10 bagger
15年前
SCI Engineered Materials, Inc. Reports Results for Six Months and Second Quarter 2011
Marketwire - Aug 08 16:10 EDT
Alert hits:exc
Company Symbols: NASDAQ-OTCBB:SCIA
COLUMBUS, OH -- (MARKET WIRE) -- 08/08/11 -- SCI Engineered Materials, Inc. ("SCI") (OTCBB: SCIA) develops and commercializes technologies and manufactures ceramics and metals for advanced applications in the physical vapor deposition industry. The company reported its financial results today for the six months and three months ended June 30, 2011.
Total revenue for the first six months of 2011 was $4,795,202 which was similar to the same period in 2010. Lower gross profit attributable to product mix and manufacturing scale-up costs plus an 80% increase in internally financed research and development expense contributed to the $(281,232) loss applicable to common shares or $(0.07) per share for the first half of 2011 versus $109,115 of income applicable to common shares or $0.03 per share a year ago.
For the second quarter 2011, total revenue was $2,277,568 compared to $2,560,664 for the second quarter of last year. Lower gross profit, due to a decline in total revenue and change in product mix versus a year ago, was the primary factor contributing to the $(204,488) loss applicable to common shares or $(0.05) per share for the three months ended June 30, 2011 versus income of $8,759 applicable to common shares or $0.00 per share for the same quarter in 2010.
Dan Rooney, Chairman, President and Chief Executive Officer, said, "Our core business is performing well in this challenging global economic environment. The second quarter shortfall in total revenue compared to a year ago was due to an anticipated decline in contract research revenue and a customer who closed their manufacturing facility in the first quarter of this year. Approximately one-half of the revenue attributable to this customer was offset with additional business. We continue to invest in new products that we believe offer long-term competitive advantage for solar manufacturers. Our internally financed investment in R&D was 34% higher than a year ago and was the only category of operating expenses that increased compared to the second quarter 2010. Comprehensive product trials are part of a long sales cycle for these products. The conversion rate of product trials into production orders is increasing. During the second quarter we shipped a production order to Asia and also received approval from another solar customer. There was a strong pipeline of product trials at the end of the second quarter which we expect will contribute to further progress later this year."
Mr. Rooney added, "We anticipate that our financial performance will begin to improve during the final three months of 2011. Based on solar customers' guidance concerning their needs, revenues are expected to benefit from additional orders which should contribute to higher gross profit, higher margins and profitability for the fourth quarter 2011. In order to meet this growing demand we have ordered approximately $1 million of equipment during the first half of this year to scale-up our manufacturing capacity. We maintain a strong balance sheet and have financial flexibility to manage future growth."
Six Month and Second Quarter 2011 Results
Total revenue
Total revenue was $4,795,202 for the first six months of 2011 and similar to the same period in 2010. Product revenue increased 2% due to customer demand and higher cost of a high value raw material. Contract research revenue declined 21% to $353,171 for the first half of 2011 versus the prior year as a result of the completion of two programs since the second quarter of last year.
Total revenue declined 11% to $2,277,568 for the second quarter 2011 from $2,560,664 for the same period a year ago. Product revenue declined 10% to $2,129,733 versus the second quarter 2010 due to a customer who closed their manufacturing facility in the first quarter 2011; however, approximately 50% of the impact was offset with additional business. Contract research revenue was $147,835 for the second quarter 2011 or 28% below the same period a year ago. This was principally due to the completion of government programs since June 30, 2010.
Changes by some customers in their purchasing practices to shorter-term blanket orders significantly impacts backlog. Contract research revenue backlog declined $1.0 million as of June 30, 2011. As a result, backlog was $2.7 million at June 30, 2011 compared to $3.7 million on the same date last year.
Gross profit
For the six months ended June 30, 2011, gross profit was $964,367 or 20% of total revenue versus $1,343,850 or 28% of total revenues a year ago. The lower amount was primarily due to change in product mix and further scale-up costs related to solar products.
Second quarter 2011 gross profit was $416,829 compared to $666,148 for the second quarter 2010. Gross profit margin was 18% and 26%, respectively, for the second quarters of 2011 and 2010. The year-over-year decline was attributable to lower product revenue, product mix and additional scale-up costs related to solar products.
Operating expenses
Operating expenses, which include marketing and sales, general and administrative, and R&D, were $1,189,393 for the six months ended June 30, 2011, versus $1,107,202 for the same period last year. With the exception of R&D, which increased 80% compared to a year ago, the other two categories declined compared to last year. General and administrative expense was below the first half of 2010 principally due to less non-cash stock based compensation expense, while marketing and sales expense declined as a result of less commission to outside sales representatives compared to last year.
For the second quarter 2011, operating expenses were $592,803 for the second quarter 2011 or 4% below the second quarter 2010. Operating expenses were 16% below the same period last year excluding R&D expense which involves specific customer needs and expenses related to trial orders. These activities are beyond the scope of federal and state grants and awards the company has been awarded. Lower first half 2011 marketing and sales and general and administrative expenses were due to the same factors that occurred during the first six months of 2011 and 2010.
EBITDA
Earnings before interest, income taxes, depreciation and amortization (EBITDA) were $61,361 for the six months ended June 30, 2011, compared to $476,287 the prior year. Adjusted EBITDA, which excludes non-cash stock based compensation expense, was $122,654 compared to $579,863 in 2010.
EBITDA for the second quarter 2011 was $(10,048) versus $173,686 for the same period last year. Adjusted EBITDA was $19,880 for the second quarter 2011 compared to $223,600 last year.
Income (loss) applicable to common shares
The net loss applicable per common shares was $(281,232) or $(0.07) per share for the first half of 2011 versus income applicable to common shares of $109,115 or $0.03 per share for the same period last year.
The loss applicable to common shares for the second quarter 2011 was $(204,488) or $(0.05) per share compared to income applicable to common shares of $8,759 or $0.00 per diluted share for the second quarter 2010.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. manufactures ceramics and metals for advanced applications such as photonics, thin film solar, thin film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, customer guidance, forecasts, and plans of the Company and its management, and specifically include statements concerning investments in new products that the company believes offer long-term competitive advantage for solar manufacturers, a strong pipeline of product trials at the end of the second quarter which the company expects will contribute to further progress later this year, based on solar customers' guidance revenues are expected to benefit from additional orders which should contribute to higher gross profit, higher margins and profitability for the fourth quarter 2011, and the company purchased additional equipment during the first half of 2011 to scale-up its manufacturing capacity to meet growing demand. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2010. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
SCI ENGINEERED MATERIALS, INC.
BALANCE SHEETS
ASSETS
June 30, December 31,
2011 2010
---------------- ----------------
(UNAUDITED)
CURRENT ASSETS
Cash $ 1,260,613 $ 1,511,752
Accounts receivable, less allowance for
doubtful accounts 504,582 682,017
Inventories 1,517,385 1,344,426
Deferred income taxes 156,000 156,000
Prepaid expenses 237,955 51,369
---------------- ----------------
Total current assets 3,676,535 3,745,564
---------------- ----------------
PROPERTY AND EQUIPMENT, AT COST 6,686,007 5,717,611
Less accumulated depreciation (3,467,648) (3,250,237)
---------------- ----------------
3,218,359 2,467,374
---------------- ----------------
OTHER ASSETS 66,753 78,897
---------------- ----------------
TOTAL ASSETS $ 6,961,647 $ 6,291,835
================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30, December 31,
2011 2010
(UNAUDITED)
CURRENT LIABILITIES
Short term debt $ 471,037 $ 464,072
Accounts payable 871,571 573,741
Customer deposits 750,915 366,153
Accrued expenses 264,921 304,405
---------------- ----------------
Total current liabilities 2,358,444 1,708,371
Long term debt 1,005,789 758,685
---------------- ----------------
Total liabilities 3,364,233 2,467,056
COMMITMENTS AND CONTINGENCIES
TOTAL SHAREHOLDERS' EQUITY 3,597,414 3,824,779
---------------- ----------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$ 6,961,647 $ 6,291,835
================ ================
SCI ENGINEERED MATERIALS, INC.
