Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Insignia Systems, Inc. Announces a Profitable Fourth Quarter



  Insignia Systems, Inc. Announces a Profitable Fourth Quarter

Business Wire

MINNEAPOLIS -- February 27, 2013

Insignia Systems, Inc. (Nasdaq: ISIG) today reported the following results for
the three months and year ended December 31, 2012, as compared to the three
months and year ended December 31, 2011.

                                                                 
                    Three months ended     Three months ended     % increase
                    12/31/2012             12/31/2011             (decrease)  
                                                                              
POPS revenue        $   4,944,000          $   3,649,000          35.5       %
Products                386,000                551,000            (29.9   )  %
revenue
Total net sales         5,330,000              4,200,000          26.9       %
                                                                              
Operating           $   208,000            $   (2,201,000  )
income (loss)
                                                                              
Net income          $   69,000             $   (388,000    )
(loss)
                                                                              
Net income
(loss) per
share:
Basic               $   0.01               $   (0.03       )
Diluted             $   0.01               $   (0.03       )
                                                                              
                    Year ended             Year ended             % increase
                    12/31/2012             12/31/2011             (decrease)  
                                                                              
POPS revenue        $   18,433,000         $   15,032,000         22.6       %
Products                1,741,000              2,201,000          (20.9   )  %
revenue
Total net sales         20,174,000             17,233,000         17.1       %
                                                                              
Operating           $   (2,284,000  )      $   81,632,000     *
income (loss)
                                                                              
Net income          $   (1,624,000  )      $   51,089,000     *
(loss)
                                                                              
Net income
(loss) per
share:
Basic               $   (0.12       )      $   3.35
Diluted             $   (0.12       )      $   3.29
                                                                              

* Includes a net gain from litigation settlement of $89,762,000 ($55,062,000
net of tax) related to the $125,000,000 settlement of the Company’s lawsuit
against News America Marketing In-Store, LLC (NAM).

Chairman and CEO Scott Drill commented, “Although the results from our fourth
quarter are modest, we are pleased to announce our second consecutive
profitable quarter. While there was a loss for the year, that loss was
curtailed after Q2, and the more recent results show that we can be profitable
at lower revenue levels.”

President and COO Glen Dall commented. “While we have worked this past year to
achieve increases in revenues each quarter over the previous year, we have
also worked to continually improve on the cost side of our business. We were
able to achieve our second straight quarter of profitability, and I applaud
our entire organization for that success.

“We are seeing signs of increased CPG spend in the marketplace, and our sales
momentum for 2013 appears to be good. Our first quarter bookings are strong at
$6.8 million; however, second quarter bookings are fairly soft at the present
time. That said, total bookings between first and second quarter of 2013 are
at a level in which we are cautiously optimistic about the results for the
year.

“We also have positive news on the retail front, with the addition of nearly
600 stores to our available network that are scheduled to come online between
now and July. These additions will increase our available network to over
22,000 stores. We believe that these early retail store additions should help
our sales force gain incremental revenue.

“In other areas, we are talking with additional retailers to roll-out our
digital coupon-to-card signage to increase the number of retailers that we
have in the program. We have recently launched the first phase of our new
website, and we continue to work on new product development and cost
containment.”

Selected Financial Information

CFO John Gonsior stated, “Our balance sheet remains strong, with $20,271,000
of cash and cash equivalents as of December 31, 2012, which is an increase
over the cash and cash equivalents as of September 30, 2012 of $19,774,000. As
of December 31, 2012, we have over $21.8 million in working capital, which is
also an increase over the working capital as of September 30, 2012 of $21.3
million. As noted by the non-GAAP information provided, we have continued to
improve our non-GAAP financial results year-over-year.”

Non-GAAP Financial Measures

To supplement the Company’s financial statements presented in accordance with
accounting principles generally accepted in the United States (GAAP), the
Company has provided certain non-GAAP financial measures of financial
performance in prior public announcements. These non-GAAP measures are:

  * net income (loss) before gain from litigation settlement (net of tax), and
  * net income (loss) before gain from litigation settlement (net of tax) and
    restructuring charge (net of tax)

The Company’s reference to these non-GAAP measures should be considered in
addition to results prepared under current accounting standards and are not a
substitute for, or superior to, GAAP results.

These non-GAAP measures are provided to enhance investors’ overall
understanding of the Company’s current financial performance and ability to
generate cash flows. In many cases, non-GAAP financial measures are used by
analysts and investors to evaluate the Company’s performance. Reconciliation
to the nearest GAAP measure can be found in the financial table below.

                                                                    
                  Three Months Ended              Year Ended
                  December 31                     December 31
                  2012           2011             2012               2011
Net income        $   69,000     $ (388,000 )     $ (1,624,000 )     $ 51,089,000
(loss)
                                                                      
Adjustment:
Gain from
litigation            -            -                -                  (55,062,000 )
settlement
(net of tax)
Non-GAAP net
income (loss)
before gain
from                  69,000       (388,000 )       (1,624,000 )       (3,973,000  )
litigation
settlement
(net of tax)
                                                                      
Adjustment:
Restructuring
charge (net           -            -                261,000            -            
of tax)
Non-GAAP net
income (loss)
before gain
from
litigation
settlement        $   69,000     $ (388,000 )     $ (1,363,000 )     $ (3,973,000  )
(net of tax)
and
restructuring
charge (net
of tax)
                                                                                    

Conference Call

The Company will host a conference call today, February 27, at 4:00 p.m.
Central Time. To access the live call, dial 877-268-1608. The Conference ID is
98083959. Please be sure to call in about 5-10 minutes before the call is
scheduled to begin. Audio replay will be available approximately two hours
after the call until March 6, 2013. To access the replay, dial 855-859-2056
and reference Conference ID 98083959. The audio recording will also be
archived on the Company’s website approximately two days after the call until
March 29, 2013.

