Presstek, Inc. News
Presstek Announces First Quarter 2008 Net Profit
On
"Despite a 19.5% revenue decline versus last year's first quarter, the company reported gross profit only slightly below first quarter 2007 levels and positive earnings versus a loss in the same period a year ago," commented Presstek President and Chief Executive Officer
Consolidated gross margin in the first quarter of 2008 was 34.5% versus 28.4% a year ago. Gross margin improvements were driven by the positive impact of the company's BIP. In addition, the company's higher margin consumables and service annuity businesses represented a greater proportion of total sales in the quarter which had a positive impact on gross margin. First quarter 2008 operating expenses declined
Lasertel's external sales were
The company also announced it has reached an agreement to sell its Lasertel property in
The company also announced that its Annual Meeting of Stockholders will be held on
"As I complete my first year as President and Chief Executive Officer of Presstek," Mr. Jacobson concluded, "I recognize that there's still a great deal of work ahead of us, but I am also pleased with the substantial progress we have made. Our business reviews are complete; our BIP is executing well; and debt net of cash has significantly improved. Our leadership team is excited at the prospect of driving long-term revenue growth, leveraging our improving operating structure and delivering increased profitability."
Information Regarding Non-GAAP Measures
In the first quarter of 2008, 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 first quarter 2008 results in a conference call today at
CONFERENCE CALL ACCESS Domestic Dial In: (866) 711-8198 International Dial In: (617) 597-5327 Passcode: 80852180
In addition, for those unable to participate at the time of the call, a rebroadcast will be available following the call from
REBROADCAST ACCESS Domestic Dial In: 888-286-8010 International Dial In: 617-801-6888 Passcode: 10583571
An archived web cast of this conference call will also be available on the "Investor Events Calendar" page of the company's web site, at www.presstek.com/investors/calendar.html.
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.
DI is a registered trademark of Presstek, Inc.
"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 expected revenue, gross margins, operating income (loss), EBITDA, the continuation of progress at reducing costs and expenses, customer demand, the results of the company's Business Improvement Plan, the sale of property, 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 meet its stated financial and operational objectives, the company's dependency on its strategic partners (both manufacturing and distribution), the results of the pending investigation of the Company by the Securities and Exchange Commission, the satisfaction of conditions to the sale of the company's
Contacts: Investor Relations Trade Relations Kathleen Makrakis Betty LaBaugh Director of Investor Relations Public Relations Manager 203-485-7534, ext. 1432 603-594-8585, ext. 3441 kmakrakis@presstek.com blabaugh@presstek.com PRESSTEK, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per-share data) (Unaudited) Three months ended March 29, March 31, 2008 2007 Revenue Product $43,027 $55,236 Service and parts 9,404 9,916 Total revenue 52,431 65,152 Cost of revenue Product 27,394 38,946 Service and parts 6,926 7,698 Total cost of revenue 34,320 46,644 Gross profit 18,111 18,508 Operating expenses Research and development 1,552 1,634 Sales, marketing and customer support 7,600 9,864 General and administrative 7,143 6,254 Amortization of intangible assets 351 707 Restructuring and other charges 635 335 Total operating expenses 17,281 18,794 Income (loss) from operations 830 (286) Interest and other expense, net (718) (897) Income (loss) before income taxes 112 (1,183) Provision (benefit) for income taxes (79) (317) Income (loss) from continuing operations 191 (866) Gain (loss) from discontinued operations, net of tax $27 (112) Net income (loss) $218 $(978) Earnings (loss) per share - basic Income (loss) from continuing operations $0.01 $(0.03) Gain (loss) from discontinued operations $0.00 (0.00) $0.01 $(0.03) Earnings (loss) per share - diluted Income (loss) from continuing operations $0.01 $(0.03) Gain (loss) from discontinued operations $0.00 (0.00) $0.01 $(0.03) Weighted average shares outstanding Weighted average shares outstanding - basic 36,568 35,663 Dilutive effect of options 8 - Weighed average shares outstanding - diluted 36,576 35,663 PRESSTEK, INC. CONSOLIDATED BALANCE SHEETS (in thousands) (Unaudited) March 29, December 29, 2008 2007 ASSETS Current assets Cash and cash equivalents $6,642 $13,249 Accounts receivable, net 37,885 42,879 Inventories, net 52,508 49,084 Assets of discontinued operations 12 15 Deferred income taxes 6,740 6,740 Other current assets 5,375 4,666 Total current assets 109,162 116,633 Property, plant and equipment, net 36,527 38,023 Goodwill 19,891 19,891 Intangible assets, net 5,993 6,287 Deferred income taxes 11,199 11,124 Other noncurrent assets 555 869 