RE: Numbers DayThere out. See link and content of release below. Major kudos to management! Given what has happened to the Canadian dollar, management has exceeded my expectations. Gross margins up and administrative and selling costs down. And we finally have net income! Financials suggest that even in this environement of a weak U.S. dollar, it is possible for the company to operate in the black because of economy of scale. I'm pleased.
https://www.stockhouse.ca/news/news.asp?newsid=3475187&tick=ATQ
ADEPTRON TECHNOLOGIES CP Quick Quote: ATQ 0.20 (Even)
Adeptron Technologies Reports Q4 and Annual Financial Results for 2005
3/13/2006
Q4 profitable. Q4 revenue up 26% to $10.65 million is highest in over 4 years. Company: Adeptron Technologies Corporation Stock Symbol: ATQ Listing: Toronto Stock Exchange (TSX) Outstanding Shares: 34.6 Million Web Site: www.adeptron.com
TORONTO, Mar 13, 2006 (Canada NewsWire via COMTEX) --
Adeptron Technologies Corporation (ATQ: TSX) ("Adeptron" or the "Company"), a specialist at delivering integrated product solutions and support to the global technology and electronics industry, today reports its financial results for the three-month and twelve-month periods ended December 31, 2005.
"The fourth quarter results for 2005 represent a historical milestone for Adeptron with the reporting of its first profit in almost six years," stated F. Michael Marti, President and CEO of Adeptron.
The following summarizes the key points for the reporting periods ending December 31, 2005:
- Fourth quarter of 2005 net income of $153 thousand represents a
$1.14 million improvement compared to a loss of approximately
$1.0 million for the corresponding quarter of 2004, and an
improvement of $164 thousand compared to a loss of $11 thousand for
the third quarter of 2005.
- Fourth quarter of 2005 revenue of $10.65 million and $1.66 million of
gross margin represent the Company's highest revenue and gross margin
levels in over four years.
- Fourth quarter of 2005 gross margin as a percentage of revenue was
15.6% and represents the Company's highest quarterly gross margin
percentage in four years. This is over double the gross margin
percentage of 6.8% for the corresponding quarter of 2004 and up from
the gross margin percentage of 14.3% for the third quarter of 2005.
- Annual revenue for 2005 was $38.20 million an increase of 14% from
2004 revenue of $33.47 million.
- The net loss in 2005 of $411 thousand represents an improvement of
$2.77 million compared to the net loss in 2004 of $3.18 million.
Marti stated, "Despite adverse Canadian/US foreign currency exchange trends for Adeptron, the Company's overall financial performance in 2005 has shown consistent improvements in each quarter. Very noteworthy is the improvement in gross margin percentage as our revenues grew."
"We attribute Adeptron's revenue growth in 2005 to the increased scope of Adeptron's service offerings. In 2006, internally, we will continue to focus on the strengthening of our global supply chain management capability, the expansion of design and test engineering services and the on-going continuous improvement initiatives driven by our quality assurance philosophy." said Marti.
Marti continued, "Externally we will continue to pursue customer opportunities in high growth vertical markets with higher value products such as wireless/RFID, medical and industrial instrumentation, robotics and advanced commercial security instrumentation."
"Our performance trend throughout 2005 and the order activity from new and existing customers thus far in 2006 are factors that lead us to expect the Company will improve on its 2005 operating results in 2006. While continuing these efforts, we are also working to complete debt refinancing initiatives underway to enhance the Company's balance sheet and to increase working capital," said Marti.
Revenue for the fourth quarter of 2005 was $10.65 million, compared to $8.46 million for the corresponding quarter of 2004, an increase of $2.19 million, or 26%.
This revenue growth combined with the Company's cost reduction measures which began in the fourth quarter of 2004 and continued in 2005, resulted in significant improvements in gross margin and the gross margin percentage for the fourth quarter of 2005. Gross margin for the fourth quarter of 2005 improved to $1.66 million, an increase of $1.08 million, or 186%, over gross margin of $0.58 million in the corresponding quarter of 2004. The gross margin percentage in the fourth quarter of 2005 of 15.6% compared very favourably to the 6.8% gross margin percentage in the corresponding quarter of 2004.
Revenue for the full year 2005 was $38.20 million, compared to $33.47 million in 2004, an increase of $4.73 million, or 14%. These changes reflect organic growth and the inclusion of a complete twelve months of operations in Ottawa for 2005, as opposed to eleven months of operations in 2004.
Gross margin for the full year 2005 improved to $5.27 million, an increase of $2.43 million, or 86%, over gross margin of $2.84 million in 2004. The gross margin percentage for the full year 2005 of 13.8% compared favourably to the 8.5% gross profit percentage in 2004.
