SCI Engineered Materials, Inc. Reports Fourth Quarter 2013 Results
04 Marzo 2014 - 5:47PM
Marketwired
SCI Engineered Materials, Inc. Reports Fourth Quarter 2013 Results
COLUMBUS, OH--(Marketwired - Mar 4, 2014) - SCI Engineered
Materials, Inc. ("SCI") (OTCQB: SCIA), a global supplier and
manufacturer of advanced materials for PVD thin film applications
that works closely with end users and OEMs to develop innovative,
customized solutions, today reported its financial results for the
three months ended December 31, 2013.
Dan Rooney, Chairman, President and Chief Executive Officer,
stated, "We are pleased with the year-over-year and sequential
quarter improvement in our financial performance. The increase in
fourth quarter 2013 total revenue was attributable to strong sales
to photonics customers compared to the same period last year. Our
profitable fourth quarter results included sharply higher gross
profit, income applicable to common stock of $0.02 per diluted
share and $194,147 of cash provided by operations. Additionally,
EBITDA increased approximately $322,000 versus the fourth quarter
2012."
Mr. Rooney added, "We ended the year with solid momentum
following a slow start in the first half of 2013. Our backlog at
December 31, 2013, remained steady at $3.4 million compared to
September 30, 2013, which was substantially higher than the
quarter-end for each of the first two quarters of last year. For
the 2014 year-to-date period, the positive bookings trend that
developed during the second half of 2013 has continued."
Total revenue
Total revenue for the fourth quarter 2013 increased 34% to
$2,940,008 from $2,187,987 for the same period in 2012. This
represents the highest quarterly total revenue since the third
quarter 2008. Higher sales to photonics customers were particularly
strong in the fourth quarter 2013. There was no contract research
revenue in the fourth quarter 2013 due to the completion of
government grants in the second quarter 2013 compared to $45,006 a
year ago. Backlog was $3.4 million at December 31, 2013, compared
to $1.8 million on the same date in 2012.
Gross profit
Gross profit more than doubled to $547,666 for the fourth
quarter 2013 from $256,810 for the same period of the prior year,
principally due to higher revenue and improved product mix. Gross
profit margin increased to 18.6% of total revenue for the three
months ended December 31, 2013, from 11.7% the prior year.
Operating expense
Operating expense (marketing and sales, general and
administrative, and R&D expenses) decreased 4% to $453,727 for
the fourth quarter 2013 from $473,482 for the same period a year
ago. This decrease was primarily due to zero bad debt expense for
the fourth quarter 2013 versus $30,000 for the same period in
2012.
Income (Loss) Applicable to Common Stock
Income applicable to common stock was $95,720 or $0.02 per
diluted common share for the three months ended December 31, 2013,
compared to a loss applicable to common stock of $243,601 or $0.06
per basic share for the fourth quarter 2012.
EBITDA
EBITDA (Earnings before interest, income taxes, depreciation and
amortization) increased to $254,510 for the fourth quarter 2013
from negative EBITDA of $67,392 for the fourth quarter 2012.
Adjusted EBITDA, which excludes non-cash stock based compensation,
was $288,125 for the three months ended December 31, 2013, versus
negative EBITDA of $32,797 for the same period of the prior
year.
About SCI Engineered Materials, Inc.
SCI Engineered Materials is a global supplier and manufacturer
of advanced materials for PVD thin film applications that works
closely with end users and OEMs to develop innovative, customized
solutions. Additional information is available at
www.sciengineeredmaterials.com.
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors
created thereby. Those statements include, but are not limited to,
all statements regarding intent, beliefs, expectations,
projections, customer guidance, forecasts, and plans of the Company
and its management, and specifically include statements concerning
the company being cautiously optimistic about 2014 as it continues
to focus efforts on profitable growth in all of its markets. These
forward-looking statements involve numerous risks and
uncertainties, including, without limitation, other risks and
uncertainties detailed from time to time in the Company's
Securities and Exchange Commission filings, including the Company's
Annual Report on Form 10-K for the year ended December 31, 2013.
One or more of these factors have affected, and could in the future
affect, the Company's projections. Therefore, there can be no
assurances that the forward-looking statements included in this
press release will prove to be accurate. In light of the
significant uncertainties in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by the Company, or any other persons,
that the objectives and plans of the company will be achieved. All
forward-looking statements made in this press release are based on
information presently available to the management of the Company.
The Company assumes no obligation to update any forward-looking
statements.
