WEST CALDWELL, N.J., May 17 /PRNewswire-FirstCall/ -- Merrimac Industries,
Inc. (Amex: MRM), a leader in the design and manufacture of RF Microwave
components, subsystem assemblies and micro-multifunction modules (MMFM(R)),
today announced results for the first quarter of 2005.
Sales for the first quarter of 2005 were $7,258,000, a 5.1 percent
decrease compared to first quarter of 2004 sales of $7,648,000. First quarter
2005 sales were lower primarily due to reduced currently shippable orders to
customers by contract shipment dates.
Operating income for the first quarter of 2005 was $182,000 compared to
operating income of $322,000 for the first quarter of 2004. Operating results
for the first quarter were lower as a result of decreased sales, offset by
lower operating expenses during the first quarter of 2005 compared to the
first quarter of 2004.
Net income for the first quarter of 2005 was $84,000 compared to net
income of $231,000 for the first quarter of 2004. Net income per diluted share
was $.03 for the first quarter of 2005, compared to net income per diluted
share of $.07 reported for the first quarter of 2004. Net income for the first
quarter of 2005 included a loss on the disposition of capital assets of
$36,000 or $.01 per share.
The backlog at the end of the first quarter of 2005 was $13.8 million, an
increase of $0.9 million or approximately 7.0 percent compared to the backlog
of $12.9 million at year-end 2004 and an increase of $0.4 million or 3.0
percent when compared to the backlog of $13.4 million at the end of the first
quarter of 2004. Orders received during the first quarter of 2005 totaled $8.2
million and were approximately 12.9 percent above first quarter 2005 sales.
Chairman and CEO Mason N. Carter commented, "The decrease in our
consolidated sales for the first quarter of 2005 compared to 2004 was tempered
by our successful efforts to diversify Filtran Microcircuits into wireless
base stations, automotive and defense applications, which raised its sales
approximately $300,000 as compared to the first quarter of 2004. This sales
increase, however, did not increase Filtran's contribution to consolidated
operating or net income as a higher Canadian dollar negatively impacted local
manufacturing and operating costs. This resulted in a $.01 per share loss for
this segment and a negative change of $.04 per share from the first quarter of
2004.
"Sales for our electronic components segment were reduced due to lower
orders in the first quarter of 2005 from satellite and defense customers and a
lower opening backlog at the beginning of 2005. The lower opening backlog
reflects delays in expected orders from defense customers during 2004. Higher
manufacturing yield and efficiencies and lower operating expenses for the
electronic components segment partially offset this segment's reduced
contribution from its lower sales to operating income and net income, allowing
us to achieve overall profitable operations for the first quarter of 2005, and
in fact, matching the per share performance of the first quarter of 2004 for
this segment."
Mr. Carter continued, "Other quarterly financial results reflecting
consistent performance include:
* Gross profit of 41.8 percent.
* Cash (including restricted cash) of $3.8 million exceeds the total of
current and long-term debt of $3.7 million.
* Working capital of $9.4 million and current ratio of 3.3 to 1.
* Orders booked of $8.2 million and a book-to-bill ratio of 1.13 to 1."
Investors are invited to participate in the financial results conference
call on Tuesday, May 17, 2005 at 3:00 p.m. (Eastern) by dialing 1-800-231-9012
(for International callers: 1-719-457-2617) ten minutes prior to the scheduled
start time, and reference the Merrimac Industries first quarter 2005
conference call. For those unable to participate, a replay will be available
for seven days by dialing 1-888-203-1112, or 1-719-457-0820 for international
callers, passcode number 9184550.
This conference call will also be broadcast live over the Internet by
logging on to the web at this address:
http://phx.corporate-ir.net/playerlink.zhtml?c=73209&s=wm&e=1069532
If you are unable to participate or listen to the live webcast, a link to
the archived webcast will be listed on the Merrimac Industries, Inc. website
http://www.merrimacind.com .
About Merrimac
Merrimac Industries, Inc. is a leader in the design and manufacture of RF
Microwave signal processing components, subsystem assemblies, and Multi-Mix(R)
micro-multifunction modules (MMFM(R)), for the worldwide Defense, Satellite
Communications (Satcom), Commercial Wireless and Homeland Security market
segments. Merrimac is focused on providing Total Integrated Packaging
Solutions(R) with Multi-Mix(R) Microtechnology, a leading edge competency
providing value to our customers through miniaturization and integration.
Multi-Mix(R) MMFM(R) provides a patented and novel packaging technology that
employs a platform modular architecture strategy that incorporates embedded
semiconductor devices, MMICs, etched resistors, passive circuit elements and
plated-through via holes to form a three-dimensional integrated module
applicable to High Power, High Frequency and High Performance mission-critical
applications. Merrimac Industries facilities are registered under ISO
9001:2000, an internationally developed set of quality criteria for
manufacturing operations.
