8-K 1 q42003.txt FORM 8-K 4TH QUARTER AND YEAR END 2003 EARNINGS SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 Date of Report - February 12, 2004 (Date of earliest event reported) METROLOGIC INSTRUMENTS, INC. (Exact name of Registrant as specified in its charter) New Jersey 0-24172 22-1866172 (State of incorporation) (Commission file number) (IRS employer identification number) 90 Coles Road, Blackwood, New Jersey, 08012 (Address of principal executive offices, zip code) Area Code (856) 228-8100 (Telephone number) Item 12. Results of Operation and Financial Condition Metrologic Instruments, Inc. (the "Company") is furnishing herewith as Exhibit 99.1 its Press Release dated February 12, 2004 announcing the Company's earnings for the fourth quarter and year ended December 31, 2003. Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Metrologic Instruments, Inc. press release dated February 12, 2004 announcing the Company's earnings for the fourth quarter and year ended December 31, 2003. SIGNATURES Pursuant to requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Dated: February 12, 2003 Metrologic Instruments, Inc. By: /s/ Kevin J. Bratton ----------------------------- Kevin J. Bratton Chief Financial Officer METROLOGIC INSTRUMENTS, INC. CURRENT REPORT ON FORM 8-K EXHIBIT INDEX Exhibit No. Page 99.1 Metrologic Instruments, Inc. press release dated 3 February 12, 2004 announcing the Company's earnings for the fourth quarter and year ended December 31, 2003. EXHIBIT 99.1 Corporate Headquarters Metrologic Instruments, Inc. 90 Coles Road Blackwood, NJ 08012-4638 [COMPANY LOGO] Tel 856.228.8100 Fax 856.228.6673 (sales) Fax 856.228-0653 (finance/legal) www.metrologic.com Metrologic Announces Record Financial Results for Fourth Quarter and Year Ended 2003; Sales and Net Income Exceed High End of Revised Guidance Estimates; Increases Guidance for 2004 Blackwood, New Jersey - February 12, 2004 -- Metrologic Instruments, Inc. (NASDAQ: MTLG), experts in optical image capture and processing solutions that design, manufacture and market sophisticated imaging and scanning solutions for a variety of applications, today announced record financial results for the fourth quarter and year ended December 31, 2003. Sales increased 32% to approximately $41.7 million for the fourth quarter of 2003 compared with $31.6 million for the same period last year. Net income was approximately $5.2 million, or $0.23 diluted earnings per share, compared with net income of $1.7 million, or $0.10 diluted earnings per share, for the same period last year. The 2003 fourth quarter results represent the largest amount of sales and net income for any quarter in the near 36-year history of the Company. Net income for the three months ended December 31, 2003 benefited by approximately $0.07 per diluted share due to the decrease in the U.S. dollar relative to other foreign currencies, primarily the euro, as compared with the fourth quarter of 2002. Sales for the year ended December 31, 2003 increased 19% to approximately $138.0 million compared with approximately $115.8 million for 2002. Net income for the year ended December 31, 2003 was approximately $12.0 million, or $0.62 diluted earnings per share, not including the gain of $2.2 million resulting from a discount earned on the early repayment of certain subordinated debt and the write-off of certain expenses of $0.3 million, net of taxes, associated with the Company's former credit agreements. This compares with net income of $1.7 million, or $0.10 diluted earnings per share for 2002. Net income for the year ended December 31, 2003, including the above gain and write-off of certain expenses, was approximately $13.9 million, or $0.72 diluted earnings per share. Commenting on the fourth quarter results, Metrologic's Chairman and Chief Executive Officer, C. Harry Knowles, stated, "Metrologic's record sales for the fourth quarter were generated from increases across our key business segments and most geographical territories sequentially quarter to quarter in 2003 and over the previous year. It is important to note that the sales growth was achieved with mostly Metrologic's older, established products. I believe that this growth demonstrates Metrologic's selling ability and provides a strong basis for continued increases in sales and net income in 2004 as the new products begin to ship in larger quantities. Our new products, in both POS and industrial markets, are being received well by customers in the testing stages." 2004 Guidance Increased: Metrologic expects sales for the first quarter of 2004 to be approximately $38.5 million to $39.5 million. Net income is expected to be approximately $3.9 million to $4.2 million or $0.17 to $0.18 diluted earnings per share, assuming that the value of the euro maintains a rate close to $1.20 U.S. dollars to the euro in the first quarter. For the full year of 2004, Metrologic has increased its sales guidance to approximately $160 million to $167 million, up from previous estimates of $153 million to $155 million. Net income is expected to be in the range of $17.4 million to $18.5 million, or $0.75 to $0.80 diluted earnings per share. The earnings estimate for 2004 assumes that the value of the euro averages for the year at $1.13 U.S. dollars to the euro. The 2004 net income estimate is an increase from the Company's previous estimate of $15.5 million to $16.6 million, or $0.67 to $0.73 diluted earnings per share. About Metrologic Metrologic designs, manufactures and markets bar code scanning and high-speed automated data capture systems solutions using laser, holographic, camera and vision-based technologies. Metrologic offers expertise in 1D and 2D bar code reading, portable data collection, optical character recognition, image lift, and