-----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, SBbR6y+R9Ml5m/SEfi7C/bwpvTA9ICTQ7E2AxVEmb73PmEKhj/VjH0nFEdrkrmQ1 siwET6Z10MGaMNrP58JuhQ== 0000090045-09-000006.txt : 20090317 0000090045-09-000006.hdr.sgml : 20090317 20090317094259 ACCESSION NUMBER: 0000090045-09-000006 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090317 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090317 DATE AS OF CHANGE: 20090317 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: 09686547 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 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): March 17, 2009 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 March 17, 2009, the Company issued a press release announcing its financial results for its fourth quarter and year ended December 31, 2008. 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 (loss) 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 (loss) 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 March 17, 2009 announcing financial results for the fourth quarter and year ended December 31, 2008. 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: March 17, 2009 By: /s/ Leonard S. Yurkovic ------------------------------------ Leonard S. Yurkovic Acting CEO Exhibit Index - ------------- Exhibit Number Description - -------------- ----------- 99.1 Press Release dated March 17, 2009 announcing financial results for the fourth quarter and year ended December 31, 2008. EX-99 2 ex99-1.txt EXHIBIT 99 - NEWS RELEASE EXHIBIT 99.1 ------------ [PARAGON TECHNOLOGIES, INC. LOGO] NEWS - -------------------------------------------------------------------------------- FOR: IMMEDIATE RELEASE CONTACTS: Len Yurkovic, Acting CEO 610-252-3205 610-252-3102 (Fax) www.ptgamex.com --------------- PARAGON TECHNOLOGIES REPORTS 2008 FOURTH QUARTER AND YEAR-END RESULTS - - - - - EASTON, PA -- March 17, 2009 -- Paragon Technologies, Inc. (NYSE Alternext US:PTG), a leading supplier of "smart" material handling systems and "software-driven" warehouse and distribution center solutions, today announced results for the fourth quarter and year ended December 31, 2008. During the fourth quarter ended December 31, 2008, the Company had a net loss of $83,000 or $.04 loss per share on sales of $3.8 million, compared to a net loss of $58,000 or $.02 loss per share on sales of $4.5 million during the fourth quarter ended December 31, 2007. During the year ended December 31, 2008, the Company had a net loss of $687,000 or $.28 loss per share on sales of $16.7 million, compared to net income of $341,000 or $.12 earnings per share on sales of $21.4 million during the year ended December 31, 2007. The net loss for the year ended December 31, 2008 was primarily the result of a decline in sales attributable to the economic slowdown along with the establishment of a valuation allowance applied against net deferred tax assets, a provision related to an allowance for doubtful accounts associated with a possible uncollectible receivable, and severance costs pertaining to the reduction of employees. During the year ended December 31, 2008, the Company repurchased 980,463 shares of common stock at a weighted average cost, including brokerage fees, of $4.66 per share. As of December 31, 2008, $3,316,668 remained available for repurchases from the $22,000,000 stock repurchase program. [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 - -------------------------------------------------------------------------------- Len Yurkovic, Acting CEO of Paragon Technologies, commented, "We are disappointed in our fourth quarter and year-end results as the sluggish economy continues to impact our business and cause our customers to delay projects. Despite the decline in sales, we continue to maintain a strong focus on improving gross profit margins and reducing expenses. With this in mind, as part of a cost-reduction initiative, we recently reduced our workforce by approximately 10%. We expect to be on track once economic conditions improve." 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, 2007 and the most recent quarterly report on Form 10-Q for the quarter ended September 30, 2008. 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) - ----------------------------------------------------------------------------------------------------------- December 31, 2008 December 31, 2007 - ----------------------------------------------------------------------------------------------------------- Cash and cash equivalents.................. $ 5,615 12,104 Short-term investments..................... - 200 ------------------------ --------------------- Total cash and cash equivalents and short-term investments............ $ 5,615 12,304 ------------------------ --------------------- Trade receivables, net..................... $ 2,627 2,640 Inventories................................ $ 705 859 Current assets............................. $ 10,331 17,842 Current liabilities........................ 3,356 5,802 ------------------------ --------------------- Working capital......................... $ 6,975 12,040 ------------------------ --------------------- Current ratio.............................. 3.08 3.08 Total assets............................... $ 10,618 18,316 Total stockholders' equity................. $ 7,005 12,253 - -----------------------------------------------------------------------------------------------------------
Paragon Technologies, Inc. Summary Financial Information Selected Financial Data -- Statements of Operations (UNAUDITED) (In Thousands, Except Per Share Information) - ----------------------------------------------------------------------------------------------------------- Fourth Quarter Ended Year Ended December 31, December 31, ------------------------------ ------------------------------ 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Net sales............................. $ 3,817 4,524 16,700 21,448 ============= ============= ============= ============= Loss before income taxes.............. $ (88) (176) (234) (92) Income tax expense (benefit).......... (5) (118) 453 (433) ------------- ------------- ------------- ------------- Net income (loss)..................... $ (83) (58) (687) 341 ============= ============= ============= ============= Basic earnings (loss) per share....... $ (.04) (.02) (.28) .12 ============= ============= ============= ============= Diluted earnings (loss) per share..... $ (.04) (.02) (.28) .12 ============= ============= ============= ============= - -----------------------------------------------------------------------------------------------------------
Paragon Technologies, Inc. Supplemental Financial Information Reconciliation of Net Income (Loss) to EBITDA (UNAUDITED) (In Thousands) - ----------------------------------------------------------------------------------------------------------- Fourth Quarter Ended Year Ended December 31, December 31, ------------------------------ ------------------------------ 2008 2007 2008 2007 ------------- ------------- ------------- ------------- Net income (loss)...................... $ (83) (58) (687) 341 Add: Income tax expense (benefit).... (5) (118) 453 (433) ------------- ------------- ------------- ------------- Loss before income taxes............... (88) (176) (234) (92) Add: Interest expense................ 1 - 1 1 Add: Depreciation and amortization expense.......... 35 27 129 109 ------------- ------------- ------------- ------------- EBITDA $ (52) (149) (104) 18 ============= ============= ============= ============= - -----------------------------------------------------------------------------------------------------------
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