EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact:
Jean M. Nelson
AMX Corporation
800.222.0193
jean.nelson@amx.com
AMX Corporation Reports Profitable Third
Quarter Results
RICHARDSON, TX—January 23, 2003—AMX Corporation (Nasdaq: AMXC), a worldwide leader in advanced control system technology, today announced positive operating results for the fifth consecutive quarter. For the fiscal third quarter ended December 31, 2002, revenues were $20.3 million and AMX reported net income of $0.4 million or $0.03 per diluted share as compared to revenues of $21.3 million and pro forma net income of $0.8 million or $0.08 per diluted share in the year ago quarter. Reported results, on a GAAP basis, for the year ago quarter were $0.3 million or $0.3 per diluted share after deducting restructuring charges of $0.5 million.
Total revenues were down 5% compared to the year ago quarter. Commercial revenue of $17.5 million, which represents approximately 86% of total revenue and includes both domestic and international sales, was down 2% from the year ago quarter. Residential revenue decreased 20% from the year ago quarter, but was up 13% from the trailing quarter revenue.
On a year to date basis, overall revenues were down 5% as compared to the year ago period. Overall commercial revenues were flat as compared to the prior period. Residential revenues were down 30% year over year.
Commenting on the Company’s performance, Bob Carroll, President and Chief Executive Officer said: “While we are pleased with our fifth quarter of positive operating results in this difficult economic climate, we recognize that we must continue to execute our rebuilding plan for the company in order to achieve sales growth. We continue to be very focused on reinvesting in our core business, which had been lacking in years past, and have made significant progress as evidenced by important award winning product introductions in the past 6 months.”
“In December, AMX began shipping its award winning Modero touch panels. In every feature and function, our Modero panels surpass the capabilities of other panels on the market today. In recognition of the outstanding engineering work behind the Modero, the panels recently were awarded the prestigious Design
and Engineering Showcase Award at the International Consumer Electronics Show in Las Vegas. We believe that our long-term success will be driven by product innovation and our product development activities will continue at an aggressive pace. These efforts along with our operational improvements over the past 15 months have strongly positioned AMX for future revenue growth and improved operating results,” continued Carroll.
“We continue to manage our operating expenses while making balanced, yet significant investments in our research and development efforts,” said Jean Nelson, Vice President and Chief Financial Officer. “Our balance sheet and liquidity position continue to strengthen evidenced by net operating and investing cash flow, or free cash flow, of $1.4 million this quarter, mainly resulting from reductions in our inventory levels. On a year to date basis the Company has generated free cash flow of $7.0 million. Year over year the Company has improved free cash flow by over $10.0 million and has nearly $10.0 million in cash available through its revolver and cash on hand.”
For the three months ended December 31, 2002:
· | Earnings per diluted share were $0.03 compared to pro forma $0.08 for the same period last year. |
· | Revenues were $20.3 million. |
· | Gross margins were 50%. |
· | Operating expenses were $9.6 million as compared to pro forma operating expenses of $9.3 million in the year ago period excluding restructuring charges. |
· | Operating income was $0.5 million as compared to pro forma $1.0 million in the year ago period. |
For the nine months ended December 31, 2002:
· | Earnings per diluted share were $0.20 as compared to a pro forma $0.09 for the same period last year. |
· | Revenues were $62.7 million. |
· | Gross margins were 51%. |
· | Operating expenses were $29.0 million as compared to pro forma operating expenses of $31.3 million in the year ago period after excluding one-time and restructuring charges. |
· | Operating income was $2.7 million as compared to pro forma $1.6 million in the year ago period. |
In conjunction with the Third Quarter earnings release, the Company invites you to listen to its conference call via its webcast over the Internet at 11:00 a.m. Eastern Time, January 23. The webcast may be accessed athttp://www.firstcallevents.com/service/ajwz371768731gf12.html. The call is open to the
general public and is also available by dialing 800.903.0247. Please use conference call identification number “AMX” to access the live call. A replay of the conference call will also be available one to two hours after the end of the call. To access the replay, please dial 800-945-0830 and enter the passcode “AMX.” In addition, the call will be archived on the Company’s website at www.amx.com.
