Axsys Technologies, Inc. Announces Third Quarter Results.ENGLEWOOD Englewood (ĕng`gəlw  d).1 City (1990 pop. 29,387), Arapahoe co., N central Colo., on the South Platte River, a residential and industrial suburb of Denver; inc. 1903. CLIFFS, N.J.--(BUSINESS WIRE)--Nov. 8, 1999-- Axsys Technologies, Inc. (Nasdaq: AXYS), a leading supplier of micro-positioning and precision optical products, today announced sales of $26,881,000 for the third quarter ended September September: see month. 30, 1999, compared with 1998 third quarter sales of $26,250,000. Sales of the company's Precision Systems Group, which continued to be negatively impacted by slowness in the data storage, digital imaging and space end markets, were $15,200,000, compared with $16,051,000 in 1998, while sales of its Industrial Components Group were $11,681,000, compared with $10,199,000 in 1998. The 15% increase in the Industrial Components Group's sales was due to improving market conditions and new product successes. Axsys reported net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter of 1999 of $1,281,000, or $0.32 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 $1,898,000, or $0.45 per diluted share for the third quarter of 1998. Excluding the effect of a tax valuation allowance reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its , as discussed below, and an adjustment to the special charge recorded in the first quarter of 1999, income from continuing operations for the third quarter of 1999 would have been $592,000, or $0.15 per diluted share, compared with $1,114,000, or $0.27 per diluted share in 1998. Axsys reduced its $1,000,000 first quarter 1999 special charge by $216,000 to reflect the actual costs associated with the process of exploring the potential sale of the company that was discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: during the second quarter. Axsys' Chairman Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and Bershad Bershad (Ukrainian: Бершадь, translit., Bershad’), is a small city in the Vinnytsia Oblast (province) of western Ukraine. It is the administrative center of the Bershadsky Raion (district). stated, "While we are pleased with the strong revenue growth of our Industrial Components Group, the delayed delivery delayed delivery Delivery of a certificate after the day on which delivery would occur with a regular-way contract. Delayed delivery is sometimes specified by the seller when the order to sell is entered. See also seller's option contract. and increased developmental costs of our new print engines together with the weakness in the data storage, digital imaging and space markets resulted in disappointing results for our Precision Systems Group and the Company overall. As we previously announced, Mark Bonney Bon·ney , William H. Known as Bil·ly the Kid 1859-1881. American outlaw who murdered 21 men and was shot dead by Sheriff Pat Garrett (1850-1908). Noun 1. was appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. to the position of President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of Axsys at the end of August. Mark is in the process of evaluating every phase of our business to identify opportunities for operational efficiencies and revenue growth. Both Mark and I are excited about the 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 for Axsys." Sales for the nine months ended September 30, 1999 were $78,995,000, compared with sales of $89,922,000 for the first nine months of 1998. Sales of the Company's Precision Systems Group were $44,899,000, compared with $55,909,000 in 1998, while sales of its Industrial Components Group were $34,096,000, compared with $34,013,000 in 1998. Axsys reported net income from continuing operations for the first nine months of 1999, of $2,018,000, or $0.49 per diluted share, compared to $6,426,000 or $1.52 per diluted share in 1998. Excluding the effect of the tax valuation allowance reversal, as discussed below, and before a $784,000 special charge for expenses incurred in connection with the process of exploring the potential sale of the company, net income from continuing operations for the first nine months of 1999 would have been $1,606,000, or $0.39 per diluted share, compared with $4,435,000 or $1.05 per diluted share in 1998. Based upon the level of its current taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. , Axsys has determined that it will realize the benefit of its deferred tax assets that previously had been fully reserved with a valuation allowance. Consequently, the company reversed a portion of its tax valuation allowance to the extent it would have recorded a tax provision on income before taxes during the period. As a result, Axsys reduced its third quarter continuing operations tax provisions by $566,000 and $784,000, in 1999 and 1998, respectively. For the nine-month periods ended September 30, 1999 and 1998 Axsys reduced its continuing operations tax provision by $876,000 and $1,991,000, respectively. As of September 30, 1999, Axsys has reversed substantially all of its tax valuation allowance. Axsys Technologies, Inc. designs, manufactures, markets and distributes micro-positioning and precision optical products for a variety of markets, including defense, space, digital imaging and electronics capital equipment. The company also produces interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. devices and distributes precision ball bearings ball bearings n → roulement m à billes for industrial, consumer and other commercial applications. For more information, contact Axsys Technologies, Inc., 910 Sylvan sylvan emanating from or pertaining to woods. See also sylvatic. Avenue, Suite 180, Englewood Cliffs, NJ 07632. (201) 871-1500, FAX (201) 871-7750; web: www.axsys.com This news release contains certain 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. . The company's business is subject to a variety of risks and uncertainties. As a result, actual future results and developments may be materially different from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in any forward-looking statement. Disclosure regarding factors affecting the company's future results and developments is contained in the company's public filings with the Securities and Exchange Commission, including the company's 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. for the fiscal year ended December December: see month. 31, 1998. -0-
AXSYS TECHNOLOGIES, INC.
