POWAY, CA, Mar 29, 2012 (MARKETWIRE via COMTEX) —
ALDILA, INC. (otcqx:ALDA) (pinksheets:ALDA) announced today net
sales of $11.9 million and a net loss of $4.5 million ($0.83 loss per
share) for the three months ending December 31, 2011 as compared to
net sales of $12.0 million and a net loss of $403,000 ($0.08 loss per
share) for the comparable period in 2010. The Company had
approximately $451,000 in one-time charges included in cost of sales
related to Archery inventories as the Company completed the final
transition of Archery manufacturing to its Vietnam facility. Included
in the provision for income taxes in 2011 was tax due in the amount
of $2.5 million for a deemed tax dividend under U.S. tax law related
to the repatriation of foreign earnings from the Company’s China
operations. Without the one-time charges and the deemed tax dividend,
the Company would have had a net loss of $1.7 million or ($0.31 loss
per share). Although this has been a challenging year, we are
encouraged our backlog as of December 31, 2011 of $11.4 million is a
33% increase sequentially from our backlog as of September 30, 2011
and an increase of 106% as compared to our backlog as of December 31,
2010.
For the twelve months ended December 31, 2011, the Company’s net
sales were $48.0 million and a net loss of $5.9 million ($1.10 loss
per share) as compared to net sales of $54.7 million and net income
of $2.3 million ($0.43 income per share) for the comparable period in
2010. As mentioned above, the Company had one-time charges and a
deemed tax dividend in 2011. In 2010, the Company realized a tax
benefit of $1.0 million dollars related to the Company’s unrecognized
tax positions previously taken. The Company’s pro forma results in
2011 absent such one-time charges and deemed tax dividend would have
been a net loss of $3.1 million or ($0.58 loss per share) as compared
to pro forma results in 2010 absent the tax benefit of net income of
$1.2 million or ($0.23 income per share).
“Our Golf shaft sales and margins during the quarter were impacted by
operational issues that lowered our factory yields and one-time
charges as we fully transitioned our Archery production to Vietnam
during the quarter. We believe the majority of these issues are
behind us. All in all, 2011 was a disappointing year as we struggled
during the year with lower than normal golf shaft volumes due to a
generally weak golf equipment market. We have started the year with
our factories busy and our backlog strong and believe we have
improved our market share position with the number of new programs we
have been awarded,” said Peter R. Mathewson, Chairman and Chief
Executive Officer.
“On the PGA Tour, 2011 will go down as one of our best years ever.
Aldila high performance graphite shafts were used to win 13 events
during the year. Our shafts were once again the shafts of choice for
the majority of players on Tour according to the Darrell Survey.
Their weekly wood and hybrid shaft manufacturer reports confirm
Aldila as the number one graphite shaft in play at 84% of all the PGA
Tour events in 2011. Players who used Aldila shafts dominated the
year end statistics. The number one and two players in the World Golf
Rankings play Aldila shafts, the 2011 PGA Money list leader, Top-10
Finishes Leader, Scoring Average Leader, Driving Accuracy Leader and
Proximity to the Hole Leader all played Aldila shafts during 2011,”
Mr. Mathewson said.
“Our Composite Materials Division net sales for the fourth quarter of
2011 were up 12% versus the comparable quarter of 2010 and for the
year ended December 31, 2011 net sales were up 18% versus the year
ended December 31, 2010. The Company was able to increase sales to
non-recreational accounts by 49% for the year ended December 31, 2011
as compared to the comparable period in 2010. Sales to recreational
customers grew by 11% for same time periods. The Company has achieved
significant growth over the last several years in this Division and
believes that we will continue to grow sales in this Division. The
Company has been successful in attempts to diversify this business
into more non-recreational programs and has been able to grow the
sales in this area by 254% when comparing annual sales in 2011 versus
annual sales in 2008. Over that same time period sales for
recreational programs grew by 51%. We hope to continue to achieve
steady growth in the non-recreational programs and recreational
programs,” said Mr. Mathewson.
