Published:
Presstek Announces First Quarter 2008 Net Profit
Presstek Announces First Quarter 2008 Net Profit
HUDSON, N.H., May 9 /PRNewswire-FirstCall/ -- Presstek, Inc.
(Nasdaq: PRST) today reported a net income from continuing operations in the
first quarter of 2008 of $0.2 million, or $0.01 per share, versus a net loss
from continuing operations of ($0.9) million, or ($.03) per share, in the
first quarter of 2007. First quarter 2008 results include pre-tax
restructuring and other charges of $0.6 million related to the company's
Business Improvement Plan ("BIP"). First quarter 2007 operating results
included pre-tax restructuring and other charges of $0.3 million.
On April 3, 2008, the company announced it expected revenue in the first
quarter of 2008 to be as much as 20% below prior year levels, driven by
reduced European revenues due to the disruption in the company's European
operations related to the company's recently completed business reviews, U.S.
economic weakness, and customer anticipation of a major industry convention in
Germany in May 2008. As expected, first quarter revenue decreased $12.7
million or 19.5% to $52.4 million due to the above-mentioned issues.
"Despite a 19.5% revenue decline versus last year's first quarter, the
company reported gross profit only slightly below first quarter 2007 levels
and positive earnings versus a loss in the same period a year ago," commented
Presstek President and Chief Executive Officer Jeff Jacobson. "In addition,
we were pleased to see a 38% increase in DI plate sales in the quarter, and
service margins of approximately 26%. Earnings before interest, taxes,
depreciation and amortization ("EBITDA") adjusted for special charges was $3.4
million in the first quarter, and debt net of cash at March 29, 2008 was $22.1
million, a 40% improvement over last year at the same time. First quarter
results demonstrate that our Business Improvement Plan has been successful in
enhancing profitability. We continue to expect that revenue in the second
quarter of 2008 will exceed first quarter levels, and gross profit and
operating expenses will continue to reflect the ongoing positive impact of our
Business Improvement Plan."
Consolidated gross margin in the first quarter of 2008 was 34.5% versus
28.4% a year ago. Gross margin improvements were driven by the positive impact
of the company's BIP. In addition, the company's higher margin consumables
and service annuity businesses represented a greater proportion of total sales
in the quarter which had a positive impact on gross margin. First quarter
2008 operating expenses declined $1.5 million to $17.3 million in the quarter
versus $18.8 million in 2007. Excluding restructuring and other charges,
operating expenses declined 9.8% year over year.
Lasertel's external sales were $1.6 million, slightly below year ago
levels largely due to the timing of orders. Lasertel recorded an operating
loss in the first quarter of $1.0 million.
The company also announced it has reached an agreement to sell its
Lasertel property inTucson, Arizona. The company expects this transaction to
close during the third quarter of 2008.
The company also announced that its Annual Meeting of Stockholders will be
held on Wednesday, June 11, 2008, commencing at 1:30 P.M. local time, at the
Waldorf Astoria, 301 Park Avenue,New York, New York.
"As I complete my first year as President and Chief Executive Officer of
Presstek," Mr. Jacobson concluded, "I recognize that there's still a great
deal of work ahead of us, but I am also pleased with the substantial progress
we have made. Our business reviews are complete; our BIP is executing well;
and debt net of cash has significantly improved. Our leadership team is
excited at the prospect of driving long-term revenue growth, leveraging our
improving operating structure and delivering increased profitability."
Information Regarding Non-GAAP Measures
In the first quarter of 2008, in addition to reporting financial results
in accordance with generally accepted accounting principles, or GAAP, the
company provides non-GAAP financial measures, including debt net of cash,
which is defined as debt minus cash, and other GAAP measures adjusted for
certain charges, which the company believes are useful to help investors
better understand its past financial performance and prospects for the future.
A full reconciliation of GAAP to non-GAAP measures is provided in the
financial tables below. Supplemental financial information has been provided
with this release to provide additional details on the company's performance.
Conference Call and Webcast
Management will discuss Presstek's first quarter 2008 results in a
conference call today at 8:30 a.m. (ET). Conference call information is below:
CONFERENCE CALL ACCESS
Domestic Dial In: (866) 711-8198
International Dial In: (617) 597-5327
Passcode: 80852180
In addition, for those unable to participate at the time of the call, a
rebroadcast will be available following the call from Friday, May 9, 2008 at
10:30 AM Eastern Daylight Time until Friday, May 16, 2008 Eastern Daylight
Time at midnight.
