Delaware
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0-21121
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06-1456680
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(State or other jurisdiction of incorporation)
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(Commission file number)
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(I.R.S. employer identification no.)
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One Hamden Center
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2319 Whitney Ave, Suite 3B, Hamden, CT
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06518
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(Address of principal executive offices)
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(Zip Code)
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Exhibit
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Description
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99.1
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Press Release dated August 5, 2013 of TransAct Technologies Incorporated
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99.2
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Press Release dated August 6, 2013 of TransAct Technologies Incorporated
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TRANSACT TECHNOLOGIES INCORPORATED
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||||
By:
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/s/Steven A. DeMartino
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|||
Steven A. DeMartino
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||||
President, Chief Financial Officer, Treasurer and Secretary
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Three Months Ended
June 30,
|
||||||
2013
|
2012
|
|||||
Net sales
|
$ | 15.8 | $ | 15.9 | ||
Gross profit
|
$ | 6.5 | $ | 5.8 | ||
Gross margin
|
40.9% | 36.9% | ||||
Operating income
|
$ | 1.8 | $ | 0.8 | ||
Net income
|
$ | 1.2 | $ | 0.5 | ||
Diluted earnings per share
|
$ | 0.14 | $ | 0.06 | ||
Adjusted EBITDA(1)
|
$ | 2.2 | $ | 1.9 | ||
Adjusted operating income(2)
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$ | 1.7 | $ | 1.3 | ||
Adjusted net income(2)
|
$ | 1.1 | $ | 0.9 | ||
Adjusted diluted earnings per share(2)
|
$ | 0.13 | $ | 0.09 | ||
(1)
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Adjusted EBITDA is defined as net income before net interest expense, income taxes, depreciation, amortization and stock-based compensation and adjusted for the impact of acquisition related expenses, restructuring expenses and certain legal fees as described later in this release. A reconciliation of Adjusted EBITDA to net income, the most comparable Generally Accepted Accounting Principles (“GAAP”) financial measure, can be found attached to this release.
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(2)
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Reconciliations of GAAP earnings financial metrics to corresponding non-GAAP financial measures can be found attached to this release.
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TRANSACT TECHNOLOGIES INCORPORATED
|
||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||
(Unaudited)
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||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||
(In thousands, except per share amounts)
|
June 30, June 30, | |||||||||||
2013 2012
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2013
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2012
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||||||||||
Net sales
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$ | 15,788 | $ | 15,853 | $ | 30,845 | $ | 33,412 | ||||
Cost of sales
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9,336 | 10,011 | 17,960 | 20,792 | ||||||||
Gross profit
|
6,452 | 5,842 | 12,885 | 12,620 | ||||||||
Operating expenses:
|
||||||||||||
Engineering, design and product development
|
995 | 952 | 2,007 | 2,165 | ||||||||
Selling and marketing
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1,857 | 1,674 | 3,643 | 3,275 | ||||||||
General and administrative
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1,736 | 1,903 | 3,770 | 3,903 | ||||||||
Legal fees associated with lawsuit
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57 | 471 | 256 | 471 | ||||||||
Business consolidation and restructuring
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- | 63 | - | 117 | ||||||||
4,645 | 5,063 | 9,676 | 9,931 | |||||||||
Operating income
|
1,807 | 779 | 3,209 | 2,689 | ||||||||
Interest and other income (expense):
|
||||||||||||
Interest, net
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- | 2 | (1) | 4 | ||||||||
Other, net
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(4) | 13 | 33 | (11) | ||||||||
(4) | 15 | 32 | (7) | |||||||||
Income before income taxes
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1,803 | 794 | 3,241 | 2,682 | ||||||||
Income tax provision
|
588 | 286 | 866 | 966 | ||||||||
Net income
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$ | 1,215 | $ | 508 | 2,375 | $ | 1,716 | |||||
Net income per common share:
|
||||||||||||
Basic
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$ | 0.14 | $ | 0.06 | $ | 0.27 | $ | 0.19 | ||||
Diluted
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$ | 0.14 | $ | 0.06 | $ | 0.27 | $ | 0.18 | ||||
