-----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, URItfd3wZV5ELOTbKyWuwsHXaS+AdZB8aG5LTvFqMKIHT98QdHXknY5BKmkmr1au bvF+y7Xy5CvBiDYhL0oInw== 0001275287-06-001006.txt : 20060222 0001275287-06-001006.hdr.sgml : 20060222 20060221191300 ACCESSION NUMBER: 0001275287-06-001006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060221 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060222 DATE AS OF CHANGE: 20060221 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: 06634412 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 me4900.txt FORM 8-K ================================================================================ 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 21, 2006 (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 (IRS employer file number) 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 21, 2006 announcing the Company's financial results for the fourth quarter and year ended December 31, 2005. The information in this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing. Item 9.01. Financial Statements and Exhibits. (d) Exhibits 99.1 Metrologic Instruments, Inc. press release dated February 21, 2006 announcing the Company's financial results for the fourth quarter and year ended December 31, 2005. 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 21, 2006 Metrologic Instruments, Inc. By: /s/ Kevin J. Bratton ------------------------ Kevin J. Bratton Chief Financial Officer EX-99.1 2 me4900ex991.txt EXHIBIT 99.1 Exhibit 99.1 CORPORATE HEADQUARTERS Metrologic Instruments, Inc. 90 Coles Road Blackwood, NJ 08012-4638 Tel 856.228.8100 Fax 856.228.6673 (sales) Fax 856.228-0653 (finance/legal) www.metrologic.com [LOGO OF METROLOGIC] METROLOGIC ANNOUNCES RECORD FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2005 INITIATES GUIDANCE FOR 2006 TELECONFERENCE 8:30 A.M. WEDNESDAY, FEBRUARY 22, 2006 Blackwood, New Jersey - February 21, 2006 -- Metrologic Instruments, Inc. (NASDAQ-NMS:MTLG) today announced record financial results for the full year and quarter ended December 31, 2005 with total annual revenue of $210.5 million and net income of $25.2 million or $1.09 earnings per fully diluted share. o Sales for the full year 2005 increased by 18.3% to $210.5 million as compared to $178.0 million in 2004. Sales for the quarter ended December 31, 2005 increased by 14.8% to a record $61.0 million as compared with sales of $53.1 million for the same period last year. The fourth quarter 2005 was the highest sales quarter in the Company's 37-year history. o On an annual basis, gross margin was 43.2%, within the annual target range previously announced by the Company. Gross margin for the fourth quarter was 41.8% versus 44.8% for the fourth quarter 2004. Gross margin for the fourth quarter 2005 was impacted by the successful expansion of the Optical Systems business which carries inherently lower margins than our Data Capture and Collection business, the continued growth of shipments to Tier 1 retailers for recently introduced products, and some additional freight and other costs associated with satisfying increased customer demand. o Operating expense as a percentage of revenue declined by 0.9% for the full year 2005 and decreased by 2.2% in the fourth quarter versus the fourth quarter of 2004 as a result of increased operating leverage. Selling, general and administrative (SG&A) expenses increased 5.8% as compared to the fourth quarter of 2004, primarily as a result of the costs associated with the reorganization of our sales force in the EMEA sales region. o For the full year 2005, net income increased 11.2% to a record $25.2 million, or $1.09 earnings per fully diluted share. Net income for the fourth quarter of 2005 was $9.0 million or $0.39 earnings per fully diluted share, compared with net income of $8.7 million or $0.38 earnings per fully diluted share for the fourth quarter of 2004. However, net income for the fourth quarter 2004 included a $2.4 million gain due to foreign currency translation, primarily related to the change in the Euro relative to the value of the US Dollar. The Company benefited from a quarterly tax rate of 10.7% in the fourth quarter of 2005 and resulting effective annual tax rate of 28.8%, primarily due to the benefits afforded by the American Jobs Creation Act of 2004. BUSINESS SEGMENT AND GEOGRAPHICAL HIGHLIGHTS The Data Capture and Collection business