CompuDyne Announces Second Quarter Earnings of $0.13 Per Share; Revenues Increase 20.6%, Net Income Increases 45.4%.Business Editors/High-Tech Writers HANOVER Hanover, city, Germany Hanover, Ger. Hannover, city (1994 pop. 524,820), capital of Lower Saxony, N Germany, on the Leine River and the Midland Canal. , Md.--(BUSINESS WIRE)--Aug. 5, 2003 CompuDyne Corporation (Nasdaq: CDCY) an industry leader in sophisticated security products, integration and technology for the public security markets, today announced that earnings per share for the second quarter of 2003 were $0.13 compared to $0.09 in the second quarter of 2002. Included in 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. for the second quarter of 2003 was a non-cash purchase accounting amortization and depreciation charge related to the May 2, 2002 acquisition of Tiburon Tiburon (Spanish Tiburón, "shark") may refer to: Places
Earnings per share for the first half of 2003 were $0.24 compared to $0.20 for the first half of 2002. Included in operating expenses for the first half of 2003 was a non-cash purchase accounting amortization and depreciation charge related to the May 2, 2002 acquisition of Tiburon, of $486 thousand, equivalent to $0.04 per share after tax. Revenues for the first half of 2003 were $94.3 million, an increase of $24.4 million, or 34.9% over the first half of 2002. Net income for the first half of 2003 was $1.98 million, an increase of $485 thousand, or 32.5%, over the first half of 2002. EBITDA for the first half of 2003 was $5.4 million compared to $4.1 million for the first half of 2002. Revenues and earnings benefited in the second quarter and the first half of 2003 from the completion of the acquisition of Tiburon, Inc. Backlogs at June June: see month. 30, 2003 were $181.7 million. Reduced backlogs at the Company's Institutional Security Systems segment related to tight customer budgets and increased competition were balanced by strong backlogs at the Public Safety & Justice segment due to the previously announced Detroit Detroit, city, United States Detroit (dĭtroit`), city (1990 pop. 1,027,974), seat of Wayne co., SE Mich., on the Detroit River and between lakes St. Clair and Erie; inc. as a city 1815. award and other recent wins. The Company's balance sheet continued to strengthen in the second quarter due to strong EBITDA and asset management efforts, with net debt (debt minus cash) decreasing by $1.8 million to $17.0 million after a $7.5 million reduction in the first quarter. The second quarter results continued to reflect the negative impact of the residual Residual See:Residual value effects of the low margin projects from the Institutional Security System's West Coast operations. The Company's Attack Protection segment continued to experience depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. results from excess capacity and restrained customer releases for production. However, volume has started to pick up in the Attack Protection segment, which resulted in this segment significantly reducing the losses it experienced in 2002. While there are some specific uncertainties in the third and fourth quarters, earnings continue to be on track with the earlier estimates that the Company expects to earn in excess of $.60 per share in 2003. Martin Roenigk, Chairman of CompuDyne stated "The Company is quite optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that it is laying a solid foundation for continued growth which should result in enhanced earnings in 2004." Certain statements made in this press release constitute "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. " within the meaning 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, including those statements concerning the Company's expectations with respect to future operating results and other events. Although the Company believes it has a reasonable basis for these forward-looking statements, these statements involve risks and uncertainties that cannot be predicted or quantified and consequently, actual results may differ materially 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. by such forward-looking statements. Factors which could cause actual results to differ from expectations include, among others, capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. patterns of the security market, the Company's ability to secure new contracts and the risks inherent in CompuDyne's business and future uncertainties which are further described in its filings with the Securities and Exchange Commission, such as the Company's 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. , Form 10-Q Form 10-Q See 10-Q. , and Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. reports.
COMPUDYNE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30, December 31,
ASSETS 2003 2002
------- -------
(dollars in thousands)
Current Assets
Cash and cash equivalents $ 4,079 $ 1,274
Accounts receivable, net 43,124 45,168
Contract costs in excess
of billings 15,159 18,297
Inventories 5,637 6,401
Deferred tax assets 1,220 1,220
Prepaid expenses and
other 3,168 2,510
------- -------
Total Current Assets 72,387 74,870
Property, plant and equipment, net 10,836 12,171
Goodwill and intangible assets, net 27,766 32,109
Deferred tax assets 965 987
Other 746 667
------- -------
Total Assets $112,700 $120,804
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and
accrued liabilities $ 24,177 $ 22,235
Billings in excess of
contract costs
incurred 13,654 13,602
Deferred revenue 3,793 5,812
Current portion of
notes payable 2,107 2,402
------- -------
Total Current Liabilities 43,731 44,051
Notes payable 18,975 25,108
Deferred tax liabilities 2,114 2,114
Other 270 327
------- -------
Total Liabilities 65,090 71,600
------- -------
Commitments and contingencies
Total Shareholders' Equity 47,610 49,204
------- -------
Total Liabilities and
Shareholders' Equity $112,700 $120,804
======= =======
Certain prior year numbers have been reclassified to conform to the
current year's format.
