FOR IMMEDIATE RELEASE
CONTACTS: Corporate Contact: Investor Relations
John Carlson Harriet Fried
Exec VP & CFO Lippert/Heilshorn & Associates
480-505-4869 212-838-3777
Alanco Announces Third Quarter
Fiscal 2009 Results
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Sales Up 42% - Operating Loss Halved
Reaffirms Fourth Quarter Turnaround
(Scottsdale, AZ - May 18, 2009) - Alanco Technologies, Inc., (NASDAQ: ALAN),
a leading provider of wireless tracking and asset management solutions, today
announced that sales for its third fiscal quarter ended March 31, 2009 increased
42% to $4,609,700, compared to sales of $3,247,700 for the same quarter of
fiscal year 2008.
The Company's RFID Technology segment (Alanco/TSI PRISM) reported sales of
$851,700, an increase of $616,600, or 262%, over last year's third quarter
sales of $235,100. The Wireless Asset Management segment (StarTrak Systems)
reported sales of $3,758,000, an increase of $745,400, or 25%, compared to the
prior year third quarter sales of $3,012,600.
The Company's operating loss for the third quarter of 2009 narrowed 47% to
$724,000, compared to a loss of $1,368,800 for the prior year period. The net
loss for the quarter ended March 31, 2009 improved to $1,134,900, compared to
the net loss of $2,200,000 for the comparable quarter of the prior year.
Robert R. Kauffman, Alanco Chairman and CEO, commented, "Both TSI PRISM and
StarTrak Systems contributed to our significantly improved third quarter results
through strong sales performance and improved gross margins. We are projecting
continued sales gains and operating improvements in both businesses, which we
expect to result in a turnaround and positive fourth quarter EBITDA for the
Company."
"Looking ahead to fiscal year 2010, beginning July 1, we believe we can build
on our current market successes, achieved in obviously difficult circumstances,
and realize significantly increased sales and solid profitability in the coming
fiscal year."
Comparisons of operating results for the three- and nine-month periods ended
March 31, 2009 and March 31, 2008 are presented below as Schedule I & II. For
additional discussion of the Company's current financial results, please see
the Form 10-Q the Company filed with the Securities and Exchange Commission.
Alanco Technologies, Inc. provides wireless tracking and asset management
solutions through its StarTrak Systems and Alanco/TSI PRISM subsidiaries.
StarTrak Systems is the dominant provider of tracking, monitoring and control
services to the refrigerated or "Reefer" segment of the transportation
marketplace, enabling customers to increase efficiency and reduce costs of the
refrigerated supply chain. Alanco/TSI PRISM is the leading provider of RFID
real-time tracking technologies for the corrections industry. Its systems
track and record the location and movement of inmates and officers, enhancing
safety, security and productivity. For more information, visit the company's
website at www.alanco.com.
EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS
RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH
FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES INCLUDE,
BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR INFORMATION TECHNOLOGY EQUIPMENT;
COMPETITIVE PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW
TECHNOLOGIES THAT MAKE THE COMPANY'S PRODUCTS OBSOLETE; RAPID INDUSTRY CHANGES;
FAILURE OF AN ACQUIRED BUSINESS TO FURTHER THE COMPANY'S STRATEGIES; THE ABILITY
TO MAINTAIN SATISFACTORY RELATIONSHIPS WITH LENDERS AND REMAIN IN COMPLIANCE
WITH FINANCIAL LOAN COVENANTS AND OTHER REQUIREMENTS UNDER CURRENT BANKING
AGREEMENTS; AND THE ABILITY TO SECURE AND MAINTAIN KEY CONTRACTS AND
RELATIONSHIPS.
SCHEDULE I
Alanco Technologies, Inc.
Condensed Consolidated Financial Information
Three months ended March 31,
2009 2008
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NET SALES $ 4,609,700 $ 3,247,700
Cost of Sales 3,053,600 2,237,900
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Gross Profit 1,556,100 1,009,800
Selling, General & Administrative Expense 2,280,100 2,378,600
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Operating Loss (724,000) (1,368,800)
Interest Expense, net (190,700) (166,300)
Other Income(expense), net (500) 21,600
Loss on discontinued operations (92,500) (44,400)
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Net Loss (1,007,700) (1,557,900)
Preferred Stock Dividends (127,200) (642,100)
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Net Loss Attributable to Common Stock Holders $ (1,134,900) $ (2,200,000)
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Net Loss Per Common Share - Basic and Diluted $ (0.04) $ (0.09)
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 31,932,200 23,453,000
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SCHEDULE II
Alanco Technologies, Inc.
Condensed Consolidated Financial Information
Nine months ended March 31,
2009 2008
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NET SALES $ 14,670,000 $ 9,507,900
Cost of Sales 10,676,600 6,309,100
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Gross Profit 3,993,400 3,198,800
Selling, General & Administrative Expense 6,345,400 7,429,400
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Operating Loss (2,352,000) (4,230,600)
Interest Expense, net (702,800) (564,600)
Other Income(expense), net (185,300) 59,300
Loss on discontinued operations (250,000) (311,000)
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Net Loss (3,490,100) (5,046,900)
Preferred Stock Dividends (347,300) (1,020,200)
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Net Loss Attributable to Common Stock Holders $ (3,837,400) $ (6,067,100)
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Net Loss Per Common Share - Basic and Diluted $ (0.12) $ (0.27)
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 31,669,000 22,749,800
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