SCI Engineered Materials, Inc. ("SCI") (OTCQB: SCIA), a global
supplier and manufacturer of advanced materials for PVD thin film
applications that works closely with end users and OEMs to develop
innovative, customized solutions, today reported its financial
results for the three months ended June 30, 2013.
Dan Rooney, Chairman, President and Chief Executive Officer,
commented, "We exited the second quarter with increased optimism
based on solid bookings and improving market conditions. Order
backlog was $2.4 million at June 30, 2013, which represents a 52%
increase from the first quarter of this year. Our second quarter
gross profit margin was at the highest level since 2010 benefiting
from improved product mix. Specific actions we implemented earlier
this year to reduce costs resulted in lower operating expenses
sequentially and compared to the second quarter last year. These
expenses continue to be actively monitored and will be adjusted
going forward in response to product demand. We anticipate that our
financial results for the second half of 2013 will be stronger than
the first half of this year based on recent discussions with
customers concerning their sales plans. There are increasing signs
of positive developments in our markets and we are well-positioned
to exploit these growth opportunities."
Total revenue
Total revenue was $1,792,775 for the three months ended June 30,
2013, which is $359,173 above the first quarter of 2013 and
$910,953 below the second quarter 2012. The sequential quarter
benefited from a customer's resumption of shipments following their
inventory adjustment earlier this year. Second quarter 2013 revenue
compared to a year ago was impacted by lower cost of a high priced
raw material and lower volume.
Gross profit
Second quarter 2013 gross profit was $398,191 compared to
$173,599 for the first quarter 2013 and $523,032 for the second
quarter 2012. The sequential quarter increase is attributable to
improved product mix and cost controls, while the year-over-year
decline was primarily due to lower product volume. Gross profit
margin of 22.2% for the second quarter of 2013 was above both the
12.1% for the first quarter of 2013 and 19.3% for the second
quarter 2012.
Operating expense
Operating expense (marketing and sales, general and
administrative, and R&D expenses) declined to $436,822 for the
second quarter 2013 from $464,654 for the first quarter 2013 and
$508,259 for the second quarter 2012. Second quarter 2013 operating
expenses were below each of the prior periods principally due to
lower professional fees and lower sales compensation.
(Loss) Income Applicable to Common
Stock
There was a loss of $63,602, or $0.02 per share, for the second
quarter 2013 compared to a loss of $267,594, or $0.07 per share,
for the first quarter 2013 and income of $4,568, or breakeven per
share, for the second quarter 2012. The sequential quarter
difference was due to an increase in total revenue, improvement in
gross profit and lower operating expenses.
EBITDA
Second quarter 2013 EBITDA (Earnings before interest, income
taxes, depreciation and amortization) was $112,647 compared to
negative EBITDA of $89,953 for the first quarter 2013 and $159,997
of EBITDA for the second quarter 2012. Adjusted EBITDA, which
excludes non-cash stock based compensation, was $146,943 for the
second quarter 2013 versus negative $54,518 for the first quarter
2013 and $195,778 for the second quarter 2012.
About SCI Engineered Materials, Inc.
SCI Engineered Materials is a global supplier and manufacturer
of advanced materials for PVD thin film applications that works
closely with end users and OEMs to develop innovative, customized
solutions. Additional information is available at
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
anticipation that the second half of 2013 will be stronger than the
first half of this year based on discussions with customers and
initial implementation of plans by SCI's customers and increasing
signs of positive developments in SCI's markets. 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, 2012.
