- Company Reports Third Quarter EPS of
$0.32, up 60% Year-Over-Year
- Resolved Shipment Delays for Significant Middle East
Order
- Free Cash was $11.3 Million as defined as cash flow
from operations less capital expenditures
- Repurchased 383,500 Shares in the Quarter for $18.8
Million
- Declares Quarterly Dividend of $0.50 per share, Payable
on March 3, 2015
- MINI Z™ Handheld Screening System Named "Best of What's
New for 2014" by Popular Science Magazine
American Science and Engineering, Inc. (Nasdaq:ASEI) ("AS&E"),
a leading worldwide supplier of innovative X-ray detection
solutions, today reported its financial results for the third
quarter of fiscal year 2015 ended December 31, 2014. The Company
reported revenues of $37.0 million as compared with $37.8 million
for the third quarter of fiscal year 2014, net income of $2.6
million as compared with $1.6 million for the third quarter of
fiscal year 2014, and earnings per share of $0.32 as compared with
$0.20 for the third quarter of fiscal year 2014.
For the first nine months of fiscal year 2015, the Company
reported revenues of $95.6 million compared with $124.7 million for
the same period in the prior fiscal year, net income of $0.1
million compared with $11.2 million for the same period in the
prior fiscal year, and earnings per share of $0.01 compared with
earnings per share of $1.41 for the same period in the prior fiscal
year.
Cash, restricted cash, and investment balances in the quarter
decreased $11.5 million to $118.8 million, a result of positive
cash flow from operations of $12.0 million offset primarily by the
$18.8 million repurchase of common stock and the payment of $4.0
million in common stock dividends during the quarter. Cash,
restricted cash, and investment balances for the first nine months
of fiscal year 2015 decreased by $46.9 million due primarily to the
$18.8 million repurchase of common stock, payment of $11.9 million
in common stock dividends, and an increase in inventory of $9.1
million.
The Company reported $17.1 million in bookings for the third
quarter of fiscal year 2015 and $57.6 million for the first nine
months of fiscal year 2015. Backlog at December 31, 2014 was $138.2
million.
Continuing with its dividend program initiated in August 2007,
the Company is declaring a quarterly cash dividend of $0.50 per
share, payable on March 3, 2015 to the holders of record at the
close of business on February 17, 2015. As of December 31, 2014,
under the authorized stock repurchase plan, the Company had
repurchased approximately 383,500 shares of its common stock for
$18.8 million.
"The Company's return to profitability and positive cash flow
from operations in the third quarter reflects the initial impact of
the cost-cutting measures we implemented in September 2014 and the
resolution of shipment delays for a specific Middle East ZBV® order
already recorded in backlog," said Chuck Dougherty, AS&E's
President and Chief Executive Officer. "Although bookings were
disappointing due to delays in awards for large cargo tenders in
the Middle East and Africa and reduced U.S. government spending, we
remain confident in our opportunity pipeline and our ability to
capture the increased global opportunities for our expanded
portfolio of product and service offerings."
Dougherty continued, "We have made progress with our strategic
initiatives, including upgrading and adding new channel partners in
targeted growth markets and supporting our new North American
public safety channel program. We continued the global roll-out of
the MINI Z™ handheld screening system and have begun to receive
both domestic and international stocking orders. As an affordable
entry point for Z Backscatter® technology, the MINI Z system
remains a key component of our geographic expansion initiative and
we are proud to report that our clients achieved several contraband
seizures during demonstrations and the system was named 'Best of
What's New for 2014' by Popular Science Magazine."
Chuck Dougherty, President and CEO, and Ken Galaznik, Senior
Vice President, Chief Financial Officer and Treasurer, will host a
conference call and simultaneous webcast to discuss the results and
respond to questions. The conference call and webcast will
include a presentation and are scheduled for Thursday,
February 5, 2015 at 4:30 pm ET.
To participate in the conference call, please dial (877)
303-9143 at least 10 minutes prior to its starting time.
For international participants, please dial (760)
536-5194. The conference identification number is
72481962. You will be placed on hold until the
conference call is ready to begin. The live webcast and
presentation can be accessed at
http://edge.media-server.com/m/p/uppf7qht.
An audio replay of the teleconference will be available, in its
entirety, starting Thursday, February 5, 2015
at 7:30 p.m. EST for a one-week period by dialing
(855) 859-2056. Internationally, please dial
(404) 537-3406. The conference identification
number is 72481962. The replay and presentation
will also be available through the Company's website at
http://ir.as-e.com/events.cfm.
