Delaware | 0-18706 | 95-3086563 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1000 Park Drive Lawrence, Pennsylvania | 15055 | |
(Address of Principal Executive Offices) | (Zip Code) |
N/A |
(Former Name or Former Address, if Changed Since Last Report) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
• | Revenues were $218.5 million, down 5% from $229.2 million for the same period last year and down 3% from $224.1 million in the sequential period. |
• | Provision for income taxes was $2.3 million, compared to $2.1 million for the same period last year and compared to a benefit for income taxes of $2.6 million in the sequential period. |
• | Net loss was $0.5 million, compared to net income of $0.8 million for the same period last year and compared to a net loss of $47.7 million in the sequential period. |
• | Diluted loss per share was $0.03, compared to diluted earnings per share of $0.05 for the same period last year and compared to a diluted loss per share of $3.13 in the sequential period. |
• | Operating net income* was $2.0 million, down 43% from $3.5 million for the same period last year and down 4% from $2.1 million in the sequential period. |
• | Operating EPS* was $0.13, down 42% from $0.22 for the same period last year and down 3% from $0.14 in the sequential period. |
• | Cash flow provided by operations was $10.9 million, compared to cash flow used for operations of $7.4 million for the same period last year and cash flow provided by operations of $22.3 million in the sequential period. |
• | We provided $1.7 million to our shareholders in the form of dividends. |
In millions and may not foot due to rounding | July 2, 2016 | March 31, 2016 | ||||
Assets | ||||||
Cash and cash equivalents | $ | 21.4 | $ | 23.5 | ||
Accounts receivable, net | 134.0 | 139.2 | ||||
Inventories, net | 40.0 | 42.7 | ||||
Costs/estimated earnings in excess of billings on uncompleted contracts | 70.1 | 66.7 | ||||
Other assets | 27.9 | 27.3 | ||||
Total current assets | 293.4 | 299.4 | ||||
Property, plant and equipment, net | 34.1 | 34.5 | ||||
Intangibles, net | 75.7 | 78.2 | ||||
Deferred tax asset | 53.8 | 57.1 | ||||
Other assets | 7.3 | 6.7 | ||||
Total assets | $ | 464.2 | $ | 475.8 | ||
Liabilities | ||||||
Accounts payable | $ | 57.2 | $ | 56.8 | ||
Accrued compensation and benefits | 20.8 | 21.5 | ||||
Deferred revenue | 28.9 | 29.4 | ||||
Billings in excess of costs/estimated earnings on uncompleted contracts | 21.3 | 20.4 | ||||
Other liabilities | 38.8 | 42.2 | ||||
Total current liabilities | 166.9 | 170.4 | ||||
Long-term debt | 114.9 | 119.7 | ||||
Other liabilities | 28.7 | 29.5 | ||||
Total liabilities | $ | 310.5 | $ | 319.6 | ||
Stockholders’ equity | ||||||
Common stock | $ | — | $ | — | ||
Additional paid-in capital | 504.1 | 501.8 | ||||
Retained earnings | 78.3 | 80.6 | ||||
Accumulated other comprehensive income (loss) | (15.0 | ) | (13.1 | ) | ||
Treasury stock, at cost | (413.6 | ) | (413.1 | ) | ||
Total stockholders’ equity | $ | 153.7 | $ | 156.2 | ||
Total liabilities and stockholders’ equity | $ | 464.2 | $ | 475.8 | ||
In millions, except per share amounts and may not foot due to rounding | 1Q17 | 4Q16 | 1Q16 | ||||||
