Close

API Technologies Reports Results for the Fiscal First Quarter Ended February 28, 2015

April 8, 2015 4:01 PM EDT

ORLANDO, Fla., April 8, 2015 /PRNewswire/ -- API Technologies Corp. (NASDAQ: ATNY) ("API" or the "Company"), a leading provider of high performance RF, microwave, millimeterwave, power, and security solutions, today announced results for the fiscal first quarter ended February 28, 2015.

Financial Results for the Quarter Ended February 28, 2015

API Technologies reported fiscal first quarter revenue of $50.9 million.

For the fiscal first quarter of 2015, GAAP gross margin as a percentage of sales was 25.5%; non-GAAP gross margin was 26.6%.

The Company posted a net loss of $2.2 million for the fiscal first quarter. Adjusted EBITDA for the fiscal first quarter was $6.0 million or 11.9% of revenue.  

Recent Developments

  • Robert Tavares was named President and Chief Executive Officer and appointed to the Company's Board of Directors effective March 2, 2015. Mr. Tavares joins API with 30 years of experience in the microelectronics and semiconductor industries; he most recently served as President of Crane Electronics Inc.
  • On March 23, 2015, API announced an expanded agreement with electronic components distributor TTI, Inc. to carry the Company's line of RF, microwave, and microelectronics products; the partnership broadens API's worldwide sales network and provides customers rapid product delivery.

First Quarter 2015 Business Highlights

  • API added to its line of radiation-hardened power microelectronics with the launch of voltage regulators and a new line of Solid State Relays for satellites and launch vehicles.
  • API's QBS-609 1-kW pulsed power amplifier received "Product of the Year" honors from Electronic Products, a leading trade publication for electronic design engineers.
  • API expanded its product presence in the AESA radar market with the launch of standalone modules – the Quad Transmit Receive Module (QTRM) – part of the Company's Active Antenna Array Unit (AAAU) solution.
  • API received a new patent for the Hawk-i™, the Company's aiming device for a bomb disarming disrupter.
  • API expanded its U.S. Department of Defense C4ISR technology footprint with the announcement of $10.3 million in related program awards.

About API Technologies Corp.

API Technologies (NASDAQ: ATNY) is an innovative designer and manufacturer of high performance systems, subsystems, modules, and components for technically demanding RF, microwave, millimeterwave, electromagnetic, power, and security applications.  A high-reliability technology pioneer with over 70 years of heritage, API Technologies products are used by global defense, industrial, and commercial customers  in the areas of commercial aerospace, wireless communications, medical, oil and gas, electronic warfare, unmanned systems, C4ISR, missile defense, harsh environments, satellites, and space. Learn more about API Technologies and our products at www.apitech.com.

Non-GAAP Financial Information

In this press release, API has provided the non-GAAP financial measures for Adjusted EBITDA at the Company level and segment level, and non-GAAP gross margin. Non-GAAP gross margin excludes restructuring charges and certain other adjustments described in the reconciliation table and non-GAAP Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) excludes restructuring charges, acquisition and divestiture-related charges, inventory provisions, stock-based compensation expenses, amortization of note discounts and deferred financing costs, and certain other adjustments described in the reconciliation table. API has also provided the non-GAAP financial measure for Adjusted EBITDA before corporate overhead, which is the Adjusted EBITDA number less general corporate overhead. Management believes the supplemental non-GAAP presentations provide investors an additional analytical tool for understanding the Company's financial performance by excluding from operating results the impact of items that management believes do not reflect the Company's core operating performance. These are not recognized measures under US GAAP, do not have a standardized meaning, and are unlikely to be comparable to similar measures used by other companies. Accordingly, investors are cautioned that these non-GAAP measures should not be construed as an alternative to net earnings or loss or gross margin determined in accordance with GAAP as an indicator of the financial performance of the Company or as a measure of the Company's liquidity and cash flows. We expect our financial statements to continue to be affected by items similar to those excluded in the non-GAAP adjustments described above, and exclusion of these items from our non-GAAP financial measures should not be construed as an inference that all such costs are unusual or infrequent.

Safe Harbor for Forward-Looking Statements Except for statements of historical fact, the information presented herein constitutes forward-looking statements. All forward-looking statements are subject to certain risks, uncertainties and assumptions which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include but are not limited to, general economic and business conditions, including without limitation, reductions in government defense spending; government regulations; our ability to integrate and consolidate our operations; our ability to expand our operations in both new and existing markets; and the ability of our review of strategic alternatives to maximize stockholder value. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results may vary in material aspects from those currently anticipated. The forward-looking statements in this news release should be read in conjunction with the more detailed descriptions of the above factors located in our Annual Report on Form 10-K under Part I, Item 1A "Risk Factors" as well as those additional factors we may describe from time to time in other filings with the Securities and Exchange Commission. All information in this release is as of the date hereof. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. Except as required by law, the Company assumes no obligation to update or revise any forward-looking statements in this press release, whether as a result of new information, future events, or otherwise.

Contact:

Claudio MannarinoSenior Vice President and Chief Financial Officer+1 855-294-3800[email protected]

Tara Flynn Condon Vice President, Corporate Development & Marketing +1 908-546-3903 [email protected]

 

API Technologies Corp.

