Release Details
TransAct Technologies Reports 2015 Fourth Quarter and Full Year Results
-
Reports 2015 Fourth Quarter Revenue of
$12.1 Million and$0.07 GAAP Diluted EPS -
2015 Fourth Quarter Adjusted Diluted EPS Increases 133% to
$0.07 from$0.03 -
2015 Full-Year Revenue Rises 12% to
$59.7 Million -
2015 Full-Year GAAP Diluted EPS of
$0.39 -
Adjusted Diluted EPS for 2015 Full Year Rises to
$0.54 from$0.13
|
Summary of 2015 Q4 and Full Year Results (In millions, except per share and percentage data) |
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Three Months Ended |
Twelve Months Ended |
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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net sales | $ | 12.1 | $ | 12.3 | $ | 59.7 | $ | 53.1 | ||||||||
| Gross profit | $ | 5.0 | $ | 4.9 | $ | 25.0 | $ | 21.7 | ||||||||
| Gross margin | 41.5 | % | 39.9 | % | 41.9 | % | 40.9 | % | ||||||||
| Operating income (loss) | $ | 0.5 | $ | (4.8 | ) | $ | 4.5 | $ | (3.8 | ) | ||||||
| EBITDA(1) | $ | 0.8 | $ | (4.5 | ) | $ | 5.9 | $ | (2.4 | ) | ||||||
| Net income (loss) | $ | 0.5 | $ | (3.0 | ) | $ | 3.1 | $ | (2.4 | ) | ||||||
| Diluted earnings per share (loss) | $ | 0.07 | $ | (0.37 | ) | $ | 0.39 | $ | (0.29 | ) | ||||||
| Adjusted operating income(2) | $ | 0.5 | $ | 0.2 | $ | 6.2 | $ | 1.7 | ||||||||
| Adjusted EBITDA(1) | $ | 0.9 | $ | 0.6 | $ | 8.1 | $ | 3.6 | ||||||||
| Adjusted net income(2) | $ | 0.5 | $ | 0.2 | $ | 4.2 | $ | 1.1 | ||||||||
| Adjusted diluted earnings per share(2) | $ | 0.07 | $ | 0.03 | $ | 0.54 | $ | 0.13 | ||||||||
| (1) | EBITDA is defined as net income before net interest expense, income taxes, depreciation and amortization. A reconciliation of EBITDA to net income, the most comparable Generally Accepted Accounting Principles ("GAAP") financial measure, can be found attached to this release. Adjusted EBITDA is defined as net income before net interest expense, income taxes, depreciation, amortization and adjusted for share-based compensation and the impact of certain legal fees, settlement expenses and accrued contingent consideration as described later in this release. A reconciliation of Adjusted EBITDA to net income, the most comparable GAAP financial measure, can be found attached to this release. | |
| (2) | Reconciliations of GAAP financial measures to corresponding non-GAAP financial measures can be found attached to this release. |
"Restaurant and food service operators are increasingly recognizing the
unique functionality and value proposition of our AccuDate product
lineup as reflected in the consistent sales growth of our AccuDate 9700,
including a substantial recent rollout with a major quick service chain
operation, and growing sales of our AccuDate PRO following its
introduction in
"In our casino and gaming business, we remain focused on the growing
number of opportunities for our Epicentral promotion and bonusing system
while further expanding our domestic casino printer market share. The
features and reliability of our Epic® gaming printers and our commitment
to the highest levels of customer support are valued by operators as
reflected in the 40% year-over-year increase in domestic casino printer
sales in the 2015 fourth quarter. Epicentral, an easy to use solution
that allows casino operators to directly target their players by
printing coupons and promotions in real-time at the gaming device,
helping drive increased player visits and incremental play, is also
gaining traction with casino operators. Epicentral recently went live on
approximately 1,900 electronic gaming devices at
"We also expect to benefit from our recent agreement to integrate Epicentral with Aristocrat's Oasis 360 slot management system. With the technical integration now complete, we are working closely with Aristocrat's sales team to ensure we collectively optimize their extensive reach as they begin to demonstrate the features and functionality made possible by this agreement to their large North American gaming operator customer base."
