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 approximately $2.8 million, net loss before income taxes of $45,431 and net loss applicable to common stockholders of $54,358, or $0.03 per share, for the quarter ended March 31, 2014.
|Results for the quarter ended March 31,|
|Net sales||$2.83 million||$3.15 million|
|Loss before income taxes||$(45,431)||$(1.01 million)|
|Net loss applicable to common stockholders||$(54,358)||$(1.01 million)|
|Net loss per share applicable to common stockholders||$(0.03)||$(0.60)|
Net sales for the first quarter of 2014 were down approximately $320,000, or 10.2%, when compared to the same period of 2013. While sales of lockers and mailboxes were down 10.7% and 50.5%, respectively, in the first quarter, contract manufacturing sales increased by 248.4% compared to the first quarter of 2013 as the Company continued its efforts to grow this segment of its business.
The Company reported a decrease in operating expenses of approximately $592,000 in the first quarter of 2014 as compared to the first quarter of 2013. This decrease was driven primarily by a decrease of approximately $591,000 in costs associated with the settlement of certain litigation and customer disputes that were recorded in the first quarter of 2013.
In February, the Company sold to a third party the lockers, kiosks and other assets related to a locker concession arrangement with a theme-park operator and entered into a subcontract agreement under which the third party agreed to perform the locker concession and management services previously performed by the Company for the theme-park operator in exchange for the right to receive all of the payments owed to the Company under such arrangement. The Company received $1,218,075 in total consideration for the disposition of these assets. Additionally, in connection with the sale of these assets, the Company and the third party agreed to an amendment to a settlement agreement previously executed between the two parties whereby payments the Company was making to the third party pursuant to the settlement agreement were eliminated. The Company recorded a gain, net of selling costs, of approximately $703,000 in connection with the sale of the locker concession assets and amendment to the settlement agreement.
“Completing our concession agreement sale and achieving a significant year-over-year increase in contract manufacturing revenues were positive accomplishments in the quarter. Although mailboxes and locker sales were low in the first quarter as compared to 2013, we expect the previously announced $1.7 million parcel delivery locker contract to begin production in the second quarter. We continue to focus on revenue growth but we are equally focused on obtaining cost reductions throughout the company to improve profitability,” said Anthony Johnston, Chairman and CEO of American Locker.
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.