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Presstek Inc. News
Presstek Reports Third Quarter 2007 Financial Results
HUDSON, N.H.,
Consolidated revenue from continuing operations was
Presstek President and Chief Executive Officer
The company reported that debt net of cash was
Revenue from the company's growth product portfolio, which includes the 34DI and 52DI digital offset solutions, Lasertel operations, and the Presstek family of chemistry-free computer-to-plate (CTP) solutions, comprised 50% of total revenue in the third quarter of 2007 (excluding the adjustment for prior period transactions noted above), up from 41% of total revenue in the same quarter last year. Revenue from the growth product portfolio was up 22% over the prior year period, led by a 24% increase in DI press sales.
Consolidated gross margin was
Operating expenses in the third quarter totaled
Presstek's Lasertel operation recorded external sales of
Additionally, the company plans to report in its
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, the company provides non-GAAP financial measures, including debt net of cash, which is defined as debt minus cash, and other GAAP measures adjusted for certain charges, which the company believes are useful to help investors better understand its past financial performance and prospects for the future. A full reconciliation of GAAP to non-GAAP measures is provided in the financial tables below. Supplemental Financial Information has been provided with this release to provide additional details on the company's performance.
Conference Call and Webcast
Management will discuss Presstek's third quarter 2007 results in a conference call today at
To participate in the conference call, please dial 888-873-4896 (domestic) or 617-213-8850 (international). The pass code for the call is 71152452. Additionally, a live web cast of the conference call will be available on the "Investor Events Calendar" page on the company's web site at www.presstek.com/investors/calendar.html .
A replay of this conference call will be available from
About Presstek
Presstek, Inc. is the leading manufacturer and marketer of high tech digital imaging solutions to the graphic arts and laser imaging markets. Presstek's patented DI(R), CTP and plate products provide a streamlined workflow in a chemistry-free environment, thereby reducing printing cycle time and lowering production costs. Presstek solutions are designed to make it easier for printers to cost effectively meet increasing customer demand for high-quality, shorter print runs and faster turnaround while providing improved profit margins.
Presstek subsidiary, Lasertel, Inc., manufactures semiconductor laser diodes for Presstek's and external customers' applications.
For more information visit www.presstek.com, or call 603-595-7000 or email: info@presstek.com.
Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained in this News Release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the results of internal reviews and their impact on future performance, expected improvement in 2008 performance, operating income (loss), improving cash position, anticipated results from the company's Business Improvement Plan, anticipated headcount reductions, and the ability of the company to achieve its stated objectives. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, market acceptance of and demand for the company's products and resulting revenue, the results and impact of the company's internal reviews, the ability of the company to achieve the objectives of its Business Improvement Plan, the timing of the filing of the company's 10-Q for the period ending
Contact: Investor Relations, Presstek (603) 594-8585 x3559 investorrelations@presstek.com PRESSTEK, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per-share data) (Unaudited) Three months ended Nine months ended September September September September 29, 30, 29, 30, 2007 2006 2007 2006 Revenue Product $50,124 $50,578 $164,239 $164,924 Service and parts 9,488 10,841 29,276 34,705 Total revenue 59,612 61,419 193,515 199,629 Cost of revenue Product 36,759 35,280 117,086 114,962 Service and parts 8,097 8,095 24,568 25,074 Total cost of revenue 44,856 43,375 141,654 140,036 Gross profit 14,756 18,044 51,861 59,593 Operating expenses Research and development 1,492 1,660 4,746 4,885 