Consolidated Statements of Operations
(Unaudited - dollars in thousands, except per share data)
Quarters Ended Nine Months Ended
September 30, September 30,
------------------------ ------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
Net sales $ 26,881 $ 26,250 $ 78,995 $ 89,922
----------- ----------- ----------- -----------
Cost of sales 19,709 19,102 57,027 62,950
Selling, general
and administrative
expenses 5,097 4,079 15,503 15,637
Research and
development
expenses 795 825 2,819 2,710
Amortization of
intangible
assets 107 107 321 321
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Operating income 1,173 2,137 3,325 8,304
Interest expense 106 215 518 761
Special charge (216) -- 784 --
Other expense 2 24 5 54
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Income from
continuing
operations
before taxes 1,281 1,898 2,018 7,489
Provision for
income taxes -- -- -- 1,063
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Income from
continuing
operations 1,281 1,898 2,018 6,426
Discontinued
operations:
(Loss)/income
from operations,
net of taxes -- (2) -- 63
Loss on disposal,
net of taxes -- (2,508) -- (2,508)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
Net income/(loss) $ 1,281 $ (612) $ 2,018 $ 3,981
=========== =========== =========== ===========
=========== =========== =========== ===========
Basic earnings/
(loss) per share:
Continuing
operations $ 0.32 $ 0.45 $ 0.50 $ 1.53
Discontinued
operations -- (0.60) -- (0.58)
----------- ----------- ----------- -----------
=========== =========== =========== ===========
Basic earnings/
(loss) per share $ 0.32 $ (0.15) $ 0.50 $ 0.95
=========== =========== =========== ===========
=========== =========== =========== ===========
Weighted average
common shares
outstanding 4,010,820 4,187,794 4,073,640 4,208,787
=========== =========== =========== ===========
=========== =========== =========== ===========
Diluted earnings/
(loss) per share:
Continuing
operations $ 0.32 $ 0.45 $ 0.49 $ 1.52
Discontinued
operations -- (0.60) -- (0.58)
----------- ----------- ----------- -----------
=========== =========== =========== ===========
Diluted earnings/
(loss) per share $ 0.32 $ (0.15) $ 0.49 $ 0.94
=========== =========== =========== ===========
=========== =========== =========== ===========
Weighted average
common shares
outstanding 4,022,713 4,202,439 4,087,459 4,243,279
=========== =========== =========== ===========
=========== =========== =========== ===========
-0-
AXSYS TECHNOLOGIES, INC
Consolidated Balance Sheets
(Unaudited - dollars in thousands)
September 30, December 31,
1999 1998
------------- ------------
ASSETS
CURRENT ASSETS:
Cash $ 65 $ 69
Accounts receivable - net 15,831 16,877
Inventories - net 28,548 27,028
Other current assets 3,394 2,838
-------- --------
TOTAL CURRENT ASSETS 47,838 46,812
NET PROPERTY, PLANT AND EQUIPMENT 15,075 15,080
EXCESS OF COST OVER NET ASSETS ACQUIRED - net 11,895 12,216
OTHER ASSETS 1,920 2,103
-------- --------
TOTAL ASSETS $ 76,728 $ 76,211
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 7,156 $ 7,867
Accrued expenses and other liabilities 6,926 7,050
Current portion of long-term debt and
capital lease obligations 4,252 1,179
-------- --------
TOTAL CURRENT LIABILITIES 18,334 16,096
LONG-TERM DEBT & CAPITAL LEASES, less current
portion 3,501 5,612
OTHER LONG-TERM LIABILITIES 2,093 2,375
SHAREHOLDERS' EQUITY:
COMMON STOCK, $.01 PAR VALUE: authorized
30,000,000 shares, issued 4,122,767 shares
at September 30, 1999 and December 31, 1998 41 41
CAPITAL IN EXCESS OF PAR 39,504 40,761
RETAINED EARNINGS 14,984 12,966
TREASURY STOCK, at cost, 160,775 shares at
September 30, 1999 and 117,750 at
December 31, 1998 (1,729) (1,640)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 52,800 52,128
-------- --------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 76,728 $ 76,211
======== ========
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