FOR IMMEDIATE RELEASE
Merrimac Reports Second Quarter
and Six Months 2007 Results
WEST CALDWELL, N.J. August 14, 2007: Merrimac
Industries, Inc. (AMEX: MRM), a leader in the design and
manufacture of RF Microwave components, subsystem assemblies
and micro-multifunction modules (MMFM®), today announced
results for the second quarter and first six months of 2007.
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
| |
Quarter Ended
|
| |
June 30,
2007
|
July 1,
2006
|
Net sales
|
$6,225,000
|
$8,251,000
|
|
Gross profit
|
2,382,000
| 3,710,000
|
|
Selling, general and administrative expenses
|
2,284,000
| 2,645,000
|
|
Research and development
|
360,000
| 516,000
|
|
Goodwill impairment charge
|
2,630,000
|
-
|
|
Operating income (loss)
|
(2,892,000)
| 549,000
|
|
Interest and other expense, net
|
(71,000)
|
(33,000)
|
|
Income (loss) before income taxes
|
(2,963,000)
| 516,000
|
|
Provision (benefit) for income taxes
| 506,000
| (13,000)
|
|
Net income (loss)
|
(3,469,000)
| 529,000
|
| |
|
|
| Net income (loss) per
common share-basic and diluted
| $(1.19)
|
$.17
|
| |
|
|
|
Weighted average number of shares
outstanding - basic
|
2,911,000
|
3,144,000
|
| Weighted average number
of shares outstanding - diluted
|
2,911,000
|
3,183,000
|
| |
Six Months Ended
|
| |
June 30,
2007
|
July 1,
2006
|
Net sales
|
$11,649,000
|
$14,482,000
|
|
Gross profit
|
4,164,000
| 6,112,000
|
|
Selling, general and administrative expenses
|
4,775,000
| 5,131,000
|
|
Research and development
|
872,000
| 888,000
|
|
Goodwill impairment charge
|
2,630,000
|
-
|
|
Operating income (loss)
|
(4,113,000)
| 93,000
|
|
Interest and other expense, net
|
(114,000)
|
(52,000)
|
|
Income (loss) before income taxes
|
(4,227,000)
| 41,000
|
|
Provision (benefit) for income taxes
| 506,000
| (48,000)
|
|
Net income (loss)
|
(4,733,000)
| 89,000
|
| |
|
|
| Net income (loss) per
common share-basic and diluted
| $(1.58)
|
$.03
|
| |
|
|
|
Weighted average number of shares
outstanding - basic
|
3,004,000
|
3,146,000
|
| Weighted average number
of shares outstanding - diluted
|
3,004,000
|
3,166,000
|
Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets
| |
|
|
June
30,
2007
(Unaudited)
|
December 30,
2006
(Unaudited)
|
|
ASSETS |
Current assets: |
|
|
|
|
| Cash and cash equivalents |
$ 2,817,000 |
$ 5,961,000 |
| Accounts
receivable, net |
5,230,000 |
5,852,000 |
| Income tax
refunds receivable |
103,000 |
99,000 |
| Inventories |
4,784,000 |
3,917,000 |
| Other
current assets |
727,000 |
882,000 |
| Deferred
tax assets |
- |
10,000 |
| Total
current assets |
13,661,000 |
16,721,000 |
| Property,
plant and equipment, net |
12,738,000 |
12,985,000 |
| Other
assets |
538,000 |
493,000 |
| Deferred
tax assets |
100,000 |
552,000 |
| Goodwill |
1,063,000 |
3,503,000 |
| Total
Assets |
$28,100,000 |
$34,254,000 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Liabilities: |
|
|
|
|
| Current
portion of long-term debt |
$621,000 |
$649,000 |
| Deferred
tax liabilities |
100,000 |
100,000 |
| Other
current liabilities |
3,066,000 |
2,618,000 |
| Total
current liabilities |
3,787,000 |
3,367,000 |
| Long-term
debt, net of current portion |
4,277,000 |
4,564,000 |
| Deferred
liabilities |
50,000 |
38,000 |
| Total
liabilities |
8,114,000 |
7,969,000 |
| Stockholders'
equity |
|
|
| Common stock |
33,000 |
33,000 |
| Additional paid-in capital |
19,450,000 |
19,237,000 |
| Retained earnings |
1,867,000 |
6,600,000 |
| Accumulated
other comprehensive income |
1,758,000 |
1,389,000 |
| Treasury stock |
(3,122,000) |
(974,000) |
| Stockholders'
equity |
19,986,000 |
26,285,000 |
| Total
Liabilities and Stockholders' Equity |
$28,100,000 |
$34,254,000 |
Merrimac Industries,
Inc.
Condensed Consolidated Statements of Cash Flows
| |
|
|
Six
Month Ended
(Unaudited) |
| |
|
|
June
30,
2007 |
July
1,
2006 |
| Cash flows from operating activities: |
| Net
income (loss) |
$ (4,733,000) |
$ 89,000 |
| Adjustments
to reconcile net income
(loss) to net cash provided by
operating activities: |
| Depreciation
and amortization |
1,292,000 |
1,318,000
|
| Amortization
of deferred financing
costs |
15,000 |
25,000
|
|
Goodwill impairment
charge |
2,630,000 |
- |
|
Deferred income
taxes |
506,000 |
- |
| Share-based
compensation |
132,000
|
82,000 |
| Changes
in operating assets
and liabilities: |
| Accounts
receivable |
686,000 |
(174,000) |
| Inventories |
(846,000) |
(287,000) |
| Other
current assets |
166,000 |
62,000 |
| Other
assets |
(62,000) |
(21,000) |
| Other
current liabilities |
379,000 |
(736,000) |
| Deferred
liabilities |
12,000 |
8,000 |
| Net
cash provided by operating activities |
177,000 |
366,000 |
| Cash
flows from investing activities: |
| Purchases
of capital assets |
(927,000) |
(979,000) |
| Net
cash used in investing activities |
(927,000) |
(979,000) |
| Cash
flows from financing activities: |
| Borrowings
under revolving lease line |
- |
160,000 |
| Repurchase
of stock for the treasury |
(2,148,000) |
- |
| Repayment
of borrowings |
(343,000) |
(464,000) |
| Proceeds
from stock sales |
81,000 |
186,000 |
| Net
cash used in financing activities |
(2,410,000) |
(118,000) |
| Effect
of exchange rate changes |
16,000 |
33,000 |
| Net
decrease in cash and cash equivalents |
(3,144,000) |
(698,000) |
| Cash
and cash equivalents at beginning of year |
5,961,000 |
4,081,000 |
| Cash
and cash equivalents at end of period |
$2,817,000
|
$3,383,000
|
|
|
|