Sales, marketing and customer support 9,503 9,920 30,319 29,824 General and administrative 9,150 5,585 24,407 14,738 Amortization of intangible assets 577 807 1,999 2,336 Restructuring and other charges 398 (208) 1,527 (208) Total operating expenses 21,120 17,764 62,998 51,575 Income (loss) from operations (6,364) 280 (11,137) 8,018 Interest and other expense, net (586) (96) (2,476) (1,264) Income (loss) before income taxes (6,950) 184 (13,613) 6,754 Provision (benefit) for income taxes (3,324) 224 (4,267) 1,237 Income (loss) from continuing operations (3,626) (40) (9,346) 5,517 Gain (loss) from discontinued operations, net of tax $10 (383) $(78) (470) Net income (loss) $(3,616) $(423) $(9,424) $5,047 Earnings (loss) per share - basic Income (loss) from continuing operations $(0.10) $(0.00) $(0.26) $0.15 Gain (loss) from discontinued operations 0.00 (0.01) (0.00) (0.01) $(0.10) $(0.01) $(0.26) $0.14 Earnings (loss) per share - diluted Income (loss) from continuing operations $(0.10) $(0.00) $(0.26) $0.15 Gain (loss) from discontinued operations 0.00 (0.01) (0.00) (0.01) $(0.10) $(0.01) $(0.26) $0.14 Weighted average shares outstanding Weighted average shares outstanding - basic 36,545 35,609 36,080 35,541 Dilutive effect of options - - - 386 Weighed average shares outstandi - diluted 36,545 35,609 36,080 35,927 PRESSTEK, INC. CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) September 29, December 30, 2007 2006 ASSETS Current assets Cash and cash equivalents $8,253 $9,449 Accounts receivable, net 49,051 53,158 Inventories, net 50,226 46,050 Assets of discontinued operations 74 3,321 Deferred income taxes 4,210 4,162 Other current assets 3,103 2,600 Total current assets 114,917 118,740 Property, plant and equipment, net 39,500 42,194 Goodwill 19,807 20,280 Intangible assets, net 6,750 8,741 Deferred income taxes 11,896 7,515 Other noncurrent assets 946 544 Total assets $193,816 $198,014 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt and capital lease obligation $7,039 $7,037 Line of credit 21,000 15,000 Accounts payable 21,982 27,126 Accrued expenses 16,088 10,471 Deferred revenue 7,532 7,901 Liabilities of discontinued operations 722 3,707 Total current liabilities 74,363 71,242 Long-term debt and capital lease obligation, less current portion 10,259 15,535 Total liabilities 84,622 86,777 Commitments and contingencies Stockholders' equity Preferred stock - - Common stock 366 357 Additional paid-in capital 115,276 108,769 Accumulated other comprehensive income 1,162 297 Retained earnings (accumulated deficit) (7,610) 1,814 Total stockholders' equity 109,194 111,237 Total liabilities and stockholders' equity $193,816 $198,014 PRESSTEK, INC. CONTINUING OPERATIONS SUPPLEMENTAL FINANCIAL INFORMATION $000's (Unaudited) Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Key Units Presstek DI Presses (Excludes QMDI) 36 54 44 51 37 Presstek CtP Platesetters (Excludes DPM) 36 35 44 47 47 Revenue - Growth Portfolio Presstek DI Presses (Excludes QMDI) 11,340 17,248 15,215 18,873 13,071 DI Kits 397 429 870 462 125 DI Plates 3,386 3,778 3,996 4,306 4,567 Total DI Revenue 15,123 21,455 20,081 23,641 17,763 Presstek CtP Platesetters (Excludes DPM) 2,643 2,539 3,415 3,753 2,962 Chemistry Free CtP Plates 4,449 3,976 4,953 4,914 5,034 Total CtP Revenue 7,092 6,515 8,368 8,667 7,996 Service Transfer (633) (1,001) (913) (1,253) (1,105) Service Revenue 1,464 2,012 1,983 2,368 2,184 Lasertel Revenue 1,807 1,874 1,689 2,186 1,951 Total Revenue - Growth Portfolio (B) 24,853 30,855 31,209 35,608 28,789 Revenue - Traditional Portfolio QMDI Platform 6,228 6,880 5,243 5,750 5,121 Polyester CtP Platform 5,690 5,257 5,477 5,529 4,961 Other DI Plates 2,134 2,289 2,263 2,571 2,541 Conventional/Other 13,387 12,782 13,276 12,039 11,109 Total Product Revenue - Traditional 27,439 27,207 26,259 25,889 23,732 Service Transfer (251) (249) (249) (246) (219) Service Revenue - Traditional 9,378 8,253 7,933 7,500 7,310 Total Revenue - Traditional Portfolio (B) 36,567 35,211 33,943 33,143 30,823 Total Revenue (B) 61,419 66,066 65,152 68,751 59,612 Product Revenue Components % Digital 76.6% 79.4% 78.4% 82.1% 80.2% Analog 23.4% 20.6% 21.6% 17.9% 19.8% Geographic Revenues (Origination) (B) North America 48,099 51,990 46,133 51,454 46,789 Europe 13,319 14,076 19,019 17,296 12,823 Consolidated 61,419 66,066 65,152 68,751 59,612 