• Ultralife Corporation Reports First Quarter Results

    来源: Nasdaq GlobeNewswire / 25 4月 2024 07:00:00   America/New_York

    NEWARK, N.Y., April 25, 2024 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ: ULBI) reported operating results for the first quarter ended March 31, 2024 with the following highlights:

    • Sales of $41.9 million representing a 31.4% year-over-year increase, including 54.7% growth in medical market sales
    • Gross profit of $11.5 million, or 27.4% of revenue, compared to $7.4 million, or 23.3% of revenue for the 2023 first quarter
    • Operating income of $4.1 million versus breakeven for the 2023 first quarter
    • GAAP EPS of $0.18 compared to a loss of $0.02 for the 2023 first quarter
    • Adjusted EBITDA of $5.2 million, a four-fold gain compared to $1.2 million last year
    • Backlog of $97.4 million exiting the 2024 first quarter

    “Ultralife’s strong first quarter results are a testament to the teamwork and success to date of our gross margin improvement initiatives and continued demand in our core products, particularly from our government/defense and medical customers,” said Mike Manna, President and Chief Executive Officer.   “With the current healthy backlog and new product commercialization, we are prepared to capture additional organic growth opportunities, while we continue to drive gross margin improvements and invest in further new product development.  We are increasingly optimistic that we are positioned to sustain profitable growth, generate incremental cash flow to pay down debt, and invest in strategic capital expenditures and accretive acquisitions.”

    First Quarter 2024 Financial Results

    Revenue was $41.9 million, an increase of $10.0 million, or 31.4%, as compared to revenue of $31.9 million for the first quarter of 2023. Overall, government/defense sales increased 83.4% and commercial sales increased 8.6% over the 2023 period. Battery & Energy Products sales increased 22.9% to $35.0 million compared to $28.5 million last year reflecting increases of 73.6% in government/defense sales and 8.6% in commercial sales, including a 54.7% increase in medical battery sales and a 2.3% in industrial sales, partially offset by a decrease of 13.9% in oil & gas market sales. Communications Systems sales increased by 101.3% to $6.9 million compared to $3.4 million for the same period last year, primarily attributable to shipments of EL8000 server cases to a large multinational information technology company, integrated systems of amplifiers and radio vehicle mounts to a major international defense contractor under an ongoing allied country government/defense modernization program, and power systems to a U.S.-based global prime. Our total backlog exiting the 2024 first quarter was $97.4 million.

    Gross profit was $11.5 million, or 27.4% of revenue, compared to $7.4 million, or 23.3% of revenue, for the same quarter a year ago. Battery & Energy Products gross margin was 25.7%, compared to 22.9% last year, primarily due to higher cost absorption and more efficiencies resulting from a concerted effort to level-load production more evenly across the 2024 quarter, as well as improved price realization. Communications Systems gross margin was 35.8% compared to 26.8% last year, primarily due to higher factory volume and favorable sales product mix.

    Operating expenses were $7.4 million, compared to $7.4 million for the 2023 first quarter. Operating expenses were 17.7% of revenue compared to 23.2% of revenue for the year-earlier period.

    The combination of higher sales leveraged by improved gross margin and level operating expenses resulted in a $4.0 million increase in operating income to $4.1 million from breakeven last year. Operating margin increased to 9.7% compared to 0.1% last year. Operating results for the first quarter of 2023 were negatively impacted by the January 25, 2023 cybersecurity attack.

    Net income was $2.9 million or $0.18 per diluted share on a GAAP basis, compared to a net loss of $0.3 million or $0.02 per diluted share for the first quarter of 2023. Adjusted EPS was $0.21 on a diluted basis for the first quarter of 2024, compared to a loss of $0.05 for the 2023 period. Adjusted EPS excludes the provision for deferred taxes which primarily represents non-cash charges for U.S. taxes which we expect will be fully offset by net operating loss carryforwards and other tax credits for the foreseeable future.

    Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense, was $5.2 million for the first quarter of 2024, or 12.5% of sales, compared to $1.2 million, or 3.6% of sales, for the year-earlier period.

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

    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 first quarter earnings conference call today at 8:30 AM ET.

    To ensure a fast and reliable connection to our investor conference call, we now require participants dialing in by phone to register using the following link prior to the call:   https://register.vevent.com/register/BI5d712724df6d4c65bb6496c4ce2d606f. This will eliminate the need to speak with an operator. Once registered, dial-in information will be provided along with a personal identification number. Should you register early and misplace your details, you can simply click back on this same link at any time to register and view this information again. 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 uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of our new products on a global basis, and disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, weather or other factors not under our control. 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.

