The LGL Group, Inc. (NYSE MKT: LGL) (the "Company"), announced results
for the quarter ended March 31, 2014.
Total revenues for the three months ended March 31, 2014, were
approximately $6.1 million, a decrease of 17.6% compared to revenues of
$7.4 million for the comparable period in 2013. The Company reported a
net loss of ($0.8) million, or ($0.31) per share for the quarter ended
March 31, 2014, compared with a net loss of ($0.1) million, or ($0.03)
per share for the same period in 2013. Adjusted EBITDA, which excludes
non-cash stock-based compensation, was a loss of ($0.5) million, or
($0.18) per share, for first quarter of 2014, compared to income of $0.1
million, $0.03 per share, for the same period in 2013.
Gross margins for the quarter ended March 31, 2014, were 26.0%, compared
to 32.5% for the comparable period in 2013. The decrease was primarily
due to a 17.6% decrease in revenues as well as a less favorable product
mix compared to the same prior year period. The Company is focusing
research and development efforts on strengthening and differentiating
its high reliability RF and microwave portfolio, with the goal of adding
differentiated product offerings, expanded client access, and new
As previously announced, on January 31, 2014, the Company's primary
operating subsidiary, MtronPTI, acquired certain filter product line
assets from Trilithic, Inc. ("Trilithic"), including intellectual
property and equipment for fixed and tunable filter products used in
cellular, defense and other wireless applications.
Greg Anderson, LGL's President and CEO, said "Q1 2014 was a challenge in
many respects as we felt the impact of price compression and reduced
demand within our core market segments. However, we are making steady
progress on the journey to transform our business by leveraging our core
strength as an engineering and technical leader within the markets we
serve, and by revitalizing our intellectual property through investments
like the Trilithic asset purchase that strengthen MtronPTI's high
reliability RF/microwave portfolio, leading to longer product life
cycles and better margins."
Backlog Improved to $9.1M; Solid Capital Position
As of March 31, 2014, the Company's order backlog was $9.1 million, an
increase of 5.8% compared to $8.6 million as of December 31, 2013, and
an increase of 8.3% compared to $8.4 million as of March 31, 2013. The
backlog increase is due to an increase in repeat orders for existing
products and new orders resulting from our recent acquisition of certain
filter product line assets from Trilithic on January 31, 2014.
Cash and cash equivalents as of March 31, 2014, was $6.1 million, or
$2.35 per share, and cash-adjusted working capital (accounts receivable,
plus inventory, less accounts payable) remained at $5.9 million, or
$2.27 per share, at March 31, 2014, as compared to December 31, 2013.
Mr. Anderson said, "We have had a positive book to bill ratio (ratio of
bookings to shipments) for three quarters now, and quote activity
remains high. With our focus on investing in new intellectual property
and on improving our cost structure, we are repositioning the Company
for long-term value creation."
Investor's Conference Call Scheduled for Wednesday, May 14, 2014, at
10:00 A.M. ET
An investor conference call is scheduled for Wednesday, May 14, 2014, at
10:00 a.m. ET. The purpose of the call is to discuss the Company's Q1
2014 earnings results, current business activities and strategy.
Participants are invited to "attend" the online meeting using
Conferencing Center LIVE; or access the conference call at (800)
862-9098 for domestic callers and (785) 424-1051 for
international callers. The participant code is LGLIR0514.
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
devices are used extensively in electronic systems for military
applications, avionics, earth-orbiting satellites, medical devices,
instrumentation, industrial devices and global positioning systems. They
are also used in infrastructure equipment for the telecommunications and
network equipment industries. The Company has operations in Orlando,
Florida, Yankton, South Dakota, Yantai, China and Noida, India, and
sales offices in Sacramento, California, Eindhoven, The Netherlands,
Hong Kong and Shanghai, China.
For more information on the Company and its products and services,
contact R. LaDuane Clifton, Chief Financial Officer, The LGL Group,
Inc., 2525 Shader Rd., Orlando, Florida 32804, (407) 298-2000, or visit
the Company's Web site: www.lglgroup.com.
Caution Concerning Forward Looking Statements
This document includes certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are
subject to uncertainty and changes in circumstances. Actual results may
differ materially from these expectations due to changes in global
political, economic, business, competitive, market and regulatory
factors. More detailed information about those factors is contained in
The LGL Group's filings with the U.S. Securities and Exchange Commission.
THE LGL GROUP, INC.
Condensed Consolidated Statements of Operations - UNAUDITED
(Dollars in Thousands, Except Per Share Amounts)
Weighted average number of shares used in basic and diluted EPS
BASIC AND DILUTED NET LOSS PER COMMON SHARE
Condensed Consolidated Balance Sheets - UNAUDITED
(Dollars in Thousands)
Reconciliations of GAAP to Non-GAAP Measures
To supplement our condensed consolidated financial statements presented
on a GAAP basis, the Company uses non-GAAP additional measures of
operating results, net earnings and earnings per share adjusted to
exclude certain costs, expenses, gains and losses we believe appropriate
to enhance an overall understanding of our past financial performance
and also our prospects for the future. 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. For example, the
non-GAAP results are an indication of our baseline performance before
gains, losses or other charges that are considered by management to be
outside of our core business segment operational results. 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 GAAP Loss Before Income Taxes to
Non-GAAP Adjusted EBITDA Income (Loss)
Weighted average number of shares used in basic and diluted EPS
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