TransAct Technologies Incorporated (Nasdaq:TACT) (“TransAct” or the
“Company”) today reported operating results for the second quarter ended
June 30, 2015, as summarized below:
|
Summary of 2015 Q2 Results
|
|
(In millions, except per share and percentage data)
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
Net sales
|
|
$
|
17.2
|
|
$
|
13.8
|
|
Gross profit
|
|
$
|
7.2
|
|
$
|
5.8
|
|
Gross margin
|
|
|
41.6%
|
|
|
41.9%
|
|
Operating income
|
|
$
|
2.2
|
|
$
|
0.3
|
|
EBITDA(1)(2)
|
|
$
|
2.6
|
|
$
|
0.7
|
|
Net income
|
|
$
|
1.4
|
|
$
|
0.2
|
|
Diluted earnings per share
|
|
$
|
0.18
|
|
$
|
0.02
|
|
|
|
|
|
|
|
Adjusted operating income(2)
|
|
$
|
2.2
|
|
$
|
0.4
|
|
Adjusted EBITDA(1)(2)
|
|
$
|
2.7
|
|
$
|
0.9
|
|
Adjusted net income(2)
|
|
$
|
1.4
|
|
$
|
0.2
|
|
Adjusted diluted earnings per share(2)
|
|
$
|
0.18
|
|
$
|
0.02
|
|
(1)
|
|
EBITDA is defined as net income before net interest expense, income
taxes, depreciation and amortization. A reconciliation of EBITDA to
net income, the most comparable Generally Accepted Accounting
Principles (“GAAP”) financial measure, can be found attached to this
release. Adjusted EBITDA is defined as net income before net
interest expense, income taxes, depreciation, amortization and
adjusted for share-based compensation and the impact of certain
legal fees and adjustments to accrued contingent consideration from
the Printrex acquisition as described later in this release. A
reconciliation of Adjusted EBITDA to net income, the most comparable
GAAP financial measure, can be found attached to this release.
|
|
(2)
|
|
Reconciliations of GAAP financial measures to corresponding non-GAAP
financial measures can be found attached to this release.
|
|
|
Bart Shuldman, Chairman and Chief Executive Officer of TransAct,
commented, “The strong second quarter results highlight the benefit of
our initiatives to diversify our product portfolio across multiple
global industries. Our success with these initiatives resulted in
significant year-over-year improvements in revenue, gross profit,
EBITDA, net income and diluted EPS in the second quarter. The 2015
second quarter results reflect significant growth in food safety
terminal sales, the second consecutive quarter of strong lottery printer
sales and solid worldwide market share growth in our casino and gaming
business. Our growth in these markets and continued focus on prudent
management of our costs drove a very good quarter for TransAct.
“Sales of our AccuDate 9700 food rotation terminal continue to gain
momentum as we are now generating consistent orders from a growing
number of restaurant and foodservice operators as they recognize the
savings this solution helps deliver by cutting food waste, reducing
labor costs and lowering the risk of food spoilage. Simultaneous with
the acceleration in market penetration for the AccuDate 9700, we are
also making very notable progress with the introduction of our AccuDate
Pro, a comprehensive back-of-the-house ‘restaurant assistant’ that has
opened up additional opportunities in the restaurant and foodservice
industry. We expect to generate initial sales of the AccuDate Pro in the
current quarter and importantly, as it gains acceptance in the
marketplace and becomes established as a unique system solution that
helps improve efficiency across multiple areas of a restaurant’s
operations, we expect it will begin to offer us new recurring revenue
opportunities.
“Reflecting the continued success of our Epic™ line of ticket-in,
ticket-out printers, we believe TransAct is garnering its highest ever
ship share in this sector. Our engineering and development team has
created industry-leading printers that are increasingly in demand from
casino and gaming operators due to their reliability and ease of use
while our sales and marketing organization continues to deliver the
highest level of customer service for our operators around the world. We
also expect to benefit in the second half of the year and into 2016 from
additional installations of our Epicentral® promotion and bonusing print
system.
“While ongoing challenges in the oil and gas drilling industry,
including a significant slowdown in active drilling sites, continue to
impact sales of our Printrex line of oil and gas exploration printers,
we remain focused on optimizing the profitability of this product line
and continue to benefit from recurring revenue from sales of consumables
for these products. We are also rolling out the Responder MP2 all-in-one
mobile printing solution for the machine-to-machine market and expect to
benefit from higher sales of this product in the second half of the
year.”
