0001445260-12-000047.txt : 20121211 0001445260-12-000047.hdr.sgml : 20121211 20121211085916 ACCESSION NUMBER: 0001445260-12-000047 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20121211 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20121211 DATE AS OF CHANGE: 20121211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ADDVANTAGE TECHNOLOGIES GROUP INC CENTRAL INDEX KEY: 0000874292 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-DURABLE GOODS [5000] IRS NUMBER: 731351610 STATE OF INCORPORATION: OK FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10799 FILM NUMBER: 121254986 BUSINESS ADDRESS: STREET 1: 1221 E. HOUSTON CITY: BROKEN ARROW STATE: OK ZIP: 74012 BUSINESS PHONE: 9182519121 MAIL ADDRESS: STREET 1: 1221 EAST HOUSTON STREET CITY: BROKEN ARROW STATE: OK ZIP: 74012 FORMER COMPANY: FORMER CONFORMED NAME: ADDVANTAGE MEDIA GROUP INC /OK DATE OF NAME CHANGE: 19930328 8-K 1 q4_12112012-8k.htm QUARTER 4 2012 EARNINGS RELEASE 8-K q4_12112012-8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported) December 11, 2012

ADDVANTAGE TECHNOLOGIES GROUP, INC.
(Exact name of Registrant as specified in its Charter)

Oklahoma
(State or other Jurisdiction of Incorporation)

1-10799
73-1351610
(Commission file Number)
(IRS Employer Identification No.)
   
1221 E. Houston, Broken Arrow Oklahoma
74012
(Address of Principal Executive Offices)
(Zip Code)

(918) 251-9121
(Registrant's Telephone Number, Including Area Code)


(Former Name or Former Address, if Changed Since Last Report)

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 InstructionA.2. below):

□
Written Communication 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© under the Exchange Act (17 CFR 240.13e-4(c))


 
Item 2.02 Results of Operation and Financial Condition.
 
ADDvantage Technologies Group, Inc. (NASDAQ: AEY), today announced its financial results for the three month period and year ended September 30, 2012. A copy of the press release is furnished as Exhibit 99.1 to this Current Report and is incorporated herein by reference.
 
Item 7.01 Regulation FD Disclosure.
 
As previously announced, the Company will host a conference call on Tuesday, December 11, 2012, at 12:00 p.m. Eastern Time featuring remarks by Ken Chymiak, Chairman of the Board, David Humphrey, President and Chief Executive Officer, Dave Chymiak, Chief Technology Officer, and Scott Francis, Chief Financial Officer. The conference call will be available via webcast and can be accessed through the Investor Relations section of ADDvantage's website, www.addvantagetechnologies.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet broadcast. The dial-in number for the conference call is (888)-503-8169 (domestic) or (719)-325-2455 (international).  All dial-in participants must use the following code to access the call: 1343147. Please call at least five minutes before the scheduled start time.

For interested individuals unable to join the conference call, a replay of the call will be available through December 25, 2012 at (877) 870-5176 (domestic) or (858) 384-5517 (international). Participants must use the following code to access the replay of the call: 1343147. The online archive of the webcast will be available on the Company's website for 30 days following the call.
 
Item 9.01 Financial Statements and Exhibits.
 
(d) Exhibits
 
The following exhibit is furnished herewith:
 
Exhibit 99.1
Press Release dated December 11, 2012 issued by the Company.
 
 
SIGNATURES
  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

   
ADDVANTAGE TECHNOLOGIES GROUP, INC.
     
   
Date: December 11, 2012
     
   
By: /s/ Scott Francis
   
Scott Francis
   
Vice-President & Chief Financial Officer
     


Exhibit Index

Exhibit Number
Description
99.1
Press Release dated December 11, 2012 issued by the Company.
EX-99.1 2 pressrelease_12112012.htm PRESS RELEASE - Q4 2012 EARNINGS pressrelease_12112012.htm
ADDvantage Technologies Group, Inc.
1221 E. Houston
Broken Arrow, Oklahoma 74012

For further information
KCSA Strategic Communications
Company Contact:
Garth Russell / Diane Imas
Scott Francis        (9l8) 25l-9121
(212) 896-1250 / (212) 896-1242
grussell@kcsa.com / dimas@kcsa.com

ADDvantage Technologies Announces Financial Results for the
Fiscal Fourth Quarter of 2012
- - -
Total revenue of $35.2 million and net income of $0.12 per diluted share for fiscal year 2012
- - -
Total revenue of $8.5million and net income of $0.04 per diluted share for the fourth quarter of fiscal year 2012

BROKEN ARROW, Oklahoma, December 11, 2012 – ADDvantage Technologies Group, Inc. (NASDAQ: AEY), today announced its results for the three month period and year ended September 30, 2012.

