CompuDyne Corporation (NASDAQ:CDCY), an industry leader in
sophisticated security products, integration and technology for the
public security markets, reported a net loss of $16.4 million, or
$1.95 per share, on revenues of $33.9 million, for the fourth
quarter of 2006. This compared to a net loss of $456 thousand, or
$0.06 per share, on revenues of $40.7 million, for the fourth
quarter of 2005. The full year 2006 net loss was $15.0 million, or
$1.82 per share, on revenues of $147.5 million. This compares to a
net loss of $8.7 million or $1.07 per share, on revenues of $141.6
million, for the full year 2005. The 2006 loss was driven by a
$16.1 million pre-tax non-cash write-down of goodwill and
intangible assets related to our Public Safety & Justice
business. The fourth quarter net loss before the write-down was
$0.9 million, the full year net income before the impact of the
goodwill and intangible write-down was $0.5 million. Backlogs at
December 31, 2006 were $117.3 million, down 20.8% from $148.1
million at December 31, 2005. Backlogs were negatively affected by
the completion of a major project in our Attack Protection segment
during 2006, and continuing delays in formalizing the expected
awards of a number of projects in our Institutional Security
Systems segment. EBITDAS for the full year 2006 was $7.3 million
versus ($2.4) million for the full year 2005. In addition to the
impact of the non-cash goodwill write-down, 2006 results were
depressed by several factors many of which are temporal. In
addition, revenue generation remains disappointing due to a decline
in backlogs despite an increase in pre-bid project activity across
all of our businesses. On a positive note, audit and SOX related
costs declined to a more normal level of $0.7 million in 2006
compared to $3.6 million in 2005. Institutional Security Systems
(�ISS�) had a pre-tax loss of $0.7 million in the fourth quarter of
2006 and a pre-tax loss of $1.3 million for the full year of 2006.
Revenues in 2006 were $10.6 million for the fourth quarter and
$48.3 million for the year. Revenues decreased $7.0 million or 40%
for the fourth quarter of 2006 compared to the fourth quarter of
2005 and $12.4 million or 20% for the year 2006 as compared to the
year 2005. The 2005 fourth quarter pre-tax profit was $0.1 million
and the full year 2005 pre-tax profit was $0.6 million. ISS
backlogs have improved modestly in 2006, rising from $58.1 million
at the beginning of the year to $64.7 million at the end of 2006.
While actual awards early in 2007 have been quite low, ISS has in
excess of $20 million of projects that are expected to be formally
awarded in the next few months. Prospective project activity
remains strong coincident with the improving fiscal condition of
our city, county, and state customers. In addition, the underlying
requirement for additional correctional facilities continues to
increase, exacerbated by several years of low building activity,
and violent crime rates that have begun increasing again in recent
years. ISS has aggressively reduced its cost structure and
streamlined its operations and expects to do very well once
backlogs fully recover and projects progress to our stage of
participation. Attack Protection (�AP�) had a pre-tax profit of
$0.5 million in the fourth quarter of 2006 and a pre-tax profit of
$4.7 million for the full year 2006 on revenues of $8.4 million in
the fourth quarter of 2006 and $40.2 million for the full year
2006. Results in 2006 reflected a sharp recovery from a pre-tax
loss of $0.2 million in the fourth quarter of 2005 and a pre-tax
loss of $2.3 million for the 2005 year on revenues of $8.2 million
for the fourth quarter of 2005 and $27.0 million for the full year
2005. Our Attack Protection segment is made up of two businesses:
1) Norshield, which markets bullet, blast and attack protection
products as well as vehicle barrier systems; and 2) Fiber SenSys
(�FSI�), a world premier manufacturer of fiber optic based
perimeter alarm systems. Norshield completed the largest project, a
major new embassy, in its history in 2006. This project contributed
significantly to AP results in 2006 but represented an unusually
large procurement that will not be repeated in 2007. Norshield
backlogs have declined sharply since the completion of this
project, ending the year at only $5.7 million, down from $28.8
million at the beginning of the year, and 2007 revenues are
expected to be well under 2006 levels despite an active level of
quoting. Norshield had revenues of $31.5 million and pre-tax income
of $3.4 million in 2006 compared to revenues of $20.6 million and a
pre-tax loss of $2.7 million in 2005. FSI had a good year in 2006
with revenues of $8.7 million and pre-tax profit of $1.3 million
compared to revenues of $6.4 million and pre-tax profit of $0.3
million in 2005. Revenues at FSI were depressed in the first half
of 2006 awaiting results of various Air Force tests, but picked up
sharply in the second half, especially the fourth quarter. New
product introductions are expected to improve FSI�s revenues in
2007. Public Safety & Justice (�PS&J�), our Tiburon public
safety software subsidiary, had a pre-tax loss of $16.8 million in
the fourth quarter of 2006 and a pre-tax loss of $18.0 million for
the 2006 year on revenues of $11.7 million for the fourth quarter
of 2006 and $45.0 million for the full year 2006. PS&J�s loss
was driven by a non-cash $16.1 million write-down of acquisition
goodwill and intangible assets. Prior to the write-down PS&J�s
results reflected an improvement from the $2.9 million pre-tax loss
on $43.9 million of revenue for the full year of 2005 despite a
$0.4 million write-off related to a contract dispute in the fourth
quarter of 2006. During 2006 we changed senior management at
PS&J. Our new management has made important strides in
regaining Tiburon�s traditional market leading position in the
