Exhibit 99.1
HALIFAX PROVIDES UPDATED BALANCE SHEET
ALEXANDRIA, VA - February 22, 2005 - Halifax Corporation (AMEX: HX)
today announced that the balance sheet as of December 31, 2004, has
been reclassified. An updated balance sheet has been provided to
replace the version issued on February 10, 2005. The only change is
that bank debt has been reclassified from long term to current. This
has no effect on any other aspects of the balance sheet, nor any impact
on interest expense on the income statement for the period.
The updated balance sheet was provided in the Form 10Q Report for the
quarter ended December 31, 2004, and filed earlier today.
Founded in 1967, Halifax Corporation is an enterprise maintenance
solutions company providing a wide range of technology services to
commercial and government customers throughout the United States. The
Company's principal products are high availability hardware maintenance
services, technology deployment and integration services, and secure
network program services. More information regarding Halifax can be
found at www.hxcorp.com. The information on the website listed above
is not and should not be considered part of this document. This
website is intended to be an inactive textual reference.
Certain statements made by the Company which are not historical facts
may be considered forward-looking statements, including, without
limitation, statements as to trends, management's beliefs, views,
expectations and opinions, which are based upon a number of assumptions
concerning future conditions that ultimately may prove to be
inaccurate. Such forward-looking statements are subject to risks and
uncertainties and may be affected by various factors that may cause
actual results to differ materially from those in the forward-looking
statements. For further information that could affect the Company's
financial statements, please refer to the Company's reports filed with
the Securities and Exchange Commission.
Halifax Corporation
Summary Financial Data
(in 000's except per share Three Months Ended Nine Months Ended
amounts) December 31, December 31,
Statements of Operations 2004 2003 2004 2003
Revenues $ 15,605 $ 13,380 $ 43,847 $ 36,517
Cost of services 15,641 11,802 40,547 32,122
Selling, Marketing, General & 1,383 1,226 4,038 3,531
Administrative
Abandonment of facility - - 179 -
Operating (loss) income (1,419) 352 (917) 864
Interest expense (163) (130) (462) (419)
(loss) Income before income taxes (1,582) 222 (1,379) 445
Income tax expense (benefit) (547) 20 (479) 40
Net (loss) income $(1,035) $ 202 $ (900) $ 405
Earnings (loss) per common share - $ (.33) $ .07 $ (.30) $ .16
basic:
Earnings (loss) per common share - $ (.33) $ .07 $ (.30) $ .16
diluted:
Weighted average number of
common shares outstanding:
Basic 3,167 2,910 2,982 2,548
Diluted 3,238 2,992 3,032 2,598
Balance Sheets December 31, 2004 March 31, 2004
Current assets
Cash $ 100 $ 430
Trade accounts receivable, net 11,747 9,364
Inventory, net 5,872 5,845
Prepaid expense and other current assets 834 599
Deferred tax asset 1,148 1,204
Total current assets 19,701 17,442
Property and equipment, net 1,624 1,598
Goodwill and intangibles, net 7,235 4,606
Other assets 144 149
Deferred tax asset 3,231 2,696
Total assets $ 31,935 $ 26,491
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 8,137 $ 6,723
Bank debt 9,698 -
Deferred maintenance revenue 3,796 2,543
Current portion of long-term debt 517 523
Total current liabilities 22,148 9,789
Long-Term bank debt - 7,227
Othe long-term debt 172 19
Subordinated debt-affiliate 2,400 2,400
Deferred income 293 337
Total liabilities 25,013 19,772
Stockholders' equity 6,922 6,719
Total liabilities and stockholders' $ 31,935 $ 26,491
equity