Term Debt 290 281
Accounts Payable 3,711 4,717
Accrued Compensation 620 435
Accrued Commissions 254 286
Other 733 148
-------- --------
Total Current Liabilities 9,115 8,757
Long-Term Debt, Less Current Maturities 2,537 2,754
Deferred Tax Liability 276 273
Retirement and Severance Benefits 269 160
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
4,604,594 on March 2, 2003; and 4,563,610 on June
2, 2002; 20,955 20,858
Notes Receivable arising from the sale of common
stock (100) (100)
Accumulated Other Comprehensive Loss (752) (922)
Retained Earnings 1,072 4,917
-------- --------
21,175 24,753
-------- --------
$35,446 $36,697
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