Selling, General and Administrative ("SG&A") expenses for the fourth quarter of 2005 were $1.29 million, similar to the corresponding quarter of 2004. SG&A expenses for the full year 2005 were $4.71 million, compared to $5.39 million in 2004, a decrease of $0.68 million, or 13.0%. SG&A expenses for the fourth quarter 2005 and the full year 2005 were negatively affected by unanticipated charges of $0.18 million related to a terminated financing.
The net income for the fourth quarter of 2005 was $153 thousand, a significant improvement over the loss of approximately $1.0 million, or $0.03 loss per share, for the corresponding quarter of 2004. The fourth quarter of 2005 net income and the loss for the full year were negatively affected by the unanticipated charges referred to in the discussion of SG&A expenses above. The net loss for the full year 2005 was reduced to $0.41 million, or $0.01 per share, an improvement of $2.77 million, compared to a loss of $3.18 million, or $0.09 per share in 2004.
The adjusted net income* for the fourth quarter of 2005 was $0.49 million, compared to a loss of $0.60 million for the corresponding quarter of 2004, an improvement of $1.09 million. The adjusted net income* for the full year 2005 was $1.04 million, compared to a loss of $0.81 million in 2004, an improvement of $1.85 million.
Comparing the fourth quarter of 2005 results to the third quarter of 2005 results, the fourth quarter of 2005 revenue of $10.65 million was $0.96 million, or 10%, higher than the third quarter of 2005 revenue of $9.69 million. The fourth quarter of 2005 gross profit of $1.66 million was $0.28 million higher than the third quarter of 2005 gross profit of $1.38 million. The fourth quarter of 2005 gross profit percentage of 15.6% was also an improvement over the gross margin percentage of 14.3% for the third quarter of 2005. The Company's fourth quarter net income of $153 thousand was an improvement of $164 thousand compared to the third quarter of 2005 net loss of $11 thousand.
Adeptron's 2005 Annual Report will be posted by March 17, 2006 on Adeptron's web site at www.adeptron.com.
Adeptron will hold its Annual General Meeting of shareholders on June 21, 2006. Details of the time and location of the meeting will be announced at a later date.
Selected comparative financial information for the three-month and
twelve-month periods ended December 31, 2005 and 2004 is shown below. (All
numbers expressed in thousands except per share information and gross margin
percentages):
<<
3-Month 3-Month 12-Month 12-Month
Period Period Period Period
------------ ------------ ------------ ------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenue $10,645 $8,457 $38,202 $33,465
Gross Margin 1,663 576 5,274 2,836
Gross Margin % 15.6% 6.8% 13.8% 8.5%
Net Income (Loss)
per GAAP 153 (987) (411) (3,180)
Net Income (Loss)
per Share $0.00 ($0.03) ($0.01) ($0.09)
Weighted average
number of shares
outstanding - basic 34,613 34,613 34,613 34,220
Adjusted net
income/(Loss)* $488 ($599) $1,035 ($808)
* Reconciliation of adjusted net income/(loss), as reported above, to
GAAP Loss for the three-month and twelve-month periods ended
December 31, 2005 and 2004 are shown below. (All numbers expressed in
thousands):
3-Month 3-Month 12-Month 12-Month
Period Period Period Period
------------ ------------ ------------ ------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Adjusted net
income/(Loss) $488 ($599) $1,035 ($808)
Add/(Deduct):
Interest on
subordinated notes 68 120 403 440
Other Interest 102 85 398 302
Depreciation and
amortization 140 131 540 1,138
Amortization of Lease
Costs Nil 26 27 103
Stock-based compensation 25 26 78 389
Net income (loss) per
GAAP $153 ($987) ($411) ($3,180)
* Adjusted net income/(loss) (income before interest, taxes,
depreciation, amortization and stock-based compensation) has been
presented to supplement the GAAP financial information. Adjusted net
income/(loss) does not have any standardized meaning prescribed by
GAAP and is not necessarily comparable to similar measures presented
by other issuers. Adeptron believes that adjusted net income/(loss)
is a meaningful measure of operating performance, as it facilitates
period-to-period operating comparisons by excluding certain items
such as interest and non-cash items such as non-cash interest, taxes,
depreciation, amortization and stock-based compensation. Adjusted net
income/(loss) is not a measure of operating performance under GAAP
and should not be considered in isolation or as a substitute for net
income (loss) prepared in accordance with GAAP. GAAP is defined as
Generally Accepted Accounting Principles currently in use in Canada.
About Adeptron:
Adeptron's business is Integrating Ideas with Solutions(TM) within the technology and electronics industries, to enhance our customers' competitive advantage. Adeptron delivers global product solutions and support for the complete product life cycle, including design, prototyping, supply chain management, manufacturing, assembly, testing, product assurance, distribution and after-sales service solutions. Adeptron's facilities are ISO 9001:2000 registered.
Adeptron is a public company whose common shares are listed for trading on The Toronto Stock Exchange under the symbol: "ATQ". The Company has approximately 34.6 million common shares outstanding. Visit Adeptron at: www.adeptron.com or www.investorfile.com.