EXHIBIT 99.1
FOR IMMEDIATE RELEASE
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| Contact: |
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| David Almeida |
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| Chief Financial Officer |
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| Axsys Technologies, Inc. |
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| (860) 257-0200 |
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| www.axsys.com |
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AXSYS TECHNOLOGIES ANNOUNCES FIRST QUARTER RESULTS
• Sales Increase 6.8% Over 2002
• Pre-Tax Income from Continuing Operations Increases to $915,000
ROCKY HILL, CONN. – April 28, 2003 – Axsys Technologies, Inc. (NASDAQ: AXYS), a global leader in the design, manufacture and distribution of precision opto-mechanical components and assemblies found in high performance aerospace, defense and commercial equipment for high-technology markets, today announced results for the first quarter of 2003.
Sales totaled $20.4 million in the quarter ended March 29, 2003, compared to $19.1 million in the first quarter of 2002, an increase of $1.3 million, or 6.8 percent. In the first quarter of 2003, Axsys reported income from continuing operations of $874,000, or $0.19 per share, compared to a loss from continuing operations of $1.9 million, or ($0.40) per share, in the quarter ended March 30, 2002.
The income tax provision for the first quarter of 2003 reflects only state income tax expense due to the utilization of $320,000 of the previously established federal tax valuation allowance.
Total company bookings in the first quarter of 2003 were $19.9 million compared to $19.7 million in the first quarter of 2002, an increase of $0.2 million, or 1.0 percent. Bookings within the first quarter of 2003 for the Aerospace and Defense Group were $10.3 million representing 51.8 percent of the total company bookings, while bookings for the Distributed Products Group and the Commercial Products Group were $4.7 million and $4.9 million, respectively.
Sales within the Aerospace and Defense Group during the quarter totaled $12.1 million, an increase of 11.8 percent from the first quarter of 2002. The Distributed Products Group’s sales totaled $5.1 million, representing a 2.6 percent increase from the first quarter of 2002 and sales within the Commercial Products Group totaled $3.2 million, a 3.8 percent decline from the first quarter of 2002.
Gross margin in the first quarter of 2003 was 26.7 percent, which compares favorably to a 23.0 percent gross margin reported for the same period in 2002. The gross margin improvement is primarily the result of higher volume, favorable mix and improvement in operational efficiencies. Pre-tax income from continuing operations in the first quarter of 2003
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was $915,000. This compares to a pre-tax loss of $1.4 million in the first quarter of 2002. The pre-tax loss for the first quarter of 2002 included $1.3 million of restructuring and special charges and $303,000 of operating losses related to the sale of our Teletrac, Inc. subsidiary.
Stephen W. Bershad, Chairman and Chief Executive Officer of Axsys, commented, “The results for the quarter reflect the strides we have made in strengthening the company’s foundation. In spite of a weak economy, we have been able to improve our performance in all of our businesses. Our margins have increased due to process improvements throughout our operations. We are broadening our customer base not only by capturing new customers within our core markets, but also by developing new markets. Lastly, we are leveraging our core technology to develop new products that create greater value for our customers. We expect these efforts will continue to show benefits as the overall economy begins to improve.”
Axsys’ management invites you to listen to our conference call or our live audio web cast on April 29, 2003, at 10 a.m. ET regarding first quarter of 2003 financial results. The domestic dial-in number is (800) 634-1568, the international dial-in number is (212) 748-2716 and the access number is 21141534. This call is being web cast by CCBN and can be accessed at Axsys Technologies’ Web site at www.axsys.com.
A replay of the conference call will begin at 1:00 p.m. ET on April 29, 2003, and will be available until May 5, 2003, at 1:00 p.m. ET. The replay can be accessed by dialing (800) 633-8284 or, outside the U.S., (402) 977-9140, with an access number of 21141534. The web cast replay will be available until May 29, 2003.
Axsys Technologies Inc. is a vertically integrated supplier of precision optical and motion control components and assemblies for high-technology applications, serving the aerospace, defense, semiconductor and graphic arts markets. For more information, contact Axsys Technologies Inc., at www.axsys.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. One can identify these forward-looking statements by the use of the words such as “expect,” “anticipate,” “plan,” “may,” “will,” “estimate” or other similar expressions. Because such statements apply to future events, they are subject to risks and uncertainties that could cause the actual results to differ materially. Important factors, which could cause actual results to differ materially, are described in Axsys’ reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.
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AXSYS TECHNOLOGIES, INC.