Mr. Shuldman concluded, “Through the first half of 2015 the
transformation in TransAct was evident as revenue rose nearly 22%,
driving 155% growth in Adjusted EBITDA to $5.2 million and a 350%
increase in adjusted net income compared to the same period last year.
We expect improved margins in the second half of the year as we
anticipate our sales mix to reflect a greater percentage of
higher-margin products that we recently introduced. With a successful
first half of the year in place, we remain focused on further sales
execution from our diversified portfolio of products over the balance of
2015 as we continue to make progress on our commitment that this year
‘It’s All About Sales.’”
Review of Balance Sheet and Capital Return Initiatives
As of June 30, 2015, TransAct had approximately $2.3 million of cash and
cash equivalents and no debt. The quarter-end cash position is inclusive
of the repayment of $2.5 million in borrowings under the Company’s
revolving credit facility, which had been drawn on in April 2015 to
partially fund a $3.6 million payment to Avery Dennison Corporation
pursuant to a settlement agreement that resolved a lawsuit between the
parties. During the 2015 second quarter, the Company paid a dividend to
shareholders of $0.08 per share and did not repurchase any shares of its
common stock in the period. Through its regular quarterly dividend and
the repurchase of common stock earlier in the year, TransAct has
returned more than $2.3 million to shareholders in the first half of
2015.
Steve DeMartino, President and Chief Financial Officer of TransAct,
commented, “We generated solid free cash flow in the second quarter of
2015 through a combination of higher sales and our successful
implementation of a cost reduction plan that is on pace to exceed the
targeted $1 million of annual savings. Our quarter-end cash position is
notable as during the quarter we continued to return capital to
shareholders through our regular quarterly dividend and completely
repaid $2.5 million in borrowings on our credit facility earlier than we
anticipated. Our ability to generate consistent free cash flow continues
to strengthen the foundation we have in place to support the rollout of
our diversified product portfolio to address high-growth global market
opportunities while consistently returning capital to shareholders.”
Summary of 2015 Second Quarter Operating Results
TransAct generated 2015 second quarter net sales of $17.2 million
compared with net sales of $13.8 million in the 2014 second quarter.
Casino and gaming revenue in the 2015 second quarter increased 18% to
$7.3 million compared to $6.1 million in the prior year period
reflecting the benefit of the installation of Epicentral at Resorts
World Casino in New York and a year-over-year increase in revenue from
international markets. Food safety, point-of-sale (POS) and banking
revenue increased $0.7 million to $3.4 million in the 2015 second
quarter as sales of food safety terminals increased 77% year over year
and by 20% on a quarterly sequential basis. Lottery printer sales for
the 2015 second quarter were $2.9 million, compared with $0.8 million in
the 2014 second quarter. Printrex® revenues were $0.2 million in the
2015 second quarter compared to $1.0 million in the year-ago quarter,
and the Company’s TransAct Services Group recorded net sales of $3.4
million compared to $3.1 million in the year-ago period on stronger
sales of spare parts.
Gross margin of 41.6% in the second quarter of 2015 compares to gross
margin of 41.9% in the year-ago quarter, and gross profit rose 24% year
over year to $7.2 million reflecting the 25% increase in sales.
Total operating expenses for the 2015 second quarter were $5.0 million
compared to $5.4 million in the year-ago quarter reflecting the
Company’s successful execution of its cost reduction initiative.
TransAct recorded operating income of $2.2 million, or 12.8% of net
sales, for the 2015 second quarter compared to $0.3 million, or 2.5% of
net sales, in the 2014 second quarter. Net income in the 2015 second
quarter was $1.4 million, or $0.18 per diluted share, compared to net
income of $0.2 million, or $0.02 per diluted share, in the prior-year
period.
2015 Second Quarter Conference Call and Webcast
TransAct is hosting a conference call and webcast today, August 4, 2015,
beginning at 4:30 p.m. ET. Both the call and the webcast are open to the
general public. The conference call number is 678-825-8259 (domestic or
international). Please call five minutes prior to the presentation to
ensure that you are connected.
Interested parties may also access the conference call live on the
Internet at www.transact-tech.com
(select “Investor Relations” followed by “Events & Presentations”).
Approximately two hours after the call has concluded, an archived
version of the webcast will be available for replay at the same location.