Shares used in per share calculation:
|
||||||||||||
Basic
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8,728 | 9,084 | 8,722 | 9,256 | ||||||||
Diluted
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8,802 | 9,189 | 8,803 | 9,357 | ||||||||
SUPPLEMENTAL INFORMATION – SALES BY SALES UNIT:
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|||||||||||||||
Three months ended
|
Six months ended
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||||||||||||||
June 30,
|
June 30,
|
||||||||||||||
2013
|
2012
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2013
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2012
|
||||||||||||
Food safety, point-of-sale and banking
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$ | 3,453 | $ | 2,676 | $ | 5,437 | $ | 5,012 | |||||||
Casino and gaming
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7,322 | 7,112 | 14,062 | 16,523 | |||||||||||
Lottery
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499 | 1,728 | 1,864 | 2,758 | |||||||||||
Printrex
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1,050 | 1,174 | 2,375 | 2,413 | |||||||||||
TransAct Services Group
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3,464 | 3,163 | 7,107 | 6,706 | |||||||||||
Total net sales
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$ | 15,788 | $ | 15,853 | $ | 30,845 | $ | 33,412 |
TRANSACT TECHNOLOGIES INCORPORATED
|
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||
(Unaudited)
|
||||||
June 30,
|
December 31,
|
|||||
(In thousands)
|
2013
|
2012
|
||||
Assets:
|
||||||
Current assets:
|
||||||
Cash and cash equivalents
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$ | 8,828 | $ | 7,537 | ||
Accounts receivable, net
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11,640 | 15,927 | ||||
Inventories
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12,787 | 10,321 | ||||
Deferred tax assets
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1,443 | 1,443 | ||||
Other current assets
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666 | 471 | ||||
Total current assets
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35,364 | 35,699 | ||||
Fixed assets, net
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3,105 | 3,302 | ||||
Goodwill
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2,621 | 2,621 | ||||
Deferred tax assets
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1,113 | 1,172 | ||||
Intangible assets, net
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2,113 | 2,328 | ||||
Other assets
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79 | 106 | ||||
9,031 | 9,529 | |||||
Total assets
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$ | 44,395 | $ | 45,228 | ||
Liabilities and Shareholders’ Equity:
|
||||||
Current liabilities:
|
||||||
Accounts payable
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$ | 5,603 | $ | 6,422 | ||
Accrued liabilities
|
2,391 | 2,927 | ||||
Income taxes payable
|
121 | 629 | ||||
Accrued contingent consideration
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230 | 136 | ||||
Deferred revenue
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197 | 93 | ||||
Total current liabilities
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8,542 | 10,207 | ||||
Deferred revenue, net of current portion
|
166 | 168 | ||||
Deferred rent, net of current portion
|
278 | 308 | ||||
Accrued acquisition consideration, net of current portion
|
530 | 824 | ||||
Other liabilities
|
383 | 352 | ||||
1,357 | 1,652 | |||||
Total liabilities
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9,899 | 11,859 | ||||
Shareholders’ equity:
|
||||||
Common stock
|
110 | 109 | ||||
Additional paid-in capital
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26,732 | 25,940 | ||||
Retained earnings
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25,956 | 24,708 | ||||
Accumulated other comprehensive loss, net of tax
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(82) | (55) | ||||
Treasury stock, at cost
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(18,220) | (17,333) | ||||
Total shareholders’ equity
|
34,496 | 33,369 | ||||
Total liabilities and shareholders’ equity
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$ | 44,395 | $ | 45,228 | ||
TRANSACT TECHNOLOGIES INCORPORATED
|
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
Three months ended
June 30, 2013
|
|||||||||
Reported
|
Adjustments(1)
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Adjusted
Non-GAAP
|
|||||||
Operating expenses
|
$ | 4,645 | $ | 143 | $ | 4,788 | |||
% of net sales
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29.4% | 30.3% | |||||||
Operating income
|
1,807 | (143) | 1,664 | ||||||
% of net sales
|
11.4% | 10.5% | |||||||
Income before income taxes
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1,803 | (143) | 1,660 | ||||||
Income tax provision
|
588 | (48) | 540 | ||||||
Net income
|
1,215 | (95) | 1,120 | ||||||
Diluted net income per share
|
$ | 0.14 | $ | (0.01) | $ | 0.13 |
(1)
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Adjustments include (i) $200 of income related to an adjustment to accrued contingent consideration from the Printrex acquisition and (ii) $57 of legal and other expenses related to the lawsuit with Avery Dennison Corporation. Such adjustments were tax effected using an effective tax rate of 33.5%.