COMPUDYNE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
---- ---- ---- ----
(in thousands, except per share data)
Net sales $ 47,538 $ 39,416 $ 94,305 $ 69,906
Cost of goods sold 35,751 29,978 70,735 54,473
------- ------- ------- -------
Gross profit 11,787 9,438 23,570 15,433
Operating expenses 7,453 6,530 15,168 11,022
Research and development 2,032 1,289 3,913 1,323
Amortization and
depreciation Of
purchase accounting
intangibles 243 162 486 162
------- ------- ------- -------
Operating income 2,059 1,457 4,003 2,926
------- ------- ------- -------
Total other expense 332 269 704 520
Income before income taxes 1,727 1,188 3,299 2,406
Income taxes 690 475 1,320 912
------- ------- ------- -------
Net income $ 1,037 $ 713 $ 1,979 $ 1,494
======= ======= ======= =======
Earnings per share:
Basic earnings per share $ .13 $ .10 $ .25 $ .21
------- ------- ------- -------
Weighted average number
of common shares
outstanding 7,898 7,427 7,860 7,050
======= ======= ======= =======
Diluted earnings per
share $ .13 $ .09 $ .24 $ .20
======= ======= ======= =======
Weighted average number
of common shares and
equivalents 8,139 8,065 8,106 7,656
======= ======= ======= =======
COMPUDYNE CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA
(in thousands, unaudited)
Three Months Six Months
Ended Ended
June 30, June 30,
2003 2002 2003 2002
----- ----- ----- -----
Revenues
Public Safety and
Justice $ 11,052 $ 7,944 $ 22,539 $ 9,072
Institutional Security
Systems 25,692 21,981 49,140 42,201
Attack Protection 6,533 5,598 14,876 11,772
Federal Security
Systems 4,261 3,893 7,750 6,861
------- ------- ------- -------
$ 47,538 $ 39,416 $ 94,305 $ 69,906
======= ======= ======= =======
Three Months Six Months
Ended Ended
June 30, June 30,
2003 2002 2003 2002
----- ----- ----- -----
Pre-tax income (loss)
Public Safety and
Justice $ 482 $ 491 $ 550 $ 493
Institutional Security
Systems 835 1,040 1,572 2,178
Attack Protection (52) (696) 510 (689)
Federal Security
Systems 296 252 503 301
Corporate 166 101 164 123
======= ======= ======= =======
$ 1,727 $ 1,188 $ 3,299 $ 2,406
======= ======= ======= =======
June 30, December 31,
2003 2002
------- ------------
Backlog
Public Safety and Justice $ 72,621 $ 74,867
Institutional Security Systems 81,916 99,527
Attack Protection 16,552 18,478
Federal Security Systems 10,643 11,440
------- -------
$181,732 $204,312
======= =======
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)
Three Months Ended Six Months Ended
2003 2002 2003 2002
------- ------- ------- -------
Net income $ 1,037 $ 713 $ 1,979 $ 1,494
Tax expense 690 475 1,320 912
Interest expense 334 346 713 659
Purchase accounting
depreciation
and amortization 243 162 486 162
Other depreciation
and amortization 382 505 890 910
------- ------- ------- -------
EBITDA $ 2,686 $ 2,201 $ 5,388 $ 4,137
======= ======= ======= =======
(1) This press release contains unaudited financial information that
is not prepared in accordance with generally accepted accounting
principals (GAAP). Investors are cautioned that the non-GAAP financial
measures are not to be construed as an alternative to GAAP. The
Company's management uses EBITDA (earnings before interest, taxes,
depreciation and amortization) in its internal analysis of net income
and monitors it to ensure compliance with certain covenants under the
Company's credit facility. Management believes that EBITDA provides
useful information to investors for meaningful comparison to prior
periods and analysis of the critical components of its results of its
operations. Management also believes that EBITDA is a valuable
financial measure to investors because it allows them to monitor the
Company's compliance with certain covenants under its credit facility.
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