Company Reports Fourth Quarter Revenue Increase of 17% and EPS of $0.05;
Fourth Consecutive Quarter of Sequential Earnings Growth
ALEXANDRIA, Va., May 29 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the fourth quarter and
fiscal year ended March 31, 2002.
For the year, revenues from continuing operations were $49.4 million
versus $51.8 million for fiscal 2001. The modest decline in revenues was
primarily due to reductions in lower margin hardware orders. The Company
reported operating income of $996,000 for the current year compared to an
operating loss of $1.4 million for fiscal year 2001. Income from continuing
operations was $302,000, or $0.14 per share, for the current year versus a
loss from continuing operations of $840,000, or $0.42 per share.
The Company reported net income of $302,000, or $0.14 per basic and
diluted share, for fiscal 2002 compared to $1.1 million, or $0.54 per basic
and diluted share, for the prior year. The 2001 financial results included
non-operating income of $1.6 million from embezzlement recoveries, a gain of
$1.7 million from the sale of discontinued operations, and income from
discontinued operations of $244,000. Excluding the positive effects of
embezzlement recoveries and discontinued operations, the Company would have
reported a net loss of $2.4 million for fiscal 2001.
For the quarter ended March 31, 2002, revenues were $13.7 million versus
$11.7 million for the comparable period in 2001, an increase of 17%. The
revenue increase was principally due to increased orders from Federal
Communications Services customers and growth in Enterprise Maintenance
revenue. Net income for the quarter ended March 31, 2002, was $115,000, or
$0.05 per basic and diluted share, versus a net loss of $2.0 million, or $0.99
per share, for the comparable quarter of 2001.
Charles McNew, president and chief executive officer, stated, "Our
aggressive pursuit of the IT services and solutions marketplace is rapidly
transforming the Company. The targeted niches we serve in both the government
and commercial sectors are growing, and we're continuing to add higher-margin
business. Our backlog has increased 89 percent during the past year and now
stands at $71 million.
"Our employee base has increased 22 percent over the past year, and we are
continuing to add talented IT professionals to our team."
He added, "We are delighted to complete fiscal 2002 with four consecutive
quarters of sequential earnings growth. Revenues have also improved
sequentially beginning with the second quarter of this fiscal year. With
continued growth in our core businesses, the success we're seeing in extending
our IT services to the federal government, and the outsourcing services we're
providing to the large systems integrators, we believe the Company is
positioned to continue on a similar track for fiscal 2003."
The Company will host a conference call for investors at 11 a.m. EDT on
Wednesday, May 29, 2002, to review the financial and operational results for
the quarter and the year. The conference call phone number is 888-391-0236
for U.S. callers and 212-676-5377 for international callers. The conference
call replay will be available from 1 p.m. EDT on Wednesday, May 29, 2002, to 1
p.m. EDT on Thursday, May 30. The replay number is 800-633-8284 for US
callers and 858-812-6440 for international callers. The reservation number is
20629116.
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 years ended For the three months
Statements of operations March 31, ended March 31,
2002 2001 2002 2001
Revenues $49,399 $51,750 $13,661 $11,685
Operating income 996 (1,417) 290 (1,582)
Interest expense (634) (955) (160) (269)
Other (expense) income - (45) - (45)
Embezzlement recovery - 1,600 - (221)
Income tax (expense)
benefit (60) (23) (15) 22
Income from continuing
operations 302 (840) 115 (2,095)
Income from discontinued
operations - 244 - -
Gain on sale of
discontinued operations - 1,694 - 100
Net income $302 $1,098 $115 $(1,995)
Earnings per common
share - basic:
Continuing operations $.14 $(.42) $.05 $(1.04)
Discontinued
operations - .12 - -
Gain on sale of
discontinued
operations - .84 - .05
$.14 $.54 $.05 $(.99)
Earnings per common
share- diluted:
Continuing operations $.14 $(.42) $.05 $(1.04)
Discontinued
operations - .12 - -
Gain on sale of
discontinued
operations - .84 - .05
$.14 $.54 $.05 $(.99)
Weighted average number
of common shares
outstanding:
Basic 2,100,321 2,022,811 2,175,613 2,023,436
Diluted 2,106,478 2,022,811 2,189,544 2,023,436
March 31, March 31,
Balance Sheets 2002 2001
Current assets $14,646 $12,375
Non-current assets 5,029 5,591
Total assets $19,675 $17,966
Current liabilities $9,203 $12,477
Non-current liabilities 11,752 7,402
Total liabilities $20,955 $19,879
Stockholders' deficit (1,280) (1,913)
Total liabilities and stockholders'
deficit $19,675 $17,966
SOURCE Halifax Corporation
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Related links:
http://www.hxcorp.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/391950.html
CONTACT:
Karen Vahouny of Qorvis Communications,
+1-703-744-7809, or kvahouny@qorvis.com, for Halifax Corporation
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