-----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, NwVCfOYDaScXah96plWfQ3uQVAqCfc8YEr2X8E4yqjAoVE9bwf/24tsWLpWudYJm Dx3q51rTucnle/pDiiuhVA== 0000090045-07-000045.txt : 20071113 0000090045-07-000045.hdr.sgml : 20071112 20071113092256 ACCESSION NUMBER: 0000090045-07-000045 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071113 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071113 DATE AS OF CHANGE: 20071113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PARAGON TECHNOLOGIES INC CENTRAL INDEX KEY: 0000090045 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION, MINING & MATERIALS HANDLING MACHINERY & EQUIP [3530] IRS NUMBER: 221643428 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15729 FILM NUMBER: 071234789 BUSINESS ADDRESS: STREET 1: 600 KUEBLER ROAD CITY: EASTON STATE: PA ZIP: 18040-9201 BUSINESS PHONE: 6102523205 MAIL ADDRESS: STREET 1: 600 KUEBLER ROAD CITY: EASTON STATE: PA ZIP: 18040-9201 FORMER COMPANY: FORMER CONFORMED NAME: SI HANDLING SYSTEMS INC DATE OF NAME CHANGE: 19920703 8-K 1 f8-k.txt THIRD QUARTER AND NINE MONTHS 2007 EARNINGS RELEASE 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): November 13, 2007 PARAGON TECHNOLOGIES, INC. ------------------------------------ (Exact name of issuer as specified in charter) DELAWARE 1-15729 22-1643428 - --------------------- --------------- ------------------ (State or Other (Commission (I.R.S. Employer Jurisdiction file Identification of Incorporation or number) Number) Organization) 600 KUEBLER ROAD EASTON, PENNSYLVANIA 18040 ---------------------------------------- (Address of principal executive offices) (610) 252-3205 ---------------------------------------- (Registrant's telephone number, including area code) Item 2.02. Results of Operations and Financial Condition. - ---------- ---------------------------------------------- The information under this caption is furnished by Paragon Technologies, Inc. (the "Company") in accordance with Securities Exchange Commission Release No. 33-8216. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. On November 13, 2007, the Company issued a press release announcing its financial results for its third quarter and nine months ended September 30, 2007. A copy of the press release is filed herewith as Exhibit 99.1 and incorporated herein by reference. The press release contains a reference to EBITDA and provides a reconciliation of EBITDA to Net income on the face of the statements of operations. EBITDA is used by investors and analysts as an alternative to GAAP measures when evaluating the Company's performance in comparison to other companies. In order to fully assess our financial operating results, management believes that EBITDA is an appropriate measure of evaluating our operating performance, because it eliminates the effects of financing and accounting decisions. This measure is also significant to institutional lenders, and is considered an important internal benchmark of performance by the Company. EBITDA, which is earnings before interest, taxes, depreciation, and amortization, is computed by adding back interest expense, income tax expense, depreciation expense, and amortization expense to Net income as reported. EBITDA should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with U.S. generally accepted accounting principles. EBITDA, as defined above, may not be comparable to similarly titled measures reported by other companies. Item 9.01. Financial Statements and Exhibits - ---------- --------------------------------- (c) Exhibits Exhibit Number Description - -------------- ----------- 99.1 Press Release dated November 13, 2007 announcing financial results for the third quarter and nine months ended September 30, 2007. Signatures ---------- Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. PARAGON TECHNOLOGIES, INC. Date: November 13, 2007 By: /s/ Leonard S. Yurkovic ------------------------------------ Leonard S. Yurkovic Acting CEO Exhibit Index - ------------- Exhibit Number Description - -------------- ----------- 99.1 Press Release dated November 13, 2007 announcing financial results for the third quarter and nine months ended September 30, 2007. EX-99 2 ex99-1.txt EXHIBIT 99.1 - 3Q07 EARNINGS RELEASE EXHIBIT 99.1 ------------ [PARAGON TECHNOLOGIES, INC. LOGO] NEWS - -------------------------------------------------------------------------------- FOR: IMMEDIATE RELEASE CONTACTS: Leonard S. Yurkovic, Acting CEO 610-252-3205 610-252-3102 (Fax) www.ptgamex.com --------------- PARAGON TECHNOLOGIES REPORTS 2007 THIRD QUARTER AND NINE MONTHS RESULTS - - - - - EASTON, PA -- November 13, 2007 -- Paragon Technologies, Inc. (Amex:PTG), a leading supplier of "smart" material handling systems and "software-driven" warehouse and distribution center solutions, announced today results for the third quarter and nine months ended September 30, 2007. During the third quarter ended September 30, 2007, the Company had net income of $656,000 or $0.24 earnings per share as revenue rose to $7.3 million from $5.2 million in the third quarter of 2006. The Company's backlog of orders at September 30, 2007 was $7.2 million compared to the Company's backlog of orders at the beginning of the year of $5.9 million. During the first nine months of 2007, the Company had net income of $399,000 or $0.14 earnings per share as revenue rose to $16.9 million from $14.3 million in the first nine months of 2006. The rate of new orders rose during the first nine months of 2007 to $18.2 million compared to $12.2 million in new orders received during the first nine months of 2006. Net income for the three and nine months ended September 30, 2007 was favorably impacted by the recognition of a $315,000 income tax benefit primarily related to the reversal of accruals for the expiration of tax return statutes. Len Yurkovic, Acting CEO of Paragon Technologies, commented, "The results for the third quarter of 2007 are very gratifying and represent a total team effort across the Company. We are extremely proud to be reporting higher sales and earnings and a strong balance sheet. We are also delighted with the 49% increase in orders, particularly from the rapidly growing strength in the software-driven, high-growth potential order fulfillment systems. The Company's quoting activity continues to be strong, and maintaining an aggressive selling focus on active sectors of the marketplace is a prime objective." [MORE] We Build Productivity [SI SYSTEMS LOGO] - -------------------------------------------------------------------------------- PARAGON TECHNOLOGIES, INC. o 600 Kuebler Road o Easton, PA 18040-9201 o 610.252.3205 o Fax 610.252.3102 www.ptgamex.com --------------- [PARAGON TECHNOLOGIES, INC. LOGO] Page 