MINNEAPOLIS, April 5 /PRNewswire-FirstCall/ -- HEI, Inc. (Pink Sheets: HEII) (http://www.heii.com) today announced its financial results for its fiscal year 2009, which ended January 2, 2010.
Net sales for the 12-month period ended January 2, 2010 were $31,530,000 compared to the 16-month period ended January 3, 2009 of $55,751,000. The Company generated a net loss of ($1,558,000) for the 12-month period ended January 2, 2010 compared to a net income of $1,073,000 for the 16-month period ended January 3, 2009. Basic and diluted earnings per share were a loss of ($0.16) per share for the 12-month period ended January 2, 2010 compared to earnings of $0.11 per share for the 16-month period ended January 3, 2009.
HEI CEO, Mark B. Thomas, commented, "Although our financial results were much less than anticipated as we began fiscal year 2009, we made progress in adding new customers and new programs at all three of our operating divisions. We also reduced operating costs further and improved our balance sheet through the reduction of debt and tight fiscal controls. In short, we weathered the general economic downturn of 2009 and are continuing to make progress in rebuilding our operations for long-term growth. We continue to operate within our three primary goals: increase sales at all operating divisions; improve gross margins through cost management and increased customer value; and increase our customer base at all three operating divisions. We believe that the work we have done to focus our sales efforts and to build stronger customer relationships will be the basis for our future growth. Our expansion into the military and aerospace markets at our Victoria, Minnesota and Tempe, Arizona operations has opened up further opportunities for new programs and new relationships that were not previously available to us and are expected to aid in our future growth."
HEI presently plans to have its Fiscal Year 2009 Annual Report posted on its website by April 9, 2010. Please visit the website at http://www.heii.com/HEICorporate/NewsEvents/tabid/63/Default.aspx to download your PDF copy for a complete review of Fiscal Year 2009 comparative results.
HEI, Inc. designs, develops and manufactures ultra-miniature microelectronics, substrates, systems, and connectivity and software solutions for customers engaged in the medical, hearing, telecommunications, and industrial markets. HEI provides its customers with a single point of contact that can take an idea from inception to a fully functional and cost effective product utilizing innovative design solutions and by the application of state-of-the-art materials, processes and manufacturing capabilities.
Headquarters & Microelectronics Division |
PO Box 5000, 1495 Steiger Lake Lane, Victoria, MN 55386 |
|
-Advanced Medical Division |
4801 North 63rd Street, Boulder, CO 80301 |
|
-High Density Interconnect Division |
610 South Rockford Drive, Tempe, AZ 85281 |
|
FORWARD LOOKING INFORMATION
Information in this news release, which is not historical, includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue," and similar words. Statements contained in this press release, including the implementation of business strategies, growth of specific markets, improved results and the estimated HEI revenue, cash flow and profits, are forward looking statements. All of such forward-looking statements involve risks and uncertainties including, without limitation, continuing adverse business and market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI's suppliers, HEI's ability to satisfy financial or other obligations or covenants set forth in its financing agreements, adverse competitive developments, change in or cancellation of customer requirements, collection of receivables and outstanding debt, HEI's ability to control fixed and variable operating expenses, and other risks detailed in previous HEI SEC filings. Since HEI is no longer reporting to the SEC, readers are cautioned to weigh the potential for additional risk factors based on ongoing business activities and the current economic conditions in the world economy. The information set forth herein should be read in light of such risks. We undertake no obligation to update these statements to reflect ensuing events or circumstances, or subsequent actual results.