Merrimac Industries, Inc. has facilities located in West Caldwell, NJ, San
Jose, Costa Rica and Ottawa, Ontario, Canada, and has approximately 230
co-workers dedicated to the design and manufacture of signal processing
components, gold plating of high-frequency microstrip, bonded stripline and
thick metal-backed Teflon (PTFE) micro-circuitry and subsystems providing
Total Integrated Packaging Solutions(R) for wireless applications. Merrimac
(MRM) is listed on the American Stock Exchange. Multi-Mix(R), Multi-Mix
PICO(R), MMFM(R) and Total Integrated Packaging Solutions(R) are trademarks of
Merrimac Industries, Inc. For more information about Merrimac Industries,
Inc. and its Canadian subsidiary Filtran Microcircuits Inc., please visit
http://www.merrimacind.com and http://www.filtranmicro.com .
This press release contains statements relating to future results of the
Company (including certain projections and business trends) that are "forward-
looking statements" as defined in the Private Securities Litigation Reform Act
of 1995. Actual results may differ materially from those projected as a result
of certain risks and uncertainties. These risks and uncertainties include,
but are not limited to: risks associated with demand for and market acceptance
of existing and newly developed products as to which the Company has made
significant investments, particularly its Multi-Mix(R) products; general
economic and industry conditions; the possibilities of impairment charges to
the carrying value of our Multi-Mix(R) assets, thereby resulting in charges to
our earnings; slower than anticipated penetration into the satellite
communications, defense and wireless markets; the risk that the benefits
expected from the Company's acquisition of Filtran Microcircuits Inc. are not
realized; the ability to protect proprietary information and technology;
competitive products and pricing pressures; failure of our Original Equipment
Manufacturer, or OEM, customers to successfully incorporate our products into
their systems; the emergence of new or stronger competitors as a result of
consolidation movements in the market; the timing and market acceptance of our
or our OEM customers' new or enhanced products; our ability and the ability of
our OEM customers to keep pace with the rapid technological changes and short
product life cycles in our industry and gain market acceptance for new
products and technologies; changes in product mix resulting in unexpected
engineering and research and development costs; delays and increased costs in
product development, engineering and production; reliance on a small number of
significant customers; foreign currency fluctuations between the U.S. and
Canadian dollars; risks relating to governmental regulatory actions in
communications and defense programs; and inventory risks due to technological
innovation and product obsolescence, as well as other risks and uncertainties
as are detailed from time to time in the Company's Securities and Exchange
Commission filings. These forward-looking statements are made only as of the
date hereof, and the Company undertakes no obligation to update or revise the
forward-looking statements, whether as a result of new information, future
events or otherwise.
Merrimac Industries, Inc.
Summary of Consolidated Statements of Operations
Quarter Ended
(Unaudited)
April 2, April 3,
2005 2004
Net sales $7,258,000 $7,648,000
Gross profit 3,034,000 3,348,000
Selling, general and administrative expenses 2,311,000 2,454,000
Research and development 541,000 572,000
Operating income 182,000 322,000
Interest and other expense, net 52,000 81,000
Loss on disposition of capital assets 36,000 --
Income before income taxes 94,000 241,000
Provision for income taxes 10,000 10,000
Net income 84,000 231,000
Net income per common share - basic and diluted $.03 $.07
Weighted average number of shares
outstanding - basic 3,138,000 3,121,000
Weighted average number of shares
outstanding - diluted 3,175,000 3,135,000
Merrimac Industries, Inc.
Condensed Consolidated Balance Sheets
April 2, 2005 January 1, 2005
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 2,294,000 $ 2,166,000
Income tax refunds receivable 93,000 98,000
Accounts receivable 6,210,000 6,473,000
Inventories 3,293,000 2,931,000
Other current assets 964,000 583,000
Deferred tax assets 675,000 676,000
Total current assets 13,529,000 12,927,000
Property, plant and
equipment, net 14,721,000 15,584,000
Restricted cash 1,500,000 1,500,000
Other assets 705,000 747,000
Deferred tax assets 435,000 439,000
Goodwill 3,343,000 3,378,000
Total Assets $ 34,233,000 $ 34,575,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current portion of long-term debt $ 919,000 $ 905,000
Other current liabilities 3,169,000 3,558,000
Total current liabilities 4,088,000 4,463,000
Long-term debt, net of current portion 2,772,000 2,778,000
Deferred liabilities 70,000 88,000
Deferred tax liabilities 648,000 648,000
Total liabilities 7,578,000 7,977,000
Stockholders' equity 26,655,000 26,598,000
Total Liabilities and
Stockholders' Equity $ 34,233,000 $ 34,575,000
Contact: Mason N. Carter, Chairman & CEO
973-575-1300, ext. 1202
mnc@merrimacind.com
SOURCE Merrimac Industries, Inc.
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http://www.merrimacind.com
Company News On-Call:
http://www.prnewswire.com/comp/567525.html
CONTACT:
Mason N. Carter, Chairman & CEO of Merrimac
Industries, Inc., +1-973-575-1300, ext. 1202, or
mnc@merrimacind.com
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