WEST CALDWELL, N.J., Nov. 9 /PRNewswire-FirstCall/ -- Merrimac
Industries, Inc. (AMEX:MRM), a leader in the design and manufacture
of RF Microwave components, subsystem assemblies and
micro-multifunction modules (MMFM®), today announced its results
for the third quarter of 2009. Third Quarter and First Nine Months
of 2009 Financial Highlights -- Third quarter of 2009 record
bookings were $12,522,000 resulting in a record backlog of
$24,789,000 as of October 3, 2009. -- Net sales for the third
quarter of fiscal year 2009 decreased slightly 0.7% or $57,000 to
$8,271,000, compared to the third quarter of 2008 net sales of
$8,328,000. Net sales for the first nine months of 2009 increased
11.1% or $2,391,000 to $23,967,000 compared to $21,576,000 for the
first nine months of 2008. -- Gross profit for the third quarter of
2009 increased 32.9% or $990,000 to $3,995,000 compared to
$3,005,000 for the third quarter of 2008. Gross profit for the
first nine months of 2009 increased 41.1% or $3,127,000 to
$10,744,000 from $7,617,000 in the first nine months of 2008. --
Gross profit percentage for the third quarter of 2009 increased to
48.3% compared to 36.1% for the third quarter of 2008 and gross
profit percentage for the first nine months of 2009 was 44.8%
compared to 35.3% for the first nine months of 2008. -- Operating
income for the third quarter and first nine months of 2009 was
$1,443,000 and $3,344,000, respectively, compared to an operating
income of $501,000 for the third quarter of 2008 and an operating
loss of $229,000 in the first nine months of 2008. -- Net income
for the third quarter and first nine months of 2009 was $931,000
and $2,506,000, respectively, compared to a net income of $463,000
for the third quarter of 2008 and a net loss of $432,000 in the
first nine months of 2008. -- Net income per share, basic and
diluted, for the third quarter of 2009 was $0.31 compared to net
income per share, basic and diluted, of $0.16 for the third quarter
of 2008. For the first nine months of 2009 net income per share,
basic and diluted, was $0.84, compared to a net loss per share,
basic and diluted, of $0.15 for the first nine months of 2008.
Chairman and CEO Mason N. Carter commented, "In every respect our
third quarter and nine months performance reflects the strength of
our focused business model. Record orders, backlog and outstanding
operating performance are a confirmation of our committed teams in
New Jersey and Costa Rica. Our overall business performance is
meeting or exceeding every internal target and bodes well for a
strong finish to 2009." Third Quarter and First Nine Months of 2009
Results Net sales. Net sales in the third quarter of 2009 were
relatively flat compared to the third quarter of 2008. Net sales
decreased $57,000 or 0.7% to $8,271,000, from the third quarter of
2008 net sales of $8,328,000. Net sales for the first nine months
of 2009, increased $2,391,000 or 11.1% to $23,967,000 compared to
$21,576,000 for the first nine months of 2008. The increase in net
sales for the first nine months of 2009 is primarily due to our
focused strategy concentrating on aerospace and defense markets.
This strategy has resulted in more orders from our key aerospace
and defense customers including increased sales of Multi-Mix®
products to defense industry related customers. Cost of sales and
gross profit. Gross profit and gross profit percentage increased
for both the third quarter and first nine months of 2009 compared
to the same periods in 2008. Gross profit for the third quarter of
2009 increased $990,000 or 32.9%, to $3,995,000 compared to
$3,005,000 for the third quarter of 2008. Gross profit percentage
for the third quarter of 2009 was 48.3% compared to 36.1% for the
third quarter of 2008. Gross profit for the first nine months of
2009 increased 41.1% or $3,127,000 to $10,744,000 from $7,617,000
in the first nine months of 2008. Gross profit percentage for the
first nine months of 2009 was 44.8% compared to 35.3% for the first
nine months of 2008. The increase in consolidated gross profit in
the third quarter was due to the increase in gross profit
percentage. The improved gross profit percentage in the third
quarter of 2009 compared to 2008 was primarily due to several
orders that shipped in third quarter of 2009 with above average
gross profit margins while the same quarter last year had four
large orders that shipped with very low gross profit margins. The
increase in consolidated gross profit in the first nine months of
2009 compared to the same periods in 2008 was due to the
combination of improved gross profit percentage and an increase in
net sales. The increase in net sales also had a favorable impact on
our gross profit percentage in the third quarter and first nine
months of 2009, allowing us to better absorb fixed manufacturing
costs. Selling, general and administrative expenses. Selling,
general and administrative expenses were $2,451,000 for the third
quarter of 2009, an increase of $52,000 or 2.2%, compared to
$2,398,000 in the third quarter of 2008. The increase in expenses
for the third quarter of 2009 was primarily due to an increase in
commissions that was offset in part by the restructuring charges
incurred in the third quarter of 2008 that did not recur in 2009.