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,
2013 2012
------------ ------------
(UNAUDITED)
Current Assets
Cash $ 342,911 $ 630,819
Accounts receivable, less allowance for
doubtful accounts 506,332 453,302
Inventories 960,928 815,075
Prepaid expenses 102,791 209,422
------------ ------------
Total current assets 1,912,962 2,108,618
------------ ------------
Property and Equipment, at cost 7,578,987 7,483,480
Less accumulated depreciation (4,545,948) (4,254,302)
------------ ------------
3,033,039 3,229,178
------------ ------------
Other Assets 62,756 66,764
------------ ------------
TOTAL ASSETS $ 5,008,757 $ 5,404,560
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Short term debt $ 542,298 $ 537,937
Accounts payable 273,235 260,531
Customer deposits 386,204 313,745
Accrued expenses 161,609 194,218
------------ ------------
Total current liabilities 1,363,346 1,306,431
Long term debt 1,017,106 1,220,435
------------ ------------
Total liabilities 2,380,452 2,526,866
Commitments and contingencies
Total Shareholders' Equity 2,628,305 2,877,694
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 5,008,757 $ 5,404,560
============ ============
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND 2012
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2013 2012 2013 2012
----------- ----------- ----------- -----------
Product revenue $ 1,766,337 $ 2,647,217 $ 3,136,207 $ 4,461,759
Contract research
revenue 26,438 56,511 90,170 125,001
----------- ----------- ----------- -----------
1,792,775 2,703,728 3,226,377 4,586,760
----------- ----------- ----------- -----------
Cost of product revenue 1,372,455 2,134,110 2,577,939 3,648,000
Cost of contract
research revenue 22,129 46,586 76,648 100,583
----------- ----------- ----------- -----------
1,394,584 2,180,696 2,654,587 3,748,583
----------- ----------- ----------- -----------
Gross profit 398,191 523,032 571,790 838,177
Operating expense 436,822 508,259 901,476 998,662
----------- ----------- ----------- -----------
(Loss) income from
operations (38,631) 14,773 (329,686) (160,485)
Other (expense) income (18,971) (24,871) 10,566 (44,561)
----------- ----------- ----------- -----------
Loss before provision
for income taxes (57,602) (10,098) (319,120) (205,046)
Income tax benefit 38 20,704 - 25,889
----------- ----------- ----------- -----------
Net (loss) income (57,564) 10,606 (319,120) (179,157)
Dividends on preferred
stock (6,038) (6,038) (12,076) (12,076)
----------- ----------- ----------- -----------
(LOSS) INCOME APPLICABLE
TO COMMON SHARES $ (63,602) $ 4,568 $ (331,196) $ (191,233)
=========== =========== =========== ===========
Earnings per share -
basic and diluted
(Loss) income per common
share
Basic $ (0.02) $ 0.00 $ (0.09) $ (0.05)
=========== =========== =========== ===========
Diluted $ (0.02) $ 0.00 $ (0.09) $ (0.05)
=========== =========== =========== ===========
Weighted average shares
outstanding
Basic 3,835,997 3,811,997 3,832,964 3,808,964
=========== =========== =========== ===========
Diluted 3,835,997 3,821,528 3,832,964 3,808,964
=========== =========== =========== ===========
SCI ENGINEERED MATERIALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2013 AND 2012
(UNAUDITED)
2013 2012
------------ ------------
CASH (USED IN) PROVIDED BY:
Operating activities $ (37,311) $ 75,112
Investing activities 34,759 (549,403)
Financing activities (285,356) 205,271
------------ ------------
NET DECREASE IN CASH (287,908) (269,020)
CASH - Beginning of period 630,819 798,069
------------ ------------
CASH - End of period $ 342,911 $ 529,049
============ ============
SCI ENGINEERED MATERIALS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
THREE AND SIX MONTHS ENDED JUNE 30, 2013 AND JUNE 30, 2012
Three months ended Six months ended
June 30, June 30,
2013 2012 2013 2012
---------- ---------- ---------- ----------
Net (loss) income $ (57,564) $ 10,606 $ (319,120) $ (179,157)
Interest, net 18,659 24,871 39,122 44,561
Income taxes (38) (20,704) - (25,889)
Depreciation and
amortization 151,590 145,224 302,692 289,520
---------- ---------- ---------- ----------
EBITDA 112,647 159,997 22,694 129,035
Stock based compensation 34,296 35,781 69,731 70,878
---------- ---------- ---------- ----------
Adjusted EBITDA $ 146,943 $ 195,778 $ 92,425 $ 199,913
========== ========== ========== ==========
Contact: Robert Lentz (614) 876-2000
Grafico Azioni SCI Engineered Materials (QB) (USOTC:SCIA)
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Da Mag 2024 a Giu 2024
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