        
    ULTRALIFE CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
    (Dollars in Thousands)
    (Unaudited)
      
    ASSETS
        
     March 31,
    2024
     December 31,
    2023
    Current Assets:   
    Cash$10,099 $10,278
    Trade Accounts Receivable, Net35,278 31,761
    Inventories, Net43,821 42,215
    Prepaid Expenses and Other Current Assets5,104 5,949
    Total Current Assets94,302 90,203
        
    Property, Plant and Equipment, Net20,670 21,117
    Goodwill37,499 37,571
    Other Intangible Assets, Net14,867 15,107
    Deferred Income Taxes, Net9,873 10,567
    Other Non-Current Assets3,340 3,711
    Total Assets$180,551 $178,276
        
    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current Liabilities: 
    Accounts Payable$13,315 $11,336
    Current Portion of Long-Term Debt2,000 2,000
    Accrued Compensation and Related Benefits2,013 3,115
    Accrued Expenses and Other Current Liabilities6,048 7,279
    Total Current Liabilities23,376 23,730
    Long-Term Debt, Net23,140 23,624
    Deferred Income Taxes, Net1,675 1,714
    Other Non-Current Liabilities3,415 3,781
    Total Liabilities51,606 52,849
        
    Shareholders' Equity:   
    Common Stock2,089 2,078
    Capital in Excess of Par Value189,995 189,160
    Accumulated Deficit(37,863) (40,754)
    Accumulated Other Comprehensive Loss(3,892) (3,660)
    Treasury Stock(21,492) (21,492)
    Total Ultralife Equity128,837 125,332
    Non-Controlling Interest108 95
    Total Shareholders’ Equity128,945 125,427
        
    Total Liabilities and Shareholders' Equity$180,551 $178,276
        


     
    ULTRALIFE CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME
    (In Thousands Except Per Share Amounts)
    (Unaudited)

      
     Three-Month Period Ended
     March 31, March 31,
     2024 2023
    Revenues:   
    Battery & Energy Products$34,989 $28,470
    Communications Systems6,938 3,446
    Total Revenues41,927 31,916
        
    Cost of Products Sold:   
    Battery & Energy Products26,003 21,958
    Communications Systems4,454 2,522
    Total Cost of Products Sold30,457 24,480
        
    Gross Profit11,470 7,436
        
    Operating Expenses:   
    Research and Development1,756 2,032
    Selling, General and Administrative5,651 5,378
    Total Operating Expenses7,407 7,410
        
    Operating Income (Loss)4,063 26
        
    Other Expense456 494
    Income (Loss) Before Income Tax Provision3,607 (468)
        
    Income Tax Provision (Benefit)703 (133)
        
    Net Income (Loss)2,904 (335)
        
    Net Income Attributable to Non-Controlling Interest(13) (11)
        
    Net Income (Loss) Attributable to Ultralife Corporation$2,891 ($346)
        
    Net Income (Loss) Per Share Attributable to Ultralife
    Common Shareholders – Basic
    $0.18 ($0.02)
        
    Net Income (Loss) Per Share Attributable to Ultralife
    Common Shareholders – Diluted
    $0.18 ($0.02)
        
    Weighted Average Shares Outstanding – Basic16,396 16,135
        
    Weighted Average Shares Outstanding – Diluted16,518 16,135
        

    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 (loss) attributable to Ultralife Corporation.

     
    ULTRALIFE CORPORATION AND SUBSIDIARIES
    CALCULATION OF ADJUSTED EBITDA
    (Dollars in Thousands)
    (Unaudited)
      
     Three-Month Period Ended
     March 31,
    2024
     March 31,
    2023
        
    Net Income (Loss) Attributable to Ultralife Corporation$2,891 ($346)
    Adjustments:   
    Interest Expense, Net520 424
    Income Tax Provision (Benefit)703 (133)
    Depreciation Expense740 762
    Amortization of Intangible Assets228 209
    Stock-Based Compensation Expense161 139
    Non-Recurring – Cyber Insurance Deductible- 100
    Adjusted EBITDA$5,243 $1,155
        

    Adjusted Earnings Per Share

    In evaluating our business, we consider and use Adjusted EPS, a non-GAAP financial measure, as a supplemental measure of our business performance in addition to GAAP financial measures. We define Adjusted EPS as net income (loss) attributable to Ultralife Corporation excluding the provision for deferred taxes divided by our weighted average shares outstanding on both a basic and diluted basis. We believe that this information is useful in providing period-to-period comparisons of our results by reflecting the portion of our tax provision that we expect will be offset by our U.S. net operating loss carryforwards and other tax credits for the foreseeable future. We reconcile Adjusted EPS to EPS, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on Adjusted EPS as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of Adjusted EPS to EPS and net income (loss) attributable to Ultralife Corporation.

     
    ULTRALIFE CORPORATION AND SUBSIDIARIES
    CALCULATION OF ADJUSTED EPS
    (In Thousands Except Per Share Amounts)
    (Unaudited)
                
     Three-Month Period Ended
     March 31, 2024 March 31, 2023
     Amount Per
    Basic
    Share
     Per
    Diluted
    Share
     Amount Per
    Basic
    Share
     Per
    Diluted
    Share
    Net Income (Loss) Attributable to Ultralife Corporation$2,891 $.18 $.18 ($346) ($0.02) ($0.02)
    Deferred Tax Provision (Benefit)650 .04 .03 (390) (.03) (.03)
    Adjusted Net Income (Loss)$3,541 $.22 $.21 ($736) ($.05) ($.05)
                
    Weighted Average Shares Outstanding  16,396 16,518   16,135 16,135
                


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

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