GREENWICH, Conn., Nov. 13, 2006 (PRIMEZONE) -- The LGL Group, Inc. (AMEX:LGL), formerly Lynch Corporation, today announced that consolidated revenues for the three months ended September 30, 2006, were $13.0 million compared to $10.7 million for the three months ended September 30, 2005. The net increase in revenues came from improved foreign sales at Mtron/PTI.
For the three months ended September 30, 2006, the company reported net income of $903,000 or $0.42 per fully diluted share, compared to net income of $696,000 or $0.43 per fully diluted share, for the three months ended September 30, 2005. Weighted average basic shares outstanding were 2,154,702 for the three months ended September 30, 2006, and 1,617,934 for the three months ended September 30, 2005. Fully diluted weighted average shares outstanding were 2,159,702 for the three months ended September 30, 2006, and 1,617,934 for the three months ended September 30, 2005.
LGL Group, Inc. is a holding company for two manufacturing subsidiaries:
Mtron/PTI designs and manufactures components that control the frequency of electronic signals in communications systems.
Lynch Systems produces advanced manufacturing systems for the electronic display and consumer glass industries.
For the third quarter 2006, revenues at Mtron/PTI increased by $2.0 million, or 22.2%, to $11.0 million, from $9.0 million in the same quarter prior year, primarily due to the improved sales of filters and resonators. For the third quarter 2006, revenues at Lynch Systems increased 17.7% from $1.8 million to $2.0 million. Historically, Lynch Systems has been subject to market cyclicality.
The Company's operating loss for the third quarter 2006 was $29,000 compared to a $516,000 loss for the third quarter 2005. Mtron/PTI had an operating profit of $686,000, an improvement of $146,000 compared to the third quarter of 2005, primarily due to increased sales. Lynch Systems had an operating loss of $311,000 compared to an operating loss of $518,000 in the third quarter 2005. The reduction amounted to $207,000 and was partly due to lower overhead expenses and a $100,000 provision taken in 2005 for bad debts. For the third quarter 2006, corporate expenses were $404,000, a decrease of $135,000 compared to the third quarter 2005, primarily due to a non-recurring reserve of $200,000 for a lawsuit settlement in September 2005.
Investment income for the third quarter 2006 was $711,000, an increase of $128,000 compared to $583,000 for the third quarter 2005, due to realized gains on the sale of marketable securities. Interest expense for the third quarter 2006 was $151,000, versus $217,000 for the same quarter prior year, a decrease of $66,000, primarily due to lower debt outstanding, partially offset by higher interest rates.
The income tax benefit of $389,000 in the third quarter of 2006 included a $504,000 non-recurring reduction to the income tax reserve, which offset the $115,000 provision for income taxes.
EBITDA FROM OPERATIONS improved $348,000 to $695,000, from $347,000 for the third quarter 2006 compared to the same quarter in 2005. EBITDA at Mtron/PTI improved $110,000 to $966,000 in the third quarter, from $856,000 in the same quarter in 2005. EBITDA at Lynch Systems improved $238,000 from a $509,000 loss to a $271,000 loss compared to the same quarter in 2005.
Total backlog orders of manufactured products at September 30, 2006, were $13.7 million, a $152,000 decrease compared to the total backlog at December 31, 2005, and an increase of $638,000 compared to September 30, 2005. The backlog at September 30, 2006, at Lynch Systems was $4.8 million, compared to $4.9 million at December 31, 2005, and at September 30, 2005. The backlog at September 30, 2006 at Mtron/PTI was $8.9 million, unchanged from December 31, 2005, an $800,000 increase from the September 30, 2005, balance of $8.2 million.
At September 30, 2006, the cash and cash equivalents were $4.0 million compared to $5.5 million at December 31, 2005. The total assets and total debt at September 30, 2006, were $33.7 million and $8.7 million, respectively, compared to $32.7 million and $9.1 million at December 31, 2005.
For more information on the company and its products and services, contact John C. Ferrara, President, or Jeremiah Healy, CFO, LGL Group, Inc., 140 Greenwich Avenue, 4th Floor, Greenwich, Connecticut 06830, (203) 622-1150, or visit the company's Web site: www.LGLGroup.com.
Caution Concerning Forward-Looking Statements
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in Lynch Corporation's filings with the Securities and Exchange Commission.
THE LGL GROUP,INC.
STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Data)
Three Months Nine Months
Ended Sept 30, Ended Sept 30,
--------------------- ---------------------
2006 2005 2006 2005
========== ========== ========== ==========
SALES
Mtron/PTI $11,042 $8,993 $31,364 $26,226
Lynch Systems $1,996 1,752 6,911 10,027
---------- ---------- ---------- ----------
Consolidated Total 13,038 10,745 38,275 36,253
OPERATING EXPENSES
Mtron/PTI 10,356 8,453 28,576 24,469
Lynch Systems 2,308 2,270 7,833 8,697
---------- ---------- ---------- ----------
Operating Expense 12,664 10,723 36,409 33,166
Corporate expenses --
Unallocated 404 538 1,051 1,375
---------- ---------- ---------- ----------
Consolidated Total 13,068 11,261 37,460 34,541
OPERATING PROFIT (LOSS)
Mtron/PTI 686 540 2,788 1,757
Lynch Systems (311) (518) (922) 1,330
---------- ----------- ---------- ---------
Operating Profit 375 22 1,866 3,087
Corporate expenses --
Unallocated 404 538 1,051 1,375
---------- ---------- ---------- ----------
Consolidated Total (30) (516) 815 1,712
OTHER INCOME (EXPENSE)
Investment income 711 583 1,229 600
Interest expense (151) (217) (493) (610)
Other income
(Expense) (17) (12) (25) 68
---------- ---------- ---------- ----------
Consolidated Total 544 354 711 58
INCOME BEFORE INCOME TAXES 514 (162) 1,526 1,770
INCOME TAX BENEFIT (389) (858) (242) (327)
---------- ---------- ---------- ----------
NET INCOME $903 $ 696 $1,768 $2,097
========== ========== ========== ==========
BASIC WEIGHTED AVERAGE
SHARES OUTSTANDING 2,154,702 1,617,934 2,154,702 1,626,801
BASIC INCOME PER
SHARE: $0.42 $0.43 $0.82 $1.29
========== ========== ========== ==========
FULLY DILUTED WEIGHTED
AVERAGE SHARES
OUTSTANDING 2,159,702 1,617,934 2,156,702 1,626,801
FULLY DILUTED INCOME PER
SHARE: $0.42 $0.43 $0.82 $1.29
========== ========== ========== ==========
EARNINGS (LOSS) BEFORE INTEREST, TAXES, DEPRECIATION & AMORTIZATION
(EBITDA)
Mtron/PTI 966 856 3,585 2,493
Lynch Systems (271) (509) (758) 1,350
---------- ---------- ---------- ---------
EBITDA from
Operations 695 347 2,827 3,843
Corporate expenses (net)
Unallocated 402 412 1,046 996
---------- ------------ --------- --------
Consolidated Total $293 $ (65) $1,781 $2,847
========== ============ ========== =======
THE LGL GROUP, INC.
RECONCILIATION OF NON-GAAP RESULTS
(Dollars in Thousands, Except Per Share Data)
Three Months Nine Months
Ended Sept 30, Ended Sept 30,
--------------- ---------------
2006 2005 2006 2005
======= ======= ======= =======
RECONCILIATION OF NON-GAAP EBITDA
Operating profit as reported ($29) ($516) $815 $1,712
Depreciation and amortization 322 451 966 1,135
------- ------- ------- -------
Non-GAAP EBITDA $293 ($ 65) $1,781 $2,847
======= ======= ======= =======
Year-to-date comparisons must take into account non-recurring expenses
and gains in both years.
EBITDA is presented because it is a widely accepted financial
indicator of value and ability to incur and service debt.
EBITDA is not a substitute for operating income or cash flow from
operating activities.
THE LGL GROUP, INC.
SELECTED BALANCE SHEET DATA
(Dollars in Thousands, Except Share Data)
Sept 30, Dec. 31,
SELECTED BALANCE SHEET DATA 2006 2005
---------- ----------
CASH AND CASH EQUIVALENTS $3,989 $5,512
RESTRICTED CASH 650 650
MARKETABLE SECURITIES 2,548 2,738
PROPERTY PLANT AND EQUIPMENT - COST 21,740 21,228
TOTAL ASSETS 33,744 32,664
TOTAL DEBT 8,704 9,084
TOTAL LIABILITIES 16,519 17,976
SHAREHOLDERS' EQUITY 17,224 14,688
BACKLOG -
MTRON/PTI 8,906 8,906
LYNCH SYSTEMS 4,802 4,954
---------- ----------
TOTAL BACKLOG 13,708 13,860
SHARES OUTSTANDING 2,154,702 2,154,702