Consolidated Balance Sheets
(in thousands)
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| March 29, |
| December 31, |
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| (Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
| $ | 9,245 |
| $ | 9,920 |
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Accounts receivable – net |
| 12,460 |
| 10,068 |
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Inventories – net |
| 24,727 |
| 22,080 |
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Income taxes – deferred and current |
| 4,077 |
| 4,077 |
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Other current assets |
| 875 |
| 1,046 |
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TOTAL CURRENT ASSETS |
| 51,384 |
| 47,191 |
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PROPERTY, PLANT AND EQUIPMENT – net |
| 11,459 |
| 11,263 |
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EXCESS OF COST OVER NET ASSETS ACQUIRED |
| 3,600 |
| 3,600 |
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OTHER ASSETS |
| 318 |
| 318 |
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TOTAL ASSETS |
| $ | 66,761 |
| $ | 62,372 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
| $ | 7,379 |
| $ | 3,108 |
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Accrued expenses and other liabilities |
| 8,536 |
| 9,285 |
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Deferred income |
| 3,409 |
| 3,115 |
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Current portion of capital lease obligation |
| 945 |
| 1,055 |
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TOTAL CURRENT LIABILITIES |
| 20,269 |
| 16,563 |
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CAPITAL LEASES, less current portion |
| 1,028 |
| 1,191 |
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OTHER LONG-TERM LIABILITIES |
| 5,481 |
| 5,525 |
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COMMITMENTS AND CONTINGENCIES |
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SHAREHOLDERS’ EQUITY: |
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Common stock |
| 47 |
| 47 |
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Capital in excess of par |
| 39,585 |
| 39,587 |
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Retained earnings |
| 1,626 |
| 752 |
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Treasury stock |
| (1,275 | ) | (1,293 | ) | ||
TOTAL SHAREHOLDERS’ EQUITY |
| 39,983 |
| 39,093 |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
| $ | 66,761 |
| $ | 62,372 |
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See accompanying notes to consolidated financial statements
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AXSYS TECHNOLOGIES, INC.
Consolidated Statements of Operations
(in thousands, except per share data - Unaudited)
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| For the Three-Months Ended |
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| March 29, 2003 |
| March 30, 2002 |
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| Restated (1) |
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Net sales |
| $ | 20,373 |
| $ | 19,092 |
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Cost of sales |
| 14,926 |
| 14,695 |
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Gross margin |
| 5,447 |
| 4,397 |
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Selling, general and administrative expenses |
| 4,103 |
| 4,006 |
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Research, development and engineering expenses |
| 471 |
| 590 |
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Restructuring and special charges |
| — |
| 1,281 |
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Operating income (loss) |
| 873 |
| (1,480 | ) | ||
Interest expense |
| (51 | ) | (55 | ) | ||
Interest income |
| 30 |
| 54 |
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Other income |
| 63 |
| 62 |
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Income (loss) from continuing operations before tax and cumulative effect of change in accounting principle |
| 915 |
| (1,419 | ) | ||
Provision for income taxes |
| (41 | ) | (442 | ) | ||
Income (loss) from continuing operations before cumulative effect of change in accounting principle |
| 874 |
| (1,861 | ) | ||
Loss from discontinued operations |
| — |
| (899 | ) | ||
Cumulative effect of change in accounting principle |
| — |
| 535 |
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Net income (loss) |
| $ | 874 |
| $ | (2,225 | ) |
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BASIC INCOME (LOSS) PER SHARE: |
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Income (loss) from continuing operations before cumulative effect of change in accounting principle |
| $ | 0.19 |
| $ | (0.40 | ) |
Loss from discontinued operations |
| — |
| (0.18 | ) | ||
Cumulative effect of change in accounting principle |
| — |
| 0.11 |
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Total |
| $ | 0.19 |
| $ | (0.47 | ) |
Weighted average basic common shares outstanding |
| 4,655 |
| 4,697 |
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DILUTED INCOME (LOSS) PER SHARE: |
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Income (loss) from continuing operations before cumulative effect of change in accounting principle |
| $ | 0.19 |
| $ | (0.40 | ) |
Loss from discontinued operations |
| — |
| (0.18 | ) | ||
Cumulative effect of change in accounting principle |
| — |
| 0.11 |
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Total |
| $ | 0.19 |
| $ | (0.47 | ) |
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Weighted average dilutive common shares outstanding |
| 4,669 |
| 4,697 |
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(1) Certain reclassifications have been made to conform to the 2003 presentation, including the reclassification of the Automation Group to discontinued operations and the recording of a tax valuation allowance.
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