VIENNA, Va., Feb. 12, 2002 (PRIMEZONE) -- Allied Research Corporation (AMEX:ALR) announces consolidated net sales, gross margins, net earnings from continuing operations and earnings per share for the fourth quarter and year ended December 31, 2001.
Net sales for the quarter ended December 31, 2001, were approximately $27.3 million as compared to $30.4 million for the same period in 2000. The gross margin increased by 11% or approximately $1.1 million to approximately $11.3 million as compared to $10.2 million for the same period in 2000.
Net sales for the fiscal year ended December 31, 2001, were approximately $96.9 million as compared to $107.7 million for the same period in 2000. The gross margin increased by 21% or approximately $5.9 million to approximately $33.7 million as compared to $27.8 million for the same period in 2000. As has been the case each quarter of 2001, the revenue decrease from 2000 is the result of a change in mix of orders received directly versus through Mecar's distributor/value added reseller.
Net Earnings from Continuing Operations increased 26% for the quarter ended December 31, 2001, to approximately $4.0 million or $0.81 per share (basic) and $0.80 per share (diluted) as compared to $3.2 million or $.66 per share (basic and diluted) for the same period in 2000. This reflects Allied's ninth consecutive profitable quarter.
Net Earnings from Continuing Operations increased 19% for the year ended December 31, 2001, to approximately $10.4 million or $2.11 per share (basic) and $2.10 (diluted), as compared to Earnings from Continuing Operations of $8.7 million or $1.79 per share (basic and diluted) for the same period in 2000. This is a 17% increase in Earnings Per Share for 2001.
The quarterly and yearly earnings increases were positively impacted at Mecar by a better-than-planned performance on a first time contract. The contract should be completed in mid-2002. Mecar should have a strong 2002 based on its current backlog and anticipated additional orders.
General (Retired) J.H. Binford Peay, III, Chairman, President and Chief Executive Officer of Allied Research, said, "2001 was a very profitable year. I am very pleased that our team reached the goals it set out to accomplish. Our performance is a real tribute to the strength of our management team and all of our dedicated employees. We set a decisive precedent, which we expect to build on, with all indications pointing to a strong 2002, as well.
"We expect the performances demonstrated by our Mecar and VSK Group to continue. Initiatives in new markets and exceptional customer satisfaction should expand their successes in 2002. The addition of NS Microwave extends Allied's portfolio of security companies to North America. It fits well in Allied's niche strategy in the high-end specialty security businesses, and is expected to perform well and contribute to the success of the Company.
"We have established a niche in our markets and have become a recognized and respected defense and security firm providing high-quality products and reliable service. We look forward to more opportunities for growth in the next year, as we strive to accomplish our always renewing goal: to increase shareholder value," General Peay concluded.
About Allied Research Corporation
Allied Research Corporation is a diversified defense and commercial electronic security firm, developing and producing conventional ammunition marketed to defense departments worldwide; and designing, producing and marketing sophisticated electronic security systems for European, African, and North American markets.
Allied Research Corporation
(All amounts in millions of US Dollars except per share amounts)
Three Months Twelve Months
Ended 12/31 Ended 12/31
2001 2000 2001 2000
---- ---- ---- ----
Sales $ 27.3 $ 30.4 $ 96.9 $ 107.7
Gross Margin 11.3 10.2 33.7 27.8
Earnings from
continuing operations 4.0 3.2 10.4 8.7
Net Earnings 4.0 3.2 10.4 9.2
Earnings Per Share
from continuing
operations
(Basic) 0.81 0.66 2.11 1.79
(Diluted) 0.80 0.66 2.10 1.79
Net Earnings Per Share
(Basic) 0.81 0.66 2.11 1.90
(Diluted) 0.80 0.66 2.10 1.90
Weighted average
shares outstanding
(Basic) 4,941,018 4,822,328 4,905,114 4,844,267
(Diluted) 4,969,651 4,823,881 4,946,862 4,846,399
For more Information, please visit the Company web site: www.alliedresearch.com
Certain statements contained herein are "forward-looking" statements as such term is defined in the Private Securities Litigation Reform Act of 1995. Because statements include risks and uncertainties, actual results may differ materially from those expressed or implied and include, but are not limited to, those discussed in filings by the Company with the Securities and Exchange Commission.