MISCOR Group Reports 117% Increase in Profits for First Half 2012 Results
Amounts in 000's
MASSILLON, Ohio, Aug. 6, 2012
MASSILLON, Ohio, Aug. 6, 2012 /PRNewswire/ --MISCOR Group, Ltd. (OTCQB:
MIGL), a provider of electro-mechanical repair and complementary services to a
broad range of industries, today reported a 117% increase in net income for
the six months ending July 1, 2012 compared to the prior-year period. This
increase in net income is primarily a result of improved sales, gross margins
and reduced interest expense.
"We are pleased to report continued earnings growth for the first half of
2012," stated Michael P. Moore, President and CEO of MISCOR Group. "The
results in the first half of 2012 reinforce our long-term growth initiatives
and carry on the momentum generated by significant restructuring efforts made
For the six months ended July 1, 2012, total revenues increased by 11.2%, or
$2,584 to $25,740 compared to the same period in 2011. Net income for the six
months ended 2012 was $1,569, compared to $721 for the six months ended 2011,
reflecting an increase of $848, or 117.6%. EBITDA increased by $805 in the
first half of 2012 to $2,793 from $1,988 for the same period in 2011.
For the three months ended July 1, 2012, the Company reported a 9.4%, or
$1,143 increase in net revenues to $13,262, compared to net revenues of
$12,119 for the same period in 2011, primarily due to increased demand for
products and services. Net income for the quarter was $754 compared to $501
for the second quarter of 2011, an increase of $253, or 50.5%.
Correspondingly, basic and fully diluted earnings per share increased to $0.06
per share as compared to $0.04 per basic and fully diluted share for the same
period in 2011. For more details, the reader is strongly encouraged to review
the Company's most recent Form 10-Q filed with the Security and Exchange
Commission on August 6, 2012.
"We remain focused on offering our customers unique services within our
industrial and rail markets," Moore continued. "Our value proposition remains
steadfast, providing superior quality through unmatched experience, quality
and innovation. We will continue to seek profit improvement and further
solidify our position as a leading provider of industrial and rail services as
we enter the second half of 2012."
About MISCOR Group, Ltd.
Massillon, Ohio-based MISCOR Group, Ltd. (OTCQB: MIGL) provides electrical and
mechanical solutions to industrial, commercial and institutional customers
through two segments: Industrial Services, consisting of the Company's
maintenance and repair services to several industries, including electric
utilities, wind power, transportation, chemical, oil, pulp and paper, metal
manufacturing and forming, and repairing, manufacturing, and remanufacturing
industrial lifting magnets for the steel and scrap industries; and Rail
Services, consisting of the Company's manufacturing of power assemblies,
engine parts, and other components related to large diesel engines.
This press release includes "forward-looking statements" within the meaning of
the safe harbor provisions of the United States Private Securities Litigation
Reform Act of 1995. Words such as "anticipates," "believes," "estimates,"
"expects," "intends," "should," "could," "will," or variations of such words
and similar expressions are intended to identify forward-looking statements.
These forward-looking statements reflect the Company's views, expectations and
beliefs at the time such statements were made with respect to such matters,
and may cover such items as the Company's future plans, objectives, events,
contract pricing and results such as revenues, expenses, income, earnings per
share, capital expenditures, operating margins, financial position, expected
results of operations and other financial items. There are a number of
factors, many of which are beyond the Company's control, which could cause
actual results and outcomes to differ materially from those described in the
forward-looking statements. Forward-looking statements are not guarantees of
future performance and involve certain risks, uncertainties and assumptions
("Risk Factors") that make the timing, extent, likelihood and degree of
occurrence of these matters difficult to predict. Risk Factors include, among
others: price of raw materials, ability to win and service competitively
priced new contracts in sufficient amounts to operate and expand effectively,
employee turnover, ability to compete in highly competitive, geographically
diverse marketplaces, ability to complete planned divestitures and varying and
sometimes volatile economic conditions. For further discussion of risks and
uncertainties, individuals should refer to the Company's SEC filings. MISCOR
Group, Ltd. undertakes no obligation and does not intend to update these
forward-looking statements to reflect events or circumstances occurring after
this press release is issued. You are cautioned not to place undue reliance on
these forward looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their entirety
by this cautionary statement.
MISCOR Group, Ltd
Condensed Consolidated Financial Statements Reconciliation
Three months ended
July 1, 2012 July 3, 2011
EBITDA - Consolidated
Net income $ 754 $ 501
Interest Expense 174 257
Depreciation and amortization 411 411
Income taxes 30 (43)
EBITDA (1) $ 1,369 $ 1,126
Six months ended
July 1, 2012 July 3, 2011
EBITDA - Consolidated
Net income $ 1,569 $ 721
Interest Expense 367 511
Depreciation and amortization 813 820
Income taxes 44 (64)
EBITDA (1) $ 2,793 $ 1,988
(1) EBITDA represents earnings before interest expense, income taxes,
depreciation and amortization. Our management believes EBITDA is useful in
evaluating our operating performance compared to that of other companies in
our industry because the calculation of EBITDA generally eliminates the
effects of financing and income taxes and the accounting effects of capital
spending and acquisitions. We believe EBITDA is useful to investors to assist
them in getting a more accurate picture of our results from operations.
However, EBITDA is not a recognized measurement under GAAP and when analyzing
our operating performance, readers should use EBITDA in addition to, and not
as an alternative for, net income as determined in accordance with GAAP.
Because not all companies use identical calculations, our presentation of
EBITDA may not be comparable to similarly titled measures of other companies.
Furthermore, EBITDA is not intended to be a measure of free cash flow for our
management's discretionary use, as it does not consider certain cash
requirements such as tax and debt service payments. The amounts shown for
EBITDA also differ from the amounts calculated under similarly titled
definitions in our debt instruments, which are further adjusted to reflect
certain other cash and non-cash charges and are used to determine compliance
with financial covenants and our ability to engage in certain activities, such
as incurring additional debt and making certain restricted payments.
SOURCE MISCOR Group, Ltd.
Contact: Trisha Abbruzzi, MISCOR Group, Ltd., +1-(330) 830-3526,
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