-----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, Q4xNjw3X2POUL8o7hzWOYNS0ToP3q8zH5Pf/7cVl3MNFdtnIl8MZdGaACQKutNkv FWuzD5uUDG0Zl/vnesfvVA== 0000098618-10-000013.txt : 20100218 0000098618-10-000013.hdr.sgml : 20100218 20100217175916 ACCESSION NUMBER: 0000098618-10-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100216 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100218 DATE AS OF CHANGE: 20100217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALANCO TECHNOLOGIES INC CENTRAL INDEX KEY: 0000098618 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER STORAGE DEVICES [3572] IRS NUMBER: 860220694 STATE OF INCORPORATION: AZ FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-09347 FILM NUMBER: 10614146 BUSINESS ADDRESS: STREET 1: 15575 N 83RD WAY STREET 2: SUITE 3 CITY: SCOTTSDALE STATE: AZ ZIP: 85260 BUSINESS PHONE: 4806071010 MAIL ADDRESS: STREET 1: 15575 N 83RD WAY STREET 2: SUITE 3 CITY: SCOTTSDALE STATE: AZ ZIP: 85260 FORMER COMPANY: FORMER CONFORMED NAME: ALANCO ENVIRONMENTAL RESOURCES CORP DATE OF NAME CHANGE: 19930708 FORMER COMPANY: FORMER CONFORMED NAME: ALANCO RESOURCES CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: ALANCO LTD DATE OF NAME CHANGE: 19901004 8-K 1 fiscal20102ndqtrearningspr.txt Q2 2010 RESULTS PRESS 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 February 17, 2010 ----------------- (Date of Report) ALANCO TECHNOLOGIES, INC. ------------------------- (Exact name of Registrant as specified in its charter) 0-9437 --------- (Commission File No.) ARIZONA 86-0220694 ----------------------------- --------------------------------- (State of other jurisdiction) (IRS Employer Identification No.) 15575 N 83RD WAY, SUITE 3, SCOTTSDALE, ARIZONA 85260 -------------------------------------------------------- (Address of Principal Executive Office) (Zip Code) (480) 607-1010 ---------------------------------------------------- (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 (see General Instruction A.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(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On February 17, 2010, Alanco Technologies, Inc. issued a press release reporting financial results for the second quarter of fiscal year 2010, ended December 31, 2009. A copy of the press release is attached hereto as Exhibit 99.1, and is hereby incorporated by reference in this Item 2.02. Item 9.01 Financial Statements and Exhibits Exhibit 99.1 Press release from Alanco Technologies, Inc., dated February 17, 2010, titled "Alanco Reports Second Quarter Results" SIGNATURES Date: February 17, 2010 By: /s/John A Carlson ----------------------- Chief Financial Officer EX-99 2 pr021710q22010.txt 021710 Q2 RESULTS PRESS RELEASE EXHIBIT 99.1 FOR IMMEDIATE RELEASE CONTACTS: Corporate Contact: John Carlson, Exec VP & CFO 480-505-4869 Alanco Reports Second Quarter Results --------------------------------------------- Sales Increased 22% over Prior Quarter Significant Gross Profit/EBITDA Improvement (Scottsdale, AZ - February 17, 2010) - Alanco Technologies, Inc., (NASDAQ: ALAN), a leading provider of wireless tracking and asset management solutions, reported results for the quarter ended December 31, 2009. The results continue to reflect the recent reclassification of the Company's Alanco/TSI PRISM and Excel Meridian Data subsidiaries as "Discontinued Operations" in concert with the Company's strategic plan to focus on growth of the Company's StarTrak wireless monitoring services business, now reported as the Company's sole "Continuing Operation." Second quarter sales increased 22% over the first quarter to $3,627,200; a 7% increase compared to the prior year period. Gross profit for the second quarter increased 55% to $1,467,900, compared to the $942,400 in gross profit reported in last year's second quarter. The significant gross profit increase resulted from gross margin improvement to 40.5% from 27.8% in the prior year second quarter. The Company reported second quarter EBITDA, before stock-based compensation and corporate expense from continuing operations, of $93,100, a $474,200 improvement versus the ($381,100) loss reported in the prior year period. See Schedule II below for a reconciliation of EBITDA before Stock-based compensation and Corporate Expense. The Company's Loss from Continuing Operations for the second quarter of decreased 44%, to ($586,700) compared to the prior year's second quarter Loss from Continuing Operations of ($1,053,200). Results from Discontinued Operations for the quarter ended December 31, 2009 were a loss of ($603,600), compared to a loss of ($197,500) reported for the comparable prior quarter. The significant increase was