DFW AIRPORT, Texas--(BUSINESS WIRE)--American Locker Group Incorporated (OTCQB: ALGI), a recognized leader in secure storage solutions, today reported its second quarter results for the period ended June 30, 2013. American Locker reported second quarter net sales of $4.09 million and a net loss of $262,984 or $0.16 per share.
|Results for the three months ended June 30,|
|2013||2012||2013 vs. 2012|
|Net sales||$4.09 million||$3.13 million||30.5%|
|Earnings per share||$(0.16)||$(0.09)|
|Results for the six months ended June 30,|
|2013||2012||2013 vs. 2012|
|Net sales||$7.24 million||$6.40 million||13.2%|
|Net loss||$(1.28 million)||$(229,822)|
|Earnings per share||$(0.76)||$(0.14)|
Net sales for the second quarter were up approximately $957,000, or 30.5%, from $3.13 million in 2012 to $4.09 million in 2013. Net sales for the first six months of 2013 were $7.24 million, an increase of approximately $844,000, or 13.2%, as compared to sales of $6.40 million for the same period of 2012. The increase in sales in 2013 has primarily resulted from increased mailbox and contract manufacturing sales. Mailbox and contract manufacturing sales in the second quarter of 2013 increased 70.0% and 95.3%, respectively, over the second quarter of 2012. In the first six months of 2013, mailbox and contract manufacturing sales increased 73.6% and 54.0%, respectively, over the same period of 2012.
The Company reported a net loss of $262,984 in the second quarter of 2013 as compared to a net loss of $144,604 in the second quarter of 2012. Contributing to the increased net loss were increased legal fees of approximately $111,000 incurred in the second quarter of 2013 in connection with legal settlements executed by the Company and increased general expenses of approximately $102,000 recorded in the second quarter of 2013 for costs reimbursed to a customer to resolve a quality issue stemming from product sales to the customer in 2012.
"We are very pleased with the revenue growth in the quarter and our efforts to remedy previous quality and legal issues," said Anthony Johnston, Chairman and CEO. "Our focus for the remainder of the year will be to improve profitability while we continue to aggressively increase revenue, specifically in the contract manufacturing area of our business."
Sale of Ellicottville, NY Property
The Company also reported today that, on August 8, 2013, the Company closed the sale of its Ellicottville, New York property, which included land and buildings. Proceeds of $212,500 were received from the sale of this property, which concluded the Ellicottville relocation that had commenced in 2012.
Use of Non-GAAP Financial Measure: Adjusted EBITDA
To provide investors with additional information regarding the Company’s financial results, this press release presents Adjusted EBITDA, a non-GAAP financial measure. The Company has provided below a reconciliation of net loss to adjusted EBITDA, the most directly comparable GAAP financial measure.
Adjusted EBITDA is a key metric used by the Company’s management to monitor and evaluate the performance of the business and believes the presentation of this measure will enhance investors’ ability to analyze trends in the Company’s business, evaluate the Company’s performance relative to other companies, and evaluate the Company’s ability to service debt.
Adjusted EBITDA is not a presentation made in accordance with GAAP and the Company’s computation of Adjusted EBITDA may vary from other companies. Adjusted EBITDA should not be considered as an alternative to operating earnings or net income as a measure of operating performance. In addition, Adjusted EBITDA is not presented as, and should not be considered as, an alternative to cash flows as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation, or as a substitute for analysis of the Company’s results as reported under GAAP.
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash flow metrics, net loss and the Company’s other GAAP results.
The following tables reconcile net loss to Adjusted EBITDA for the three and six months ended June 30, 2013 and 2012:
|Three Months Ended June 30,|
|Income tax expense||8,445||6,187|
|Depreciation and amortization expense||195,819||181,868|
|Six Months Ended June 30,|
|Income tax expense (benefit)||12,385||(56,976||)|
|Depreciation and amortization expense||398,955||363,625|
|Equity based compensation||-||5,500|
In the interest of providing Company stockholders and potential investors with information regarding the Company, including the Company’s assessment of its future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, “forward-looking statements”). All statements contained herein that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate” and similar expressions are generally intended to identify forward-looking statements. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company stockholders and potential investors should carefully consider the information contained in the Company’s filings with United States securities administrators at www.sec.gov before making investment decisions with regard to the Company.
About American Locker Group Incorporated
American Locker is a premier metal fabricator of secure storage solutions under the American Locker and Canadian Locker brands. The Company is best known for manufacturing and servicing the widely-utilized key and lock system with the iconic plastic orange cap. The Company also has a growing precision sheet metal fabrication business. Its Security Manufacturing Corporation subsidiary is a leading provider of multi-tenant mailboxes.
Further information about American Locker and its subsidiaries is available at: