EX-99.1 2 int061902_ex99-1.txt PRESS RELEASE DATED APRIL 26, 2006 FOR IMMEDIATE RELEASE --------------------- INTRICON REPORTS 2006 FIRST-QUARTER RESULTS; SALES UP 21 PERCENT OVER PRIOR-YEAR PERIOD ST. PAUL, MINN. -- APRIL 26, 2006 -- INTRICON CORPORATION (AMEX: IIN), a designer, developer, manufacturer and distributor of miniature and micro-miniature medical and electronic products, today announced financial results for its first quarter ended March 31, 2006. For the first quarter, the company reported sales of $11.8 million, up from $9.8 million for the 2005 first quarter, a gain of 21 percent. Sales also rose sequentially from $11.2 million for a 6 percent increase from sales reported in the fourth quarter of 2005. IntriCon had a net loss for the 2006 first quarter of $141,000, or $0.03 per share, versus earnings of $210,000, or $0.04 per share, for the year-ago period, which included income from discontinued operations of $464,000. The current year loss includes $44,000, or $0.01 per share, due to the 2006 adoption of FAS 123(R) expensing for stock options. "We are pleased with the strong demand we saw for our products in the first quarter, which represents a great start for the year. The company's small loss stems primarily from new project inefficiencies," said Mark S. Gorder, president and chief executive officer of IntriCon. "We expect improvement going forward." For the 2006 three-month period, IntriCon recorded a loss from continuing operations of $141,000, or $0.03 per share, improved from a loss from continuing operations of $254,000, or $0.05 per share, for the prior-year period. BUSINESS UPDATE As previously reported, the company closed on the acquisition of the Amecon Corporation in the fourth quarter of 2005. This business has now been successfully integrated into the company's existing electronic components facility in Anaheim, Calif. Recently, IntriCon and CEO Mark Gorder were named finalists in the 2006 Ernst & Young Entrepreneur of the Year(R) competition, which recognizes outstanding entrepreneurs who are building and leading dynamic and growing businesses. (more) IntriCon 2006 First-Quarter Results April 26, 2006 Page 2 Gorder stated: "All of our employees can be proud of this recognition. The nomination is an acknowledgement of the company's turnaround, which was propelled by solid sales gains in key markets after we divested non-core operations. IntriCon is now focused on four markets: medical, hearing health, professional audio and electronics. "We expect further growth by concentrating on our core product lines and accelerating the pace of new product introductions, which combined with our continued customer relationships and cost reductions, should lead to ongoing success as we move forward," Gorder concluded. ABOUT INTRICON CORPORATION Headquartered in Arden Hills, Minn., the IntriCon Corporation designs, develops and manufactures miniature and micro-miniature medical and electronic products. The company is focused on four key markets: medical, hearing health, professional audio and communications, and electronics. IntriCon has facilities in the United States, Asia and Europe. The company's common stock trades under the symbol "IIN" on the American Stock Exchange. For more information about IntriCon, visit www.intricon.com. FORWARD-LOOKING STATEMENTS Statements made in this release and in IntriCon's other public filings and releases that are not historical facts or that include forward-looking terminology such as "may", "will", "believe", "expect", "should", "optimistic" or "continue" or the negative thereof or other variations thereon are "forward-looking statements" within the meaning of the Securities Exchange Act of 1934 as amended. These forward-looking statements include, without limitation, statements concerning future growth, future financial condition and performance, prospects, the positioning of the company to compete in chosen markets. These forward-looking statements are affected by known and unknown risks, uncertainties and other factors that are beyond the company's control, and may cause the company's actual results, performance or achievements to differ materially from the results, performance and achievements expressed or implied in the forward-looking statements. These risks, uncertainties and factors include, without limitation, the risk that the company may not be able to achieve its long-term strategy, weakening demand for products of the company due to general economic conditions, possible non-performance of developing technological products, the volume and timing of orders received by the company, changes in the mix of products sold, competitive pricing pressures, availability of electronic components for the company's products, ability to create and market products in a timely manner, competition by competitors with more resources than the company, foreign currency risks arising from the company's foreign operations and other risks detailed from time to time in the company's filings with the Securities and (more) IntriCon 2006 First-Quarter Results April 26, 2006 Page 3 Exchange Commission, including the Annual Report on Form 10-K for the year ended December 31, 2005. The company disclaims any intent or obligation to publicly update or revise any forward-looking statements, regardless of whether new information becomes available, future developments occur or otherwise. CONTACT: IntriCon Corporation, St. Paul, MN Bill Kullback Chief Financial Officer 651-604-9638 BKullback@intricon.com (more) IntriCon 2006 First-Quarter Results April 26, 2006 Page 4 INTRICON CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED March 31, March 31, 2006 2005 ------------ ------------ Sales, net ....................................... $ 11,836,133 $ 9,786,174 Costs of sales ................................... 