IntriCon Reports Robust 2007 Second-Quarter Results.Core Businesses Drive Strong Performance ST. PAUL St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn. -- IntriCon Corporation (AMEX AMEX See: American Stock Exchange :IIN IIN Instituto Interamericano del Niño (Inter-American Children's Institute) IIN Intelligent Information Network (Cisco) IIN Installation Instructions IIN Issuer Identification Number ), a designer, developer, manufacturer and distributor of miniature and micro-miniature medical and electronics products, today announced financial results for its 2007 second quarter ended June 30, 2007. For the second quarter, the company reported net sales Net Sales 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 $16.9 million, a 28 percent increase from sales of $13.2 million for the 2006 second quarter. IntriCon delivered second-quarter net income of $527,000, or $0.10 per diluted share. This is a 20 percent increase from net income of $424,000, or $0.08 per diluted share, for the 2006 second quarter. The 2007 sales and net income include approximately one month of results from the late-May 2007 acquisition of Tibbetts Industries, Inc. "Our medical business continues to perform very well, driven by increasing 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 demand for miniature, body-worn devices," said Mark S. Gorder, president and chief executive officer of IntriCon. "Also contributing to second-quarter results were significant gains in hearing health and professional audio. Combined, our core medical, hearing-health and professional audio businesses delivered top-line, second-quarter growth of 38 percent." For the six-month period, IntriCon reported sales of $31.5 million and net income of $554,000, or $0.10 per diluted share. This compares to 2006 six-month sales of $25.0 million and net income of $282,000, or $0.05 per diluted share. During the second quarter, IntriCon announced that it secured $14.5 million in new senior credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities with LaSalle Bank LaSalle Bank Corporation is the holding company for LaSalle Bank N.A. and LaSalle Bank Midwest N.A. With $116 billion in assets, it is headquartered at 135 South LaSalle Street in Chicago, Illinois. to finance the purchase of Tibbetts Industries, refinance existing debt and meet working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . Second-quarter and six-month results contain a $180,000, or $0.03 per diluted share, charge related to the refinancing of the credit facility. Management believes the favorable new terms See suggestions for new terms. will enhance IntriCon's financial flexibility and strengthen the company in both the short- and long-term. Excluding the impact of Tibbetts, IntriCon reported 2007 second-quarter net sales of $16.1 million and net income of $563,000, or $0.10 per diluted share. Again, excluding Tibbetts, net sales totaled $30.7 million for the six-month period with net income of $590,000, or $0.11 per diluted share. Business Update For the second quarter, IntriCon's core businesses increased 38 percent year-over-year. The company's non-core electronics business decreased 10 percent from the second quarter of 2006. Said Gorder, "The addition of Tibbetts provides us with significant incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. gains in both our medical and professional audio businesses. We believe the benefits of this acquisition will eventually carry over to hearing health, where we expect to incorporate Tibbetts' pioneering magnetic telecoil and miniature transducer transducer, device that accepts an input of energy in one form and produces an output of energy in some other form, with a known, fixed relationship between the input and output. technology into key hearing aid components. "Tibbetts' surveillance capabilities also expand our markets to include security products--which are reflected in our professional audio performance. Security products, though currently a small percentage of our overall business, are seeing increasing demand in today's post-9/11 climate." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gorder, IntriCon's growth strategies also potentially include further acquisitions that are consistent with the company's mission. In addition, IntriCon will work to accelerate new product development, further commit to research and development initiatives, and incorporate proprietary technology in all devices. Concluded Gorder, "Our strategic, core-market focus on high-tech, body-worn devices is proving effective from both a top- and bottom-line perspective. By launching new products that use proprietary IntriCon design and technology, we believe we're creating new opportunities and driving the business forward." About IntriCon Corporation Headquartered in Arden Hills, Minn., IntriCon Corporation designs, develops and manufactures miniature and micro-miniature medical and electronics products. The company is focused on four key markets: medical, hearing health, professional audio and communications, and electronics. IntriCon has facilities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Asia and Europe. The company's common stock trades under the symbol "IIN" on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. . For more information about IntriCon, visit www.intricon.com. 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. Statements made in this release and in IntriCon's other public filings and releases that are not historical facts or that include forward-looking terminology such as "may", "will", "believe", "expect", "should", "optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op " or "continue" or the negative thereof or other variations thereon are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934 as amended. These forward-looking statements include, without limitation, statements concerning the benefits of the new credit facility and the Tibbetts acquisition, future growth and expansion, future financial condition and performance, prospects, and the positioning of IntriCon to compete in chosen markets. These forward-looking statements are affected by known and unknown risks, uncertainties and other factors that are beyond IntriCon's control, and may cause IntriCon's actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and factors include, without limitation, risks related to the Tibbetts acquisition, including unanticipated liabilities and expenses, the risk that IntriCon may not be able to achieve its long-term strategy, weakening demand for products of the company due to general economic conditions, possible non-performance of developing technological products, the volume and timing of orders received by the company, changes in the mix of products sold, competitive pricing pressures, availability of electronic components for the company's products, ability to create and market products in a timely manner, competition by competitors with more resources than the company, foreign currency risks arising from the company's foreign operations and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission, including the 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 year ended December 31, 2006. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise. [TABLE OMITTED] (a) General and administrative expense includes $68,626 and $49,085 of non-cash stock option expense related to the adoption of FAS 123(R) at June 30, 2007 and 2006, respectively. [TABLE OMITTED] (a) General and administrative expense includes $141,699 and $93,346 of non-cash stock option expense related to the adoption of FAS 123(R) at June 30, 2007 and 2006, respectively. [TABLE OMITTED] [TABLE OMITTED] |
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