Revenues | |||||||||
Products | $ | 39.9 | $ | 39.8 | $ | 40.5 | |||
Services | 178.6 | 184.3 | 188.7 | ||||||
Total | 218.5 | 224.1 | 229.2 | ||||||
Cost of sales | |||||||||
Products | 22.9 | 24.7 | 23.7 | ||||||
Services | 127.9 | 139.8 | 135.9 | ||||||
Total | 150.8 | 164.5 | 159.6 | ||||||
Gross profit | 67.7 | 59.7 | 69.7 | ||||||
Selling, general & administrative expenses | 62.5 | 71.4 | 62.9 | ||||||
Asset impairment loss | — | 34.9 | — | ||||||
Intangibles amortization | 2.5 | 2.5 | 2.6 | ||||||
Operating income (loss) | 2.7 | (49.2 | ) | 4.2 | |||||
Interest expense, net | 1.2 | 1.1 | 1.4 | ||||||
Other expenses (income), net | (0.3 | ) | 0.1 | (0.1 | ) | ||||
Income (loss) before provision for income taxes | 1.9 | (50.4 | ) | 2.8 | |||||
Provision (benefit) for income taxes | 2.3 | (2.6 | ) | 2.1 | |||||
Net income (loss) | $ | (0.5 | ) | $ | (47.7 | ) | $ | 0.8 | |
Earnings (loss) per common share | |||||||||
Basic | $ | (0.03 | ) | $ | (3.13 | ) | 0.05 | ||
Diluted | $ | (0.03 | ) | $ | (3.13 | ) | $ | 0.05 | |
Weighted-average common shares outstanding | |||||||||
Basic | 15.1 | 15.2 | 15.4 | ||||||
Diluted | 15.1 | 15.2 | 15.5 | ||||||
Dividends per share | $ | 0.12 | $ | 0.11 | $ | 0.11 |
In millions and may not foot due to rounding | 1Q17 | 4Q16 | 1Q16 | ||||||
Operating Activities | |||||||||
Net income (loss) | $ | (0.5 | ) | $ | (47.7 | ) | $ | 0.8 | |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities | |||||||||
Intangibles amortization | 2.5 | 2.5 | 2.6 | ||||||
Depreciation | 2.2 | 2.3 | 2.0 | ||||||
Loss (gain) on sale of property | (1.2 | ) | — | — | |||||
Deferred taxes | 2.9 | (1.9 | ) | 2.7 | |||||
Stock compensation expense | 2.2 | 0.8 | 2.3 | ||||||
Change in fair value of interest-rate swaps | — | — | (0.3 | ) | |||||
Asset impairment loss | — | 34.9 | — | ||||||
Provision for obsolete inventory | 0.3 | 7.7 | 0.3 | ||||||
Provision for (recovery of) doubtful accounts | 0.2 | 3.8 | 0.3 | ||||||
Changes in operating assets and liabilities (net of acquisitions) | |||||||||
Accounts receivable | 4.6 | 18.2 | (2.1 | ) | |||||
Inventories | 2.3 | (1.7 | ) | 1.0 | |||||
Costs/estimated earnings in excess of billings on uncompleted contracts | (3.6 | ) | (0.3 | ) | (2.1 | ) | |||
All other assets | (1.2 | ) | (4.0 | ) | 7.0 | ||||
Accounts payable | 0.5 | (0.3 | ) | 0.6 | |||||
Billings in excess of costs/estimated earnings on uncompleted contracts | 0.9 | (4.0 | ) | (0.4 | ) | ||||
All other liabilities | (1.2 | ) | 12.1 | (22.0 | ) | ||||
Net cash provided by (used for) operating activities | $ | 10.9 | $ | 22.3 | $ | (7.4 | ) | ||
Investing Activities | |||||||||
Capital expenditures | $ | (2.1 | ) | $ | (2.4 | ) | $ | (1.9 | ) |
Capital disposals | 1.4 | — | — | ||||||
Acquisition of businesses (payments)/recoveries | — | (0.8 | ) | — | |||||
Net cash provided by (used for) investing activities | $ | (0.7 | ) | $ | (3.1 | ) | $ | (1.9 | ) |
Financing Activities | |||||||||
Proceeds (repayments) from long-term debt | $ | (4.8 | ) | $ | (9.0 | ) | $ | 7.0 | |
Proceeds (repayments) from short-term debt | (4.2 | ) | 0.9 | 2.3 | |||||
Deferred financing costs | (1.0 | ) | — | — | |||||
Purchase of treasury stock | (0.5 | ) | (4.3 | ) | (2.8 | ) | |||