public safety software business through a series of steps
including: 1) restructuring senior management; 2) reducing the
expense structure by streamlining the management, flattening the
organizational structure, and improving efficiencies; 3)
accelerating and internalizing the critically important and very
exciting new �Next Generation� software suite development which is
based on Service Oriented Architecture and the Microsoft �.NET�
platform; 4) re-invigorating the sales and marketing effort; and 5)
re-dedicating the company to outstanding customer service, a
hallmark of Tiburon�s corporate strategy since its founding in
1980. Spending on the Next Generation software suite has been
accelerated and will continue to impact 2007 results. While
PS&J backlog declined in 2006 from $53.7 million at the
beginning of the year to $39.0 million at the end of the year,
presaging lower revenues early in 2007, bidding activity is strong
and Tiburon is competing for several very large projects which are
expected to be awarded by mid 2007. Integrated Electronic Systems
(�IES�) had pre-tax profit of $0.3 million in the fourth quarter of
2006 and pre-tax profit of $1.0 million for the 2006 year on
revenues of $3.2 million for the fourth quarter of 2006 and $13.9
million for the full year 2006. This compared to pre-tax profit of
$0.3 million in the fourth quarter of 2005 and $0.4 million for the
full year 2005 on revenues of $3.3 million for the fourth quarter
of 2005 and full year 2005 revenues of $10.1 million. Revenues and
earnings benefited from many projects including the large Bureau of
Engraving and Printing (�BEP�) contract. While the latter contract
has remained under protest and is expected to be re-bid, we
continue to perform to the very highest standards under that
contract and are optimistic that we will prevail in the re-bid,
which is expected to be concluded late in 2007. IES� backlog ended
2006 at $7.9 million, up from $7.5 million at the beginning of
2006. Only $0.3 million of the BEP contract is included in this
backlog. Corporate expenses declined sharply in 2006, mainly due to
the reduction in audit and Sarbanes Oxley related costs, but also
due to successful efforts to reduce corporate level expenditures.
Corporate expense in the fourth quarter of 2006 was $0.7 million,
down from $1.1 million in the fourth quarter of 2005, Corporate
expense was $3.6 million for the full year of 2006, down from $6.6
million for the full year of 2005. Net interest expense in the
fourth quarter of 2006 was $0.4 million vs $0.5 million in the
fourth quarter of 2005, and was $1.9 million for the full year of
2006 vs $2.1 million for the full year of 2005. The Company�s
Balance Sheet remained very strong at the end of 2006. Cash and
marketable securities increased by $5.6 million during 2006 to
$23.9 million at the end of the year. Cash benefited from the $4.5
million (before $1.7 million of expenses and selling shareholder
participation) settlement with Friedman Billings & Ramsay
related to the 2001 PIPE offering ($1.3 million, net was received
at December 31, 2006 and $1.5 million, net was received in January,
2007). This settlement did not impact net income since it was
credited directly to Shareholders� Equity. Tangible Net Worth
increased by $4.8 million during the year and Working Capital
totaled $31.0 million at December 31, 2006. Other than the
short-term portion of the Company�s Industrial Revenue Bonds, which
amounted to $0.4 million at December 31, 2006, the Company has no
outstanding short-term debt, has only $2.7 million in the long-term
portion of its Industrial Revenue Bonds, and its� Convertible
Subordinated Notes have no principal due until 2011. With
continuing strong pre-bid activity in most of our businesses, and a
solid new management in place at PS&J, we are quite optimistic
about the intermediate to longer term outlook. However operating
results will remain depressed until we are able to secure some of
the significant potential projects we are pursuing, and, assuming
we win these projects, until we get past the normal extended
start-up phase of the projects, when our revenues begin to be
generated in earnest. Certain statements made in this press release
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, including those
statements concerning the Company�s expectations with respect to
future operating results and other events. Although the Company
believes it has a reasonable basis for these forward-looking
statements, these statements involve risks and uncertainties that
cannot be predicted or quantified and consequently, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Factors which could cause actual
results to differ from expectations include, among others, capital
spending patterns of the security market and the demand for the
Company�s products, competitive factors and pricing pressures,
changes in legislation, regulatory requirements, government budget
problems, the Company�s ability to secure new contracts, the
ability to successfully grow the Company by completing
acquisitions, the ability to remain in compliance with its bank
covenants, delays in government procurement processes, ability to
obtain bid, payment and performance bonds on various of the
Company�s projects, technological change or difficulties, the
ability to refinance debt when it becomes due, product development
risks, commercialization difficulties, adverse results in
litigation, the level of product returns, the amount of remedial
work needed to be performed, costs of compliance with
Sarbanes-Oxley requirements and the impact of the failure to comply
with such requirements, risks associated with internal control
weaknesses identified in complying with Section 404 of
Sarbanes-Oxley, the Company�s ability to simplify its structure and
modify its strategic objectives, and general economic conditions.
