WEB NEWS Comments & Business Outlook
Fourth Quarter 2013 Results
The company reported revenue of $5.78 million compared to $4.54 million for the same quarter of 2012.
The company reported a non-GAAP loss per share of $0.11 compared to a loss of $0.08 for the same quarter of 2012.
Comments & Business Outlook
Third Quarter 2013 Results
Video Display Corporation and Subsidiaries
Condensed Consolidated Income Statements (unaudited)
(in thousands, except per share data)
Three Months Ended August 31,
Six Months Ended August 31,
2013
2012
2013
2012
Net sales
$ 4,921
$
4,417
$ 11,375
$
9,031
Cost of goods sold
4,353
3,910
10,431
7,943
Gross profit
568
507
944
1,088
Operating expenses
Selling and delivery
380
597
854
1,067
General and administrative
880
825
1,628
1,858
1,260
1,422
2,482
2,925
Operating (loss)
(692 )
(915
)
(1,538 )
(1,837
)
Other income (expense)
Interest expense
(327 )
(176
)
(686 )
(353
)
Other, net
(15 )
62
533
160
(342 )
(114
)
(153 )
(193
)
(Loss) from continuing operations before income taxes
(1,034 )
(1,029
)
(1,691 )
(2,030
)
Income tax (benefit)
(337 )
(381
)
(588 )
(755
)
Net (loss) from continuing operations
$ (697 ) $
(648
)
$ (1,103 ) $
(1,275
)
Income from discontinued operations, net of income tax expense
2,197
791
2,367
1,577
Net income
1,500
143
1,264
302
Net income per share:
From continuing operations-basic
$ (.09 ) $
(.08
)
$ (.14 ) $
(.17
)
From continuing operations-diluted
(.09 )
(.08
)
(.14 )
(.16
)
From discontinued operations-basic
$ .29 $
.10
$ .31
.21
From discontinued operations-diluted
.29
.10
.31
.20
Basic weighted average shares outstanding
7,593
7,565
7,589
7,573
Diluted weighted average shares outstanding
7,609
7,625
7,617
7,629
Acquisition Activity
SCHAUMBURG, Ill.--(BUSINESS WIRE its wholly owned subsidiary, Sparton Aydin, LLC has entered into a definitive purchase agreement to acquire certain assets and liabilities of Aydin Displays, Inc., an $18 million revenue business, in an all-cash transaction.
Aydin Displays, Inc., a subsidiary of Video Display Corp. (NASDAQ: VIDE), located in Birdsboro, Pennsylvania, develops enhanced flat panel display and touch-screen solutions with application-critical performance criteria including ruggedization, high resolution, color accuracy, response/refresh times, sunlight readability and other criteria such as magnetic interference and noise/TEMPEST emissions for the Military & Aerospace and Civil Marine. These products are currently specified in the P8A behind-the-cockpit control center, the command and control centers of many U.S. Navy ships, FAA air traffic control systems, and cockpit command centers for various civil marine applications. Once the transaction is complete, the company will continue to operate as Aydin Displays.
"The addition of Aydin Displays meets one aspect of our growth strategy by providing engineered product content to further enhance our capabilities within the electromechanical value stream,” stated Cary B. Wood, president and chief executive officer of Sparton. “Additionally, Aydin’s products are an integral part of the P8A program, as are our sonobuoy products. We also believe we will be able to enhance the solutions selling approach of both Aydin Displays and our Defense & Security Systems business segment to the Department of Defense and other prime defense contractors, as well as key customers located across the globe.”
“We look forward to joining the Sparton team,” stated Art Mengel, president and general manager of Aydin Displays. “With the additional support and enhanced capabilities Sparton has to offer, we expect to be able to fulfill our customers’ needs in a more timely and effective manner as well being able to pursue the sales of our products and solutions into alternate end markets.”