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010
(UNAUDITED)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
2011 2010 2011 2010
------------- ------------- ------------ ------------
PRODUCT REVENUE $ 2,129,733 $ 2,354,405 $ 4,442,031 $ 4,357,005
CONTRACT RESEARCH
REVENUE 147,835 206,259 353,171 444,772
------------- ------------- ------------ ------------
2,277,568 2,560,664 4,795,202 4,801,777
------------- ------------- ------------ ------------
COST OF PRODUCT
REVENUE 1,772,357 1,735,227 3,617,356 3,124,408
COST OF CONTRACT
RESEARCH REVENUE 88,382 159,289 213,479 333,519
------------- ------------- ------------ ------------
1,860,739 1,894,516 3,830,835 3,457,927
------------- ------------- ------------ ------------
GROSS PROFIT 416,829 666,148 964,367 1,343,850
GENERAL AND
ADMINISTRATIVE
EXPENSE 275,340 314,981 551,234 596,211
RESEARCH AND
DEVELOPMENT
EXPENSE 197,548 147,505 362,187 200,761
MARKETING AND SALES
EXPENSE 119,915 155,908 275,972 310,230
------------- ------------- ------------ ------------
(LOSS) INCOME FROM
OPERATIONS (175,974) 47,754 (225,026) 236,648
------------- ------------- ------------ ------------
OTHER INCOME
(EXPENSE)
Interest - net (18,239) (21,502) (36,080) (42,268)
Gain on disposal
of equipment - 10,251 425 10,251
------------- ------------- ------------ ------------
(18,239) (11,251) (35,655) (32,017)
------------- ------------- ------------ ------------
(LOSS) INCOME
BEFORE PROVISION
FOR INCOME TAX (194,213) 36,503 (260,681) 204,631
INCOME TAX EXPENSE (4,237) (21,670) (8,475) (83,367)
------------- ------------- ------------ ------------
NET (LOSS) INCOME (198,450) 14,833 (269,156) 121,264
DIVIDENDS ON
PREFERRED STOCK (6,038) (6,074) (12,076) (12,149)
------------- ------------- ------------ ------------
(LOSS) INCOME
APPLICABLE TO
COMMON SHARES $ (204,488) $ 8,759 $ (281,232) $ 109,115
============= ============= ============ ============
EARNINGS PER SHARE
- BASIC AND
DILUTED
(LOSS) INCOME
APPLICABLE PER
COMMON SHARE
Basic $ (0.05) $ 0.00 $ (0.07) $ 0.03
============= ============= ============ ============
Diluted $ (0.05) $ 0.00 $ (0.07) $ 0.03
============= ============= ============ ============
WEIGHTED AVERAGE
SHARES OUTSTANDING
Basic 3,778,898 3,742,039 3,778,036 3,727,074
============= ============= ============ ============
Diluted 3,778,898 3,882,826 3,778,036 3,873,231
============= ============= ============ ============
SCI ENGINEERED MATERIALS, INC.
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010
(UNAUDITED)
2011 2010
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income $ (269,156) $ 121,264
Adjustments to reconcile net (loss) income
to net cash from operating activities:
Depreciation and accretion 257,768 239,993
Amortization 1,544 1,544
Stock based compensation 61,293 103,577
Patent impairment 38,726 -
Gain on sale of equipment (425) (10,251)
Deferred income taxes - 72,000
Inventory reserve 18,000 11,591
Credit for doubtful accounts (530) -
Changes in operating assets and
liabilities:
Accounts receivable 177,965 (184,361)
Inventories (190,959) (390,433)
Prepaid expenses (186,586) 655,076
Other assets (28,125) 6,255
Accounts payable 297,830 122,829
Accrued expenses and customer deposits 341,964 (399,213)
------------- -------------
Net cash provided by operating
activities 519,309 349,871
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on sale of equipment 425 10,500
Purchases of property and equipment (820,440) (153,742)
------------- -------------
Net cash used in investing activities (820,015) (143,242)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of common stock
options 4,650 15,145
Net proceeds from exercise of common stock
warrants - 490,799
Proceeds from note payable 300,000 -
Principal payments on capital lease
obligations and note payable (230,931) (225,621)
Payment of cumulative dividends o preferred
stock (24,152) -
------------- -------------
Net cash provided by financing
activities 49,567 280,323
------------- -------------
NET (DECREASE) INCREASE IN CASH (251,139) 486,952
CASH - Beginning of period 1,511,752 1,107,216
------------- -------------
CASH - End of period $ 1,260,613 $ 1,594,168
============= =============
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid during the year for:
Interest $ 37,666 $ 44,931
Income taxes 713 1,650
SUPPLEMENTAL DISCLOSURES OF NONCASH
INVESTING AND FINANCING ACTIVITIES
Property and equipment purchased by capital
lease 185,000 192,665
Increase in asset retirement obligation 3,312 3,312
SCI ENGINEERED MATERIALS, INC.
THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND JUNE 30, 2010
Three months ended Six months ended
June 30, June 30,
2011 2010 2011 2010
----------- ----------- ----------- -----------
RECONCILIATION OF GAAP TO
NON-GAAP MEASURES
Net (loss) income $ (198,450) $ 14,833 $ (269,156) $ 121,264
Dividends on preferred
stock (6,038) (6,074) (12,076) (12,149)
Interest, net 18,239 21,502 36,080 42,268
Income taxes 4,237 21,670 8,475 83,367
Patent impairment 38,726 - 38,726 -
Depreciation and
amortization 133,238 121,755 259,312 241,537
----------- ----------- ----------- -----------
EBITDA (10,048) 173,686 61,361 476,287
Stock based compensation 29,928 49,914 61,293 103,577
----------- ----------- ----------- -----------
Adjusted EBITDA $ 19,880 $ 223,600 $ 122,654 $ 579,863
=========== =========== =========== ===========
10 bagger
16年前
SCIA.. $2.80
SCI Engineered Materials, Inc. Reports Third Quarter 2010 Results
Nov 1, 2010 16:05:33 (ET)
COLUMBUS, OH, Nov 01, 2010 (MARKETWIRE via COMTEX) -- SCI Engineered Materials, Inc. (SCIA, Trade ) develops and commercializes technologies and manufactures ceramics and metals for advanced applications in the physical vapor deposition industry. The company reported total revenue of $2.4 million and a 2 cent loss applicable to common shares for the three months ended September 30, 2010 compared to total revenue of $2.2 million and zero cents applicable to common shares for the same period last year.
Dan Rooney, Chairman, President and Chief Executive Officer, commented, "We achieved 9% growth in total revenue for the third quarter of 2010, compared to a year ago, and made further investments in our business during this period. Consistent with our growth strategy, we are involved in a number of product trials with customers in the solar industry as well as internal development of innovative transparent conductive oxide (TCO) systems. To further align our activities with customer needs, research and development expense doubled compared to the third quarter of 2009 as our efforts moved beyond the scope of federal and state grants and awards. These TCO development activities and product trials involve long lead times but are expected to result in significant orders from multiple customers. Last month we received an order from one of those customers and product shipments will begin in the fourth quarter of 2010. We anticipate more orders over the next several months from product trials with customers that are currently underway."
