UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 9, 2012
(Exact name of registrant as specified in its charter)
|
Delaware
|
0-21121
|
06-1456680
|
|
(State or other jurisdiction of incorporation)
|
(Commission file number)
|
(I.R.S. employer identification no.)
|
|
One Hamden Center
|
|
|
2319 Whitney Ave, Suite 3B, Hamden, CT
|
06518
|
|
(Address of principal executive offices)
|
(Zip Code)
|
(203) 859-6800
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240-14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
The following information is being furnished pursuant to Item 2.02 “Results of Operations and Financial Condition” of Form 8-K. Such information, including the Exhibit attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
On May 9, 2012, TransAct Technologies Incorporated (“TransAct”) issued a press release announcing its financial results for the quarter ended March 31, 2012. A copy of the press release is furnished as Exhibit 99.1 to this report.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits:
|
Exhibit
|
Description
|
|
|
99.1
|
Press Release dated May 9, 2012 of TransAct Technologies Incorporated
|
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
TRANSACT TECHNOLOGIES INCORPORATED
|
||||
|
By:
|
/s/ Steven A. DeMartino
|
|||
|
Steven A. DeMartino
|
||||
|
President, Chief Financial Officer, Treasurer and Secretary
|
||||
Date: May 9, 2012
3
Exhibit 99.1
TRANSACT TECHNOLOGIES REPORTS FIRST QUARTER 2012 RESULTS
HAMDEN, CT – May 9, 2012 – TransAct Technologies Incorporated (NASDAQ: TACT), a global leader in market-specific solutions, including printers, terminals, software and other products for transaction-based and other industries, today announced financial results for the three-month period ended March 31, 2012. Summary results for the period are as follows:
|
Three months ended March 31,
|
|||||||||||||
|
(in $000s, except EPS)
|
2012
|
2011
|
% change
|
||||||||||
|
Net sales
|
$ | 17,559 | $ | 20,694 | -15.1 | % | |||||||
|
|
|||||||||||||
| Operating income | $ | 1,910 | $ | 2,788 |
-31.5
|
% | |||||||
| Net income | $ | 1,208 | $ | 1,825 |
-33.8
|
% | |||||||
| Diluted earnings per share | $ | 0.13 | $ | 0.19 |
-31.6
|
% | |||||||
Mr. Shuldman continued, “For the first quarter of 2012, domestic casino and gaming sales were up 63% over last year’s first quarter, benefiting from several new casino openings, continued market share gains and the first contribution of sales from our EPICENTRAL® Print System. International casino and gaming sales were up 21% from the prior-year period led by a strong performance in Europe and a resumption of printer shipments into Italy as the pace of installations of VLT gaming machines increased. Printrex printer sales for the first quarter of 2012 were $1.2 million. Banking and POS printer sales declined 5% compared to the first quarter of 2011 on lower POS sales due to the substantial completion of the McDonald’s rollout, partially offset by an increase in banking printer sales from a new customer win. Lottery sales were down 86% to $1.0 million as sales to GTECH returned to a more normalized level compared to a near-record level in the prior-year period. TransAct Services Group revenue declined 5% on a year-over-year basis, primarily due to lower sales of consumable products which were partially offset by higher service revenue. Finally, year-to-date through May 8, 2012, we purchased approximately 441,000 shares under our stock repurchase program, with most of the purchases occurring in the month of April.”
First Quarter 2012 Results
Revenue for the first quarter of 2012 was $17.6 million, a decrease of 15% compared to $20.7 million in the prior-year period. Gross margin for the first quarter of 2012 was 38.6%, an increase of 510 basis points compared to 33.5% in the prior-year quarter as the Company experienced a more favorable sales mix, as well as contributions from the higher-margin Printrex printers. Operating expenses were $4.9 million, an increase of $0.7 million from the prior-year period, driven mainly by ongoing expenses related to the Printrex acquisition and higher product development expenses. Operating expenses also included a restructuring charge of approximately $0.1 million for employee termination benefits and moving expenses related to the anticipated closing of the Printrex manufacturing facility in San Jose, California. The Company recorded net income in the first quarter of 2012 of approximately $1.2 million, or $0.13 per diluted share, compared to net income of approximately $1.8 million, or $0.19 per diluted share, in the prior-year period.
