-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C4LMhlQZE/t30HN5FAss11hU7yzClbDWMaYoIFsh0wMC2c4BWIChjkHKgDe4gyGR nbB8To/DEzNzFaaMQYZqkQ== 0000815910-05-000013.txt : 20050223 0000815910-05-000013.hdr.sgml : 20050223 20050223081908 ACCESSION NUMBER: 0000815910-05-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050221 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050223 DATE AS OF CHANGE: 20050223 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METROLOGIC INSTRUMENTS INC CENTRAL INDEX KEY: 0000815910 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 221866172 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24712 FILM NUMBER: 05632845 BUSINESS ADDRESS: STREET 1: COLES ROAD AT RTE 42 CITY: BLACKWOOD STATE: NJ ZIP: 08012 BUSINESS PHONE: 609-228-8100 MAIL ADDRESS: STREET 1: COLES ROAD ROUTE 42 CITY: BLACKWOOD STATE: NJ ZIP: 08012 8-K 1 q404earn.txt FORM 8-K PRESS RELEASE 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 22, 2005 (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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): __ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) __ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) __ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) __ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operation and Financial Condition Metrologic Instruments, Inc. (the "Company") is furnishing herewith as Exhibit 99.1 its Press Release dated February 22, 2005 announcing the Company's earnings for the fourth quarter and year ended December 31, 2004. Item 9.01 Financial Statements and Exhibits. (c) Exhibits 99.1 Metrologic Instruments, Inc. press release dated February 22, 2005 announcing the Company's earnings for the fourth quarter and year ended December 31, 2004 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 23, 2005 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 4 February 22, 2005 announcing the Company's earnings for the fourth quarter ended year ended December 31, 2004. 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 DECEMBER 31, 2004; SALES AND NET INCOME EXCEED HIGH END OF REVISED GUIDANCE ESTIMATES; INITIATES GUIDANCE FOR 2005 Blackwood, New Jersey - February 22, 2005 --Metrologic Instruments, Inc. (NASDAQ-NMS:MTLG), experts in optical image capture and processing solutions, who design, manufacture and market worldwide sophisticated imaging and bar code scanning solutions for a variety of applications, today announced record financial results for the fourth quarter and year ended December 31, 2004. Sales increased 27% to approximately $53.1 million for the fourth quarter of 2004 compared with $41.7 million for the same period last year. Net income was approximately $8.7 million, or $0.38 diluted earnings per share, compared with net income of $5.2 million, or $0.23 diluted earnings per share, for the same period last year. The 2004 fourth quarter results represent a record amount of sales and net income for any quarter in the 36-year history of the Company. Net income for the three months ended December 31, 2004 benefited by approximately $2.3 million or $0.10 per diluted earnings per share due to the difference in the value of the U.S. dollar relative to other foreign currencies, primarily the euro, as compared with the fourth quarter of 2003. This positive effect on earnings from the euro was partially offset by an increase of $1.6 million in expenses due to costs related to ongoing litigation matters and efforts associated with Sarbanes-Oxley Section 404 compliance. The Company also benefited from a lower than expected effective income tax rate of 23% in the fourth quarter of 2004 as a result of the recognition of research and development tax credits. Sales for the year ended December 31, 2004 increased 29% to approximately $178.0 million compared with approximately $138.0 million for 2003. The sales for the year ended December 31, 2004 exceeded the top end of the Company's previously announced guidance range of $170 to $173 million. Net income for the year ended December 31, 2004 was approximately $22.7 million, or $0.99 diluted earnings per share. This compares with net income of $12.0 million, or $0.62 diluted earnings per share for 2003, 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. 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. Net income for the year ended December 31, 2004 also exceeded the top end of the Company's previously announced guidance range of $18.8 million to $19.8 million, or $0.82 to $0.86 diluted earnings per share. Commenting on the fourth quarter and year end results, Benny Noens, Metrologic's Chief Executive Officer and President, stated, "Metrologic's record sales were generated from increases across our key business segments and most geographical territories sequentially quarter to quarter throughout 2004 and over the previous year. We believe that this growth is the result of Metrologic's continued focus on leveraging our core strengths across all business segments and the outstanding execution on our strategy for gaining market share and growing our local presence in key markets. Demand for our products throughout our core business remains strong, particularly in POS, and across all geographies. We have also reorganized our North American Sales organization, the final part of an overall plan designed to optimize our ability to service our customers more efficiently and effectively at the local level. This increase in our local presence and geographic-centric sales focus provides a strong basis for continued growth through 2005 and beyond." 