EXHIBIT 99.1
[ALLEN TELECOM LOGO]
FOR IMMEDIATE RELEASE
ALLEN TELECOM ANNOUNCES FOURTH QUARTER
AND FULL YEAR 2001 SALES AND EARNINGS RESULTS
BEACHWOOD, OHIO, February 13, 2002 - Allen Telecom Inc. (NYSE: ALN)
today reported its financial results for the fourth quarter ended December 31,
2001 and full year results for 2001. Sales for the fourth quarter 2001 were
$89.6 million, a decline of 16.1% compared to $106.9 million in the fourth
quarter of 2000 and down 1.8% sequentially when compared to third quarter 2001
sales of $91.3 million. Earnings per common share from continuing operations in
the fourth quarter of 2001 were a loss of $.07 per common share, excluding an
unusual, one-time restructuring charge of $.05 per common share, compared to
$.13 per common share from continuing operations in the fourth quarter of 2000.
Reported earnings per share were a loss of $.12 in the fourth quarter of 2001,
including the unusual, one-time restructuring charge, as compared to reported
earnings per share of $.13 in the fourth quarter of 2000. All per share amounts
refer to both basic and fully diluted earnings per common share.
Reported sales for the full year 2001 improved slightly to $394.6
million when compared to full year 2000 sales of $392.6 million. Earnings per
share from continuing operations for the year 2001 were a loss of $.01 per
common share, excluding the unusual, one-time restructuring charge of $.05 per
share, as compared to earnings from continuing operations of $.38 per common
share for the full year 2000. Reported earnings per share for the year 2001,
including the unusual, one-time restructuring charge of $.05 per share, were a
loss of $.06 per share as compared to reported earnings per share for the year
2000 of $.43, which include a one-time gain from discontinued operations of $.05
per common share related to the sale of the Company's automotive emissions
testing business which was sold in the first quarter of 1999.
The acquisition of certain assets and liabilities of Bartley R. F.
Systems, headquartered in Amesbury, MA, was completed late in December, 2001.
Bartley designs and manufactures base station subsystems and components and will
service its customers in the future under the FOREM brand name. The unusual,
one-time charge of $2.3 million or $.05 per common share in the fourth quarter
of 2001 related to the closing and consolidation of the Company's manufacturing
plant in Sparks, NV into the Bartley manufacturing plant in
Amesbury, MA. The total cost associated with the Bartley acquisition includes
the issuance of 2,271,391 common shares of Allen Telecom stock, a cash payment
of $0.4 million and assumed debt of $4.1 million. Bartley's sales for the full
year 2001 were approximately $41.0 million.
Bartley R. F. Systems sales and earnings have not been included in Allen
Telecom's profit and loss statements for the year 2001. They will be included in
the Company's profit and loss statements beginning January 1, 2002. All of
Bartley's balance sheet items, however, have been incorporated into the
Company's consolidated balance sheet as of December 31, 2001.
Sales of Geolocation Products, Allen Telecom's newest product line, were
$5.5 million in the fourth quarter of 2001 as compared to third quarter sales of
$2.4 million, which was the first quarter the Geolocation product line recorded
shipments. On January 16, 2002 Allen Telecom announced that AT&T Wireless signed
an agreement to purchase Geometrix(R) wireless caller location systems for
installation in selected AT&T Wireless markets.
Allen Telecom's balance sheet improved in the fourth quarter of 2001, as
compared to the third quarter of 2001. Outstanding debt was reduced by $7.6
million to $152.8 million at December 31, 2001, even after the $4.5 million
assumption of debt and cash payment related to the Bartley acquisition, as
compared to outstanding debt of $160.4 million at September 30, 2001. In
addition, the Company's cash balance increased by $9.9 million. These
improvements were obtained through the implementation of cost controls and
investment restrictions at all operating divisions. Inventories were reduced by
$18.8 million during the fourth quarter of 2001 as compared to the third quarter
ended September 30, 2001. Receivables were reduced by $8.4 million in the fourth
quarter of 2001 as compared to the third quarter ended September 30, 2001. These
changes in inventories and receivables exclude the impact of the acquisition of
Bartley's assets at year-end 2001.
