DFW AIRPORT, Texas--(BUSINESS WIRE)--American Locker Group Incorporated (OTCQB: ALGI), a recognized leader in secure storage solutions, reported today that it posted net sales of $14.6 million, net loss before income taxes of $2.2 million and net loss applicable to common stockholders of $2.8 million, or $1.68 per share, for the year ended December 31, 2013.
| Results for the year ended December 31, | ||||||
| 2013 | 2012 | |||||
| Net sales | $14.63 million | $13.68 million | ||||
| Loss before income taxes | $(2.18 million) | $(483,145) | ||||
| Net loss applicable to common stockholders | $(2.83 million) | $(614,578) | ||||
| Net loss per share applicable to common stockholders | $(1.68) | $(0.37) | ||||
Net sales for the year were up approximately $950,000, or 6.9%, from $13.7 million to $14.6 million. This increase was driven by increases in all product lines, with the largest increases coming from mailbox sales (approximately $581,000, or 24.7%) and contract manufacturing sales (approximately $129,000, or 7.5%). Locker sales and concession revenues increased by 2.1% and 5.2%, respectively.
Several factors contributed to the net loss in 2013. The Company recorded an increase in operating expenses of approximately $961,000, from approximately $4.3 million in 2012 to approximately $5.2 million in 2013, and an increase in income tax expense, from approximately $131,000 in 2012 to approximately $639,000 in 2013. The increase in operating expenses in 2013 was primarily due to $753,000 in costs associated with the settlement of certain litigation and customer disputes in 2013. The increase in income taxes in 2013 was substantially due to the Company recording deferred tax expense of approximately $623,000 to increase the deferred tax asset valuation allowance to fully offset its deferred tax asset balance at December 31, 2013.
The Company continued its ongoing commitment to enhance and improve its manufacturing capabilities in 2013. While contract manufacturing sales increased a modest 7.5% in 2013 over the prior year, the Company’s continued efforts in developing its manufacturing infrastructure have enabled it to pursue more contract manufacturing opportunities. We believe these efforts will result in even stronger growth in our contract manufacturing business in 2014.
“A year of challenges and changes describes 2013,” said Anthony B. Johnston, Chairman and CEO of American Locker. “After a year of financial and legal hurdles, we are closer to having our business foundation and operational platform in place for future success. Despite the challenges, we were able to make progress on a number of fronts, including bringing in new financial partners in the latter part of 2013 to provide increased working capital to support future sales growth. We also actively managed capital requirements though cost reductions and the sale of non-essential assets, and we significantly improved our manufacturing capabilities to permit increased contract manufacturing opportunities.
“The new executive team remains keenly focused on transitioning American Locker to a multi-channel manufacturing enterprise. We will continue to focus on profitable business growth opportunities while continuing to aggressively manage our cost structure and capital requirements. Entering 2014, we have seen the positive results of this strategy, from growing contract manufacturing opportunities and increased interest from the parcel delivery industry in our locker solutions. In February, the Company was awarded a $1.7 million business opportunity to produce parcel delivery lockers for a major United States package delivery customer. Production is scheduled to begin in the second quarter of 2014. Although there is much more work to be done, we believe we now have the financial resources we need for 2014 and we are encouraged with our direction. We will continue to work aggressively to properly position American Locker for the future.”
Forward-Looking Statements
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. 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 is available at www.americanlocker.com.
