ADDvantage Technologies Group, Inc.
1221 E. Houston
Broken Arrow, Oklahoma 74012
| For further information | KCSA Strategic Communications |
| Company Contact: | Garth Russell / Diane Imas |
| Scott Francis (9l8) 25l-9121 | (212) 896-1250 / (212) 896-1242 |
| grussell@kcsa.com / dimas@kcsa.com |
ADDvantage Technologies Announces Financial Results for the
Fiscal Third Quarter of 2013
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BROKEN ARROW, Oklahoma, August 13, 2013 – ADDvantage Technologies Group, Inc. (NASDAQ: AEY), today announced its results for the three and nine month periods ended June 30, 2013.
Revenue for the three months ended June 30, 2013 decreased 16% to $7.2 million compared to $8.5 million for the same period last year. New equipment sales were $4.3 million for the three months ended June 30, 2013 as compared to $4.7 million for the three months ended June 30, 2012. Net refurbished equipment sales were $1.9 million for the three months periods ended June 30, 2013 as compared to $2.7 million for same period in 2012. Service revenue decreased to $1.0 million for the three month period ended June 30, 2013 compared to $1.1 million for the same period last year.
Net income decreased to $0.2 million, or $0.02 per basic and diluted share, for the three month period ended June 30, 2013, compared to $0.5 million, or $0.05 per basic and diluted share, for the same period last year.
For the nine months ended June 30, 2013, revenue decreased to $25.0 million from $26.7 million for the same period last year. The decrease in net sales was primarily due to the continued decrease in plant expansions and bandwidth upgrades in the cable television industry, partially offset by increased equipment sales as a result of Hurricane Sandy.
Net income increased $0.5 million to $1.3 million, or $0.13 per basic and diluted share, for the nine month period ended June 30, 2013 as compared to $0.8 million, or $0.08 per basic and diluted share, for the first nine months of fiscal 2012. The nine month period ended June 30, 2012 included a charge to interest expense of $0.8 million associated with the termination of an interest rate swap agreement following the early payoff of one of its term loans in March 2012.
Cash and cash equivalents were $8.2 million as of June 30, 2013 compared to $5.2 million as of September 30, 2012. As of June 30, 2013, we had inventory of $21.4 million compared to $22.7 million as of September 30, 2012.
“While the results for the third quarter are disappointing from a revenue standpoint, we still achieved positive net income and cash flows, which further strengthened our balance sheet,” stated David Humphrey, President and CEO. “In addition, we have seen an uptick in customer demand in the current quarter. And we are still focused on executing our growth strategy, which includes growing our existing business as well as executing strategic acquisitions.”
“In connection with this strategy, we are in the process of hiring three veteran salespeople formerly with one of our large OEM partners. These new salespeople have relationships with many of the large MSOs and an in-depth understanding of the various MSO infrastructures, which will help us better target our sales efforts going forward. This team is already working with us on a temporary basis and is expected to officially join us at the end of August.”
“In addition, we are still working with our investment banker in our efforts to identify and execute a strategic acquisition within the CATV and telecommunication equipment markets.”
“The path we have taken for the Company’s growth is coming together as we execute upon our strategy. By building out our team and diversifying our business with a strategic acquisition, we believe that our company will be well positioned for long term growth,” concluded Mr. Humphrey.
Earnings Conference Call
The Company will host a conference call on Tuesday, August 13, 2013, at 12:00 p.m. Eastern Time featuring remarks by Ken Chymiak, Chairman of the Board, David Humphrey, President and Chief Executive Officer, Dave Chymiak, Chief Technology Officer, and Scott Francis, Chief Financial Officer. The conference call will be available via webcast and can be accessed through the Investor Relations section of ADDvantage's website, www.addvantagetechnologies.com. Please allow extra time prior to the call to visit the site and download any necessary software to listen to the Internet broadcast. The dial-in number for the conference call is 888-572-7025 (domestic) or 719-457-2664 (international). All dial-in participants must use the following code to access the call: 7596918. Please call at least five minutes before the scheduled start time.
For interested individuals unable to join the conference call, a replay of the call will be available through August 27, 2013 at 877-870-5176 (domestic) or 858-384-5517 (international). Participants must use the following code to access the replay of the call: 7596918. The online archive of the webcast will be available on the Company's website for 30 days following the call.
About ADDvantage Technologies Group, Inc.
ADDvantage Technologies Group, Inc. supplies the cable television (CATV) industry with a comprehensive line of new and used system-critical network equipment and hardware from leading manufacturers, including Cisco, Motorola, ARRIS and Fujitsu Frontech North America, as well as operating a national network of technical repair centers. The equipment and hardware ADDvantage distributes is used to acquire, distribute, and protect the broad range of communications signals carried on fiber optic, coaxial cable and wireless distribution systems, including television programming, high-speed data (Internet) and telephony.
ADDvantage operates through its subsidiaries, Tulsat, Tulsat-Atlanta, Tulsat-Nebraska, Tulsat-Texas, NCS Industries, ComTech Services and Adams Global Communications. For more information, please visit the corporate web site at www.addvantagetechnologies.com.
The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company’s reports and documents filed from time to time with the Securities and Exchange Commission.
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ADDVANTAGE TECHNOLOGIES GROUP, INC.
ADDVANTAGE TECHNOLOGIES GROUP, INC.