Non-GAAP Financial Measures
TransAct has provided adjusted non-GAAP financial measures because the
Company believes that these amounts are helpful to investors and others
to more accurately assess the ongoing nature of TransAct's core
operations. The adjusted non-GAAP measures exclude the effect in the
applicable periods presented of non-GAAP adjustments contained in the
tables included with this release. These items have been excluded from
adjusted non-GAAP financial measures as management does not believe that
they are representative of underlying trends in the Company's
performance. Their exclusion provides investors and others with
additional information to more readily assess the Company's operating
results. The Company uses the non-GAAP financial measures internally to
focus management on the results of the Company's core business. The
presentation of this additional non-GAAP information is not considered
superior to or a substitute for the financial information prepared in
accordance with GAAP.
Adjusted operating income is defined as operating income adjusted for
the impact of legal fees related to the lawsuit with Avery Dennison
Corporation and adjustments to accrued contingent consideration from the
Printrex acquisition.
Adjusted net income is defined as net income adjusted for the
tax-effected impact of legal fees related to the lawsuit with Avery
Dennison Corporation and adjustments to accrued contingent consideration
from the Printrex acquisition.
Adjusted diluted earnings per share is defined as adjusted net income
divided by diluted shares outstanding.
About TransAct Technologies Incorporated
TransAct Technologies Incorporated is a leader in developing and
manufacturing market-specific solutions, including printers, terminals,
software and other products for transaction-based and other industries.
These industries include casino and gaming, lottery, food safety,
banking, point-of-sale, hospitality, oil and gas, and medical and
mobile. TransAct printers and products are designed from the ground up
based on market-specific requirements and are sold under the AccuDate™,
Ithaca®, RESPONDER, Epic®, EPICENTRAL® and Printrex® product brands.
TransAct distributes its printers and terminals through OEMs,
value-added resellers, selected distributors, and direct to end-users.
TransAct has over 2.7 million printers and terminals installed around
the world. TransAct is also committed to providing world-class printer
service, spare parts, accessories and printing supplies to its growing
worldwide installed base of products. Through its TransAct Services
Group, TransAct provides a complete range of supplies and consumable
items used in the printing and scanning activities of customers in the
hospitality, banking, retail, gaming, government and oil and gas
exploration markets. Through its webstore, http://www.transactsupplies.com,
and a direct selling team, TransAct addresses the on-line demand for
these products. TransAct is headquartered in Hamden, CT. For more
information, please visit http://www.transact-tech.com
or call 203.859.6800.
Forward-Looking Statements
Certain statements in this press release include forward-looking
statements. Forward-looking statements generally can be identified by
the use of forward-looking terminology, such as "may," "will," "expect,"
"intend," "estimate," "anticipate," "believe" or "continue" or the
negative thereof or other similar words. All forward-looking statements
involve risks and uncertainties, including, but not limited to, customer
acceptance and market share gains, both domestically and
internationally, in the face of substantial competition from competitors
that have broader lines of products and greater financial resources; our
competitors introducing new products into the marketplace; our ability
to successfully develop new products; our dependence on significant
customers; our dependence on significant vendors; dependence on contract
manufacturers for the assembly of a large portion of our products in
Asia; our ability to protect intellectual property; our ability to
recruit and retain quality employees as the Company grows; our
dependence on third parties for sales outside the United States,
including Australia, New Zealand, Europe, Latin America and Asia; the
economic and political conditions in the United States, Australia, New
Zealand, Europe, Latin America and Asia; marketplace acceptance of new
products; risks associated with foreign operations; the availability of
third-party components at reasonable prices; price wars or other
significant pricing pressures affecting the Company's products in the
United States or abroad; risks associated with potential future
acquisitions; our new line of food safety and oil and gas products
driving increased adoption by customers; and other risk factors detailed
from time to time in TransAct's reports filed with the Securities and
Exchange Commission. Actual results may differ materially from those
discussed in, or implied by, the forward-looking statements. The
forward-looking statements speak only as of the date of this release and
the Company assumes no duty to update them to reflect new, changing or
unanticipated events or circumstances.
