FAIR LAWN, N.J., Nov. 12 /PRNewswire-FirstCall/ -- Henry Bros.
Electronics, Inc. (NASDAQ:HBE), a turnkey provider of
technology-based integrated electronic security solutions, today
announced results for the third quarter ended September 30, 2009.
The Company reported revenue of $12.1 million for the three months
ended September 30, 2009, representing a slight decrease from
revenue of $12.3 million for the same period a year ago. This
decline is due principally to the protracted credit freeze and
economic downturn which is having a significant negative impact on
construction markets and capital spending patterns of commercial
businesses. Partially offsetting this decline was an increase in
revenue resulting from the Company's agreement with a division of
L-3 Communications, which is part of L-3's project for the U.S.
Marine Corp. Systems Command to deliver a Tactical Video Capture
System ("TVCS"). TVCS is used for real-time visualization and
situational awareness while Marine units are conducting military
operations in urban terrain training exercises. The Company
reported a net loss of $357,382 or $0.06 per diluted share, for the
third quarter ended September 30, 2009, compared to net income of
$210,782, or $0.04 per diluted share, in the comparable period of
2008. The Company's net loss is principally the result of the
reduction in revenue, pressure on gross profit margins and the
costs associated with the investment in a larger sales staff.
Revenue for the nine-month period ended September 30, 2009 was
$41.4 million, representing a decrease of 4.4% over revenue of
$43.3 million for the nine months ended September 30, 2008. The
Company had a net loss for the 2009 nine-month period of $136,007,
or $0.02 per diluted share, compared to net income of $832,000, or
$0.14 per diluted share, for the 2008 nine-month period. Jim Henry,
CEO of Henry Bros. Electronics, commented, "A poor business climate
and new, hence unforeseen, administrative requirements which caused
delays in the TVCS project resulted in what is, undoubtedly, a
disappointing quarter. During the first and second quarters we
began to see increased competition for fewer jobs and longer
negotiated sales cycles. These conditions persisted into the third
quarter. However, we are confident this shift will not be permanent
as the economy recovers." Henry continued, "Despite the fact that
our business has become more competitive, our TVCS and other
incumbent business is still strong. Going forward, we intend to
maintain and grow market share, and to find new and innovative
areas for revenue growth. We will also continue to effectively
manage our work force and will remain ready to take advantage of
the spending that has now shifted into 2010." The Company's backlog
as of September 30, 2009 was $23.8 million, and flat when compared
to the $23.7 million at December 31, 2008. As a result of the
protracted credit freeze, lingering recessionary conditions, and
continued delays related to the Company's TVCS project, the Company
is lowering its guidance from an operating profit of 3-5% on
revenue of $65 million to $70 million for fiscal 2009, to an
essentially break-even operating profit on revenue of between $50
million and $55 million for fiscal 2009. In another development, at
its November 11th meeting, the Board of Directors appointed Richard
D. Rockwell, 54, as Chairman of the Company's Board of Directors.
Rockwell has served on the Henry Bros. Board since November 2007.
Jim Henry will continue as Company CEO and Treasurer, as well as
serve as Vice-Chairman of the board. Henry commented on the
appointment of Rockwell, stating, "Rick has been a major
contributor on the Board for these past two years. I am pleased
that we will now be able to utilize his talents in a more prominent
role. Our Company launched a major new offering of managed and
professional services in September 2009. Given his 30-year
background in the recurring revenue security service business, we
expect Rick to help us to leverage our technical excellence to
broaden our reach in these areas." Rockwell also commented, stating
"I have great confidence in the leadership of Jim Henry and Brian
Reach. The Company clearly has advanced capabilities and superior
technical expertise. Jim, Brian, and I, have a shared vision of
building on the Company's successes for the benefit of its
customers, shareholders, and employees. I look forward to working
with them even more closely in the future." Conference Call
Information: Henry Bros. Electronics will be hosting a conference
call on November 12, 2009, at 11 a.m. ET. To participate on the
call, please use the following number and conference code: (888)
562-3356 (Domestic) (973) 582-2700 (International) Conference code:
39871791 A replay of the call will be available from 11/12/2009 at
12 p.m., ET, through 12/12/2009 at 11:59 p.m., ET. To access the
replay, please call (800) 642-1687 in the United States or (706)
645-9291 outside the United States. To access the replay, users
will need to enter the following code: 39871791. About Henry Bros.
Electronics, Inc. Henry Bros. Electronics (NASDAQ:HBE) provides
technology-based integrated electronic security systems, services
and emergency preparedness consultation to commercial enterprises
and government agencies. The Company has offices in Arizona,
California, Colorado, Maryland, New Jersey, New York, Texas and
Virginia. For more information, visit http://www.hbe-inc.com/. Safe
Harbor Statement: Certain statements in this press release
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. In particular, there can be no
assurance that the Company will achieve revenues of $50 million to
$55 million or an essentially breakeven operating profit in 2009.
Additional information concerning factors that could cause actual
results to differ materially from those in the forward looking
statements is contained under the heading of risk factors listed in
the Company's filings with the U.S. Securities and Exchange
Commission. Henry Bros. Electronics Inc. does not assume any
obligation to update the forward-looking information. Investor
Contacts: Todd Fromer KCSA Strategic Communications 212-896-1215
Jim Henry, Vice- Chairman & Chief Executive Officer Henry Bros.
Electronics, Inc. 201-794-6500 HENRY BROS. ELECTRONICS, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Unaudited) Nine months ended Three months ended
September 30, September 30, --------------------
-------------------- 2009 2008 2009 2008 ---- ---- ---- ----
Revenue $41,389,229 $43,292,368 $12,109,037 $12,262,372 Cost of
revenue 30,255,049 32,148,857 9,086,980 8,649,920 ----------
---------- --------- --------- Gross profit 11,134,180 11,143,511
3,022,057 3,612,452 Operating expenses: Selling, general &
administrative expenses 11,015,124 9,461,002 3,452,480 3,204,834
---------- --------- --------- --------- Operating profit (loss)
119,056 1,682,509 (430,423) 407,618 Interest income 21,023 73,732
11,986 20,751 Other income 29,274 9,656 13,481 1,408 Interest
expense (222,333) (209,211) (56,926) (66,483) -------- --------
------- ------- (Loss) income before tax expense (52,980) 1,556,686
(461,882) 363,294 Tax expense (benefit) 83,027 724,686 (104,500)
152,512 ------ ------- -------- ------- Net (loss) income
$(136,007) $832,000 $(357,382) $210,782 ========= ========
========= ======== BASIC (LOSS) EARNINGS PER COMMON SHARE:
--------------------------------------- Basic (loss) earnings per
common share $(0.02) $0.14 $(0.06) $0.04 ====== ===== ====== =====
Weighted average common shares 5,859,400 5,783,425 5,877,798
5,798,108 ========= ========= ========= ========= DILUTED (LOSS)
EARNINGS PER COMMON SHARE:
----------------------------------------- Diluted (loss) earnings
per common share $(0.02) $0.14 $(0.06) $0.04 ====== ===== ======
===== Weighted average diluted common shares 5,859,400 5,975,221
5,877,798 5,989,904 ========= ========= ========= =========
DATASOURCE: Henry Bros. Electronics Inc. CONTACT: Investor, Todd
Fromer of KCSA Strategic Communications, +1-212-896-1215, ; or Jim
Henry, Vice- Chairman & Chief Executive Officer of Henry Bros.
Electronics, Inc., +1-201-794-6500, Web Site:
http://www.henrybroselectronics.com/
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