Ultralife Corporation Reports Fourth Quarter Results

Ultralife Corporation Reports Fourth Quarter Results  NEWARK, N.Y., Feb. 13, 2014 (GLOBE NEWSWIRE) -- Ultralife Corporation (Nasdaq:ULBI) reported operating income from continuing operations of $0.2 million on revenue of $20.2 million for the quarter ended December 31, 2013. For the fourth quarter of 2012, the company reported operating income from continuing operations of $2.4 million on revenue of $29.3 million.  "The fourth quarter closed a year during which the slowdown in global defense-related spending and decision-making dominated our top line comparables. During 2013, we right-sized the business model and stabilized quarterly revenues for our Battery & Energy Products business which compensated for weak Communication Systems' sales such that we delivered a modest operating loss for the year, in line with our guidance," said Michael D. Popielec.  "As we enter 2014, we are starting to realize initial returns on the investments we made in new product development over the past two years, particularly in the areas of portable power, medical carts and integrated communications systems. With the maturation of our new products, we expect to gain further customer acceptance during the year and generate top-line growth. This growth, along with deeply-rooted productivity gains and improved liquidity, will enable us to fully leverage our highly-efficient business model," concluded Popielec.  Fourth Quarter 2013 Financial Results  Revenue was $20.2 million, compared to $29.3 million for the fourth quarter of 2012, a 31% decline. Battery & Energy Products sales were $15.9 million, compared to $18.8 million last year, a 16% decline, reflecting last year's fulfillment of a large order to an allied country's department of defense and the slowdown in the government and defense order rate for rechargeable and non-rechargeable batteries. Communications Systems sales were $4.3 million, compared to $10.4 million for the same period last year, a decrease of $6.1 million. Prior year Communications Systems' sales benefited from the fulfillment of several large orders for amplifiers from international defense customers.  Gross profit was $5.6 million, or 27.7% of revenue, compared to $9.5 million, or 32.3% of revenue, for the same quarter a year ago, a decrease of 460 basis points, primarily attributable to a lower mix of Communication Systems sales. Battery & Energy Products' gross margin was 26.1%, compared to 27.0% last year, a 90 basis point decrease reflecting lower sales volume and a less favorable product mix. Communications Systems' gross margin was 33.5%, compared to 41.9% last year, a decrease of 840 basis points also reflecting the impact of lower sales volume on production and the product mix.  Operating expenses declined $1.7 million, or 24%, to $5.4 million, compared to $7.1 million a year ago, primarily due to reductions in general and administrative expense and continued focus on controlling discretionary spending. As a percent of revenue, operating expenses were 26.6%, compared to 24.3% a year ago.  Operating profit was $0.2 million, compared to $2.4 million for the same period in 2012, reflecting lower gross profit offset by operating expense reductions. Operating margin was 1.1%, compared to 8.0% for the year-earlier period.  Net income from continuing operations was $0.1 million, or $0.01 per share, compared to net income of $2.1 million, or $0.12 per share, for the fourth quarter of 2012.  Outlook  For 2014, management expects mid-single digit organic revenue growth, despite continued constraints on global government spending. Based on this outlook for revenue growth and the improvements made to the business model in 2013, management expects to increase operating profit for the year and generate a mid-single digit operating margin.  Management cautions that the timing of orders and shipments may cause variability in quarterly results.  About Ultralife Corporation  Ultralife Corporation serves its markets with products and services ranging from portable power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.  Headquartered in Newark, New York, the company's business segments include: Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorp.com.  This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include: uncertain global economic conditions, increased competitive environment and pricing pressures, disruptions related to restructuring actions and delays. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife's financial results is included in Ultralife's Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K.  Conference Call Information  Ultralife will hold its fourth quarter earnings conference call today at 10:00 AM ET. To participate, please call (800) 915-4836, identify yourself and ask for the Ultralife call. The conference call will also be broadcast live over the Internet at http://www.ultralifecorporation.com. To listen to the call, please go to the web site at least fifteen minutes early to download and install any necessary audio software. For those who cannot listen to the live webcast, a replay of the webcast will be available shortly after the call at the same location.  ULTRALIFE CORPORATION CONSOLIDATED BALANCE SHEETS (In Thousands, Except Per Share Amounts) (unaudited)                                                                                                                                                                                       December 31, December 31, ASSETS                                               2013         2012                                                                  Current assets:                                                   Cash and cash equivalents                            $16,489    $10,078 Trade accounts receivable, net                       14,238      20,913 Inventories                                          26,053      30,370 Prepaid expenses and other current assets            2,031       2,461 Total current assets                                 58,811       63,822                                                                  Property and equipment                               10,202      12,415                                                                  Other assets:                                                     Goodwill, intangible and other assets                21,203       21,481                                                                  Total Assets                                         $90,216    $97,718                                                                  LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                               