primarily due to a $325,000 impairment charge the Company recorded to reflect the anticipated reduced sales value of the data storage segment. Robert R. Kauffman, Alanco Chairman and CEO, commented, "StarTrak's sales growth has resumed, with an increase of 22% compared to the prior quarter. Gross profit and EBITDA improvements further reflect the Company's significant turnaround compared to the prior year period. Both order backlog and current sales activity have dramatically increased during the second quarter, and we anticipate continued sequential sales growth in the third and final quarter ending June 30, 2010." Comparisons of operating results for the six-months ended December 31, 2009 and 2008 are presented below as Schedule I. For additional discussion of the Company's current financial results, please see the Form 10-Q the Company filed with the Securities and Exchange Commission on February 16, 2010. Alanco Technologies, Inc. provides wireless monitoring and asset management solutions through its StarTrak Systems subsidiary. StarTrak Systems is the dominant provider of tracking, monitoring and control services to the refrigerated or "Reefer" segment of the transportation marketplace, enabling customers to increase efficiency and reduce costs of the refrigerated supply chain. For more information, visit the Alanco website at www.alanco.com or StarTrak Systems at www.startrak.com. EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT; COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW TECHNOLOGIES THAT MAKE THE COMPANY'S PRODUCTS OBSOLETE; RAPID INDUSTRY CHANGES; FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY'S STRATEGIES; THE ABILITY TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND REMAIN IN COMPLIANCE WITH FINANCIAL LOAN COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY CONTRACTS AND RELATIONSHIPS. SCHEDULE I Alanco Technologies, Inc. Condensed Consolidated Financial Information (Unaudited) Three months Six months ended December 31, ended December 31, 2009 2008 2009 2008 ------------------------- ------------------------- NET SALES $ 3,627,200 $ 3,389,600 $ 6,604,100 $ 6,702,300 Cost of Sales 2,159,300 2,447,200 3,747,000 4,955,400 ------------ ------------ ------------ ------------ Gross Profit 1,467,900 942,400 2,857,100 1,746,900 ------------ ------------ ------------ ------------ Operating Expenses Selling, General & Administrative Expense 1,373,700 1,322,200 2,685,000 2,661,900 Amortization of Stock-Based Compensation 269,700 304,500 430,500 306,900 Depreciation and Amortization 70,200 113,200 239,000 226,300 Corporate Expenses 134,500 120,600 270,100 236,300 ------------ ------------ ------------ ------------ Total Operating Expenses 1,848,100 1,860,500 3,624,600 3,431,400 ------------ ------------ ------------ ------------ Operating Loss (380,200) (918,100) (767,500) (1,684,500) Interest Expense, net (205,400) (133,700) (379,900) (512,100) Other Income (expense), net (1,100) (1,400) (1,900) (184,800) ------------ ------------ ------------ ------------ Loss from Continuing Operations (586,700) (1,053,200) (1,149,300) (2,381,400) Loss from Discontinued Operations (603,600)(1) (197,500) (1,106,400)(1) (101,000) ------------ ------------ ------------ ------------ Net Loss (1,190,300) (1,250,700) (2,255,700) (2,482,400) Preferred Stock Dividends (117,700) (129,200) (258,200) (220,200) ------------ ------------ ------------ ------------ Net Loss Attributable to Common Shareholders $(1,308,000) $(1,379,900) $(2,513,900) $(2,702,600) ============ ============ ============ ============ (1) Includes a $325,000 impairment charge the Company recorded to reflect the anticipated reduced sales value of the Data Storage segment. SCHEDULE II Alanco Technologies, Inc. EBITDA Reconciliation to Net Income (Loss) from Continuing Operations 3 mths ended 3 mths ended 6 mths ended 6 mths ended December 31, December 31, December 31, December 31, 2009 2008 2009 2008 ------------ ------------ ------------ ------------ EBITDA before Stock-based compensation and Corporate Expense $ 93,100 (381,100) 170,200 (1,099,800) Corporate Expense (269,700) (304,500) (430,500) (306,900) Stock-based compensation (70,200) (113,200) (239,000) (226,300) ------------ ------------ ------------ ------------ EBITDA (246,800) (798,800) (499,300) (1,633,000) Net interest expense (205,400) (133,700) (379,900) (512,100) Depreciation and amortization (134,500) (120,600) (270,100) (236,300) ------------ ------------ ------------ ------------ NET LOSS FROM CONTINUING OPERATIONS $ (586,700) $(1,053,100) $(1,149,300) $(2,381,400) ============ ============ ============ ============ # # # -----END PRIVACY-ENHANCED MESSAGE-----