About AS&E
American Science and Engineering, Inc. (AS&E) is the trusted
global provider of threat and contraband detection solutions for
ports, borders, military, critical infrastructure, law enforcement,
and aviation. With over 50 years of experience, AS&E offers
proven, advanced, X-ray inspection systems to combat terrorism,
drug smuggling, illegal immigration and trade fraud. AS&E
systems are designed in a variety of configurations for cargo and
vehicle inspection, parcel inspection, and personnel screening.
Using a combination of technologies, these systems provide superior
detection capabilities, with high-energy, dual-energy, and Z
Backscatter™ X-rays — pioneered by AS&E. Learn more about
AS&E products and technologies at www.as-e.com and follow
us on Twitter @ase_detects.
Safe Harbor Statement: The foregoing press release contains
statements concerning AS&E's financial performance, markets and
business operations that may be considered "forward-looking" under
applicable securities laws. AS&E wishes to caution
readers of this press release that actual results might differ
materially from those projected in any forward-looking statements.
Factors which might cause actual results to differ materially from
those projected in the forward-looking statements contained herein
include the following: significant reductions, delays or
cancellations (in full or in part) in procurements of the Company's
systems by the United States and other governments; disruption in
the supply of any source component incorporated into AS&E's
products; litigation seeking to restrict the use of intellectual
property used by the Company; limitations under certain laws on the
Company's ability to protect its own intellectual property;
potential product liability claims against the Company; global
political trends and events which affect public perception of the
threat presented by drugs, explosives and other contraband; global
economic developments and the ability of governments and private
organizations to fund purchases of the Company's products to
address such threats; the potential insufficiency of Company
resources, including human resources, capital, plant and equipment
and management systems, to accommodate any future growth; technical
problems and other delays that could impact new product development
and the Company's ability to adapt to changes in technology and
customer requirements; competitive pressures; lengthy sales cycles
both in United States government procurement and procurement
abroad; future delays in federal funding, the market price of
the company's stock prevailing from time to time, the nature of
other investment opportunities presented to the company from time
to time, the company's cash flows from operations and market
and general economic conditions. These and certain other factors
which might cause actual results to differ materially from those
projected are detailed from time to time in AS&E's periodic
reports and registration statements filed with the Securities and
Exchange Commission, which important factors are incorporated
herein by reference. AS&E undertakes no obligation to update
forward looking statements to reflect changed assumptions, the
occurrence of unanticipated events, or changes in future operating
results, financial condition or business over time. Readers are
further advised to review the "Risk Factors" set forth in the
Company's most recent Form 10-Q and Form 10-K, which further detail
and supplement the factors described in this Safe Harbor
Statement. Among other disclosures, the Risk Factors disclose
risks pertaining to that portion of the Company's business that is
dependent on United States government contracting as well as
international customers.
AMERICAN SCIENCE AND
ENGINEERING, INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in thousands, except per share
amounts) |
(unaudited) |
|
|
Quarter
Ended |
Nine Months
Ended |
|
December 31,
2014 |
December 31,
2013 |
December 31,
2014 |
December 31,
2013 |
Total net sales and contract
revenues |
$ 36,980 |
$ 37,773 |
$ 95,583 |
$ 124,673 |
|
|
|
|
|
Total cost of sales and
contracts |
19,873 |
20,905 |
52,324 |
69,452 |
Gross profit |
17,107 |
16,868 |
43,259 |
55,221 |
|
|
|
|
|
Expenses: |
|
|
|
|
Selling, general and administrative
expenses |
7,627 |
8,396 |
24,936 |
22,718 |
Research and development costs |
5,668 |
6,139 |
18,092 |
15,725 |
Total operating
expenses |
13,295 |
14,535 |
43,028 |
38,443 |
|
|
|
|
|
Operating income |