segment continued its growth with an increase of 21.1% for the full year 2005 and an 18.1% increase over the fourth quarter of 2004, reflecting solid results from both established and newer Channel partners in several major verticals including retail and healthcare as well as successes with Tier 1 retailers. With robust growth of 38.5% for the full year and 65.5% for the quarter, the Optical Systems business offset the expected weakness in the Industrial Automation business, resulting in an increase of 7.7% for the year and flat quarterly segment results. From a geographic perspective, the EMEA sales organization achieved revenue growth of 18.0% and 22.5% for the full year 2005 and fourth quarter, respectively, reflecting strength in the Channel and continuing success with Tier 1 retailer efforts. Sales in the Asia/Pacific region increased 21.9% for the year and 17.0% for the fourth quarter; a clear reflection that the Company's expanded sales coverage in that region is yielding results. The Americas sales revenue growth was 17.5% for the full year and 7.8% for the fourth quarter of 2005; it is important to note that the fourth quarter of 2004 included several large Tier 1 retailer deals. 2006 FULL YEAR OUTLOOK Metrologic also announced its guidance for the full year 2006. Revenue is expected within a range of $240.0 million to $250.0 million. The Company expects gross margin to be in the range of 43.0% to 44.0% for the year, with the expectation that wide variances may occur quarter to quarter due to product mix, business segment contribution and other factors. Net income for 2006 is expected to be $27.9 million to $29.0 million, or $1.20 to $1.25 earnings per fully diluted share, exclusive of non-cash stock option expense. Factoring in an estimated $1.6 million or $0.07 per fully diluted share for the expensing of non-vested stock options outstanding as of December 31, 2005 as required under SFAS No. 123 ( R), Share-based Payment, net income is expected to be $26.3 million to $27.4 million , or $1.13 to $1.18 per fully diluted share. SFAS No. 123 ( R) became effective for Metrologic as of January 1, 2006. Other factors to consider include an assumed rate for the Euro of $1.20 to $1.25 to the US Dollar and an effective annual tax rate of 36%. These statements do not consider the effect of any acquisitions, dispositions, the results of litigation or other significant Company events that may take place during the year. CONFERENCE CALL INFORMATION The Company will host a conference call for investors on Wednesday, February 22 at 8:30 AM ET. The dial in numbers for the teleconference are: (800) 946-0705 (Domestic/Canada) or (719) 457-2637 (International). Those interested in participating in the conference call should dial in at least 10 minutes prior to commencement of the call. The audio for the conference call will also be available as an audio web cast that can be accessed through the Metrologic web site at www.metrologic.com by clicking on the banner at the bottom of our home page and following the instructions. Also available through our web site will be a graphical presentation that will be referred to throughout the conference call. The graphical presentation will be available for download and printing 30 minutes before the start of the conference call. ABOUT METROLOGIC Metrologic Instruments, Inc. ("Metrologic" or the "Company") is a global supplier of choice for data capture and collection hardware, optical solutions, and image processing software. Metrologic has been delivering innovative, quality products that are cost effective, reliable and supported by a superior level of personal service for nearly 40 years. Metrologic products are sold worldwide through Metrologic's sales, service and distribution offices located in The Americas, EMEA and Asia/Pacific. Metrologic provides its customers not only with a great deal, but a great deal more. For more information please call 1-800-667-8400 or visit www.metrologic.com. FORWARD LOOKING STATEMENTS Forward-looking statements contained in this release are highly dependent upon a variety of important factors which could 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; pricing pressures; competitive factors; sales cycles of Metrologic's products; Metrologic's ability to control manufacturing and operating costs as well as product and revenue mix which affect future