Exhibit 99.1
| | | | |
| Media Contact | | | | Investor Relations |
| Vicki Contavespi | | | | Jessica Bartlow |
| T+ 1.571.209.7660 | | | | T+ 1.703.678.2114 |
| vicki.contavespi@icxt.com | | | | jessica.bartlow@icxt.com |
ICX TECHNOLOGIES REPORTS FIRST-QUARTER 2009 RESULTS
Records 32 percent growth, third consecutive profitable quarter
Arlington, Va. (May 14, 2009) – ICx Technologies, Inc. (Nasdaq GS: ICXT), a developer of advanced sensor technologies for homeland security, force protection and commercial applications, announced today its operating and financial results for the first quarter ended Mar. 31, 2009.
First-Quarter Financials
For the quarter ended Mar. 31, 2009, ICx reported revenues of $47.8 million, compared to $36.3 million for the quarter ended Mar. 31, 2008, representing a 32 percent increase year-over-year. The Company also achieved its third consecutive positive quarter, showing adjusted EBITDA profits of $0.7 million, an improvement of $7.4 million over the first quarter loss in 2008. Funded backlog increased to $85 million at the end of the quarter, up 85 percent from the $46 million reported on Mar. 31, 2008.
The continued growth was driven by high demand in government markets for the Company’s surveillance and solutions business offerings.
“We are proud that in this tough environment we maintained our high growth, and with tight cost control and increased operational synergies, we were profitable on an adjusted EBITDA basis for the third quarter in a row,” remarked Colin Cumming, ICx President and CEO.
Key First-Quarter Highlights
| • | | South Korean military awarded ICx a Mass Spectrometry Contract with an estimated value of up to $40 million. The contract is for the development of a chemical and biological mass spectrometer (CBMS) for use in military reconnaissance vehicles. ICx Analytical Instruments will work jointly with ICx BioDefense to deliver a premium-class biological and chemical detection system. The CBMS system will be capable of detecting both chemical and biological warfare agents. |
| • | | The ICx surveillance group continued its strong performance on the BETSS-C program, resulting in record sales of $16.1 million, a 49 percent increase over the same quarter in the prior year. |
| • | | ThreatSense™, a comprehensive chemical, biological, radiation and nuclear (CBRN) security solution, was released. It is designed to improve time-to-detection, providing lower deployment costs and reducing false alarms. ThreatSense provides a comprehensive and layered approach to CBRN security by allowing facility managers to customize the system, and their own concept of operations (CONOPS), to best meet their evolving needs. |
| • | | In response to a high-priority need, ICx provided four SkyWatch™ towers, two DefendIR™ thermal cameras, four IBAC™ biological sensor units and two Illuminator™ cameras to help ensure security for the inauguration of President Barack Obama at the Capital and on the National Mall. The equipment was provided to the U.S. Park Police, in cooperation with the National Park Service; ICx personnel conducted pre-event training for security personnel, and members of the ICx technical staff will also be on site for product and staff support. |
| • | | With the success of our program efforts with DoD, DHS and the transportation markets, our unfunded backlog remained strong at $347 million. |
| • | | ICx was selected to support GBOSS, or Ground Based Surveillance System, a major Marine Corps Program. ICx will develop a tower-based sensor system with networked remote operational capability to enhance the detection and surveillance of hostile troop movements. |
Revenue and Earnings Outlook for 2009
ICx today reconfirmed its annual adjusted EBITDA guidance in the range of $2 to $7 million, but lowered its revenue guidance to a range of $190 million to $200 million. Because of the ongoing uncertainty about the global economy and delays in economic stimulus spending, ICx believes that revenue growth will be less than originally expected. As a result, the Company implemented additional cost-control measures during the first quarter and believes that it will achieve adjusted EBITDA results in the same $2 million to $7 million range that it previously reported.
Conference Call
In connection with the earnings release, ICx will host a conference call and Webcast for investors and analysts to discuss its results for the quarter on May 14, 2009 at 4:30 p.m. eastern time.
Participants should call, toll-free, 877-874-1569 (United States/Canada), or 719-325-4774, and request the ICx Technologies call.A telephonic replay will be available for anyone unable to participate in the live call. To access the replay, call 719-457-0820 (United States/Canada), or call toll-free at 888-203-1112 and enter confirmation code 5838465. The recording will be available from 7:30 p.m. (EDT) on Thursday, May 14, 2009, through midnight, May 21, 2009 (EDT). A live broadcast of the earnings conference call will also be available via the Internet at http://www.ICXT.com in the ‘Events & Presentations’ section under ‘Investor Relations’. The webcast will be archived on the site for 60 days.
About ICx Technologies, Inc.
ICx Technologies is a leader in the development and integration of advanced sensor technologies for homeland security, force protection and commercial applications. Our proprietary sensors detect and identify chemical, biological, radiological, nuclear and explosive threats, and deliver superior awareness and actionable intelligence for wide-area surveillance, intrusion detection and facility security. We then leverage our unparalleled technical expertise and government funding to address other emerging challenges of our time including a cleaner environment, alternative energy, life science and “smart transportation”.