“As Sparton continues to implement its strategic growth plan, we plan to meet our growth expectations by focusing on new business development, internal product research and development, and complementary and compatible acquisitions. We are pleased to have Aydin Displays joining the Sparton family and look forward to the added content it provides as well as the potential domestic and foreign cross-selling opportunities with our Defense & Security Systems business segment,” Mr. Wood concluded.
The transaction is expected to close within 30 days and will be funded through Sparton’s existing cash balances and borrowings under the credit facility currently in place with BMO Harris Bank.
Comments & Business Outlook
ATLANTA, July 16, 2013 (GLOBE NEWSWIRE ) -- Video Display Corporation (Nasdaq:VIDE), a leading innovative American designer, manufacturer and distributor of specialty high end displays, today released financial results for its fiscal 2014 first quarter ended May 31, 2013.
Operating results for the first quarterly reporting period were in line, to slightly less, than Company expectations, and less than the comparative results of the first quarter of the previous year. Earnings results continued to be negatively impacted by the start-up expenses of the two new display divisions, Aydin Visual Solutions and Aydin CyberSecurity, as well as approximately $180,000 in interest rate penalties being assessed by PNC Bank on the Company's outstanding line of credit. Revenues, and therefore gross margins, continued to be negatively impacted by delays in shipments on defense contracts by our VDC Display Systems division.
Gross margins were substantially impacted, although overall net revenues remained slightly higher than the comparable period, due to the reduction higher margin revenues at the Company's Z-Axis Inc subsidiary and an offsetting increase in revenues of lower margin products at our AVS (Aydin Visual Solutions) division.
Ron Ordway, CEO, stated: "Based upon our first quarter results, although slightly less than previously forecast, the Company still remains confident that per share earnings for this fiscal year will be substantially greater than the results reported for the previous fiscal year. With our current backlog of existing orders and the potential contracts currently in the bidding process, we believe guidance for the current year revenue should be in the range of $55 million to $60 million resulting in earnings per share in the range of $0.52 to $0.58 versus $49 million in revenue and negligible earnings for the previous year."
Comments & Business Outlook
Fourth Quarter 2012 Results
Net revenue for fourth quarter 2012 were $14.6 million vs $14.5 million in prior year period.
Earnings per share for the fourth quarter 2012 were $0.01 vs $0.03
Company CEO, Ron Ordway, stated, "Fiscal 2012 represented the new and streamlined Video Display Corporation, as results for the Company's revenue and profits reflected in the above reported financial numbers and comparisons exclude the operating results of Fox Electronics Ltd. except in historical data where specified. As we generated a meaningful increase in revenues of 8.7%, we were able to expand gross profit margins for this fiscal year from 26.2% to 31.0%, an increase of 28.7% year over year. This gross profit margin expansion generated a 49% increase in aftertax earnings which, with the added benefit of a 10.3% reduction in shares outstanding, resulted in a 64.3% increase in earnings per share of $0.46 versus $0.28 for the previous fiscal year."
Outlook
Ordway added, "As we look forward, we continue to see opportunities for growth in our markets for military, medical, commercial and industrial displays. Based upon the current level of order booking for orders deliverable in fiscal 2013 and beyond, I believe that improvement in VDC's revenues for fiscal 2013 will be in the same approximate percentage range as we saw in fiscal 2012. During this last fiscal year, the Company has succeeded in closing 2 of the 3 remaining loss generating operations referred to previously and is anticipating a near-term closing on the sale of the physical real estate of the PA location which will further reduce costs.
Ordway further stated, "As we continue to eliminate our non-core assets and the Company becomes a "pure play" in providing our selected military, medical, commercial and industrial markets with high end specialty displays and assemblies, we expect to continue to expand profit margins on the remaining product lines. Based upon achieving our revenue goals and expanded margins for fiscal 2013, we project an annual increase in per share earnings of 20% to 30% or $0.55 - $0.60 per share, versus $0.46 in fiscal 2012, on approximately 7.5 million shares outstanding for the 2013 fiscal year. The larger portion of the fiscal 2013 annual earnings is expected to occur within the final 2 quarterly reporting periods based upon current backlog delivery schedules and anticipated ordering patterns."
