HEI, Inc. (Pink Sheets: HEII) (http://www.heii.com) today announced its financial results for the first quarter 2013, which ended March 30, 2013.
Sales for the first quarter of 2013 were $12,516,000, compared to $9,065,000 for the first quarter of 2012. The Company generated a net income of $636,000 for the first quarter of 2013, compared to a net loss of ($157,000) for the first quarter of 2012.
Sales were up 38% in the first quarter 2013, compared to the first quarter 2012, as a result of increased sales in the Company’s Victoria and Boulder divisions which were partially offset by decreased sales in the Company’s Tempe division. Gross margins increased to 16% on a consolidated basis compared to 13% in the same prior year period as a result of the increased sales volumes. Additionally, even with the increased sales volumes, the Company reduced operating expenses in the first quarter, compared to the first quarter 2012.
"Our contracts relating to the military radio systems along with demand from our long-term customers provided for the sales growth that we saw in the first quarter. Returning to profitability was also an important step for HEI and our customers. We have strong backlogs and have expanded our engineering staff along with our sales teams to continue to support and build the momentum moving forward. We will continue to focus on new customers and new programs while satisfying and strengthening our relationships with our existing customers. As with all companies we have uncertainties, including continued government funding for some of our customers’ programs, but we continue to be committed to building HEI into a strong and sustainable company," commented HEI CEO, Mark B. Thomas.
| HEI, Inc. designs, develops and manufactures ultra-miniature microelectronics, high density interconnect flexible and rigid-flex substrates, electromechanical hardware, and embedded software with complex user interface solutions for customers engaged in the medical, hearing, telecommunications, military, aerospace, and industrial markets. HEI provides its customers with a single point of contact that can take an idea from inception to a fully functional and cost effective product utilizing innovative design solutions and by the application of state-of-the-art materials, processes and manufacturing capabilities. | ||
| Corporate & HEI –Victoria (Microelectronics Contract Manufacturing) | 1495 Steiger Lake Lane, Victoria, MN 55386 | |
| HEI – Boulder (Design and Development, Box Build and ATE) | 4801 North 63rd Street, Boulder, CO 80301 | |
| HEI – Tempe (Quick Turn and Production High Density Interconnect Flex and Rigid-Flex) | 610 South Rockford Drive, Tempe, AZ 85281 | |
FORWARD LOOKING INFORMATION
Information in this news
release, which is not historical, includes forward-looking statements
made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995 that involve substantial risks and
uncertainties. You can identify these statements by forward-looking
words such as “may,” “will,” “expect,” “anticipate,” “believe,”
“intend,” “estimate,” “continue,” and similar words. Statements
contained in this press release, including the implementation of
business strategies, growth of specific markets, improved results and
estimated HEI revenue, cash flow and profits, are forward looking
statements. All such forward-looking statements involve risks and
uncertainties including, without limitation, adverse business and market
conditions, the ability of HEI to secure and satisfy customers, the
availability and cost of materials from HEI’s suppliers, HEI’s ability
to satisfy financial or other obligations or covenants set forth in its
financing agreements, adverse competitive developments, change in or
cancellation of customer requirements, collection of receivables and
outstanding debt, HEI’s ability to control fixed and variable operating
expenses, and other risks detailed in previous HEI SEC filings. Since
HEI is no longer reporting to the SEC, readers are cautioned to weigh
the potential for additional risk factors based on ongoing business
activities and the current economic conditions. The information set
forth herein should be read in light of such risks. We undertake no
obligation to update these statements to reflect ensuing events or
circumstances, or subsequent actual results.
| HEI, INC. | ||||||||
| BALANCE SHEETS | ||||||||
March 30, 2013 | December 29, 2012 | |||||||
| (In thousands, except share and per share data) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | - | $ | - | ||||
| Accounts receivable, net | 5,547 | 4,538 | ||||||
| Inventories, net | 5,722 | 5,454 | ||||||
| Deferred income taxes | 804 | 804 | ||||||
| Other current assets | 347 | 712 | ||||||
| Total current assets | 12,420 | 11,508 | ||||||
| Property and equipment: | ||||||||
| Land | 216 | 216 | ||||||
| Building and improvements | 4,337 | 4,337 | ||||||
| Fixtures and equipment | 28,784 | 28,554 | ||||||
| Accumulated depreciation and amortization | (27,429 | ) | (27,005 | ) | ||||
| Property and equipment, net | 5,908 | 6,102 | ||||||
| Security deposit | 230 | 230 | ||||||
| Other long-term assets | 191 | 205 | ||||||
| Total assets | $ | 18,749 | $ | 18,045 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,387 | $ | 3,129 | ||||
| Accrued liabilities | 1,383 | 1,019 | ||||||
| Customer deposit liabilities | 119 | 712 | ||||||
| Current maturities of long-term liabilities | 1,124 | 1,120 | ||||||
| Total current liabilities | 6,013 | 5,980 | ||||||
| Long-term liabilities: | ||||||||
| Deferred income taxes | 804 | 804 | ||||||
| Other long-term liabilities, less current maturities | 2,383 | 2,465 | ||||||
| Long-term debt, less current maturities | 5,644 | 5,583 | ||||||
| Total long-term liabilities, less current maturities | 8,831 | 8,852 | ||||||
| Total liabilities | 14,844 | 14,832 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity: | ||||||||
| Undesignated stock | - | - | ||||||
| Convertible preferred stock, $.05 par | 2 | 2 | ||||||
| Common stock, $.05 par | 513 | 513 | ||||||
| Additional paid-in capital | 28,696 | 28,641 | ||||||
| Accumulated deficit | (25,306 | ) | (25,943 | ) | ||||
| Total shareholders’ equity | 3,905 | 3,213 | ||||||
| Total liabilities and shareholders’ equity | $ | 18,749 | $ | 18,045 | ||||
| HEI, INC. | ||||||||
| STATEMENTS OF OPERATIONS | ||||||||
| Three Months Ended | ||||||||
| March 30, 2013 | March 31, 2012 | |||||||
| (In thousands, except share and per share data) | ||||||||
| Net sales | $ | 12,516 | $ | 9,065 | ||||
| Cost of sales | 10,491 | 7,872 | ||||||
| Gross profit | 2,025 | 1,193 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 1,135 | 1,273 | ||||||
| Operating income (loss) | 890 | (80 | ) | |||||
| Interest expense, net | (90 | ) | (91 | ) | ||||
| Other income (expense), net | (150 | ) | 14 | |||||
| Income (loss) before income taxes | 650 | (157 | ) | |||||
| Income tax expense | 14 | - | ||||||
| Net income (loss) | $ | 636 | $ | (157 | ) | |||
Income (loss) per common share: | ||||||||
| Basic | $ | 0.06 | $ | (0.02 | ) | |||
| Diluted | $ | 0.06 | $ | (0.02 | ) | |||
Weighted average common shares outstanding: | ||||||||
| Basic | 10,180,352 | 10,120,023 | ||||||
| Diluted | 10,180,352 | 10,120,023 | ||||||
| Certain minor reclassifications have been made to our prior period financial information in order to conform to the current year presentation. | ||||||||
Contacts:
Mark B. Thomas, CEO, 952-443-2500