Safe-Harbor Statement
All forward-looking statements contained in this release are made within the meaning of and pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are all statements other than statements of historical facts, including but not limited to statements concerning the outlook for the Company’s revenues and Adjusted EBITDA for fiscal 2009; and all other statements concerning the plans, intentions, expectations, projections, hopes, beliefs, objectives, goals and strategies of management. Forward-looking statements are not guarantees of future performance or events and are subject to a number of known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed, projected or implied by such forward-looking statements. Important risks, uncertainties and other factors include, but are not limited to, demand for the Company’s products and services; the ability of the Company to successfully develop and expand its products, services, technologies and markets; the ability of the Company to effectively assimilate acquired businesses and achieve the anticipated benefits of its acquisitions; changes in U.S. government funding levels to purchase the Company’s products and services; the ability of the Company to sell its products to original equipment manufacturers, prime contractors and system integrators; seasonality; competition; the ability of the Company to develop innovative products; the ability of the Company to attract, retain and motivate key personnel; the ability of the Company to secure and maintain key contracts and relationships, including contracts with the U.S. government; general economic, market and business conditions, uncertainties and other factors identified from time to time in the Company’s filings with the Securities and Exchange Commission. Accordingly, there can be no assurance that the results expressed, projected or implied by any forward-looking statements will be achieved, and readers are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements in this press release speak only as of the date hereof and are based on the current plans, goals, objectives, strategies, intentions, expectations and assumptions of, and the information currently available to, management. The Company assumes no duty or obligation to update or revise any forward-looking statements for any reason, whether as the result of changes in expectations, new information, future events, conditions or circumstances or otherwise.
Use of Non-GAAP Financial Measures
In evaluating its business, ICx considers and uses Adjusted EBITDA as a supplemental measure of its operating performance. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, minus non-cash equity compensation. The Company also presents Adjusted EBITDA because it believes it is frequently used by securities analysts, investors and other interested parties as a measure of financial performance. The term Adjusted EBITDA is not defined under U.S. generally accepted accounting principles, or U.S. GAAP, and is not a measure of operating income, operating performance or liquidity presented in accordance with U.S. GAAP. Adjusted EBITDA has limitations as an analytical tool, and when assessing the Company’s operating performance, investors should not consider Adjusted EBITDA in isolation, or as a substitute for net income (loss) or other consolidated income statement data prepared in accordance with U.S. GAAP. Among other things, Adjusted EBITDA does not reflect the Company’s actual cash expenditures. Other companies may calculate similar measures differently than ICx, limiting their usefulness as comparative tools. ICx compensates for these limitations by relying primarily on its GAAP results and using Adjusted EBITDA only supplementally.
ICx TECHNOLOGIES, INC. AND SUBSIDIARIES
Consolidated Statements of Operations and Net Loss
(Unaudited)
(dollars in thousands, except per share amounts)
| | | | | | | | |
| | | Unaudited
Three Months Ended
March 31, | |
| | | 2009 | | | 2008 | |
Revenues: | | | | | | | | |
Product revenues | | $ | 16,615 | | | $ | 20,364 | |
Contract research and development revenues | | | 11,282 | | | | 11,976 | |
Service and other revenue | | | 19,887 | | | | 3,913 | |
| | | | | | | | |
Total revenues | | | 47,784 | | | | 36,253 | |
| | | | | | | | |
| | |
Cost of revenues: | | | | | | | | |
Cost of product revenues | | | 8,212 | | | | 10,130 | |
Cost of contract research and development revenues | | | 8,314 | | | | 7,683 | |
Cost of service and other revenues | | | 14,324 | | | | 2,557 | |
| | | | | | | | |