“Our Victory Archery sales grew by 23% during 2011 versus the net
sales achieved in 2010, when they were previously owned by Miramar
Strategic Ventures LLC (“MSV”), and are poised for significant growth
in 2012. We spent all of 2011 transitioning production to our Vietnam
factory and have successfully completed that task. Behind us are the
higher costs we incurred in Mexico during 2011, under the contract
manufacturing arrangement we had with MSV, the higher inventory
carrying costs of the purchased inventory due to the acquisition at
the end of 2010, and the expense of setting up the manufacturing at
our facility in Vietnam. At the recent Archery Trade Association
Show, the largest of its kind in the industry, Victory introduced
some of the most innovative arrow offerings of any of our
competitors. Our new VAP VooDoo(TM) combines an ultra small diameter
shaft with our exclusive Rail Ryder Technology to create the fastest,
most accurate cross bow bolt available. We also introduced Victory
ICE(TM), the slickest arrow coating available on the market today.
This dry slick finish allows for 60% less pulling effort when
removing the arrow from a target, increased penetration, increased
flight speed and improves the appearance of the arrow as well. This
revolutionary new arrow coating sets Victory apart from all other
arrow brands,” Mr. Mathewson said.
This press release contains forward-looking statements based on our
expectations as of the date of this press release. These statements
necessarily reflect assumptions that we make in evaluating our
expectations as to the future. Forward-looking statements are
necessarily subject to risks and uncertainties. Our actual future
performance and results could differ from that contained in or
suggested by these forward-looking statements as a result of a
variety of factors. Our filings with the OTC Disclosure and News
Service and the Securities and Exchange Commission (for filings prior
to move to OTCQX U.S. Premier) present a detailed discussion of the
principal risks and uncertainties related to our future operations,
in particular our Annual Report for the year ended December 31, 2011,
under “The nature of issuer’s business” in Part C, Item VIII, and
“Management’s Discussion and Analysis or Plan of Operation” in Part
C, Item XVI and Quarterly Reports and Current Reports, all of which
can be obtained on the OTCQX U.S. Premier website, which can be found
at
www.otcqx.com .
The forward-looking statements in this press release are particularly
subject to the risks that:
-- consumer discretionary spending will be flat or decline, which could
have a material impact on our business;
-- our product offerings, including the NV(R), VS Proto(TM),
DVS(R), VooDoo(R) and RIP(R) shaft lines and product
offerings outside the golf industry, will not achieve or maintain
success with consumers or customers;
-- we will not maintain or increase our market share at our principal
customers;
-- demand for clubs manufactured by our principal customers will decline,
thereby affecting their demand for our shafts;
-- demand for composite materials by our principal customers will decline
or fail to continue to grow;
-- the market for graphite shafts will continue to be extremely
competitive, affecting selling prices and profitability;
-- our international operations will be adversely affected by political
instability, currency fluctuations, export/import regulations or other
risks typical of multi-national operations, particularly those in less
developed countries;
-- the Company will not be able to acquire adequate supplies of carbon
fiber at reasonable market prices;
-- acts of terrorism, natural disasters, or disease pandemics interfere
with our manufacturing operations or our ability to ship our finished
products.
For additional information about Aldila, Inc., please go to the
Company’s website at
www.aldila.com .