Mr. Rooney also stated, "We continue to implement plans to enhance our manufacturing capabilities and position SCI for significant growth. These efforts include equipment purchases and leases totaling approximately $414,000 for the 2010 year-to-date period, and we are in the process of securing funds to finance ongoing strategic initiatives to support further growth. Our loan applications to separate agencies of the State of Ohio can fund about 70% of SCI's current capital requirements of approximately $3 million. Both of these loan applications are being actively considered and we anticipate final decisions in the fourth quarter of 2010."
Third Quarter 2010 Results
Total revenue
Total revenue increased to $2,433,381 for the third quarter 2010 from $2,224,756 for the same period in 2009. Product revenue was $2,191,843 for the third quarter 2010, an 8% increase compared to a year ago. Contract research revenue, which is principally focused on government grants and awards to improve time-to-market for new products, increased 23% to $241,538 for the third quarter 2010 due to two government awards received during the past twelve months.
Total revenue for the fourth quarter 2010 is expected to be substantially below the same quarter in 2009 due to significantly lower prices for a high value raw material used to manufacture targets. As reported on September 17, 2009, a major customer informed the Company of its plans to purchase this high value raw material directly going forward and ship it to SCI for processing. Unit volumes for targets using this material by all customers are expected to be similar to the fourth quarter 2009 and the impact on gross profit is anticipated to be limited.
Changes in the purchasing practices of certain customers to shorter term blanket orders as well as a substantial decline in the price of a high value raw material used to manufacture targets continues to fluctuate and impacted backlog. As a result, backlog was $2.4 million at September 30, 2010 compared to $3.7 million on the same date a year ago.
Gross profit
Gross profit declined 7% to $515,945 for the third quarter 2010 from $552,299 for the same period last year due to product mix. Gross profit margin was 21.2% and 24.8%, respectively, for the third quarter of 2010 and 2009.
Operating expenses
The company's operating expenses: marketing, sales, general and administrative, research and development; increased 12% to $571,589 for the third quarter 2010 from $511,121 the prior year. This increase was almost completely attributable to higher research and development expense, which doubled to $119,979 for the third quarter 2010 from $59,829 a year ago. The major factor was higher internal research and development expense associated with the development of products and TCO systems for the solar market.
Interest expense, net
Interest expense, net, declined 23% to $20,092 for the third quarter 2010 from $25,992 for the same period last year. This year-over-year decline was principally due to the maturity of capital leases plus more principal and less interest being applied to ongoing capital lease payments compared to the same period last year.
Income tax expense
Income tax benefit for the third quarter 2010 was $24,304 compared to income tax expense of $(287) a year ago.
Income (loss) applicable to common shares
The loss applicable to common shares was $(57,504), or $(0.02) per common share, for the third quarter 2010 compared to income applicable to common shares of $8,792, or $0.00 per fully diluted common share, for the third quarter 2009.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. manufactures ceramics and metals for advanced applications such as photonics, thin film solar, thin film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com .
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and specifically include statements concerning long lead times for product trials and the expectation of significant orders from multiple customers, anticipation of more orders over the next several months following completion of product trials, implementation of plans to enhance manufacturing capabilities and position SCI for significant growth, loans through agencies of the State of Ohio to fund approximately 70% of intermediate financing needs of approximately $3 million, , unit volumes for targets using a high value raw material are expected to be similar to the fourth quarter 2009 and the impact on gross profit is anticipated to be limited. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
SCI ENGINEERED MATERIALS, INC.
STATEMENTS OF OPERATIONS
THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30, SEPT. 30,
2010 2009 2010 2009
----------- ----------- ----------- -----------
PRODUCT REVENUE $ 2,191,843 $ 2,028,355 $ 6,548,847 $ 4,738,869
CONTRACT RESEARCH
REVENUE 241,538 196,401 686,311 697,475
----------- ----------- ----------- -----------
2,433,381 2,224,756 7,235,158 5,436,344
----------- ----------- ----------- -----------
COST OF PRODUCT REVENUE 1,746,844 1,481,956 4,871,252 3,651,003
COST OF CONTRACT
RESEARCH 170,592 190,501 504,111 556,532
----------- ----------- ----------- -----------
1,917,436 1,672,457 5,375,363 4,207,535
----------- ----------- ----------- -----------
GROSS PROFIT 515,945 552,299 1,859,795 1,228,809
MARKETING AND SALES
EXPENSE 185,767 178,107 495,997 492,557
GENERAL AND
ADMINISTRATIVE EXPENSE 265,843 273,185 862,054 976,568
RESEARCH AND
DEVELOPMENT EXPENSE 119,979 59,829 320,740 264,406
----------- ----------- ----------- -----------
INCOME (LOSS) FROM
OPERATIONS (55,644) 41,178 181,004 (504,722)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
Interest income 1,531 842 4,194 5,688
Interest expense (21,623) (26,834) (66,555) (84,057)
Financing expense - - - (76,387)
Gain on disposal of
equipment - - 10,251 -
----------- ----------- ----------- -----------
(20,092) (25,992) (52,110) (154,756)
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE
PROVISION FOR INCOME
TAX (75,736) 15,186 128,894 (659,478)
INCOME TAX BENEFIT
(EXPENSE) 24,304 (287) (59,064) (862)
----------- ----------- ----------- -----------
NET INCOME (LOSS) (51,432) 14,899 69,830 (660,340)
DIVIDENDS ON PREFERRED
STOCK (6,072) (6,107) (18,222) (18,322)
----------- ----------- ----------- -----------
INCOME (LOSS)
APPLICABLE TO COMMON
SHARES $ (57,504) $ 8,792 $ 51,608 $ (678,662)
=========== =========== =========== ===========
EARNINGS PER SHARE -
BASIC AND DILUTED
INCOME (LOSS) APPLICABLE
TO COMMON SHARES PER
COMMON SHARE
Basic $ (0.02) $ 0.00 $ 0.01 $ (0.19)
=========== =========== =========== ===========
Diluted $ (0.02) $ 0.00 $ 0.01 $ (0.19)
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic 3,773,017 3,562,259 3,742,553 3,562,186
=========== =========== =========== ===========
Diluted 3,773,017 3,896,530 3,899,852 3,562,186
=========== =========== =========== ===========
SCI ENGINEERED MATERIALS, INC.
BALANCE SHEETS
ASSETS
September 30, December 31,
2010 2009
----------- -----------
(UNAUDITED)
CURRENT ASSETS
Cash $ 1,536,513 $ 1,107,216
Accounts receivable 684,591 570,112
Inventories 965,773 1,031,777
Deferred income taxes 112,000 156,000
Prepaid expenses 45,551 977,536
----------- -----------
Total current assets 3,344,428 3,842,641
----------- -----------
PROPERTY AND EQUIPMENT, AT COST 5,713,513 5,399,326
Less accumulated depreciation (3,127,325) (2,868,198)
----------- -----------
2,586,188 2,531,128
----------- -----------
OTHER ASSETS 54,435 63,267
----------- -----------
TOTAL ASSETS $ 5,985,051 $ 6,437,036
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
September 30, December 31,
2010 2009
----------- -----------
(UNAUDITED)
CURRENT LIABILITIES
Short term debt $ 459,749 $ 425,664
Accounts payable 423,342 263,468
Customer deposits 80,264 1,319,455
Accrued expenses 320,548 278,157
----------- -----------
Total current liabilities 1,283,903 2,286,744
Long term debt 877,561 1,055,969
----------- -----------
Total liabilities 2,161,464 3,342,713
COMMITMENTS AND CONTINGENCIES - -
TOTAL SHAREHOLDERS' EQUITY 3,823,587 3,094,323
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,985,051 $ 6,437,036
=========== ===========
SCI ENGINEERED MATERIALS, INC.
STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2010 AND 2009
(UNAUDITED)
2010 2009
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 69,830 $ (660,340)
Adjustments to reconcile net income (loss) to
net cash from operating activities:
Depreciation and accretion 363,436 339,401
Amortization 2,316 2,316
Stock based compensation 153,490 331,117
Financing expense related to warrant
expiration date extension - 76,387
Gain on sale of equipment (10,251) -
Deferred income taxes 44,000 -
Inventory reserve 20,591 12,868
Credit for doubtful accounts - (8,947)
Changes in operating assets and liabilities:
Accounts receivable (114,479) (128,395)
Inventories 45,413 322,855
Prepaid expenses 931,985 (385,202)
Other assets 6,516 (3,295)
Accounts payable 159,873 163,358
Accrued expenses and customer deposits (1,201,767) (195,281)
----------- -----------
Net cash provided by (used in)
operating activities 470,953 (133,158)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds on sale of equipment 10,500 -
Purchases of property and equipment (221,111) (142,983)
----------- -----------
Net cash used in investing
activities (210,611) (142,983)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of common stock options 15,145 1,550
Net proceeds from exercise of common stock
warrants 490,799 -
Payments related to Preferred Series B dividend - (24,430)
Principal payments on capital lease obligations
and note payable (336,989) (272,335)
----------- -----------
Net cash provided by (used in)
financing activities 168,955 (295,215)
----------- -----------
NET INCREASE (DECREASE) IN CASH 429,297 (571,356)
CASH - Beginning of period 1,107,216 1,399,050
----------- -----------
CASH - End of period $ 1,536,513 $ 827,694
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid during the periods for:
Interest, net $ 66,555 $ 84,057
Income taxes 2,400 2,450
SUPPLEMENTAL DISCLOSURES OF NONCASH
FINANCING ACTIVITIES
Property and equipment purchased by capital
lease 192,665 555,700
Increase in asset retirement obligation 4,968 4,968
Financing expense related to warrant extension - 76,387
For Additional Information
Contact:
Robert Lentz
(614) 876-2000
10 bagger
16年前
SCIA Earnings..
SCI Engineered Materials, Inc. Reports Second Quarter 2010 Results
Market Wire - Jul 27 at 16:31
Company Symbols: NASDAQ-OTCBB:SCIA
COLUMBUS, OH -- (MARKET WIRE) -- 07/27/10 -- SCI Engineered Materials, Inc. (OTCBB: SCIA), develops and commercializes technologies and manufactures ceramics and metals for advanced applications in the physical vapor deposition industry. The company reported its financial results today for the three months ended June 30, 2010 compared to the same period last year.
Dan Rooney, Chairman, President and Chief Executive Officer, stated, "Our second quarter 2010 results reflect solid growth in total revenue on a year-over-year and sequential quarter basis. Gross profit also improved compared to the second quarter 2009. During the second quarter of 2010 we incurred higher costs related to qualification of new products versus the same period last year. SCI's products continue to be evaluated by a growing number of companies engaged in the global solar market. This increased level of activity also resulted in higher operating expenses compared to the same period last year, especially for internal research and development efforts for solar products, and the recent hiring of additional manufacturing personnel to meet anticipated growth needs. We are optimistic that further progress will be realized during the remainder of 2010 and early-2011. Our quarterly financial performance will be influenced by the success rate of converting current solar product trials into orders."
Second Quarter 2010 Results
Total revenue
Total revenue increased 95% to $2,560,664 for the second quarter 2010 from $1,310,053 for the same period last year. Product sales more than doubled compared to the second quarter 2009, reflecting improved market conditions and higher sales to customers in the solar market. Contract research revenue, which is principally focused on government grants and awards to improve time-to-market for new products, was $206,259 for the second quarter 2010 compared to $254,649 a year ago due to the completion of certain milestones of those programs.
Backlog was $3.7 million at June 30, 2010 compared to $4.0 million on the same date a year ago.
Gross profit
Gross profit increased to $666,148 for the second quarter 2010 from $248,990 for the second quarter 2009. Gross profit margin rose 7 percentage points to 26.0% for the second quarter 2010 from 19.0% a year ago, reflecting higher product volume and improved mix.
Operating expenses
The company's operating expenses, which include: marketing, sales, general and administrative, research and development; increased 20% to $618,394 for the second quarter 2010 from $513,952 for the same period last year. This increase was principally due to higher internal research and development expenses associated with products for the solar market and higher professional fees compared to the second quarter 2009.
Interest expense, net
Interest expense, net, declined 18% to $21,502 for the second quarter 2010 versus $26,283 a year ago. This was principally due to the maturity of capital leases plus more principal and less interest being applied to ongoing capital lease payments compared to the same period last year.
Income tax expense
Income tax expense for the second quarter 2010 was $21,670 compared to $287 a year ago. The deferred tax benefit of $156,000 at December 31, 2009 was reduced $17,000 during the second quarter 2010 ($72,000 for the 2010 year-to-date period), to account for usage of prior net operating losses against current year income.
Income (loss) applicable to common shares
Income applicable to common shares was $8,759, or $0.00 per fully diluted common share, compared to a loss applicable to common shares of $(374,027), or $(0.10) per common share, for the second quarter 2009.
Recent Exercise of Warrants and Stock Options
During the second quarter 2010, there were 40,833 warrants and 8,400 stock options exercised at $2.88 and $1.55 per common share, respectively. The total cash proceeds to SCI Engineered Materials, Inc. were $130,619, which will be used for working capital purposes. At June 30, 2010, the company had 3,873,231 fully-diluted common shares outstanding.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. manufactures ceramics and metals for advanced applications such as photonics, thin film solar, thin film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and specifically include statements concerning anticipated growth needs, further progress will be realized during the remainder of 2010 and early-2011, and quarterly financial performance will be influenced by the success rate of converting current solar product trials into orders. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
SCI ENGINEERED MATERIALS, INC.
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, 2010 AND 2009
AND SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
PRODUCT REVENUE $2,354,405 $1,055,404 $4,357,005 $2,710,514
CONTRACT RESEARCH REVENUE 206,259 254,649 444,772 501,074
---------- ---------- ---------- ----------
2,560,664 1,310,053 4,801,777 3,211,588
---------- ---------- ---------- ----------
COST OF PRODUCT REVENUE 1,735,227 881,904 3,124,408 2,169,047
COST OF CONTRACT RESEARCH 159,289 179,159 333,519 366,031
---------- ---------- ---------- ----------
1,894,516 1,061,063 3,457,927 2,535,078
---------- ---------- ---------- ----------
GROSS PROFIT 666,148 248,990 1,343,850 676,510
OPERATING EXPENSES 618,394 513,952 1,107,202 1,222,410
---------- ---------- ---------- ----------
INCOME (LOSS) FROM
OPERATIONS 47,754 (264,962) 236,648 (545,900)
INTEREST AND OTHER INCOME
(EXPENSE) (11,251) (102,670) (32,017) (128,764)
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE
PROVISION FOR INCOME TAX 36,503 (367,632) 204,631 (674,664)
INCOME TAX EXPENSE (21,670) (287) (83,367) (575)
---------- ---------- ---------- ----------
INCOME (LOSS) 14,833 (367,919) 121,264 (675,239)
DIVIDENDS ON PREFERRED
STOCK (6,074) (6,108) (12,149) (12,215)
---------- ---------- ---------- ----------
INCOME (LOSS) APPLICABLE TO
COMMON SHARES $ 8,759 $ (374,027) $ 109,115 $ (687,454)
========== ========== ========== ==========
INCOME (LOSS) APPLICABLE TO
COMMON SHARES
PER COMMON SHARE
Basic $ 0.00 $ (0.10) $ 0.03 $ (0.19)
========== ========== ========== ==========
Diluted $ 0.00 $ (0.10) $ 0.03 $ (0.19)
========== ========== ========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic 3,742,039 3,562,259 3,727,074 3,562,149
========== ========== ========== ==========
Diluted 3,882,826 3,562,259 3,873,231 3,562,149
========== ========== ========== ==========
SCI ENGINEERED MATERIALS, INC.