REBROADCAST ACCESS
Domestic Dial In: 888-286-8010
International Dial In: 617-801-6888
Passcode: 10583571
An archived web cast of this conference call will also be available on the
"Investor Events Calendar" page of the company's web site, at
www.presstek.com/investors/calendar.html.
About Presstek
Presstek, Inc. is the leading manufacturer and marketer of high tech
digital imaging solutions to the graphic arts and laser imaging markets.
Presstek's patented DI(R), CTP and plate products provide a streamlined
workflow in a chemistry-free environment, thereby reducing printing cycle time
and lowering production costs. Presstek solutions are designed to make it
easier for printers to cost effectively meet increasing customer demand for
high-quality, shorter print runs and faster turnaround while providing
improved profit margins. Presstek subsidiary, Lasertel, Inc., manufactures
semiconductor laser diodes for Presstek's and external customers'
applications. For more information visit www.presstek.com, or call 603-595-
7000 or email: info@presstek.com.
DI is a registered trademark of Presstek, Inc.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Certain statements contained in this News Release constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements regarding expected
revenue, gross margins, operating income (loss), EBITDA, the continuation of
progress at reducing costs and expenses, customer demand, the results of the
company's Business Improvement Plan, the sale of property, and the ability of
the company to achieve its stated objectives. Such forward-looking statements
involve a number of known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the company
to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Such
factors include, but are not limited to, market acceptance of and demand for
the company's products and resulting revenue, the results and impact of the
company's internal reviews, the ability of the company to meet its stated
financial and operational objectives, the company's dependency on its
strategic partners (both manufacturing and distribution), the results of the
pending investigation of the Company by the Securities and Exchange
Commission, the satisfaction of conditions to the sale of the company's
Arizona property, and other risks and uncertainties detailed in the company's
2007 Annual Report on Form 10-K and the company's other reports on file with
the Securities and Exchange Commission. The words "looking forward," "looking
ahead," "believe(s)," "should," "may," "expect(s)," "anticipate(s),"
"project(s)," "likely," "opportunity," and similar expressions, among others,
identify forward-looking statements. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
the statement was made. The company undertakes no obligation to update any
forward-looking statements contained in this news release.
Contacts:
Investor Relations Trade Relations
Kathleen Makrakis Betty LaBaugh
Director of Investor Relations Public Relations Manager
203-485-7534, ext. 1432 603-594-8585, ext. 3441
kmakrakis@presstek.com blabaugh@presstek.com
PRESSTEK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per-share data)
(Unaudited)
Three months ended
March 29, March 31,
2008 2007
Revenue
Product $43,027 $55,236
Service and parts 9,404 9,916
Total revenue 52,431 65,152
Cost of revenue
Product 27,394 38,946
Service and parts 6,926 7,698
Total cost of revenue 34,320 46,644
Gross profit 18,111 18,508
Operating expenses
Research and development 1,552 1,634
Sales, marketing and customer
support 7,600 9,864
General and administrative 7,143 6,254
Amortization of intangible assets 351 707
Restructuring and other charges 635 335
Total operating expenses 17,281 18,794
Income (loss) from operations 830 (286)
Interest and other expense, net (718) (897)
Income (loss) before income taxes 112 (1,183)
Provision (benefit) for income taxes (79) (317)
Income (loss) from continuing
operations 191 (866)
Gain (loss) from discontinued
operations, net of tax $27 (112)
Net income (loss) $218 $(978)
Earnings (loss) per share - basic
