ALEXANDRIA, Va., Aug. 5 /PRNewswire-FirstCall/ -- Halifax Corporation of Virginia (NYSE Amex: HX) today announced its financial results for the quarter June 30, 2009.
Revenues for of three months ended June 30, 2009 were $7.6 million compared to $9.0 million for the prior year. The decrease in revenues in 2009 was attributable to the termination of certain large nation-wide enterprise maintenance contracts.
The Company reported operating income of $134,000, compared to operating income of $317,000 for the same period last year. The reduction in operating income was primarily due to lower revenues due to lengthening sales cycles, somewhat offset by lower operating costs.
The Company reported net income of $183,000, or $.06 per basic and diluted share.
Charles McNew, President and Chief Executive Officer, stated, "We are pleased to report another profitable quarter. While certain legacy revenue sources for a few maintenance customers are declining, our enterprise logistics solutions revenue is continuing to grow on a profitable basis."
"We believe that this supply chain services program, which is affording the company multiple higher margin business process outsourcing opportunities, will position the company for improving long term performance."
The Company will host a conference call for investors at 11 a.m. EDT on Wednesday, August 5, 2009, to review the financial and operational results for the quarter. The conference call phone number is 800-771-6692 for U.S. callers and 212-231-2903 for international callers. The conference call replay will be available from 1 p.m. EDT on Wednesday, August 5, 2009, to 1 p.m. EDT on Thursday, August 6, 2009. The replay number is 800-633-8284 for U.S. callers and 402-977-9140 for international callers. The reservation number is 21433302.
Founded in 1967, Halifax Corporation of Virginia is an enterprise logistics and maintenance solutions company providing a wide range of technology services to commercial and government customers throughout the United States. The Company's principal products are enterprise logistics solutions and high availability hardware maintenance services. More information on Halifax can be found at www.hxcorp.com.
Certain statements made by the Company which are not historical facts may be considered forward-looking statements, including, without limitation, statements as to trends, management's beliefs, views, expectations and opinions, which are based upon a number of assumptions concerning future conditions that ultimately may prove to be inaccurate. Such forward-looking statements are subject to risks and uncertainties and may be affected by various factors described in the Risk Factors section in the Company's Annual Report on Form 10-K that may cause actual results to differ materially from those in the forward-looking statements. For further information that could affect the Company's financial statements, please refer to the Company's reports filed with the Securities and Exchange Commission.
Halifax Corporation
Summary Financial Data
(in 000's except per share amounts)
For the three months ended June 30,
Statements of operations 2009 2008
Revenues $7,662 $9,017
Cost of services 6,569 7,504
Gross profit 1,093 1,513
Selling, marketing, general & administrative 959 1,196
Operating Income 134 317
Other income 152 -
Interest expense (83) (83)
Income before income taxes 203 234
Income tax expense 20 31
Net income $183 $203
Earnings per common share - basic and diluted $0.06 $0.06
Weighted average number of common shares
outstanding:
Basic 3,175 3,175
Diluted 3,178 3,175
June 30, March 31,
Balance Sheets 2009 2009
Current assets
Cash $841 $766
Trade accounts receivable, net 5,523 6,794
Inventory, net 2,661 2,588
Prepaid expenses and other current assets 256 208
Total current assets 9,281 10,356
Property and equipment, net 643 727
Goodwill and intangibles, net 3,221 3,292
Other assets 42 56
Total assets $13,187 $14,431
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $3,758 $4,546
Income tax payable 30 67
Deferred maintenance revenue 3,143 2,072
Bank debt 963 2,545
Auxiliary line of credit - -
Current portion of long-term debt 268 331
Total current liabilities 8,162 9,561
Other long-term debt 120 141
Subordinated debt - affiliate 1,000 1,000
Deferred income 25 40
Total liabilities 9,307 10,742
Stockholders' equity 3,880 3,689
Total liabilities and stockholders' equity $13,187 $14,431
