Exhibit 99.1
EARNINGS RELEASE
For Immediate Release
Contact: Joseph Espeso (203) 853-0700
BOLT TECHNOLOGY REPORTS SECOND QUARTER RESULTS; NET INCOME INCREASES 224%
NORWALK, CT., January 25, 2006 – Bolt Technology Corporation (AMEX:BTJ) today announced financial results for the second quarter and the first six months of fiscal year 2006.
Sales for the second quarter of fiscal 2006, the three months ended December 31, 2005, increased 47% to $6,567,000 compared to $4,467,000 in last year’s second quarter and net income for the quarter increased 224% to $897,000 or $0.16 per diluted share compared to $277,000 or $0.05 per diluted share in last year’s second quarter.
For the first half of fiscal 2006, the six months ended December 31, 2005, sales increased 75% to $14,561,000 compared to $8,306,000 last year and net income increased 293% to $1,917,000 or $0.34 per diluted share compared to $488,000 or $0.09 per diluted share last year.
Raymond M. Soto, Bolt’s chairman, president and CEO, commented, “The improved results in the second quarter and the first six months of fiscal year 2006 reflect the continued strengthening of the marine seismic market. Major customers for our seismic energy sources have indicated that the demand for their services continues to increase and we expect that the final two quarters of fiscal 2006 will continue to show improvement over last year.”
Mr. Soto added, “To date in fiscal 2006, in addition to receiving increasing orders for (a) replacement parts for our energy sources, (b) energy source monitoring systems and (c) underwater electrical connectors and cables, we have received firm orders for energy source systems which aggregate in excess of $7,500,000. Approximately $3,000,000 of these system orders are scheduled for shipment in our third quarter and $4,500,000 are scheduled for shipment in our fourth quarter.”
Bolt Technology Corporation is a leading worldwide developer and manufacturer of seismic energy sources and underwater connectors used in offshore seismic exploration for oil and gas. Bolt also designs, manufactures and sells precision miniature industrial clutches, brakes and electric motors.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “estimate,” “project,” “anticipate,” “expect,” “predict,” “believe,” and similar expressions are intended to identify forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including, without limitation, risks associated with decreased demand for the Company’s products due to fluctuation in energy industry activity, reliance on certain significant customers, significant amount of foreign sales and other risks detailed in the Company’s filings with the Securities and Exchange Commission. Forward-looking statements involve a number of risks and uncertainties which could cause actual results or events to differ materially from those currently anticipated.
BOLT TECHNOLOGY CORPORATION
Condensed Consolidated Statements of Operations (Unaudited)
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| | | Three Months Ended
December 31,
| | Six Months Ended
December 31,
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| | | 2005
| | 2004
| | 2005
| | 2004
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Sales | | $ | 6,567,000 | | $ | 4,467,000 | | $ | 14,561,000 | | $ | 8,306,000 |
Costs and expenses | | | 5,190,000 | | | 4,018,000 | | | 11,574,000 | | | 7,517,000 |
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Income before income taxes | | | 1,377,000 | | | 449,000 | | | 2,987,000 | | | 789,000 |
Provision for income taxes | | | 480,000 | | | 172,000 | | | 1,070,000 | | | 301,000 |
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Net income | | $ | 897,000 | | $ | 277,000 | | $ | 1,917,000 | | $ | 488,000 |
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Earnings per share (diluted) | | $ | 0.16 | | $ | 0.05 | | $ | 0.34 | | $ | 0.09 |
Average shares outstanding (diluted) | | | 5,628,000 | | | 5,515,000 | | | 5,618,000 | | | 5,500,000 |
BOLT TECHNOLOGY CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
| | | | | | |
| | | December 31,
|
| | | 2005
| | 2004
|
Assets | | | | | | |
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Current Assets | | | | | | |
Cash and cash equivalents | | $ | 5,290,000 | | $ | 3,582,000 |
Accounts receivable, net | | | 3,908,000 | | | 2,460,000 |
Inventories | | | 6,202,000 | | | 5,063,000 |
Other | | | 440,000 | | | 343,000 |
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| | | | 15,840,000 | | | 11,448,000 |
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Property and equipment, net | | | 1,793,000 | | | 776,000 |
Goodwill and other | | | 11,142,000 | | | 11,171,000 |
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| | | $ | 28,775,000 | | $ | 23,395,000 |
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| | | December 31,
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| | | 2005
| | 2004
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Liabilities and Stockholders’ Equity | | | | | | |
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Current Liabilities | | | | | | |
Accounts payable | | $ | 1,491,000 | | $ | 644,000 |
Accrued expenses | | | 953,000 | | | 702,000 |
Income taxes payable | | | 945,000 | | | 90,000 |
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| | | | 3,389,000 | | | 1,436,000 |
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Deferred income taxes | | | 394,000 | | | 55,000 |
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Total liabilities | | | 3,783,000 | | | 1,491,000 |
Stockholders’ equity | | | 24,992,000 | | | 21,904,000 |
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| | | $ | 28,775,000 | | $ | 23,395,000 |
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