Quarterly Revenues Up 18% Due to Strength of Enterprise Maintenance
Business; Year Over Year Shareholders' Equity Increases $7.3 Million
ALEXANDRIA, Va., May 27 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the fourth quarter and
fiscal year ended March 31, 2004.
For the year, revenues were $49.5 million versus $50.4 for fiscal 2003.
The slight decline in revenues was due to reductions in hardware revenue,
although this was nearly offset by the continued growth of enterprise
maintenance services. The Company reported operating income of $1.1 million
for fiscal 2004 compared to $1.3 million for the previous year. Net income
for the current year was $4.2 million, or $1.60 per basic and $1.54 per
diluted share, compared to $648,000, or $0.30 per basic and diluted share.
The increase in net income was principally related to the recognition of a
non-recurring income tax benefit of $3.8 million.
For the quarter ended March 31, 2004, revenues were $13.0 million versus
$11.0 million for the comparable period in 2003, an increase of 18%. The
revenue increase was due to growth in the high-availability enterprise
maintenance business. The operating income was $205,000 for the fourth
quarter of 2004 versus $309,000 for the same quarter of last year. Net income
for the quarter ended March 31, 2004, was $3.8 million or $1.31 per basic and
$1.25 per diluted share, versus $164,000, or $0.07 per basic and diluted share
for the comparable quarter of fiscal 2003. The increase in net income was the
result of the recognition of an income tax benefit of $3.8 million.
Charles McNew, president and chief executive officer, stated, "Fiscal 2004
was our third consecutive profitable year, and the fourth quarter represented
our 12th straight quarter of profitability. In spite of a competitive
marketplace, we have continued to grow our Enterprise Maintenance Solutions
business and build wider recognition as an innovative leader in this high-
potential IT services niche. Our balance sheet has significantly improved
this past year, as evidenced by a $7.3 million increase in equity."
He added, "We remain cautiously optimistic about our future prospects,
because we continue to build strong relationships with key global service
provider partners and general economic conditions appear to be improving. The
pipeline for our high-availability maintenance services is at an all-time
record level and includes multiple nationwide long-term opportunities. We are
beginning to book additional new technology deployment and integration
services on a national and regional basis, and our secure network services
horizon continues to be well funded and active, especially within the
intelligence community.
"For the coming year, our priority will be to add new enterprise
maintenance customers, and in particular to sign longer-term, nationally
recognized accounts," McNew continued. "We will continue to cultivate
additional strategic partner relationships. We believe our service delivery
model will allow us to scale our business, supporting our goal of improved
operating margins and increased profitability, and ultimately the enhancement
of shareholder value."
The Company will host a conference call for investors at 11 a.m. EDT on
Thursday, May 27, 2004, to review the financial and operational results for
the quarter and year. The conference call phone number is 888-391-0063 for
U.S. callers and 212-676-5404 for international callers. The conference call
replay will be available from 1 p.m. EDT on Thursday, May 27, 2004, to 1 p.m.
EDT on Friday, May 28, 2004. The replay number is 800-633-8284 for U.S.
callers and 402-977-9140 for international callers. The reservation number is
21196644.
Founded in 1967, Halifax Corporation is an enterprise 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 high availability hardware maintenance services,
technology deployment and integration services, and secure network program
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 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 per share amounts)
For the three months For the years
Statements of operations ended March 31, ended March 31,
2004 2003 2004 2003
Revenues $13,020 $11,000 $49,537 $50,418
Operating income 205 309 1,054 1,337
Other income - 20 15 20
Interest expense (172) (150) (591) (649)
Income tax benefit (expense) 3,790 (15) 3,750 (60)
Net income $ 3,823 $ 164 $ 4,228 $ 648
Earnings per common share -
basic: $ 1.31 $ .07 $ 1.60 $ .30
Earnings per common share -
diluted: $ 1.25 $ .07 $ 1.54 $ .30
Weighted average number of
common shares outstanding:
Basic 2,910 2,176 2,638 2,176
Diluted 3,065 2,245 2,787 2,212
Balance Sheets March 31, March 31,
2004 2003
Current assets
Cash $ 430 $ 568
Trade accounts receivable,
net 9,364 8,408
Inventory, net 5,845 4,323
Prepaid expenses and
other current assets 599 267
Deferred tax asset 1,204 -
Total current assets 17,442 13,566
Property and equipment, net 1,598 1,307
Goodwill and intangibles, net 4,606 2,966
Other assets 149 142
Deferred tax asset 2,696 -
Total assets $26,491 $17,981
Liabilities and
Stockholders' Equity
Current liabilities
Accounts payable and
accrued expenses $ 6,723 $ 6,097
Deferred maintenance revenue 2,543 2,268
Current portion of
long-term debt 523 109
Total current liabilities 9,789 8,474
Long-Term bank debt 7,246 5,741
Subordinated debt - affiliate 2,400 4,000
Deferred income 337 397
Total liabilities 19,772 18,612
Stockholders' equity (deficit) 6,719 (631)
Total liabilities and
stockholders' equity
(deficit) $26,491 $17,981
SOURCE Halifax Corporation
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Related links:
http://www.hxcorp.com
Company News On-Call:
http://www.prnewswire.com/comp/391950.html
CONTACT:
For investor relations information: Karen
Vahouny of Qorvis Communications, +1-703-744-7809, or
kvahouny@qorvis.com, for Halifax Corporation
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