EX-99.1 3 l92773aex99-1.txt EX-99.1 PRESS RELEASE EXHIBIT 99.1 [ALLEN TELECOM LOGO] FOR IMMEDIATE RELEASE ALLEN TELECOM ANNOUNCES FOURTH QUARTER AND FULL YEAR 2001 SALES AND EARNINGS RESULTS BEACHWOOD, OHIO, February 13, 2002 - Allen Telecom Inc. (NYSE: ALN) today reported its financial results for the fourth quarter ended December 31, 2001 and full year results for 2001. Sales for the fourth quarter 2001 were $89.6 million, a decline of 16.1% compared to $106.9 million in the fourth quarter of 2000 and down 1.8% sequentially when compared to third quarter 2001 sales of $91.3 million. Earnings per common share from continuing operations in the fourth quarter of 2001 were a loss of $.07 per common share, excluding an unusual, one-time restructuring charge of $.05 per common share, compared to $.13 per common share from continuing operations in the fourth quarter of 2000. Reported earnings per share were a loss of $.12 in the fourth quarter of 2001, including the unusual, one-time restructuring charge, as compared to reported earnings per share of $.13 in the fourth quarter of 2000. All per share amounts refer to both basic and fully diluted earnings per common share. Reported sales for the full year 2001 improved slightly to $394.6 million when compared to full year 2000 sales of $392.6 million. Earnings per share from continuing operations for the year 2001 were a loss of $.01 per common share, excluding the unusual, one-time restructuring charge of $.05 per share, as compared to earnings from continuing operations of $.38 per common share for the full year 2000. Reported earnings per share for the year 2001, including the unusual, one-time restructuring charge of $.05 per share, were a loss of $.06 per share as compared to reported earnings per share for the year 2000 of $.43, which include a one-time gain from discontinued operations of $.05 per common share related to the sale of the Company's automotive emissions testing business which was sold in the first quarter of 1999. The acquisition of certain assets and liabilities of Bartley R. F. Systems, headquartered in Amesbury, MA, was completed late in December, 2001. Bartley designs and manufactures base station subsystems and components and will service its customers in the future under the FOREM brand name. The unusual, one-time charge of $2.3 million or $.05 per common share in the fourth quarter of 2001 related to the closing and consolidation of the Company's manufacturing plant in Sparks, NV into the Bartley manufacturing plant in Amesbury, MA. The total cost associated with the Bartley acquisition includes the issuance of 2,271,391 common shares of Allen Telecom stock, a cash payment of $0.4 million and assumed debt of $4.1 million. Bartley's sales for the full year 2001 were approximately $41.0 million. Bartley R. F. Systems sales and earnings have not been included in Allen Telecom's profit and loss statements for the year 2001. They will be included in the Company's profit and loss statements beginning January 1, 2002. All of Bartley's balance sheet items, however, have been incorporated into the Company's consolidated balance sheet as of December 31, 2001. Sales of Geolocation Products, Allen Telecom's newest product line, were $5.5 million in the fourth quarter of 2001 as compared to third quarter sales of $2.4 million, which was the first quarter the Geolocation product line recorded shipments. On January 16, 2002 Allen Telecom announced that AT&T Wireless signed an agreement to purchase Geometrix(R) wireless caller location systems for installation in selected AT&T Wireless markets. Allen Telecom's balance sheet improved in the fourth quarter of 2001, as compared to the third quarter of 2001. Outstanding debt was reduced by $7.6 million to $152.8 million at December 31, 2001, even after the $4.5 million assumption of debt and cash payment related to the Bartley acquisition, as compared to outstanding debt of $160.4 million at September 30, 2001. In addition, the Company's cash balance increased by $9.9 million. These improvements were obtained through the implementation of cost controls and investment restrictions at all operating divisions. Inventories were reduced by $18.8 million during the fourth quarter of 2001 as compared to the third quarter ended September 30, 2001. Receivables were reduced by $8.4 million in