Commenting on the financial results, Steven A. DeMartino, President and Chief Financial Officer of TransAct Technologies said, “We are very proud of recording the highest quarterly casino and gaming market sales in TransAct’s history, as well as seeing significant gross margin expansion aided by higher-margin casino and gaming and Printrex printer sales. We expect continued strong contributions to our gross margins from these products for the remainder of 2012.”
2012 Outlook
Looking ahead, TransAct maintains its expectations of another year of revenue and earnings per share growth in 2012 compared to 2011. TransAct also continues to expect free cash flow (cash flow provided by operations less capital expenditures) of at least $7 million in 2012.
Liquidity and Capital Resources
As of March 31, 2012, the Company had approximately $7.9 million in cash and cash equivalents, and no debt obligations outstanding under its $20 million revolving credit facility. During the first quarter of 2012, TransAct repurchased 20,155 shares for approximately $0.1 million (average price of $7.20). Year-to-date through May 8, 2012, TransAct has repurchased approximately 441,000 shares for approximately $3.75 million (average price of $8.55) under its stock repurchase program. As of May 8, 2012, TransAct’s $15 million repurchase program allows the Company to repurchase up to $8.4 million in additional shares through May 2013.
Investor Conference Call / Webcast Details
TransAct will review detailed first quarter 2012 results during a conference call today at 4:30 PM EDT. The conference call-in number is 888-554-1430. A replay of the call will be available from 7:30 PM EDT on Wednesday, May 9 through midnight EDT on Wednesday, May 16 by telephone at 877-870-5176; passcode 1391004. Investors can also access the conference call via a live webcast on the Company's Web site at http://www.transact-tech.com. A replay of the call will be archived on that Web site for one week.
About TransAct Technologies Incorporated
TransAct Technologies Incorporated (NASDAQ: TACT) is a leader in developing and manufacturing market-specific solutions, including printers, terminals, software and other products for transaction-based and other industries. These industries include casino, gaming, lottery, banking, kiosk, point-of-sale, food safety, hospitality, oil and gas, and medical and mobile. Each individual market has distinct, critical requirements for printing and the transaction is not complete until the receipt and/or ticket is produced. TransAct printers and products are designed from the ground up based on market specific requirements and are sold under the Ithaca®, Epic, EPICENTRAL® and Printrex® product brands. TransAct distributes its printers through OEMs, value-added resellers, selected distributors, and direct to end-users. TransAct has over two million printers installed around the world. TransAct is committed to world-class printer service, spare parts and accessories required by a growing worldwide installed base of printers. Beyond printers, TransAct is a leader in providing printing supplies to the full transaction printer market. Through its TransAct Services Group, TransAct provides a complete range of supplies and consumables items used in the printing and scanning activities of customers in the hospitality, banking, retail, gaming, government and oil and gas exploration markets. Through its webstore, http://www.transactsupplies.com, and a direct selling team, TransAct addresses the on-line demand for these products. TransAct is headquartered in Hamden, CT. For more information, please visit http://www.transact-tech.com or call 203.859.6800.
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 are not limited to, the Company’s ability to successfully integrate the Printrex business with its existing operations; 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; introduction of new products into the marketplace by competitors; successful product development; dependence on significant customers; dependence on significant vendors; dependence on contractor manufacturers for the assembly of a large portion of our products in China; the ability to protect intellectual property; the ability to recruit and retain quality employees as the Company grows; dependence on third parties for sales outside the United States, including Australia, New Zealand, Europe, Latin America and Asia; economic and political conditions in the United States, Australia, New Zealand, Europe, Latin America and Asia; marketplace acceptance of new products; risks associated with foreign operations; availability of third-party components at reasonable prices; price wars or other significant pricing pressures affecting the Company's products in the United States or abroad; and risks associated with potential future acquisitions. Actual results may differ materially from those discussed in, or implied by, the forward-looking statements. The forward-looking statements speak only as of the date of this release and the Company assumes no duty to update them to reflect new, changing or unanticipated events or circumstances.
Contact
TransAct Technologies Incorporated
Steven DeMartino, President and Chief Financial Officer
203-859-6810
ICR Inc.