When expressed as a percentage of net sales, selling, general and
administrative expenses increased from 28.8% of sales in the third
quarter of 2008 to 29.6% of sales in the third quarter of 2009. For
the first nine months of 2009, selling, general and administrative
expenses were $7,122,000 compared to $6,994,000 in the first nine
months of 2008 an increase of $129,000 or 1.8%. The increase in
such expenses for the first nine months of 2009 was primarily due
to higher professional fees and commissions that were largely
offset by decreases in selling, marketing and proposal expenses.
When expressed as a percentage of net sales, selling, general and
administrative expenses decreased from 32.4% of sales in the first
nine months of 2008 to 29.7% of sales in the first nine months of
2009. Operating income (loss). Operating income for the third
quarter and first nine months of 2009 was $1,443,000 and
$3,344,000, respectively, compared to an operating income of
$501,000 for the third quarter of 2008 and an operating loss of
$229,000 in the first nine months of 2008. The improvement in
operating income for the third quarter 2009 was primarily due to
the improved gross profit resulting from increased gross profit
percentages. The improvement in operating income for the first nine
months of 2009 was due to a combination of improved gross profit,
resulting from the increase in net sales and improved gross profit
percentages, and the decrease in research and development costs
compared to the first nine months of 2008. Income taxes. Provision
for income tax expense was $443,000 and $686,000 in the third
quarter and first nine months of 2009 compared to $10,000 in each
of the third quarter and first nine months of 2008. The provision
for income taxes in the third quarter and first nine months of 2009
is based on the expectation that we will fully utilize our net
operating loss carryforwards in 2009. Discontinued operations.
Income from discontinued operations was $0 and $51,000 in the third
quarter and first nine months of 2009, respectively, compared to a
loss from discontinued operations of $11,000 and $66,000 in the
third quarter and first nine months of 2008, respectively. Net
income (loss). Net income for the third quarter and first nine
months of 2009 was $931,000 and $2,506,000, respectively, compared
to a net income of $463,000 for the third quarter of 2008 and a net
loss of $432,000 in the first nine months of 2008. Net income per
share, basic and diluted for the third quarter of 2009 was $0.31
compared to net income per share, basic and diluted of $0.16 for
the third quarter of 2008. For the first nine months of 2009 net
income per share basic and diluted was $0.84, compared to a net
loss per share, basic and diluted, of $0.15 for the first nine
months of 2008. Investors are invited to participate in the
financial results conference call on Tuesday, November 10, 2009 at
4:15 p.m. (Eastern) by dialing 1-888-481-2844 (for International
callers: 1-719-325-2201) five minutes prior to the scheduled start
time, and reference the Merrimac Industries 3rd Quarter 2009
Financial Results conference call or passcode number 3742041. For
those unable to participate, a replay will be available for seven
days by dialing 1-888-203-1112, or 1-719-457-0820 for international
callers, passcode number 3742041. This conference call will also be
broadcast live over the Internet by logging on to the web at this
address: http://www.videonewswire.com/event.asp?id=63835 Should you
be unable to participate during the live webcast, a link to the
archived webcast will be posted on the Merrimac Industries, Inc.