HEI, INC. |
||||
CONSOLIDATED BALANCE SHEETS |
||||
January 2, |
January 3, |
|||
2010 |
2009 |
|||
(In thousands, except share and per share data) |
||||
ASSETS |
||||
Current assets: |
||||
Cash and cash equivalents |
$ - |
$ 7 |
||
Accounts receivable, net of allowance for doubtful accounts of $130 and $77, respectively |
3,566 |
4,686 |
||
Inventories, net |
2,952 |
3,474 |
||
Deferred income taxes |
362 |
435 |
||
Other current assets |
455 |
835 |
||
Total current assets |
7,335 |
9,437 |
||
Property and equipment: |
||||
Land |
216 |
216 |
||
Building and improvements |
4,337 |
4,327 |
||
Fixtures and equipment |
24,140 |
23,964 |
||
Accumulated depreciation |
(23,025) |
(21,590) |
||
Net property and equipment |
5,668 |
6,917 |
||
Security deposit |
230 |
528 |
||
Other long-term assets |
388 |
408 |
||
Total assets |
$ 13,621 |
$ 17,290 |
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||
Current liabilities: |
||||
Checks issued in excess of cash in bank |
$ 395 |
$ 509 |
||
Current maturities of long-term debt |
551 |
1,026 |
||
Accounts payable |
1,750 |
1,434 |
||
Customer deposit liabilities |
228 |
73 |
||
Accrued liabilities |
945 |
1,391 |
||
Total current liabilities |
3,869 |
4,433 |
||
Deferred income taxes |
362 |
435 |
||
Other long-term liabilities, less current maturities |
1,934 |
1,870 |
||
Long-term debt, less current maturities |
4,240 |
5,923 |
||
Total other long-term liabilities, less current maturities |
6,536 |
8,228 |
||
Total liabilities |
10,405 |
12,661 |
||
Shareholders’ equity: |
||||
Undesignated stock; 5,000,000 shares authorized; none issued |
- |
- |
||
Convertible preferred stock, $.05 par; 167,000 shares authorized; 32,000 shares issued and outstanding; liquidation preference at $26 per share (total liquidation preference $832,000) |
2 |
2 |
||
Common stock, $.05 par; 20,000,000 shares authorized; 10,183,000 and 10,374,000 shares issued and 9,720,000 and 9,630,000 outstanding |
486 |
482 |
||
Paid-in capital |
28,096 |
27,955 |
||
Accumulated deficit |
(25,368) |
(23,810) |
||
Total shareholders’ equity |
3,216 |
4,629 |
||
Total liabilities and shareholders’ equity |
$ 13,621 |
$ 17,290 |
||
HEI, INC. |
||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||
Fiscal Periods Ended |
||||||
12 months |
16 months |
12 months |
||||
January 2, |
January 3, |
September 1, |
||||
2010 |
2009 |
2007 |
||||
(In thousands, except share and per share data) |
||||||
Net sales |
$ 31,530 |
$ 55,751 |
$ 38,384 |
|||
Cost of sales |
26,734 |
45,183 |
36,817 |
|||
Gross profit |
4,796 |
10,568 |
1,567 |
|||
Operating expenses: |
||||||
Selling, general and administrative |
5,074 |
7,212 |
5,653 |
|||
Research, development and engineering |
805 |
1,658 |
2,330 |
|||
Operating income (loss) |
(1,083) |
1,698 |
(6,416) |
|||
Interest expense |
(445) |
(836) |
(1,312) |
|||
Other income (expense), net |
(30) |
211 |
540 |
|||
Income (loss) from continuing operations before income taxes |
(1,558) |
1,073 |
(7,188) |
|||
Income tax provision |
- |
- |
- |
|||
Income (loss) from continuing operations |
(1,558) |
1,073 |
(7,188) |
|||
Loss from discontinued operations |
- |
- |
(217) |
|||
Gain on sale of discontinued operations |
- |
- |
1,748 |
|||
Net income (loss) |
$ (1,558) |
$ 1,073 |
$ (5,657) |
|||
Income (loss) per common share - basic and diluted: |
||||||
Continuing operations |
$ (0.16) |
$ 0.11 |
$ (0.75) |