William Schmitt
203-682-8200
|
TRANSACT TECHNOLOGIES INCORPORATED
|
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||
|
(Unaudited)
|
||||||||
|
(In thousands, except per share amounts)
|
Three months ended
March 31,
|
|||||||
|
2012
|
2011
|
|||||||
|
Net sales
|
$ | 17,559 | $ | 20,694 | ||||
|
Cost of sales
|
10,781 | 13,762 | ||||||
|
Gross profit
|
6,778 | 6,932 | ||||||
|
Operating expenses:
|
||||||||
|
Engineering, design and product development
|
1,213 | 769 | ||||||
|
Selling and marketing
|
1,601 | 1,519 | ||||||
|
General and administrative
|
2,000 | 1,856 | ||||||
|
Business consolidation and restructuring
|
54 | - | ||||||
| 4,868 | 4,144 | |||||||
|
Operating income
|
1,910 | 2,788 | ||||||
|
Interest and other income (expense):
|
||||||||
|
Interest, net
|
2 | 4 | ||||||
|
Other, net
|
(24 | ) | 15 | |||||
| (22 | ) | 19 | ||||||
|
Income before income taxes
|
1,888 | 2,807 | ||||||
|
Income tax provision
|
680 | 982 | ||||||
|
Net income
|
$ | 1,208 | $ | 1,825 | ||||
|
Net income per common share:
|
||||||||
|
Basic
|
$ | 0.13 | $ | 0.19 | ||||
|
Diluted
|
$ | 0.13 | $ | 0.19 | ||||
|
Shares used in per share calculation:
|
||||||||
|
Basic
|
9,427 | 9,446 | ||||||
|
Diluted
|
9,532 | 9,702 | ||||||
|
SUPPLEMENTAL INFORMATION – SALES BY SALES UNIT:
|
||||||||
|
Three months ended
March 31,
|
||||||||
|
2012
|
2011
|
|||||||
|
Banking and point-of-sale
|
$ | 2,336 | $ | 2,462 | ||||
|
Casino and gaming
|
9,411 | 6,954 | ||||||
|
Lottery
|
1,030 | 7,542 | ||||||
|
Printrex
|
1,239 | - | ||||||
|
TransAct services group
|
3,543 | 3,736 | ||||||
|
Total net sales
|
$ | 17,559 | $ | 20,694 | ||||
|
TRANSACT TECHNOLOGIES INCORPORATED
|
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||
|
(Unaudited)
|
||||||||
|
March 31,
|
December 31,
|
|||||||
|
(In thousands)
|
2012
|
2011
|
||||||
|
Assets:
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 7,873 | $ | 6,863 | ||||
|
Accounts receivable, net
|
12,830 | 9,583 | ||||||
|
Inventories
|
11,822 | 14,151 | ||||||
|
Refundable income taxes
|
- | 446 | ||||||
|
Deferred tax assets
|
1,636 | 1,636 | ||||||
|
Other current assets
|
583 | 375 | ||||||
|
Total current assets
|
34,744 | 33,054 | ||||||
|
Fixed assets, net
|
3,146 | 3,358 | ||||||
|
Goodwill
|
2,621 | 2,518 | ||||||
|
Deferred tax assets
|
885 | 890 | ||||||
|
Intangible assets, net
|
2,724 | 2,861 | ||||||
|
Other assets
|
133 | 59 | ||||||
| 9,509 | 9,686 | |||||||
|
Total assets
|
$ | 44,253 | $ | 42,740 | ||||
|
Liabilities and Shareholders’ Equity:
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 2,844 | $ | 3,019 | ||||
|
Accrued liabilities
|
2,481 | 2,672 | ||||||
|
Deferred revenue
|
650 | 141 | ||||||
|
Total current liabilities
|
5,975 | 5,832 | ||||||
|
Deferred revenue, net of current portion
|
201 | 224 | ||||||
|
Deferred rent, net of current portion
|
347 | 357 | ||||||
|
Accrued acquisition consideration
|
680 | 680 | ||||||
|
Other liabilities
|
307 | 334 | ||||||
| 1,535 | 1,595 | |||||||
|
Total liabilities
|
7,510 | 7,427 | ||||||
|
Shareholders’ equity:
|
||||||||
|
Common stock
|
109 | 108 | ||||||
|
Additional paid-in capital
|
25,413 | 25,058 | ||||||
|
Retained earnings
|
22,821 | 21,613 | ||||||
|
Accumulated other comprehensive loss, net of tax
|
(60 | ) | (71 | ) | ||||
|
Treasury stock, at cost
|
(11,540 | ) | (11,395 | ) | ||||
|
Total shareholders’ equity
|
36,743 | 35,313 | ||||||
|
Total liabilities and shareholders’ equity
|
$ | 44,253 | $ | 42,740 | ||||