News Release
Merrimac
Reports Third Quarter 2007 Results
WEST CALDWELL, N.J. November 13, 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 third quarter and first nine months of 2007.
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
| |
Quarter Ended
|
| |
Sept. 29,
2007
|
Sept. 30,
2006 (a)
|
Net sales
|
$6,612,000
|
$5,499,000
|
|
Gross profit
|
2,816,000
| 2,284,000
|
| Selling, general and
administrative expenses
|
2,099,000
| 2,222,000
|
|
Research and development
|
400,000
| 578,000
|
|
Operating income (loss)
|
317,000
| (516,000)
|
| Interest and other (expense)
income, net
|
(72,000)
|
52,000
|
| Income (loss) from continuing
operations
|
245,000
| (464,000)
|
|
Loss from discontinued operations
| (2,058,000)
| (135,000)
|
|
Net loss
|
(1,813,000)
| (599,000)
|
| |
|
|
| Net income (loss) per
common share: |
|
|
| Income (loss) from continuing
operations-basic |
$.08 |
$(.15) |
| Loss from discontinued
operations- basic |
$(.70) |
$(.04) |
| Net (loss) per common
share-basic |
$(.62) |
$(.19) |
| |
|
|
| Income (loss) from continuing
operations-diluted |
$.08 |
$(.15) |
| Loss from discontinued
operations- diluted |
$(.69) |
$(.04) |
| Net (loss) per common
share- diluted |
$(.61) |
$(.19) |
| |
|
|
| Weighted average number
of shares outstanding-basic |
2,917,000
|
3,137,000
|
| Weighted average number
of shares outstanding-diluted |
2,960,000
|
3,137,000
|
| (a) In accordance
with the provisions of SFAS No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets," the
operating results of Filtran Microcircuits Inc. for
the prior period have been reported as discontinued
operations. |
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
(Unaudited)
| |
Nine Months Ended
|
| |
Sept. 29,
2007 (a)
|
Sept. 30,
2006 (a)
|
Net sales
|
$16,495,000
|
$17,283,000
|
|
Gross profit
|
6,880,000
| 7,662,000
|
| Selling, general and
administrative expenses
|
6,293,000
| 6,706,000
|
|
Research and development
|
1,219,000
| 1,402,000
|
|
Operating loss
|
(632,000)
| (446,000)
|
| Interest and other (expense)
income, net
|
(56,000)
|
119,000
|
|
Loss from continuing operations
|
(688,000)
| (327,000)
|
| Loss from discontinued
operations
| (5,858,000)
| (183,000)
|
|
Net loss
|
(6,546,000)
| (510,000)
|
| |
|
|
| Net loss per common share:
|
|
|
| Loss from continuing
operations |
$(.23) |
$(.10) |
| Loss from discontinued
operations |
$(1.97) |
$(.06) |
| Net loss per common share
|
$(2.20) |
$(.16) |
| |
|
|
| Weighted average number
of shares outstanding |
2,975,000
|
3,143,000
|
| (a) In accordance
with the provisions of SFAS No. 144, “Accounting
for the Impairment or Disposal of Long-Lived Assets,”
the operating results of Filtran Microcircuits Inc.
for the current and prior periods have been reported
as discontinued operations. |
Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets
| |
|
|
Sept.