3,812 |
2,333 |
231 |
16,778 |
Interest and other income (expense), net |
18 |
11 |
(88) |
8 |
Income before provision for income
taxes |
3,830 |
2,344 |
143 |
16,786 |
Provision for income
taxes |
1,276 |
786 |
41 |
5,624 |
|
|
|
|
|
Net income |
$ 2,554 |
$ 1,558 |
$ 102 |
$ 11,162 |
|
|
|
|
|
Income per share -
Basic |
$ 0.32 |
$ 0.20 |
$ 0.01 |
$ 1.42 |
Income per share -
Diluted |
$ 0.32 |
$ 0.20 |
$ 0.01 |
$ 1.41 |
|
|
|
|
|
Weighted average shares -
Basic |
7,789 |
7,850 |
7,866 |
7,837 |
Weighted average shares -
Diluted |
7,796 |
7,889 |
7,877 |
7,873 |
|
|
|
|
|
The results of operations
reported herein may not be indicative of future financial
conditions or results of future operations. |
|
|
AMERICAN SCIENCE AND
ENGINEERING, INC. |
CONDENSED CONSOLIDATED
BALANCE SHEETS |
(in thousands) |
(unaudited) |
|
|
|
|
December 31,
2014 |
March 31, 2014 |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 45,731 |
$ 62,143 |
Restricted cash and investments |
12,226 |
14,603 |
Short-term investments, at fair value |
60,669 |
88,649 |
Accounts receivable, net |
26,780 |
34,317 |
Unbilled costs and fees |
3,365 |
2,491 |
Inventories, net |
42,788 |
32,935 |
Other current assets |
13,844 |
10,234 |
Total current assets |
205,403 |
245,372 |
|
|
|
Non-current assets: |
|
|
Building, equipment and leasehold
improvements, net |
9,603 |
12,969 |
Restricted cash and investments |
208 |
313 |
Other assets |
7,578 |
6,857 |
Total assets |
$ 222,792 |
$ 265,511 |
Liabilities & Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 6,750 |
$ 10,618 |
Customer deposits |
18,901 |
16,589 |
Deferred revenue |
11,867 |
10,934 |
Other current liabilities |
13,658 |
24,350 |
Total current liabilities |
51,176 |
62,491 |
|
|
|
Non-current liabilities: |
|
|
Lease financing liability |
186 |
1,404 |
Other non-current liabilities |
1,265 |
4,221 |
Total liabilities |
52,627 |
68,116 |
|
|
|
Stockholders' equity |
170,165 |
197,395 |
Total liabilities and stockholders'
equity |
$ 222,792 |
$ 265,511 |
|
|
AMERICAN SCIENCE AND
ENGINEERING, INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(in thousands) |
(unaudited) |
|
|
|
|
For the Nine Months
Ended |
|
December 31,
2014 |
December 31,
2013 |
Cash flows from operating activities: |
|
|
Net income |
$ 102 |
$ 11,162 |
Adjustments to reconcile net income to net
cash (used for) provided by operating activities: |
|
|
Depreciation and amortization |
3,624 |
3,942 |
Provisions for contracts, inventory and
accounts receivable reserves |
(237) |
1,233 |
Amortization of bond premium |
713 |
1,192 |
Deferred income taxes |
1,993 |
1,894 |
Stock compensation expense |
2,266 |
1,527 |
|
|
|
Changes in assets and liabilities: |
|
|
Accounts receivable |
7,500 |
5,952 |
Unbilled costs and fees |
(874) |
2,391 |
Inventories |
(9,138) |
(3,392) |
Prepaid expenses and other assets |
(6,324) |
1,432 |
Accounts payable |
(3,868) |
542 |
Accrued income taxes |
(2,338) |
(2,094) |
Customer deposits |
2,312 |
16,932 |
Deferred revenue |
(1,781) |
(6,472) |
Accrued expenses and other
liabilities |
(7,917) |
(6,181) |
Net cash (used for) provided by operating
activities |
(13,967) |
30,060 |
|
|
|
Cash flows from investing activities: |
|
|
Purchases of short-term investments |
(29,211) |
(47,805) |
Proceeds from sales and maturities of
short-term investments |
56,433 |
68,755 |
Purchases of property and equipment,
net |
(1,668) |
(1,463) |
Net cash provided by investing
activities |
25,554 |
19,487 |
|
|
|
Cash flows from financing activities: |
|
|
Decrease (increase) in restricted cash
and investments |
2,482 |
(1,633) |
Proceeds from exercise of stock
options |
888 |
2,889 |
Repurchase of shares of common stock |
(18,799) |
(12,306) |
Repayment of leasehold financing
liability |
(928) |
(1,115) |
Payment of common stock dividend |
(11,948) |
(11,749) |
Increase (reduction) of income taxes paid
due to the tax benefit from employee stock option expense |
306 |
(86) |
Net cash used for financing activities |
(27,999) |
(24,000) |
|
|
|
Net (decrease) increase in cash and cash
equivalents |
(16,412) |
25,547 |
Cash and cash equivalents at beginning of
period |
62,143 |
40,418 |
Cash and cash equivalents at end of
period |
$ 45,731 |
$ 65,965 |
CONTACT: Public Relations Contact:
Dana Harris
Red Javelin Communications, Inc.
978-440-8392
dana@redjavelin.com
Laura Berman
American Science and Engineering, Inc.
978-262-8700
lberman@as-e.com
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