CONDENSED BALANCE SHEETS
(UNAUDITED)
ASSETS
June 30, December 31,
2010 2009
------------ ------------
(UNAUDITED)
CURRENT ASSETS
Cash $ 1,594,168 $ 1,107,216
Accounts receivable 754,474 570,112
Inventories 1,410,619 1,031,777
Deferred taxes 84,000 156,000
Prepaid expenses 322,460 977,536
------------ ------------
Total current assets 4,165,721 3,842,641
------------ ------------
PROPERTY AND EQUIPMENT, AT COST 5,704,666 5,399,326
Less accumulated depreciation (3,064,061) (2,868,198)
------------ ------------
2,640,605 2,531,128
------------ ------------
TOTAL OTHER ASSETS 55,468 63,267
------------ ------------
TOTAL ASSETS $ 6,861,794 $ 6,437,036
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30, December 31,
2010 2009
------------ ------------
(UNAUDITED)
Short-term debt $ 454,161 $ 425,664
Accounts payable 386,297 263,468
Customer deposits 830,083 1,319,455
Accrued expenses 371,269 278,157
------------ ------------
Total current liabilities 2,042,170 2,286,744
Long-term debt 994,516 1,055,969
------------ ------------
Total liabilities 3,036,686 3,342,713
COMMITMENTS AND CONTINGENCIES - -
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 3,825,108 3,094,323
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,861,794 $ 6,437,036
============ ============
SCI ENGINEERED MATERIALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2010 AND 2009
(UNAUDITED)
2010 2009
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by (used in) operating
activities $ 349,871 $ (57,933)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities (143,242) (106,250)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by (used in) financing
activities 280,323 (194,372)
----------- -----------
NET INCREASE (DECREASE) IN CASH 486,952 (358,555)
CASH - Beginning of period 1,107,216 1,399,050
----------- -----------
CASH - End of period $ 1,594,168 $ 1,040,495
=========== ===========
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid during the years for:
Interest, net $ 44,931 $ 57,223
Income taxes 1,650 2,450
SUPPLEMENTAL DISCLOSURES OF NONCASH
FINANCING ACTIVITIES
Property and equipment purchased by capital lease 192,665 555,700
Machinery & equipment accrued asset retirement
obligation increase 3,312 3,312
Financing expense related to warrant expiration
date extension - 76,387
For Additional Information
Contact:
Robert Lentz
(614) 876-2000
10 bagger
16年前
SCIA.. $3.00 1st QTR Earnings..
PRESS RELEASE: SCI Engineered Materials, Inc. Reports Significantly Improved First Quarter 2010 Results
Dow Jones & Company, Inc. - Apr 29 at 16:40
Company Symbols: NASDAQ-OTCBB:SCIA
SCI Engineered Materials, Inc. Reports Significantly Improved First Quarter 2010 Results
COLUMBUS, OH -- (MARKETWIRE) -- 04/29/10 --
-- Total revenue increased 18 percent
-- Income from operations of $188,894
-- $0.03 earnings per diluted common share SCI Engineered Materials, Inc. (
OTCBB: SCIA), develops and commercializes technologies and manufactures ceramics and metals for advanced applications in the physical vapor deposition industry. The company reported significantly improved financial results today for the three months ended March 31, 2010 compared to the same period last year.
Dan Rooney, Chairman, President and Chief Executive Officer, stated, " Benefiting from strong growth in total revenue and favorable product mix, SCI's gross profit for the three months ended March 31, 2010 was a first quarter record. Sales to solar customers throughout the first quarter were especially encouraging and reflected increased shipments to our growing customer base. Our results also benefited from lower operating expenses compared to the same period last year. The first quarter results, coupled with our solid backlog and growing market penetration in the solar industry, position us for improved performance during 2010."
Mr. Rooney continued, "Based on identified market opportunities, we continue to expand our production capabilities, R&D efforts as well as marketing and sales initiatives. These efforts have contributed to additional trial and qualification orders since year-end 2009 for customers in the solar industry. Successful completion of these evaluations is the first step toward possibly achieving substantial ongoing orders beginning later this year and early in 2011.
As part of our ongoing international marketing efforts in solar, during the second quarter of 2010 SCI will be an exhibitor at the International Photovoltaic Power Generation Conference and Exhibition in Shanghai, China. In late-June, we will also be participating in a trade mission to Japan sponsored by the Ohio Department of Development that is specifically focused on the photovoltaic (PV) industry and we will also attend the PVJapan 2010 Exhibition."
First Quarter 2010 Results
Total revenue
Total revenue increased 18% to $2,241,112 for the first quarter 2010 from $1, 901,535 for the same period in 2009. Product revenue, comprised of product sales, increased 21% compared to the first quarter 2009 led by significantly higher sales to solar customers. Revenue attributable to contract research activities, which are primarily focused on improving time-to-market for products, was $238,513 or approximately 3% below the same period a year ago.
Backlog was $5.0 million at March 31, 2010 compared to $2.7 million on the same date a year ago and $5.5 million at December 31, 2009.
Gross profit
Gross profit increased 59% to $677,702 for the first quarter 2009 from $427, 520 for the first quarter 2009. Gross profit margin rose 7.7 percentage points to 30.2% for the three months ended March 31, 2010 versus 22.5% a year ago, reflecting increased volumes, improved product mix and manufacturing efficiencies.
Operating expenses
The company's operating expenses, which include: marketing, sales, general and administrative, research and development; declined 31% to $488,808 for the first quarter 2010 from $708,459 a year ago primarily due to lower non-cash stock based compensation expense. Non-cash stock based compensation expenses were $49, 000 for the first quarter 2010 compared to $224,000 for the same period last year.
Most of the company's research and development resources during the first quarter 2010 were applied to the five ongoing R&D contracts. Research and development expense for the first three months of 2010 was $53,256 compared to $ 125,330 for the same period in 2009, a decrease of 57.5%. This decline was due to lower non-cash stock based compensation expense and a lower amount of materials used for internal research.
EBITDA
Earnings before interest, income taxes, depreciation and amortization (EBITDA) were $302,601 for the first quarter 2010 versus negative EBITDA of $(170,220) a year ago. Adjusted EBITDA, excluding stock-based compensation expense, increased to $356,264 for the first quarter 2010 from $61,070 a year ago.
Interest expense, net
Interest expense was $21,822 and $28,588 for the three months ended March 31, 2010 and 2009, respectively. The decrease was due to the maturity of four capital leases plus more principal and less interest being applied to ongoing capital lease payments.
Income tax expense
Income tax expense for the three months ended March 31, 2010 was $61,698 compared to $287 for the same period last year. The deferred tax benefit of $ 156,000 at December 31, 2009 was reduced by $55,000 during the first quarter 2010 to account for usage of prior net operating losses against current year income.
Income (loss) applicable to common shares
Income applicable to common shares was $100,355, or $0.03 per fully diluted common share, compared to a loss applicable to common shares of $(313,427), or $ (0.09) per common share, for the first quarter of 2009. The first quarter 2010 results particularly benefited from higher total revenues and gross profit coupled with lower non-cash expenses compared to the same period last year.
