Perceptron Announces Strong Fourth Quarter Financial Results and Record Fiscal 2013 Sales

Perceptron Announces Strong Fourth Quarter Financial Results and Record Fiscal 
2013 Sales 
PLYMOUTH, MI -- (Marketwired) -- 08/28/13 --  Perceptron, Inc.
(NASDAQ: PRCP) today announced its results for the fourth quarter of
fiscal year 2013, which ended June 30, 2013.  
Net sales in the fourth quarter of fiscal year 2013 were $20.7
million, while income from continuing operations was $4.0 million, or
$0.46 per diluted share. In the fourth quarter of fiscal 2012,
Perceptron reported net sales of $12.8 million and a loss from
continuing operations of $1.3 million, or $0.16 per diluted share. In
the fourth quarter of fiscal year 2013 the Company recorded a gain of
$23,000, net of taxes, from the discontinued operations of its
Commercial Products Business Unit (CBU). In fiscal year 2012 the
Company recorded a loss of $1.3 million, or $0.15 per diluted share,
from the discontinued operations of CBU. Net income for the fourth
quarter was $4.0 million, or $0.46 per diluted share, compared to a
net loss of $2.6 million, or $0.31 per diluted share in the fourth
quarter of fiscal year 2012. The net loss in the fourth quarter of
fiscal 2012 included an income tax expense of $1.2 million for the
establishment of a valuation reserve for the Company's deferred tax
assets.  
For the full fiscal year 2013, net sales were $60.9 million and
income from continuing operations was $6.1 million, or $0.71 per
diluted share. This compares with net sales of $57.4 million and
income from continuing operations of $2.8 million, or $0.34 per
diluted share, in fiscal year 2012. In fiscal year 2013, the Company
recorded a gain of $80,000, net of taxes, or $0.01 per diluted share,
from the discontinued operations of CBU. In fiscal year 2012, the
Company recorded a loss of $3.2 million, net of taxes, or a loss of
$0.38 per diluted share, from the settlement of a lawsuit against the
Company's former Forest Products Business Unit and from the
discontinued operations of CBU. Net income in fiscal 2013 was $6.2
million, or $0.72 per diluted share, compared to a net loss of
$333,000, or $0.04 per diluted share, in fiscal 2012.  
"We are particularly pleased with our sales, gross margin and
operating income in the fourth quarter this year," said Jack Lowry,
Perceptron's Ch
ief Financial Officer. "Sales of $20.7 million
represented a very strong quarter for the Company. Not only was our
gross margin very solid at 48.1%, but our operating income for the
quarter represented 18% of sales. Other income/expense in the fourth
quarter included approximately a $1.1 million gain we recorded from
the June redemption, at par, of one of our preferred stock holdings
upon which we had recorded an impairment charge in fiscal year 2009.
That gain was partially offset by a $240,000 foreign exchange loss in
the quarter, principally due to weakness in the Brazilian Real and
Japanese Yen. Net income of $4.0 million represented 19.3% of sales." 
Mr. Lowry continued, "Bookings of $21.4 million in the fourth quarter
this year were very robust and approximately $700,000 above our sales
in the quarter, resulting in our backlog increasing to $30.4 million
at June 30, 2013. That compares favorably with our backlog of $30.2
million at June 30, 2012 and provides us with a solid book of
business as we enter fiscal year 2014. For the full year of fiscal
2013, we achieved record sales for our continuing operations and both
our gross margin and operating margin percentages improved. Our
fiscal year ending balance sheet is very strong, with $26.7 million
in cash and short-term investments, no debt, and book value of $6.60
per share based on 8,618,872 total shares outstanding on June 30,
2013. 
"While our sales were at a record level of $60.9 million for the
year, it is also significant that our bookings exceeded our sales.
Our fiscal year 2013 sales and bookings were particularly strong in
Europe which posted significant year-over-year increases. This
resulted primarily from significantly higher bookings and sales of
automated systems products in fiscal 2013 compared to fiscal 2012
that were partially offset by a decline in sales of technology
components products and value added services. Sales and bookings in
Asia were fairly flat but are expected to show improvement in fiscal
2014. Sales and bookings declined in the Americas following a strong
rebound in fiscal year 2012 from the significant downturn that
occurred in our fiscal years 2009 and 2010. Sales in the Americas are
expected to stabilize while bookings are expected to improve in
fiscal year 2014."  
Harry Rittenour, President and Chief Executive Officer, added,
"Fiscal 2013 was a very good year for the Company and its
shareholders in a number of ways. From a financial perspective, our
continuing business exceeded $60 million in sales for the first time,
our gross margin improved, and our operating income improved both in
total dollars and as a percent of sales. Our bookings were higher
than our sales during fiscal 2013, positioning us to enter fiscal
2014 with a strong backlog. In addition, we paid a special dividend
and our first annual dividend to shareholders which contributed to
our total return to shareholders significantly exceeding the overall
market return. We successfully sold CBU. Further, our strategy in
holding our Primus preferred stock paid off in a full redemption of
that investment.  
"Operationally, we recently completed the release of all five
standoffs in the Helix(R) family of sensors. The release of the
additional sensors will increase the opportunities and the scope of
customer applications we can address using our Helix technology.
Sales and bookings utilizing Helix technology in fiscal year 2013 met
our expectations and are ramping-up well. In the fourth quarter,
approximately 19% of our bookings and 11% of our sales were from
projects utilizing Helix technology." 
Highlights of Operations 
Geographic information on sales, bookings and backlog for the Company
from continuing operations in fiscal years 2013 and 2012 are shown in
the tables that follow: 


