Henry Bros. Electronics, Inc. Reports Fourth Quarter and Year-End 2009 Results
FAIR LAWN, N.J., March 12 /PRNewswire-FirstCall/ -- Henry Bros. Electronics, Inc. (Nasdaq: HBE), a turnkey provider of technology-based integrated electronic security solutions, today announced results for the fourth quarter and year ended December 31, 2009.
The Company reported revenue of $13.7 million for the three months ended December 31, 2009, representing a 28% decrease from revenue of $19.1 million for the same period a year ago. Revenue was down in all regions, offset in part by an increase in Texas. The overall decline in revenue is due principally to the effects of the continuing credit freeze and economic downturn, which has had a significant negative impact on construction markets and capital spending patterns of commercial businesses, combined with a significant reduction in revenue from the Company's New Jersey region, as a result of the winding down of large projects that were not replaced by similar projects.
The Company reported a net loss of $687,950 or $0.12 per diluted share, for the fourth quarter ended December 31, 2009, compared to net income of $725,756, or $0.12 per diluted share, in the comparable period of 2008. The Company's net loss is principally due to a decline in revenues given the current economy. In addition, the Company's investment in the start up of a new office in Houston, the development of new internet-based service programs, along with process and training costs, also contributed to the net loss.
Revenue for the year ended December 31, 2009 was $55.1 million, representing a decrease of 11.6% from revenue of $62.4 million for the year ended December 31, 2008, stemming from the continued economic pressure described above. Partially offsetting this decline were increases in the Company's Texas and Colorado operations, which were up 12.4% on a combined basis, as well as an increase in revenue resulting from the Company's agreement with a division of L-3 Communications, which is part of L-3's project for the U.S. Marine Corp. Systems Command to deliver a Tactical Video Capture System ("TVCS"). The L-3 contract generated $3.5 million incremental revenue in 2009 over 2008.
The Company had a net loss for fiscal 2009 of $823,957, or $0.14 per diluted share, compared to net income of $1.6 million, or $0.26 per diluted share for 2008.
Jim Henry, CEO of Henry Bros. Electronics, stated "Though we remain optimistic that we will soon see a turnaround in our business, our entire management team was disappointed by our results for the fourth quarter and the full year 2009. The long term contractual nature of our business is such that we did not really begin to experience the full impact of the protracted recessionary climate until the second half of the year. This lag, coupled with unforeseeable delays in our TVCS project, made it increasingly difficult to forecast our performance. However, although the TVCS project has been moving slower than originally forecast, our contract is still in place, and while the timeline may have been moved further out, our participation and related forecasted revenue share from this project has not changed."
Henry concluded, "We were also impacted in 2009 by an increase in our SG&A, as we made strategic investments in our Texas region, the ninth fastest growing market in the country. We strongly believe in the value of the investment, and that it will prove to be a prudent move when commercial spending begins to rebound. Going forward, we expect our success to be tied to how our offerings, and the knowledge of our team, benefits and improves services within organizations. We have addressed this with an enhanced recruitment process and more intensive training of our sales staff. As we look to a profitable 2010, we are poised to take advantage of the coming economic rebound, with a more qualified and efficient team."
The Company's backlog as of December 31, 2009 was $28.0 million and $4.3 million above the $23.7 million at December 31, 2008.
Conference Call Information:
Henry Bros. Electronics will be hosting a conference call on March 15, 2010, at 11 a.m. ET. To participate on the call, please use the following number and conference code:
(888) 562-3356 (Domestic) |
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(973) 582-2700 (International) |
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Conference code: 58904818 |
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A replay of the call will be available from 3/15/2010 at 12 p.m. ET, through 4/15/2010 at 11:59 p.m. ET. To access the replay, please call (800) 642-1687 in the United States or (706) 645-9291 outside the United States. To access the replay, users will need to enter the following code: 58904818.
About Henry Bros. Electronics, Inc.
Henry Bros. Electronics (Nasdaq: HBE) provides technology-based integrated electronic security systems, services and emergency preparedness consultation to commercial enterprises and government agencies. The Company has offices in Arizona, California, Colorado, Maryland, New Jersey, New York, Texas and Virginia.
For more information, visit http://www.hbe-inc.com.
Safe Harbor Statement: Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading of risk factors listed in the Company's filings with the U.S. Securities and Exchange Commission. Henry Bros. Electronics Inc. does not assume any obligation to update the forward-looking information.
Investor Contacts: |
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Todd Fromer |
Jim Henry, Vice- Chairman & Chief Executive Officer |
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KCSA Strategic Communications |
Henry Bros. Electronics, Inc. |
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212-896-1215 |
201-794-6500 |
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Tables follow
HENRY BROS. ELECTRONICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Audited) (Unaudited)
--------------------- --------------------
Year ended Three months ended
December 31, December 31,
--------------------- --------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenue $55,105,469 $62,357,466 $13,716,240 $19,065,098
Cost of revenue 40,848,553 46,465,194 10,593,504 14,316,337
---------- ---------- ---------- ----------
Gross profit 14,256,916 15,892,272 3,122,736 4,748,761
Operating expenses: - -
Selling, general
& administrative
expenses 14,985,849 12,797,730 3,970,725 3,336,728
---------- ---------- --------- ---------
Operating (loss)
profit (728,933) 3,094,542 (847,989) 1,412,033
- -
Interest income 28,610 91,558 7,587 17,826
Other income 38,885 17,266 9,611 7,610
Interest expense (280,911) (271,290) (58,578) (62,079)
-------- -------- ------- -------
(Loss) income
before tax
expense (942,349) 2,932,076 (889,369) 1,375,390
Tax (benefit)
expense (118,392) 1,374,320 (201,419) 649,634
-------- --------- -------- -------
Net (loss) income $(823,957) $1,557,756 $(687,950) $725,756
========= ========== ========= ========
BASIC (LOSS) EARNINGS
PER COMMON SHARE:
---------------------
Basic (loss)
earnings per
common share $(0.14) $0.27 $(0.12) $0.12
====== ===== ====== =====
Weighted average
common shares 5,865,187 5,786,104 5,883,843 5,812,343
========= ========= ========= =========
DILUTED (LOSS)
EARNINGS PER
COMMON SHARE:
---------------------
Diluted (loss)
earnings per
common share $(0.14) $0.26 $(0.12) $0.12
====== ===== ====== =====
Weighted average
diluted common
shares 5,865,187 5,988,782 5,883,843 6,015,021
========= ========= ========= =========
SOURCE Henry Bros. Electronics, Inc.
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