Shareholder Letters
"GOOD MORNING & WELCOME"
"TODAY'S MEETING REPRESENTS THE 27TH ANNUAL MEETING OF VIDEO'S LIFE AS A PUBLIC COMPANY SINCE THE COMPANY IPO IN JANUARY OF 1985. IT IS VIDEO'S 37th YEAR OF EXISTENCE AS A SPECIALTY DISPLAY COMPANY."
"ALTHOUGH THE MEETINGS ARE DESIGNED TO BE INFORMAL, THERE ARE STILL CERTAIN FORMALITIES THAT MUST BE ADHERED TO. THE ONLY ITEM ON THE AGENDA TO BE VOTED ON THIS YEAR IS THE ELECTION OF THE NOMINEES TO SERVE ON THE COMPANY'S BOARD OF DIRECTORS FOR THE ENSUING YEAR. THE COMPANY IS SEEKING TO ADD THE EXPERIENCE OF SEASONED PROFESSIONALS IN FIELDS OF LAW, ACCOUNTING AND BUSINESS ACUMEN INTO THE DECISION MAKING PROCESS OF THE BOARD".
"TO THAT END, WE HAVE NOMINATED ATTORNEY DAVID COOPER, WHO HAS SERVED AS A LEGAL ADVISOR TO THE COMPANY FOR THE PAST NEARLY 30 YEARS. WE HAVE ALSO NOMINATED MR. ROGER LUSBY, THE MANAGING PARTNER OF FRAZIER AND DEETER LLC IN ALPHARETTA, GA. THE THIRD NEW NAME ON THE BALLOT THIS YEAR IS MR. GREG OSBORN WHO ALSO SERVES AS THE CHIEF FINANCIAL OFFICER OF VDC."
"I THINK THAT EVERYONE WHO FOLLOWS VIDEO DISPLAY CORPORATION, WHETHER FROM A PROFESSIONAL, BUSINESS OR INVESTMENT ASPECT, WILL ALL AGREE THAT THE COMPANY HAS PROGRESSED SUBSTANTIALLY FROM WHERE WE WERE WHEN WE HELD OUR LAST ANNUAL MEETING. WE EXPECT TO CONTINUE THAT PROGRESS INTO THE YEAR AHEAD. TWO OF THE LARGEST DRAINS ON CORPORATE PROFITS HAVE BEEN ELIMINATED IN THE LAST 6 MONTHS AND OUR BOTTOM LINE NUMBERS REFLECT THOSE ELIMINATIONS. THAT DOES NOT MEAN THAT WE CAN EASE UP. WE STILL HAVE A COUPLE OF LOSING OPERATIONS THAT NEED TO BE DISPOSED OF TO CREATE A CLEANER MORE PROFITABLE COMPANY." Full Letter
Comments & Business Outlook
Company CEO Ron Ordway stated, "Fiscal 2010 , especially the 4th quarter ended February 28, 2010, represented a dramatic positive turn in Video Display's revenue and profit results as reflected in the above reported financial numbers. The major upswing in revenue in the fourth quarter of $3.2 million to $19.7 million resulted in a 4% increase in the gross profit martin. We were also able to control operating expenses in the quarter with a reduction of 9%, even though revenues were 20% higher, through a $2.5 million expense reduction program implemented in the beginning of fiscal 2010." He further stated, "With the strong 4th quarter, the Company achieved its annual guidance of $0.10 to $0.12 in earnings per share for fiscal 2010.
Based upon the current level of order booking, I believe that VDC's revenues for fiscal 2/28/2011 will be in the range of $78 million to $82 million or an increase of 11% - 15% above revenues reported for fiscal 2010. Although we expect to see higher interest rates on corporate debt as well as higher levels of operating expenses, this should be offset by expanded gross profit margins on increased volume and should result in more than a doubling of Earnings Per Share for the full year in fiscal 2011."
