ALEXANDRIA, Va., Oct. 30 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the quarter ended
September 30, 2008.
Revenues for the second quarter of fiscal 2009 were $8.9 million versus
$11.9 for the same period in fiscal 2008. The revenue decline was primarily
attributable to the termination of certain large nationwide enterprise
maintenance contracts, including the loss of a large aeronautical
manufacturing customer.
Gross profit margin for the year's second quarter was $1.4 million, or 16%
of revenues, compared to $1.6 million or, 13% of revenues, for the same period
a year ago. Operating income was $347,000 for the quarter ended September 30,
2008 compared to $402,000 for the same period the prior year.
The Company reported net income of $227,000, or $ 0.07 per basic and
diluted share for the quarter ended September 30, 2008, compared to net income
of $202,000, or $ 0.06 per basic and diluted share, for the quarter ended
September 30, 2007.
Charles McNew, President and Chief Executive Officer, stated, "Our
profitability profile continues to improve. We have worked diligently to
drive down our costs of service delivery which combined with the mix of new
business is generating growing margins.
"Cash flow is improving quarter on quarter and we have returned to
positive working capital levels.
"While the economic environment remains difficult and uncertain, our new
service model, which has positioned the Company as a leader in global supply
chain solutions for the middle market, is generating a viable means for the
Company to return to market share expansion and long term growth."
For the six months ended September 30, 2008 revenues were $17.9 million
compared to $24.4 million for the same period last year. The gross profit
margin was $2.9 million, or 16% of revenues, for the first half of the current
year compared to $3.0 million or 12% of revenues for the first half of last
year. Operating income was $664,000 for the first half of fiscal 2009 versus
$722,000 for the same period a year ago. Net Income for the first half of the
current year was $430,000, or $ 0.14 per basic and diluted share, versus
$337,000, or $ 0.11 per basic and diluted share, for the first half of last
year.
The Company will host a conference call for investors at 11 a.m. EDT on
Thursday, October 30, 2008, to review the financial and operational results
for the quarter. The conference call phone number is 888-898-1327 for U.S.
callers and 706-679-5341 for international callers. The conference call
replay will be available from 1 p.m. EDT on Thursday, October 30, 2008, to 1
p.m. EDT on Friday, October 31, 2008. The replay number is 800-633-8284 for
U.S. callers and 402-977-9140 for international callers. The reservation
number is 21397925.
Founded in 1967, Halifax Corporation 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 http://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 For the six
months ended months ended
Statements of operations September 30, September 30,
(Unaudited) 2008 2007 2008 2007
Revenues $8,906 $11,925 $17,923 $24,386
Cost of services 7,505 10,370 15,009 21,349
Gross Profit 1,401 1,555 2,914 3,037
Selling, marketing, general &
administrative 1,054 1,153 2,250 2,315
Operating income 347 402 664 722
Other income 1 8 1 19
Interest expense (93) (188) (176) (379)
Income before income taxes 255 222 489 362
Income tax expense 28 20 59 25
Net income $227 $202 $430 $337
Earnings per common share - basic
and diluted $.07 $.06 $.14 $.11
Weighted average number of common shares
outstanding:
Basic 3,175 3,175 3,175 3,175
Diluted 3,175 3,179 3,177 3,180
Balance Sheets
September 30, 2008 March 31, 2008
(Unaudited)
Current assets
Cash $550 $232
Trade accounts receivable, net 6,120 10,206
Inventory, net 3,048 3,240
Prepaid expenses and other current assets 232 220
Total current assets 9,950 13,898
Property and equipment, net 804 1,001
Goodwill and intangibles, net 3,436 3,580
Other assets 99 111
Total assets $14,289 $18,590
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $4,033 $5,280
Deferred maintenance revenue 2,742 4,309
Current portion of long-term debt 284 276
Bank debt 2,689 4,448
Auxiliary line of credit - 60
Income taxes payable 93 35
Total current liabilities 9,841 14,408
Other long-term debt 177 325
Subordinated debt - affiliate 1,000 1,000
Deferred income 69 99
Total liabilities 11,087 15,832
Stockholders' equity 3,202 2,758
Total liabilities and stockholders' equity $14,289 $18,590
