Insignia Systems, Inc. (Nasdaq: ISIG) today reported the following
results for the three and nine months ended September 30, 2013, as
compared to the three and nine months ended September 30, 2012.
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Three months
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Three months
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ended
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ended
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% increase
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9/30/2013
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9/30/2012
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(decrease)
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POPS revenue
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$
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6,927,000
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$
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5,710,000
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21.3
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%
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Products revenue
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393,000
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364,000
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8.0
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%
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Total net sales
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7,320,000
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6,074,000
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20.5
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%
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Operating income
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$
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544,000
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$
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476,000
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Net income
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$
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354,000
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$
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380,000
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Net income per share:
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Basic
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$
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0.03
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$
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0.03
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Diluted
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$
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0.03
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$
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0.03
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Nine months
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Nine months
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ended
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ended
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% increase
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9/30/2013
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9/30/2012
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(decrease)
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POPS revenue
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$
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19,642,000
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$
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13,489,000
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45.6
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%
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Products revenue
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1,207,000
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1,355,000
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(10.9
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)
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%
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Total net sales
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20,849,000
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14,844,000
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40.5
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%
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Operating income (loss)
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$
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1,689,000
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$
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(2,492,000
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)
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Net income (loss)
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$
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938,000
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$
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(1,693,000
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)
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Net income (loss) per share:
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Basic
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$
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0.07
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$
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(0.12
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)
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Diluted
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$
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0.07
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$
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(0.12
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)
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CEO Glen Dall commented, “I am pleased with our results this quarter and
through the first nine months of 2013. The investments we made in sales
and technology are beginning to pay out, as can be seen with our 40%
growth in year-to-date sales as compared to 2012, and the improvement in
gross margin accompanying those higher sales. We believe the results of
the Company’s tender offer, while resulting in the tender of fewer
shares than we had anticipated, demonstrate that our shareholders
support the Company and share our optimism for about the future. Our
reconstituted board is supportive of our initiatives and providing
valuable leadership as we move into the next phase of our Company’s
transformation.”
Mr. Dall continued, “Our relationships with News America and Valassis
continue to be productive. Fourth quarter bookings are approximately
$5.8 million with three weeks left to sell. We continue to maintain
sales focus to help our Company be profitable in the fourth quarter and
complete a very successful year. While we do not expect to achieve the
high growth rate next year that we have seen in 2013, we will continue
to place resources on developing future products and strategies to
provide necessary diversification in our product offerings.”
Selected Financial Information
CFO John Gonsior stated, “Our balance sheet remains strong, with over
$21.4 million in working capital, versus $21.8 million at December 31,
2012. As of September 30, 2013, we had cash and cash equivalents
balances of $20.7 million, versus $20.3 million at December 31, 2012.
Gross profit has continued its positive trend, staying above 45% for
both the three and nine months ended September 30, 2013. Additionally,
given the large increase in sales, combined with fourth quarter
bookings, certain performance-based compensation accruals were triggered
in the third quarter, which increased our expenses.”
Conference Call
The Company will host a conference call today, October 30, at 4:00 p.m.
Central Time. To access the live call, dial 877-268-1608. The Conference
ID is 98094181. Please be sure to call in about 5-10 minutes before the
call is scheduled to begin. Audio replay will be available approximately
two hours after the call until November 6, 2013. To access the replay,
dial 855-859-2056 and reference Conference ID 98094181.
About Insignia System, Inc.
Insignia Systems, Inc. is a developer and marketer of in-store media
solutions, programs and services to retailers and consumer goods
manufacturers. Through its Point-Of-Purchase Services (POPS) business,
Insignia inspires shoppers and delivers value by providing at-shelf
advertising solutions in an available network of over 13,000 chain
retail supermarkets, over 1,700 mass merchants and 7,000 dollar stores.
Through the nationwide POPS network, over 200 major consumer goods
manufacturers, including General Mills, Kellogg Company, Hormel, Nestlé,
and Armour-Eckrich, have taken their brand messages to the
point-of-purchase. For additional information, contact (888) 474-7677,
or visit the Insignia website at www.insigniasystems.com.
