-- Third quarter income from continuing operations of $193,000 or $.06 per diluted share. -- Orders booked for the third quarter of 2008 were $9.3 million. Orders booked were $24.7 million for the first nine months of 2008. -- Continuing solid third quarter-end backlog of $21.1 million. -- Book-to-bill ratio of 1.14 to 1 for the first nine months of 2008. -- Working capital of $11.6 million and current ratio of 3.4 to 1."
Investors are invited to participate in the financial results conference call on Tuesday, November 18, 2008 at 4:15 p.m. (Eastern) by dialing 1-800-723-6751(for International callers: 1-785-830-7980) five minutes prior to the scheduled start time, and reference the Merrimac Industries third quarter 2008 conference call. For those unable to participate, a replay will be available for seven days by dialing 1-888-203-1112, or 1-719-457-0820 for international callers, passcode number 5746902.
This conference call will also be broadcast live over the Internet by logging on to the web at this address: http://www.videonewswire.com/event.asp?id=53548
Should you be unable to participate during the live webcast, a link to the archived webcast will be posted on the Merrimac Industries, Inc. website http://www.merrimacind.com/
Merrimac Industries, Inc. is a leader in the design and manufacture of RF Microwave signal processing components, subsystem assemblies, and Multi-Mix(R) micro-multifunction modules (MMFM(R)), for the worldwide Defense, Satellite Communications (Satcom), Commercial Wireless and Homeland Security market segments. Merrimac is focused on providing Total Integrated Packaging Solutions(R) with Multi-Mix(R) Microtechnology, a leading edge competency providing value to our customers through miniaturization and integration. Multi-Mix(R) MMFM(R) provides a patented and novel packaging technology that employs a platform modular architecture strategy that incorporates embedded semiconductor devices, MMICs, resistors, passive circuit elements and plated-through via holes to form a three-dimensional integrated module used in High Power, High Frequency and High Performance mission-critical applications. Merrimac Industries facilities are registered under ISO 9001:2000, an internationally developed set of quality criteria for manufacturing operations.
Merrimac Industries, Inc. has facilities located in West Caldwell, NJ and San Jose, Costa Rica and has approximately 210 co-workers dedicated to the design and manufacture of signal processing components, gold plating of high-frequency microstrip and bonded stripline Teflon (PTFE) circuits and subsystems providing Total Integrated Packaging Solutions(R) for wireless applications. Merrimac (MRM) is listed on the American Stock Exchange. Multi-Mix(R), Multi-Mix PICO(R), MMFM(R), System In A Package(R), SIP(R) and Total Integrated Packaging Solutions(R) are registered trademarks of Merrimac Industries, Inc. For more information about Merrimac Industries, Inc. please visit our website http://www.merrimacind.com .
This press release contains statements relating to future results of the Company (including certain projections and business trends) that are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: risks associated with demand for and market acceptance of existing and newly developed products as to which the Company has made significant investments, particularly its Multi-Mix(R) products; the possibilities of impairment charges to the carrying value of our Multi-Mix(R) assets, thereby resulting in charges to our earnings; risks associated with adequate capacity to obtain raw materials and reduced control over delivery schedules and costs due to reliance on sole source or limited suppliers; slower than anticipated penetration into the satellite communications, defense and wireless markets; failure of our Original Equipment Manufacturer or OEM customers to successfully incorporate our products into their systems; changes in product mix resulting in unexpected engineering and research and development costs; delays and increased costs in product development, engineering and production; reliance on a small number of significant customers; the emergence of new or stronger competitors as a result of consolidation movements in the market; the timing and market acceptance of our or our OEM customers' new or enhanced products; general economic and industry conditions; the ability to protect proprietary information and technology; competitive products and pricing pressures; our ability and the ability of our OEM customers to keep pace with the rapid technological changes and short product life cycles in our industry and gain market acceptance for new products and technologies; risks relating to governmental regulatory actions in communications and defense programs; and inventory risks due to technological innovation and product obsolescence, as well as other risks and uncertainties as are detailed from time to time in the Company's Securities and Exchange Commission filings. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Merrimac Industries, Inc. Summary of Condensed Consolidated Statements of Operations (Unaudited) Quarters Ended September 27, September 29, 2008 (a) 2007 (a) Net sales $8,328,000 $6,612,000 Gross profit 2,749,000 2,816,000 Selling, general and administrative expenses 2,423,000 2,099,000 Research and development 106,000 400,000 Operating income 220,000 317,000 Interest and other (expense), net (17,000) (72,000) Provision for income taxes 10,000 - Income from continuing operations 193,000 245,000 Loss from discontinued operations, after taxes in 2007 (11,000) (2,058,000) Net income (loss) $182,000 $(1,813,000) Net income (loss) per common share: Income from continuing Operations - basic $.06 $.08 (Loss) from discontinued operations - basic $- $(.70) Net income (loss) per common share - basic $.06 $(.62) Income from continuing operations - diluted $.06 $.08 (Loss) from discontinued operations - diluted $- $(.69) Net income (loss) per common share - diluted $.06 $(.61) Weighted average number of shares outstanding - basic 2,948,000 2,917,000 Weighted average number of shares outstanding - diluted 2,966,000 2,960,000 (a) In accordance with the provisions of SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the operating results of Filtran Microcircuits Inc. for the current and prior period have been reported as discontinued operations. Merrimac Industries, Inc. Summary of Condensed Consolidated Statements of Operations (Unaudited) Nine Months Ended September 27, September 29, 2008 (a) 2007 (a) Net sales $21,576,000 $16,495,000 Gross profit 8,448,000 6,880,000 Selling, general and administrative expenses 7,021,000 6,293,000 Research and development 853,000 1,219,000 Operating income (loss) 574,000 (632,000) Interest and other (expense) income, net (127,000) (56,000) Income (loss) from continuing operations 447,000 (688,000) Provision for income taxes 10,000 - Loss from discontinued operations (66,000) (5,858,000) Net income (loss) $371,000 $(6,546,000) Net income (loss) per common share: Income from continuing operations - basic $.15 $(.23) (Loss) from discontinued operations - basic $(.02) $(1.97) Net income (loss) per common share - basic $.13 $(2.20) Income from continuing operations - diluted $.15 $(.23) (Loss) from discontinued operations - diluted $(.02) $(1.97) Net income (loss) per common share - diluted $.13 $(2.20) Weighted average number of shares outstanding - basic 2,940,000 2,975,000 Weighted average number of shares outstanding - diluted 2,965,000 2,975,000 (a) In accordance with the provisions of SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the operating results of Filtran Microcircuits Inc. for the current and prior period have been reported as discontinued operations. Merrimac Industries, Inc. Condensed Consolidated Balance Sheets June 28, 2008 December 29, 2007 (Unaudited) (Unaudited) ASSETS Current assets: Cash and cash equivalents $1,923,000 $2,004,000 Accounts receivable, net 6,893,000 5,300,000 Inventories 5,886,000 5,040,000 Other current assets 620,000 774,000 Revenue in excess of billing 1,186,000 - Due from assets sale contract - 664,000 Total current assets 16,508,000 13,782,000 Property, plant and equipment, net 9,720,000 10,956,000 Restricted cash - 250,000 Other assets 510,000 532,000 Deferred tax assets 52,000 52,000 Total Assets $26,790,000 $25,572,000 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Current liabilities: Current portion of long-term debt $1,550,000 $550,000 Accounts payable 905,000 944,000 Other current liabilities 2,354,000 2,328,000 Deferred tax liabilities 52,000 52,000 Income taxes payable 10,000 - Total current liabilities 4,871,000 3,874,000 Long-term debt, net of current portion 3,146,000 3,763,000 Deferred liabilities 64,000 61,000 Total liabilities 8,081,000 7,698,000 Stockholders' equity: Common stock 33,000 33,000 Additional paid-in capital 20,253,000 19,790,000 Retained earnings 1,545,000 1,173,000 Treasury stock (3,122,000) (3,122,000) Stockholders' equity 18,709,000 17,874,000 Total Liabilities and Stockholders' Equity $26,790,000 $25,572,000 Merrimac Industries, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Nine Months Ended September 27, September 29, 2008 (a) 2007 (a) Cash flows from operating activities: Net income (loss) $371,000 $(6,546,000) Less, loss from discontinued operations (66,000) (5,858,000) Income (loss) from continuing operations 437,000 (688,000) Adjustments to reconcile loss from continuing operations to net cash provided by (used in) operating activities: Depreciation and amortization 1,908,000 1,757,000 Amortization of deferred financing costs 24,000 23,000 Share-based compensation 376,000 223,000 Changes in operating assets and liabilities: Accounts receivable (1,593,000) (1,385,000) Inventories (846,000) (742,000) Revenue in excess of billing (1,186,000) - Other current assets 49,000 57,000 Other assets 69,000 (30,000) Other current liabilities 31,000 245,000 Deferred liabilities 2,000 18,000 Net cash used by operating activities - continuing operations (729,000) (522,000) Net cash used by operating activities - discontinued operations (66,000) (363,000) Net cash used by operating activities (795,000) (885,000) Cash flows from investing activities: Purchases of capital assets (672,000) (1,071,000) Proceeds from sale of discontinued operations 665,000 - Net cash used in investing activities - continuing operations (7,000) (1,071,000) Net cash used in investing activities - discontinued operations - (180,000) Net cash provided by (used in) investing activities (7,000) (1,251,000) Cash flows from financing activities: Repurchase of common stock for the treasury - (2,148,000) Borrowings under revolving credit facility 1,000,000 - Repayment of long-term debt (617,000) (413,000) Restricted cash returned (deposited) 250,000 (250,000) Proceeds from the exercise of stock options 29,000 74,000 Proceeds from Stock Purchase Plan sales 59,000 79,000 Net cash provided by (used in) financing Activities - continuing operations 721,000 (2,658,000) Net cash used in financing activities - discontinued operations - (52,000) Net cash provided by (used in) financing activities 721,000 (2,710,000) Effect of exchange rate changes - 33,000 Net decrease in cash and cash equivalents (81,000) (4,813,000) Cash and cash equivalents at beginning of period, including $562,000 reported under assets held for sale in 2007 2,004,000 5,961,000 Cash and cash equivalents at end of period, including $43,000 reported under assets held for sale in 2007 $1,923,000 $1,148,000 (a) In accordance with the provisions of SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," the operating results of Filtran Microcircuits Inc. for the current and prior period have been reported as discontinued operations.