News Release
Merrimac Reports First Quarter
2007 Results
WEST CALDWELL, N.J. May 14, 2007: Merrimac
Industries, Inc. (AMEX: MRM), a leader in the design and manufacture
of RF Microwave components, assemblies and micro-multifunction
modules (MMFM®), today announced results for the first
quarter of 2007.
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
| |
Quarter Ended
|
| |
March 31,
2007
|
April 1,
2006
|
Net sales
|
$5,424,000
|
$6,231,000
|
|
Gross profit
|
1,782,000
| 2,401,000
|
|
Selling, general and administrative expenses
|
2,491,000
| 2,486,000
|
|
Research and development expense
|
511,000
| 372,000
|
|
Operating loss
|
(1,220,000)
| (457,000)
|
|
Interest and other expense, net
|
44,000
|
19,000
|
|
Loss before income taxes
|
(1,264,000)
| (476,000)
|
|
Benefit for income taxes
| -
| (35,000)
|
|
Net loss
|
(1,264,000)
| (441,000)
|
| |
|
|
| Net loss per common share
| $(.41)
|
$(.14)
|
| |
|
|
| Weighted average number
of shares outstanding
|
3,096,000
|
3,149,000
|
Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets
| |
|
|
March 31,
2007
(Unaudited)
|
December 30,
2006
(Unaudited)
|
|
ASSETS |
Current assets: |
|
|
|
|
| Cash and cash equivalents |
$ 3,702,000 |
$ 5,961,000 |
| Accounts
receivable, net |
4,830,000 |
5,852,000 |
| Income tax
refunds receivable |
99,000 |
99,000 |
| Inventories |
4,074,000 |
3,917,000 |
| Other
current assets |
647,000 |
882,000 |
| Deferred
tax assets |
10,000 |
10,000 |
| Total
current assets |
13,362,000 |
16,721,000 |
| Property,
plant and equipment, net |
12,862,000 |
12,985,000 |
| Other
assets |
467,000 |
493,000 |
| Deferred
tax assets |
557,000 |
552,000 |
| Goodwill |
3,545,000 |
3,503,000 |
| Total
Assets |
$30,793,000 |
$34,254,000 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Liabilities: |
|
|
|
|
| Current
portion of long-term debt |
$622,000 |
$649,000 |
| Deferred
tax liabilities |
100,000 |
100,000 |
| Other
current liabilities |
2,577,000 |
2,618,000 |
| Total
current liabilities |
3,299,000 |
3,367,000 |
| Long-term
debt, net of current portion |
4,413,000 |
4,564,000 |
| Deferred
liabilities |
44,000 |
38,000 |
| Total
liabilities |
7,756,000 |
7,969,000 |
| Stockholders'
equity |
|
|
| Common stock |
33,000 |
33,000 |
| Additional paid-in capital |
19,340,000 |
19,237,000 |
| Retained earnings |
5,336,000 |
6,600,000 |
| Accumulated
other comprehensive income |
1,450,000 |
1,389,000 |
| Less treasury stock |
(3,122,000) |
(974,000) |
| Stockholders'
equity |
23,037,000 |
26,285,000 |
| Total
Liabilities and Stockholders' Equity |
$30,793,000 |
$34,254,000 |
Merrimac Industries,
Inc.
Condensed Consolidated Statements of Cash Flows
| |
|
|
Quarter Ended
(Unaudited) |
| |
|
|
March
31,
2007 |
April
1,
2006 |
| Cash flows from operating activities: |
| Net
loss |
$ (1,264,000) |
$ (441,000) |
| Adjustments
to reconcile net
loss to net cash (used in)
provided by operating activities: |
| Depreciation
and amortization |
635,000 |
663,000
|
| Amortization
of deferred financing
costs |
7,000 |
12,000
|
| Share-based
compensation |
51,000
|
44,000 |
| Changes
in operating assets
and liabilities: |
| Accounts
receivable |
1,029,000 |
(83,000) |
| Inventories |
(155,000) |
(514,000) |
| Other
current assets |
236,000 |
39,000 |
| Other
assets |
17,000 |
(11,000) |
| Other
current liabilities |
(47,000) |
76,000 |
| Deferred
liabilities |
6,000 |
(6,000) |
| Net
cash provided (used in) by operating activities |
515,000 |
(221,000) |
| Cash
flows from investing activities: |
| Purchases
of capital assets |
(499,000) |
(552,000) |
| Net
cash used in investing activities |
(499,000) |
(552,000) |
| Cash
flows from financing activities: |
| Borrowings
under revolving lease line |
- |
160,000 |
| Repurchase
of stock for the treasury |
(2,148,000) |
- |
| Repayment
of borrowings |
(180,000) |
(233,000) |
| Proceeds
from stock sales |
51,000 |
71,000 |
| Net
cash used in financing activities |
(2,277,000) |
(2,000) |
| Effect
of exchange rate changes |
2,000 |
(4,000) |
| Net
decrease in cash and cash equivalents |
(2,259,000) |
(779,000) |
| Cash
and cash equivalents at beginning of year |
5,961,000 |
4,081,000 |
| Cash
and cash equivalents at end of period |
$3,702,000
|
$3,302,000
|
|
|
|
