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For Immediate Release |
Contact: John Krawczynski |
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June 28, 2007 |
(860) 644-1551 |
GERBER SCIENTIFIC REPORTS FOURTH QUARTER AND FULL YEAR FISCAL 2007 RESULTS
SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB)
today reported net income for the quarter ended April 30, 2007 of $5.6 million, or $0.24 per diluted share, on revenue of $155.1 million, compared with net income of $3.9 million, or $0.17 per diluted share, on revenue of $143.1 million for the fourth quarter ended April 30, 2006. Results for the fourth quarter of fiscal 2007 included a non-cash, after tax charge for stock option expense of $0.4 million, or $0.02 per diluted share associated with the fiscal 2007 adoption of SFAS 123R, "Share-Based Payment" (SFAS 123R). Included in fourth quarter of fiscal 2006 results was a non-cash, after tax charge of $0.3 million, or $0.02 per diluted share, related to the adoption of FASB Interpretation No. 47, "Accounting for Contingent Asset Retirement Obligations" (FIN 47).For the fiscal year ended April 30, 2007, the Company reported net income of $13.5 million, or $0.58 per diluted share, on revenue of $574.8 million. For the fiscal year ended April 30, 2006, the Company reported net income of $2.6 million, or $0.12 per diluted share, on revenue of $530.4 million. Full year fiscal 2007 net income included stock option expense of $1.0 million, or $0.04 per diluted share associated with the implementation of SFAS 123R. Net income for fiscal 2006 included a $2.5 million pre-tax charge associated with the early extinguishment of the Company’s former credit facility, a $2.3 million tax charge associated with the reversal of a deferred tax asset in the United Kingdom and a $0.3 million charge related to the cumulative effect of adopting FIN 47. These items cumulatively reduced prior year diluted earnings per share by $0.18.
Foreign currency translation had the effect of increasing revenue by approximately $7.3 million and $19.2 million for the fiscal 2007 fourth quarter and full year, respectively, over the fiscal 2006 comparable periods.
Gerber Scientific President and Chief Executive Officer, Marc T. Giles, commented, "Gerber reported solid results for fiscal 2007 with full year consolidated revenue up 8.4 percent as compared with fiscal 2006. Though our top line clearly benefited from favorable foreign currency translation, each operating segment reported strong organic growth. This growth was attributable to our success with new products and improved aftermarket demand, as well as increased volume within our Asian markets. Operating income increased to $23.6 million for fiscal 2007, improving by more than 30 percent from prior year. Both revenue and operating income were at the highest levels since fiscal 2000. Assuming no significant changes in the economic climate, we expect to report continued improvement in fiscal 2008, supported by new products, our Asian market base and initiatives, global expansion efforts and the impact of recent acquisitions."
For additional information, including segment and order information, please see our Annual Report on Form 10-K for the fiscal year ended April 30, 2007, to be filed with the Securities and Exchange Commission.
About Gerber Scientific, Inc.
Gerber Scientific, Inc. (http://www.gerberscientific.com) is a leading international supplier of sophisticated automated manufacturing systems for sign making and specialty graphics, apparel and flexible materials, and ophthalmic lens processing. Headquartered in South Windsor, Connecticut, the Company operates through four businesses: Gerber Scientific Products, Spandex, Gerber Technology, and Gerber Coburn.
Cautionary Note Concerning Factors That May Affect Future Results
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 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, 2006 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. The Company expressly disclaims any obligation to update any of these forward-looking statements, except as required by law. Actual future results or events may differ materially from these forward-looking statements.
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GERBER SCIENTIFIC, INC. AND SUBSIDIARIES |
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Quarter Ended |
Year Ended |
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In thousands, except per share data |
2007 |
2006 |
2007 |
2006 |
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Revenue: |
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Product sales |
$138,365 |
$127,238 |
$509,141 |
$468,355 |
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Service sales |
16,772 |
15,843 |
65,657 |
62,063 |
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155,137 |
143,081 |
574,798 |
530,418 |
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Costs and Expenses: |
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Cost of products sold |
97,814 |
89,617 |
362,215 |
331,920 |
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Cost of services sold |
10,287 |
9,913 |
40,209 |
37,982 |
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Selling, general and administrative expenses |
32,244 |
30,743 |
124,460 |
118,053 |
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Research and development |
6,089 |
6,089 |
24,282 |
24,878 |
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Restructuring charges |
--- |
--- |
--- |
(231) |
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146,434 |
136,362 |
551,166 |
512,602 |
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Operating income |
8,703 |
6,719 |
23,632 |
17,816 |
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Other income (expense), net |
549 |
(232) |
524 |
(1,669) |
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Loss on early extinguishment of debt |
--- |
--- |
--- |
(2,483) |
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Interest expense |
(817) |
(663) |
(3,530) |
(4,481) |
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Income before income taxes and cumulative effect of |
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Income tax expense |
2,870 |
1,541 |
7,118 |
6,199 |
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Income before cumulative effect of accounting change |
5,565 |
4,283 |
13,508 |
2,984 |
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Cumulative effect of accounting change, net of tax |
--- |
(340) |
--- |
(340) |
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Net income |
$ 5,565 |
$ 3,943 |
$ 13,508 |
$ 2,644 |
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Earnings per share of common stock: |
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Basic: |
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Income before cumulative effect of accounting change |
$ 0.24 |
$ 0.19 |
$ 0.59 |
$ 0.13 |
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Cumulative effect of accounting change |
--- |
(0.02) |
--- |
(0.01) |
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Net income |
$ 0.24 |
$ 0.17 |
$ 0.59 |
$ 0.12 |
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Diluted: |
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Income before cumulative effect of accounting change |
$ 0.24 |
$ 0.19 |
$ 0.58 |
$ 0.13 |
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Cumulative effect of accounting change |
--- |
(0.02) |
--- |
(0.01) |
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Net income |
$ 0.24 |
$ 0.17 |
$ 0.58 |
$ 0.12 |
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Weighted average shares outstanding: |
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Basic |
23,105 |
22,555 |
22,896 |
22,418 |
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Diluted |
23,509 |
22,971 |
23,446 |
22,706 |
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GERBER SCIENTIFIC, INC. AND SUBSIDIARIES |
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April 30, |
April 30, |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
$ 8,052 |
$ 14,145 |
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Accounts receivable, net |
106,421 |
92,422 |
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Inventories |
65,299 |
53,794 |
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Prepaid expenses and other current assets |
15,106 |
16,718 |
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Total current assets |
194,878 |
177,079 |
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Property, plant and equipment, net |
36,982 |
38,529 |
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Goodwill |
54,825 |
51,554 |
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Deferred income taxes |
34,893 |
27,696 |
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Other assets |
14,384 |
15,622 |
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Total assets |
$335,962 |
$310,480 |
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Liabilities and Shareholders’ Equity |
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Current Liabilities: |
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Current portion of long-term debt |
$ 1,773 |
$ 284 |
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Accounts payable |
48,772 |
53,886 |
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Other accrued liabilities |
63,208 |
57,248 |
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Total current liabilities |
113,753 |
111,418 |
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Long-term debt |
31,603 |
36,836 |
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Other long-term liabilities |
46,125 |
36,610 |
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Shareholders’ equity |
144,481 |
125,616 |
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Total liabilities and shareholders’ equity |
$335,962 |
$310,480 |