Announces 2016 Annual Meeting and Changes to
its Board of Directors
The LGL Group, Inc. (NYSE MKT: LGL) (the “Company”), announced
results for the quarter ended March 31, 2016.
Summary of Q1 2016 Results:
- Revenues were $4.8 million, down 12.0%
from Q1 2015
- Net loss of ($0.1) million, or ($0.05)
per share, improved 29.2% compared to Q1 2015
- Adjusted EBITDA per share was $0.01
versus $0.03 in Q1 2015
- Order backlog was $9.0 million, up 2.5%
from Q4 2015
The Company’s newly elected Chairman of the Board and CEO,
Michael J. Ferrantino, Sr., stated, “Although we were disappointed
by the 12% revenue decrease, we were encouraged by the $335,000
increase in our backlog over the previous quarter. Most of the
decrease is a result of the continuing price compression in the
frequency control commodities market rather than lost business. We
view this price compression as a secular trend and have been
actively transitioning our product mix, strategic focus, and
marketing efforts towards more lucrative and higher margin markets.
Profitability appears to be in reach, given our lower cost
structure, as we gain greater traction in these markets. As we
advance into our second quarter with the increase in backlog, we do
expect shipments to pick up.”
Positive Cash Flows from Operations; Solid Capital
Position
Net cash provided by operating activities was $0.1 million for
the quarters ended March 31, 2016 and 2015. Total cash and cash
equivalents was $5.6 million, or $2.09 per share, at March 31,
2016, consistent with our cash position at December 31, 2015.
Adjusted working capital (accounts receivable, net, plus inventory,
net, less accounts payable) was $5.0 million as of March 31, 2016,
compared to $5.2 million as of December 31, 2015, which reflects
the continuing effort to manage working capital levels to operating
activity.
2016 Annual Meeting of Stockholders
The Company also announced that its 2016 Annual Meeting of
Stockholders (the “2016 Annual Meeting”) will be held on Thursday,
June 16, 2016, at 9:00 a.m., local time, at the Company’s
headquarters, 2525 Shader Road, Orlando, FL 32804. The record date
for stockholders to receive notice of, and to vote at, the 2016
Annual Meeting was April 19, 2016.
Frederic V. Salerno, Jr. and Hendi Susanto have been nominated
for election to the Company’s Board of Directors (the “Board”). Mr.
Salerno is the Strategic Sourcing Manager for Brunswick Corporation
and brings over 25 years’ experience in operations and supply chain
management. Mr. Susanto is Vice President, Equity Research,
Technology Leader, for Gabelli & Company, and brings extensive
experience in evaluating investments in technology, mergers and
acquisitions, convertible debts and restructuring. Additionally,
one incumbent member of the Board, Patrick J. Guarino, has decided
to retire and will not stand for re-election at the 2016 Annual
Meeting, which, pending the results of the 2016 Annual Meeting,
will increase the size of the Board to eight members. Marc Gabelli,
former Chairman of the Board, added, “On behalf of management and
the entire Board, we extend a sincere thank you to Mr. Guarino for
his practical guidance, mentoring and contributions during his
tenure on the Board. We will surely miss his advice and council.
All of us wish him the very best in his retirement.”
About The LGL Group, Inc.
The LGL Group, Inc., through its wholly-owned subsidiary
MtronPTI, manufactures and markets highly-engineered electronic
components used to control the frequency or timing of signals in
electronic circuits. These components ensure reliability and
security in aerospace and defense communications, synchronize data
transfers throughout the wireless and internet infrastructure, and
provide low noise and base accuracy for lab instruments.
Headquartered in Orlando, Florida, the Company has additional
design and manufacturing facilities in Yankton, South Dakota and
Noida, India, with local sales offices in Sacramento, California
and Hong Kong.
For more information on the Company and its products and
services, contact Patti Smith at The LGL Group, Inc., 2525 Shader
Rd., Orlando, Florida 32804, (407) 298-2000, or visit
www.lglgroup.com and www.mtronpti.com.