Payment of dividends | (1.7 | ) | (1.7 | ) | (1.5 | ) | |||
Increase (decrease) in cash overdrafts | 0.1 | (0.2 | ) | 1.2 | |||||
Net cash provided by (used for) financing activities | $ | (12.1 | ) | $ | (14.4 | ) | $ | 6.1 | |
Foreign currency exchange impact on cash | $ | (0.2 | ) | $ | 0.7 | $ | 0.1 | ||
Increase/(decrease) in cash and cash equivalents | $ | (2.1 | ) | $ | 5.5 | $ | (3.0 | ) | |
Cash and cash equivalents at beginning of period | 23.5 | 18.0 | 23.5 | ||||||
Cash and cash equivalents at end of period | $ | 21.4 | $ | 23.5 | $ | 20.5 | |||
In millions and may not foot due to rounding | 1Q17 | 4Q16 | 1Q16 | ||||||
Net income (loss) | $ | (0.5 | ) | $ | (47.7 | ) | $ | 0.8 | |
Provision (benefit) for income taxes | 2.3 | (2.6 | ) | 2.1 | |||||
Effective tax rate | 125.6 | % | 5.2 | % | 73.3 | % | |||
Income (loss) before provision for income taxes | $ | 1.9 | $ | (50.4 | ) | $ | 2.8 | ||
Adjustments | |||||||||
Intangibles amortization | $ | 2.5 | $ | 2.5 | $ | 2.6 | |||
Interest rate swap | — | — | (0.3 | ) | |||||
Restructuring expense | — | 6.5 | 0.5 | ||||||
CEO transition costs | — | 1.5 | — | ||||||
Accounts receivable impairment loss | — | 2.4 | — | ||||||
Inventory impairment loss | — | 6.0 | — | ||||||
Loss (gain) on sale of facilities | (1.2 | ) | — | — | |||||
Asset impairment loss | — | 34.9 | — | ||||||
Total pre-tax adjustments | $ | 1.3 | $ | 53.7 | $ | 2.8 | |||
Operating EBIT | $ | 3.1 | $ | 3.4 | $ | 5.7 | |||
Operational effective tax rate | 35.0 | % | 38.5 | % | 38.5 | % | |||
Operational income taxes (1) | 1.1 | 1.3 | 2.2 | ||||||
Operating net income | $ | 2.0 | $ | 2.1 | $ | 3.5 |
1Q17 | 4Q16 | 1Q16 | |||||||
Diluted EPS | $ | (0.03 | ) | $ | (3.13 | ) | $ | 0.05 | |
EPS impact * | 0.16 | 3.27 | 0.17 | ||||||
Operating EPS | $ | 0.13 | $ | 0.14 | $ | 0.22 |
In millions and may not foot due to rounding | 1Q17 | 1Q16 | % Change | |||||
Revenues | $ | 218.5 | $ | 229.2 | (5 | )% | ||
Foreign currency impact - North America Products | — | — | ||||||
Foreign currency impact - North America Services | 0.1 | — | ||||||
Foreign currency impact - International Products | (0.1 | ) | — | |||||
Foreign currency impact - International Services | 0.1 | — | ||||||
Revenues (excluding foreign currency) | $ | 218.6 | $ | 229.2 | (5 | )% |
In millions and may not foot due to rounding | 1Q17 | 4Q16 | % Change | |||||
Revenues | $ | 218.5 | $ | 224.1 | (2 | )% | ||
Foreign currency impact - North America Products | (0.1 | ) | — | |||||
Foreign currency impact - North America Services | (0.2 | ) | — | |||||
Foreign currency impact - International Products | (0.6 | ) | — | |||||
Foreign currency impact - International Services | (0.1 | ) | — | |||||
Revenues (excluding foreign currency) | $ | 217.5 | $ | 224.1 | (3 | )% |
1Q17 | 4Q16 | 1Q16 | ||||
In millions and may not foot due to rounding | $ | % of Rev | $ | % of Rev | $ | % of Rev |
Revenues | ||||||
North America Products | $19.1 | $19.4 | $20.8 | |||
International Products | 20.8 | 20.5 | 19.7 | |||
Products | $39.9 | $39.8 | $40.5 | |||
North America Services | $171.7 | $175.7 | $182.0 | |||
International Services | 6.9 | 8.6 | 6.7 | |||
Services | $178.6 | $184.3 | $188.7 | |||