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|
Three months ended
June 30, 2012
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|||||||||
Reported
|
Adjustments(2)
|
Adjusted
Non-GAAP
|
|||||||
Operating expenses
|
$ | 5,063 | $ | (534) | $ | 4,529 | |||
% of net sales
|
31.9% | 28.6% | |||||||
Operating income
|
779 | 534 | 1,313 | ||||||
% of net sales
|
4.9% | 8.3% | |||||||
Income before income taxes
|
794 | 534 | 1,328 | ||||||
Income tax provision
|
286 | 192 | 478 | ||||||
Net income
|
508 | 342 | 850 | ||||||
Diluted net income per share
|
$ | 0.06 | $ | 0.04 | $ | 0.09 |
(2)
|
Adjustments include (i) $471 of legal and other expenses related to the lawsuit with Avery Dennison Corporation and (ii) a restructuring charge of $63 for employee termination benefits and moving expenses associated with the closing of the Printrex manufacturing facility in San Jose, CA during 2012, tax effected using an effective tax rate of 36.0%.
|
TRANSACT TECHNOLOGIES INCORPORATED
|
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
Six months ended
June 30, 2013
|
|||||||||
Reported
|
Adjustments(3)
|
Adjusted
Non-GAAP
|
|||||||
Operating expenses
|
$ | 9,676 | $ | (56) | $ | 9,620 | |||
% of net sales
|
31.4% | 31.2% | |||||||
Operating income
|
3,209 | 56 | 3,265 | ||||||
% of net sales
|
10.4% | 10.6% | |||||||
Income before income taxes
|
3,241 | 56 | 3,297 | ||||||
Income tax provision
|
866 | 19 | 885 | ||||||
Net income
|
2,375 | 37 | 2,412 | ||||||
$ | 0.27 | $ | 0.00 | $ | 0.27 |
(3)
|
Adjustments include (i) $200 of income related to an adjustment to accrued contingent consideration from the Printrex acquisition and (ii) $256 of legal and other expenses related to the lawsuit with Avery Dennison Corporation. Such adjustments were tax effected using an effective tax rate of 33.5%.
|
Six months ended
June 30, 2012
|
|||||||||
Reported
|
Adjustments(4)
|
Adjusted
Non-GAAP
|
|||||||
Operating expenses
|
$ | 9,931 | $ | (588) | $ | 9,343 | |||
% of net sales
|
29.7% | 28.0% | |||||||
Operating income
|
2,689 | 588 | 3,277 | ||||||
% of net sales
|
8.0% | 9.8% | |||||||
Income before income taxes
|
2,682 | 588 | 3,270 | ||||||
Income tax provision
|
966 | 212 | 1,178 | ||||||
Net income
|
1,716 | 376 | 2,092 | ||||||
$ | 0.18 | $ | 0.04 | $ | 0.22 |
(4)
|
Adjustments include (i) $471 of legal and other expenses related to the lawsuit with Avery Dennison Corporation and (ii) a restructuring charge of $117 for employee termination benefits and moving expenses associated with the closing of the Printrex manufacturing facility in San Jose, CA during 2012, tax effected using an effective tax rate of 36.0%.
|
TRANSACT TECHNOLOGIES INCORPORATED
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
NON-GAAP FINANCIAL MEASURES
|
(Unaudited)
|
Three Months Ended
|
|||||
(In thousands)
|
June 30,
|
||||
2013
|
2012
|
||||
Net income
|
$ | 1,215 | $ | 508 | |
Interest (income) expense, net
|
- | (2) | |||
Income tax provision
|
588 | 286 | |||
Depreciation and amortization
|
432 | 438 | |||
EBITDA
|
2,235 | 1,230 | |||
Share-based compensation expense
|
142 | 127 | |||
Legal fees associated with lawsuit
|
57 | 471 | |||
Business consolidation and restructuring
|
- | 63 | |||
Adjustment to accrued contingent
consideration
|
(200) | - | |||
Adjusted EBITDA
|
$ | 2,234 | $ | 1,891 |
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