Gross Margin Presstek Equipment 9.2% 11.2% 13.0% 8.5% -0.3% Consumables 43.6% 43.6% 41.8% 46.2% 45.7% Service 25.3% 28.0% 22.4% 11.1% 14.7% Lasertel 14.2% 20.1% 17.6% 30.3% -16.9% Consolidated 29.4% 29.3% 28.4% 27.1% 24.8% Operating Expense (Excluding Special Charges) $17,972 $17,514 $18,459 $22,290 $20,722 Profitability Net income (loss) $(423) $4,697 $(978) $(4,830) $(3,616) Add back: Net (income) loss from discontinued operations $383 $2,803 $112 $(24) $(10) Net income (loss) from continuing operations $(40) $7,500 $(866) $(4,854) $(3,626) Add back: Interest 644 612 754 842 757 Other (income) expense (548) (50) 143 151 (171) Tax charge (benefit) 224 (11,880) (317) (626) (3,324) Incremental charges 0 0 1,020 4,917 6,286 Other charges (credits) (208) 5,689 335 793 399 Operating income (loss) from continuing operations 72 1,871 1,069 1,223 321 Add back: Depreciation and amortization 2,566 2,502 2,437 2,425 2,321 Other income (expense) 548 50 (143) (151) 171 EBITDA From Continuing Operations (A) $3,186 $4,423 $3,363 $3,497 $2,813 Cash Earnings From Continuing Operations Net income from continuing operations (40) 7,500 (866) (4,854) (3,626) Add back: Other charges (credits) (208) 5,689 335 793 399 Depreciation and amortization 2,566 2,502 2,437 2,425 2,321 Non cash portion of equity compensation (2006 forward 123R related) 146 167 306 2,491 650 Non cash portion of taxes 143 (11,234) (254) (1,408) (2,767) Cash Earnings From Continuing Operations (A) 2,607 4,624 1,958 (553) (3,023) Working Capital Current assets (excluding net assets of discontinued operations) $102,498 $115,419 $122,727 $123,465 $114,843 Current liabilities Short-term debt 16,000 22,000 29,000 28,000 28,000 All other current liabilities 42,834 45,498 48,067 49,354 45,602 Current liabilities 58,834 67,498 77,067 77,354 73,602 Working capital 43,664 47,921 45,660 46,111 41,241 Add back short-term debt 16,000 22,000 29,000 28,000 28,000 Working capital, excluding short-term debt (A) $59,664 $69,921 $74,660 $74,111 $69,241 Debt net of cash (A) Calculation of total debt: Current portion of long-term debt $7,000 $7,000 $7,000 $7,000 $7,000 Line of credit 9,000 15,000 22,000 21,000 21,000 Long-term debt, net of current portion 17,250 15,500 13,750 12,000 10,250 Total debt 33,250 37,500 42,750 40,000 38,250 Cash 6,345 9,449 5,711 7,319 8,253 Debt net of cash $26,905 $28,051 $37,039 $32,681 $29,997 Days Sales Outstanding 60 62 73 68 70 Days Inventory Outstanding 61 61 69 69 78 Capital Expenditures $1,117 $736 $1,330 $748 $455 Employees 852 813 813 792 770 (A) EBITDA [earnings before interest, taxes, depreciation, amortization and restructuring and merger-related charges (credits)]; Working capital excluding short-term debt; Debt net of cash; and Cash earning from continuing operations are not measures of performance under accounting principles generally accepted in the United States of America (\"GAAP\") and should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Presstek's management believes that EBITDA provides meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Cash earnings from continuing operations provide meaningful supplemental information regarding Presstek's current financial performance and prospects for the future. Presstek's management believes that Working capital, excluding short- term debt, provides meaningful supplemental information regarding Presstek's ability to meet its current liability obligations. Presstek's management believes that Debt net of cash provides meaningful information on Presstek's debt relative to its cash position. Presstek believes that both management and investors benefit from referring to these non-GAAP measures in assessing the performance of Presstek's ongoing operations and liquidity, and when planning and forecasting future periods. These non-GAAP measures also facilitate management's internal comparisons to Presstek's historical operating results and liquidity. Our presentations of these measures, however, may not be comparable to similarly titled measures used by other companies. Reconciliations of these measures to GAAP are included in the tables above. (B) Q3 2007 results reflect $1.5 million decrease in revenue due to the correction of certain revenue transactions. ** Certain amounts may be subject to reclassification to conform to current presentation.
SOURCE Presstek Inc.