Total | $218.5 | $224.1 | $229.2 | |||
Gross profit | ||||||
North America Products | $8.9 | 46.8% | $6.8 | 35.0% | $8.9 | 42.6% |
International Products | 8.0 | 38.5% | 8.4 | 40.8% | 7.9 | 40.4% |
Products | $16.9 | 42.5% | $15.1 | 38.0% | $16.8 | 41.5% |
North America Services | $49.1 | 28.6% | $42.7 | 24.3% | $51.1 | 28.1% |
International Services | 1.6 | 22.8% | 1.9 | 21.7% | 1.7 | 25.5% |
Services | $50.7 | 28.4% | $44.5 | 24.2% | $52.8 | 28.0% |
Total | $67.7 | 31.0% | $59.7 | 26.6% | $69.7 | 30.4% |
Operating income (loss) | ||||||
North America Products | $0.9 | 4.7% | $(13.5) | (69.5)% | $1.0 | 4.7% |
International Products | 0.5 | 2.4% | (1.0) | (4.7)% | 0.3 | 1.6% |
Products | $1.4 | 3.5% | $(14.4) | (36.2)% | $1.3 | 3.2% |
North America Services | $1.1 | 0.7% | $(35.3) | (20.1)% | $2.4 | 1.3% |
International Services | 0.2 | 2.7% | 0.5 | 5.9% | 0.5 | 7.3% |
Services | $1.3 | 0.7% | $(34.8) | (18.9)% | $2.8 | 1.5% |
Total | $2.7 | 1.2% | $(49.2) | (21.9)% | $4.2 | 1.8% |
Adjustments | ||||||
North America Products | $— | $14.4 | $— | |||
International Products | 0.1 | 2.5 | 0.1 | |||
Products | $0.1 | $16.9 | $0.1 | |||
North America Services | $1.0 | $36.7 | $3.0 | |||
International Services | 0.1 | 0.1 | — | |||
Services | $1.1 | $36.8 | $3.0 | |||
Total | $1.2 | $53.7 | $3.1 | |||
Adjusted operating income | ||||||
North America Products | $0.9 | 4.9% | $1.0 | 5.1% | $1.0 | 4.8% |
International Products | 0.6 | 2.8% | 1.5 | 7.3% | 0.4 | 2.0% |
Products | $1.5 | 3.8% | $2.5 | 6.2% | $1.4 | 3.4% |
North America Services | $2.1 | 1.2% | $1.4 | 0.8% | $5.3 | 2.9% |
International Services | 0.3 | 4.6% | 0.6 | 7.2% | 0.5 | 7.9% |
Services | $2.4 | 1.4% | $2.1 | 1.1% | $5.9 | 3.1% |
Total | $3.9 | 1.8% | $4.5 | 2.0% | $7.3 | 3.2% |
In millions and may not foot due to rounding | 1Q17 | 4Q16 | 1Q16 | ||||||
Net income (loss) | $ | (0.5 | ) | $ | (47.7 | ) | $ | 0.8 | |
Provision (benefit) for income taxes | 2.3 | (2.6 | ) | 2.1 | |||||
Interest expense, net | 1.2 | 1.1 | 1.4 | ||||||
Intangibles amortization | 2.5 | 2.5 | 2.6 | ||||||
Depreciation | 2.2 | 2.3 | 2.0 | ||||||
EBITDA | $ | 7.8 | $ | (44.5 | ) | $ | 8.8 | ||
Stock compensation expense | 2.2 | 0.8 | 2.3 | ||||||
Operating EBITDA | $ | 10.0 | $ | (0.5 | ) | $ | 11.1 |
In millions and may not foot due to rounding | 1Q17 | 4Q16 | 1Q16 | ||||||
Net cash provided by (used for) operating activities | $ | 10.9 | $ | 22.3 | $ | (7.4 | ) | ||
Net capital expenditures | (0.7 | ) | (2.4 | ) | (1.9 | ) | |||
Foreign currency exchange impact on cash | (0.2 | ) | 0.7 | 0.1 | |||||
Free cash flow before stock option exercises | $ | 9.9 | $ | 20.6 | $ | (9.2 | ) | ||
Proceeds from the exercise of stock options | — | — | — | ||||||
Free cash flow | $ | 9.9 | $ | 20.6 | $ | (9.2 | ) |
Dollars In millions | 1Q17 | 4Q16 | 1Q16 | ||||||
Days sales outstanding | 53 days | 53 days | 54 days | ||||||
Aggregate days sales outstanding | 77 days | 74 days | 80 days | ||||||
Inventory turns | 13.2x | 15.1x | 11.0x | ||||||
Six-month order backlog | $ | 173.8 | $ | 164.2 | $ | 184.2 | |||
Headcount | 3,552 | 3,631 | 3,750 | ||||||
Net Debt | $ | 93.5 | $ | 96.2 | $ | 124.0 | |||
Leverage ratio* | 3.03 | 3.04 | 3.03 |