Company: Adeptron Technologies Corporation
Stock Symbol: ATQ
Listing: Toronto Stock Exchange (TSX)
Web Site: www.adeptron.com
TORONTO, May 14 /CNW/ - 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 2009 unaudited first quarter financial results for the three-month
period ended March 31, 2009.
Q1 2009 Financial Highlights:
- Sales of approximately $12.6 million showed an increase of
approximately $2.8 million, or 29%, over the first quarter of 2008
- Gross margin improved to 13.3% compared to 12.9% for the same period
- Net income of approximately $50,000 compared to a net loss of
approximately $0.6 million for the same period last year
- EBITDA of approximately $0.7 million compared to EBITDA of
approximately $71,000 for the same period last year
- Earnings of $0.00 per share compared to a loss of $0.02 per share for
the same period last year
Despite the global economic recession, Adeptron sales increased 29% to
over $12.6 million in the first quarter of 2009 compared to the same period in
2008," said F. Michael Marti, President & CEO of Adeptron. "Adeptron's largest
customers are focused on products in the industrial, commercial and
educational infrastructure segments and generally have not been overly
affected by the economic slow down. This, coupled with the addition of new
customer wins, contributed to our first quarter of 2009 sales approaching very
closely the amount of sales recorded in the fourth quarter of last year. The
fourth quarter typically is our strongest."
Marti continued, "In the first quarter of 2009 we invested in improving
our systems and processes and also expanded our sales development initiatives.
These expenditures had a short-term negative impact on earnings. Such programs
positioned Adeptron to gain new and profitable business. Our investment in the
recruiting of an expanded professional sales force has developed prospects for
Adeptron in various segments including aerospace, lab automation robotics and
medical. Adeptron expects to announce new customer relationships later in the
second and third quarters of 2009."
"Our key objective in 2009 is to win new business with strategic
customers with whom we can partner and that we can serve for years to come,"
For the three months ended March 31, 2009 ("Q1 2009"), Adeptron reported
a 29% increase in revenues to approximately $12.6 million compared to the same
period in 2008.
Gross profit for Q1 2009 increased approximately $0.4 million, or 32%, to
approximately $1.7 million compared with the same period in 2008. Gross profit
as a percentage of sales for Q1 2009 was 13.3% compared to 12.9% for the same
period in 2008. The increase in gross profit in Q1 2009 in comparison to the
same period in 2008 is largely due to increased sales and changes in the mix
of customers, products, and turnkey versus consignment production.
Selling, general and administrative expenses showed a marginal increase
of 2.7% to less than $1.3 million, or 10% of sales, in Q1 2009 compared to the
same period in 2008 when these expenses were 12.5% of sales.
Net income for Q1 2009 was approximately $50,000 (earnings per share of
$0.00) compared to a net loss of approximately $0.6 million (loss per share of
$0.02) for the same period of 2008. Q1 2009 net income was negatively impacted
by a charge of $144,000 related to severance costs and a $91,000 charge for
changes in the fair values of embedded foreign currency derivatives.
EBITDA(1) increased by approximately $0.6 million to approximately
$656,000 during Q1 2009 compared with the same period in 2008.
Working capital, defined as current assets less current liabilities, as
at March 31, 2009, was approximately $4.3 million compared to working capital
of approximately $3.9 million as at December 31, 2008, representing an
increase of $0.4 million. This increase in working capital is primarily
explained by the increased sales, improved margins and improved EBITDA.
Based on information available to management at this time, the Company
expects sales in the second quarter of 2009 to be similar to the first quarter
of 2009 and to show a significant increase compared to the second quarter of
2008 despite the current severe recession.
Annual General Meeting Information
The Annual General Meeting of Shareholders of the Company is scheduled to
be held on Wednesday June 17, 2009 at 11:00 a.m. at the offices of Fogler,
Rubinoff LLP at the 12th Floor, 95 Wellington Street West, Toronto, Ontario.
Q1-2009 - Financial Summary
Selected comparative financial information for the three-month periods
ended March 31, 2009 and 2008 is shown below. (All numbers below expressed in
thousands, except per share information and gross margin percentages):
Income Statement 3-Month Period 3-Month Period
March 31, 2009 March 31, 2008
Sales $12,635 $9,819
Gross Profit $1,680 $1,268
Gross Profit % 13.3% 12.9%
Net Income (loss) $50 ($616)
EBITDA(1) $656 $71
Net Income (loss) per share-basic & diluted $0.00 ($0.02)
Weighted average number of shares
outstanding - diluted 98,216 36,707
EBITDA(1) reconciliations to GAAP Net Income/(Loss) for the three-month
periods ended March 31, 2009 and 2008 are shown below. (All numbers below
expressed in thousands):
3-Month Period 3-Month Period
March 31, 2009 March 31, 2008
Net income (loss) per GAAP $50 ($616)
Interest expense 246 387
Income tax recovery (58) -
Depreciation and amortization 373 296
Stock-based compensation 45 4
EBITDA(1) $656 $71
EBITDA(1) Earnings before interest, taxes, depreciation, amortization,
goodwill impairment, loss on settlement of subordinated debenture, and
Adeptron's unaudited 2009 first quarter financial statements and MD&A
will be available on Adeptron's web site on May 15, 2009 at www.adeptron.com
and the System for Electronic Document Analysis and Retrieval ("SEDAR") at
Adeptron delivers product solutions and support for the complete product
life cycle to the global electronics and related technologies industries.
These solutions and support include design, prototyping, supply chain
management, manufacturing, assembly, testing, product assurance, distribution
and after-sales service. Adeptron, as part of an affiliated group of companies
in the Electronics Manufacturing Services (EMS) sector, having annual global
revenues of approximately $210 million, provides manufacturing services from
six facilities worldwide including Markham and Ottawa in Ontario, San Jose and
Livermore in California, Israel and through its partner in China. 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". Visit Adeptron at:
www.adeptron.com or www.investorfile.com.
THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION
RELATING TO SUCH MATTERS AS EXPECTED FINANCIAL PERFORMANCE, BUSINESS
PROSPECTS, TECHNOLOGICAL DEVELOPMENTS, DEVELOPMENT ACTIVITIES AND LIKE
MATTERS. THESE STATEMENTS INVOLVE RISK AND UNCERTAINTIES, INCLUDING BUT NOT
LIMITED TO RISK FACTORS DESCRIBED IN DOCUMENTS FILED WITH REGULATORY
AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY
REPORTS AND ANNUAL INFORMATION FORM. ACTUAL RESULTS COULD DIFFER MATERIALLY
FROM THOSE PROJECTED AS A RESULT OF THESE RISKS AND SHOULD NOT BE RELIED UPON
AS A PREDICTION OF FUTURE EVENTS. ADEPTRON TECHNOLOGIES CORPORATION UNDERTAKES
NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR
CIRCUMSTANCES AFTER THE DATE ON WHICH SUCH STATEMENT IS MADE, OR TO REFLECT
THE OCCURRENCE OF UNANTICIPATED EVENTS.
For further information:
For further information: Adeptron Company Contact: F. Michael Marti,
President & Chief Executive Officer, Tel: (416) 705-6534,
firstname.lastname@example.org; Adeptron Company Contact: Francis K. Lindayen, Chief
Financial Officer, Tel: (905) 470-0109 x2223, email@example.com; Adeptron
Investor Relations: Gerry Wimmer, INVESTORFILE.com, Tel: (416) 360-8895, Toll
Free: 1-888-894-8222, Gwimmer@investorfile.com