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For Immediate Release |
Contact: Jay Zager |
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November 30 , 2006 |
(860) 644-1551 |
GERBER SCIENTIFIC, INC. ANNOUNCES FISCAL 2007 SECOND QUARTER RESULTS SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported net income of $3.7 million for the second quarter of fiscal 2007, or $0.16 per diluted share, on revenue of $145.0 million, compared with a net loss of $0.1 million, or $0.01 per diluted share, on revenue of $134.0 million for the second quarter of fiscal 2006. Foreign currency translation had the effect of increasing revenue by approximately $3.3 million in the second quarter of fiscal 2007 compared with the second quarter of fiscal 2006. The prior year second quarter net loss included a pre-tax charge of $2.5 million, or $0.07 per diluted share, associated with the early extinguishment of the Company's former credit facility. For the six months ended October 31, 2006, the Company reported net income of $5.7 million, or $0.25 per diluted share, on revenue of $282.5 million, compared with a net loss of $1.2 million, or $0.05 per diluted share, on revenue of $262.7 million for the six months ended October 31, 2005. Foreign currency translation had the effect of increasing revenue by approximately $5.8 million for the six months ended October 31, 2006, as compared with the six months ended October 31, 2005. The Company's net loss for the six months ended October 31, 2005 included the $2.5 million charge associated with the early extinguishment of the Company's former credit facility and a $2.3 million tax charge associated with the reversal of a deferred tax asset in the United Kingdom. These items negatively impacted the prior year-to-date diluted earnings per share by $0.18. Marc T. Giles, President and Chief Executive Officer, said: "Fiscal 2007 results through October 31, 2006 are strong, with year-to-date revenue growth of over 7 percent. During the second quarter, new products and sales to Asian markets significantly contributed to this growth as compared with the prior year. This revenue growth is contributing significantly to our operating profit, which during the second quarter increased $1.6 million, or over 34 percent, as compared to the prior year." For additional information please see our Quarterly Report on Form 10-Q for the fiscal quarter ended October 31, 2006, which will 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 the sign making and specialty graphics, apparel and flexible materials and ophthalmic lens processing industries. Headquartered in South Windsor, Connecticut, the Company operates through four businesses: Gerber Scientific Products, Spandex Ltd., 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, apparel trade quotas, 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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In thousands, except per share data |
Quarter Ended |
Six Months Ended |
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2006 |
2005 |
2006 |
2005 |
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Revenue: |
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Product sales |
$128,423 |
$118,376 |
$249,835 |
$231,793 |
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Service sales |
16,626 |
15,585 |
32,702 |
30,932 |
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145,049 |
133,961 |
282,537 |
262,725 |
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Costs and Expenses: |
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Cost of products sold |
91,272 |
84,205 |
177,520 |
164,070 |
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Cost of services sold |
10,145 |
9,306 |
19,680 |
18,949 |
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Selling, general and administrative expenses |
30,990 |
29,308 |
62,353 |
58,883 |
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Research and development |
6,175 |
6,518 |
12,143 |
12,830 |
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Restructuring charges |
--- |
(195) |
--- |
(231) |
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138,582 |
129,142 |
271,696 |
254,501 |
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Operating income |
6,467 |
4,819 |
10,841 |
8,224 |
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Other income (expense), net |
279 |
(508) |
120 |
(683) |
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Loss on early extinguishment of debt |
--- |
(2,483) |
--- |
(2,483) |
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Interest expense |
(971) |
(1,525) |
(1,748) |
(2,956) |
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Income before income taxes |
5,775 |
303 |
9,213 |
2,102 |
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Income tax expense |
2,086 |
427 |
3,500 |
3,309 |
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Net income (loss) |
$ 3,689 |
$ (124) |
$ 5,713 |
$ (1,207) |
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Earnings (Loss) per share of common stock: |
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Basic |
$0.16 |
$(0.01) |
$0.25 |
$(0.05) |
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Diluted |
$0.16 |
$(0.01) |
$0.25 |
$(0.05) |
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Weighted average shares outstanding: |
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Basic |
22,854 |
22,368 |
22,737 |
22,340 |
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Diluted |
23,343 |
22,368 |
23,183 |
22,340 |
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GERBER SCIENTIFIC, INC. AND SUBSIDIARIES |
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October 31, |
April 30, |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
$ 10,312 |
$ 14,145 |
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Accounts receivable, net |
100,150 |
92,422 |
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Inventories |
59,163 |
53,794 |
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Prepaid expenses and other current assets |
16,100 |
16,718 |
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Total current assets |
185,725 |
177,079 |
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Property, plant and equipment, net |
36,617 |
38,366 |
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Goodwill |
52,218 |
51,554 |
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Deferred income taxes |
28,285 |
27,696 |
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Other assets |
15,500 |
15,785 |
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Total assets |
$318,345 |
$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 |
$ 831 |
$ 284 |
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Accounts payable |
47,852 |
53,886 |
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Accrued and other liabilities |
56,365 |
57,248 |
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Total current liabilities |
105,048 |
111,418 |
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Long-term debt |
39,954 |
36,836 |
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Other long-term liabilities |
36,009 |
36,610 |
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Shareholders' equity |
137,334 |
125,616 |
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Total liabilities and shareholders' equity |
$318,345 |
$310,480 |
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