-----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, BqgA7MSm6d0e9oq5lknTmf42dFemnmZp8TQZwreKriCmyCvUVbkwbRyC2cz08OjD oTkE1UIo00hKkDIBSmjO+w== 0001157523-07-007752.txt : 20070802 0001157523-07-007752.hdr.sgml : 20070802 20070802155615 ACCESSION NUMBER: 0001157523-07-007752 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070802 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070802 DATE AS OF CHANGE: 20070802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ULTRALIFE BATTERIES INC CENTRAL INDEX KEY: 0000875657 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690] IRS NUMBER: 161387013 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20852 FILM NUMBER: 071020450 BUSINESS ADDRESS: STREET 1: 2000 TECHNOLOGY PARKWAY CITY: NEWARK STATE: NY ZIP: 14513 BUSINESS PHONE: 3153327100 MAIL ADDRESS: STREET 1: 2000 TECHNOLOGY PARKWAY CITY: NEWARK STATE: NY ZIP: 14513 8-K 1 a5463332.txt ULTRALIFE BATTERIES, INC. 8-K UNITED STATES 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 (Date of earliest event reported): August 2, 2007 ULTRALIFE BATTERIES, INC. ------------------------- (Exact name of registrant as specified in its charter) Delaware -------- (State or other jurisdiction of incorporation or organization) 0-20852 16-1387013 ------- ---------- (Commission File Number) (I.R.S. Employer Identification No.) 2000 Technology Parkway, Newark, New York 14513 --------------------------------------------------- (Address of principal executive offices) (Zip Code) (315) 332-7100 -------------- (Registrant's telephone number, including area code) 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: [ ] 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 Operations and Financial Condition. Ultralife Batteries reported record revenues of $35.2 million for its second quarter of 2007, an increase of 65% compared with $21.4 million reported in the same three-month period in 2006. Operating income rose more than three-fold to $1.7 million compared with $0.5 million a year ago. The Company's press release is attached as Exhibit 99.1 to this Form 8-K. The information set forth in this Form 8-K and the attached exhibit is being furnished to and not filed with the Securities and Exchange Commission and shall not be deemed to be incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act of 1933, as amended, except to the extent specifically provided in any such filing. Item 9.01. Financial Statements, Pro Forma Financials and Exhibits. (a) Financial Statements of Business Acquired. Not applicable. (b) Pro Forma Financial Information. Not applicable. (c) Exhibits. 99.1 Press Release dated August 2, 2007. SIGNATURE 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. ULTRALIFE BATTERIES, INC. Dated: August 2, 2007 By: /s/ Robert W. Fishback -------------------------- Robert W. Fishback Vice President of Finance and CFO INDEX TO EXHIBITS (99) Additional Exhibits 99.1 Press Release dated August 2, 2007. EX-99.1 2 a5463332ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Ultralife Batteries Reports Second Quarter Results Revenues Increase 65% to $35.2 Million NEWARK, N.Y.--(BUSINESS WIRE)--Aug. 2, 2007--Ultralife Batteries, Inc. (NASDAQ: ULBI) reported record revenues of $35.2 million for its second quarter of 2007, an increase of 65% compared with $21.4 million reported in the same three-month period in 2006. Operating income rose more than three-fold to $1.7 million compared with $0.5 million a year ago. Second quarter revenues grew $13.8 million year-over-year due in part to higher sales to international governments and defense organizations, as well as the addition of communications accessories sales from the McDowell acquisition which the company completed in mid-2006. As a percentage of revenues, gross margin for the second quarter of 2007 was 24%, up from 20% a year ago due to higher sales and production volumes and a shift toward more highly engineered products. Operating expenses totaled $6.9 million, which included $1.4 million of additional expenses and $0.6 million of intangible asset amortization connected with last year's acquisitions. Excluding these items, operating expenses rose $1.0 million over the $3.9 million reported in the comparable quarter last year due to increased corporate costs required to operate a larger, more diverse business. Net interest expense was $0.6 million in the second quarter of 2007, up from $0.2 million reported in the prior year due to the increased debt to finance last year's acquisitions. Net income for the