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Gerber Scientific Announces Fiscal 2008 Third Quarter Results
SOUTH WINDSOR, CT - March 6, 2008 - Gerber Scientific, Inc. (NYSE: GRB),
today reported net income of $3.1 million for the third quarter of fiscal
2008, or $0.13 per diluted share, on revenue of $152.0 million, compared
with net income of $2.2 million, or $0.10 per diluted share, on revenue of
$137.1 million for the third quarter of fiscal 2007. Foreign currency
translation had the effect of increasing revenue by approximately $9.6
million in the third quarter of fiscal 2008 as compared with the third
quarter of fiscal 2007.
For the nine months ended January 31, 2008, the Company
reported net income of $8.4 million, or $0.36 per diluted share, on revenue
of $466.3 million, compared with net income of $7.9 million, or $0.34 per
diluted share, on revenue of $419.7 million for the nine months ended
January 31, 2007. Foreign currency translation had the effect of increasing
revenue by approximately $24.2 million for the nine months ended January 31,
2008, as compared with the nine months ended January 31, 2007.
The Company used $7.5 million in cash flows from
operations, less capital expenditures, for the first nine months of fiscal
2008 as compared with a cash usage of $11.8 million in the prior year
comparable period.
Marc T. Giles, President and Chief Executive Officer,
commented: "We are pleased to report for the third quarter of fiscal 2008
that revenue, operating profit and earnings per share all increased as
compared with the prior year. Revenue growth of $14.8 million, or 10.8
percent, as compared with the prior year, was led by the Sign Making and
Specialty Graphics segment, through the strong performance of the Spandex
business unit, with stronger aftermarket revenue and benefits from favorable
foreign currency translation, and the incremental revenue provided by our
acquisition of Data Technology early this fiscal year. Operating profit
margin of 4.1 percent for the third quarter increased 1.1 percentage points,
primarily as a result of lower selling, general and administrative expenses
during the quarter as a percent of revenue compared with the fiscal quarter
ended January 31, 2007. This improved operating performance resulted in a
year-over-year increase in earnings per share for the third quarter of $0.03
per diluted share, after recording a non-cash pre-tax charge of $0.3
million, or $0.01 per diluted share, related to the write-off of deferred
financing costs associated with the refinancing of the Company's credit
facility."
Giles continued, "With regard to our exciting new product
– the Solara ion™, we continue to expect to ship in volume during the first
quarter of fiscal 2009. Also, pre-order volume has increased by
approximately 45% to 125 orders from the amount reported in November 2007. "
About Gerber Scientific, Inc.
Gerber Scientific, Inc. (http://www.gerberscientific.com) is a leading
international supplier of sophisticated automated manufacturing systems for
the sign making and specialty graphics, apparel and flexible materials,
ophthalmic lens processing, and print and packaging industries.
Headquartered in South Windsor, Connecticut, the Company operates through
four primary business units: Gerber Scientific Products, Spandex, Gerber
Technology and Gerber Coburn.
Cautionary Note Concerning Factors That May Affect Future
Results
This news release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. Statements contained in this news
release regarding the Company’s expected financial condition, results of
operations, cash flows and product launches are forward-looking statements
that involve risks and uncertainties. For information identifying other
important economic, political, regulatory, legal, technological, competitive
and other risks and uncertainties, readers are referred to the Company’s
filings with the Securities and Exchange Commission, including but not
limited to, the information included in Gerber Scientific’s Annual
Report on Form 10-K for the fiscal year ended April 30, 2007 under the
headings "Business," "Risk Factors" and "Management’s Discussion and
Analysis of Financial Condition and Results of Operations – Cautionary Note
Concerning Factors That May Influence Future Results," as well as
information included in subsequently filed quarterly reports on Form 10-Q
and current reports on Form 8-K, which outline certain important risks
regarding the Company’s forward-looking statements. These risks include, but
are not limited to, delays in the Company’s new product development and
commercialization, intense competition in markets for each of the Company’s
operating segments, rapid technological advances, availability and cost of
raw materials, volatility in foreign currency exchange rates and
fluctuations in interest rates. Actual future results or events may differ
materially from those expressed or implied in the Company's forward-looking
statements. The Company expressly disclaims any obligation to update any of
these forward-looking statements.
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GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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|
|
Quarter Ended
January 31, |
Nine Months Ended
January 31, |
|
In thousands, except per share data |
2008 |
2007 |
2008 |
2007 |
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Revenue: |
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|
|
|
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Product sales |
$133,637 |
$120,941 |
$411,022 |
$370,776 |
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Service sales |
18,329 |
16,183 |
55,327 |
48,885 |
|
151,966 |
137,124 |
466,349 |
419,661 |
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Costs and Expenses: |
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|
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Cost of products sold |
95,428 |
86,881 |
294,302 |
264,401 |
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Cost of services sold |
13,085 |
10,242 |
36,737 |
29,922 |
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Selling, general and administrative expenses |
30,691 |
29,863 |
99,972 |
92,216 |
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Research and development |
6,466 |
6,050 |
19,483 |
18,193 |
| |
145,670 |
133,036 |
450,494 |
404,732 |
| |
|
|
|
|
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Operating income |
6,296 |
4,088 |
15,855 |
14,929 |
| |
|
|
|
|
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Other income (expense), net |
(435) |
(145) |
(96) |
(25) |
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Interest expense |
(1,388) |
(965) |
(3,460) |
(2,713) |
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|
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Income before income taxes |
4,473 |
2,978 |
12,299 |
12,191 |
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Income tax expense |
1,410 |
748 |
3,898 |
4,248 |
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Net income |
$ 3,063 |
$ 2,230 |
$ 8,401 |
$ 7,943 |
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Earnings per share of common stock: |
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|
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Basic |
$0.13 |
$0.10 |
$0.36 |
$0.35 |
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Diluted |
$0.13 |
$0.10 |
$0.36 |
$0.34 |
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Weighted average shares outstanding: |
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Basic |
23,374 |
23,012 |
23,296 |
22,828 |
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Diluted |
23,618 |
23,398 |
23,600 |
23,258 |
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GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY BALANCE SHEETS
(Unaudited)
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In thousands
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January 31,
2008 |
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April 30,
2007 |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
$ 12,299 |
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$ 8,052 |
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Accounts receivable, net |
105,605 |
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106,421 |
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Inventories |
77,258 |
|
65,299 |
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Prepaid expenses and other current assets |
15,523 |
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15,106 |
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Total current assets |
210,685 |
|
194,878 |
| |
|
|
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Property, plant and equipment, net |
39,079 |
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36,982 |
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Goodwill |
61,348 |
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54,825 |
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Deferred income taxes |
37,816 |
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34,893 |
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Other assets |
15,788 |
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14,384 |
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Total assets |
$364,716 |
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$335,962 |
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Liabilities and Shareholders’ Equity |
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Current Liabilities: |
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Current portion of long-term debt |
$ --- |
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$ 1,773 |
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Accounts payable |
41,264 |
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48,772 |
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Other accrued liabilities |
59,672 |
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63,208 |
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Total current liabilities |
100,936 |
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113,753 |
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Long-term debt |
52,000 |
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31,603 |
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Other long-term liabilities |
50,886 |
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46,125 |
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Shareholders’ equity |
160,894 |
|
144,481 |
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Total liabilities and shareholders’ equity |
$364,716 |
|
$335,962 |
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