Total cost of revenue | | | 30,850 | | | | 20,370 | |
| | | | | | | | |
Gross profit | | | 16,934 | | | | 15,883 | |
| | | | | | | | |
| | |
Operating expenses: | | | | | | | | |
General and administrative | | | 7,284 | | | | 9,638 | |
Sales and marketing | | | 6,405 | | | | 7,831 | |
Research and development | | | 3,596 | | | | 6,684 | |
Depreciation and amortization | | | 3,102 | | | | 3,287 | |
| | | | | | | | |
Total operating expenses | | | 20,387 | | | | 27,440 | |
| | | | | | | | |
Operating loss | | | (3,453 | ) | | | (11,557 | ) |
| | | | | | | | |
| | |
Other income (expense): | | | | | | | | |
Interest income | | | 52 | | | | 430 | |
Interest expense | | | (17 | ) | | | (18 | ) |
Other, net | | | 56 | | | | (122 | ) |
| | | | | | | | |
Total other income | | | 91 | | | | 290 | |
| | | | | | | | |
Loss before income taxes | | | (3,362 | ) | | | (11,267 | ) |
Income tax expense (benefit) | | | 113 | | | | (32 | ) |
| | | | | | | | |
Loss from continuing operations | | $ | (3,475 | ) | | $ | (11,235 | ) |
Loss on sale of discontinued operations, net of tax | | | — | | | | (903 | ) |
| | | | | | | | |
Net loss | | $ | (3,475 | ) | | $ | (12,138 | ) |
| | | | | | | | |
| | |
Other comprehensive income | | | | | | | | |
Foreign currency translation adjustment, net of tax | | | (779 | ) | | | 554 | |
| | | | | | | | |
Comprehensive loss | | $ | (4,254 | ) | | $ | (11,584 | ) |
| | | | | | | | |
| | |
Net loss per common share | | | | | | | | |
Basic and diluted | | $ | (0.10 | ) | | $ | (0.36 | ) |
| | | | | | | | |
| | |
Reconciliation of Non-GAAP Measure: | | | | | | | | |
Net loss | | $ | (3,475 | ) | | $ | (12,138 | ) |
Add (subtract) | | | | | | | | |
Loss from discontinued operations | | | — | | | | 903 | |
Income tax expense (benefit) | | | 113 | | | | (32 | ) |
Interest income | | | (52 | ) | | | (430 | ) |
Interest expense | | | 17 | | | | 18 | |
Depreciation and amortization | | | 3,102 | | | | 3,287 | |
Stock-based compensation expense | | | 1,039 | | | | 1,670 | |
| | | | | | | | |
Adjusted EBITDA | | $ | 744 | | | $ | (6,722 | ) |
| | | | | | | | |
ICx TECHNOLOGIES, INC. AND SUBSIDIARIES
Condensed Balance Sheets
(Unaudited)
(dollars in thousands)
| | | | | | |
| | | March 31,
2009 | | December 31,
2008 |
| Assets | | | | | | |
Current assets: | | | | | | |
Cash and cash equivalents | | $ | 35,298 | | $ | 38,782 |
Trade accounts receivable, net | | | 27,856 | | | 37,101 |
Inventories | | | 24,302 | | | 26,230 |
Other current assets | | | 13,771 | | | 13,657 |
| | | | | | |
Total current assets | | | 101,227 | | | 115,770 |
Property, plant and equipment, net | | | 10,745 | | | 10,914 |
Goodwill and intangibles, net | | | 87,309 | | | 89,871 |
Other noncurrent assets | | | 3,208 | | | 2,743 |
| | | | | | |
Total assets | | $ | 202,489 | | $ | 219,298 |
| | | | | | |
| | |
| Liabilities and Stockholders’ Equity | | | | | | |
Current liabilities | | $ | 25,772 | | $ | 39,026 |
Noncurrent liabilities | | | 2,425 | | | 2,465 |
| | | | | | |
Total liabilities | | | 28,197 | | | 41,491 |
| | | | | | |
| | |
Total stockholders’ equity | | | 174,292 | | | 177,807 |
| | | | | | |
Total liabilities and stockholders’ equity | | $ | 202,489 | | $ | 219,298 |
| | | | | | |
ICx TECHNOLOGIES, INC. AND SUBSIDIARIES
Selected Segment Information
(Unaudited)
(dollars in thousands)
| | | | | | | | |
| | | Three Months Ended
March 31, | |
| | | 2009 | | | 2008 | |
Detection | | | | | | | | |
Product revenue | | $ | 9,295 | | | $ | 11,634 | |
Contract research and development revenue | | | 11,084 | | | | 7,529 | |
Service and other revenue | | | 819 | | | | 483 | |
| | | | | | | | |
Total revenue | | $ | 21,198 | | | $ | 19,646 | |
Gross profit % | | | 40.3 | % | | | 49.1 | % |
| | | | | | | | |
| | |
Surveillance | | | | | | | | |
Product revenue | | $ | 5,112 | | | $ | 5,997 | |
Contract research and development revenue | | | 198 | | | | 4,442 | |
Service and other revenue | | | 10,770 | | | | 365 | |
| | | | | | | | |
Total revenue | | $ | 16,080 | | | $ | 10,804 | |
Gross profit % | | | 32.7 | % | | | 36.4 | % |
| | | | | | | | |
| | |
Solutions | | | | | | | | |
Product revenue | | $ | 2,232 | | | $ | 2,734 | |
Contract research and development revenue | | | 35 | | | | 5 | |
Service and other revenue | | | 8,388 | | | | 3,065 | |
| | | | | | | | |
Total revenue(1) | | $ | 10,655 | | | $ | 5,804 | |
Gross profit % | | | 29.4 | % | | | 39.7 | % |
| | | | | | | | |
(1) | Includes $149 of intersegment revenue that has been eliminated in the Consolidated Statement of Operations and Net Loss for the three months ended March 31, 2009 |
