Evans & Sutherland Computer Corporation (E&S) (OTCPK: ESCC)
today reported financial results in its Form 10-Q filing for the first
quarter ended April 3, 2015.
Sales for the first quarter of 2015 were $8.0 million, compared to sales
of $6.7 million for the first quarter 2014. Net income for the quarter
was $0.1 million or $0.01 per share compared to a net loss for the first
quarter 2014 of $0.6 million or $0.05 per share. Sales backlog as of
April 3, 2015 was $34.3 million compared to $28.2 million as of December
31, 2014. Operating expenses for the quarter totaled $2.8 million
compared to $2.5 million for the first quarter of 2014.
Comments from David H. Bateman, President and Chief Executive
Officer: “On April 21, 2015 the Company executed an agreement with
the Pension Benefit Guaranty Corporation (PBGC) to terminate its pension
plan and settle the underlying pension liabilities. This is a major
milestone and completes a process that began over two years ago. The
Company’s goal in seeking a distress termination of the pension plan is
to ensure that pension benefits of all pension plan participants are
paid up to the federally guaranteed limits and that the Company
continues to operate as a going concern while avoiding the costly damage
and disruption to the business which would result from bankruptcy
reorganization. We believe the settlement agreement has achieved that
goal.
"The first quarter of 2015 reported improved sales volume and $0.1
million net income compared to the first quarter of 2014 which reported
a net loss of $0.6 million. The stronger sales and resulting net income
in the first quarter of 2015 was attributable to stronger sales bookings
over the past year. The sales backlog improved, which creates an
encouraging outlook for the remainder of 2015. With the improved backlog
and strong sales prospects, we anticipate that sales and overall results
for the remainder of 2015 will exceed the results from 2014.
"We continue to expect variable but reasonable consistent future sales
and gross profits from our current product lines at annual levels
sufficient to cover or exceed operating expenses. With the settlement of
the Pension Plan liabilities, we expect an improved financial position
that may present opportunities for better results through the
availability of credit and stronger qualification for customer projects.
We remain positive for the success of the business.”
Statements in this press release which are not historical, including
statements regarding E&S’ or management’s intentions, hopes, beliefs,
expectations, representations, projections, plans, or predictions of the
future are forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The Company assumes no
obligation except as required by law to update the forward-looking
statements contained in this press release as a result of new
information or future events or developments. You can identify these
statements by the fact that they use words such as “anticipate,”
“estimate,” “expect,” “project,” “intend,” “should,” “plan,” “goal,”
“believe,” “confident” and other words and terms of similar meaning in
connection with any discussion of future operating or financial
performance together with the negative of such expressions. Among the
factors that could cause actual results to differ materially are the
following: the Company’s ability to successfully market both new and
existing products domestically and internationally; difficulties or
delays in manufacturing; results of the Board's evaluation of
alternatives available to enhance value for shareholders; and market and
general economic conditions. A further list and description of these
risks, uncertainties and other matters can be found in the Company’s
reports filed with the Securities and Exchange Commission.
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
INFORMATION
|
(In thousands, except share and per share data)
|
(Unaudited)
|
|
|
|
|
Three Month Ended
|
|
|
|
|
April 3, 2015
|
|
|
|
March 28, 2014
|
|
|
|
|
|
|
|
|
|
Sales
|
|
|
|
$
|
8,002
|
|
|
|
|
$
|
6,672
|
|
Cost of sales
|
|
|
|
|
(5,011
|
)
|
|
|
|
|
(4,528
|
)
|
Gross profit
|
|
|
|
|
2,991
|
|
|
|
|
|
2,144
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
|
|
|
(1,842
|
)
|
|
|
|
|
(1,748
|
)
|
Research and development
|
|
|
|
|
(595
|
)
|
|
|
|
|
(560
|
)
|
Pension
|
|
|
|
|
(375
|
)
|
|
|
|
|
(209
|
)
|
Total operating expenses
|
|
|
|
|
(2,812
|
)
|
|
|
|
|
(2,517
|
)
|
Operating loss
|
|
|
|
|
179
|
|
|
|
|
|
(373
|
)
|
Other expense, net
|
|
|
|
|
(25
|
)
|
|
|
|
|
(169
|
)
|
Loss before income tax provision
|
|
|
|
|
154
|
|
|
|
|
|
(542
|
)
|
Income tax provision
|
|
|
|
|
(51
|
)
|
|
|
|
|
(9
|
)
|
Net income (loss)
|
|
|
|
$
|
103
|
|
|
|
|
$
|
(551
|
)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share - basic and diluted
|
|
|
|
$
|
0.01
|
|
|
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
Comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
|
$
|
103
|
|
|
|
|
$
|
(551
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
Reclassification of pension expense to net loss
|
|
|
|
|
195
|
|
|
|
|
|
102
|
|
Other comprehensive income
|
|
|
|
|
195
|
|
|
|
|
|
102
|
|
Total comprehensive loss
|
|
|
|
$
|
298
|
|
|
|
|
$
|
(449
|
)
|
|
|
|
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
|
(In thousands)
|
(Unaudited)
|
|
|
|
|
April 3, 2015
|
|
|
|
December 31, 2014
|
Assets
|
|
|
|
|
|
|
|
|
Cash and restricted cash
|
|
|
|
$
|
5,042
|
|
|
|
|
$
|
7,749
|
|
Net receivables, billed and unbilled
|
|
|
|
|
8,361
|
|
|
|
|
|
6,285
|
|
Inventories, net
|
|
|
|
|
5,838
|
|
|
|
|
|
4,163
|
|
Prepaid expenses and deposits
|
|
|
|
|
983
|
|
|
|
|
|
635
|
|
Property, plant and equipment, net
|
|
|
|
|
4,756
|
|
|
|
|
|
4,803
|
|
Intangibles and other assets
|
|
|
|
|
1,762
|
|
|
|
|
|
1,821
|
|
Total assets
|
|
|
|
$
|
26,742
|
|
|
|
|
$
|
25,456
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' deficit
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
$
|
2,207
|
|
|
|
|
$
|
1,852
|
|
Customer advances and deposits
|
|
|
|
|
9,997
|
|
|
|
|
|
9,257
|
|
Pension and retirement obligations
|
|
|
|
|
40,664
|
|
|
|
|
|
40,611
|
|
Debt obligations
|
|
|
|
|
2,300
|
|
|
|
|
|
2,362
|
|
Other liabilities
|
|
|
|
|
1,970
|
|
|
|
|
|
2,077
|
|
Stockholders' deficit
|
|
|
|
|
(30,396
|
)
|
|
|
|
|
(30,703
|
)
|
Total liabilities and stockholders' deficit
|
|
|
|
$
|
26,742
|
|
|
|
|
$
|
25,456
|
|
|
|
|
|
|
|
|
|
|
BACKLOG
|
(In thousands)
|
Unaudited
|
|
|
|
|
April 3, 2015
|
|
|
|
December 31, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
34,324
|
|
|
|
|
$
|
28,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E&S is a registered trademark of Evans & Sutherland Computer Corporation.
Copyright Business Wire 2015