|
TRANSACT TECHNOLOGIES INCORPORATED
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
(In thousands, except per share amounts)
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net sales
|
|
$
|
17,224
|
|
|
$
|
13,804
|
|
|
$
|
33,388
|
|
|
$
|
27,423
|
|
|
Cost of sales
|
|
|
10,063
|
|
|
|
8,016
|
|
|
|
19,735
|
|
|
|
15,909
|
|
|
Gross profit
|
|
|
7,161
|
|
|
|
5,788
|
|
|
|
13,653
|
|
|
|
11,514
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
Engineering, design and product development
|
|
|
860
|
|
|
|
1,151
|
|
|
|
1,728
|
|
|
|
2,381
|
|
|
Selling and marketing
|
|
|
2,100
|
|
|
|
2,257
|
|
|
|
3,923
|
|
|
|
4,222
|
|
|
General and administrative
|
|
|
2,002
|
|
|
|
2,000
|
|
|
|
3,842
|
|
|
|
3,888
|
|
|
Legal fees and settlement expenses associated with lawsuit
|
|
|
(6
|
)
|
|
|
35
|
|
|
|
1,738
|
|
|
|
47
|
|
|
|
|
|
4,956
|
|
|
|
5,443
|
|
|
|
11,231
|
|
|
|
10,538
|
|
|
Operating income
|
|
|
2,205
|
|
|
|
345
|
|
|
|
2,422
|
|
|
|
976
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest, net
|
|
|
(10
|
)
|
|
|
(12
|
)
|
|
|
(16
|
)
|
|
|
(26
|
)
|
|
Other, net
|
|
|
(26
|
)
|
|
|
(12
|
)
|
|
|
(12
|
)
|
|
|
(20
|
)
|
|
|
|
|
(36
|
)
|
|
|
(24
|
)
|
|
|
(28
|
)
|
|
|
(46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
2,169
|
|
|
|
321
|
|
|
|
2,394
|
|
|
|
930
|
|
|
Income tax provision
|
|
|
781
|
|
|
|
146
|
|
|
|
862
|
|
|
|
361
|
|
|
Net income
|
|
$
|
1,388
|
|
|
$
|
175
|
|
|
$
|
1,532
|
|
|
$
|
569
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.18
|
|
|
$
|
0.02
|
|
|
$
|
0.20
|
|
|
$
|
0.07
|
|
|
Diluted
|
|
$
|
0.18
|
|
|
$
|
0.02
|
|
|
$
|
0.20
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in per share calculation:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
7,798
|
|
|
|
8,376
|
|
|
|
7,827
|
|
|
|
8,374
|
|
|
Diluted
|
|
|
7,819
|
|
|
|
8,520
|
|
|
|
7,847
|
|
|
|
8,538
|
|
|
|
|
SUPPLEMENTAL INFORMATION – SALES BY SALES UNIT:
|
|
|
|
|
|
Three months ended
|
|
|
Six months ended
|
|
|
|
June 30,
|
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
|
2015
|
|
2014
|
|
Food safety, point-of-sale and banking
|
|
$
|
3,427
|
|
$
|
2,747
|
|
|
$
|
5,649
|
|
$
|
4,516
|
|
Casino and gaming
|
|
|
7,257
|
|
|
6,124
|
|
|
|
12,838
|
|
|
12,666
|
|
Lottery
|
|
|
2,939
|
|
|
849
|
|
|
|
6,970
|
|
|
1,670
|
|
Printrex
|
|
|
220
|
|
|
996
|
|
|
|
927
|
|
|
1,970
|
|
TransAct Services Group
|
|
|
3,381
|
|
|
3,088
|
|
|
|
7,004
|
|
|
6,601
|
|
Total net sales
|
|
$
|
17,224
|
|
$
|
13,804
|
|
|
$
|
33,388
|
|
$
|
27,423
|
|
|
|
TRANSACT TECHNOLOGIES INCORPORATED
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
(In thousands)
|
|
2015
|
|
2014
|
|
Assets:
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
2,293
|
|
|
$
|
3,131
|
|
|
Accounts receivable, net
|
|
|
11,076
|
|
|
|
9,094
|
|
|
Inventories
|
|
|
10,967
|
|
|
|
11,806
|
|
|
Deferred tax assets
|
|
|
1,806
|
|
|
|
3,068
|
|
|
Other current assets
|
|
|
1,151
|
|
|
|
898
|
|
|
Total current assets
|
|
|
27,293
|
|
|
|
27,997
|
|
|
|
|
|
|
|
|
Fixed assets, net
|
|
|
2,368
|
|
|
|
2,438
|
|
|
Goodwill
|
|
|
2,621
|
|
|
|
2,621
|
|
|
Deferred tax assets
|
|
|
1,066
|
|
|
|
1,068
|
|
|
Intangible assets, net
|
|
|
1,083
|
|
|
|
1,341
|
|
|
Other assets
|
|
|
23
|
|
|
|
26
|
|
|
|
|
|
7,161
|
|
|
|
7,494
|
|
|
Total assets
|
|
$
|
34,454
|
|
|
$
|
35,491