29 ,
2007
(Unaudited)(a)
|
December
30,
2006
(Unaudited)(a)
|
| ASSETS |
Current assets: |
|
|
|
|
| Cash
and cash equivalents |
$ 1,148,000 |
$ 5,399,000 |
| Accounts
receivable, net |
6,518,000 |
5,132,000 |
| Inventories |
4,482,000 |
3,740,000 |
| Other
current assets |
777,000 |
834,000 |
| Current
assets held for sale |
1,044,000 |
1.616,000 |
| Total
current assets |
13,969,000 |
16,721,000 |
| Property,
plant and equipment, net |
11,089,000 |
11,775,000 |
| Restricted
Cash |
250,000 |
- |
| Other
assets |
499,000 |
493,000 |
| Deferred
tax assets |
100,000 |
100,000 |
| Long-term
assets held for sale |
793,000 |
5,165,000 |
| Total
Assets |
$26,700,000 |
$34,254,000 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
Liabilities: |
|
|
|
|
Current Liabilities: |
|
|
|
|
| Current
portion of long-term debt |
$550,000 |
$550,000 |
| Deferred
tax liabilities |
100,000 |
100,000 |
| Other
current liabilities |
2,285,000 |
2,039,000 |
| Current
liabilities
related to assets held for sale |
1,151,000 |
678,000 |
| Total
current liabilities |
4,086,000 |
3,367,000 |
| Long-term
debt, net of current portion |
3,900,000 |
4,312,000 |
| Deferred
liabilities |
56,000 |
38,000 |
| Long-term
liabilities related to assets held
for sale |
236,000 |
252,000 |
| Total
liabilities |
8,278,000 |
7,969,000 |
| Stockholders'
equity: |
|
|
| Common
stock |
33,000 |
33,000 |
| Additional
paid-in capital |
19,612,000 |
19,237,000 |
| Retained
earnings |
54,000 |
6,600,000 |
| Accumulated
other comprehensive income |
1,845,000 |
1,389,000 |
| Treasury
stock |
(3,122,000) |
(974,000) |
| Stockholders'
equity |
18,422,000 |
26,285,000 |
| Total
Liabilities and Stockholders' Equity |
$26,700,000 |
$34,254,000 |
|
(a) In accordance with the provisions of SFAS No. 144,
“Accounting for the Impairment or Disposal of
Long-Lived Assets,” the operating results of Filtran
Microcircuits Inc. for the current and prior periods
have been reported as discontinued operations. |
Merrimac Industries,
Inc.
Condensed Consolidated Statements of Cash Flows
| |
|
|
Nine
Months Ended
(Unaudited) |
| |
|
|
Sept.
29,
2007 |
Sept.
30
2006 (a) |
| Cash flows from operating activities: |
| Net
loss |
$ (6,546,000) |
$ (510,000) |
| Less,
loss from discontinued operations |
$ (5,858,000) |
$ (183,000) |
| Loss
from continuing operations |
$ 688,000) |
$ (327,000) |
| Adjustments
to reconcile loss from continuing operations to net
cash used in operating activities: |
| Depreciation
and amortization |
1,757,000 |
1,759,000
|
| Amortization
of deferred financing
costs |
23,000 |
37,000
|
| Share-based
compensation |
223,000
|
138,000 |
| Changes
in operating assets
and liabilities: |
| Accounts
receivable |
(1,385,000) |
(1,295,000) |
| Inventories |
(742,000) |
(515,000) |
| Other
current assets |
57,000 |
(32,000) |
| Other
assets |
(30,000) |
35,000) |
| Other
current liabilities |
245,000 |
(523,000) |
| Deferred
liabilities |
18,000 |
16,000 |
| Net
cash used by operating activities-continuing operations |
(522,000) |
(707,000) |
| Net
cash provided (used) by operating activities-discontinued
operations |
(363,000) |
(277,000) |
| Net
cash used by operating activities |
(885,000) |
(430,000) |
| Cash
flows from investing activities: |
| Purchases
of capital assets |
(1,071,000) |
(1,203,000) |
| Net
cash used in investing activities-continuing operations |
(1,071,000) |
(1,203,000) |
| Net
cash used in investing activities-discontinued
operations |
(180,000) |
(45,000) |
| Net
cash used in investing activities |
(1,251,000) |
(1,248,000) |
| Cash
flows from financing activities: |
| Repurchase
of stock for the treasury |
(2,148,000) |
- |
| Repayment
of borrowings |
(413,000) |
(520,000) |
| Restricted
cash |
(250,000) |
- |
| Proceeds
from stock sales |
153,000 |
200,000 |
| Net
cash used in financing activities-continuing operations |
(2,658,000) |
(320,000) |
| Net
cash used in financing activities-discontinued
operations |
(52,000) |
(1,000) |
| Net
cash used in financing activities |
(2,710,000) |
(321,000) |
| Effect
of exchange rate changes |
33,000 |
33,000 |
| Net
decrease in cash and cash equivalents |
(4,813,000) |
(1,966,000) |
| Cash
and cash equivalents at beginning of period, including
$562,000 adn $23,000 reported under assets
held for sale |
5,961,000 |
4,081,000 |
| Cash
and cash equivalents at end of period including
$0 and $687,000 reported under assets held for
sale |
$1,148,000
|
$2,115,000
|
|
(a) In accordance with the provisions of SFAS No. 144,
“Accounting for the Impairment or Disposal of
Long-Lived Assets,” the operating results of Filtran
Microcircuits Inc. for the current and prior periods
have been reported as discontinued operations. |
|
|
|