website http://www.merrimacind.com/. About Merrimac Merrimac
Industries, Inc. is a leader in the design and manufacture of RF
Microwave signal processing components, subsystem assemblies, and
Multi-Mix® micro-multifunction modules (MMFM®), for the worldwide
Defense, Satellite Communications (Satcom), Commercial Wireless and
Homeland Security market segments. Merrimac is focused on providing
Total Integrated Packaging Solutions® with Multi-Mix®
Microtechnology, a leading edge competency providing value to our
customers through miniaturization and integration. Multi-Mix® MMFM®
provides a patented and novel packaging technology that employs a
platform modular architecture strategy that incorporates embedded
semiconductor devices, MMICs, resistors, passive circuit elements
and plated-through via holes to form a three-dimensional integrated
module used in High Power, High Frequency and High Performance
mission-critical applications. Merrimac Industries facilities are
registered under ISO 9001:2000, an internationally developed set of
quality criteria for manufacturing operations. Merrimac Industries,
Inc. has facilities located in West Caldwell, NJ and San Jose,
Costa Rica and has approximately 210 co-workers dedicated to the
design and manufacture of signal processing components, gold
plating of high-frequency microstrip and bonded stripline Teflon
(PTFE) circuits and subsystems providing Total Integrated Packaging
Solutions® for wireless applications. Merrimac (MRM) is listed on
the American Stock Exchange. Multi-Mix®, Multi-Mix PICO®, MMFM®,
System In A Package®, SIP® and Total Integrated Packaging
Solutions® are registered trademarks of Merrimac Industries, Inc.
For more information about Merrimac Industries, Inc. please visit
our website http://www.merrimacind.com/. This press release
contains statements relating to future results of the Company
(including certain projections and business trends) that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. Actual results may differ materially
from those projected as a result of certain risks and
uncertainties. These risks and uncertainties include, but are not
limited to: risks associated with demand for and market acceptance
of existing and newly developed products as to which the Company
has made significant investments, particularly its Multi-Mix®
products; risks associated with adequate capacity to obtain raw
materials and reduced control over delivery schedules and costs due
to reliance on sole source or limited suppliers; slower than
anticipated penetration into the satellite communications, defense
and wireless markets; failure of our Original Equipment
Manufacturer or OEM customers to successfully incorporate our
products into their systems; changes in product mix resulting in
unexpected engineering and research and development costs; delays
and increased costs in product development, engineering and
production; reliance on a small number of significant customers;
the emergence of new or stronger competitors as a result of
consolidation movements in the market; the timing and market
acceptance of our or our OEM customers' new or enhanced products;
general economic and industry conditions; the ability to protect
proprietary information and technology; competitive products and
pricing pressures; our ability and the ability of our OEM customers
to keep pace with the rapid technological changes and short product
life cycles in our industry and gain market acceptance for new
products and technologies; risks relating to governmental
regulatory actions in communications and defense programs; and
inventory risks due to technological innovation and product
obsolescence, as well as other risks and uncertainties as are
detailed from time to time in the Company's Securities and Exchange
Commission filings. These forward-looking statements are made only
as of the date hereof, and the Company undertakes no obligation to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise. MERRIMAC
INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED) Quarters Ended Nine Months Ended --------------
----------------- October 3, September 27, October 3, September 27,
2009 2008 2009 2008 ---- ---- ---- ---- (Restated) (Restated) Net
sales $8,271,178 $8,327,790 $23,966,766 $21,575,742 ----------