Current liabilities:                                              Short-term debt and current portion of long-term     $--        $-- debt Accounts payable                                     7,053       11,357 Other current liabilities                            4,971       8,535 Total current liabilities                            12,024       19,892                                                                  Long-term liabilities:                                            Other long-term liabilities                          4,547       4,370                                                                  Shareholders' equity:                                             Ultralife equity:                                                 Common stock, par value $0.10 per share              1,888        1,886 Capital in excess of par value                       174,932      173,791 Accumulated other comprehensive loss                 (614)        (620) Accumulated deficit                                  (94,804)     (93,878)                                                     81,402       81,179 Less -- Treasury stock, at cost                      7,658        7,658 Total Ultralife equity                               73,744       73,521 Noncontrolling interest                              (99)        (65) Total shareholders' equity                           73,645       73,456                                                                  Total Liabilities and Shareholders' Equity           $90,216    $97,718                                                                 ULTRALIFE CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands, Except Per Share Amounts) (Unaudited)                                                                                           Three Month Periods       Twelve Month Periods                            Ended                    Ended                                                                                          December 31, December 31, December 31, December 31,                           2013         2012         2013         2012                                                                Revenues:                                                       Battery & energy products  $15,861    $18,846    $57,077    $71,084 Communications systems     4,315       10,423      21,758      30,573 Total revenues             20,176       29,269       78,835       101,657                                                                Cost of products sold:                                          Battery & energy products  11,714      13,760      42,739      53,522 Communications systems     2,869       6,058       13,475      19,405 Total cost of products     14,583      19,818      56,214      72,927 sold                                                                Gross profit               5,593       9,451       22,621      28,730                                                                Operating expenses:                                             Research and development   1,403       1,511       5,859       7,216 Selling, general, and      3,967       5,587       17,386      21,628 administrative Total operating expenses   5,370       7,098       23,245      28,844                                                                Operating income (loss)    223         2,353       (624)       (114)                                                                Other income (expense):                                         Interest income            12          --          39          4 Interest expense           (39)        (124)       (238)       (440) Miscellaneous              5           (41)        (26)        (24) Income (loss) from continuing operations      201          2,188        (849)        (574) before income taxes                                                                Income tax provision -     52          152         94          539 current Income tax provision(benefit)        52          (35)        145         15 -deferred Total income taxes         104         117         239         554                                                                Net income (loss) from     97          2,071       (1,088)     (1,128) continuing operations                                                                Discontinued operations:                                        Income (loss) from discontinued operations,   (31)        (680)       128         (501) net of tax                                                                Net income (loss)          66          1,391       (960)       (1,629)                                                                Net loss attributable to   3           --         34          31 noncontrolling interest                                                                Net income (loss)          $69        $1,391     $(926)     $(1,598) attributable to Ultralife                                                                Other comprehensive income                                      (loss): Foreign currency          (47)        446         6           365 translation adjustments                                                                Comprehensive income (loss) loss attributable   $22        $1,837     $(920)     $(1,233) to Ultralife                                                                                                                               Net income (loss) attributable to Ultralife                                       common shareholders - basic Continuing operations     $0.01      $0.12      $(0.06)    $(0.06) Discontinued operations   $0.00      $(0.04)    $0.01      $(0.03) Total                     $0.00      $0.08      $(0.05)    $(0.09) Net income (loss) attributable to Ultralife                                       common shareholders - diluted Continuing operations     $0.01      $0.12      $(0.06)    $(0.06) Discontinued operations   $0.00      $(0.04)    $0.01      $(0.03) Total                     $0.00      $0.08      $(0.05)    $(0.09)                                                                                                                               Weighted average shares    17,477      17,443      17,465      17,403 outstanding - basic Weighted average shares    17,572      17,443      17,465      17,403 outstanding - diluted  CONTACT: Company Contact:          Ultralife Corporation          Philip A. Fain          (315) 332-7100          pfain@ulbi.com                   Investor Relations Contact:          LHA          Jody Burfening          (212) 838-3777          jburfening@lhai.com  Ultralife Corporation logo