Total assets $183,327 $192,827 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of long-term debt and capital lease obligation $7,025 $7,035 Line of credit 15,000 20,000 Accounts payable 17,655 18,603 Accrued expenses 22,961 23,713 Deferred revenue 5,775 7,196 Liabilities of discontinued operations 686 888 Total current liabilities 69,102 77,435 Long-term debt and capital lease obligation, less current portion 6,750 8,500 Total liabilities 75,852 85,935 Commitments and contingencies Stockholders' equity Preferred stock - - Common stock 366 366 Additional paid-in capital 116,410 115,884 Accumulated other comprehensive income 871 1,032 Retained earnings (accumulated deficit) (10,172) (10,390) Total stockholders' equity 107,475 106,892 Total liabilities and stockholders' equity $183,327 $192,827 PRESSTEK, INC. CONTINUING OPERATIONS SUPPLEMENTAL FINANCIAL INFORMATION $000's (Unaudited) Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Key Units Presstek DI Presses (Excludes QMDI) 44 51 37 44 29 Presstek CtP Platesetters (Excludes DPM) 44 47 47 46 46 Revenue - Growth Portfolio Presstek DI Presses (Excludes QMDI) 15,215 18,873 13,071 15,380 9,736 DI Kits 870 462 125 0 0 DI Plates 3,996 4,306 4,567 5,138 5,500 Total DI Revenue 20,081 23,641 17,763 20,518 15,236 Presstek CtP Platesetters (Excludes DPM) 3,415 3,753 2,962 2,989 2,793 Chemistry Free CtP Plates 4,953 4,914 5,034 4,613 4,522 Total CtP Revenue 8,368 8,667 7,996 7,602 7,315 Service Transfer (913) (1,253) (1,105) (1,438) (865) Service Revenue 1,983 2,368 2,184 3,394 2,727 Lasertel Revenue 1,689 2,186 1,951 2,445 1,637 Total Revenue - Growth Portfolio (B) 31,209 35,608 28,789 32,521 26,050 Revenue - Traditional Portfolio QMDI Platform 5,243 5,750 5,121 4,678 4,063 Polyester CtP Platform 5,477 5,529 4,961 4,785 4,485 Other DI Plates 2,263 2,571 2,541 2,536 1,664 Conventional/Other 13,276 12,039 11,109 10,782 9,567 Total Product Revenue - Traditional 26,259 25,889 23,732 22,781 19,779 Service Transfer (249) (246) (219) (277) (75) Service Revenue - Traditional 7,933 7,500 7,310 6,303 6,677 Total Revenue - Traditional Portfolio (B) 33,943 33,143 30,823 28,807 26,381 Total Revenue (B) 65,152 68,751 59,612 61,328 52,431 Product Revenue Components % Growth 47.9% 51.8% 48.3% 53.0% 49.7% Traditional 52.1% 48.2% 51.7% 47.0% 50.3% Geographic Revenues (Origination) (B) North America 46,133 51,454 46,789 45,891 41,404 Europe 19,019 17,296 12,823 15,437 11,027 Consolidated 65,152 68,751 59,612 61,328 52,431 Gross Margin Presstek Equipment 13.0% 8.5% -0.3% 11.6% 15.1% Consumables 41.8% 46.2% 45.7% 47.7% 49.4% Service 22.4% 11.1% 14.7% 27.2% 26.3% Lasertel 17.6% 30.3% -16.9% -3.3% -17.7% Consolidated 28.4% 27.1% 24.8% 30.7% 34.5% Operating Expense (Excluding Special Charges) $18,459 $22,290 $20,722 $21,235 $16,646 Profitability Net income (loss) $(978) $(4,830) $(3,616) $(2,780) $218 Add back: Net (income) loss from discontinued operations $112 $(24) $(10) $(24) $(27) Net income (loss) from continuing operations $(866) $(4,854) $(3,626) $(2,804) $191 Add back: Interest 754 842 757 824 615 Other (income) expense 143 151 (171) (876) 102 Tax charge (benefit) (317) (626) (3,324) (751) (79) Incremental charges 1,020 4,917 6,286 3,637 - Other charges (credits) 335 793 398 1,187 635 Operating income (loss) from continuing operations 1,069 1,223 320 1,217 1,464 Add back: Depreciation and amortization 2,437 2,425 2,369 2,136 2,023 Other income (expense) (143) (151) 171 876 (102) EBITDA From Continuing Operations (A) $3,363 $3,497 $2,860 $4,229 $3,385 Cash Earnings From Continuing Operations Net income from continuing operations (866) (4,854) (3,626) (2,804) 191 Add back: Other charges (credits) 335 793 398 1,187 635 Depreciation and amortization 2,437 2,425 2,369 2,136 2,023 Non cash portion of equity compensation (2006 forward 123R related) 306 2,491 650 542 442 Non cash portion of taxes (254) (1,408) (2,767) (1,758) (75) Cash Earnings From Continuing Operations (A) 1,958 (553) (2,976) (697) 3,216 Working Capital Current assets (excluding net assets of discontinued operations) $122,727 $123,465 $114,843 $116,618 $109,150 Current liabilities Short-term debt 29,000 28,000 28,000 27,000 22,000 All other current liabilities 48,067 49,354 45,602 49,512 46,391 Current liabilities 77,067 77,354 73,602 76,512 68,391 Working capital 45,660 46,111 41,241 40,106 40,759 Add back short-term debt 29,000 28,000 28,000 27,000 22,000 Working capital, excluding short-term debt (A) $74,660 $74,111 $69,241 $67,106 $62,759 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 22,000 21,000 21,000 20,000 15,000 Long-term debt, net of current portion 13,750 12,000 10,250 8,500 6,750 Total debt 42,750 40,000 38,250 35,500 28,750 Cash 5,711 7,319 8,253 13,249 6,642 Debt net of cash $37,039 $32,681 $29,997 $22,251 $22,108 Days Sales Outstanding 73 68 70 58 67 Days Inventory Outstanding 69 69 78 74 88 Capital Expenditures $1,330 $748 $455 $513 $353 Employees 813 792 770 712 709 (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 provides 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.
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