Review of Balance Sheet and Capital Return Initiatives
As of
Summary of 2015 Fourth Quarter Operating Results
TransAct generated 2015 fourth quarter net sales of
Gross margin increased to 41.5% in the 2015 fourth quarter compared to
39.9% in the year-ago quarter, and gross profit rose slightly year over
year to
Total operating expenses for the 2015 fourth quarter were
TransAct recorded operating income of
2015 Fourth Quarter Conference Call and Webcast
TransAct is hosting a conference call and webcast today,
Interested parties may also access the conference call live on the
Non-GAAP Financial Measures
TransAct has provided adjusted non-GAAP financial measures because the Company believes that these amounts help investors and others more accurately assess the ongoing nature of TransAct's core operations. The adjusted non-GAAP measures contained in the tables included with this release exclude the effect in the applicable periods presented of certain non-GAAP adjustments. These items have been excluded from adjusted non-GAAP financial measures because management does not believe that they are representative of underlying trends in the Company's performance. Their exclusion provides investors and others with additional information to more readily assess the Company's operating results. The Company uses the non-GAAP financial measures internally to focus management on the results of the Company's core business. The presentation of this additional non-GAAP information is not considered superior to or a substitute for the financial information prepared in accordance with GAAP.
Adjusted operating income is defined as operating income adjusted for the impact of legal fees and settlement expenses related to the lawsuit with Avery Dennison Corporation and adjustments to accrued contingent consideration from the Printrex acquisition.
Adjusted net income is defined as net income adjusted for the tax-effected impact of legal fees and settlement expenses related to the lawsuit with Avery Dennison Corporation and adjustments to accrued contingent consideration from the Printrex acquisition.
Adjusted diluted earnings per share is defined as adjusted net income divided by diluted shares outstanding.
About
Forward-Looking Statements
Certain statements in this press release include forward-looking
statements. Forward-looking statements generally can be identified by
the use of forward-looking terminology, such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe" or "continue" or the
negative thereof or other similar words. All forward-looking statements
involve risks and uncertainties, including, but not limited to, customer
acceptance and market share gains, both domestically and
internationally, in the face of substantial competition from competitors
that have broader lines of products and greater financial resources; our
competitors introducing new products into the marketplace; our ability
to successfully develop new products; our dependence on significant
customers; our dependence on significant vendors; dependence on contract
manufacturers for the assembly of a large portion of our products in
- Financial tables follow -
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
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(In thousands, except per share amounts) |
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| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Net sales | $ | 12,116 | $ | 12,296 | $ | 59,676 | $ | 53,108 | ||||||||
| Cost of sales | 7,082 | 7,385 | 34,698 | 31,397 | ||||||||||||
| Gross profit | 5,034 | 4,911 | 24,978 | 21,711 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Engineering, design and product development | 1,105 | 868 | 3,599 | 4,302 | ||||||||||||
| Selling and marketing | 1,746 | 1,851 | 7,806 | 7,920 | ||||||||||||
| General and administrative | 1,702 | 1,967 | 7,367 | 7,756 | ||||||||||||
|
Legal fees and settlement expenses associated
with lawsuit |
- |
5,030 |
1,738 |
5,505 |
||||||||||||
| 4,553 | 9,716 | 20,510 | 25,483 | |||||||||||||