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity:
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
6,235
|
|
|
$
|
2,365
|
|
|
Accrued liabilities
|
|
|
2,400
|
|
|
|
3,320
|
|
|
Income taxes payable
|
|
|
31
|
|
|
|
13
|
|
|
Accrued lawsuit settlement expenses
|
|
|
-
|
|
|
|
3,625
|
|
|
Deferred revenue
|
|
|
279
|
|
|
|
313
|
|
|
Total current liabilities
|
|
|
8,945
|
|
|
|
9,636
|
|
|
|
|
|
|
|
|
Deferred revenue, net of current portion
|
|
|
70
|
|
|
|
64
|
|
|
Deferred rent, net of current portion
|
|
|
133
|
|
|
|
172
|
|
|
Other liabilities
|
|
|
249
|
|
|
|
225
|
|
|
|
|
|
452
|
|
|
|
461
|
|
|
Total liabilities
|
|
|
9,397
|
|
|
|
10,097
|
|
|
|
|
|
|
|
|
Shareholders’ equity:
|
|
|
|
|
|
Common stock
|
|
|
111
|
|
|
|
111
|
|
|
Additional paid-in capital
|
|
|
28,557
|
|
|
|
28,167
|
|
|
Retained earnings
|
|
|
22,638
|
|
|
|
22,349
|
|
|
Accumulated other comprehensive loss, net of tax
|
|
|
(68
|
)
|
|
|
(72
|
)
|
|
Treasury stock, at cost
|
|
|
(26,181
|
)
|
|
|
(25,161
|
)
|
|
Total shareholders’ equity
|
|
|
25,057
|
|
|
|
25,394
|
|
|
Total liabilities and shareholders’ equity
|
|
$
|
34,454
|
|
|
$
|
35,491
|
|
|
|
|
TRANSACT TECHNOLOGIES INCORPORATED
|
|
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO
CORRESPONDING
|
|
NON-GAAP FINANCIAL MEASURES
|
|
(Unaudited, thousands of dollars, except percentages and per
share amounts)
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Reported
|
|
Adjustments(1)
|
|
Non-GAAP
|
|
Operating expenses
|
|
$
|
4,956
|
|
|
$
|
6
|
|
|
$
|
4,962
|
|
|
% of net sales
|
|
|
28.8
|
%
|
|
|
|
|
28.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
2,205
|
|
|
|
(6
|
)
|
|
|
2,199
|
|
|
% of net sales
|
|
|
12.8
|
%
|
|
|
|
|
12.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
2,169
|
|
|
|
(6
|
)
|
|
|
2,163
|
|
|
Income tax provision
|
|
|
781
|
|
|
|
(2
|
)
|
|
|
779
|
|
|
Net income
|
|
|
1,388
|
|
|
|
(4
|
)
|
|
|
1,384
|
|
|
Diluted net income per share
|
|
$
|
0.18
|
|
|
$
|
0.00
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
(1)
|
Adjustments include a reversal of $25 of accrued settlement
expenses partially offset by
$19 of legal and other expenses
related to the lawsuit with Avery Dennison Corporation.
Such
adjustments were tax effected using an effective tax rate of 36.0%.
|
|
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
|
|
June 30, 2014
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Reported
|
|
Adjustments(2)
|
|
Non-GAAP
|
|
Operating expenses
|
|
$
|
5,443
|
|
|
|
($15
|
)
|
|
$
|
5,428
|
|
|
% of net sales
|
|
|
39.4
|
%
|
|
|
|
|
39.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
345
|
|
|
|
15
|
|
|
|
360
|
|
|
% of net sales
|
|
|
2.5
|
%
|
|
|
|
|
2.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
321
|
|
|
|
15
|
|
|
|
336
|
|
|
Income tax provision
|
|
|
146
|
|
|
|
5
|
|
|
|
151
|
|
|
Net income
|
|
|
175
|
|
|
|
10
|
|
|
|
185
|
|
|
Diluted net income per share
|
|
$
|
0.02
|
|
|
$
|
0.00
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
(2)
|
Adjustments include (i) $20 of income related to an adjustment to
accrued contingent
consideration from the Printrex
acquisition and (ii) $35 of legal and other expenses related
to
the lawsuit with Avery Dennison Corporation. Such adjustments
were tax effected
using an effective tax rate of 34.0%.
|
|
|
|
TRANSACT TECHNOLOGIES INCORPORATED
|
|
RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO
CORRESPONDING
|
|
NON-GAAP FINANCIAL MEASURES
|
|
(Unaudited, thousands of dollars, except percentages and per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
|
|
|
June 30, 2015
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Reported
|
|
Adjustments(3)
|
|
Non-GAAP
|
|
Operating expenses
|
|
$
|
11,231
|
|
|
$
|
(1,738
|
)
|
|
$
|
9,493
|
|
|
% of net sales
|
|
|
33.6
|
%
|
|
|
|
|
28.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
2,422
|
|
|
|
1,738
|
|
|
|
4,160
|
|
|
% of net sales
|
|
|
7.3
|
%
|
|
|
|
|
12.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
2,394
|
|
|
|
1,738
|
|
|
|
4,132
|
|
|
Income tax provision
|
|
|
862
|
|
|
|
626
|
|
|
|
1,488
|
|
|
Net income
|
|
|
1,532
|
|
|
|
1,112
|
|
|
|
2,644
|
|
|
Diluted net income per share
|
|
$
|
0.20
|
|
|
$
|
0.14
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
(3)
|
Adjustments include $1,763 of legal and other expenses partially
offset by a $25 reversal
of accrued settlement expenses
related to the lawsuit with Avery Dennison Corporation.
Such
adjustments were tax effected using an effective tax rate of 36.0%.
|
|
|
|
|
|
|
|
|
|
Six months ended
|
|
|
|
|
|
June 30, 2014
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
|
|
|
|
Reported
|
|
Adjustments(4)
|
|
Non-GAAP
|
|
Operating expenses
|
|
$
|
10,538
|
|
|
$
|
(27
|
)
|
|
$
|
10,511
|
|
|
% of net sales
|
|
|
38.4
|
%
|
|
|
|
|
38.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
976
|
|
|
|
27
|
|
|
|
1,003
|
|
|
% of net sales
|
|
|
3.6
|
%
|
|
|
|
|
3.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
930
|
|
|
|
27
|
|
|
|
957
|
|
|
Income tax provision
|
|
|
361
|
|
|
|
9
|
|
|
|
370
|
|
|
Net income
|
|
|
569
|
|
|
|
18
|
|
|
|
587
|
|
|
Diluted net income per share
|
|
$
|
0.07
|
|
|
$
|
0.00
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
(4)
|
Adjustments include (i) $20 of income related to an adjustment to
accrued contingent
consideration from the Printrex
acquisition and (ii) $47 of legal and other expenses related
to
the lawsuit with Avery Dennison Corporation. Such adjustments
were tax effected
using an effective tax rate of 34.0%.
|
|
|
|
TRANSACT TECHNOLOGIES INCORPORATED
|
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
|
|
NON-GAAP FINANCIAL MEASURES
|
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
(In thousands)
|
|
June 30,
|
|
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Net income
|
|
$
|
1,388
|
|
|
$
|
175
|
|
|
$
|
1,532
|
|
|
$
|
569
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income) expense, net
|
|
|
10
|
|
|
|
12
|
|
|
|
16
|
|
|
|
26
|
|
|
Income tax provision
|
|
|
781
|
|
|
|
146
|
|
|
|
862
|
|
|
|
361
|
|
|
Depreciation and amortization
|
|
|
373
|
|
|
|
367
|
|
|
|
734
|
|
|
|
727
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
2,552
|
|
|
|
700
|
|
|
|
3,144
|
|
|
|
1,683
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation expense
|
|
|
127
|
|
|
|
164
|
|
|
|
269
|
|
|
|
309
|
|
|
Legal fees and settlement expenses associated with lawsuit
|
|
|
(6
|
)
|
|
|
35
|
|
|
|
1,738
|
|
|
|
47
|
|
|
Adjustment to accrued contingent consideration
|
|
|
-
|
|
|
|
(20
|
)
|
|
|
-
|
|
|
|
(20
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
$
|
2,673
|
|
|
$
|
879
|
|
|
$
|
5,151
|
|
|
$
|
2,019
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150804006585/en/
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