the fourth quarter of 2001 as compared to the third quarter ended September 30, 2001. These changes in inventories and receivables exclude the impact of the acquisition of Bartley's assets at year-end 2001. The Company's order backlog increased 38% from $89.5 million at September 30, 2001 to $123.4 million at December 31, 2001 and increased 11% from December 31, 2000. The increase in backlog as of December 31, 2001 is attributable to the inclusion of Bartley's $8.1 million backlog and to the increase in the Company's geolocation backlog which ended December 31, 2001 at $48.7 million versus $1.0 million at the end of September 30, 2001, partially offset by reductions in backlog for most of its other product lines. Allen Telecom Inc. (http://www.allentele.com) is a leading supplier of wireless equipment to the global telecommunications infrastructure market. FOREM supplies sophisticated filters, duplexers, combiners, amplifiers and microwave radios to an array of OEM customers. MIKOM focuses on providing repeaters, in-building systems and other products that enhance both the coverage and the capacity of a wireless system. Tekmar Sistemi provides integrated low power fiber optic and cable distributed antenna systems for indoor coverage systems. Decibel Products and Antenna Specialists manufacture land based and mobile antennas in frequency bands that cover all of the traditional wireless networks. Grayson Wireless supplies measurement and signal processing systems for testing the performance of a wireless network, network-based wireless caller geolocation systems for E 911 and value added services. Comsearch offers program management, network planning, engineering, development and installation of wireless networks worldwide. Statements included in this press release, which are not historical in nature, are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements regarding the Company's future performance and financial results are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. Factors that could cause the Company's actual results to materially differ from forward-looking statements made by the Company, include, among others, the cost, success and timetable for new product development; the cost and timing of the integration of Bartley and the consolidation of the Company's Nevada facility into Bartley's Massachusetts facility; the cost and outcome of pending litigation filed by a competitor in the E 911 geolocation business claiming infringement by the Company of intellectual property rights; the health and economic stability of the world and national markets; the cost and availability of capital and financing to the Company and its customers; the effective realization of inventory and other working capital assets to cash; the impact of competitive products and pricing in the Company's markets; the ability of the Company to generate future U.S. income needed to utilize the Company's tax loss carry forwards; and, the impact of U.S. and foreign government legislative/regulatory actions. Allen Telecom Inc.'s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q contain additional details concerning these factors. For further information contact: Dianne B. McCormick Director, Investor Relations (216) 765-5855 (phone) (216) 765-0375 (fax) Dianne_McCormick@allentele.com ALLEN TELECOM INC. CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED DECEMBER 31, DECEMBER 31, ------------------------ ------------------------ 2001 2000 2001 2000 ---- ---- ---- ---- (Unaudited) SALES $ 89,645 $106,884 $ 394,601 $392,608 Cost of sales (Note 1) (69,843) (76,838) (296,342) (277,666) --------- --------- --------- --------- Gross profit 19,802 30,046 98,259 114,942 Operating expenses: Selling, general and administrative expenses (Note 1) (14,559) (13,418) (56,776) (54,271) Research and development and product engineering costs (6,108) (5,951) (26,086) (25,442) Amortization of goodwill (1,966) (1,981) (7,901) (7,822) --------- --------- --------- --------- Operating (loss) income (2,831) 8,696 7,496 27,407 Interest expense (3,073) (3,027) (11,281) (11,022) Interest income 306 532 1,034 1,989 --------- --------- --------- --------- (Loss) income before taxes and minority interest (5,598) 6,201 (2,751) 18,374 Benefit (provision) for income taxes 2,183 (2,539) 1,073 (7,530) --------- --------- --------- --------- (Loss) income