 
                                                                          
SALES                                                                     
(in millions)                                                             
                       Fourth Quarter Ended        Twelve months Ended    
                              June 30                    June 30          
                     Fiscal   Fiscal            Fiscal   Fiscal           
                      2013     2012    Change    2013     2012    Change  
                    -------- -------- -------- -------- -------- -------- 
Geographic Region                                                         
Americas            $    6.4 $    6.4 $    0.0 $   22.2 $   26.3 $   (4.1)
Europe                   8.8      3.7      5.1     26.1     18.4      7.7 
Asia                     5.5      2.8      2.7     12.6     12.7     (0.1)
                    -------- -------- -------- -------- -------- -------- 
Total Sales         $   20.7 $   12.9 $    7.8 $   60.9 $   57.4 $    3.5 
                    ======== ======== ======== ======== ======== ======== 
                                                                            
                                                                            
                                                                            
BOOKINGS                                                                    
(in millions)                                                               
                        Fourth Quarter Ended         Twelve months Ended    
                               June 30                     June 30          
                      Fiscal   Fiscal             Fiscal   Fiscal           
                       2013     2012    Change     2013     2012    Change  
                     -------- -------- --------  -------- -------- -------- 
Geographic Region                                                           
Americas             $    5.6 $    6.1 $   (0.5) $   18.2 $   30.8 $  (12.6)
Europe                   12.0      2.8      9.2      29.3     19.7      9.6 
Asia                      3.8      2.3      1.5      13.6     13.2      0.4 
                     -------- -------- --------  -------- -------- -------- 
Total Bookings       $   21.4 $   11.2 $   10.2  $   61.1 $   63.7 $   (2.6)
                     ======== ======== ========  ======== ======== ======== 

 
Note: the level of new order bookings fluctuates from quarter to
quarter and is not necessarily indicative of the future operating
performance of the Company.  


 
                                                                    
BACKLOG                                                             
(in millions)                                                       
                                 Fourth Quarter Ended June 30       
                            Fiscal 2013   Fiscal 2012     Change    
                           ------------  ------------  ------------ 
Geographic Region                                                   
Americas                   $        8.2  $       12.2  $       (4.0)
Europe                             13.1           9.9           3.2 
Asia                                9.1           8.1           1.0 
                           ------------  ------------  ------------ 
Total Backlog              $       30.4  $       30.2  $        0.2 
                           ============  ============  ============ 