The Company's order backlog increased 38% from $89.5 million at
September 30, 2001 to $123.4 million at December 31, 2001 and increased 11% from
December 31, 2000. The increase in backlog as of December 31, 2001 is
attributable to the inclusion of Bartley's $8.1 million backlog and to the
increase in the Company's geolocation backlog which ended December 31, 2001 at
$48.7 million versus $1.0 million at the end of September 30, 2001, partially
offset by reductions in backlog for most of its other product lines.
Allen Telecom Inc. (http://www.allentele.com) is a leading supplier of
wireless equipment to the global telecommunications infrastructure market. FOREM
supplies sophisticated filters, duplexers, combiners, amplifiers and microwave
radios to an array of OEM customers. MIKOM focuses on providing repeaters,
in-building systems and other products that enhance both the coverage and the
capacity of a wireless system. Tekmar Sistemi provides
integrated low power fiber optic and cable distributed antenna systems for
indoor coverage systems. Decibel Products and Antenna Specialists manufacture
land based and mobile antennas in frequency bands that cover all of the
traditional wireless networks. Grayson Wireless supplies measurement and signal
processing systems for testing the performance of a wireless network,
network-based wireless caller geolocation systems for E 911 and value added
services. Comsearch offers program management, network planning, engineering,
development and installation of wireless networks worldwide.
Statements included in this press release, which are not historical in
nature, are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements regarding the Company's future performance and
financial results are subject to a number of risks and uncertainties that could
cause actual results to differ materially from those set forth in the
forward-looking statements. Factors that could cause the Company's actual
results to materially differ from forward-looking statements made by the
Company, include, among others, the cost, success and timetable for new product
development; the cost and timing of the integration of Bartley and the
consolidation of the Company's Nevada facility into Bartley's Massachusetts
facility; the cost and outcome of pending litigation filed by a competitor in
the E 911 geolocation business claiming infringement by the Company of
intellectual property rights; the health and economic stability of the world and
national markets; the cost and availability of capital and financing to the
Company and its customers; the effective realization of inventory and other
working capital assets to cash; the impact of competitive products and pricing
in the Company's markets; the ability of the Company to generate future U.S.
income needed to utilize the Company's tax loss carry forwards; and, the impact
of U.S. and foreign government legislative/regulatory actions. Allen Telecom
Inc.'s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q contain
additional details concerning these factors.
For further information contact: Dianne B. McCormick
Director, Investor Relations
(216) 765-5855 (phone)
(216) 765-0375 (fax)
Dianne_McCormick@allentele.com
ALLEN TELECOM INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
------------------------ ------------------------
2001 2000 2001 2000
---- ---- ---- ----
(Unaudited)
SALES $ 89,645 $106,884 $ 394,601 $392,608
Cost of sales (Note 1) (69,843) (76,838) (296,342) (277,666)
--------- --------- --------- ---------
Gross profit 19,802 30,046 98,259 114,942
Operating expenses:
Selling, general and
administrative expenses (Note 1) (14,559) (13,418) (56,776) (54,271)
Research and development and product
engineering costs (6,108) (5,951) (26,086) (25,442)
Amortization of goodwill (1,966) (1,981) (7,901) (7,822)
--------- --------- --------- ---------
Operating (loss) income (2,831) 8,696 7,496 27,407
Interest expense (3,073) (3,027) (11,281) (11,022)
Interest income 306 532 1,034 1,989
--------- --------- --------- ---------
(Loss) income before taxes and minority
interest (5,598) 6,201 (2,751) 18,374
Benefit (provision) for income taxes 2,183 (2,539) 1,073 (7,530)
--------- --------- --------- ---------
(Loss) income before minority interest (3,415) 3,662 (1,678) 10,844