AMX CORPORATION is a worldwide leader in advanced control system technology targeting commercial and residential markets. AMX delivers convenient, easy-to-use solutions that incorporate advanced programming and network applications to simplify your life through technology. AMX’s strategy is to work with leading dealers and distributors to integrate its products with other electronic devices, while continuing to lead the industry in control technology. It’s your world. Take control.™ For more information about AMX, visit www.amx.com.
Statements made in this press release that state the Company’s or management’s intentions, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company’s actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include, our strategic alliances; the ability to develop distribution channels for new products; our dependence on suppliers, dealers and distributors; reliance on the functionality of systems or equipment, whether our own systems and equipment or those of our customers, dealers, distributors, or manufacturers; domestic and international economic conditions; the financial condition of our key customers and suppliers; the complexity of new products; ongoing research and development; our reliance on third party manufacturers; the ability to realize operating efficiencies; dependence on key personnel; the lack of an industry standard; reliance on others for technology; our ability to protect our intellectual property; the quick product life cycle; the resources necessary to compete; the possible effect of government regulations; possible liability for copyright violations on the Internet with the use of our products and other risks referenced from time to time in the Company’s filings with the Securities and Exchange Commission. The forward-looking statements contained herein are necessarily dependent upon assumptions, estimates and data that may be incorrect or imprecise. Accordingly, any forward-looking statements included herein do not purport to be predictions of future events or circumstances and may not be realized. Forward-looking statements contained herein include, but are not limited to, forecasts, projections and statements relating to product development and acceptance, inflation, future acquisitions and anticipated capital expenditures. All forecasts and projections in the report are based on management’s current expectations of the Company’s near term results, based on current information available pertaining to the Company, including the aforementioned risk factors. Actual results could differ materially.
All trademarks and registered marks are the property of their respective holders.
AMX CORPORATION
Consolidated Balance Sheets
(Dollars in thousands)
December 31, 2002 | March 31, 2002 | |||||||
ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 3,944 | $ | 1,245 | ||||
| Receivables, net | 9,641 | 13,579 | ||||||
| Inventories | 9,750 | 11,700 | ||||||
| Prepaid expenses and other | 1,679 | 2,842 | ||||||
| Total current assets | 25,014 | 29,366 | ||||||
| Property and equipment, at cost, net | 7,406 | 8,265 | ||||||
| Other assets | 436 | 383 | ||||||
| Total assets | $ | 32,856 | $ | 38,014 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,103 | $ | 7,295 | ||||
| Current portion of long-term debt | 1,021 | 1,021 | ||||||
| Line of credit | 4,000 | 7,600 | ||||||
| Other accrued expenses | 5,419 | 5,296 | ||||||
| Total current liabilities | 14,543 | 21,212 | ||||||
| Long-term liabilities | 255 | 1,013 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock | 116 | 116 | ||||||
| Additional paid-in capital | 24,333 | 24,258 | ||||||
| Retained deficit | (1,923 | ) | (4,117 | ) | ||||
| Less treasury stock | (4,468 | ) | (4,468 | ) | ||||
| Total shareholders’ equity | 18,058 | 15,789 | ||||||
| Total liabilities and shareholders’ equity | $ | 32,856 | $ | 38,014 | ||||
AMX CORPORATION
Consolidated Statements of Operations
(In thousands, except for share and per share amounts)
Three Months Ended | Nine Months Ended | |||||||||||||
