• Ultralife Corporation Reports Third Quarter Results

    المصدر: Nasdaq GlobeNewswire / 27 أكتوبر 2022 06:10:00   America/Chicago

    NEWARK, N.Y., Oct. 27, 2022 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ: ULBI) reported an operating loss of $0.6 million and adjusted EBITDA of $1.3 million on revenue of $33.2 million for the third quarter ended September 30, 2022. For the third quarter of 2021, the Company reported an operating loss of $0.8 million and adjusted EBITDA of $0.3 million on revenue of $21.8 million.

    “For the third quarter, government/defense revenue doubled year-over-year reflecting higher demand from our customers in Battery & Energy Products and shipments of larger awards in Communications Systems. This increase in government/defense revenue along with the addition of Excell, resulted in a 53% increase in total Company revenue. While we benefited from the operating expense leverage of the sharp revenue gain, the combination of production inefficiencies associated with supply chain disruptions and input cost inflation severely pressured gross margins and profitability for the quarter,” said Michael D. Popielec, President and Chief Executive Officer. “We continue to work on offsetting inflation and manufacturing workflow challenges with price realization and productivity gains to restore profitable growth. With a backlog now over $100 million, we are positioned well for near-term revenue increases and remain committed to advancing several transformational projects and new product opportunities to drive long-term revenue growth.”

    Third Quarter 2022 Financial Results

    Revenue was $33.2 million, an increase of $11.5 million, or 52.7%, compared to $21.8 million for the third quarter of 2021. Overall, government/defense sales increased 99.8% and commercial sales increased 38.0% from the 2021 period. Battery & Energy Products revenue increased 42.9% to $28.6 million, compared to $20.0 million last year, reflecting $6.9 million of Excell sales coupled with organic increases of 66.4% in government/defense sales, 7.4% in oil & gas market sales and 2.4% in industrial market sales, partially offset by a 12.1% decrease in medical sales. Net organic sales for this segment increased 8.5%. Communications Systems sales increased 165.3% to $4.7 million compared to $1.8 million for the same period last year, despite lingering supply chain disruptions resulting in delays in our shipments to future periods.   Our total backlog exiting the third quarter grew to $106.2 million, which represents an increase of $27.0 million or 34.1% over the comparable backlog exiting the prior quarter and an increase of $64.2 million or 153.3% over that exiting the third quarter of 2021.

    Gross profit was $6.7 million, or 20.2% of revenue, compared to $5.1 million, or 23.5% of revenue, for the same quarter a year ago.   Battery & Energy Products’ gross margin was 18.7% compared to 24.0% last year, primarily due to supply chain disruptions including component cost inflation, prolonged lead times and logistics delays, and the incremental costs of transitioning new products to high volume production. Communications Systems gross margin was 29.5% compared to 18.0% last year, primarily due to higher factory volume and more favorable sales mix.  

    Operating expenses were $7.3 million compared to $5.9 million last year, an increase of 24.0% , reflecting $1.1 million for Excell. Operating expense ratio to revenue was 22.0%, a 510 basis-point improvement as compared to 27.1% of revenue for the year-earlier period.

    Operating loss was $0.6 million compared to $0.8 million last year.

    Net loss was $0.2 million or $0.01 per diluted share on a GAAP basis compared to a net loss of $0.6 million or $0.04 per diluted share for the third quarter of 2021.  

    Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense, was $1.3 million or 3.8% of sales for the third quarter of 2022, compared to $0.3 million or 1.3% of sales for the year-earlier period.

    See the “Non-GAAP Financial Measures” section of this release for a reconciliation of Adjusted EPS to EPS and adjusted EBITDA to net (loss) income attributable to Ultralife Corporation.

    About Ultralife Corporation

    Ultralife Corporation serves its markets with products and services ranging from 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.ultralifecorporation.com.

    Conference Call Information

    Ultralife will hold its third quarter earnings conference call today at 8:30 AM ET. To participate in the live call, please dial (800) 915-4836 at least ten minutes before the scheduled start time, identify yourself and ask for the Ultralife call. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

    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 the impact of COVID-19 and related supply chain disruptions, potential reductions in revenues from key customers, acceptance of our new products on a global basis and uncertain global economic conditions. 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.

