Contact:
Patty Kehe
Dynasil Corporation of
America
Phone: (607) 272-3320,
ext. 26
Email: pkehe@dynasilcorp.com
Dynasil Reports Record Third Quarter Results
All-Time Record Revenue
Net Income From Operations Increases 92%
WEST BERLIN, N.J. - August 16, 2010 - Dynasil Corporation of America
(OTCBB: DYSL) today announced record financial results for its 2010
third quarter, which ended June 30, 2010. The Company posted record
revenue for the 2010 third quarter of $11.3 million which compares to
$8.5 million in the third-quarter of 2009, a 33% increase year over
year. Operating income, net income and diluted earnings per share
for the quarter were $1.33 million, $727,646, and $0.05, increases of
92%, 85%, and 120%, respectively, compared with the prior year.
"Dynasil has completed another outstanding quarter with record
revenue, earnings and financial results. We are pleased with our
strong Q3 results which clearly reflect the strength of our
diversified product portfolio, bolstered by innovation,
commercialization initiatives and operational excellence." said Craig
T. Dunham, CEO at Dynasil. "We are also very excited about our
portfolio of products and technologies for the coming year and we
continue to see exceptional opportunity for continued strong growth
and profitability across all our businesses. In addition, the
refinancing of all our debt with Sovereign/Santander Bank provides
Dynasil maximum financial flexibility to achieve our expansion goals
through both organic and acquisition growth which should further
accelerate our progress."
"The future looks really bright for Dynasil. Our activities in
homeland defense, medical imaging, and material science enable us to
serve and partner with our government and major corporations," added
Peter Sulick, Chairman, Dynasil Board of Directors. "Our growth
strategy to acquire companies with strengths in complementary areas
will enable us to more quickly commercialize our new technology while
expanding the scale and scope of our product line and distribution
channels. Exemplifying this is our recently announced acquisition of
Hilger Crystals, a highly specialized expert in the manufacturer of
synthetic crystals applicable to a wide range of our industrial,
medical and homeland security applications with immediate importance
to our nuclear detector business.
About Dynasil: Dynasil Corporation of America (OTCBB: DYSL), is a
provider of technology, products, services and solutions aimed at
making the world safer and healthier. The company supplies a broad
range of customers by serving their specific needs in the medical,
industrial, and homeland security/defense markets. The Company has
operations in New Jersey, New York, Massachusetts and the UK.
This news release may contain forward-looking statements usually
containing the words "believe," "expect," "plan", "target", "intend"
or similar expressions. These statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act. Future results of operations, projections, and expectations,
which may relate to this release, involve certain risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. Factors that would cause or
contribute to such differences include, but are not limited to, the
factors detailed in the Company's Annual Report or Form 10-K,
Quarterly Reports on Form 10-Q, as well as in the Company's other
Securities and Exchange Commission filings, continuation of existing
market conditions and demand for our products.
Dynasil Corporation of America and
Subsidiaries
Consolidated Balance Sheets
March 31 September
30
2010 2009
ASSETS
(Unaudited)
----------- -----------
Current assets
Cash and cash equivalents $4,002,366 $3,104,778
Accounts receivable, net 4,690,587 4,053,742
Inventories 2,183,367 2,371,516
Deferred tax asset 346,500 290,100
Other current assets 425,595 306,848
----------- -----------
Total current assets 11,648,415 10,126,984
Property, plant and equipment, net 2,641,397 2,744,724
Other Assets
Intangibles, net 6,820,353 7,232,035
Goodwill 11,054,396 11,054,396
Deferred financing costs, net 53,499 64,637
----------- -----------
Total other assets 17,928,248 18,351,068
----------- -----------
Total Assets $32,218,060 $31,222,776
=========== ===========
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities
Current portion of long-term 1,847,785 1,749,524
debt
Note payable to related party 2,000,000 -0-
Accounts payable 869,826 773,837
Billings in excess of cost -0- 60,448
Income taxes payable 345,828 507,122
Dividends payable 131,400 149,150
Accrued expenses and other 1,809,680 1,111,342
current liabilities
----------- -----------
Total current liabilities 7,004,519 4,351,423
Long-term Liabilities
Long-term debt, net 4,685,547 6,386,796
Note payable to related party -0- 2,000,000
----------- -----------
Total long-term liabilities 4,685,547 8,386,796
2,000,000 2,000,000
Temporary Equity
18,524,994 16,484,557
Stockholders' Equity
----------- -----------
Total Liabilities and Stockholders' $32,218,060 $31,222,776
Equity =========== ===========
DYNASIL CORPORATION OF AMERICA
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
June 30 June 30
2010 2009 2010 2009
----------- ---------- ----------- -----------
Net revenues $11,294,868 8,512,892 $31,494,960 $25,883,053
Cost of revenues 6,562,323 4,860,590 18,669,123 15,643,287
----------- ---------- ----------- -----------
Gross profit 4,732,545 3,652,302 12,825,837 10,239,766
Selling, general and
administrative
expenses 3,399,584 2,957,111 9,311,918 8,131,946
----------- ---------- ----------- -----------
Income from operations 1,332,961 695,191 3,513,919 2,107,820
Interest expense, net 142,578 160,367 457,007 567,025
----------- ---------- ----------- -----------
Income before income 1,190,383 534,824 3,056,912 1,540,795
taxes
Income taxes 462,737 141,456 1,082,199 387,654
----------- ---------- ----------- -----------
Net income $727,646 $393,368 $1,974,713 $1,153,141
=========== ========== =========== ===========
Earnings Per Share
Three Months Ended Nine Months Ended
June 30 June 30
Net income $727,646 $393,368 $1,974,713 $1,153,141
Dividends on preferred 131,400 149,150 406,033 447,450
stock
----------- ---------- ----------- -----------
Net income applicable to
common shareholders 596,246 244,218 1,568,680 705,691
Dividend add back due to
assumed
Preferred Stock 131,400 17,750 406,033 53,250
conversion
----------- ---------- ----------- -----------
Net income for diluted
income per common share $727,646 $261,968 $1,974,713 $758,941
=========== ========== =========== ===========
Basic net income per
common share $ 0.05 $0.02 $ 0.13 $ 0.06
Diluted net income per
common share $ 0.05 $0.02 $ 0.13 $ 0.06
Weighted average shares
outstanding
Basic
12,610,116 11,371,933 12,215,532 11,362,745
Diluted 14,982,382 12,346,636 14,687,798 12,337,448