ISO 9001:2008 Registration
In April 2010 the company received ISO 9001:2008 registration, an internationally recognized quality standard. Prior to April 2010 the company was ISO 9001:2000 registered.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. manufactures ceramics and metals for advanced applications such as photonics, thin film solar, thin film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http:/ /www.sciengineeredmaterials.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and specifically include statements concerning the company being positioned for improved performance during 2010 and possibly achieving substantial ongoing orders beginning later this year and early in 2011.
These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward- looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
SCI ENGINEERED MATERIALS, INC.
CONDENSED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(UNAUDITED)
2010 2009
----------- -----------
PRODUCT REVENUE $ 2,002,599 $ 1,655,110
CONTRACT RESEARCH REVENUE 238,513 246,425
----------- -----------
2,241,112 1,901,535
----------- -----------
COST OF PRODUCT REVENUE 1,389,180 1,287,143
COST OF CONTRACT RESEARCH 174,230 186,872
----------- -----------
1,563,410 1,474,015
----------- -----------
GROSS PROFIT 677,702 427,520
OPERATING EXPENSES 488,808 708,459
----------- -----------
INCOME (LOSS) FROM OPERATIONS 188,894 (280,939)
INTEREST EXPENSE, net (20,767) (26,094)
----------- -----------
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX 168,127 (307,033)
INCOME TAX EXPENSE (61,698) (287)
----------- -----------
INCOME (LOSS) 106,429 (307,320)
DIVIDENDS ON PREFERRED STOCK (6,074) (6,107)
----------- -----------
INCOME (LOSS) APPLICABLE TO COMMON SHARES $ 100,355 $ (313,427)
=========== ===========
EARNINGS PER SHARE - BASIC AND DILUTED
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(MORE TO FOLLOW) Dow Jones Newswires
04-29-10 1640ET
Added on 04/29 at 16:40 PRESS RELEASE: SCI Engineered Materials, Inc. -2-
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAX
PER COMMON SHARE
Basic $ 0.05 $ (0.09)
=========== ===========
Diluted $ 0.04 $ (0.09)
=========== ===========
INCOME (LOSS) APPLICABLE TO COMMON SHARES
PER COMMON SHARE
Basic $ 0.03 $ (0.09)
=========== ===========
Diluted $ 0.03 $ (0.09)
=========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 3,711,942 3,562,037
=========== ===========
Diluted 3,869,583 3,562,037
=========== ===========
SCI ENGINEERED MATERIALS, INC.
CONDENSED BALANCE SHEETS
(UNAUDITED)
ASSETS
March 31, December 31,
2010 2009
------------ ------------
(UNAUDITED)
CURRENT ASSETS
Cash $ 1,392,032 $ 1,107,216
Accounts receivable 795,956 570,112
Inventories 1,071,162 1,031,777
Deferred taxes 101,000 156,000
Prepaid expenses 1,207,603 977,536
------------ ------------
Total current assets 4,567,753 3,842,641
------------ ------------
PROPERTY AND EQUIPMENT, AT COST 5,561,074 5,399,326
Less accumulated depreciation (2,985,552) (2,868,198)
------------ ------------
2,575,522 2,531,128
------------ ------------
TOTAL OTHER ASSETS 64,467 63,267
------------ ------------
TOTAL ASSETS $ 7,207,742 $ 6,437,036
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
March 31, December 31,
2010 2009
------------ ------------
(UNAUDITED)
Short-term debt $ 436,339 $ 425,664
Accounts payable 321,460 263,468
Customer deposits 1,481,897 1,319,455
Accrued expenses 315,756 278,157
------------ ------------
Total current liabilities 2,555,452 2,286,744
Long-term debt 1,020,749 1,055,969
------------ ------------
Total liabilities 3,576,201 3,342,713
COMMITMENTS AND CONTINGENCIES - -
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 3,631,541 3,094,323
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,207,742 $ 6,437,036
============ ============
SCI ENGINEERED MATERIALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(UNAUDITED)
2010 2009
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash provided by operating activities $ 93,983 $ 187,214
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities (75,086) (60,116)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by (used in) financing
activities 265,919 (82,917)
----------- -----------
NET INCREASE IN CASH 284,816 44,181
CASH - Beginning of period 1,107,216 1,399,050
----------- -----------
CASH - End of period $ 1,392,032 $ 1,443,231
=========== ===========
SUPPLEMENTAL DISCLOSURES OF NONCASH
FINANCING ACTIVITIES
Property and equipment purchased by capital lease $ 86,661 $ 468,350
SUPPLEMENTAL DISCLOSURES OF NONCASH
OPERATING ACTIVITIES
Stock based compensation $ 53,663 $ 231,290
For Additional Information Contact: Robert Lentz (614) 876-200
10 bagger
16年前
SCIA.. $3.00 Background.. YE & 4th Qtr..
SCI Engineered Materials, Inc. Reports Fourth Quarter and Full-Year 2009 Results
Market Wire - Feb 17 at 16:15
Company Symbols: NASDAQ-OTCBB:SCIA
COLUMBUS, OH -- (MARKET WIRE) -- 02/17/10 -- SCI Engineered Materials, Inc. (OTCBB: SCIA) develops, commercializes technologies and manufactures ceramics and metals for advanced applications in the physical vapor deposition industry. Today, the Company reported higher total revenue and increased earnings per share for the three months ended December 31, 2010.
Total revenue increased 8% to $2,573,891 for the fourth quarter 2009, benefiting from both higher sales revenue and contract research revenue. Income applicable to common shares increased 77% to $157,013 from $88,787 for the fourth quarter 2008. Net income per common share after dividends on preferred stock increased to $0.04 from $0.02 for the same period a year ago.
Dan Rooney, Chairman, President and Chief Executive Officer, commented, "Our operating results for the fourth quarter 2009 reflect further improvement in our business. Total revenue and net income were the highest quarterly amounts of the year. The combination of increased revenue, especially from solar products, higher gross profit, and gradually improving conditions in our core markets contributed substantially to the favorable performance compared to the fourth quarter 2008."
Mr. Rooney continued, "We are specifically pursuing opportunities to increase our presence in the solar industry's supply chain and participate in government grants and awards consistent with SCI's long-term growth strategy. Late in the fourth quarter 2009, we received a large follow-on order for solar products and were also notified of an award to commercialize advanced technology. We exited 2009 with record backlog and look forward to improved performance in 2010."
GAAP to Non-GAAP reconciliation
Reconciliation of the differences between all non-GAAP financial measures with the most directly comparable GAAP financial measures is included at the end of this news release.
Total revenue
Total revenue increased 8% to $2,573,891 for the fourth quarter 2009 compared to the same period last year. Both contract research revenue and solar sales more than tripled compared to the fourth quarter 2008. Fourth quarter 2009 revenue was adversely impacted by lower prices for a high value raw material compared to a year ago. Excluding sales attributable to this material, revenue for the fourth quarter 2009 increased 54% versus the same period last year. Contract research revenue was $308,233 for the fourth quarter 2009, an increase of 356% compared to a year ago. This is directly related to Small Business Innovation Research grants and program awards.
Lower prices for a high value raw material and the global economic recession contributed to a 17% decline in total revenue to $8,010,235. Excluding revenue attributable to the high value raw material, sales increased 29% for 2009 versus 2008. Following a slow start in 2009, total revenue increased 49% for the second half of the year versus the first six months. Strong sales of solar products and higher contract research revenue were the primary factors. Contract research revenue was approximately $1 million for 2009 compared to $157,032 the prior year. Based on current government grants and awards, contract research revenue for 2010 is expected to be similar to the 2009 amount and then decline as those programs are completed.
The Company's backlog increased throughout the fourth quarter 2009 and was a record $5.5 million at December 31, 2009 compared to $3.7 million at September 30, 2009 and $2.9 million on the same date a year ago. This increase was primarily due to a significant increase in orders from solar customers plus a grant received from the State of Ohio.