9,069,723 7,403,802 ------------ ------------ Gross profit ..................................... 2,766,410 2,382,372 Operating expenses: Selling expense .................................. 902,421 803,598 General and administrative expense (a) ........... 1,305,409 1,252,414 Research and development expense ................. 568,983 406,934 ------------ ------------ Total operating expenses ....................... 2,776,813 2,462,946 Operating loss ................................... (10,403) (80,574) Interest expense ................................. (156,527) (112,043) Interest income .................................. 21,893 -- Other expense, net ............................... (34,285) (34,916) ------------ ------------ Loss from continuing operations before Income taxes ................................. (179,322) (157,701) Income taxes expense (benefit) ................... (37,913) 95,824 ------------ ------------ Loss from continuing operations .................. (141,409) (253,525) Income from discontinued operations, net of income taxes .............. -- 463,756 Net income (loss) ................................ $ (141,409) $ 210,231 ============ ============ Net earnings (loss) per share (basic and diluted): Continuing operations ....................... $ (.03) $ (.05) Discontinued operations ..................... -- .09 ------------ ------------ Net income (loss) ........................... $ (.03) $ .04 ============ ============ Average shares outstanding: Basic and diluted ......................... 5,151,942 5,129,214
(a) General and administrative expense includes $44,261 of non-cash stock option expense related to the adoption of FAS 123(R). (more) IntriCon 2006 First-Quarter Results April 26, 2006 Page 5 INTRICON CORPORATION CONSOLIDATED BALANCE SHEETS ASSETS
March 31, December 31, 2006 2005 ----------- ----------- (unaudited) Current assets Cash ........................................................... $ 892,171 $ 1,109,402 Restricted cash ............................................... 60,158 60,158 Accounts receivable, less allowance for doubtful accounts of $380,000 in 2006 and $370,000 in 2005 ...................... 6,568,789 6,925,357 Inventories .................................................... 6,922,968 6,950,243 Refundable income taxes ........................................ 64,717 77,143 Other current assets ........................................... 413,148 454,053 ----------- ----------- Total current assets ........................................ 14,921,951 15,576,356 Property, plant and equipment Land ........................................................ 170,500 170,500 Buildings ................................................... 1,732,914 1,732,914 Machinery and equipment ..................................... 26,887,737 26,423,956 ----------- ----------- 28,791,151 28,327,370 Less: accumulated depreciation .............................. 21,897,378 21,455,955 ----------- ----------- Net property, plant and equipment ......................... 6,893,773 6,871,415 Note receivable from sale of discontinued operations, less allowance of $296,000 ................................................... 503,923 503,923 Goodwill 5,867,239 5,754,219 Other assets, net .................................................. 898,404 929,474 ----------- ----------- $29,085,290 $29,635,387 =========== ===========
(more) IntriCon 2006 First-Quarter Results April 26, 2006 Page 6
March 31, December 31, 2006 2005 LIABILITIES AND SHAREHOLDERS' EQUITY ------------ ------------ (unaudited) Current liabilities Checks written in excess of cash ....................................... $ 369,565 $ 397,999 Current maturities of long-term debt ................................... 632,799 888,531 Accounts payable ....................................................... 3,431,592 3,136,555 Income taxes payable ................................................... 248,730 298,914 Customers' advance payments on contracts ............................... -- 59,210 Other accrued liabilities .................................................. 2,339,450 2,610,474 ------------ ------------ Total current liabilities ............................................ 7,022,136 7,391,683 Long term debt, less current maturities .................................... 5,141,154 5,319,181 Other post-retirement benefit obligations .................................. 1,466,782 1,516,939 Note payable, net of current portion ....................................... 769,080 646,530 Deferred income taxes ...................................................... 42,725 37,725 Accrued pension liability .................................................. 641,395 633,818 ------------ ------------ Total liabilities .................................................... 15,083,272 15,545,876 Commitments and contingencies Shareholders' equity Common shares, $1 par; 10,000,000 shares authorized; 5,667,068 and 5,665,568 shares issued; 5,151,314 and 5,149,814 outstanding ............................................................ 5,667,068 5,665,568 Additional paid-in capital ............................................. 12,100,651 12,053,590 Accumulated deficit .................................................... (2,293,426) (2,152,017) Accumulated other comprehensive loss ................................... (207,197) (212,552) Less: 515,754 common shares held in treasury, at cost .................. (1,265,078) (1,265,078) ------------ ------------ Total shareholders' equity ........................................ 14,002,018 14,089,511 ------------ ------------ $ 29,085,290 $ 29,635,387 ============ ============
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