Financial Results

For the Three Months Ended February 28, 2015 and 2014

Consolidated Statements of Operations (unaudited)

in thousands USD

February 28,2015

February 28,2014

Revenue, net

$             50,850

$             58,918

Cost of revenues

Cost of revenues

37,859

45,274

Restructuring charges

42

299

Total cost of revenues

37,901

45,573

Gross profit

12,949

13,345

Operating expenses

General and administrative

5,279

5,719

Selling expenses

3,655

3,757

Research and development

2,000

2,074

Business acquisition and related charges

62

110

Restructuring charges

830

118

11,826

11,778

Operating income

1,123

1,567

Other expenses (income), net

Interest expense, net

3,127

2,410

Amortization of note discounts and deferred financing costs

23

665

Other expenses (income), net

(120 )

110

3,030

3,185

Loss before income taxes

(1,907 )

(1,618 )

Expense for income taxes

272

506

Net loss

$          (2,179)

$          (2,124)

Accretion on preferred stock

(393)

Net loss attributable to common shareholders

$          (2,179)

$          (2,517)

Net loss per share—Basic and diluted

$                (0.04 )

$                (0.05 )

Weighted average shares outstanding

  Basic

55,461,217

55,426,635

  Diluted

55,461,217

55,426,635

 

Consolidated Balance Sheets (unaudited)

in thousands USD

February 28,

2015

November 30,

2014

Assets

Current

Cash and cash equivalents     

$

6,199

$

8,258

Accounts receivable, net        

35,955

38,657

Inventories, net        

58,231

54,718

Deferred income taxes            

539

561

Prepaid expenses and other current assets          

1,535

1,592

102,459

103,786

Fixed assets, net

29,524

30, 574

Goodwill

116,770

116,770

Intangible assets, net

28,071

29,848

Other non-current assets

1,911

1,862

 Total assets

$

278,735

$

282,840

Liabilities and Shareholders' Equity

Current

Accounts payable and accrued expenses            

$

28,635

$

27,907

Deferred revenue      

2,407

2,279

Current portion of long-term debt        

10,916

10,097

41,958

40,283

Deferred income taxes

4,651

4,575

Other long-term liabilities

1,386

1,216

Long-term debt, net of current portion

114,865

118,214

Deferred gain

7,639

7,788

170,499

172,076

Commitments and contingencies

Shareholders' equity

Common stock         

55

55

Special voting stock               

Additional paid-in capital     

327,925

327,846

Common stock subscribed but not issued          

2,373

2,373

Accumulated deficit

(222,284)

(220,105)

          Accumulated other comprehensive income        

167

595

108,236

110,764

Total Liabilities and Shareholders' Equity

$

278,735

$

282,840

 

Consolidated Adjusted EBITDA

in thousands USD

The following table reconciles three months GAAP net loss to non-GAAP Adjusted EBITDA and Adjusted EBITDA less corporate overhead.

Three (3)months endedFebruary 28,2015

Net loss

$

(2,179)

Adjustments

    Interest expense, net      

3,127

Amortization of note discounts and deferredfinancing costs

23

    Depreciation and amortization

3,459

    Income taxes   

272

    Restructuring charges    

872

    Acquisition related charges

62

    Other adjustments (A)                                               

411

Total Adjusted EBITDA

$

6,047

Total Adjusted EBITDA percentage

11.9%

Corporate overhead           

$

1,416

Adjusted EBITDA before corporate overhead              

$

7,463

Adjusted EBITDA less corporate overhead %              

14.7%

(A) Other adjustments primarily include inventory provisions, stock based compensation, franchise taxes, financing and other adjustments, lease payments for the State College, Pennsylvania facility and foreign exchange losses.

 

Additional Adjusted EBITDA Reconciliations by Segment in thousands USD

Three Months Ending

February 28, 2015

SSC

SSIA

 EMS

 Corporate

 Total

Q1

Q1

Q1

Q1

Q1

Revenue

$   38,386

$    4,258

$   8,206

$             -

$   50,850

Net loss

(2,179)

Adjustments

  Interest expense, net

3,127

 

  Amortization of note discounts and deferred financing costs

23

  Depreciation and amortization

3,459

  Income taxes

272

  Restructuring charges

872

  Acquisition related charges

62

  Other adjustments (A)

411

Add-Back Total

8,226

Adjusted EBITDA

$     5,242

$     755

$         50

$              -

$     6,047

Adjusted EBITDA Margin %

13.7%

17.7%

0.6%

0.0%

11.9%

(A) Other adjustments primarily include inventory provisions, stock based compensation, franchise taxes, financing & other adjustments, lease payments for the State College, Pennsylvania facility and foreign exchange losses.

 

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin

$ amounts in thousands USD

Three Months Ended

February 28, 2015

                    Revenue

$      50,850

                    Gross Profit

12,949

                    GAAP Gross Margin %

25.5%

                    Restructuring and other adjustments (A)

573

                    Adjusted Gross profit

13,522

                    Adjusted Gross margin %

26.6%

(A) Other adjustments primarily include inventory provisions.

 

Logo - http://photos.prnewswire.com/prnh/20110629/NY28451LOGO

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/api-technologies-reports-results-for-the-fiscal-first-quarter-ended-february-28-2015-300062801.html

SOURCE API Technologies Corp.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Press Releases

Related Entities

Earnings, Definitive Agreement