Insignia Systems, Inc. is a developer and marketer of in-store media
solutions, programs and services to retailers and consumer goods
manufacturers. Through its Point-Of-Purchase Services (POPS) business,
Insignia provides at-shelf advertising solutions in an available network of
over 13,000 chain retail supermarkets, over 1,700 mass merchants and 7,000
dollar stores. Through the nationwide POPS network, over 200 major consumer
goods manufacturers, including General Mills, Kellogg Company, Kraft, Nestlé,
Armour-Eckrich and Ocean Spray, have taken their brand messages to the
point-of-purchase. For additional information, contact (888) 474-7677, or
visit the Insignia website at
http://www.insigniasystems.com/index.php/about/investor-relations/.

Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private
Securities Litigation Reform Act of 1995

This press release contains forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, as amended. Statements made in this press release (or during the
conference call referred to herein) by the Company, its Chairman and CEO Scott
Drill, its Vice President of Finance and CFO John Gonsior or its President and
COO Glen Dall, regarding, for instance: current expectations as to future
financial performance (including but not limited to bookings for the first
fiscal quarter of 2013 and results for fiscal year 2013) and our ability to
continue cost improvements and to maintain profitability, current sales trends
with consumer packaged goods manufacturers, the expected addition of retailers
and the ability to increase revenue; success in our business relationships
with News America and Valassis; the effect of any new line of POPS Signs on
the Company’s performance and the future importance of, and our ability to
develop and implement mobile or digital marketing products and to increase our
retailer access for these products, are forward-looking statements. These
forward-looking statements are based on current information, which we have
assessed and which by its nature is dynamic and subject to rapid and even
abrupt changes. As such, results may differ materially in response to a change
in this information. Forward-looking statements include statements expressing
the intent, belief or current expectations of the Company and members of our
management team and involve certain risks and uncertainties, including: (i)
the risk that management may be unable to fully or successfully implement its
business plan to achieve and maintain profitability in the future; (ii) the
risk that the Company will not be able to expand core product offerings or to
develop and implement new product offerings in a successful manner; (iii) the
unexpected loss of a major consumer packaged goods manufacturer or retailer
agreement or loss of our relationship with News America or Valassis; (iv)
prevailing market conditions in the in-store advertising industry, including
intense competition for agreements with retailers and consumer packaged goods
manufacturers and the effect of any delayed or cancelled customer programs;
(v) potentially incorrect assumptions by management with respect to the
financial effect of cost containment or reduction initiatives, current
strategic decisions, current sales trends for fiscal year 2013; and (vi) other
economic, business, market, financial, competitive and/or regulatory factors
affecting the Company’s business generally, including those set forth in our
Annual Report on Form 10-K for the year ended December 31, 2011 and additional
risks, if any, identified in our Quarterly Reports on Form 10-Q and our
Current Reports on Forms 8-K filed with the SEC. You are cautioned not to
place undue reliance on these or any forward-looking statements, which speak
only as of the date of this press release and conference call. Such
forward-looking statements should be read in conjunction with the Company's
filings with the SEC. The Company assumes no responsibility to update the
forward-looking statements contained in this release or the reasons why actual
results would differ from those anticipated in any such forward-looking
statement, other than as required by law.

 
 
Insignia Systems, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)
                                                                           
                   Three Months Ended                    Year Ended
                   December 31,                          December 31,
                   2012               2011               2012               2011
Net sales          $ 5,330,000        $ 4,200,000        $ 20,174,000       $ 17,233,000
Cost of sales        2,982,000          3,526,000          12,872,000         12,415,000   
Gross profit         2,348,000          674,000            7,302,000          4,818,000
Operating
expenses:
Selling              1,178,000          1,458,000          5,049,000          5,753,000
Marketing            230,000            427,000            1,149,000          1,700,000
General &            732,000            990,000            3,388,000          5,495,000
administrative
Gain from
litigation           -                  -                  -                  (89,762,000 )
settlement,
net
                                                                             
Operating            208,000            (2,201,000 )       (2,284,000 )       81,632,000
income (loss)
Other income,        7,000              8,000              27,000             63,000       
net
                                                                             
Income (loss)        215,000            (2,193,000 )       (2,257,000 )       81,695,000
before taxes
Income tax
benefit              (146,000   )       1,805,000          633,000            (30,606,000 )
(expense)
Net income         $ 69,000           $ (388,000   )     $ (1,624,000 )     $ 51,089,000   
(loss)
                                                                             
Net income
(loss) per
share
Basic              $ 0.01             $ (0.03      )     $ (0.12      )     $ 3.35
Diluted            $ 0.01             $ (0.03      )     $ (0.12      )     $ 3.29
                                                                             
Shares used in
calculation of
net income
(loss) per
share:
Basic                13,602,000         14,262,000         13,605,000         15,229,000
Diluted              13,613,000         14,262,000         13,605,000         15,512,000
                                                                                           

       
        SELECTED BALANCE SHEET DATA
        (Unaudited)
                                                      
                                      December 31,     December 31,
                                      2012             2011
        Cash and cash equivalents     $ 20,271,000     $ 23,202,000
        Working capital                 21,791,000       22,671,000
        Total assets                    31,706,000       34,594,000
        Total liabilities               5,211,000        6,735,000
        Shareholders' equity            26,495,000       27,859,000

Contact:

Insignia Systems, Inc.
John Gonsior, CFO, 763-392-6200
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement