American Science and Engineering, Inc. Reports Results for Third Quarter Fiscal Year 2016 and Declares Quarterly Dividend
February 08 2016 - 4:05PM
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 2016 ended December 31, 2015. The
Company reported revenues of $22.2 million as compared with $37.0
million for the third quarter of fiscal year 2015, a net loss of
$0.5 million as compared with net income of $2.6 million for the
third quarter of fiscal year 2015, and a loss per share of $0.06 as
compared with earnings per share of $0.32 for the third quarter of
fiscal year 2015.
For the first nine months of fiscal year 2016, the Company
reported revenues of $78.8 million as compared with $95.6 million
for the same period in fiscal year 2015, a net loss of $0.5 million
compared with net income of $0.1 million for the same period in
fiscal year 2015, and a loss per share of $0.07 as compared with
earnings per share of $0.01 for the same period in fiscal year
2015. The Company reported $29.5 million in bookings for the third
quarter of fiscal year 2016 and $97.0 million for the first nine
months of fiscal year 2016. Backlog at December 31, 2015 was $156.6
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 2, 2016 to the holders of record at the
close of business on February 18, 2016.
“Third quarter results were impacted by continuing regional
volatility and falling oil prices in strategic end-markets, which
caused delays in new orders and in shipment of backlog orders,”
said Chuck Dougherty, AS&E’s President and CEO. “We are
maintaining our focus on managing operating expenses while
continuing to prioritize working capital improvements in order to
optimize cash flow generation, as we navigate this challenging
market environment.”
Dougherty continued, “We were pleased to receive the first order
for the Next Generation Z Portal® cargo and vehicle inspection
system, a $13-million contract for multiple systems from an African
government agency for counterterrorism applications. Additionally,
we received a five-year, follow-on Managed Services contract from
NATO to operate and maintain AS&E and third-party explosive
detection systems deployed in the Middle East. These initial orders
are the results of our long-term strategy of growing our portfolio
of solutions to capture and expand our opportunity pipeline in new
and existing markets.”
Chuck Dougherty, President and CEO, and Diane Basile, Senior
Vice President, CFO 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 Monday, February 8, 2016
at 4:30 p.m. ET.
To participate in the conference call, dial (877) 303-9143;
please dial at least 10 minutes prior to its starting time. For
international participants, please dial (760) 536-5194. The
conference identification number is 35811274. 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/xmu6ukgm.
An audio replay of the teleconference will be available, in its
entirety, starting Monday, February 8, 2016 at 7:30 p.m.
ET for a one-week period by dialing (855) 859-2056.
Internationally, please dial (404) 537-3406. The conference
identification number is 35811274. 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,
2015 |
|
December 31, 2014 |
|
December 31,
2015 |
|
December 31,
2014 |
Total net sales
and contract revenues |
$ |
|
22,173 |
|
$ |
36,980 |
$ |
|
78,754 |
|
$ |
|
95,583 |
|
|
|
|
|
|
|
|
|
|
Total cost of
sales and contracts |
|
|
11,277 |
|
|
19,873 |
|
|
41,078 |
|
|
|
52,324 |
|
Gross
profit |
|
|
10,896 |
|
|
17,107 |
|
|
37,676 |
|
|
|
43,259 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
7,693 |
|
|
7,627 |
|
|
22,735 |
|
|
|
24,936 |
|
Research and
development costs |
|
|
4,576 |
|
|
5,668 |
|
|
16,216 |
|
|
|
18,092 |
|
Total operating
expenses |
|
|
12,269 |
|
|
13,295 |
|
|
38,951 |
|
|
|
43,028 |
|
|
|
|
|
|
|
|
|
|
Operating
income (loss) |
|
|
(1,373 |
) |
|
3,812 |
|
|
(1,275 |
) |
|
|
231 |
|
Interest and other
income (expense), net |
|
|
(22 |
) |
|
18 |
|
|
(198 |
) |
|
|
(88 |
) |
Income (loss)
before provision for (benefit from) income taxes |
|
|
(1,395 |
) |
|
3,830 |
|
|
(1,473 |
) |
|
|
143 |
|
Provision for
(benefit from) income taxes |
|
|
(931 |
) |
|
1,276 |
|
|
(958 |
) |
|
|
41 |
|
|
|
|
|
|
|
|
|
|
Net income
(loss) |
$ |
|
(464 |
) |
$ |
2,554 |
$ |
|
(515 |
) |
$ |
|
102 |
|
|
|
|
|
|
|
|
|
|
Income (loss)
per share - Basic |
$ |
|
(0.06 |
) |
$ |
0.32 |
$ |
|
(0.07 |
) |
$ |
|
0.01 |
|
Income (loss)
per share - Diluted |
$ |
|
(0.06 |
) |
$ |
0.32 |
$ |
|
(0.07 |
) |
$ |
|
0.01 |
|
|
|
|
|
|
|
|
|
|
Weighted
average shares - Basic |
|
|
7,164 |
|
|
7,789 |
|
|
7,158 |
|
|
|
7,866 |
|
Weighted
average shares - Diluted |
|
|
7,164 |
|
|
7,796 |
|
|
7,158 |
|
|
|
7,877 |
|
|
|
|
|
|
|
|
|
|
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, 2015 |
|
March 31, 2015 |
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash
equivalents |
$ |
87,151 |
$ |
68,835 |
Restricted cash |
|
5,602 |
|
6,193 |
Short-term investments,
at fair value |
|
3,000 |
|
24,533 |
Accounts receivable,
net |
|
13,723 |
|
22,124 |
Unbilled costs and
fees |
|
2,697 |
|
1,848 |
Inventories, net |
|
39,561 |
|
40,983 |
Other current
assets |
|
12,066 |
|
13,187 |
Total current assets |
|
163,800 |
|
177,703 |
|
|
|
|
|
Non-current
assets: |
|
|
|
|
Equipment and leasehold
improvements, net |
|
6,425 |
|
8,711 |
Restricted cash |
|
1,587 |
|
208 |
Other assets |
|
6,245 |
|
6,486 |
Total assets |
$ |
178,057 |
$ |
193,108 |
|
|
|
|
|
Liabilities
& Stockholders' Equity |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts payable |
$ |
5,231 |
$ |
7,200 |
Customer deposits |
|
12,076 |
|
13,956 |
Deferred revenue |
|
11,158 |
|
7,355 |
Other current
liabilities |
|
8,409 |
|
12,664 |
Total current liabilities |
|
36,874 |
|
41,175 |
|
|
|
|
|
Non-current
liabilities: |
|
|
|
|
Deferred revenue |
|
1,861 |
|
1,019 |
Other non-current
liabilities |
|
676 |
|
507 |
Total liabilities |
|
39,411 |
|
42,701 |
|
|
|
|
|
Stockholders'
equity |
|
138,646 |
|
150,407 |
Total liabilities and stockholders'
equity |
$ |
178,057 |
$ |
193,108 |
|
|
|
|
|
AMERICAN SCIENCE AND ENGINEERING, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
For the Nine Months Ended |
|
|
December 31, 2015 |
|
December 31, 2014 |
|
Cash flows from
operating activities: |
|
|
|
|
Net income (loss) |
$ |
(515 |
) |
|
$ |
102 |
|
|
Adjustments to
reconcile net income (loss) to net cash provided by (used for)
operating activities: |
|
|
|
|
Depreciation and amortization |
|
2,882 |
|
|
|
3,624 |
|
|
Provisions for contracts, inventory
and accounts receivable reserves |
|
(5 |
) |
|
|
(237 |
) |
|
Amortization of bond premium |
|
72 |
|
|
|
713 |
|
|
Deferred income taxes |
|
- |
|
|
|
1,993 |
|
|
Stock compensation expense |
|
1,849 |
|
|
|
2,266 |
|
|
Other |
|
202 |
|
|
|
- |
|
|
|
|
|
|
|
Changes in assets and
liabilities: |
|
|
|
|
Accounts receivable |
|
8,443 |
|
|
|
7,500 |
|
|
Unbilled costs and fees |
|
(849 |
) |
|
|
(874 |
) |
|
Inventories |
|
1,385 |
|
|
|
(9,138 |
) |
|
Prepaid expenses and other
assets |
|
1,362 |
|
|
|
(6,324 |
) |
|
Accounts payable |
|
(1,969 |
) |
|
|
(3,868 |
) |
|
Accrued income taxes |
|
- |
|
|
|
(2,338 |
) |
|
Customer deposits |
|
(1,880 |
) |
|
|
2,312 |
|
|
Deferred revenue |
|
4,645 |
|
|
|
(1,781 |
) |
|
Accrued expenses and other
liabilities |
|
(4,086 |
) |
|
|
(7,917 |
) |
|
Net cash provided by
(used for) operating activities |
|
11,536 |
|
|
|
(13,967 |
) |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Purchases of short-term
investments |
|
- |
|
|
|
(29,211 |
) |
|
Proceeds from sales and maturities
of short-term investments |
|
21,465 |
|
|
|
56,433 |
|
|
Purchases of property and
equipment, net |
|
(798 |
) |
|
|
(1,668 |
) |
|
Net cash provided by
investing activities |
|
20,667 |
|
|
|
25,554 |
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
(Increase) decrease in restricted
cash |
|
(788 |
) |
|
|
2,482 |
|
|
Proceeds from exercise of stock
options |
|
- |
|
|
|
888 |
|
|
Repurchase of shares of common
stock |
|
(2,263 |
) |
|
|
(18,799 |
) |
|
Repayment of leasehold financing
liability |
|
- |
|
|
|
(928 |
) |
|
Payment of common stock
dividend |
|
(10,836 |
) |
|
|
(11,948 |
) |
|
Increase in income taxes due to the
tax benefit from employee stock option expense |
|
- |
|
|
|
306 |
|
|
Net cash used for
financing activities |
|
(13,887 |
) |
|
|
(27,999 |
) |
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
18,316 |
|
|
|
(16,412 |
) |
|
Cash and cash
equivalents at beginning of period |
|
68,835 |
|
|
|
62,143 |
|
|
Cash and cash
equivalents at end of period |
$ |
87,151 |
|
|
$ |
45,731 |
|
|
|
|
|
|
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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