Exhibit 99.1
Ultralife Batteries, Inc. Reports First Quarter Results;
Revenues Grow 75% to $27.0 Million From a Year Ago;
Operating Income Reaches $3.4 Million
NEWARK, N.Y.--(BUSINESS WIRE)--April 29, 2004--Ultralife
Batteries, Inc. (NASDAQ: ULBI) today reported operating income of $3.4
million on record quarterly revenues of $27.0 million for its first
quarter ended March 27, 2004. Net income was $3.2 million, or $0.22
per diluted share. In the same three-month period in 2003, the Company
reported operating income and net income of $0.6 million and $0.3
million, respectively, and $0.02 diluted earnings per share.
Revenues for the first quarter of 2004 increased $11.6 million
from $15.4 million in 2003, a 75% improvement. Continued strength in
military orders for HiRate(R) batteries was the primary factor for
this growth, in addition to an increase in sales of rechargeable
batteries to both commercial and military customers.
Gross margin nearly doubled, rising to $6.3 million, or 23% of
revenues, from $3.2 million last year, or 20% of revenues, as a result
of the higher sales and production volumes and continuing improvements
in manufacturing efficiencies. Operating expenses amounted to $3.0
million for the quarter, or 11% of revenues, reflecting an increase of
$0.4 million over last year due to higher costs necessary to support a
significantly larger and growing business.
John Kavazanjian, president and chief executive officer, said,
"This quarter's performance highlights our continued delivery of high
quality products to the military, success in penetrating markets for
rechargeable batteries, and growing activity to design and provide
power solutions for a variety of commercial applications in our target
markets. With the recent investments we have made in capital equipment
programs that are helping us to eliminate capacity constraints, we are
nearing a point where we will have the added capacity to realize even
better operating efficiencies.
"Looking ahead, we are still excited about growth prospects with
the military market as our favored battery chemistry continues to take
market share," added Mr. Kavazanjian. "We're also experiencing
extremely high levels of interest and growth in commercial markets, as
evidenced by the sizable increase in rechargeable sales this quarter.
We remain focused on targeting markets and applications where our
products add value, and believe that our strategy will allow us to
continue to achieve increasing returns to scale as we grow the
business."
Outlook
For the second quarter ending June 26, 2004, management projects
operating income will reach approximately $3.5 million on revenues of
approximately $28.0 million. This compares to operating income of $1.9
million on revenues of $20.1 million in the comparable quarter in
2003. For the full year, management is adjusting its guidance to
reflect the better than expected first quarter performance while
reaffirming its outlook for the second half of the year. As a result,
management now expects full year operating income of approximately
$12.5 million on total revenues of approximately $106 million. This
compares to the previous guidance for 2004 of $12 million in operating
income on $104 million in sales.
About Ultralife Batteries, Inc.
Ultralife is a leading developer, manufacturer, and marketer of
standard and customized lithium primary (non-rechargeable), lithium
ion and lithium polymer rechargeable batteries. Ultralife's
high-energy batteries use advanced lithium technology and are used in
military, industrial and consumer portable electronic products.
Through its range of standard products and ability to customize for a
wide range of applications, Ultralife is able to provide the next
generation of battery solutions. OEM, retail and government customers
include Energizer, Kidde Safety, Philips Medical Systems, Radio Shack
and the national defense agencies of the United States and United
Kingdom, among others.
Ultralife's headquarters, principal manufacturing and research
facilities are in Newark, New York, near Rochester. Ultralife (UK)
Ltd., a second manufacturing and research facility, is located in
Abingdon, U.K. Both facilities are ISO-9001 certified.
This press release contains forward-looking statements based on
current expectations that involve a number of risks and uncertainties.
The potential risks and uncertainties that could cause actual results
to differ materially include: loss of business with the U.S.
government, worsening global economic conditions, world events,
increased competitive environment and pricing pressures, disruptions
related to restructuring actions and delays. Further information on
these factors and other factors that could affect Ultralife's
financial results is included in Ultralife's Securities and Exchange
Commission (SEC) filings, including the latest Annual Report on Form
10-K.
Detailed information on Ultralife is available at the Company's
web site, www.ultralifebatteries.com.
Conference Call Information
Investors are invited to listen to a live webcast of the
conference call at 10:00 a.m. ET on April 29 at
www.ultralifebatteries.com/invest.asp. To listen to the live call,
please go to the web site at least fifteen minutes early to download
and install any necessary audio software. For those who cannot listen
to the live broadcast, a replay of the webcast will be available
shortly after the call at the same location for 90 days. Investors may
also listen to a telephone replay of the conference call by dialing
800-428-6051, Reservation #346894, starting at 12:00 p.m. ET April 29
until 12:00 p.m. ET May 6.
Ultralife and HiRate are registered trademarks of Ultralife
Batteries, Inc.
ULTRALIFE BATTERIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Amounts)
(unaudited)
- ----------------------------------------------------------------------
Three Month
Period Ended
March March
27, 29,
2004 2003
-------- --------
Revenues:
Battery sales $26,696 $15,012
Technology contracts 292 416
-------- --------
Total revenues 26,988 15,428
Cost of products sold:
Battery costs 20,407 12,055
Technology contracts 249 214
-------- --------
Total cost of products sold 20,656 12,269
-------- --------
Gross margin 6,332 3,159
Operating expenses:
Research and development 503 585
Selling, general, and administrative 2,471 1,962
-------- --------
Total operating expenses 2,974 2,547
-------- --------
Operating income 3,358 612
Other income (expense):
Interest, net (105) (91)
Miscellaneous 61 (210)
-------- --------
Income before income taxes 3,314 311
Income taxes 79 -
-------- --------
Net income $3,235 $311
======== ========
Earnings per share - basic $0.23 $0.02
======== ========
Earnings per share - diluted $0.22 $0.02
======== ========
Average shares outstanding - basic 13,772 12,852
======== ========
Average shares outstanding - diluted 14,890 12,938
======== ========
ULTRALIFE BATTERIES, INC.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Per Share Amounts)
(unaudited)
- ----------------------------------------------------------------------
March December
27, 31,
ASSETS 2004 2003
-------- --------
Current assets:
Cash and investments $1,187 $880
Trade accounts receivable, net 20,487 17,803
Inventories 13,970 10,209
Prepaid expenses and other current assets 3,382 3,664
-------- --------
Total current assets 39,026 32,556
Property and equipment 17,976 18,213
Other assets 1,558 1,583
-------- --------
Total Assets $58,560 $52,352
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt and current portion of long-term
debt $5,940 $8,295
Accounts payable 8,730 6,385
Other current liabilities 3,328 3,174
-------- --------
Total current liabilities 17,998 17,854
Long-term debt and capital lease obligations 68 68
Shareholders' equity:
Common stock, par value $0.10 per share 1,477 1,430
Capital in excess of par value 123,338 120,626
Accumulated other comprehensive loss (653) (723)
Accumulated deficit (81,290) (84,525)
-------- --------
42,872 36,808
Less --Treasury stock, at cost 2,378 2,378
-------- --------
Total shareholders' equity 40,494 34,430
-------- --------
Total Liabilities and Shareholders' Equity $58,560 $52,352
======== ========
CONTACT: Ultralife Batteries, Inc.
Robert W. Fishback, 315-332-7100
bfishback@ulbi.com
or
Lippert/Heilshorn & Associates, Inc.
Investor Relations Contact:
Jody Burfening, 212-838-3777
jburfening@lhai.com
or
Lippert/Heilshorn & Associates, Inc.
Media Contact:
Chenoa Taitt, 212-201-6635
ctaitt@lhai.com