| Operating income (loss) | 481 | (4,805 | ) | 4,468 | (3,772 | ) | ||||||||||
| Interest and other income (expense): | ||||||||||||||||
| Interest, net | (5 | ) | (11 | ) | (28 | ) | (49 | ) | ||||||||
| Other, net | 3 | (22 | ) | 2 | (33 | ) | ||||||||||
| (2 | ) | (33 | ) | (26 | ) | (82 | ) | |||||||||
| Income (loss) before income taxes | 479 | (4,838 | ) | 4,442 | (3,854 | ) | ||||||||||
| Income tax provision (benefit) | (53 | ) | (1,798 | ) | 1,350 | (1,433 | ) | |||||||||
| Net income (loss) | $ | 532 | $ | (3,040 | ) | 3,092 | $ | (2,421 | ) | |||||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.07 | $ | (0.37 | ) | $ | 0.40 | $ | (0.29 | ) | ||||||
| Diluted | $ | 0.07 | $ | (0.37 | ) | $ | 0.39 | $ | (0.29 | ) | ||||||
| Shares used in per share calculation: | ||||||||||||||||
| Basic | 7,818 | 8,146 | 7,818 | 8,307 | ||||||||||||
| Diluted | 7,931 | 8,146 | 7,854 | 8,307 | ||||||||||||
| SUPPLEMENTAL INFORMATION - SALES BY SALES UNIT: | ||||||||||
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Three months Ended | Twelve Months Ended | ||||||||
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| 2015 | 2014 | 2015 | 2014 | |||||||
| Food safety, point-of-sale and banking | $ | 3,999 | $ | 2,164 | $ | 13,029 | $ | 9,308 | ||
| Casino and gaming | 4,518 | 5,003 | 21,755 | 22,731 | ||||||
| Lottery | 701 | 1,618 | 9,468 | 4,761 | ||||||
| Printrex | 229 | 897 | 1,381 | 3,910 | ||||||
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2,669 | 2,614 | 14,043 | 12,398 | ||||||
| Total net sales | $ | 12,116 | $ | 12,296 | $ | 59,676 | $ | 53,108 | ||
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| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
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| (In thousands) | 2015 | 2014 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,473 | $ | 3,131 | ||||
| Accounts receivable, net | 7,174 | 9,094 | ||||||
| Inventories | 11,296 | 11,806 | ||||||
| Deferred tax assets | 1,932 | 3,068 | ||||||
| Other current assets | 437 | 898 | ||||||
| Total current assets | 25,312 | 27,997 | ||||||
| Fixed assets, net | 2,507 | 2,438 | ||||||
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2,621 | 2,621 | ||||||
| Deferred tax assets | 1,213 | 1,068 | ||||||
| Intangible assets, net | 888 | 1,341 | ||||||
| Other assets | 28 | 26 | ||||||
| 7,257 | 7,494 | |||||||
| Total assets | $ | 32,569 | $ | 35,491 | ||||
| Liabilities and Shareholders' Equity: | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,642 | $ | 2,365 | ||||
| Accrued liabilities | 2,838 | 3,320 | ||||||
| Income taxes payable | 245 | 13 | ||||||
| Accrued lawsuit settlement expenses | - | 3,625 | ||||||
| Deferred revenue | 604 | 313 | ||||||
| Total current liabilities | 6,329 | 9,636 | ||||||
| Deferred revenue, net of current portion | 77 | 64 | ||||||
| Deferred rent, net of current portion | 189 | 172 | ||||||
| Other liabilities | 246 | 225 | ||||||
| 512 | 461 | |||||||
| Total liabilities | 6,841 | 10,097 | ||||||
| Shareholders' equity: | ||||||||
| Common stock | 112 | 111 | ||||||
| Additional paid-in capital | 28,921 | 28,167 | ||||||
| Retained earnings | 22,956 | 22,349 | ||||||
| Accumulated other comprehensive loss, net of tax | (80 | ) | (72 | ) | ||||
|
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(26,181 | ) | (25,161 | ) | ||||
| Total shareholders' equity | 25,728 | 25,394 | ||||||
| Total liabilities and shareholders' equity | $ | 32,569 | $ | 35,491 | ||||
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| RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING | ||||||||
| NON-GAAP FINANCIAL MEASURES | ||||||||
| (Unaudited, thousands of dollars, except percentages and per share amounts) | ||||||||
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Three months Ended |
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Reported |
Adjustments(1) |
Adjusted |
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| Operating expenses |
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$- |