Income (loss) from continuing
operations $0.01 $(0.03)
Gain (loss) from discontinued
operations $0.00 (0.00)
$0.01 $(0.03)
Earnings (loss) per share - diluted
Income (loss) from continuing
operations $0.01 $(0.03)
Gain (loss) from discontinued
operations $0.00 (0.00)
$0.01 $(0.03)
Weighted average shares outstanding
Weighted average shares outstanding
- basic 36,568 35,663
Dilutive effect of options 8 -
Weighed average shares outstanding
- diluted 36,576 35,663
PRESSTEK, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
March 29, December 29,
2008 2007
ASSETS
Current assets
Cash and cash equivalents $6,642 $13,249
Accounts receivable, net 37,885 42,879
Inventories, net 52,508 49,084
Assets of discontinued operations 12 15
Deferred income taxes 6,740 6,740
Other current assets 5,375 4,666
Total current assets 109,162 116,633
Property, plant and equipment, net 36,527 38,023
Goodwill 19,891 19,891
Intangible assets, net 5,993 6,287
Deferred income taxes 11,199 11,124
Other noncurrent assets 555 869
Total assets $183,327 $192,827
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Current portion of long-term debt
and capital lease obligation $7,025 $7,035
Line of credit 15,000 20,000
Accounts payable 17,655 18,603
Accrued expenses 22,961 23,713
Deferred revenue 5,775 7,196
Liabilities of discontinued
operations 686 888
Total current liabilities 69,102 77,435
Long-term debt and capital lease
obligation, less current portion 6,750 8,500
Total liabilities 75,852 85,935
Commitments and contingencies
Stockholders' equity
Preferred stock - -
Common stock 366 366
Additional paid-in capital 116,410 115,884
Accumulated other comprehensive
income 871 1,032
Retained earnings (accumulated
deficit) (10,172) (10,390)
Total stockholders' equity 107,475 106,892
Total liabilities and
stockholders' equity $183,327 $192,827
PRESSTEK, INC.
CONTINUING OPERATIONS SUPPLEMENTAL FINANCIAL
INFORMATION
$000's
(Unaudited)
Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008
Key Units
Presstek DI Presses
(Excludes QMDI) 44 51 37 44 29
Presstek CtP
Platesetters
(Excludes DPM) 44 47 47 46 46
Revenue - Growth
Portfolio
Presstek DI Presses
(Excludes QMDI) 15,215 18,873 13,071 15,380 9,736
DI Kits 870 462 125 0 0
DI Plates 3,996 4,306 4,567 5,138 5,500
Total DI Revenue 20,081 23,641 17,763 20,518 15,236
Presstek CtP
Platesetters
(Excludes DPM) 3,415 3,753 2,962 2,989 2,793
Chemistry Free CtP
Plates 4,953 4,914 5,034 4,613 4,522
Total CtP Revenue 8,368 8,667 7,996 7,602 7,315
Service Transfer (913) (1,253) (1,105) (1,438) (865)
Service Revenue 1,983 2,368 2,184 3,394 2,727
Lasertel Revenue 1,689 2,186 1,951 2,445 1,637
Total Revenue -
Growth Portfolio (B) 31,209 35,608 28,789 32,521 26,050
Revenue - Traditional
Portfolio
QMDI Platform 5,243 5,750 5,121 4,678 4,063
Polyester CtP Platform 5,477 5,529 4,961 4,785 4,485
Other DI Plates 2,263 2,571 2,541 2,536 1,664
Conventional/Other 13,276 12,039 11,109 10,782 9,567
Total Product Revenue -
Traditional 26,259 25,889 23,732 22,781 19,779
Service Transfer (249) (246) (219) (277) (75)
Service Revenue -
Traditional 7,933 7,500 7,310 6,303 6,677
Total Revenue -
Traditional
Portfolio (B) 33,943 33,143 30,823 28,807 26,381
Total Revenue (B) 65,152 68,751 59,612 61,328 52,431
Product Revenue
Components %
Growth 47.9% 51.8% 48.3% 53.0% 49.7%
Traditional 52.1% 48.2% 51.7% 47.0% 50.3%
Geographic Revenues
(Origination) (B)
North America 46,133 51,454 46,789 45,891 41,404
Europe 19,019 17,296 12,823 15,437 11,027
Consolidated 65,152 68,751 59,612 61,328 52,431
Gross Margin
Presstek
Equipment 13.0% 8.5% -0.3% 11.6% 15.1%
Consumables 41.8% 46.2% 45.7% 47.7% 49.4%
Service 22.4% 11.1% 14.7% 27.2% 26.3%
Lasertel 17.6% 30.3% -16.9% -3.3% -17.7%
Consolidated 28.4% 27.1% 24.8% 30.7% 34.5%
Operating Expense
(Excluding Special
Charges) $18,459 $22,290 $20,722 $21,235 $16,646
Profitability
Net income (loss) $(978) $(4,830) $(3,616) $(2,780) $218
Add back: Net (income)
loss from
discontinued
operations $112 $(24) $(10) $(24) $(27)
Net income (loss) from
continuing operations $(866) $(4,854) $(3,626) $(2,804) $191
Add back:
