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Insignia Systems, Inc. Announces a Profitable Third Quarter

  Insignia Systems, Inc. Announces a Profitable Third Quarter

Business Wire

MINNEAPOLIS -- October 30, 2013

Insignia Systems, Inc. (Nasdaq: ISIG) today reported the following results for
the three and nine months ended September 30, 2013, as compared to the three
and nine months ended September 30, 2012.

                              Three months  Three months   
                               ended          ended            % increase
                               9/30/2013      9/30/2012        (decrease)
                                                                        
POPS revenue                   $ 6,927,000    $ 5,710,000      21.3     %
Products revenue                393,000       364,000       8.0      %
Total net sales                  7,320,000      6,074,000      20.5     %
                                                                        
Operating income               $ 544,000      $ 476,000
                                                                        
Net income                     $ 354,000      $ 380,000
                                                                        
Net income per share:
Basic                          $ 0.03         $ 0.03
Diluted                        $ 0.03         $ 0.03
                                                                        
                               Nine months    Nine months
                               ended          ended            % increase
                               9/30/2013      9/30/2012        (decrease)
                                                                        
POPS revenue                   $ 19,642,000   $ 13,489,000     45.6     %
Products revenue                1,207,000     1,355,000     (10.9  ) %
Total net sales                  20,849,000     14,844,000     40.5     %
                                                                        
Operating income (loss)        $ 1,689,000    $ (2,492,000 )
                                                                        
Net income (loss)              $ 938,000      $ (1,693,000 )
                                                                        
Net income (loss) per share:
Basic                          $ 0.07         $ (0.12      )
Diluted                        $ 0.07         $ (0.12      )
                                                                        

CEO Glen Dall commented, “I am pleased with our results this quarter and
through the first nine months of 2013. The investments we made in sales and
technology are beginning to pay out, as can be seen with our 40% growth in
year-to-date sales as compared to 2012, and the improvement in gross margin
accompanying those higher sales. We believe the results of the Company’s
tender offer, while resulting in the tender of fewer shares than we had
anticipated, demonstrate that our shareholders support the Company and share
our optimism for about the future. Our reconstituted board is supportive of
our initiatives and providing valuable leadership as we move into the next
phase of our Company’s transformation.”

Mr. Dall continued, “Our relationships with News America and Valassis continue
to be productive. Fourth quarter bookings are approximately $5.8 million with
three weeks left to sell. We continue to maintain sales focus to help our
Company be profitable in the fourth quarter and complete a very successful
year. While we do not expect to achieve the high growth rate next year that we
have seen in 2013, we will continue to place resources on developing future
products and strategies to provide necessary diversification in our product
offerings.”

Selected Financial Information

CFO John Gonsior stated, “Our balance sheet remains strong, with over $21.4
million in working capital, versus $21.8 million at December 31, 2012. As of
September 30, 2013, we had cash and cash equivalents balances of $20.7
million, versus $20.3 million at December 31, 2012. Gross profit has continued
its positive trend, staying above 45% for both the three and nine months ended
September 30, 2013. Additionally, given the large increase in sales, combined
with fourth quarter bookings, certain performance-based compensation accruals
were triggered in the third quarter, which increased our expenses.”

Conference Call

The Company will host a conference call today, October 30, at 4:00 p.m.
Central Time. To access the live call, dial 877-268-1608. The Conference ID is
98094181. 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 November 6, 2013. To access the replay, dial 855-859-2056
and reference Conference ID 98094181.

About Insignia System, Inc.

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 inspires shoppers and delivers value by providing 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 or the subsequent conference call 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
President and CEO Glen Dall or its Vice President of Finance and CFO John
Gonsior, regarding, for instance: current expectations as to future financial
performance (including but not limited to bookings for the fourth fiscal
quarter of 2013 and results for fiscal year 2013); our ability to continue
revenue growth, 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; continued success in our
business relationships with News America and Valassis; our ability to develop
and successfully implement new products to diversify our business 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, including our ability to gain
retailer acceptance of new product offerings; (iii) the unexpected loss of a
major consumer packaged goods manufacturer relationship or retailer agreement
or termination 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            Nine Months Ended
                   September 30,                 September 30,
                   2013          2012           2013          2012
                                                                  
Net sales          $ 7,320,000    $ 6,074,000    $ 20,849,000   $ 14,844,000
Cost of sales        4,000,000      3,514,000      11,452,000     9,890,000  
Gross profit         3,320,000      2,560,000      9,397,000      4,954,000
Operating
expenses:
Selling              1,586,000      1,097,000      4,138,000      3,871,000
Marketing            220,000        230,000        649,000        919,000
General and          970,000        757,000        2,921,000      2,656,000  
administrative
                                                                  
Operating income     544,000        476,000        1,689,000      (2,492,000 )
(loss)
Other income,        6,000          6,000          20,000         20,000     
net
                                                                  
Income (loss)        550,000        482,000        1,709,000      (2,472,000 )
before taxes
Income tax
expense              196,000        102,000        771,000        (779,000   )
(benefit)
                                                                  
Net income         $ 354,000      $ 380,000      $ 938,000      $ (1,693,000 )
(loss)
                                                                  
Net income
(loss) per
share:
Basic              $ 0.03         $ 0.03         $ 0.07         $ (0.12      )
Diluted            $ 0.03         $ 0.03         $ 0.07         $ (0.12      )
                                                                  
Shares used in
calculation of
net income
(loss) per
share:
Basic                13,230,000     13,602,000     13,515,000     13,605,000
Diluted              13,370,000     13,603,000     13,581,000     13,605,000
                                                                  

SELECTED BALANCE SHEET DATA
                                         
                            (Unaudited)
                            September 30,   December 31,
                            2013           2012
                                              
Cash and cash equivalents   $  20,735,000   $ 20,271,000
Working capital                21,434,000     21,791,000
Total assets                   31,907,000     31,706,000
Total liabilities              6,389,000      5,211,000
Shareholders' equity           25,518,000     26,495,000

Contact:

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