Cautionary Statement for the Purpose of Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995
Statements in this press release or the subsequent conference call which
are not statements of historical or current facts are considered
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995, as
amended. The words “believes,” “expects,” “anticipates,” “seeks” and
similar expressions identify forward-looking statements. Readers are
cautioned not to place undue reliance on these or any forward-looking
statements, which speak only as of the date of this press release and
conference call. Statements made in this press release (or during the
conference call referred to herein) by the Company, its President and
CEO Glen Dall or its Vice President of Finance and CFO John Gonsior,
regarding, for instance: current expectations as to future financial
performance (including but not limited to bookings for the fourth fiscal
quarter of 2013 and results for fiscal year 2013); our ability to
continue revenue growth, cost improvements and to maintain
profitability; current sales trends with consumer packaged goods
manufacturers; the expected addition of retailers and the ability to
increase revenue; continued success in our business relationships with
News America and Valassis; our ability to develop and successfully
implement new products to diversify our business and to increase our
retailer access for these products, are forward-looking statements.
These forward-looking statements are based on current information, which
we have assessed and which by its nature is dynamic and subject to rapid
and even abrupt changes. As such, actual results may differ materially
from the results or performance expressed or implied by such
forward-looking statements. Forward-looking statements involve known and
unknown risks, uncertainties and other factors, including: (i) the risk
that management may be unable to fully or successfully implement its
business plan to achieve and maintain profitability in the future; (ii)
the risk that the Company will not be able to expand core product
offerings or to develop and implement new product offerings in a
successful manner, including our ability to gain retailer acceptance of
new product offerings; (iii) the unexpected loss of a major consumer
packaged goods manufacturer relationship or retailer agreement or
termination of our relationship with News America or Valassis; (iv)
prevailing market conditions in the in-store advertising industry,
including intense competition for agreements with retailers and consumer
packaged goods manufacturers and the effect of any delayed or cancelled
customer programs; (v) potentially incorrect assumptions by management
with respect to the financial effect of cost containment or reduction
initiatives, current strategic decisions, current sales trends for
fiscal year 2013; and (vi) other economic, business, market, financial,
competitive and/or regulatory factors affecting the Company’s business
generally, including those set forth in our Annual Report on Form
10-K for the year ended December 31, 2012 and additional risks, if any,
identified in our Quarterly Reports on Form 10-Q and our Current Reports
on Forms 8-K filed with the SEC. Such forward-looking statements should
be read in conjunction with the Company's filings with the SEC. The
Company assumes no responsibility to update the forward-looking
statements contained in this press release or the reasons why actual
results would differ from those anticipated in any such forward-looking
statement, other than as required by law.
Insignia Systems, Inc.
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STATEMENTS OF OPERATIONS
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(Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2013
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2012
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2013
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2012
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Net sales
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$
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7,320,000
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$
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6,074,000
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$
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20,849,000
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$
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14,844,000
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Cost of sales
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4,000,000
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3,514,000
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11,452,000
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9,890,000
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Gross profit
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3,320,000
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2,560,000
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9,397,000
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4,954,000
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Operating expenses:
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Selling
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1,586,000
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1,097,000
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4,138,000
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3,871,000
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Marketing
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220,000
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230,000
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649,000
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919,000
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General and administrative
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970,000
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757,000
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2,921,000
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2,656,000
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Operating income (loss)
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544,000
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476,000
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1,689,000
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(2,492,000
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)
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Other income, net
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6,000
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6,000
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20,000
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20,000
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Income (loss) before taxes
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550,000
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482,000
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1,709,000
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(2,472,000
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)
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Income tax expense (benefit)
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196,000
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102,000
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771,000
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(779,000
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)
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|
|
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|
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Net income (loss)
|
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$
|
354,000
|
|
$
|
380,000
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$
|
938,000
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$
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(1,693,000
|
)
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Net income (loss) per share:
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|
|
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|
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Basic
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$
|
0.03
|
|
$
|
0.03
|
|
$
|
0.07
|
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$
|
(0.12
|
)
|
Diluted
|
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$
|
0.03
|
|
$
|
0.03
|
|
$
|
0.07
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$
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(0.12
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)
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Shares used in calculation of net income (loss) per share:
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Basic
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13,230,000
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13,602,000
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13,515,000
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13,605,000
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Diluted
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13,370,000
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13,603,000
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13,581,000
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13,605,000
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SELECTED BALANCE SHEET DATA
|
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|
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(Unaudited)
|
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September 30,
|
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December 31,
|
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2013
|
|
2012
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
20,735,000
|
|
$
|
20,271,000
|
Working capital
|
|
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21,434,000
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21,791,000
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Total assets
|
|
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31,907,000
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31,706,000
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Total liabilities
|
|
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6,389,000
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5,211,000
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Shareholders' equity
|
|
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25,518,000
|
|
|
26,495,000
|
Copyright Business Wire 2013