Gross profit
Gross profit increased 11% to $641,070 for the fourth quarter 2009 compared to a year ago. More favorable product mix was partially offset by additional contract research labor costs. Gross profit margin increased to 24.9% of total revenue for the fourth quarter 2009 from 24.2% for the same period last year.
Gross profit for 2009 declined to $1,869,879 from $2,211,477 the prior year due to the decline in total revenue and additional contract research labor costs. Gross profit margin for 2009 was more favorable compared to 2008, increasing to 23.3% from 23.0%, respectively.
Operating expenses
The company's operating expenses include marketing and sales expense, general and administrative expense, and research and development expense. Together, these expenses were $465,524 for the fourth quarter 2009, an increase of 1% over the same period last year. For the fourth quarter 2009, higher expenses were primarily related to additional non-cash stock based compensation ($49,914) and Sarbanes-Oxley compliance ($19,000), which were partially offset by lower company-funded research and development (R&D) expense ($48,659) for the fourth quarter 2009 versus the same period last year. During 2009 a portion of R&D compensation was assigned to cost of contract research rather than R&D, which reduced R&D expense. Excluding the accounting reclassification, R&D expense would have been $60,000 and $7,000 greater for the fourth quarter 2009 and 2008, respectively.
Operating expenses, as defined above, increased approximately 10% to $2,199,917 for 2009 versus the prior year. Major factors included an increase in non-cash stock based compensation expense ($381,030) and Sarbanes-Oxley compliance ($60,000). Partially offsetting these expense increases was lower R&D expense attributable to the accounting reclassification previously noted. Excluding the accounting reclassification, R&D expense would have been $222,000 and $28,000 greater for 2009 and 2008, respectively.
EBITDA
Earnings before interest, income taxes, depreciation and amortization (EBITDA) were $227,134 for the fourth quarter 2009 versus $197,987 a year ago. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was $277,048 for the fourth quarter 2009 versus $229,462 last year.
EBITDA was negative $31,444 for 2009 versus EBITDA of $552,882 for 2008. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was $425,974 for 2009 compared to $630,230 for 2008.
Non-cash charges related to stock based compensation expense are expected to continue at a lower amount than 2009 through 2010 and then decline further beginning in the first quarter of 2011.
Income tax benefit
The company had an income tax benefit of $59,000 for the fourth quarter and full-year 2009 that was attributable to recognition of a deferred tax benefit of $156,000 partially offset by state income tax expense of $97,000. There was no tax benefit or expense for the fourth quarter or full-year 2008.
Net income/loss
Net income applicable to common shares for the fourth quarter 2009 was $157,013, or $0.04 per diluted share, for the fourth quarter 2009 compared to $88,787 or $0.02 per diluted share for the same period in 2008.
For 2009, the company reported a net loss applicable to common shares of $521,649, or $(0.15) per share, compared to net income applicable to common shares of $100,177 or $0.02 per diluted share for 2008.
Research contract and award
During the fourth quarter 2009 the company was notified that it was awarded a grant in the amount of $775,400 by the Ohio Department of Development's Third Frontier Photovoltaic Program (OTFPVP) to commercialize advanced technology for high power density rotatable ceramic sputtering targets. These targets are used in the manufacture of photovoltaic solar cells. This technology will enable manufacturers to operate rotatable sputtering targets at higher power densities than is generally possible with current technology. This award received final approval in January 2010.
Recent exercise of warrants
On January 8, 2010, 150,000 common stock warrants, originally in the estates of Dr. Edward R. Funk Sc.D., and Ingeborg V. Funk, founders of the company, were exercised at a price of $2.50 per share. The company received cash proceeds of $375,000, which will be used for working capital purposes.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. develops, commercializes technologies and manufactures ceramics and metals for advanced applications in the physical vapor deposition industry such as photonics, solar, thin film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com.
Reconciliation of GAAP to Non-GAAP Measures
SCI Engineered Materials, Inc.
(Unaudited)
Three Three Twelve Twelve
Months Ended Months Ended Months Ended Months Ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
Net Income (loss) $ 163,121 $ 94,758 $ (497,219) $ 124,550
Preferred stock
dividend accrual (6,108) (5,971) (24,430) (24,373)
Interest expense,
net 23,949 18,749 102,318 78,492
Income tax benefit (59,000) - (59,000) -
Depreciation and
amortization 105,172 90,451 446,887 374,213
------------ ------------ ------------ ------------
EBITDA 227,134 197,987 (31,444) 552,882
Stock based
compensation/
Financing 49,914 31,475 457,418 77,348
------------ ------------ ------------ ------------
Adjusted EBITDA $ 277,048 $ 229,462 $ 425,974 $ 630,230
============ ============ ============ ============
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the company and its management, and specifically include statements concerning the company specifically pursuing opportunities to increase its presence in the solar industry's supply chain and participate in government grants and awards consistent with the company's long-term growth strategy, and the company's record backlog and expectations for improved performance in 2010. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings, including the company's Annual Report on Form 10-K for the year ended December 31, 2009. One or more of these factors have affected, and could in the future affect, the company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the company. The company assumes no obligation to update any forward-looking statements.
For Additional Information
Contact:
Robert Lentz
(614) 876-2000
10 bagger
16年前
SCIA.. $3.00 Background.. Third Qtr..
SCI Engineered Materials, Inc. Reports Third Quarter 2009 Results
Market Wire - Nov 03 at 16:23
Company Symbols: NASDAQ-OTCBB:SCIA
COLUMBUS, OH -- (MARKET WIRE) -- 11/03/09 -- SCI Engineered Materials, Inc. (OTCBB: SCIA), a manufacturer of ceramics and metals for advanced applications in the physical vapor deposition industry, today reported profitable results for the three months ended September 30, 2009.
Total revenue for the third quarter 2009 was $2,224,756, the highest quarterly amount this year, versus $4,008,635 for the same period a year ago. Net income applicable to common shares was $8,792, or $0.00 per diluted share, for the third quarter 2009 compared to net income of $198,635, or $0.05 per diluted share, for the same period last year.
Dan Rooney, Chairman, President and Chief Executive Officer, stated, "We are encouraged by the sequential quarter sales increase and our return to profitability in the third quarter 2009. These results particularly benefited from higher thin-film solar sales and contract research revenues, which increased 330% and 298%, respectively, compared to a year ago. Sales to photonics customers more than doubled from the second quarter 2009, although they were approximately 65% below the third quarter 2008. We continue to implement plans to leverage SCI's product and technical strengths to diversify our business."
Mr. Rooney added, "We continue to increase our market presence in the thin-film solar industry and are working to improve our position as an integral member of the supply chain. Solid orders for SCI's thin-film solar products were received during the third quarter and we also began to ship products for the previously announced $1 million thin-film solar order. During the third quarter we also commenced work on an Ohio Department of Development grant focused on Ohio-based manufacturing of thin-film photovoltaic and support for development of alternate transparent conductive oxides. In September 2009 we participated in the European Photovoltaic Solar Energy Expo in Hamburg, Germany. This international exhibition provided us with increased visibility and generated additional global exposure for SCI's products. We believe these efforts will benefit SCI's performance as we continue to execute our growth strategy in this important market."
GAAP to Non-GAAP reconciliation
Reconciliation of the differences between all non-GAAP financial measures with the most directly comparable GAAP financial measures is included at the end of this news release.