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| % of net sales | 37.6 | % | 37.6 | % | ||||
| Operating income | 481 | - | 481 | |||||
| % of net sales | 4.0 | % | 4.0 | % | ||||
| Income before income taxes | 479 | - | 479 | |||||
| Income tax provision (benefit) | (53 | ) | - | (53 | ) | |||
| Net income | 532 | - | 532 | |||||
| Diluted net income per share |
|
$- |
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| (1) | No adjustments. |
|
Three months Ended |
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Reported |
Adjustments (2) |
Adjusted |
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| Operating expenses | $ | 9,716 |
( |
) | $ | 4,686 | ||||||
| % of net sales | 79.0 | % | 38.1 | % | ||||||||
| Operating income (loss) | (4,805 | ) | 5,030 | 225 | ||||||||
| % of net sales | (39.1 | )% | 1.8 | % | ||||||||
| Income (loss) before income taxes | (4,838 | ) | 5,030 | 192 | ||||||||
| Income tax provision (benefit) | (1,798 | ) | 1,761 | (37 | ) | |||||||
| Net income (loss) | (3,040 | ) | 3,269 | 229 | ||||||||
| Diluted net income (loss) per share | $ | (0.37 | ) | $ | 0.40 | $ | 0.03 | |||||
| (2) |
Adjustment includes |
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| RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING | ||||||||||||
| NON-GAAP FINANCIAL MEASURES | ||||||||||||
| (Unaudited, thousands of dollars, except percentages and per share amounts) | ||||||||||||
|
Twelve Months Ended |
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Reported |
Adjustments(3) |
Adjusted |
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| Operating expenses | $ | 20,510 | $ | (1,738 | ) | $ | 18,772 | |||||
| % of net sales | 34.4 | % | 31.5 | % | ||||||||
| Operating income | 4,468 | 1,738 | 6,206 | |||||||||
| % of net sales | 7.5 | % | 10.4 | % | ||||||||
| Income before income taxes | 4,442 | 1,738 | 6,180 | |||||||||
| Income tax provision | 1,350 | 608 | 1,958 | |||||||||
| Net income | 3,092 | 1,130 | 4,222 | |||||||||
| Diluted net income per share | $ | 0.39 | $ | 0.15 | $ | 0.54 | ||||||
| (3) |
Adjustments include |
|
Twelve Months Ended |
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|
Reported |
Adjustments (4) |
Adjusted |
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| Operating expenses | $ | 25,483 | $ | (5,445 | ) | $ | 20,038 | |||||
| % of net sales | 48.0 | % | 37.7 | % | ||||||||
| Operating income (loss) | (3,772 | ) | 5,445 | 1,673 | ||||||||
| % of net sales | (7.1 | )% | 3.2 | % | ||||||||
| Income (loss) before income taxes | (3,854 | ) | 5,445 | 1,591 | ||||||||
| Income tax provision (benefit) | (1,433 | ) | 1,906 | 473 | ||||||||
| Net income (loss) | (2,421 | ) | 3,539 | 1,118 | ||||||||
| Diluted net income (loss) per share | $ | (0.29 | ) | $ | 0.42 | $ | 0.13 | |||||
| (4) |
Adjustment includes (i) |
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| RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | |||||||||||||||
| NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (In thousands) |
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| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net income (loss) | $ | 532 | $ | (3,040 | ) | $ | 3,092 | $ | (2,421 | ) | |||||
| Interest (income) expense, net | 5 | 11 | 28 | 49 | |||||||||||
| Income tax provision (benefit) | (53 | ) | (1,798 | ) | 1,350 | (1,433 | ) | ||||||||
| Depreciation and amortization | 349 | 361 | 1,426 | 1,445 | |||||||||||
| EBITDA | 833 | (4,466 | ) | 5,896 | (2,360 | ) | |||||||||
| Share-based compensation expense | 111 | 64 | 488 | 506 | |||||||||||
|
Legal fees and settlement expenses associated
with lawsuit |
- |
5,030 |
1,738 |
5,505 |
|||||||||||
| Adjustment to accrued contingent consideration | - | - | - | (60 | ) | ||||||||||
| Adjusted EBITDA | $ | 944 | $ | 628 | $ | 8,122 | $ | 3,591 | |||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20160303006172/en/
Investor:
President and Chief Financial
Officer
203-859-6810
or
JCIR
212-835-8500 or tact@jcir.com
Source:
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