2005 Full Year Outlook: Metrologic also announced its financial forecast for the full year of 2005. Net sales are expected within a range of approximately $206.0 million to $216.0 million. Net income is expected to be in the range of $23.0 million to $25.7 million, or $0.98 to $1.10 diluted earnings per share. The earnings estimate for 2005 assumes that the value of the euro averages for the year at $1.22 to $1.27 U.S. dollars to the euro and the tax rate to be approximately 38%. The Company expects gross margins to remain in the range of 45.5% to 46.5% for 2005. About Metrologic Metrologic Instruments, Inc. designs, manufactures and markets bar code scanning and high-speed automated data capture systems solutions using laser, holographic 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 a variety of highly sophisticated optical systems used by the commercial, government, and scientific communities. 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. For more information please call 1-800-ID-METRO or visit www.metrologic.com. Conference Call The Company has scheduled a conference call on Wednesday, February 23, 2005 at 8:30 a.m. Eastern Time to discuss these financial results. 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; foreign currency fluctuations with the US dollar; changes from the Company's expected gross margin percentage due to a number of factors including product mix, and the timing and extent of cost reduction initiatives; changes in the Company's effective tax rate; 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, international hostilities, and natural disasters. 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, Chief Financial Officer 856.228.8100 856.228.8100 Email: d.fischer@metrologic.com Email: k.bratton@metrologic.com 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, 2004 2003 2004 2003 ---- ---- ---- ---- (Unaudited) Sales $ 53,109 $ 41,702 $ 177,955 $ 138,011 Cost of sales 29,341 23,302 96,227 79,654 --------- --------- --------- --------- Gross profit 23,768 18,400 81,728 58,357 Selling, general and administrative expenses 13,048 8,651 42,518 31,449 Research and development expenses 1,850 1,554 7,521 6,764 --------- --------- --------- --------- Operating income 8,870 8,195 31,689 20,144 Net interest income (expense) 85 (224) 183 (1,291) Other income (expense) 2,360 473 1,976 (12) Gain on extinguishment of debt - - - 2,200 --------- -------- -------- --------- Income before income tax expense 11,315 8,444 33,848 21,041 Income tax expense 2,606 3,208 11,168 7,160 --------- -------- --------- --------- Net income $ 8,709 $ 5,236 $ 22,680 $ 13,881 ========= ======== ======== ========= Earnings per share: Basic $ 0.40 $ 0.26 $ 1.06 $ 0.79 Diluted $ 0.38 $ 0.23 $ 0.99 $ 0.72 Weighted average number of common shares outstanding Basic 21,679 20,390 21,472 17,597 Diluted 23,027 22,609 22,974 19,383 Metrologic Instruments, Inc. Condensed Consolidated Balance Sheets (all amounts in thousands) December 31, December 31, 2004 2003 ---- ---- (Unaudited) Cash and cash equivalents $ 64,715 $ 48,817 Accounts receivable, net 35,153 27,369 Inventories, net 23,865 16,972 Other current assets 4,369 5,450 --------- -------- Total Current Assets 128,102 98,608 Property, plant and equipment, net 19,468 16,940 Goodwill and other intangibles, net 43,462 24,148 Other assets 1,495 204 -------- -------- Total assets $192,527 $139,900 ======== ======== Accounts payable and accrued expenses $ 27,012 $ 19,000 Current portion of debt 16,265 5,207 Deferred contract revenue 1,507 289 -------- --------- Total current liabilities 44,784 24,496 Debt 2,015 320 Other liabilities 7,712 7,476 Total shareholders' equity 138,016 107,608 -------- -------- Total liabilities and shareholders' equity $192,527 $139,900 ======== ======== Supplemental Sales Data Three Months Ended December 31, % % 2004 2003 total growth ---- ---- ----- ------ By Geography North America: POS/OEM $ 12,108 $ 8,169 22.8% 48.2% AOA 10,515 7,866 19.8% 33.7% ---------------------------------- 22,623 16,035 42.6% 41.1% EMEA 21,344 17,860 40.2% 19.5% Asia/ROW 6,440 5,297 12.1% 21.6% South America 2,702 2,510 5.1% 7.6% ----------------------------------- $ 53,109 $ 41,702 100% 27.4% By Business Segment POS/OEM 42,430 33,876 79.9% 25.3% Industrial Scanning 5,883 3,542 11.1% 66.1% Advanced Optical Systems 4,796 4,284 9.0% 12.0% ----------------------------------- $ 53,109 $ 41,702 100.0% 27.4% Twelve Months Ended December 31, % % 2004 2003 total growth ---- ---- ----- ------ By Geography North America: POS/OEM $ 39,669 $ 33,586 22.3% 18.1% AOA 36,412 24,563 20.5% 48.2% ----------------------------------- 76,081 58,149 42.8% 30.8% EMEA 70,819 57,474 39.8% 23.2% Asia/ROW 21,405 14,991 12.0% 42.8% South America 9,650 7,397 5.4% 30.5% ------------------------------------ $177,955 $ 138,011 100.% 28.9% By Business Segment POS/OEM 140,171 112,817 78.8% 24.2% Industrial Scanning 18,475 13,539 10.4% 36.5% Advanced Optical Systems 19,309 11,655 10.8% 65.7% ----------------------------------- $177,955 $ 138,011 100.0% 28.9% -----END PRIVACY-ENHANCED MESSAGE-----