Caution Concerning Forward Looking Statements
This press release may contain forward-looking statements made
in reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21 E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements include all statements that do not relate solely to
historical or current facts, and can be identified by the use of
words such as “may,” “will,” “expect,” “project,” “estimate,”
“anticipate,” “plan,” “believe,” “potential,” “should,” “continue”
or the negative versions of those words or other comparable words.
These forward-looking statements are not guarantees of future
actions or performance. These forward-looking statements are based
on information currently available to us and our current plans or
expectations, and are subject to a number of uncertainties and
risks that could significantly affect current plans, anticipated
actions and our future financial condition and results. Certain of
these risks and uncertainties are described in greater detail in
our filings with the Securities and Exchange Commission. We are
under no obligation to (and expressly disclaim any such obligation
to) update or alter our forward-looking statements, whether as a
result of new information, future events or otherwise.
THE LGL GROUP, INC.
Condensed Consolidated Statements of
Operations – UNAUDITED
(Dollars in Thousands, Except Per Share
Amounts)
For the three months ended March 31, 2016
2015 REVENUES $ 4,756 $ 5,404 Costs and
expenses: Manufacturing cost of sales 3,257 3,605 Engineering,
selling and administrative 1,661 1,960
OPERATING LOSS (162 ) (161 ) Total other income
(expense) 36 (17 ) LOSS BEFORE INCOME TAXES
(126 ) (178 ) Income tax provision — —
NET LOSS $ (126 ) $ (178 ) Weighted average number of
shares used in basic and diluted EPS calculation 2,665,434
2,616,485 BASIC AND DILUTED NET LOSS PER
COMMON SHARE $ (0.05 ) $ (0.07 )
THE LGL GROUP, INC.
Condensed Consolidated Balance
Sheets
(Dollars in Thousands)
March 31, 2016 December 31, ASSETS
(Unaudited) 2015 Cash and cash equivalents $ 5,576 $
5,553 Accounts receivable, less allowances of $34 at March 31, 2016
and December 31, 2015, respectively 2,544 2,606 Inventories, net
3,550 3,546 Prepaid expenses and other current assets 359
247 Total Current Assets 12,029 11,952 Property, plant, and
equipment, net 3,023 3,165 Intangible assets, net 461 475 Other
assets 208 211 Total Assets $ 15,721 $ 15,803
LIABILITIES AND STOCKHOLDERS’ EQUITY Total Liabilities 2,139
2,076 Total Stockholders’ Equity 13,582 13,727
Total Liabilities and Stockholders’ Equity $ 15,721 $ 15,803
Reconciliations of GAAP to Non-GAAP Measures
To supplement our consolidated condensed financial statements
presented on a GAAP basis, the Company uses certain non-GAAP
measures, including Adjusted EBITDA, which we define as net income
(loss) adjusted to exclude depreciation and amortization expense,
interest income (expenses), provision (benefit) for income taxes,
stock-based compensation expense and other items we believe are
discrete events which have a significant impact on comparable GAAP
measures and could distort an evaluation of our normal operating
performance. These adjustments to our GAAP results are made with
the intent of providing both management and investors a more
complete understanding of the underlying operational results and
trends and our marketplace performance. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for net earnings or diluted earnings per share
prepared in accordance with generally accepted accounting
principles in the United States.
Reconciliation of 2016 GAAP Loss Before
Income Taxes to Non-GAAP Adjusted EBITDA:
For the three months ended (000’s, except
shares and per share March 31, March 31,
amounts) 2016 2015 Net loss before
income taxes $ (126 ) $ (178 ) Interest expense 6 5 Depreciation
and amortization 204 228 Non-cash stock compensation (16 ) 13 Gain
on disposal of assets (43 ) — Adjusted EBITDA
$ 25 $ 68 Weighted average number of shares
used in basic and diluted EPS calculation 2,665,434
2,616,485
Adjusted EBITDA per share
$ 0.01 $ 0.03
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version on businesswire.com: http://www.businesswire.com/news/home/20160512006494/en/
The LGL Group, Inc.Patti Smith,
407-298-2000pasmith@lglgroup.com
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