CUI Global Reports Unaudited Consolidated (Second Quarter 2013) Revenue of $18,151,091 PR Newswire TUALATIN, Ore., Aug. 14, 2013 TUALATIN, Ore., Aug. 14, 2013 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative products and technologies, today reported unaudited results for the second quarter ended June 30, 2013. (Logo: http://photos.prnewswire.com/prnh/20120320/FL72629LOGO ) For the six months ended June 30, 2013, CUI Global produced consolidated total revenues of $28,210,451. The numbers demonstrate that gross revenues for the Second Quarter ($18,151,091) grew 80% sequentially from First Quarter revenues ($10,059,360) and 81% year-over-year, when compared to Second Quarter 2012 ($10,011,758), before the acquisition of Orbital-UK and associated accretive revenues. The company had $28,105,549 of cash and cash equivalents as of June 30, 2013 – an increase of more than $25,000,000 since December 31, 2012 ($3,039,840). The company earned a net profit of $0.02 earnings per share (EPS) for the quarter ended June 30, 2013. The earnings before interest, taxes, depreciation and amortization (EBIDTA) per share for the second quarter were $0.08. In addition, as an operating unit, the power and electro-mechanical segment (CUI Inc and CUI Japan) posted record YTD revenues of $22,253,366, which represented a $3,771,845 (20%) increase as compared to the same period in 2012. The sales order back log at June 30, 2013 was a consolidated $38.2 million, a $26.0 million (200%) increase from the June 30, 2012 back log balance of $12.2 million (before the acquisition of Orbital-UK and associated accretive revenues). "This is the first consolidated reporting period following our acquisition of Orbital-UK and the results are quite compelling," explained William Clough, CUI Global's president & CEO. "The sequential growth in revenue; the dramatic increase in customer back orders; and our turn to profitability all demonstrate the tangible results of this immediately accretive acquisition and our continuing efforts, now through CUI, Inc., CUI Japan and Orbital-UK, to increase our penetration into both the electronics and natural gas markets." "Moreover, the 200% increase in sales order back log, year-to-year, ensures us of a robust delivery schedule for the Third Quarter of 2013." "The acquisition of Orbital-UK and its recognized expertise in the natural gas industry, along with its team of professional engineers should only enhance the penetration into the market of our GasPT Technology; the recently acquired VE-Probe Technology; and our proprietary IRIS remote telemetry system – All-in-all, very exciting times for our company and its shareholders," Clough concluded. The Company will conduct a conference call and web cast to review the results on Thursday, August 15, 2013 at 11:00 a.m. ET. CUI Global, Inc. Second Quarter Results Conference Call Thursday, August 15, 2013 at 11:00 a.m. Eastern Dial in number: 877-407-8029 A simultaneous webcast will also be available via: http://www.investorcalendar.com/IC/CEPage.asp?ID=171427 In addition, a replay of the conference call will be archived and available until September 14, 2013 at the following number: 877-660-6853, conference ID: 418837. Condensed Consolidated Balance Sheets (unaudited) June 30, December 31, 2013 2012 (unaudited) Assets: Current Assets: Cash and cash equivalents $ $ 28,105,549 3,039,840 Trade accounts receivable, net of allowance of 8,932,614 4,965,926 $150,000 and $130,000, respectively Inventories, net of allowance of $603,634 and 6,169,021 4,843,905 $250,000, respectively Costs in excess of billings 260,072 - Prepaid expenses and other 1,070,934 378,885 Total current assets 44,538,190 13,228,556 Property and equipment, net 2,693,213 1,016,219 Other assets: Investment - equity method 254,118 258,244 Other Intangible assets, net 23,755,391 8,618,524 Deposits and other - 11,360 Notes receivable, net 485,416 501,422 Debt offering costs, net 6,111 42,778 Goodwill, net 18,174,366 13,046,358 Total other assets 42,675,402 22,478,686 Total assets $ $ 89,906,805 36,723,461 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ $ 4,522,990 2,496,881 Line of credit - 459,448 Leases payable, current 88,348 - Accrued expenses 2,219,296 1,140,743 Accrued compensation 581,909 186,636 Accrued taxes payable 672,901 2,096 Unearned revenue 676,397 371,541 Billings in excess of costs 5,854,993 - Total current liabilities 14,616,834 4,657,345 Leases payable, net of current portion 33,459 - Long term note payable, related party 5,303,683 7,303,683 Total long term liabilities 5,337,142 7,303,683 