second quarter of 2007 was $1.3 million, or $0.08 per diluted share, compared with net income of $109,000, or $0.01 per share, for the same quarter in 2006. For the six-month period ended June 30, 2007, revenues totaled $67.5 million compared to $39.7 million for the same period a year ago. Operating income amounted to $2.3 million for the first half of 2007, an increase of $1.6 million over 2006. Net income for the first half of 2007 was $1.3 million, or $0.08 per diluted share, compared to $249,000, or $0.02 per share, for the same period last year. "Second quarter results offer solid evidence of the success we have achieved in diversifying the company's government/defense revenue mix and in broadening the range of our product offering, coupled with our commitment to improving operational efficiencies," said John D. Kavazanjian, Ultralife's president and chief executive officer. "Second quarter revenue marked the fourth consecutive quarter of year-over-year growth and surpassed last quarter's record level. In addition, we continued to drive gross margin expansion as we increased the contribution of higher engineered products and improved manufacturing efficiencies. Asset utilization also improved with inventory levels and revolver borrowings down from the first quarter." "To build on these positive trends in margins and asset utilization, we are continuing to push for margin improvement in our communications accessories business and for even better operational efficiencies across the organization," continued Kavazanjian. "At the same time, we are addressing an ever-widening set of growth opportunities as demand for portable power in new and existing applications is proliferating in both government/defense and commercial markets. With an expanding portfolio of high performance products, supported by our unrivaled product development capability and engineering expertise, and an established global distribution network, we are in an excellent position to translate these opportunities into continued profitable revenue growth." Outlook Management is projecting revenue between $33 million and $36 million for its third quarter ending September 29, 2007, based on current backlog, anticipated orders and anticipated delivery schedules. Based on this revenue estimate, management anticipates reporting operating income in the range of $1.2 million to $1.8 million, inclusive of approximately $1.0 million of non-cash expenses related to stock-based compensation and intangible asset amortization. About Ultralife Batteries, Inc. Ultralife is a global provider of high-energy power solutions and communications accessories for diverse applications. The company develops, manufactures and markets a wide range of non-rechargeable and rechargeable batteries, charging systems and accessories including power supplies, amplifiers, amplified speakers, equipment mounts, case equipment and integrated communication systems for markets including defense, commercial and consumer portable electronics. Through its portfolio of standard products and engineered solutions, Ultralife is at the forefront of providing the next generation of power systems and accessories. Defense, commercial and retail customers include: General Dynamics, Philips Medical Systems, General Motors, Energizer, Kidde Safety, Lowe's, Radio Shack and the national defense agencies of the United States, United Kingdom, Germany, Australia and New Zealand, among others. Ultralife's headquarters, principal manufacturing and research facilities are in Newark, New York, near Rochester. Ultralife's three other operating units are: Ultralife Batteries (UK) Ltd., in Abingdon, England; McDowell Research in Waco, Texas; and ABLE New Energy in Shenzhen, China. Detailed information on Ultralife is available at: www.ultralifebatteries.com. This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include: Worsening global economic conditions, increased competitive environment and pricing pressures, disruptions related to restructuring actions and delays. Further information on these factors and other factors that could affect Ultralife's financial results is included in Ultralife's Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K. Conference Call Information Investors are invited to listen to a live webcast of the conference call at 10:00 a.m. ET on August 2, 2007 at http://investor.ultralifebatteries.com. To listen to the live call, please go to the web site at least fifteen minutes early to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location