EXHIBIT 99.1
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 First Quarter
Fiscal 2010 Results
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Turnaround Results for StarTrak Operations
(Scottsdale, AZ - November 17, 2009) - Alanco Technologies, Inc.,
(NASDAQ: ALAN), a leading provider of wireless tracking and asset management
solutions, reported results for the quarter ended September 30, 2009. The
results reflect the reclassification of Alanco/TSI PRISM and Excel Meridian Data
operations as "Discontinued Operations" due to the Company's new strategic plan
to divest non core assets and focus on the future growth of the Company's
StarTrak wireless monitoring services business, now reported as the Company's
sole "Continuing Operation."
The Company reported EBITDA, before stock-based compensation and corporate
expense from continuing operations, of $77,100, reflecting an approximate
$800,000 turnaround from the (Loss) EBITDA, before stock-based compensation and
corporate expense of ($718,700) reported in the comparable quarter of the prior
year. Sales for the quarter ended September 30, 2009 were $2,976,900, a decrease
of $335,800, or 10.1% compared to sales of $3,312,700 reported for the first
quarter of fiscal year 2009. The substantial EBITDA improvement resulted from
significant cost reductions and productivity improvements recognized during the
current quarter. See Schedule II below for a reconciliation of EBITDA before
Stock-based compensation and Corporate Expense.
The Company's Loss from Continuing Operations for its first quarter of fiscal
2010 decreased 58%, to ($562,600) compared to a Loss from Continuing Operations
of ($1,328,300) for the comparable quarter of the prior year.
Results from Discontinued Operations for the quarter ended September 30, 2009
were a loss of ($502,800), an increased loss of ($599,400) compared to income
from Discontinued Operations of $96,600 reported for the comparable quarter of
fiscal 2009. The significant increase resulted primarily from reduction in
revenues in the Alanco/TSI PRISM operations due to delays in the previously
announced project to provide RFID inmate tracking systems for nineteen U.S.
Immigration Detention Facilities. This project is expected to resume and
accelerate in the first three months of 2010.
The Company's Net Loss for the quarter ended September 30, 2009 decreased to
($1,065,400), a decline of $166,300, or 13.5% compared to a Net Loss of
($1,231,700) for the comparable quarter of the prior year period. The Net Loss
Attributable to Common Shareholders for the quarter ended September 30, 2009 was
($1,205,900), a decrease of 8.8% compared to a ($1,322,700) loss for the
comparable quarter ended September 30, 2008.
Robert R. Kauffman, Alanco Chairman and CEO, commented, "Although first quarter
sales were slightly less than last year's comparable period, StarTrak's first
quarter operating results reflect a significant turnaround compared to its
performance in the prior year. We anticipate sequential sales growth to resume
in the second quarter, led by the approximately $3 million FFE Transportation
Services contract announced on October 5, 2009. We expect sales for the second
quarter of fiscal 2010, which will end December 31, 2009, to increase to near
$4.0 million, with additional EBITDA improvement when compared to last year's
second quarter."
"Concerning our divestiture program, we are in active discussions with numerous
interested parties and anticipate entering into definitive purchase agreements
relating to both TSI PRISM and Excel Meridian within 90 business days."
Comparisons of operating results for the three-months ended September 30, 2009
and 2008 are presented below as Schedule I. 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 on November 16, 2009.
Alanco Technologies, Inc. provides wireless monitoring and asset management
solutions through its StarTrak Systems subsidiary. 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. 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
(Unaudited)
Three months ended Sepember30,
2009 2008
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NET SALES $ 2,976,900 $ 3,312,700
Cost of Sales 1,587,700 2,508,200
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Gross Profit 1,389,200 804,500
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Operating Expenses
Selling, General & Administrative Expense 1,311,300 1,339,800
Amortization of Stock-Based Compensation 168,800 113,100
Depreciation and Amortization 135,600 115,700
Corporate Expenses 160,800 2,400
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Total Operating Expenses 1,776,500 1,571,000
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Operating Loss (387,300) (766,500)
Interest Expense, net (174,500) (378,400)
Other Income (expense), net (800) (183,400)
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Loss from Continuing Operations (562,600) (1,328,300)
Income (Loss) from Discontinued Operations (502,800) 96,600
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Net Loss (1,065,400) (1,231,700)
Preferred Stock Dividends (140,500) (91,000)
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Net Loss Attributable to Common Shareholders $ (1,205,900) $ (1,322,700)
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SCHEDULE II
Alanco Technologies, Inc.
EBITDA Reconciliation to Net Income (Loss) from Continuing Operations
(Unaudited)
3 months ended 3 months ended
September 30, September 30,
2009 2008
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EBITDA before Stock-based compensation
and Corporate Expense $ 77,100 $ (718,700)
Corporate Expense (160,800) (2,400)
Stock-based compensation (168,800) (113,100)
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EBITDA (252,500) (834,200)
Net interest expense (174,500) (378,400)
Depreciation and amortization (135,600) (115,700)
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NET LOSS FROM CONTINUING OPERATIONS $ (562,600) $ (1,328,300)
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