    Company Contact: Investor Relations Contact:
    Ultralife CorporationLHA
    Philip A. Fain  Jody Burfening
    (315) 210-6110 (212) 838-3777
    pfain@ulbi.com jburfening@lhai.com 


    ULTRALIFE CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Dollars in Thousands)
    (Unaudited)


    ASSETS
        
                                                                    September 30,
    2022
     December 31,
    2021
    Current Assets:   
    Cash$5,051 $8,413
    Trade Accounts Receivable, Net26,876 20,232
    Inventories, Net40,769 33,189
    Prepaid Expenses and Other Current Assets6,241 4,690
    Total Current Assets78,937 66,524
        
    Property, Plant and Equipment, Net21,898 23,205
    Goodwill37,066 38,068
    Other Intangible Assets, Net16,095 17,390
    Deferred Income Taxes, Net11,963 11,472
    Other Non-Current Assets1,981 2,879
              

               Total Assets
    $167,940 $159,538
         
    LIABILITIES AND SHAREHOLDERS' EQUITY


    Current Liabilities:
       
    Accounts Payable$15,827 $9,823
    Current Portion of Long-Term Debt2,000 2,000
    Accrued Compensation and Related Benefits2,000 1,842
    Accrued Expenses and Other Current Liabilities8,254 5,259
    Total Current Liabilities28,081 18,924
    Long-Term Debt, Net20,874 18,857
    Deferred Income Taxes1,996 2,254
    Other Non-Current Liabilities1,673 1,760
    Total Liabilities52,624 41,795
        
    Shareholders' Equity:   
    Common Stock2,057 2,052
    Capital in Excess of Par Value187,181 186,518
    Accumulated Deficit(47,727) (47,832)
    Accumulated Other Comprehensive Loss(4,842) (1,653)
    Treasury Stock(21,480) (21,469)
    Total Ultralife Equity115,189 117,616
    Non-Controlling Interest127 127
    Total Shareholders’ Equity115,316 117,743
        
    Total Liabilities and Shareholders' Equity$167,940 $159,538

                                                                            

    ULTRALIFE CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF (LOSS) INCOME
    (In Thousands Except Per Share Amounts)
    (Unaudited)
            
     Three-Month Period Ended Nine-Month Period Ended
     September 30, September 30, September 30, September 30,
     2022 2021 2022  2021
    Revenues:       
    Battery & Energy Products$28,583 $20,008 $87,873 $64,994
    Communications Systems4,651 1,753 7,860 9,510
    Total Revenues33,234 21,761 95,733 74,504
            
    Cost of Products Sold:       
    Battery & Energy Products23,238 15,216 68,656 48,750
    Communications Systems3,281 1,437 5,758 6,401
    Total Cost of Products Sold26,519 16,653 74,414 55,151
            
    Gross Profit6,715 5,108 21,319 19,353
            
    Operating Expenses:       
    Research and Development1,896 1,723 5,425 5,223
    Selling, General and Administrative5,405 4,164 15,982 12,866
    Total Operating Expenses7,301 5,887 21,407 18,089
            
    Operating (Loss) Income(586) (779) (88) 1,264
            
    Other (Income) Expense(254) (1) (22) 76
    (Loss) Income Before Income Taxes(332) (778) (66) 1,188
            
    Income Tax (Benefit) Provision(90) (175) (171) 290
            
    Net (Loss) Income(242) (603) 105 898
            
    Net (Loss) Income Attributable to Non-Controlling Interest(3) (18) - 1
            
    Net (Loss) Income Attributable to Ultralife Corporation($239) ($585) $105 $897
            
            
    Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Basic($.01) ($.04) $.01 $.06
            
    Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Diluted($.01) ($.04) $.01 $.06
            
    Weighted Average Shares Outstanding – Basic16,133 16,065 16,122 16,020
            
    Weighted Average Shares Outstanding – Diluted16,133 16,065 16,144 16,200


    Non-GAAP Financial Measures:

    Adjusted EBITDA

    In evaluating our business, we consider and use adjusted EBITDA, a non-GAAP financial measure, as a supplemental measure of our operating performance in addition to GAAP financial measures. We define adjusted EBITDA as net income (loss) attributable to Ultralife Corporation before net interest expense, provision (benefit) for income taxes, depreciation and amortization, and stock-based compensation expense, plus/minus expense/income that we do not consider reflective of our ongoing continuing operations. We reconcile adjusted EBITDA to net income (loss) attributable to Ultralife Corporation, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on adjusted EBITDA as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of adjusted EBITDA to net income attributable to Ultralife Corporation.

    ULTRALIFE CORPORATION AND SUBSIDIARIES
    CALCULATION OF ADJUSTED EBITDA
    (Dollars in Thousands)
    (Unaudited)


     Three-Month Period Ended Nine-Month Period Ended
     September 30, 2022 September 30, 2021 September 30, 2022 September 30, 2021
            
    Net (Loss) Income Attributable to Ultralife Corporation($239) ($585) $105 $897
    Adjustments:       
    Interest and Financing Expense272 53 583 164
    Income Tax (Benefit) Provision(90) (175) (171) 290
    Depreciation Expense815 700 2,450 2,160
    Amortization Expense318 148 969 458
    Stock-Based Compensation Expense179 142 552 512
    Non-Cash Purchase Accounting Adjustment- - 55 -
    Adjusted EBITDA$1,255 $283 $4,543 $4,481

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