Sevcon Reports Financial Results for Fourth Quarter and Year End Fiscal 2013
SOUTHBOROUGH, Mass., Dec. 10, 2013 (GLOBE NEWSWIRE) -- Sevcon, Inc.
(Nasdaq:SEV) reported financial results for the fourth quarter and fiscal year
ended September 30, 2013.
Fourth-Quarter Fiscal 2013 Results Summary
*Revenues were $8.9 million, compared with $8.0 million in the fourth
quarter of fiscal 2012, which reflects improving conditions in the
*Operating income was $407,000, compared with $518,000 in the fourth
quarter last year which included a benefit of $794,000 from freezing the
Company's U.K. pension plan, partially offset by a charge of $285,000
related to obsolete inventory. Excluding these two items, operating income
for the fourth quarter of fiscal 2012 was $9,000.
*There was an income tax provision of $307,000 in the fourth quarter after
recording a tax charge of $444,000 to write down the value of deferred tax
assets in the Company's U.K. controls subsidiary due to a reduction in the
U.K. corporate tax rate. This compared with an income tax provision of
$253,000 in the same period last year.
*Net income was $45,000, or $0.01 per diluted share, compared with net
income of $285,000, or $0.08 per diluted share, a year earlier. Excluding
the deferred tax write-down in 2013 and the pension benefit and inventory
write-down in 2012, net income was $489,000 in the fourth quarter of 2013
compared with a net loss of $107,000 in the same period last year.
Full-Year Fiscal 2013 Results Summary
*Revenues were $32.2 million, compared with $35.5 million for full-year
fiscal 2012. This decline reflected product demand fluctuations in most of
the Company's markets, which were most pronounced in the fourth quarter of
fiscal 2012 and first quarter of fiscal 2013.
*Operating loss was $948,000, which includes a $605,000 restructuring
charge in the second quarter of fiscal 2013, compared with operating
income of $1.5 million, which included $200,000 in U.K. government grant
income and a benefit of $794,000 from freezing the Company's U.K. pension
plan for full-year fiscal 2012.
*There was an income tax benefit of $392,000 after recording a tax charge
of $444,000 to write down the value of deferred tax assets in the
Company's U.K. controls subsidiary due to a reduction in the U.K.
corporate tax rate. This compared with an income tax provision of $401,000
in the prior year.
*Net loss was $1.1 million, a loss of $0.32 per share, compared with net
income of $1.2 million, or $0.35 per diluted share, for full-year fiscal
2012. Excluding the deferred tax write-down in 2013 and the pension
benefit and inventory write-down in 2012, there was a net loss of $627,000
in 2013 compared with net income of $803,000 in 2012.
"Sevcon's fourth-quarter growth was mainly the result of increases in
shipments to customers in the global aerial work platform market," said
President and CEO Matt Boyle. "The underlying demand patterns have improved
over the past three quarters, with increased demand in the U.S and relative
strength in Asia. The key difference this quarter compared to the same quarter
in fiscal 2012 was in Europe, where the recent pattern reversed and sales were
up significantly year-over-year.
"In our traditional off-road markets, the ongoing improvement in the global
aerial work platform market continued to be offset primarily by weakness in
the mining sector," Boyle said. "In the on-road sector, revenues were higher
in Europe. At the same time, we are seeing strong interest in using our
control technology for hybrid electric vehicles. We are also continuing to
make good progress in penetrating the overall two-wheel EV market on a global
basis, and Q4 was another quarter of solid growth in shipments of controllers
to OEM and Tier 1 suppliers to the scooter and motorcycle markets in Europe,
Asia and North America.
"Looking forward, we believe there is far greater stability in our markets
than at this point a year ago," continued Boyle. "While there is still some
volatility, we are encouraged by what we are hearing from customers in both
the off-road and on-road segments of the market. The restructuring initiatives
that we implemented midway through fiscal 2013 are delivering the $2 million
of annualized operating cost reduction that we had anticipated. With a lower
cost structure and conservative balance sheet, we believe that Sevcon is
well-positioned for growth and improved profitability as fiscal 2014 unfolds."
Fourth Quarter Fiscal 2013 Conference Call Details
Sevcon has scheduled a conference call to review its results for the fourth
quarter and fiscal 2013 tomorrow, December 11, 2013 at 9:00 a.m. ET. Those who
wish to listen to the conference call webcast should visit the Investor
Relations section of the company's website at www.sevcon.com. The live call
also can be accessed by dialing (877) 407-5790 or (201) 689-8328 prior to the
start of the call. If you are unable to listen to the live call, the webcast
will be archived on the company's website.
Fourth Quarter Fiscal 2013 Financial Highlights
(In thousands except per share data)
Three months ended Twelve months ended
September 30 September 30 September 30 September 30
2013 2012 2013 2012
Revenues $8,871 $8,021 $32,203 $35,515
Operating income (loss) 407 518 (948) 1,500
Income (loss) before 352 538 (1,463) 1,596
Income taxes (provision) (307) (253) 392 (401)
Net income (loss) $45 $285 $(1,071) $1,195
Basic income (loss) per $0.01 $0.09 $(0.32) $0.36
Diluted income (loss) per $0.01 $0.08 $(0.32) $0.35
Average shares outstanding 3,362 3,331 3,357 3,329
Summarized Balance Sheet Data
September 30 September 30
Cash and cash equivalents $2,062 $2,823
Receivables 7,103 5,858
Inventories 5,723 6,346
Prepaid expenses and other current assets 1,862 1,922
Total current assets 16,750 16,949
Long-term assets 6,610 6,612
Total assets $23,360 $23,561
Current liabilities $6,060 $5,044
Liability for pension benefits 8,354 10,264
Other long-term liabilities 1,728 1,774
Stockholders' equity 7,218 6,479
Total liabilities and stockholders' equity $23,360 $23,561
About Sevcon, Inc.
Sevcon is a world leader in the design and manufacture of microprocessor based
controls for zero emission electric and hybrid vehicles. The controls are used
to vary the speed and movement of vehicles, to integrate specialized functions
and to optimize the energy consumption of the vehicle's power source. The
Company supplies customers throughout the world from its operations in the
USA, the U.K., France and the Asia Pacific region and through an international
dealer network. Sevcon's customers are manufacturers of on and off-road
vehicles including cars, trucks, buses, motorcycles, fork lift trucks, aerial
lifts, mining vehicles, airport tractors, sweepers and other electrically
powered vehicles. For more information visit www.sevcon.com.
Statements in this release about Sevcon's prospects for fiscal 2014 and beyond
are forward-looking statements subject to risks and uncertainties that could
cause actual results to differ materially from those we anticipate. In
particular: global demand for electric vehicles may not grow as much as we
expect; our customers' products may not be as successful as those of other
entrants in the electric vehicle market who are supplied by our competitors;
and we are dependent on a few key suppliers and subcontractors for most
components, sub-assemblies and finished products, and we may not be able to
establish alternative sources of supply in time if supplies are
interrupted.Please see the Company's most recent forms 10-K and 10-Q on file
with the SEC for further information regarding Sevcon's risk factors.
CONTACT: David Calusdian
Sharon Merrill Associates
1 (617) 542 5300
President and CEO
1 (508) 281 5503
Sevcon, Inc. Logo
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