Interest 754 842 757 824 615
Other (income)
expense 143 151 (171) (876) 102
Tax charge (benefit) (317) (626) (3,324) (751) (79)
Incremental charges 1,020 4,917 6,286 3,637 -
Other charges
(credits) 335 793 398 1,187 635
Operating income (loss)
from continuing
operations 1,069 1,223 320 1,217 1,464
Add back:
Depreciation and
amortization 2,437 2,425 2,369 2,136 2,023
Other income (expense) (143) (151) 171 876 (102)
EBITDA From Continuing
Operations (A) $3,363 $3,497 $2,860 $4,229 $3,385
Cash Earnings From
Continuing Operations
Net income from
continuing operations (866) (4,854) (3,626) (2,804) 191
Add back:
Other charges
(credits) 335 793 398 1,187 635
Depreciation and
amortization 2,437 2,425 2,369 2,136 2,023
Non cash portion of
equity compensation
(2006 forward 123R
related) 306 2,491 650 542 442
Non cash portion of
taxes (254) (1,408) (2,767) (1,758) (75)
Cash Earnings From
Continuing
Operations (A) 1,958 (553) (2,976) (697) 3,216
Working Capital
Current assets
(excluding net assets
of discontinued
operations) $122,727 $123,465 $114,843 $116,618 $109,150
Current liabilities
Short-term debt 29,000 28,000 28,000 27,000 22,000
All other current
liabilities 48,067 49,354 45,602 49,512 46,391
Current liabilities 77,067 77,354 73,602 76,512 68,391
Working capital 45,660 46,111 41,241 40,106 40,759
Add back short-term
debt 29,000 28,000 28,000 27,000 22,000
Working capital,
excluding
short-term
debt (A) $74,660 $74,111 $69,241 $67,106 $62,759
Debt net of cash (A)
Calculation of total
debt:
Current portion of
long-term debt $7,000 $7,000 $7,000 $7,000 $7,000
Line of credit 22,000 21,000 21,000 20,000 15,000
Long-term debt, net of
current portion 13,750 12,000 10,250 8,500 6,750
Total debt 42,750 40,000 38,250 35,500 28,750
Cash 5,711 7,319 8,253 13,249 6,642
Debt net of cash $37,039 $32,681 $29,997 $22,251 $22,108
Days Sales Outstanding 73 68 70 58 67
Days Inventory
Outstanding 69 69 78 74 88
Capital Expenditures $1,330 $748 $455 $513 $353
Employees 813 792 770 712 709
(A) EBITDA [earnings before interest, taxes, depreciation, amortization
and restructuring and merger-related charges (credits)]; Working
capital, excluding short-term debt; Debt net of cash; and Cash earning
from continuing operations are not measures of performance under
accounting principles generally accepted in the United States of
America ("GAAP") and should not be considered alternatives for, or in
isolation from, the financial information prepared and presented in
accordance with GAAP. Presstek's management believes that EBITDA
provides meaningful supplemental information regarding Presstek's
current financial performance and prospects for the future.
Presstek's management believes that Cash earnings from continuing
operations provides meaningful supplemental information regarding
Presstek's current financial performance and prospects for the future.
Presstek's management believes that Working capital, excluding short
term debt, provides meaningful supplemental information regarding
Presstek's ability to meet its current liability obligations.
Presstek's management believes that Debt net of cash provides
meaningful information on Presstek's debt relative to its cash
position. Presstek believes that both management and investors
benefit from referring to these non-GAAP measures in assessing the
performance of Presstek's ongoing operations and liquidity, and when
planning and forecasting future periods. These non-GAAP measures also
facilitate management's internal comparisons to Presstek's historical
operating results and liquidity. Our presentations of these measures,
however, may not be comparable to similarly titled measures used by
other companies. Reconciliations of these measures to GAAP are
included in the tables above.
(B) Q3 2007 results reflect $1.5 million decrease in revenue due to the
correction of certain revenue transactions.
**Certain amounts may be subject to reclassification to conform to current
presentation.
SOURCE Presstek, Inc.
Copyright © 2008, PRNewswire
Copyright © 2008, NewsBlaze,
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