parcel dimensioning and singulation detection for customers in retail, commercial, manufacturing, transportation and logistics, and postal and parcel delivery industries. In addition to its extensive line of bar code scanning and vision system equipment, the company also provides laser beam delivery and control systems to semi-conductor and fiber optic manufacturers, as well as a variety of highly sophisticated optical systems. Metrologic products are sold in more than 110 countries worldwide through Metrologic's sales, service and distribution offices located in North and South America, Europe and Asia. Forward Looking Statements Forward-looking statements contained in this release are highly dependent upon a variety of important factors which would cause actual results to differ materially from those reflected in such forward looking statements. Specifically, the factors that could cause actual results to differ from expectations include: The timing, introduction and market acceptance of Metrologic's new products including, but not limited to the Stratos; foreign currency fluctuations with the US dollar; pricing pressures; competitive factors; sales cycles of Metrologic's products; Metrologic's ability to control manufacturing and operating costs which affect future profitability; technological changes in the scanner industry, specifically vision-based technologies; availability of patent protection for Metrologic's camera, vision-based technologies, and other products; the resolution of litigation; general economic conditions; and the potential impact of terrorism and international hostilities. When used in this release and documents referenced, the words "believes", "expects", "may", "should", "seeks", or "anticipates", and similar expressions as they relate to Metrologic or its management are intended to identify such forward-looking statements. For additional factors, please see Metrologic's reports filed with the Securities and Exchange Commission. For more information contact: Analysts should contact: Dale Fischer, Vice President Kevin Bratton (856)228-8100 Chief Financial Officer Email: Investor@metrologic.com 856-228-8100 Metrologic Instruments, Inc. Condensed Consolidated Statements of Operations (amounts in thousands, except per share data) Three Months Ended Twelve Months Ended December 31, December 31, 2003 2002 2003 2002 ---- ---- ---- ---- Sales $ 41,702 $ 31,630 $138,011 $115,806 Cost of sales 23,302 20,376 79,654 74,385 -------- -------- -------- -------- Gross profit 18,400 11,254 58,357 41,421 Selling, general and administrative expenses 8,651 6,468 31,378 28,271 Research and development expenses 1,554 1,642 6,764 6,929 Severance costs - - 71 602 -------- -------- -------- -------- Operating income 8,195 3,144 20,144 5,619 Net interest expense (224) (574) (1,291) (2,739) Other income (expense) 473 108 (12) (178) Gain on extinguishment of debt - - 2,200 - --------- -------- -------- -------- Income before income tax expense 8,444 2,678 21,041 2,702 Income tax expense 3,208 1,018 7,160 1,027 --------- -------- -------- -------- Net income 5,236 1,660 13,881 1,675 ========= ======== ======== ======== Earnings per share:* Basic $ 0.26 $ 0.10 $ 0.79 $ 0.10 Diluted $ 0.23 $ 0.10 $ 0.72 $ 0.10 Weighted average number of common shares outstanding* Basic 20,390 16,410 17,597 16,400 Diluted 22,609 16,684 19,383 16,471 Metrologic Instruments, Inc. Condensed Consolidated Balance Sheets (all amounts in thousands) December 31, December 31, 2003 2002 ---- ---- Cash and cash equivalents $ 48,817 $ 1,202 Restricted cash - 1,000 Accounts receivable, net 27,369 20,412 Inventories, net 16,972 14,039 Other current assets 3,542 2,526 -------- -------- Total current assets 96,700 39,179 Property, plant and equipment, net 16,940 12,600 Goodwill and other intangibles, net 24,148 21,525 Other assets 204 948 -------- ------ Total assets $137,992 $ 74,252 ======== ====== Accounts payable and accrued expenses $ 19,289 $ 18,108 Current portion of debt 5,207 7,055 Deferred contract revenue 289 1,707 -------- -------- Total current liabilities 24,785 26,870 Debt 320 14,431 Other liabilities 5,279 3,480 Total shareholders' equity 107,608 29,471 -------- ------ Total liabilities and shareholders' equity $137,992 $ 74,252 ======== ====== *Weighted average number of common shares and per share amounts for 2002 have been restated to reflect 2003 stock splits. Certain prior period amounts have been reclassified to conform to the current period presentation. Supplemental Sales Data Three Months Ended Twelve Months Ended December 31, December 31, % % % % 2003 2002 Total Growth 2003 2002 Total Growth ------- ------- ------ ------ ------- ------- ------ ----- By Geography North America: POS/OEM $ 7,898 $7,800 18.9% 3.1% $32,291 $27,366 23.4% 17.8% AOA 7,867 5,644 18.9% 39.4% 24,574 27,081 17.8% (9.3%) EMEA 17,793 13,133 42.7% 35.5% 57,449 42,941 41.6% 33.8% Asia/ROW 5,415 3,345 13.0% 61.9% 15,532 12,058 11.3% 28.8% South America 2,729 1,708 6.5% 59.8% 8,165 6,360 5.9% 28.4% ------- ------- ------ -------- -------- ------ $41,702 $31,630 100.0% 31.8% $138,011 $115,806 100.0% 19.2% By Business Segment POS/OEM 34,143 25,524 81.9% 33.8% 112,399 87,487 81.5% 28.5% Industrial Scanning 5,348 4,187 12.8% 27.7% 16,595 22,065 12.0% (24.8%) Advanced Optical Systems 2,211 1,919 5.3% 15.2% 9,017 6,254 6.5% 44.2% ------- ------- ------ -------- -------- ------ $41,702 $31,630 100.0% 31.8% $138,011 $115,806 100.0% 19.2% POS/OEM: New Products Introduced in 2003 694 - 2.0% NA 1,124 - 1.0% NA Introduced 2000-2002 22,110 17,672 64.8% 25.1% 72,516 50,483 64.5% 43.6% Introduced prior to 2000 11,339 7,852 33.2% 44.4% 38,759 37,004 34.5% 4.7% ------- ------- ------ -------- ------- ------ $34,143 $25,524 100.0% 33.8% $112,399 $ 87,487 100.0% 28.5%