Total liabilities 19,953,976 11,961,028 Commitments and contingencies Stockholders' equity: Preferred stock, par value $0.001; 10,000,000 - - shares authorized Common stock, par value $0.001; 325,000,000 shares authorized; 20,564,163shares issued and outstanding at June 30, 2013 and 20,564 10,883 10,883,280 shares issued andoutstanding at December 31, 2012 Additional paid-in capital 146,368,848 100,947,708 Accumulated deficit (76,339,136) (76,171,822) Accumulated other comprehensive (loss) (97,447) (24,336) Total stockholders' equity 69,952,829 24,762,433 Total liabilities and stockholders' equity $ $ 89,906,805 36,723,461 See accompanying notes to unaudited condensed consolidated financial statements Condensed Consolidated Statements of Operations (unaudited) For the three months For the six months ended June 30, ended June 30, 2013 2012 2013 2012 Revenues: Product Sales $ 18,138,599 $ 9,996,133 $ 28,190,845 $ 18,459,939 Revenue from freight 12,492 15,625 19,606 21,582 Total revenue 18,151,091 10,011,758 28,210,451 18,481,521 Cost of revenues 11,085,366 6,209,955 17,132,971 11,395,134 Gross profit 7,065,725 3,801,803 11,077,480 7,086,387 Operating expenses Selling, general and 6,272,515 3,937,262 10,422,272 7,957,440 administrative Research and 198,775 176,301 443,465 354,490 development Bad debt 47,470 10,000 42,470 - Impairment of intangible, trademark - 278,428 - 278,428 and trade name V-Infinity Total operating 6,518,760 4,401,991 10,908,207 8,590,358 expenses Income (loss) from 546,965 (600,188) 169,273 (1,503,971) operations Other income (expense) Other income 56,057 9,735 117,295 34,881 Other expense (4,961) (3,481) (9,906) (3,696) Earnings (loss) from (6,229) 19,214 (4,126) 39,791 equity investment Amortization of debt (18,333) (18,334) (36,666) (36,667) offering costs Interest expense (86,979) (114,331) (201,453) (301,529) Total other income (60,445) (107,197) (134,856) (267,220) (expense), net Income (loss) before 486,520 (707,385) 34,417 (1,771,191) taxes Provision for taxes 191,742 7,500 201,731 15,456 Consolidated Net Income $ 294,778 $ (714,885) $ (167,314) $ (1,786,647) (loss) Basic income (loss) per $ 0.02 $ (0.07) $ (0.01) $ (0.19) common share Diluted income (loss) $ 0.02 $ (0.07) $ (0.01) $ (0.19) per common share Basic weighted average common shares 18,835,103 10,551,530 14,881,158 9,495,579 outstanding Diluted weighted average common and 18,843,674 10,551,530 14,889,630 9,495,579 common equivalents shares outstanding See accompanying notes to unaudited condensed consolidated financial statements Condensed Consolidated Statements of Cash Flows (unaudited) For the six months ended June 30, 2013 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ $ (167,314) (1,786,647) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Stock, options and notes issued for 295,541 616,547 compensation and services Non-cash interest expense, including 36,666 36,667 amortization of debt offering costs Earnings from Equity Investment 4,126 (39,791) Bad debt expense 42,470 - Amortization of intangibles 866,403 18,365 Inventory reserve 18,400 15,000 Impairment of intangible, trademark and - 278,428 trade name V-Infinity Depreciation 327,999 278,484 (Increase) decrease in assets: Trade accounts receivable 1,654,312 (66,621) Inventory (898,397) (895,013) Costs in excess of billings 90,871 - Prepaid expenses and other current assets (673,266) 247,567 Deposits and other assets 11,360 68,716 Increase (decrease) in liabilities: Accounts payable 456,307 413,235 Accrued expenses (1,514,443) 30,933 Accrued compensation 124,547 3,520 Accrued taxes payable (401,223) (71,011) Unearned revenue 259,539 100,543 Billings in excess of costs 68,803 - NET CASH PROVIDED BY (USED IN) OPERATING 602,701 (751,078) ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Cash paid upon acquisition, net of cash (17,709,507) - received Investment in patents (2,500) - Investment in other intangible assets - (39,940) Proceeds from Notes receivable 18,116 25,511 Purchase of property and equipment (442,086) (359,562) NET CASH (USED IN) INVESTING ACTIVITIES (18,135,977) (373,991) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from (payments to) demand notes (459,448) (1,528,900) payable, net of debt offering costs Payments on leases payable (3,736) - Payments on notes and loans payable - (4,000,000) Payments on notes payable, related party (2,000,000) (3,000,000) Payments on convertible note payable, - (35,000) related party Proceeds from sales of common stock, and exercise of warrants and options, net of 45,135,280 12,723,515 offeringcosts NET CASH