Operating Income Continues Upward Trend;
Company Reports Quarterly EPS of $0.05 Versus $0.01 Last Year
ALEXANDRIA, Va., Feb. 14 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the third quarter ended
December 31, 2001.
Revenues for the three months ended December 31, 2001, were $13.2 million
compared to $14.7 million for the same quarter last year, a 10% decrease. The
revenue decline was due to a decrease in hardware sales associated with
several contracts.
The Company reported operating income of $264,000 for the third quarter of
this year compared to $254,000 for the same quarter of last year. For the
quarter ended December 31, 2001, net income was $109,000, or $0.05 per basic
and diluted share, compared to $23,000, or $0.01 per basic share and diluted
share, for the same quarter last year.
Charles McNew, president and chief executive officer, noted, "Our strategy
is paying off in the form of a growing portfolio of larger and longer-term
contracts, which are generating higher margins than our prior contract base.
As a result, we have generated sequential quarterly earnings growth this
fiscal year."
For the nine months ended December 31, 2001, revenues were $35.7 million
compared to $40.0 million for the same period last year. Operating income for
the nine months ended December 31, 2001, was $706,000, compared to $165,000
for the comparable period last year. Net income was $187,000, or $0.09 per
basic and diluted share, for the first nine months of this year compared to
$3.1 million, or $1.53 per basic share and $1.46 per diluted share, for the
first nine months of last year. Last year's results included the positive
effects of embezzlement recoveries, as well as income from and the gain on the
sale of its operational outsourcing division. Excluding embezzlement
recoveries of $1.8 million and income from and gains from discontinued
operations of $1.8 million, the Company would have reported a net loss of
$566,000 for the first nine months of last year.
According to McNew, "Our contract backlog has nearly doubled since the
beginning of the year from $37.5 million to more than $72 million. This
includes a number of new contracts in the retail, utility and health care
markets, as well as the growth in the federal government IT business. Our
sales pipeline, which feeds our backlog, is growing even more rapidly. Both
trends reflect our success in leveraging our strengths in our targeted
business niches and penetrating existing and new vertical markets for our IT
services and solutions business."
He concluded, "Given the counter cyclical nature of our enterprise
maintenance marketplace and the growing demand for our federal government IT
services, we remain cautiously optimistic about our near-term growth
prospects."
The Company will host a conference call for investors at 11 a.m. EST on
Thursday, February 14, 2002, to review the financial and operation results for
the quarter. The conference call phone number is 800-340-5803 for U.S.
callers and 212-993-0221 for international callers. The conference call
replay will be available from 1 p.m. EST on Thursday, February 14, 2002, to 1
p.m. EST on Friday, February 15. The replay number is 800-633-8284 for US
callers and 858-812-6440 for international callers. The reservation number is
20344579.
Founded in 1967, Halifax Corporation provides a wide range of information
technology services to commercial and government customers throughout the
United States. The Company's principal products are Enterprise Maintenance
Solutions, Seat Management/IT Solutions and Federal Communications Services.
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, 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 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 thousands, except share and per share amounts)
For the three months For the nine months
Statements of operations ended December 31, ended December 31,
2001 2000 2001 2000
Revenues $13,249 $14,733 $35,738 $40,065
Operating income 264 254 706 165
Interest expense (140) (216) (474) (686)
Embezzlement recovery - - - 1,821
Income tax expense (15) (15) (45) (45)
Income from continuing
operations 109 23 187 1,255
Income from discontinued
operations - - - 244
Gain on sale of
discontinued operations - - - 1,594
Net income $109 $23 $187 $3,093
Earnings per common
share - basic:
Continuing operations $.05 $.01 $.09 $.62
Discontinued
operations - - - .12
Gain on sale of
discontinued
operations - - - .79
$.05 $.01 $.09 $1.53
Earnings per common
share- diluted:
Continuing operations $.05 $.01 $.09 $.62
Discontinued
operations - - - .11
Gain on sale of
discontinued
operations - - - .73
$.05 $.01 $.09 $1.46
Weighted average number
of common shares
outstanding:
Basic 2,087,193 2,023,436 2,072,881 2,021,331
Diluted 2,090,664 2,023,436 2,073,756 2,191,979
December 31, March 31,
Balance Sheets 2001 2001
Current assets $13,836 $12,375
Non-current assets 5,097 5,591
Total assets $18,933 $17,966
Current liabilities $10,044 $12,477
Non- current liabilities 10,284 7,402
Total liabilities 20,328 19,879
Stockholders' deficit (1,395) (1,913)
Total liabilities and stockholders'
deficit $18,933 $17,966
SOURCE Halifax Corporation
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Related links:
http://www.hxcorp.com
CONTACT:
Investor Relations: Karen Vahouny of The
Qorvis Communications, +1-703-744-7809, or kvahouny@qorvis.com,
for Halifax Corporation
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