for 90 days. Investors may also listen to a telephone replay of the conference call by dialing 888-203-1112, Reservation 2728461, during the period starting at 1:00 p.m. ET August 2 and ending at 1:00 p.m. ET August 9, 2007. Ultralife(R) is a registered trademark of Ultralife Batteries, Inc. ULTRALIFE BATTERIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands, Except Per Share Amounts) (Unaudited) - ---------------------------------------------------------------------- Three-Month Periods Ended Six-Month Periods Ended June 30, July 1, June 30, July 1, 2007 2006 2007 2006 ------------ ------------ ----------- ----------- Revenues: Non-rechargeable products $ 22,808 $ 18,458 $ 40,966 $ 34,103 Rechargeable products 4,561 2,648 10,090 5,213 Communications accessories 7,688 - 16,179 - Technology contracts 139 287 281 396 ------------ ------------ ----------- ----------- Total revenues 35,196 21,393 67,516 39,712 Cost of products sold: Non-rechargeable products 16,607 14,900 30,217 27,223 Rechargeable products 3,618 1,859 7,785 3,728 Communications accessories 6,237 - 13,208 - Technology contracts 117 257 188 414 ------------ ------------ ----------- ----------- Total cost of products sold 26,579 17,016 51,398 31,365 ------------ ------------ ----------- ----------- Gross margin 8,617 4,377 16,118 8,347 Operating expenses: Research and development 1,688 884 3,302 1,844 Selling, general, and administrative 5,212 3,032 10,508 5,814 ------------ ------------ ----------- ----------- Total operating expenses 6,900 3,916 13,810 7,658 ------------ ------------ ----------- ----------- Operating income 1,717 461 2,308 689 Other income (expense): Interest income 18 40 32 85 Interest expense (604) (207) (1,261) (412) Gain on insurance settlement - 43 - 191 Miscellaneous 167 139 183 147 ------------ ------------ ----------- ----------- Income before income taxes 1,298 476 1,262 700 ------------ ------------ ----------- ----------- Income tax provision- current - 20 - 24 Income tax provision- deferred - 347 - 427 ------------ ------------ ----------- ----------- Total income taxes - 367 - 451 ------------ ------------ ----------- ----------- Net income $ 1,298 $ 109 $ 1,262 $ 249 ============ ============ =========== =========== Earnings per share - basic $ 0.09 $ 0.01 $ 0.08 $ 0.02 ============ ============ =========== =========== Earnings per share - diluted $ 0.08 $ 0.01 $ 0.08 $ 0.02 ============ ============ =========== =========== Weighted average shares outstanding - basic 15,123 14,851 15,100 14,807 ============ ============ =========== =========== Weighted average shares outstanding - diluted 15,331 15,165 15,320 15,150 ============ ============ =========== =========== ULTRALIFE BATTERIES, INC. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Per Share Amounts) (unaudited) - ---------------------------------------------------------------------- June 30, December 31, ASSETS 2007 2006 -------- ------------ Current assets: Cash and investments $553 $720 Trade accounts receivable, net 23,190 24,197 Inventories 30,554 27,360 Prepaid expenses and other current assets 2,897 3,603 -------- ------------ Total current assets 57,194 55,880 Property and equipment 19,396 19,396 Other assets Goodwill, intangible and other assets 22,832 22,482 -------- ------------ Total Assets $99,422 $97,758 ======== ============ LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term debt and current portion of long- term debt $13,110 $12,246 Accounts payable 14,480 15,925 Other current liabilities 8,479 9,639 -------- ------------ Total current liabilities 36,069 37,810 -------- ------------ Long-term liabilities: Long-term debt and capital lease obligations 20,350 20,043 Other long-term liabilities 482 316 -------- ------------ Total long-term liabilities 20,832 20,359 -------- ------------ Shareholders' equity: Common stock, par value $0.10 per share 1,586 1,578 Capital in excess of par value 136,071 134,736 Accumulated other comprehensive income 6 (321) Accumulated deficit (92,764) (94,026) -------- ------------ 44,899 41,967 Less -- Treasury stock, at cost 2,378 2,378 -------- ------------ Total shareholders' equity 42,521 39,589 -------- ------------ Total Liabilities and Shareholders' Equity $99,422 $97,758 ======== ============ CONTACT: Ultralife Batteries, Inc. Robert W. Fishback, (315) 332-7100 bfishback@ulbi.com or Investor Relations: Lippert/Heilshorn & Associates, Inc. Jody Burfening, (212) 838-3777 jburfening@lhai.com -----END PRIVACY-ENHANCED MESSAGE-----