Revenue for the three months ended September 30, 2012 decreased 25% to $8.5 million compared to $11.3 million for the same period last year. New equipment sales were $5.1 million for the three months ended September 30, 2012 as compared to $7.0 million for the three months ended September 30, 2011.  Net refurbished equipment sales were $2.2 million for the three months ended September 30, 2012 as compared to $2.8 million for the same period last year.  Sales of new and refurbished equipment continued to be negatively impacted by several factors including the continued decrease in plant expansions and bandwidth upgrades in the cable television industry.  Service revenue decreased to $1.2 million for the three month period ended September 30, 2012 compared to $1.5 million for the same period last year.

Net income was $0.4 million, or $0.04 per diluted share, for the three month period ended September 30, 2012, compared to $0.7 million, or $0.07 per diluted share, for the same period of 2011.  Net income for the fourth quarter of fiscal 2012 benefited from a $0.2 million reduction in interest expense compared to the same period last year, which was a result of the Company paying off one of its term loans in March 2012 and the termination of the associated interest rate swap agreement.

For the twelve months ended September 30, 2012, revenue decreased to $35.2 million from $38.1 million for the same period last year. The decrease in equipment sales was primarily due to the continued decrease in plant expansions and bandwidth upgrades in the cable television industry, partially offset by revenue from Adams Global Communications, which was acquired in May 2011.

Net income attributable to common stockholders for the twelve month period was $1.3 million, or $0.12 per diluted share, as compared to $2.5 million, or $0.25 per diluted share, for the twelve months of fiscal 2011.  Net income for fiscal 2012 included a charge to interest expense of $0.8 million for the termination of the interest rate swap agreement, partially offset by reduced interest expense of $0.4 million subsequent to paying off one of its term loans and terminating the associated interest rate swap agreement.
 
 
David Humphrey, President and CEO, commented, “Our results continue to reflect a general weakness in equipment sales in the cable television industry.  However, we still maintained our gross margins at approximately 30% and generated $1.3 million of net income in fiscal year 2012.  We also improved our overall balance sheet position in fiscal year 2012 by paying off one of our term loans and terminating the associated interest rate swap agreement.
 
 
 
 
“This year, the Company began to make changes to the management team and our business to better position our Company for growth both organically and through acquisitions.  There are more management changes that will be made in the coming months in order to properly align our corporate structure with our growth strategy.

“We continue to generate positive cash flow from our existing business and have a strong balance sheet in order to implement this growth strategy.  This has been partially supported by acquisitions that have added sales through new suppliers to our core resale business or expanded our existing customer base within our current business, such as Adams Global Communications in May 2011.  Looking ahead, we are currently seeking new acquisition opportunities that will enable us to expand the scope of our business within the cable industry,” concluded Mr. Humphrey.

Earnings Conference Call
As previously announced, the Company will host a conference call on Tuesday, December 11, 2012, at 12:00 p.m. Eastern Time featuring remarks by Ken Chymiak, Chairman of the Board, David Humphrey, President and Chief Executive Officer, Dave Chymiak, Chief Technology Officer, and Scott Francis, Chief Financial Officer. The conference call will be available via webcast and can be accessed through the Investor Relations section of ADDvantage's website, www.addvantagetechnologies.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet broadcast. The dial-in number for the conference call is (888)-503-8169 (domestic) or (719)-325-2455 (international).  All dial-in participants must use the following code to access the call: 1343147. Please call at least five minutes before the scheduled start time.

For interested individuals unable to join the conference call, a replay of the call will be available through December 25, 2012 at (877) 870-5176 (domestic) or (858) 384-5517 (international). Participants must use the following code to access the replay of the call: 1343147. The online archive of the webcast will be available on the Company's website for 30 days following the call.

About ADDvantage Technologies Group, Inc.
ADDvantage Technologies Group, Inc. supplies the cable television (CATV) industry with a comprehensive line of new and used system-critical network equipment and hardware from leading manufacturers, including Cisco, Motorola, ARRIS and Fujitsu Frontech North America, as well as operating a national network of technical repair centers.  The equipment and hardware ADDvantage distributes is used to acquire, distribute, and protect the broad range of communications signals carried on fiber optic, coaxial cable and wireless distribution systems, including television programming, high-speed data (Internet) and telephony.

ADDvantage operates through its subsidiaries, Tulsat, Tulsat-Atlanta, Tulsat-Nebraska, Tulsat-Texas, NCS Industries, ComTech Services and Adams Global Communications. For more information, please visit the corporate web site at www.addvantagetechnologies.com.


The information in this announcement may include forward-looking statements.  All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements.  These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements.  A complete discussion of these risks and uncertainties is contained in the Company’s reports and documents filed from time to time with the Securities and Exchange Commission.