Risks inherent in the Company�s business and with respect to future
uncertainties are further described in its other filings with the
Securities Exchange Commission, such as the Company�s Form 10-K,
Form 10-Q, and Form 8-K reports. COMPUDYNE CORPORATION AND
SUBSIDIARIES �CONSOLIDATED BALANCE SHEETS �(unaudited) � ASSETS
December 31,2006 December 31,2005 (dollars in thousands) Current
Assets Cash and cash equivalents $ 7,740� $ 6,938� Marketable
securities 8,687� 11,429� Accounts receivable, net 25,534� 39,625�
Contract costs in excess of billings 12,031� 13,764� Inventories
5,577� 6,195� Prepaid expenses and other � 4,595� � 2,809� Total
Current Assets 64,164� 80,760� � Cash equivalents pledged 7,500� -�
Property, plant and equipment, net 9,630� 9,962� Goodwill 13,274�
26,846� Other intangible assets, net 7,428� 8,221� Other � 1,954� �
903� Total Assets $ 103,950� $ 126,692� � LIABILITIES AND
SHAREHOLDERS� EQUITY � Current Liabilities Accounts payable and
accrued liabilities $ 14,155� $ 23,030� Billings in excess of
contract costs incurred 9,221� 13,847� Deferred revenue 9,305�
8,094� Current portion of notes payable � 440� � 440� Total Current
Liabilities 33,121� 45,411� � Notes payable 2,685� 3,125�
Convertible subordinated notes payable, net 39,492� 39,305�
Deferred tax liabilities 1,425� 2,060� Other � 388� � 369� Total
Liabilities � 77,111� � 90,270� � Commitments and Contingencies �
Shareholders� Equity � 26,839� � 36,422� Total Liabilities and
Shareholders� Equity $ 103,950� $ 126,692� COMPUDYNE CORPORATION
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
� Three Months Ended December 31, Twelve Months Ended December 31,
� 2006� � 2005� � 2006� � 2005� (in thousands, except per share
data) � Revenues $ 33,902� $ 40,741� $ 147,462� $ 141,650� Cost of
sales � 22,498� � 29,529� � 99,595� � 99,111� Gross profit 11,404�
11,212� 47,867� 42,539� � Selling, general & administrative
expenses 10,008� 9,674� 38,261� 40,567� Research and development
1,824� 1,183� 7,294� 8,685� Impairment of goodwill and other
intangibles � 16,141� � -� � 16,141� � -� (Loss) income from
operations (16,569) 355� (13,829) (6,713) � Total other expense,
net � 426� � 526� � 1,896� � 2,193� � Loss before income taxes
(16,995) (171) (15,725) (8,906) Income tax (benefit) expense �
(563) � 285� � (732) � (215) Net loss $ (16,432) $ (456) $ (14,993)
$ (8,691) � Earnings (loss) per share: Basic loss per common share
$ (1.95) $ (.06) $ (1.82) $ (1.07) � Weighted average number of
common shares outstanding � 8,430� � 8,119� � 8,256� � 8,129� �
Diluted loss per common share $ (1.95) $ (.06) $ (1.82) $ (1.07) �
Weighted average number of common shares and equivalents � 8,430� �
8,119� � 8,256� � 8,129� COMPUDYNE CORPORATION AND SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA (in thousands, unaudited) � Three
Months EndedDecember 31, Twelve Months EndedDecember 31, � 2006� �
2005� � 2006� � 2005� Revenues Institutional Security Systems $
10,599� $ 17,644� $ 48,265� $ 60,652� Attack Protection 8,402�
8,162� 40,241� 27,017� Public Safety and Justice 11,694� 11,630�
45,062� 43,871� Integrated Electronic Systems � 3,207� � 3,305� �
13,894� � 10,110� $ 33,902� $ 40,741� $ 147,462� $ 141,650� � �
Three Months EndedDecember 31, Twelve Months EndedDecember 31, �
2006� � 2005� � 2006� � 2005� Gross Profit Institutional Security
Systems $ 1,530� $ 2,405� $ 7,336� $ 9,896� Attack Protection
2,651� 2,016� 13,081� 6,105� Public Safety and Justice 6,246�
6,261� 24,464� 24,913� Integrated Electronic Systems � 977� � 530�
� 2,986� � 1,625� $ 11,404� $ 11,212� $ 47,867� $ 42,539� � � Three