PROVIDED BY FINANCING ACTIVITIES 42,672,096 4,159,615 EFFECT OF EXCHANGE RATE CHANGES ON CASH (73,111) (20,548) Cash and cash equivalents at beginning of 3,039,840 176,775 year Cash and cash equivalents at end of period 28,105,549 3,190,773 NET INCREASE IN CASH AND CASH EQUIVALENTS $ $ 25,065,709 3,013,998 About CUI Global, Inc. Delivering Innovative Technologies for an Interconnected World.... CUI Global, Inc. is a publicly traded company dedicated to maximizing shareholder value through the acquisition and development of innovative companies, products and technologies. From Orbital Gas Systems' advanced GasPT2 platform targeting the energy sector, to CUI Inc's digital power platform serving the networking and telecom space, CUI Global and its subsidiaries have built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. But most importantly, a commitment to conduct business with a high level of integrity, respect, and philanthropic dedication allows the organization to make a difference in the lives of their customers, employees, investors and global community. For more information please visit www.cuiglobal.com About CUI Inc CUI Inc is a technology company dedicated to the development, commercialization, and distribution of new, innovative electro-mechanical products. Over the past 20 years, CUI has become a recognized name in electronic components worldwide in the areas of power, interconnect, motion control, and sound. CUI's solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly owned subsidiary of CUI Global, Inc. For more information, please visit www.cui.com. About Orbital Gas Systems Ltd. Orbital Gas Systems Ltd ("Orbital-UK") is the largest natural gas systems integrator in the United Kingdom. For over 25 years, Orbital-UK has developed its portfolio of products, services and resources to offer a diverse range of personalized gas engineering solutions to the gas utilities, power generation, emissions, manufacturing and automotive industries. Orbital-UK's internationally recognized expertise in the natural gas industry, including bringing together the patented VE-technologywith the ground-breaking GasPTi device, offers natural gas operators and users a comprehensive engineering array for the next generation of energy metering systems. Orbital-UK is a wholly owned subsidiary of CUI Global, Inc. For more information, please visit www.orbital-uk.com. Important Cautions Regarding Forward Looking Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission. Reconciliation of Non-GAAP Financial Measures EBITDA is a non-GAAP financial measure and is reconciled in the table below. EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA excludes components that are significant in understanding and assessing the company's results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. However, EBITDA is used by management to evaluate, assess and benchmark the company's operational results and the company believes EBITDA is relevant and useful information which is often reported and widely used by analysts, investors and other interested parties in the company's industry. Accordingly, the company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the company's ability to meet future debt service, capital expenditure and working capital requirements. Unaudited For the three months ended, For the six months ended, June 30, June 30, June 30, June 30, 2013 2012 2013 2012 Net Income (loss) $ $ $ $ 294,778 (714,885) (167,314) (1,786,647) Plus: Interest expense - amortization of 18,333 18,334 36,666 36,667 debt offering costs Plus: 86,979 114,331 201,453 301,529 Interest expense Plus: Depreciation and 983,266 155,810 1,194,402 296,849 amortization Plus: Provision for 191,742 7,500 201,731 15,456 taxes EBITDA $ $ $ $ 1,575,098 (418,910) 1,466,938 (1,136,146) Basic EBITDA per $ $ $ $ common share 0.08 (0.04) 0.10 (0.12) Diluted EBITDA per $ $ $ $ common share 0.08 (0.04) 0.10 (0.12) Basic weighted average common 18,835,103 10,551,530 14,881,158 9,495,579 shares outstanding Diluted weighted average common and common 18,843,674 10,551,530 14,889,630 9,495,579 equivalents shares outstanding SOURCE CUI Global, Inc. Website: http://www.cuiglobal.com/ Contact: Company Contact: CUI Global, Inc., Media Contact: Maggie Lefor, Main: 503-612-2300, email@example.com; Investor Relations: CUI Global, Inc., firstname.lastname@example.org; Outside IR contact: BPC Financial Marketing, John Baldissera, 800-368-1217
CUI Global Reports Unaudited Consolidated (Second Quarter 2013) Revenue of $18,151,091
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