---------- ----------- ----------- Costs and expenses: Cost of
sales 4,276,310 5,323,091 13,222,933 13,958,812 Selling, general
and administrative 2,450,671 2,398,255 7,122,290 6,993,520 Research
and development 101,665 105,114 318,187 852,513 Gain on sale of
asset - - (40,579) - ---------- ---------- ----------- -----------
6,828,646 7,826,460 20,622,831 21,804,845 ---------- ----------
----------- ----------- Operating income (loss) 1,442,532 501,330
3,343,935 (229,103) Interest and other expense, net (68,210)
(17,336) (202,252) (126,516) ---------- ---------- -----------
----------- Income (loss) from continuing operations before income
taxes 1,374,322 483,994 3,141,683 (355,619) Provision for income
taxes 443,279 10,000 686,014 10,000 ---------- ----------
----------- ----------- Income (loss) from continuing operations
931,043 473,994 2,455,669 (365,619) Income (loss) from discontinued
operations, net of income taxes - (10,956) 50,505 (65,992)
---------- ---------- ----------- ----------- Net income (loss) $
931,043 $ 463,038 $ 2,506,174 $ (431,611) ========== ==========
=========== =========== Income (loss) per common share from
continuing operations - basic $ 0.31 $ 0.16 $ 0.83 $ (0.13) Income
(loss) per common share from discontinued operations - basic $ - $
- $ 0.01 $ (0.02) ---------- ---------- ----------- ----------- Net
income (loss) per common share - basic $ 0.31 $ 0.16 $ 0.84 $
(0.15) ========== ========== =========== =========== Income (loss)
per common share from continuing operations - diluted $ 0.31 $ 0.16
$ 0.82 $ (0.13) Income (loss) per common share from discontinued
operations - diluted $ - $ - $ 0.02 $ (0.02) ---------- ----------
----------- ----------- Net income (loss) per common share -
diluted $ 0.31 $ 0.16 $ 0.84 $ (0.15) ========== ==========
=========== =========== Weighted average number of shares
outstanding-basic 2,986,022 2,948,037 2,966,501 2,940,112 Weighted
average number of shares outstanding -diluted 3,013,986 2,965,537
3,000,131 2,940,112 MERRIMAC INDUSTRIES, INC. CONDENSED
CONSOLIDATED BALANCE SHEETS October 3, January 3, 2009 2009 ----
---- (UNAUDITED) (NOTE 1) ASSETS Current assets: Cash and cash
equivalents $ 3,219,940 $ 1,191,768 Accounts receivable, net
allowance for doubtful accounts of $30,000 7,559,992 5,765,575
Inventories, net 5,604,220 4,899,706 Other current assets 840,012
542,320 Costs and estimated earnings in excess of billings on
uncompleted contracts 3,249,726 1,880,338 ----------- -----------
Total current assets 20,473,890 14,279,707 ----------- -----------
Property, plant and equipment 38,179,022 37,765,928 Less
accumulated depreciation and amortization 30,433,635 28,556,441
----------- ----------- Property, plant and equipment, net
7,745,387 9,209,487 Other assets 437,398 543,217 -----------
----------- Total assets $28,656,675 $24,032,411 ===========
=========== LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Current portion of long-term debt $ 291,667 $ 291,667
Accounts payable 700,737 794,351 Accrued liabilities 1,704,998
1,432,124 Customer deposits 2,137,761 654,133 Income taxes payable
213,565 17,448 ----------- ----------- Total current liabilities
5,048,728 3,189,723 Long-term debt, net of current portion
2,306,945 2,611,111 Deferred liabilities 50,621 64,254 -----------
----------- Total liabilities 7,406,294 5,865,088 -----------
----------- Commitments and contingencies Stockholders' equity:
Preferred stock, par value $.01 per share: Authorized: 1,000,000
shares No shares issued - - Common stock, par value $.01 per share:
20,000,000 shares authorized; 3,355,361 and 3,315,229 shares
issued; and 2,992,456 and 2,952,324 shares outstanding,
respectively 33,554 33,153 Additional paid-in capital 20,956,407
20,379,924 Retained earnings 3,382,584 876,410 -----------
----------- 24,372,545 21,289,487 Less treasury stock, at cost -
362,905 shares at October 3, 2009 and January 3, 2009 (3,122,164)
(3,122,164) ----------- ----------- Total stockholders' equity
21,250,381 18,167,323 ----------- ----------- Total liabilities and
stockholders' equity $28,656,675 $24,032,411 ===========
=========== Contact: Mason N. Carter, Chairman & CEO
973-575-1300, ext. 1202 DATASOURCE: Merrimac Industries, Inc.
CONTACT: Mason N. Carter, Chairman & CEO, +1-973-575-1300, ext.
1202, Web Site: http://www.merrimacind.com/
Copyright