December 31 (Unaudited) | December 31 (Unaudited) | |||||||||||||
2002 | 2001 | 2002 | 2001 | |||||||||||
| Commercial sales | $ | 17,472 | $ | 17,800 | $ | 55,067 | $ | 55,190 | ||||||
| Residential sales | 2,796 | 3,485 | 7,623 | 10,825 | ||||||||||
| Net sales | 20,268 | 21,285 | 62,690 | 66,015 | ||||||||||
| Cost of sales | 10,153 | 10,965 | 30,952 | 35,437 | ||||||||||
| Gross profit | 10,115 | 10,320 | 31,738 | 30,578 | ||||||||||
| Selling and marketing expenses | 5,180 | 6,065 | 15,950 | 21,425 | ||||||||||
| Research and development expenses | 2,461 | 1,459 | 6,852 | 5,293 | ||||||||||
| Restructuring costs | — | 546 | — | 456 | ||||||||||
| General and administrative expenses | 1,988 | 1,806 | 6,196 | 6,049 | ||||||||||
| Total operating expenses | 9,629 | 9,876 | 28,998 | 33,223 | ||||||||||
| Operating income (loss) | 486 | 444 | 2,740 | (2,645 | ) | |||||||||
| Interest expense | 89 | 154 | 332 | 564 | ||||||||||
| Other income, net | 5 | (4 | ) | 14 | (91 | ) | ||||||||
| Income (loss) before income taxes | 402 | 286 | 2,422 | (3,300 | ) | |||||||||
| Income tax expense (benefit) | 16 | (13 | ) | 228 | 4,333 | |||||||||
| Net income (loss) | $ | 386 | $ | 299 | $ | 2,194 | $ | (7,633 | ) | |||||
| Basic income (loss) per share | $ | 0.03 | $ | 0.03 | $ | 0.20 | $ | (0.70 | ) | |||||
| Diluted income (loss) per share | $ | 0.03 | $ | 0.03 | $ | 0.20 | $ | (0.70 | ) | |||||
| Shares outstanding—basic | 11,141,213 | 11,049,067 | 11,120,335 | 10,982,601 | ||||||||||
| Shares outstanding—diluted | 11,194,917 | 11,055,968 | 11,133,528 | 10,982,601 | ||||||||||
AMX CORPORATION
Non-GAAP Consolidated Statements of Operations
Excluding One-Time & Restructuring Charges
(In thousands, except for share and per share amounts)
Three Months Ended | Nine Months Ended | ||||||||||||
December 31 (Unaudited) | December 31 (Unaudited) | ||||||||||||
2002 | 2001 (a) | 2002 | 2001 (a) (b) | ||||||||||
| Commercial sales | $ | 17,472 | $ | 17,800 | $ | 55,067 | $ | 55,190 | |||||
| Residential sales | 2,796 | 3,485 | 7,623 | 10,825 | |||||||||
| Net sales | 20,268 | 21,285 | 62,690 | 66,015 | |||||||||
| Cost of sales | 10,153 | 10,965 | 30,952 | 33,060 | |||||||||
| Gross profit | 10,115 | 10,320 | 31,738 | 32,955 | |||||||||
| Selling and marketing expenses | 5,180 | 6,065 | 15,950 | 20,555 | |||||||||
| Research and development expenses | 2,461 | 1,459 | 6,852 | 5,292 | |||||||||
| General and administrative expenses | 1,988 | 1,806 | 6,196 | 5,458 | |||||||||
| Total operating expenses | 9,629 | 9,330 | 28,998 | 31,305 | |||||||||
| Operating income | 486 | 990 | 2,740 | 1,650 | |||||||||
| Interest expense | 89 | 154 | 332 | 564 | |||||||||
| Other income, net | 5 | (4 | ) | 14 | 42 | ||||||||
| Income before income taxes | 402 | 832 | 2,422 | 1,128 | |||||||||
| Income tax expense (benefit) | 16 | (13 | ) | 228 | 122 | ||||||||
| Net income | $ | 386 | $ | 845 | $ | 2,194 | $ | 1,006 | |||||
| Basic income per share | $ | 0.03 | $ | 0.08 | $ | 0.20 | $ | 0.09 | |||||
| Diluted income per share | $ | 0.03 | $ | 0.08 | $ | 0.20 | $ | 0.09 | |||||
| Shares outstanding—basic | 11,141,213 | 11,049,067 | 11,120,335 | 10,982,601 | |||||||||
| Shares outstanding—diluted | 11,194,917 | 11,055,968 | 11,133,528 | 10,982,601 | |||||||||
(a) The non-GAAP results for the three and nine months ended December 31, 2001 exclude restructuring charges of $0.5 million in both periods.
(b) The non-GAAP results for the nine months ended December 31, 2001 excludes $8.2 million of one-time charges, which include inventory related reserves of $3.2 million; additional accounts receivable reserves of $0.5 million; the write-off of miscellaneous intangibles of $0.3 million; and a valuation allowance against deferred tax assets of $4.2 million. These charges were recorded in the following financial statement line items: Cost of sales, $2.4 million; Selling and marketing expenses, $0.9 million; General and administrative expenses, $0.6 million; Other income, net, $0.1 million; and Income tax expense (benefit), $4.2 million.