2 - -------------------------------------------------------------------------------- The Company will host a conference call to discuss these results on Tuesday, November 13, 2007 at 11:00 a.m. ET. To participate in the call, please dial 1-877-766-2147 and ask for the Paragon Technologies teleconference. Simultaneous with the conference call, an audio webcast of the call will be available via a link on the Paragon website, www.ptgamex.com. Paragon's SI Systems' branded technologies drive productivity at Fortune 1000 companies and the United States Government. About Paragon Technologies Paragon Technologies is a leader in integrating material handling systems and creating automated solutions for material flow applications. SI Systems' branded technologies and material handling solutions address unit assembly in manufacturing operations and order fulfillment applications. One of the top material handling systems suppliers worldwide, SI Systems leading clients have included the United States Postal Service, BMG, Peterbilt, Honda, and Maybelline. * * * - ------------------------------- Cautionary Statement. Certain statements contained herein are not based on historical fact and are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities and Exchange Commission rules, regulations and releases. Paragon intends that such forward-looking statements be subject to the safe harbors created hereby. Among other things, the forward-looking statements regard Paragon's earnings, liquidity, financial condition, review of strategic alternatives, and other matters. Words or phrases denoting the anticipated results of future events, such as "anticipate," "does not anticipate," "should help to," "believe," "estimate," "is positioned," "expects," "may," "will," "is expected," "should," "continue," and similar expressions that denote uncertainty, are intended to identify such forward-looking statements. Paragon's actual results, performance, or achievements could differ materially from the results expressed in, or implied by, such "forward-looking statements:" (1) as a result of factors over which Paragon has no control, including the strength of domestic and foreign economies, sales growth, competition, and certain cost increases; and (2) if the factors on which Paragon's conclusions are based do not conform to its expectations. The forward-looking statements contained in this press release may become outdated over time. Paragon does not assume any responsibility for updating any forward-looking statements. Furthermore, achievement of the objectives of the Company is subject to certain risks, including, but not limited to, those risks outlined in Paragon's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2006 and the most recent quarterly report on Form 10-Q for the quarter ended June 30, 2007. This press release and prior releases are available at www.ptgamex.com. --------------- [PARAGON TECHNOLOGIES, INC. LOGO] Page 3 - --------------------------------------------------------------------------------
Paragon Technologies, Inc. Summary Financial Information Selected Financial Data -- Balance Sheets (UNAUDITED) (In Thousands, Except Ratio Information) - ----------------------------------------------------------------------------------------------------------- September 30, 2007 December 31, 2006 - ----------------------------------------------------------------------------------------------------------- Cash and cash equivalents.................. $ 3,671 2,447 Short-term investments..................... 6,780 9,625 ------------------------ --------------------- Total cash and cash equivalents and short-term investments............ $ 10,451 12,072 ------------------------ --------------------- Trade receivables.......................... $ 4,098 2,557 Inventories................................ $ 679 469 Current assets............................. $ 17,796 16,370 Current liabilities........................ 5,618 4,296 ------------------------ --------------------- Working capital......................... $ 12,178 12,074 ------------------------ --------------------- Current ratio.............................. 3.17 3.81 Total assets............................... $ 18,180 16,752 Total stockholders' equity................. $ 12,305 12,428 - -----------------------------------------------------------------------------------------------------------
Paragon Technologies, Inc. Summary Financial Information Selected Financial Data -- Statements of Operations (UNAUDITED) (In Thousands, Except Per Share Information) - ----------------------------------------------------------------------------------------------------------- Third Quarter Ended Nine Months Ended September 30, September 30, ------------------------------ ------------------------------ 2007 2006 2007 2006 ------------- ------------- ------------- ------------- Net sales............................. $ 7,298 5,209 16,924 14,252 ============= ============= ============= ============= Income before income taxes............ $ 439 283 84 412 Income tax expense (benefit).......... (217) 44 (315) 1 ------------- ------------- ------------- ------------- Net income............................ $ 656 239 399 411 ============= ============= ============= ============= Basic earnings per share.............. $ .24 .07 .14 .12 ============= ============= ============= ============= Diluted earnings per share............ $ .24 .07 .14 .12 ============= ============= ============= ============= - -----------------------------------------------------------------------------------------------------------
Paragon Technologies, Inc. Supplemental Financial Information Reconciliation of Net Income to EBITDA (UNAUDITED) (In Thousands) - ----------------------------------------------------------------------------------------------------------- Third Quarter Ended Nine Months Ended September 30, September 30, ------------------------------ ------------------------------ 2007 2006 2007 2006 ------------- ------------- ------------- ------------- Net income............................. $ 656 239 399 411 Add: Income tax expense (benefit).... (217) 44 (315) 1 ------------- ------------- ------------- ------------- Income before income taxes............. 439 283 84 412 Add: Interest expense................ 1 - 1 1 Add: Depreciation and amortization expense............ 27 26 82 73 ------------- ------------- ------------- ------------- EBITDA................................. 467 309 167 486 ============= ============= ============= ============= - -----------------------------------------------------------------------------------------------------------
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