Months EndedDecember 31, Twelve Months EndedDecember 31, � 2006� �
2005� � 2006� � 2005� Pre-tax income (loss) Institutional Security
Systems $ (667) $ 101� $ (1,277) $ 629� Attack Protection 463�
(192) 4,672� (2,333) Public Safety and Justice (16,817) 342�
(17,983) (2,928) Integrated Electronic Systems 263� 251� 985� 431�
Corporate � (237) � (673) � (2,122) � (4,705) $ (16,995) $ (171) $
(15,725) $ (8,906) December 31, 2006 December 31, 2005 Backlog
Institutional Security Systems $ 64,687� $ 58,128� Attack
Protection 5,686� 28,802� Public Safety and Justice 39,067� 53,705�
Integrated Electronic Systems � 7,902� � 7,503� $ 117,342� $
148,138� RECONCILIATION OF NON-GAAP FINANCIAL MEASURES EBITDAS (in
thousands, except per share data; unaudited) � Three Months
EndedDecember 31, Twelve Months EndedDecember 31, � 2006� � 2005� �
2006� � 2005� � Net loss $ (16,432) $ (456) $ (14,993) $ (8,691)
Interest expense 789� 748� 3,268� 3,065� Income tax expense
(benefit) (563) 285� (732) (215) Depreciation and amortization 828�
797� 3,167� 3,393� Non-cash stock option expense 146� -� 1,113� -�
Impairment of goodwill 14,401� -� 14,401� -� Impairment of other
intangibles, net of tax � 1,105� � -� � 1,105� � -� EBITDA adjusted
for non-cash stock option expense (EBITDAS) $ 274� $ 1,374� $
7,329� $ (2,448) Income (Loss) Before Non-Cash Stock Option Expense
and Impairment Charges � Three Months EndedDecember 31, Twelve
Months EndedDecember 31, � 2006� � 2005� � 2006� � 2005� � Net loss
$ (16,432) $ (456) $ (14,993) $ (8,691) Non-cash stock option
expense � 146� � -� � 1,113� � -� Net loss before non-cash stock
option expense (16,286) (456) (13,880) (8,691) Impairment of
goodwill 14,401� -� 14,401� -� Impairment of other intangibles, net
� 1,105� � -� � 1,105� � -� (Loss) income before non-cash stock
option expense and impairments $ (780) $ (456) $ 1,626� $ (8,691) �
Diluted loss per common share before non-cash stock option expense
$ (1.93) $ (.06) $ (1.68) $ (1.07) � Diluted (loss) income per
common share before non-cash stock option expense and impairments $
(.09) $ -� $ .20� $ -� This press release contains unaudited
financial information that is not prepared in accordance with
generally accepted accounting principles (GAAP). Investors are
cautioned that the non-GAAP financial measures are not to be
construed as an alternative to GAAP. The Company's management uses
earnings before interest, taxes, depreciation and amortization, as
adjusted for non-cash stock option expense and impairment charges
(EBITDAS), in its internal analysis of results of operations and
monitors EBITDAS to evaluate the Company�s compliance with its bank
covenant for a fixed charge coverage ratio. The Company�s
management also uses Income (Loss) Before Non-Cash Stock Option
Expense and impairment charges to allow it to compare its results
of operations between years. Management believes that EBITDAS and
Income (Loss) Before Non-Cash Stock Option Expense and Impairment
Charges is useful to investors as a meaningful comparison between
periods and as an analysis of the critical components of the
Company�s results of operations. Management also believes that
EBITDAS is useful to investors because it allows them to evaluate
the Company�s compliance with its bank covenant for a fixed charge
coverage ratio. Management believes that net income (loss) per
share excluding stock option expense and impairment charges is
helpful to investors who are trying to compare current results with
prior periods.
Compudyne (NASDAQ:CDCY)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Compudyne (NASDAQ:CDCY)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024