 
Note: the level of backlog at any particular point in time is not
necessarily indicative of the future operating performance of the
Company.  
Financial Outlook 
Harry Rittenour commented, "We remain confident in our outlook for
continued sales growth in fiscal 2014. Independent industry forecasts
continue to show that worldwide automotive sales and new model
introductions will continue to grow in each of the next two to three
years. This provides us with a good environment in which to sell our
products to automobile manufacturers around the world. Historically
we have experienced volatility in our quarterly sales with the first
quarter of the fiscal year generally being the softest. We anticipate
that the first quarter will be our softest quarter in fiscal year
2014. We continue to expect our Helix technology to become a more
significant portion of our product portfolio in fiscal year 2014 and
provide us with more in-line dimensional gauging opportunities and
capabilities than in the past. This should also help us to maintain,
or improve, our gross profit margins. As a result, we anticipate
another year of profitable growth for the Company." 
Quarterly Earnings Call and Webcast 
Perceptron, Inc. will hold its fourth quarter earnings conference
call/webcast, chaired by Harry T. Rittenour, President and Chief
Executive Officer, on Thursday, August 29, 2013 at 10:00 AM (EDT).
Investors can access the call at: 
Webcast 
 http://www.visualwebcaster.com/event.asp?id=95718  
Conference Call 
 888 505-4369 (domestic callers)
 719 325-2495
(international callers) 
Conference ID 
 7922528 
If you are unable to participate during the live webcast, the call
will be digitally rebroadcast for seven days, beginning at 2:00 PM
(EDT) on Thursday, August 29, 2013. 
Rebroadcast 
 888 203-1112 (domestic callers)
 719 457-0820
(international callers)  
Passcode 
 7922528 
A replay of the call will also be available on the Company's website
at www.perceptron.com for approximately one year following the call. 
About Perceptron(R) 
 Perceptron develops, produces, and sells
non-contact measurement and inspection solutions for industrial
applications. The Company's products provide solutions for
manufacturing process control as well as sensor and software
technologies for non-contact measurement, scanning, and inspection
applications. Automotive and manufacturing companies throughout the
world rely on Perceptron's metrology solutions to help them manage
their complex manufacturing processes to improve quality, shorten
product launch times and reduce overall manufacturing costs. The
Company also offers Value Added Services such as training and
customer support services. Headquartered in Plymouth, Michigan,
Perceptron has approximately 235 employees worldwide, with operations
in the United States, Germany, France, Spain, Brazil, Japan,
Singapore, China and India. For more information, please visit
www.perceptron.com. 
Safe Harbor Statement 
 Certain statements in this press release may
be "forward-looking statements" within the meaning of the Securities
Exchange Act of 1934, including the Company's expectation as to its
fiscal year 2014 and future new order bookings, revenue, expenses,
income and backlog levels, future dividend payments, trends affecting
its future revenue levels, the rate of new orders, the timing of
revenue and income from new products which we have recently released
or have not yet released, and the timing of the introduction of new
products. When we use words such as "will," "should," "believes,"
"expects," "anticipates," "estimates" or similar expressions, we are
making forward-looking statements. We claim the protection of the
safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 for all of our
forward-looking statements. While we believe that our forward-looking
statements are reasonable, you should not place undue reliance on any
such forward-looking statements, which speak only as of the date
made. Because these forward-looking statements are based on estimates
and assumptions that are subject to significant business, economic
and competitive uncertainties, many of which are beyond our control
or are subject to change, actual results could be materially
different. Factors that might cause such a difference include,
without limitation, the risks and uncertainties discussed from time
to time in our reports filed with the Securities and Exchange
Commission, including those listed in "Item 1A - Risk Factors" of the
Company's Annual Report on Form 10-K for fiscal 2012. Other factors
not currently anticipated by management may also materially and
adversely affect our financial condition, liquidity or results of
operations. Except as required by applicable law, we do not
undertake, and expressly disclaim, any obligation to publicly update
or alter our statements whether as a result of new information,
events or circumstances occurring after the date of this report or
otherwise. The Company's expectations regarding future bookings and
revenues are projections developed by the Company based upon
information from a number of sources, including, but not limited to,
customer data and discussions. These projections are subject to
change based upon a wide variety of factors, a number of which are
discussed above. Certain of these new orders have been delayed in the
past and could be delayed in the future. Because the Company's
products are typically integrated into larger systems or lines, the
timing of new orders is dependent on the timing of completion of the
overall system or line. In addition, because the Company's products
have shorter lead times than other components and are required later
in the process, orders for the Company's products tend to be issued
later in the integration process. A significant portion of the
Company's projected revenues and net income depends upon the
Company's ability to successfully develop and introduce new products,
expand into new geographic markets and successfully negotiate new
sales or supply agreements with new customers. Because a significant
portion of the Company's revenues are denominated in foreign
curre
ncies and are translated for financial reporting purposes into
U.S. Dollars, the level of the Company's reported net sales,
operating profits and net income are affected by changes in currency
exchange rates, principally between the U.S. Dollar and Euro.
Currency exchange rates are subject to significant fluctuations, due
to a number of factors beyond the control of the Company, including
general economic conditions in the United States and other countries.
Because the Company's expectations regarding future revenues, order
bookings, backlog and operating results are based upon assumptions as
to the levels of such currency exchange rates, actual results could
differ materially from the Company's expectations. 


