Adeptron Q2 2010 Results - Highest Quarterly Sales in Nine Years
Stock Symbol: ATQ
Listing: Toronto Stock Exchange (TSX)
Web Site: www.adeptron.com
TORONTO, Aug. 12 /CNW/ - Adeptron Technologies Corporation (ATQ: TSX) ("Adeptron" or the "Company"), a specialist at delivering integrated product solutions and support to the global technology and electronics industry, today reports unaudited financial results for the three-month and six-month periods ended June 30, 2010.
Effective January 1, 2010, the functional currency of Adeptron was changed from Canadian to U.S. dollars. Concurrent with this change in functional currency, Adeptron adopted the U.S. dollar as its reporting currency. Accordingly, all balance sheet and income statement amounts stated in this press release are expressed in U.S. dollars.
Q2 2010 Financial Highlights:
- Sales increased by $3.1 million to $13.7 million or 29% over the
second quarter of 2009,
- Gross margin as a percentage of sales increased to 7.9% compared to
5.3% for the same period last year,
- Net profit of $0.15 million compared to net loss of $1.43 million for
the same period last year,
- Adjusted EBITDA gain of $0.67 million compared to Adjusted EBITDA loss
of $0.8 million for the same period last year,
- Profit of $0.00 per share compared to loss of $0.01 per share last
year.
F. Michael Marti, President & CEO of Adeptron stated, "Adeptron's second quarter 2010 experienced significant improvements in virtually all important financial measures compared to its results in each of the previous four quarters. This second quarter had increases in orders from current customers as well as from new customers announced in the prior two quarters."
Marti continued, "We exited the quarter with a healthy backlog of sales orders and this bolsters our confidence that the second half of 2010 will show an improvement over the first half. All of these developments resulted in successfully resetting Adeptron's covenants with its senior lender for the period ended June 30, 2010 through to March 31, 2011, and in receiving waivers from this lender for the Company's previous events of default, including financial covenant violations."
Marti added, "Management continues to focus on improving the Company's operational systems, processes and very importantly, the calibre and experience of our personnel. We also have begun to recruit additions to the sales and marketing team and expect to add new sales representatives in our locations in San Jose, California, and Markham and Ottawa in Ontario. We are benefiting from the industry experience and key customer networking activities provided by various members of the board of directors. Our executive team is excited about the progress we are making on the new customer development front. We see it as a validation of the wide range of service capabilities and the quality of these services experienced by existing customers."
Q2-2010 - Financial Summary
Selected comparative financial information for the three-month and six-month periods ended June 30, 2010 and 2009 is shown below. (All numbers below expressed in thousands of U.S. dollars, except per share information and gross margin percentages):
Income Statement 3-Month 3-Month 6-Month 6-Month
Period Period Period Period
--------- --------- --------- ---------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
--------- --------- --------- ---------
Sales $13,666 $10,560 $23,970 $20,699
Gross Profit 1,086 559 1,606 1,909
Gross Profit % 7.9% 5.3% 6.7% 9.2%
Net Income (loss) 149 (1,432) (662) (1,390)
Adjusted EBITDA(2) 672 (801) 296 (201)
Basic & diluted income
(loss) per share $0.00 ($0.01) ($0.01) ($0.01)
Number of common shares
outstanding 96,708 96,708 96,708 96,708
EBITDA(1) and Adjusted EBITDA(2) reconciliations to GAAP Net Income/(Loss) for the three-month and six-month periods ended June 30, 2010 and 2009 are shown below. (All numbers below expressed in thousands of U.S. dollars):
3-Month 3-Month 6-Month 6-Month
Period Period Period Period
--------- --------- --------- ---------
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
--------- --------- --------- ---------
Net income (loss)
per GAAP $149 ($1,432) ($662) ($1,390)
Add (deduct):
Interest expense 200 223 412 420
Income tax expense
(recovery) (2) (153) (20) (199)
Depreciation and
amortization 316 313 637 613
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EBITDA(1) $663 ($1,049) $367 ($556)
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Embedded foreign currency
derivatives - 227 (92) 298
Stock-based compensation 9 221 21 57
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Adjusted EBITDA(2) $672 ($801) $296 ($201)
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(1) EBITDA means earnings before interest, taxes, depreciation and
amortization.
(2) Adjusted EBITDA means earnings before interest, taxes, depreciation,
amortization, embedded foreign currency derivatives and stock-based
compensation.
The working capital deficiency, defined as current assets less current liabilities, as at June 30, 2010, was $0.540 million compared to $0.258 million at December 31, 2009, representing an increase in working capital deficiency of $0.282 million. This increase in working capital deficiency can be explained by an increase in the bank loan of $1.874 million and offset by the increase in accounts receivable and inventory. The latter relates to the Company meeting demands of its customers.
Adeptron's unaudited 2010 second quarter financial statements and MD&A will be available on Adeptron's web site on August 13, 2010 at www.adeptron.com and the System for Electronic Document Analysis and Retrieval ("SEDAR") at www.sedar.com.
About Adeptron:
Adeptron is a specialist at delivering integrated product solutions and support to the global technology and electronics industry. As a leading global provider of complete Electronics Manufacturing Services (EMS), Adeptron offers world class manufacturing facilities and global partners throughout Canada, the United States, Israel and China, allowing the Company to provide its customers the flexibility and scalability to competitively achieve total solutions to their present and future electronics outsourcing needs. Adeptron is a public company whose common shares are listed for trading on the Toronto Stock Exchange (TSX) under the symbol: "ATQ". Visit Adeptron at: www.adeptron.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO SUCH MATTERS AS EXPECTED FINANCIAL PERFORMANCE, BUSINESS PROSPECTS, TECHNOLOGICAL DEVELOPMENTS, DEVELOPMENT ACTIVITIES AND LIKE MATTERS. THESE STATEMENTS INVOLVE RISK AND UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO RISK FACTORS DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY REPORTS AND ANNUAL INFORMATION FORM. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE PROJECTED AS A RESULT OF THESE RISKS AND SHOULD NOT BE RELIED UPON AS A PREDICTION OF FUTURE EVENTS. ADEPTRON TECHNOLOGIES CORPORATION UNDERTAKES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE ON WHICH SUCH STATEMENT IS MADE, OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.
For further information: Adeptron Company Contact: F. Michael Marti, President & Chief Executive Officer, Tel: 416-705-6534, [email protected]; Adeptron Company Contact: Jon Szczur, Chief Financial Officer, Tel: 905-470-0109 x2299, [email protected]
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