EX-99.1 2 w75200exv99w1.htm EXHIBIT 99.1 exv99w1
Exhibit 99.1
HALIFAX ANNOUNCES
FIRST QUARTER FINANCIAL RESULTS
"Net Income of $183,000 and Earnings Per Share of $.06
ALEXANDRIA, VA – August 5, 2009 – Halifax Corporation of Virginia (NYSE Amex: HX) today announced its financial results for the quarter June 30, 2009.
Revenues for of three months ended June 30, 2009 were $7.6 million compared to $9.0 million for the prior year. The decrease in revenues in 2009 was attributable to the termination of certain large nation-wide enterprise maintenance contracts.
The Company reported operating income of $134,000, compared to operating income of $317,000 for the same period last year. The reduction in operating income was primarily due to lower revenues due to lengthening sales cycles, somewhat offset by lower operating costs.
The Company reported net income of $183,000, or $.06 per basic and diluted share.
Charles McNew, President and Chief Executive Officer, stated, “We are pleased to report another profitable quarter. While certain legacy revenue sources for a few maintenance customers are declining, our enterprise logistics solutions revenue is continuing to grow on a profitable basis.”
“We believe that this supply chain services program, which is affording the company multiple higher margin business process outsourcing opportunities, will position the company for improving long term performance.”
The Company will host a conference call for investors at 11 a.m. EDT on Wednesday, August 5, 2009, to review the financial and operational results for the quarter. The conference call phone number is 800-771-6692 for U.S. callers and 212-231-2903 for international callers. The conference call replay will be available from 1 p.m. EDT on Wednesday, August 5, 2009, to 1 p.m. EDT on Thursday, August 6, 2009. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers. The reservation number is 21433302.

 


 

Founded in 1967, Halifax Corporation of Virginia is an enterprise logistics and 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 enterprise logistics solutions and high availability hardware maintenance services. More information on Halifax can be found at www.hxcorp.com.
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 described in the Risk Factors section in the Company’s Annual Report on Form 10-K 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 amounts)
                 
    For the three months ended June 30,  
Statements of operations   2009     2008  
Revenues
  $ 7,662     $ 9,017  
 
               
Cost of services
    6,569       7,504  
 
           
 
               
Gross profit
    1,093       1,513  
 
               
Selling, marketing, general & administrative
    959       1,196  
 
           
 
               
Operating Income
    134       317  
 
               
Other income
    152        
Interest expense
    (83 )     (83 )
 
           
 
               
Income before income taxes
    203       234  
 
               
Income tax expense
    20       31  
 
           
 
               
Net income
  $ 183     $ 203  
 
               
Earnings per common share - basic and diluted
  $ 0.06     $ 0.06  
 
           
 
               
Weighted average number of common shares outstanding:
               
Basic
    3,175       3,175  
Diluted
    3,178       3,175  

 


 

                 
Balance Sheets   June 30, 2009     March 31, 2009  
Current assets
               
Cash
  $ 841     $ 766  
Trade accounts receivable, net
    5,523       6,794  
Inventory, net
    2,661       2,588  
Prepaid expenses and other current assets
    256       208  
 
           
 
               
Total current assets
    9,281       10,356  
 
               
Property and equipment, net
    643       727  
Goodwill and intangibles, net
    3,221       3,292  
Other assets
    42       56  
 
               
 
           
Total assets
  $ 13,187     $ 14,431  
 
           
 
               
Liabilities and Stockholders’ Equity
               
 
               
Current liabilities
               
Accounts payable and accrued expenses
  $ 3,758     $ 4,546  
Income tax payable
    30       67  
Deferred maintenance revenue
    3,143       2,072  
Bank debt
    963       2,545  
Auxiliary line of credit
           
Current portion of long-term debt
    268       331  
 
           
 
               
Total current liabilities
    8,162       9,561  
 
               
Other long-term debt
    120       141  
Subordinated debt - affiliate
    1,000       1,000  
Deferred income
    25       40  
 
           
 
               
Total liabilities
    9,307       10,742  
 
               
Stockholders’ equity
    3,880       3,689  
 
               
 
           
Total liabilities and stockholders’ equity
  $ 13,187     $ 14,431