|||
Discontinued operations |
- |
- |
0.16 |
|||
Net income (loss) |
$ (0.16) |
$ 0.11 |
$ (0.59) |
|||
Weighted average common shares outstanding: |
||||||
Basic and diluted |
9,699,000 |
9,575,000 |
9,522,000 |
|||
HEI, INC. |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
Fiscal Period Ended |
|||||||
12 months |
16 months |
12 months |
|||||
January 2, |
January 3, |
September 1, |
|||||
2010 |
2009 |
2007 |
|||||
(In thousands, except share and per share data) |
|||||||
Cash flow from operating activities: |
|||||||
Net income (loss) |
$ (1,558) |
$ 1,073 |
$ (5,657) |
||||
Adjustments to reconcile net income (loss) to cash flow from operating activities: |
|||||||
Depreciation and amortization |
2,005 |
2,234 |
1,989 |
||||
Change in accounts receivable allowance |
53 |
(29) |
(18) |
||||
(Gain) loss on disposal of property and equipment |
43 |
(51) |
4 |
||||
Gain on sale of discontinued operations |
- |
- |
(1,748) |
||||
Write off of former director loan |
- |
- |
17 |
||||
Stock based compensation expense |
145 |
196 |
185 |
||||
Changes in operating assets and liabilities: |
|||||||
Accounts receivable |
1,067 |
(208) |
4,211 |
||||
Inventories |
522 |
(214) |
3,108 |
||||
Other current assets |
308 |
(561) |
(25) |
||||
Accounts payable |
316 |
(1,781) |
(199) |
||||
Customer deposit liabilities |
155 |
42 |
- |
||||
Accrued liabilities |
(382) |
82 |
(569) |
||||
Net cash flow provided by operating activities |
2,674 |
783 |
1,298 |
||||
Cash flow from investing activities: |
|||||||
Additions to property and equipment |
(560) |
(3,024) |
(451) |
||||
Proceeds from the sale of assets |
5 |
52 |
177 |
||||
Additions to patents |
(38) |
(50) |
(10) |
||||
Security deposit |
- |
- |
24 |
||||
Proceeds from sale of discontinued operations |
- |
- |
2,953 |
||||
Net cash flow provided by (used in) investing activities |
(593) |
(3,022) |
2,693 |
||||
Cash flow from financing activities: |
|||||||
Checks written in excess of cash in bank |
(114) |
318 |
191 |
||||
Officer/former director note repayment |
- |
- |
51 |
||||
Payment of debt issuance costs |
(51) |
- |
(118) |
||||
Repayment of long-term debt |
(1,910) |
(1,125) |
(1,121) |
||||
Proceeds from long-term debt |
2,029 |
1,233 |
2,457 |
||||
Net proceeds (repayments) of long-term debt - revolving line of credit |
(2,042) |
1,643 |
- |
||||
Net borrowings (repayments) on line of credit |
- |
- |
(5,948) |
||||
Net cash flow provided by (used in) financing activities |
(2,088) |
2,069 |
(4,488) |
||||
Net increase (decrease) in cash and cash equivalents |
(7) |
(170) |
(497) |
||||
Cash and cash equivalents, beginning of year |
7 |
177 |
674 |
||||
Cash and cash equivalents, end of year |
$ - |
$ 7 |
$ 177 |
||||
Supplemental disclosures of cash flow information: |
|||||||
Interest paid |
$ 446 |
$ 803 |
$ 1,269 |
||||
Supplemental disclosures of non-cash financing and investing activities: |
|||||||
In Fiscal 2009, 2008 and 2007, the Company issued common stock for vested restricted stock awards of $4, $4 and $3, respectively |
|||||||
During Fiscal 2009, the Company utilized $298 of its security deposits towards the buy-out of select capital leases |
|||||||
During Fiscal 2009, the Company acquired an asset that was under a capital lease for $63 that was financed by the leasor over a 12-month period |
|||||||
SOURCE HEI, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article