Total revenue
Total revenue was $2,224,756 for the third quarter 2009, the highest quarterly amount this year, compared to $4,008,635 for the same quarter in 2008. This decline was attributable to significantly lower sales to photonics customers, whose end markets include the automotive market, coupled with a substantial reduction in the price of a high value raw material compared to a year ago. Product revenue was $2,028,355 for the third quarter 2009 versus $3,959,286 a year ago. Sales of thin-film solar products more than tripled for the third quarter 2009 compared to the third quarter 2008 as a result of additional customers and larger orders. Contract research revenue increased to $196,401 for the third quarter 2009 from $49,349 last year as work continued on high temperature superconductor developments and efforts to accelerate commercialization of additional thin-film solar products. During the third quarter 2009 some of SCI's Photonics customers began to increase their order rates compared to earlier this year with orders scheduled for delivery during the remainder of 2009 and into early 2010.
Total revenue for the nine months ended September 30, 2009 was $5,436,344 compared to $7,240,088 last year. Significantly higher sales of thin-film solar products combined with a significant increase in contract research revenue partially offset the sharp decline in sales of photonics products which were 44% below the same period last year. Contract research revenue increased to $697,475 for the nine months ended September 30, 2009 from $89,470 last year.
Backlog was $3.7 million at September 30, 2009 compared to $2.7 million on the same date last year and $4.0 million at June 30, 2009.
Gross profit
Gross profit was $552,299 for the third quarter 2009 versus $769,566 a year ago, despite the 45% decline in total revenue compared to the third quarter 2008. In addition to the year-over-year decline in revenue, gross profit also reflected higher costs associated with research and development labor which is included as cost of contract research revenue. Gross profit margin increased 5.6 percentage points to 24.8% for the third quarter 2009 from 19.2% a year ago due to improved product mix.
For the first nine months of 2009, gross profit was $1,228,809 compared to $1,636,438 the prior year. Gross profit margin was 22.6% for both year-to-date periods in 2009 and 2008.
Marketing and sales expense
Marketing and sales expense was $178,107 for the third quarter 2009 compared to $169,524 for the prior year. Most of this increase was attributable to higher non-cash stock based compensation expense, plus higher expenses related to trade shows including the European Photovoltaic Solar Energy Expo in Hamburg, Germany in September 2009. For the first nine months of 2009, marketing and sales expense was $492,557 versus $441,556 for the same period in 2008. This 12% increase was principally due to non-cash stock based compensation expense, higher trade show expenses in 2009 and commissions to outside manufacturing sales representatives.
General and administrative expense
General and administrative expense increased to $273,472 for the third quarter 2009 from $241,101 a year ago. This increase was principally due to Sarbanes-Oxley expenses, which were partially offset by lower compensation expense. For the first nine months of 2009, general and administrative expense was $977,430 compared to $751,562 last year. The largest single increase was non-cash stock based compensation, which was approximately $243,000 compared to $36,000 for the same period in 2008. Expenses related to Sarbanes-Oxley compliance were $42,000 versus $5,000 for the 2008 year-to-date period.
Research and development expense
SCI's research and development (R&D) efforts involve government grants and awards that currently include programs for the thin-film solar and high temperature superconductor markets. Reported expense declined to $59,829 for the third quarter 2009 from $133,066 for the same period last year despite increased research and development. This was due to compensation that was assigned to cost of contract revenue that was $59,000 for the third quarter 2009. SCI will continue to pursue profitable R&D opportunities to develop products for its customers and key markets that are compatible with its long-term growth strategy. For the 2009 year-to-date period, R&D expense declined 26% to $264,406 from $355,785 the prior year due to $162,000 of compensation that was assigned to cost of contract research revenue for the first nine months of 2009.
EBITDA
Earnings before interest, income taxes, depreciation and amortization (EBITDA) were $147,627 for the third quarter 2009 compared to $317,419 for the same period last year. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was $197,541 for the third quarter 2009 versus $333,655 a year ago.
EBITDA for the first nine months of 2009 was negative $258,578 versus EBITDA of $354,895 last year. Adjusted EBITDA, excluding non-cash stock based compensation and financing expense, was $148,926 for the nine months of 2009 compared to $400,768 in 2008.
Non-cash charges related to stock based compensation expense are expected to continue through 2010 and then decline beginning in the first quarter of 2011.
Net interest expense
Net interest expense was $25,992 for the third quarter 2009 compared to $21,921 a year ago. SCI has acquired additional manufacturing equipment during the past year to increase production capacity and also add new product lines. Most of this manufacturing equipment was financed through capital lease obligations.
For the nine months ended September 30, 2009, net interest expense increased to $78,369 from $59,743 a year ago, reflecting the acquisition of additional manufacturing equipment compared to the same period last year.
Net income/loss applicable to common shares
The Company was profitable for the third quarter 2009. Net income applicable to common shares for the three months ended September 30, 2009 was $8,792, or $0.00 per diluted share, compared to net income of $198,635, or $0.05 per diluted share, for the same period last year. The year-over-year results were particularly impacted by significantly lower sales revenue, specifically to photonics customers, and higher non-cash stock based compensation expenses.
The net loss applicable to common shares for the first nine months of 2009 was $678,662, or $(0.19) per share, compared to net income applicable to common shares of $11,390 or $0.00 per share for the same period in 2008. This was principally due to significantly higher non-cash expenses, including stock based compensation, which totaled $331,117 for the 2009 year-to-date period versus $45,873 for the same period in 2008 and $76,387 of financing expense in 2009 related to the warrant expiration date extension versus $0 in 2008.
Research Contract and Award
On August 18, 2009, SCI announced it was awarded a two-year Phase II Small Business Innovation Research (SBIR) contract concerning "Homogenous BSCCO-2212 Round Wires for Very High Field Magnet." This contract enables SCI to continue its efforts to develop High Jc performance in BSCCO-2212, which is currently the only superconducting material manufactured in round wire form that works successfully in high magnetic fields over 12 Tesla. This is a requirement for new generation magnets under development for high energy physics experiments. During the third quarter of 2009 SCI received notification from the U.S. Department of Energy of an assistance agreement in the amount of approximately $750,000.
In July 2009 SCI was selected as a subcontractor for an award recently granted by the Ohio Department of Development. This award involved Ohio-based manufacturing of thin-film photovoltaic and provides support for the development of alternative transparent conductive oxides. Work commenced during the third quarter 2009 and is expected to be completed during 2010. The amount of the work to be performed is $125,000 over the life of the contract.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. manufactures ceramics and metals for advanced applications such as photonics, thin-film solar, thin-film batteries, and semiconductors. SCI Engineered Materials is a global materials supplier with clients in more than 40 countries. Additional information is available at http://www.sciengineeredmaterials.com.
Reconciliation of GAAP to Non-GAAP Measures
SCI Engineered Materials, Inc.
(unaudited)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
---------- ---------- ---------- ----------
Net Income (loss) $ 14,899 $ 233,654 $ (660,340) $ 29,792
Preferred stock dividend
accrual (6,107) (6,119) (18,322) (18,402)
Interest expense, net 25,992 21,921 78,369 59,743
Depreciation and
amortization 112,843 96,863 341,715 283,762
---------- ---------- ---------- ----------
EBITDA 147,627 346,319 (258,578) 354,895
Stock based
compensation/Financing 49,914 16,236 407,504 45,873
---------- ---------- ---------- ----------
Adjusted EBITDA $ 197,541 $ 362,555 $ 148,926 $ 400,768
========== ========== ========== ==========
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, forecasts, and plans of the Company and its management, and specifically include statements concerning implementation of plans to leverage SCI's product and technical strengths to diversify the business, increasing and improving SCI's position as an integral supplier to the thin-film solar supply chain, efforts to benefit SCI's performance and execution of its growth strategy in the thin-film solar market. These forward-looking statements involve numerous risks and uncertainties, including, without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2008. One or more of these factors have affected, and could in the future affect, the Company's projections. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
For Additional Information
Contact:
Robert Lentz
(614) 876-2000
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