 
                                                                            
                              PERCEPTRON, INC.                              
                          SELECTED FINANCIAL DATA                           
                  (In Thousands Except Per Share Amounts)                   
                                                                            
                                  Three Months Ended    Twelve Months Ended 
Condensed Income Statements            June 30,              June 30,       
                                    2013       2012       2013       2012   
                                 ---------  ---------  ---------  --------- 
Net Sales                        $  20,744  $  12,826  $  60,886  $  57,379 
Cost of Sales                       10,765      8,692     32,766     33,209 
                                 ---------  ---------  ---------  --------- 
    Gross Profit                     9,979      4,134     28,120     24,170 
Operating Expenses                                                          
Selling, General and                                                        
 Administrative Expense              4,241      3,084     14,473     12,983 
Engineering, Research and                                                   
 Development Expense                 1,995      1,545      6,781      5,591 
                                 ---------  ---------  ---------  --------- 
    Operating Income/(Loss)          3,743       (495)     6,866      5,596 
Other Income and Expense                                                    
Interest Income, net                    47         57        173        245 
Reversal of Impairment               1,134          -      1,134          - 
Foreign Currency and Other                                                  
 Income/(Expense)                     (240)       (95)      (642)      (466)
                                 ---------  ---------  ---------  --------- 
Income/(Loss) from Continuing                                               
 Operations Before Income Taxes      4,684       (533)     7,531      5,375 
Income Tax Expense                    (703)      (795)    (1,401)    (2,548)
                                 ---------  ---------  ---------  --------- 
Income/(Loss) from Continuing                                               
 Operations                          3,981     (1,328)     6,130      2,827 
                                 ---------  ---------  ---------  --------- 
Discontinued Operations                                                     
  Litigation Settlement from                                                
   Forest Products Business Unit                                            
   (net of $520 of tax benefits)         -          -          -     (1,009)
  Commercial Products Business                                              
   Unit (net of $12 and $41 of                                              
   tax expense in fiscal 2013,                                              
   respectively, and $665 and                                               
   $1,104 of tax benefits in                                                
   fiscal 2012, respectively)           23     (1,292)        80     (2,151)
                                 ---------  ---------  ---------  --------- 
                                                                            
Net Income/(Loss)                $   4,004  $  (2,620) $   6,210  $    (333)
                                 =========  =========  =========  ========= 
                                                                            
Basic Earnings/(Loss) Per Common                                            
 Share                                                                      
    Continuing operations        $    0.46  $   (0.16) $    0.72  $    0.34 
    Discontinued operations           0.00      (0.15)      0.01      (0.38)
                                 ---------  ---------  ---------  --------- 
    Net Income/(Loss)            $    0.46  $   (0.31) $    0.73  $   (0.04)
                                 =========  =========  =========  ========= 
                                                                            
Diluted Earnings/(Loss) Per                                                 
 Common Share                                                               
    Continuing operations        $    0.46  $   (0.16) $    0.71  $    0.34 
    Discontinued operations           0.00      (0.15)      0.01      (0.38)
                                 ---------  ---------  ---------  --------- 
    Net Income/(Loss)            $    0.46  $   (0.31) $    0.72  $   (0.04)
                                 =========  =========  =========  ========= 
                                                                            
Weighted Average Common Shares                                              
 Outstanding                                                                
    Basic                            8,583      8,398      8,512      8,433 
    Diluted                          8,682      8,398      8,588      8,433 
                                                                            
                                                                            
                                                                            
                              PERCEPTRON, INC.                              
                           SELECTED FINANCIAL DATA                          
                               (In Thousands)                               
                                                                            
Condensed Balance Sheets                       June 30, 2013   June 30, 2012
                                                                            
Cash and Cash Equivalents                      $      13,364   $      12,984
Short-term Investments                                13,321          11,227
Receivables, net                                      22,266          15,982
Inventories, net                                       6,783           5,396
Assets of Discontinued Operations                          -           1,365
Other Current Assets                                   2,810           3,519
                                               -------------   -------------
  Total Current Assets                                58,544          50,473
                                                                            
Property and Equipment, net                            5,578           5,497
Long-term Investments                                    725           2,192
Deferred Tax Asset                                     9,298           8,647
                                               -------------   -------------
  Total Non-Current Assets                            15,601          16,336
                                                                            
                                               -------------   -------------
    Total Assets                               $      74,145   $      66,809
                                               =============   =============
                                                                            
Accounts Payable                               $       2,561   $       1,519
Deferred Revenue                                       6,496           7,812
Liabilities of Discontinued Operations                     -           1,443
Other Current Liabilities                              8,193           3,776
                                               -------------   -------------
  Total Current Liabilities                           17,250          14,550
Shareholders' Equity                                  56,895          52,259
                                               -------------   -------------
  Total Liabilities and Shareholders' Equity   $      74,145   $      66,809
                                               =============   =============

  
Contact: 
Jack Lowry
Vice President of Finance and CFO
734 414-6100 
 
 
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