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SCI ENGINEERED MATERIALS, INC. |
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BALANCE SHEETS |
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ASSETS |
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December 31, |
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December 31, |
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2013 |
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2012 |
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Cash |
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$ |
622,727 |
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$ |
630,819 |
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Accounts receivable, less allowance for doubtful
accounts |
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634,077 |
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453,302 |
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Inventories |
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1,709,740 |
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815,075 |
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Prepaid expenses |
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56,298 |
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209,422 |
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Total
current assets |
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3,022,842 |
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2,108,618 |
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Property and Equipment, at cost |
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7,573,929 |
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7,483,480 |
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Less accumulated depreciation |
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(4,781,362 |
) |
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(4,254,302 |
) |
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2,792,567 |
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3,229,178 |
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Other assets |
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55,808 |
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66,764 |
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TOTAL ASSETS |
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$ |
5,871,217 |
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$ |
5,404,560 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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December 31, |
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December 31, |
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2013 |
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2012 |
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Short term debt |
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$ |
351,689 |
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$ |
537,937 |
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Accounts payable |
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456,111 |
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260,531 |
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Customer deposits |
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1,105,655 |
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313,745 |
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Accrued expenses |
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191,487 |
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194,218 |
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Total
current liabilities |
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2,104,942 |
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1,306,431 |
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Long term debt |
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1,041,526 |
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1,220,435 |
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Total
liabilities |
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3,146,468 |
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2,526,866 |
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Commitments and contingencies |
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Shareholders' equity |
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2,724,749 |
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2,877,694 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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$ |
5,871,217 |
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$ |
5,404,560 |
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SCI ENGINEERED MATERIALS, INC. |
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STATEMENTS OF OPERATIONS |
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THREE MONTHS AND TWELVE MONTHS ENDED DECEMBER 31, 2013
AND 2012 |
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THREE MONTHS ENDED DEC. 31, |
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TWELVE MONTHS ENDED DEC. 31, |
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2013 |
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2012 |
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2013 |
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2012 |
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Product revenue |
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$ |
2,940,008 |
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$ |
2,142,981 |
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$ |
7,886,259 |
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$ |
8,530,780 |
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Contract research revenue |
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- |
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45,006 |
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90,170 |
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226,369 |
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Total revenue |
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2,940,008 |
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2,187,987 |
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7,976,429 |
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8,757,149 |
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Cost of product revenue |
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2,392,342 |
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1,892,549 |
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6,363,489 |
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6,913,807 |
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Cost of contract research revenue |
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- |
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38,628 |
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76,648 |
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186,180 |
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Total cost of revenue |
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2,392,342 |
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1,931,177 |
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6,440,137 |
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7,099,987 |
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Gross profit |
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547,666 |
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256,810 |
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1,536,292 |
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1,657,162 |
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Operating Expense |
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453,727 |
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473,482 |
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1,824,382 |
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1,923,471 |
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Income (loss) from operations |
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|
93,939 |
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(216,672 |
) |
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(288,090 |
) |
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(266,309 |
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Other income (expense) |
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7,819 |
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(23,587 |
) |
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444 |
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(87,011 |
) |
Income (loss) before income taxes |
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101,758 |
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(240,259 |
) |
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(287,646 |
) |
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(353,320 |
) |
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Income tax benefit (expense) |
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- |
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2,696 |
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- |
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27,348 |
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Net income (loss) |
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101,758 |
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(237,563 |
) |
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(287,646 |
) |
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(325,972 |
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Dividends on preferred stock |
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(6,038 |
) |
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(6,038 |
) |
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(24,152 |
) |
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(24,152 |
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INCOME (LOSS) APPLICABLE TO COMMON STOCK |
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$ |
95,720 |
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$ |
(243,601 |
) |
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$ |
(311,798 |
) |
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$ |
(350,124 |
) |
Earnings per share - basic and diluted |
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Income (loss) per common share |
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Basic |
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$ |
0.02 |
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$ |
(0.06 |
) |
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$ |
(0.08 |
) |
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$ |
(0.09 |
) |
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Diluted |
|
$ |
0.02 |
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|
$ |
(0.06 |
) |
|
$ |
(0.08 |
) |
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$ |
(0.09 |
) |
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Weighted average shares outstanding |
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Basic |
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|
3,848,376 |
|
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|
3,823,963 |
|
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|
3,839,117 |
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|
3,814,996 |
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Diluted |
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|
3,848,376 |
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3,823,963 |
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3,839,117 |
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3,814,996 |
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SCI ENGINEERED MATERIALS, INC. |
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CONDENSED STATEMENTS OF CASH FLOWS |
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FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2013 AND
2012 |
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2013 |
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2012 |
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CASH PROVIDED BY (USED IN): |
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Operating activities |
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$ |
408,874 |
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$ |
437,271 |
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Investing activities |
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34,580 |
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(587,939 |
) |
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Financing activities |
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(451,546 |
) |
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(16,582 |
) |
NET DECREASE IN CASH |
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(8,092 |
) |
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(167,250 |
) |
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CASH - Beginning of period |
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|
630,819 |
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|
798,069 |
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CASH - End of period |
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$ |
622,727 |
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$ |
630,819 |
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RECONCILIATION OF GAAP TO NON-GAAP MEASURES |
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FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31,
2013 AND 2012 |
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Three months ended Dec. 31, |
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Twelve months ended Dec. 31, |
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2013 |
|
2012 |
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2013 |
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|
2012 |
|
Net
(loss) income |
|
$ |
101,758 |
|
$ |
(237,563 |
) |
|
$ |
(287,646 |
) |
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$ |
(325,972 |
) |
Interest, net |
|
|
16,473 |
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|
21,166 |
|
|
|
73,245 |
|
|
|
85,570 |
|
Income taxes |
|
|
- |
|
|
(2,696 |
) |
|
|
- |
|
|
|
(27,348 |
) |
Depreciation and amortization |
|
|
136,279 |
|
|
151,701 |
|
|
|
573,358 |
|
|
|
587,649 |
|
EBITDA |
|
|
254,510 |
|
|
(67,392 |
) |
|
|
358,957 |
|
|
|
319,899 |
|
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Stock
based compensation |
|
|
33,615 |
|
|
34,595 |
|
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|
134,701 |
|
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|
136,889 |
|
Adjusted EBITDA |
|
$ |
288,125 |
|
$ |
(32,797 |
) |
|
$ |
493,658 |
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$ |
456,788 |
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Contact: Robert Lentz (614) 876-2000
SCI Engineered Materials (QB) (USOTC:SCIA)
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