(Tables follow)


 
 
 


ADDVANTAGE TECHNOLGIES GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

   
Three Months Ended September 30,
    
Year Ended September 30,
  
   
2012
    
2011
    
2012
    
2011
  
Sales:
                        
Net new sales income
   $ 5,126,330     $ 6,956,791     $ 20,743,264     $ 25,467,734  
Net refurbished sales income
     2,167,944       2,805,656       9,814,763       7,430,603  
Net service income
     1,188,005       1,495,727       4,658,376       5,181,193  
Total net sales
     8,482,279       11,258,174       35,216,403       38,079,530  
Cost of sales
     5,975,012       7,838,998       24,854,960       26,528,682  
Gross profit
     2,507,267       3,419,176       10,361,443       11,550,848  
Operating, selling, general and administrative expenses
     1,843,382       1,939,857       7,231,097       6,625,907  
Income from operations
     663,885       1,479,319       3,130,346       4,924,941  
Interest expense
     7,192       165,930       1,113,854       696,634  
Income before income taxes
     656,693       1,313,389       2,016,492       4,228,307  
Provision for income taxes
     236,000       584,000       766,000       1,692,000  
Net income
     420,693       729,389       1,250,492       2,536,307  
                                 
Other comprehensive income:
                                
Unrealized gain (loss) on interest rate
swap, net of taxes
     –       (11,528 )     587,258       189,425  
                                 
Comprehensive income
   $ 420,693     $ 717,861     $ 1,837,750     $ 2,725,732  
                                 
Earnings per share:
                                
Basic
   $ 0.04     $ 0.07     $ 0.12     $ 0.25  
Diluted
   $ 0.04     $ 0.07     $ 0.12     $ 0.25  
Shares used in per share calculation:
                                
Basic
     10,189,120       10,207,390       10,196,241       10,175,213  
Diluted
     10,189,563       10,209,323       10,197,496       10,178,763  


 
 
 


ADDVANTAGE TECHNOLGIES GROUP, INC.
CONSOLIDATED BALANCE SHEETS

   
September 30,
  
   
2012
    
2011
  
Assets
            
Current assets:
            
Cash and cash equivalents
   $ 5,191,514     $ 10,943,654  
Accounts receivable, net of allowance of $300,000
     3,050,796       4,244,049  
Income tax refund receivable
     409,386       349,745  
Inventories, net of allowance for excess and obsolete
                
inventory of $1,000,000 and $1,556,000, respectively
     22,666,385       25,777,747  
Prepaid expenses
     129,357       177,486  
Deferred income taxes
     920,000       1,059,000  
Total current assets
     32,367,438       42,551,681  
                 
Property and equipment, at cost:
                
Land and buildings
     8,794,272       8,683,679  
Machinery and equipment
     2,953,949       2,856,615  
Leasehold improvements
     9,633       205,797  
Total property and equipment, at cost
     11,757,854       11,746,091  
Less accumulated depreciation and amortization
     (3,666,327 )     (3,392,329 )
Net property and equipment
     8,091,527       8,353,762  
                 
Other assets:
                
Deferred income taxes
     –       403,000  
Goodwill
     1,560,183       1,560,183  
Other assets
     13,778       19,245  
Total other assets
     1,573,961       1,982,428  
                 
Total assets
   $ 42,032,926     $ 52,887,871  
                 
                 
Liabilities and Shareholders’ Equity
                
Current liabilities:
                
Accounts payable
   $ 1,437,492     $ 2,675,907  
Accrued expenses
     1,030,174       1,240,224  
Notes payable – current portion
     184,008       1,814,008  
Total current liabilities
     2,651,674       5,730,139  
                 
Notes payable, less current portion
     1,502,612       10,244,120  
Deferred income taxes
     62,000       –  
Other liabilities
     –       957,258  
                 
Shareholders’ equity:
                
Common stock, $.01 par value; 30,000,000 shares authorized;
10,465,323 and 10,431,354 shares issued, respectively;
10,189,120 and 10,207,390 shares outstanding, respectively
       104,653         104,314  
Paid in capital
     (5,748,503 )     (5,884,521 )
Retained earnings
     43,980,590       42,730,098  
Accumulated other comprehensive loss:
                
Unrealized loss on interest rate swap, net of tax
     –       (587,258 )
Total shareholders’ equity before treasury stock
     38,336,740       36,362,633  
                 
Less: Treasury stock, 276,203 and 223,964 shares, respectively,
at cost
     (520,100 )     (406,279 )
Total shareholders’ equity
     37,816,640       35,956,354  
                 
Total liabilities and shareholders’ equity
   $ 42,032,926     $ 52,887,871