before minority interest (3,415) 3,662 (1,678) 10,844 Minority interest (29) (6) (145) (91) --------- --------- --------- --------- (LOSS) INCOME FROM CONTINUING OPERATIONS (3,444) 3,656 (1,823) 10,753 Discontinued emissions testing operations - gain on sale (Note 2) -- -- -- 1,300 --------- --------- --------- --------- NET (LOSS) INCOME $ (3,444) $3,656 $ (1,823) $12,053 ========= ========= ========= ========= EARNINGS (LOSS) PER COMMON SHARE, basic and diluted: Continuing operations $(.12) $.13 $(.06) $.38 Discontinued operations - gain on sale -- -- -- .05 --------- --------- --------- --------- Net (loss) income $(.12) $.13 $(.06) $.43 ========= ========= ========= ========= Weighted average common shares outstanding: Basic 28,450 27,870 28,090 27,820 --------- --------- --------- --------- Diluted 28,450 28,390 28,090 28,270 --------- --------- --------- ---------
Note 1: In the fourth quarter 2001, the Company recognized a restructuring charge of approximately $2.3 million, or $.05 per basic and diluted share after related income tax effect, with respect to the closing and consolidation of the Company's U.S. base station subsystem and components parts manufacturing facility in Nevada into the newly acquired Bartley manufacturing facility in Massachusetts. Of the cost, approximately $1.0 million is in cost of sales and $1.3 million in selling, general and administrative expenses. Note 2: The gain on sale from discontinued operations in 2000 represents income from previously contingent purchase price earned on the sale of the Company's former automotive emissions testing business sold in the first quarter of 1999. This gain is net of related income taxes in the amount of $.7 million. Note 3: Segment information for the Company is as follows (amounts in thousands):
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------------------------------------------------------------------------ 2001 2000 2001 2000 ------------------------------------------------------------------------------------------------ Sales to external customers: Wireless communications equipment: Base station subsystems and components $ 30,799 $ 52,998 $182,964 $190,934 Repeater and in-building coverage products 27,773 20,451 94,523 78,751 Base station and mobile antennas 21,413 27,724 88,218 97,820 Geolocation products 5,491 - 7,846 - ------------------------------------------------- Total wireless communications equipment 85,476 101,173 373,551 367,505 Wireless engineering and consulting services 4,169 5,711 21,050 25,103 ------------------------------------------------------------------------------------------------ Total sales $ 89,645 $106,884 $394,601 $392,608 ------------------------------------------------------------------------------------------------ Results of operations: Wireless communications equipment $ 928 $ 12,081 $ 21,159 $ 38,226 Wireless engineering and consulting services (190) 524 1,025 4,426 ------------------------------------------------- 738 12,605 22,184 42,652 Goodwill amortization (1,966) (1,981) (7,901) (7,822) General corporate expenses (1,603) (1,928) (6,787) (7,423) ------------------------------------------------------------------------------------------------ Operating (loss) income $ (2,831) $ 8,696 $ 7,496 $ 27,407 ------------------------------------------------------------------------------------------------
ALLEN TELECOM INC. CONSOLIDATED CONDENSED BALANCE SHEETS (AMOUNTS IN THOUSANDS)
DECEMBER 31, DECEMBER 31, 2001 2000 --------- --------- ASSETS Cash and equivalents $ 16,368 $ 10,539 Receivables 92,291 93,815 Inventories 124,026 101,640 Other current assets 25,245 11,131 --------- --------- Total current assets 257,930 217,125 Fixed assets 41,290 41,279 Goodwill and other assets 212,736 214,618 --------- --------- TOTAL ASSETS $511,956 $473,022 ======== ======== LIABILITIES Notes payable and current maturities of long-term obligations $ 12,318 $ 3,796 Accounts payable 40,355 45,181 Accrued expenses 27,827 26,305 Income taxes 14,633 9,212 --------- -------- Total current liabilities 95,133 84,494 Long-term debt 140,530 134,639 Other liabilities 17,936 18,908 --------- --------- TOTAL LIABILITIES 253,599 238,041 STOCKHOLDERS' EQUITY 258,357 234,981 --------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $511,956 $473,022 ========= =========