EX-99.1 2 ex991e.txt PRESS RELEASE DATED FEBRUARY 22, 2005 Exhibit 99.1 HALIFAX PROVIDES UPDATED BALANCE SHEET ALEXANDRIA, VA - February 22, 2005 - Halifax Corporation (AMEX: HX) today announced that the balance sheet as of December 31, 2004, has been reclassified. An updated balance sheet has been provided to replace the version issued on February 10, 2005. The only change is that bank debt has been reclassified from long term to current. This has no effect on any other aspects of the balance sheet, nor any impact on interest expense on the income statement for the period. The updated balance sheet was provided in the Form 10Q Report for the quarter ended December 31, 2004, and filed earlier today. Founded in 1967, Halifax Corporation is an enterprise maintenance solutions company providing a wide range of technology services to commercial and government customers throughout the United States. The Company's principal products are high availability hardware maintenance services, technology deployment and integration services, and secure network program services. More information regarding Halifax can be found at www.hxcorp.com. The information on the website listed above is not and should not be considered part of this document. This website is intended to be an inactive textual reference. Certain statements made by the Company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, views, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors that may cause actual results to differ materially from those in the forward-looking statements. For further information that could affect the Company's financial statements, please refer to the Company's reports filed with the Securities and Exchange Commission.
Halifax Corporation Summary Financial Data (in 000's except per share Three Months Ended Nine Months Ended amounts) December 31, December 31, Statements of Operations 2004 2003 2004 2003 Revenues $ 15,605 $ 13,380 $ 43,847 $ 36,517 Cost of services 15,641 11,802 40,547 32,122 Selling, Marketing, General & 1,383 1,226 4,038 3,531 Administrative Abandonment of facility - - 179 - Operating (loss) income (1,419) 352 (917) 864 Interest expense (163) (130) (462) (419) (loss) Income before income taxes (1,582) 222 (1,379) 445 Income tax expense (benefit) (547) 20 (479) 40 Net (loss) income $(1,035) $ 202 $ (900) $ 405 Earnings (loss) per common share - $ (.33) $ .07 $ (.30) $ .16 basic: Earnings (loss) per common share - $ (.33) $ .07 $ (.30) $ .16 diluted: Weighted average number of common shares outstanding: Basic 3,167 2,910 2,982 2,548 Diluted 3,238 2,992 3,032 2,598
Balance Sheets December 31, 2004 March 31, 2004 Current assets Cash $ 100 $ 430 Trade accounts receivable, net 11,747 9,364 Inventory, net 5,872 5,845 Prepaid expense and other current assets 834 599 Deferred tax asset 1,148 1,204 Total current assets 19,701 17,442 Property and equipment, net 1,624 1,598 Goodwill and intangibles, net 7,235 4,606 Other assets 144 149 Deferred tax asset 3,231 2,696 Total assets $ 31,935 $ 26,491 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ 8,137 $ 6,723 Bank debt 9,698 - Deferred maintenance revenue 3,796 2,543 Current portion of long-term debt 517 523 Total current liabilities 22,148 9,789 Long-Term bank debt - 7,227 Othe long-term debt 172 19 Subordinated debt-affiliate 2,400 2,400 Deferred income 293 337 Total liabilities 25,013 19,772 Stockholders' equity 6,922 6,719 Total liabilities and stockholders' $ 31,935 $ 26,491 equity