Reptron Electronics, Inc. Reports Third Quarter and Nine Months 2006 Financial Results11 November 2006
Reptron Electronics, Inc. (OTC Bulletin Board: RPRN), an electronics manufacturing services company, today reported financial results for its third quarter ended September 30, 2006.
Reptron recorded third quarter 2006 net sales of $36.4 million, an 11.8% increase from the same period a year ago, and a 2.8% increase from the second quarter of 2006. The Company recorded a third quarter 2006 net loss of $1.4 million, or $0.29 per fully diluted share. This compares to a $1.2 million loss, or $0.24 per fully diluted share, in the same period a year ago.
For the nine months ended September 30, 2006, net sales totaled $108.7 million, a 6.7% increase from the first nine months of 2005. The Company recorded a net loss during the first nine months of 2006 totaling $3.7 million, or $0.73 per fully diluted share. This compares to a $14.5 million net loss, or $2.89 per fully diluted share, during the first nine months of 2005, which included a non-cash impairment charge to goodwill of approximately $10.1 million as well as an increase to the deferred tax asset valuation allowance of approximately $0.4 million.
"Growing demand driven primarily from legacy customers resulted in a 12% increase in year over year third quarter sales," stated Paul J. Plante, Reptron's President and Chief Executive Officer. "The Company posted its fourth consecutive quarter of year over year sales growth," Plante continued.
"Our gross margins continue to be negatively impacted by start-up costs incurred while ramping up new customer projects. We are working with these customers to reduce project costs and adjust pricing while we exit the start- up phase, with the goal of improving gross margins," stated Plante. "Our plan to reduce operating expenses continues to show results as SG&A expenditures declined over 20% in the third quarter and over 13% year to date when compared to the same periods during 2005," concluded Plante.
Reptron Electronics, Inc. has scheduled a conference call for 9:00 a.m. (EST), November 11, 2006 to discuss the Company's financial performance. Shareholders, members of the media and other interested parties may participate in the call by dialing 1-888-396-9926, or 1-210-234-0037 for international callers and entering pass code 1758971. This call is being web cast and can be accessed at the Company's website at http://www.reptron.com where it will be archived through December 9, 2006. A telephone replay of the call will be available through December 9, 2006 by dialing 1-866-435-1321 from the U.S., or 1-203-369-1018 from international locations and entering pass code 1758971.
About Reptron
Reptron Electronics, Inc. is an electronics manufacturing services company providing engineering services, electronics manufacturing services and display integration services. Reptron Manufacturing Services offers full electronics manufacturing services including complex circuit board assembly, complete supply chain services and manufacturing engineering services to original equipment manufacturers ("OEMs") in a wide variety of industries. Reptron Outsource Manufacturing and Design provides value-added display design engineering and system integration services to OEMs. For more information, please access http://www.reptron.com.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995:
Certain of the above statements contained in this press release, are forward-looking statements that involve a number of risks and uncertainties.. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Factors that could cause actual results to differ materially include the following: The ability of the Company to achieve profitable operations, business conditions and growth in the Company's industry and in the general economy; competitive factors; risks due to shifts in market demand; risks inherent with predicting revenue and earnings outcomes; uncertainties involved in implementing improvements in the manufacturing process; and the risk factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission as well as assumptions regarding the foregoing. The words "believe," "estimate," "expect," "intend," "anticipate," "plan," "appears," and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward- looking statements as a result of various factors. Readers are cautioned not to place undue reliance on these forward-looking statements.
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months Three Months
Ended Ended
September 30, 2006 September 30, 2005
Net Sales $36,434 $32,579
Cost of goods sold 33,263 28,457
Gross profit 3,171 4,122
Selling, general and administrative expenses 3,646 4,615
Impairment charges - -
Operating loss (475) (493)
Other expense:
Interest expense, net (971) (856)
Reorganization costs - -
Total other expense, net (971) (856)
Loss before income taxes (1,446) (1,349)
Income tax provision - -
Loss from continuing operations (1,446) (1,349)
Discontinued operations
Earnings from discontinued operations 4 171
Income tax benefit - -
Earnings from discontinued operations 4 171
Net loss $(1,442) $(1,178)
Net loss from continuing
operations per common share - basic
and diluted: $(0.29) $(0.27)
Net earnings from discontinued
operations per common share - basic
and diluted: $ - $0.03
Net loss per common share -
basic and diluted: $(0.29) $(0.24)
Weighted average Common Stock
equivalent shares outstanding -
basic and diluted 5,020,000 5,000,000
REPTRON ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Nine Months Nine Months
Ended Ended
September 30, 2006 September 30, 2005
Net Sales $108,691 $101,861
Cost of goods sold 98,144 90,324
Gross profit 10,547 11,537
Selling, general and administrative
expenses 11,399 13,152
Impairment charges - 10,072
Operating loss (852) (11,687)
Other expense:
Interest expense, net (2,829) (2,560)
Reorganization costs 10 (6)
Total other expense, net (2,819) (2,566)
Loss before income taxes (3,671) (14,253)
Income tax provision - 383
Loss from continuing operations (3,671) (14,636)
Discontinued operations
Earnings from discontinued operations 4 171
Income tax benefit - -
Earnings from discontinued operations 4 171
Net loss $(3,667) $(14,465)
Net loss from continuing operations per
common share - basic and diluted: $(0.73) $(2.92)
Net earnings from discontinued operations
per common share - basic and diluted: $ - $0.03
Net loss per common share -
basic and diluted: $(0.73) $(2.89)
Weighted average Common Stock equivalent
shares outstanding - basic and diluted 5,010,037 5,000,000
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
September 30, 2006 December 31, 2005
ASSETS
CURRENT ASSETS
Cash and cash equivalents $52 $230
Restricted cash 500 740
Account receivable - trade, net 16,185 17,990
Inventories, net 25,402 21,378
Prepaid expenses and other 614 1,266
Total current assets 42,753 41,604
PROPERTY, PLANT & EQUIPMENT -NET 17,056 18,937
GOODWILL, NET 2,100 2,100
OTHER INTANGIBLE ASSETS, NET 2,761 3,230
DEFERRED INCOME TAX 1,543 1,543
OTHER ASSETS 26 83
TOTAL ASSETS $66,239 $67,497
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable - trade $19,789 $15,008
Accrued expenses 4,040 5,613
Note payable to bank 13,346 13,900
Current portion of long-term obligations 428 315
Total current liabilities 37,603 34,836
SENIOR SECURED NOTES 30,000 30,000
LONG-TERM OBLIGATIONS, less current portion 2,681 3,046
SHAREHOLDERS' EQUITY
Preferred Stock - authorized
15,000,000 shares of $.10 par value;
no shares issued - -
Common Stock - authorized
50,000,000 shares of $.01 par value;
issued and outstanding,
5,000,000 shares 50 50
Additional paid-in capital 15,732 15,725
Accumulated deficit (19,827) (16,160)
TOTAL SHAREHOLDERS' EQUITY (DEFICIT) (4,045) (385)
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT) $66,239 $67,497
Source: prnewswire
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