Minority interest (29) (6) (145) (91)
--------- --------- --------- ---------
(LOSS) INCOME FROM CONTINUING OPERATIONS (3,444) 3,656 (1,823) 10,753
Discontinued emissions testing operations -
gain on sale (Note 2) -- -- -- 1,300
--------- --------- --------- ---------
NET (LOSS) INCOME $ (3,444) $3,656 $ (1,823) $12,053
========= ========= ========= =========
EARNINGS (LOSS) PER COMMON SHARE,
basic and diluted:
Continuing operations $(.12) $.13 $(.06) $.38
Discontinued operations - gain on sale -- -- -- .05
--------- --------- --------- ---------
Net (loss) income $(.12) $.13 $(.06) $.43
========= ========= ========= =========
Weighted average common shares outstanding:
Basic 28,450 27,870 28,090 27,820
--------- --------- --------- ---------
Diluted 28,450 28,390 28,090 28,270
--------- --------- --------- ---------
Note 1: In the fourth quarter 2001, the Company recognized a restructuring
charge of approximately $2.3 million, or $.05 per basic and diluted
share after related income tax effect, with respect to the closing and
consolidation of the Company's U.S. base station subsystem and
components parts manufacturing facility in Nevada into the newly
acquired Bartley manufacturing facility in Massachusetts. Of the cost,
approximately $1.0 million is in cost of sales and $1.3 million in
selling, general and administrative expenses.
Note 2: The gain on sale from discontinued operations in 2000 represents
income from previously contingent purchase price earned on the sale of
the Company's former automotive emissions testing business sold in the
first quarter of 1999. This gain is net of related income taxes in the
amount of $.7 million.
Note 3: Segment information for the Company is as follows (amounts in
thousands):
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------------------------------------------------------------------------------------
2001 2000 2001 2000
------------------------------------------------------------------------------------------------
Sales to external customers:
Wireless communications equipment:
Base station subsystems and components $ 30,799 $ 52,998 $182,964 $190,934
Repeater and in-building coverage
products 27,773 20,451 94,523 78,751
Base station and mobile antennas 21,413 27,724 88,218 97,820
Geolocation products 5,491 - 7,846 -
-------------------------------------------------
Total wireless communications
equipment 85,476 101,173 373,551 367,505
Wireless engineering and consulting
services 4,169 5,711 21,050 25,103
------------------------------------------------------------------------------------------------
Total sales $ 89,645 $106,884 $394,601 $392,608
------------------------------------------------------------------------------------------------
Results of operations:
Wireless communications equipment $ 928 $ 12,081 $ 21,159 $ 38,226
Wireless engineering and consulting
services (190) 524 1,025 4,426
-------------------------------------------------
738 12,605 22,184 42,652
Goodwill amortization (1,966) (1,981) (7,901) (7,822)
General corporate expenses (1,603) (1,928) (6,787) (7,423)
------------------------------------------------------------------------------------------------
Operating (loss) income $ (2,831) $ 8,696 $ 7,496 $ 27,407
------------------------------------------------------------------------------------------------
ALLEN TELECOM INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
2001 2000
--------- ---------
ASSETS
Cash and equivalents $ 16,368 $ 10,539
Receivables 92,291 93,815
Inventories 124,026 101,640
Other current assets 25,245 11,131
--------- ---------
Total current assets 257,930 217,125
Fixed assets 41,290 41,279
Goodwill and other assets 212,736 214,618
--------- ---------
TOTAL ASSETS $511,956 $473,022
======== ========
LIABILITIES
Notes payable and current maturities of long-term
obligations $ 12,318 $ 3,796
Accounts payable 40,355 45,181
Accrued expenses 27,827 26,305
Income taxes 14,633 9,212
--------- --------
Total current liabilities 95,133 84,494
Long-term debt 140,530 134,639
Other liabilities 17,936 18,908
--------- ---------
TOTAL LIABILITIES 253,599 238,041
STOCKHOLDERS' EQUITY 258,357 234,981
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $511,956 $473,022
========= =========