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, December 31,
2011 2010
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 477 $ 3,400
Accounts receivable 6,328 6,157
Inventories 14,209 10,779
Deferred tax assets 717 646
Prepaid expenses and other current assets 655 604
------------- -------------
Total current assets 22,386 21,586
PROPERTY, PLANT AND EQUIPMENT 11,157 11,748
DEFERRED TAXES 1,824 1,737
OTHER NON-CURRENT ASSETS 57 107
INTANGIBLE ASSETS 1,193 1,311
GOODWILL 248 248
------------- -------------
TOTAL ASSETS $ 36,865 $ 36,737
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 6,790 $ 3,839
Income taxes payable 90 62
Accrued expenses 2,456 2,383
Short term debt 2,800 750
Other current liability 758 262
------------- -------------
Total current liabilities 12,894 7,296
LONG-TERM LIABILITIES:
Deferred rent 78 109
Other long-term liabilities 1,746 1,470
------------- -------------
Total liabilities 14,718 8,875
------------- -------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, $.01 par value; authorized
5,000,000 shares; no shares issued - -
Common stock, $.01 par value; authorized
30,000,000 shares; issued and outstanding
5,387,743 shares as of September 30, 2011
and 5,349,863 shares as of December 31,
2010 53 53
Additional paid-in capital 45,321 45,159
Accumulated deficit (23,227) (17,350)
------------- -------------
Total stockholders' equity 22,147 27,862
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 36,865 $ 36,737
============= =============
ALDILA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
Three months ended Twelve months ended
December 31, December 31,
-------------------- --------------------
2011 2010 2011 2010
--------- --------- --------- ---------
NET SALES $ 11,880 $ 11,966 $ 48,040 $ 54,710
COST OF SALES 11,276 9,506 39,511 39,413
--------- --------- --------- ---------
Gross profit 604 2,460 8,529 15,297
--------- --------- --------- ---------
SELLING, GENERAL AND
ADMINISTRATIVE 2,835 2,413 11,014 10,897
RESEARCH & DEVELOPMENT 750 681 3,022 2,841
--------- --------- --------- ---------
Operating (loss) income (2,981) (634) (5,507) 1,559
--------- --------- --------- ---------
OTHER INCOME (EXPENSE):
Interest income 2 3 6 8
Interest expense (17) (2) (30) (34)
Other, net (76) (22) (165) (9)
--------- --------- --------- ---------
(LOSS) INCOME BEFORE INCOME
TAXES (3,072) (655) (5,696) 1,524
PROVISION (BENEFIT) FOR INCOME
TAXES 1,413 (252) 181 (741)
--------- --------- --------- ---------
NET (LOSS) INCOME $ (4,485) $ (403) $ (5,877) $ 2,265
========= ========= ========= =========
NET (LOSS) INCOME PER COMMON
SHARE $ (0.83) $ (0.08) $ (1.10) $ 0.43
========= ========= ========= =========
NET (LOSS) INCOME PER COMMON
SHARE, ASSUMING DILUTION $ (0.83) $ (0.08) $ (1.10) $ 0.43
========= ========= ========= =========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 5,388 5,247 5,363 5,219
========= ========= ========= =========
WEIGHTED AVERAGE NUMBER OF
COMMON AND COMMON EQUIVALENT
SHARES 5,388 5,247 5,363 5,251
========= ========= ========= =========
ALDILA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
(In thousands)
Twelve months ended
December 31,
------------------------
2011 2010
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income $ (5,877) $ 2,265
Depreciation and amortization 2,063 1,738
Stock-based compensation 160 191
Loss on disposal of fixed assets 53 18
Changes in working capital items, net (184) (300)
----------- -----------
Net cash (used for) provided by operating
activities (3,785) 3,912
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment (1,102) (1,180)
Purchases of intangible assets (90) -
Proceeds from sales of property, plant and
equipment 2 16
Acquisition of Victory Archery - (2,300)
----------- -----------
Net cash used for investing activities (1,190) (3,464)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments for term loan - (3,167)
Borrowings against line of credit 13,762 750
Payments for line of credit (11,712) (300)
Proceeds from issuance of common stock 2 15
Tax expense associated with cancellation of
stock options - (139)
Dividend payments - (1,311)
----------- -----------
Net cash provided by (used for) financing
activities 2,052 (4,152)
----------- -----------
NET DECREASE IN CASH AND CASH EQUIVALENTS (2,923) (3,704)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3,400 7,104
----------- -----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 477 $ 3,400
=========== ===========
Investor/Media Contacts:
Scott M. Bier, Vice President, CFO
Sylvia J. Castle, Investor Relations
Aldila, Inc.
(858) 513-1801
SOURCE: Aldila, Inc.
Copyright 2012 Marketwire, Inc., All rights reserved.
Source Article from http://www.marketwatch.com/story/aldila-reports-fourth-quarter-and-year-end-2011-financial-results-2012-03-29
