TROY Group, Inc. Posts Fiscal Year 2008 Results

COSTA MESA, Calif., Feb. 27 /PRNewswire-FirstCall/ -- TROY Group, Inc. (Pink Sheets: TROY) announced today that financial results for the fiscal year 2008, which ended November 30, 2008, have been posted on the company's web-site at http://www.troygroup.com/. To access the report, click on About TROY Group then click on Financials. TROY's 2008 financial results are also posted at http://www.pinksheets.com/. Enter TROY in the symbol field then click on Financial Report. Revenue for the year ended November 30, 2008 decreased to $42.0 million compared to revenue for the year ended November 30, 2007 of $47.7 million largely due to turmoil in financial markets and the deteriorating economy. Earnings from continuing operations for the year ended November 30, 2008 decreased to $0.23 per share compared to $0.47 per share for the year ended November 30, 2007. Revenue in the first quarter ended February 28, 2009 is expected to decline approximately 21% to approximately $8.4 million compared to $10.6 million in the first quarter ended February 29, 2008. The consolidated balance sheet and consolidated statement of income are attached to this press release. Please refer to the annual report including financial statements for more detailed information. TROY GROUP, INC. CONSOLIDATED BALANCE SHEET November 30, 2007 2008 ASSETS Current assets: Cash and cash equivalents $782,000 $10,879,000 Investment in available-for-sale securities 11,400,000 5,037,000 Accounts receivable, net of allowances 2007 $293,000; 2008 $333,000 6,302,000 3,977,000 Inventories 3,050,000 2,697,000 Prepaid expenses and other 840,000 1,161,000 Deferred tax assets 734,000 446,000 Current assets of discontinued operations held for sale 311,000 - Total current assets 23,419,000 24,197,000 Equipment and leasehold improvements, net 1,725,000 1,373,000 Goodwill 281,000 281,000 Other assets, including receivables from stockholders of $1,903,000 in 2007 and $1,899,000 in 2008 3,535,000 3,588,000 Total assets $28,960,000 $29,439,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,645,000 $1,544,000 Accrued expenses 2,085,000 1,621,000 Dividend payable - 9,676,000 Deferred revenue 1,286,000 1,390,000 Current liabilities of discontinued operations held for sale 1,976,000 - Total current liabilities 7,992,000 14,231,000 Non-current liabilities 881,000 1,229,000 Total liabilities 8,873,000 15,460,000 Commitments and contingencies Stockholders' equity: Preferred stock, no par value, authorized 100,000 shares; issued none - - Common stock, par value $0.01 per share; authorized 13,000,000 shares; issued 10,563,701 shares in 2007 and 9,676,351 shares in 2008; outstanding 9,948,235 in 2007 and 9,676,351 in 2008 106,000 97,000 Additional paid-in capital 21,587,000 18,218,000 Retained earnings (deficit) 1,441,000 (4,336,000) Less cost of treasury stock - 615,466 shares in 2007 (3,047,000) - Total stockholders' equity 20,087,000 13,979,000 Total liabilities and stockholders' equity $28,960,000 $29,439,000 TROY GROUP, INC. CONSOLIDATED STATEMENT OF INCOME Fiscal Years Ended November 30, 2006 2007 2008 ---- ---- ---- Net sales $49,448,000 $47,679,000 $42,014,000 Cost of goods sold (including rent paid to majority stockholders: 2006 $315,000, 2007 $334,000 and 2008 $354,000) 28,357,000 28,107,000 25,113,000 Gross profit 21,091,000 19,572,000 16,901,000 Operating expenses: Selling, general and administrative 9,556,000 10,055,000 11,040,000 Research and development 2,555,000 2,298,000 2,903,000 Amortization of intangible assets 10,000 - - Total operating expenses 12,121,000 12,353,000 13,943,000 Operating income 8,970,000 7,219,000 2,958,000 Interest income 874,000 673,000 574,000 Income from continuing operations before income taxes 9,844,000 7,892,000 3,532,000 Provision for income taxes 3,290,000 2,920,000 1,248,000 Income from continuing operations 6,554,000 4,972,000 2,284,000 Income (loss) from discontinued operations, net of tax 5,155,000 (730,000) 1,615,000 Net income $11,709,000 $4,242,000 $3,899,000 Net income per share: Basic income from continuing operations $0.63 $0.47 $0.23 Basic income (loss) from discontinued operations 0.49 (0.07) 0.17 Basic income $1.12 $0.40 $0.40 Diluted income from continuing operations $0.63 $0.47 $0.23 Diluted income (loss) from discontinued operations 0.49 (0.07) 0.16 Diluted income $1.12 $0.40 $0.39 Weighted average shares outstanding: Basic 10,469,000 10,527,000 9,785,000 Diluted 10,475,000 10,580,000 9,867,000 About TROY Group TROY Group, Inc. ("TROY") is a worldwide leader of secure on-demand printing solutions. TROY solutions manage, secure and simplify end-to-end enterprise printing environments. TROY offers application software, security printing hardware and specialized consumables for securely printing checks, money orders, transcripts, prescriptions and other important documents. TROY solutions are used by small and medium size businesses as well as large enterprises and governmental organizations to manage fraud, operational risk and comply with government regulations related to protecting information privacy. As a Gold Solutions Partner to HP, TROY is the only company in the world authorized by HP to enhance HP printers and consumables for use in secure printing workflows. Only TROY MICR and Security printers and HP compatible MICR Toner cartridges are certified by HP for quality and reliability. TROY sells and services its products to major corporations, banks, key government accounts and distributors worldwide. Visit TROY at http://www.troygroup.com/ Forward-looking statements of TROY (statements that are not historical fact) in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as believe, expect, may, will, could and should, and the negative of these terms or other similar expressions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but, are not limited to, the ability to sell investments when needed, the ability to develop new products, the ability to hire and retain qualified management, technology and other personnel, the impact of competition from existing and new technologies and companies and the other factors set forth in our periodic reports and other documents that we distribute from time to time which are available in our financial statements under certain important factors on our website TROYgroup.com or pinksheets.com. Statements included in this news release are based upon information known to TROY as of the date of this release, and TROY assumes no obligation to update information contained in this news release. TROY Group, Inc. 940 South Coast Dr., Suite 200 Costa Mesa, CA 92626 (714) 241-4760 (714) 241-4762 Fax http://www.troygroup.com/ Contact: Myra Erickson Investor Relations DATASOURCE: TROY Group, Inc. CONTACT: Myra Erickson, Investor Relations of TROY Group, Inc., +1-714-241-4760, fax, +1-714-241-4762 Web Site: http://www.troygroup.com/