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Insignia Systems, Inc. Announces a Profitable First Quarter

  Insignia Systems, Inc. Announces a Profitable First Quarter

Business Wire

MINNEAPOLIS -- May 01, 2013

Insignia Systems, Inc. (Nasdaq: ISIG) today reported the following results for
the three months ended March 31, 2013, as compared to the three months ended
March 31, 2012.

                         Three months ended  Three months ended  % increase
                          3/31/2013            3/31/2012            (decrease)
                                                                             
POPS revenue              $     6,967,000      $   3,468,000        100.9    %
Products revenue               429,000           529,000         (18.9  ) %
Total net sales                 7,396,000          3,997,000        85.0     %
                                                                             
Operating income (loss)   $     976,000        $   (2,254,000  )
                                                                             
Net income (loss)         $     420,000        $   (1,577,000  )
                                                                             
Net income (loss) per
share:
Basic                     $     0.03           $   (0.12       )
Diluted                   $     0.03           $   (0.12       )
                                                                             

CEO Scott Drill commented, “The trend of profitable quarters continued in the
first quarter of 2013, making it three straight profitable quarters. Revenue
was the highest that we have seen in nearly three years, which gives us a
strong start to what should be a good year.”

President and COO Glen Dall commented, “We’re pleased with the significant
increase in revenue and continued profitability. We have put in a lot of hard
work over the past few quarters getting our company in a position where we can
turn a high-revenue quarter into significant profitability, as we did this
past quarter. I commend our sales force, and the rest of the team that
supports them, for the results we saw in the first quarter of 2013.”

Mr. Dall continued, “POPS bookings are $5.3 million for the second quarter
with approximately three weeks of selling time remaining. While we believe
that CPG spending has expanded from what we were seeing 12 to 18 months ago,
we still face competitive pressures and alternate promotional vehicles in the
marketplace. We are continuing to add sales and marketing resources to pursue
revenue growth while closely monitoring our costs.

“In new product news, we recently launched BannerPOPS^® in select retailers,
and have already secured several CPG commitments to execute this product later
in the year. We are looking to increase the release of new tactics in the
coming months.”

Selected Financial Information

CFO John Gonsior stated, “Our balance sheet remains strong, with nearly $22.7
million in working capital, versus $21.8 million at December 31, 2012. As of
March 31, 2013, we had cash and cash equivalents balances of nearly $19.5
million, versus $20.3 million at December 31, 2012. As of April 30, 2013, our
cash and cash equivalents balances were approximately $21.6 million.
Additionally, we have continued to focus on efforts to lower our breakeven
revenue level. Although that revenue level fluctuates based on our program and
network mix, our breakeven revenue level is now lower than it has been in any
prior quarter in the past several years, which allows us to better withstand
fluctuating revenues.”

Conference Call

The Company will host a conference call today, May 1, at 4:00 p.m. Central
Time. To access the live call, dial 877-268-1608. The Conference ID is
98088773. 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 May 8, 2013. To access the replay, dial 855-859-2056 and
reference Conference ID 98088773.

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, Hormel, Nestlé,
and Armour-Eckrich, have taken their brand messages to the point-of-purchase.
For additional information, contact (888)474-7677, or visit the Insignia
website at www.insigniasystems.com.

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

Statements in this press release which are not statements of historical or
current facts are considered forward-looking statements within the meaning of
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995, as amended. The words “believes,” “expects,” “anticipates,” “seeks” and
similar expressions identify forward-looking statements. Readers 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.
Statements made in this press release (or during the conference call referred
to herein) by the Company, its 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 second fiscal quarter of 2013 and results
for fiscal year 2013); 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 and other new 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, actual results may differ materially from the results or performance
expressed or implied by such forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other factors,
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 relationship 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, 2012 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. 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 press 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
                                          March 31,
                                         2013               2012
                                                               
Net sales                            $    7,396,000          $ 3,997,000
Cost of sales                             3,860,000           3,097,000  
Gross profit                              3,536,000            900,000
                                                               
Operating expenses:
Selling                                   1,395,000            1,646,000
Marketing                                 209,000              434,000
General and administrative                956,000             1,074,000  
                                                               
Operating income (loss)                   976,000              (2,254,000 )
Other income                              7,000               7,000      
                                                               
Income (loss) before taxes                983,000              (2,247,000 )
Income tax (expense) benefit              (563,000     )       670,000    
                                                               
Net income (loss)                    $    420,000           $ (1,577,000 )
                                                               
Net income (loss) per share:
Basic                                $    0.03               $ (0.12      )
Diluted                              $    0.03               $ (0.12      )
                                                               
Shares used in calculation of net income (loss) per share:
Basic                                     13,654,000           13,611,000
Diluted                                   13,684,000           13,611,000
                                                               
SELECTED BALANCE SHEET DATA
                                                               
                                          (Unaudited)
                                          March 31,            December 31,
                                         2013               2012
                                                               
Cash and cash equivalents            $    19,461,000         $ 20,271,000
Working capital                           22,653,000           21,791,000
Total assets                              32,926,000           31,706,000
Total liabilities                         5,847,000            5,211,000
Shareholders' equity                      27,079,000           26,495,000

Contact:

Insignia Systems, Inc.
John Gonsior, CFO, 763-392-6200