profitability; the effect of current and pending legislation on the Company's effective annual tax rate; technological changes in the data capture industry, including the adoption of imaging-based and RFID technologies; availability of patent protection for Metrologic's vision-based technologies, and other products; the results 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. We undertake no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. For additional factors, please see Metrologic's reports filed with the Securities and Exchange Commission. FOR MORE INFORMATION CONTACT: Ann Anthony - Director, Investor Relations 856.228.8100 Email: a.anthony@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, ----------------------- ----------------------- 2005 2004 2005 2004 ---------- ---------- ---------- ---------- Sales $ 60,993 $ 53,109 $ 210,453 $ 177,955 Cost of sales 35,520 29,341 119,638 96,227 ---------- ---------- ---------- ---------- Gross profit 25,473 23,768 90,815 81,728 Selling, general and administrative expenses 13,805 13,048 48,762 42,518 Research and development expenses 1,997 1,850 8,521 7,521 ---------- ---------- ---------- ---------- Operating income 9,671 8,870 33,532 31,689 Net interest income 323 85 580 183 Other income (expense) 36 2,360 1,315 1,976 ---------- ---------- ---------- ---------- Income before income tax expense 10,030 11,315 35,427 33,848 Income tax expense 1,075 2,606 10,218 11,168 ---------- ---------- ---------- ---------- Net income $ 8,955 $ 8,709 $ 25,209 $ 22,680 ========== ========== ========== ========== Earnings per share: Basic $ 0.40 $ 0.40 $ 1.14 $ 1.06 Diluted $ 0.39 $ 0.38 $ 1.09 $ 0.99 Weighted average number of common shares outstanding: Basic 22,271 21,679 22,129 21,472 Diluted 23,150 23,027 23,113 22,974
METROLOGIC INSTRUMENTS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (all amounts in thousands) December 31, December 31, 2005 2004 ------------ ------------ Cash and cash equivalents $ 73,938 $ 64,715 Accounts receivable, net 48,462 35,153 Inventories, net 29,364 23,865 Other current assets 6,400 4,369 ------------ ------------ Total current assets 158,164 128,102 Property, plant and equipment, net 20,402 19,468 Goodwill and other intangibles, net 43,103 43,462 Other assets 1,205 1,495 ------------ ------------ Total assets $ 222,874 $ 192,527 ============ ============ Accounts payable and accrued expenses $ 32,326 $ 27,012 Current portion of debt 18,433 16,265 Deferred contract revenue 739 1,507 ------------ ------------ Total current liabilities 51,498 44,784 Long term debt 3 2,015 Other liabilities 3,687 7,712 Total shareholders' equity 167,686 138,016 ------------ ------------ Total liabilities and shareholders' equity $ 222,874 $ 192,527 ============ ============ SUPPLEMENTAL SALES DATA
Three Months Ended Twelve Months Ended December 31, December 31, ------------------------------------------------ ------------------------------------------------ % % % % 2005 2004 Total Growth 2005 2004 Total Growth ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- BY GEOGRAPHY(1) The Americas $ 27,305 $ 25,325 44.8% 7.8% $ 100,757 $ 85,731 47.9% 17.5% EMEA 26,155 21,344 42.9% 22.5% 83,593 70,819 39.7% 18.0% Asia/Pacific 7,533 6,440 12.3% 17.0% 26,103 21,405 12.4% 21.9% ---------- ---------- ---------- ---------- ---------- ---------- $ 60,993 $ 53,109 100.0% 14.8% $ 210,453 $ 177,955 100.0% 18.3% BY BUSINESS SEGMENT(2) Data Capture and Collection $ 50,131 $ 42,430 82.2% 18.1% $ 169,749 $ 140,171 80.7% 21.1% Industrial Automation/Optical Systems Industrial Automation 2,927 5,883 4.8% -50.2% 13,958 18,475 6.6% -24.4% Optical Systems 7,935 4,796 13.0% 65.5% 26,746 19,309 12.7% 38.5% ---------- ---------- ---------- ---------- ---------- ---------- $ 60,993 $ 53,109 100.0% 14.8% $ 210,453 $ 177,955 100.0% 18.3%
(1) The Company has changed its geographic categories from North America, previously comprised of POS/OEM and AOA, EMEA, Asia/ROW and South America, to The Americas, EMEA and Asia/Pacific which is more consistent with how the Company looks at its business. (2) As previously noted in our Annual Report on Form 10-K filed with the SEC on March 15, 2005, the Company has changed its business segment titles from "POS/OEM" to "Data Capture and Collection", and from "Industrial/Optical Systems" to "Industrial Automation/Optical Systems". -----END PRIVACY-ENHANCED MESSAGE-----