Revenues Increase 19% Due to New Contract Wins
ALEXANDRIA, Va., Nov. 4 /PRNewswire-FirstCall/ -- Halifax Corporation
(Amex: HX) today announced its financial results for the quarter ended
September 30, 2004.
Revenues for the second quarter of fiscal 2005 were $14.8 million versus
$12.5 million for the same period in 2003, an increase of 19%. The revenue
growth was due primarily to the start of several new contracts in both high-
availability maintenance services and secure network services. Operating
income was $214,000, for the second quarter of fiscal 2005 versus $303,000 for
last year's comparable quarter. Cost of services for the quarter were
significantly higher than normal due to initial start-up costs associated with
the commencement of a long-term nationwide contract and should return to
normal rates in the third quarter. The Company noted that operating income
was also reduced by a non-recurring charge of $179,000 relating to the
abandonment of certain facilities.
Net income for the quarter ended September 30, 2004, was $44,000, or $0.02
per basic and $0.01 per diluted share, versus $152,000, or $0.06 per basic and
diluted share, for the comparable quarter of last year.
Charles McNew, president and chief executive officer, noted, "We're
pleased with our continuing top-line growth. During the second quarter, we
made a sizable investment to launch a large nationwide contract with a new
customer."
He continued, "Now, with the recently completed acquisition of
AlphaNational and with most of our new contract start-up costs behind us, we
believe we will generate additional revenue growth and improved earnings for
the balance of the fiscal year."
For the six months ended September 30, 2004, revenues were $28.3 million
compared to $23.1 million for the same period last year, an increase of 22%.
Operating income for the six months ended September 30, 2004, was $500,000
versus $502,000 for the same period in 2003. Net income was $135,000, or
$0.05 per basic and diluted share, for the first six months of this year
compared to $203,000, or $0.09 per basic and $0.08 per diluted share, for the
comparable period in 2003.
McNew added, "Our high-availability maintenance services and our secure
network services businesses are both growing at healthy rates. We are
successfully integrating AlphaNational into our organization, and we remain
bullish about our combined opportunities. In fact, our backlog at September
30, 2004, was $78.5 million, up 64% compared to March 31, 2004."
He concluded, "We are well positioned to continue to grow while improving
profitability and building shareholder value."
The Company will host a conference call for investors at 11 a.m. EST on
Thursday, November 4, 2004, to review the financial and operational results
for the quarter. The conference call phone number is 800-670-3536 for U.S.
callers and 212-748-2803 for international callers. The conference call
replay will be available from 1 p.m. EST on Thursday, November 4, 2004, to 1
p.m. EST on Friday, November 5, 2004. The replay number is 800-633-8284 for
U.S. callers and 402-977-9140 for international callers. The reservation
number is 21212860.
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 regarding Halifax can be found at
http://www.hxcorp.com. The information on the website listed above is not and
should not be considered part of this document. This website is and only is
intended to be an inactive textual reference.
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 000's except per share amounts)
For the For the
three months ended six months ended
Statements of operations September 30, September 30,
2004 2003 2004 2003
Revenues $14,809 $12,461 $28,250 $23,137
Cost of services 13,138 10,965 24,914 20,320
Selling, Marketing, General &
administrative 1,278 1,193 2,657 2,315
Abandonment of facility 179 - 179 -
Operating income 214 303 500 502
Interest expense (158) (136) (297) (279)
Income before income taxes 56 167 203 223
Income tax expense (12) (15) (68) (20)
Net income $44 $152 $135 $203
Earnings per common share -- basic: $.02 $.06 $.05 $.09
Earnings per common share -- diluted: $.01 $.06 $.05 $.08
Weighted average number of common
shares outstanding:
Basic 2,927 2,557 2,920 2,365
Diluted 2,970 2,627 2,971 2,400
Balance Sheets September 30, March 31,
2004 2004
Current assets
Cash $18 $430
Trade accounts receivable, net 11,990 9,364
Inventory, net 5,935 5,845
Prepaid expenses and other current assets 768 599
Deferred tax asset 1,148 1,204
Total current assets 19,859 17,442
Property and equipment, net 1,806 1,598
Goodwill and intangibles, net 7,360 4,606
Other assets 146 149
Deferred tax asset 2,685 2,696
Total assets $31,856 $26,491
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $8,108 $6,723
Deferred maintenance revenue 3,990 2,543
Current portion of long-term debt 1,495 523
Total current liabilities 13,593 9,789
Long-Term bank debt 7,430 7,246
Subordinated debt -- affiliate 2,400 2,400
Deferred income 308 337
Total liabilities 23,731 19,772
Stockholders' equity 8,125 6,719
Total liabilities and stockholders' equity $31,856 $26,491
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:
Karen Vahouny of Qorvis Communications,
+1-703-744-7809, or kvahouny@qorvis.com, for Halifax Corporation
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