* Return to profitability with quarterly adjusted EBITDA of $2.6 million * Backlog increases to $19.2 million or 10% over last year * Inform segment quarterly sales increase 35% over last year
CHICAGO, Aug. 20, 2009 (GLOBE NEWSWIRE) -- Quixote Corporation (Nasdaq:QUIX) today reported results for its fiscal 2009 fourth quarter and full year ended June 30, 2009.
For the fiscal 2009 fourth quarter, net sales were $26,792,000 compared to net sales of $28,554,000 in the fourth quarter of fiscal 2008. Operating profit in the fourth quarter of fiscal 2009 was $1,564,000, which included severance costs of $170,000, or $0.01 per diluted share. Operating profit in the fourth quarter of fiscal 2008 was $3,957,000. Earnings from continuing operations for the fourth quarter of fiscal 2009 were $624,000, or $0.07 per diluted share, compared to earnings from continuing operations of $2,239,000, or $0.24 per diluted share, for the fourth quarter of fiscal 2008. Net earnings for the fourth quarter of fiscal 2009 were $624,000, or $0.07 per diluted share, compared to net earnings of $406,000, or $0.04 per diluted share, for the fourth quarter of fiscal 2008. Net earnings for the fourth quarter of fiscal 2008 included a loss from discontinued operations of $1,833,000, or $0.20 per diluted share, related to the divested Intersection Control segment.
For the full fiscal year 2009, net sales were $94,093,000 compared to net sales of $101,806,000 in fiscal 2008. The operating loss for the full fiscal year 2009 was $11,669,000, which included a non-cash asset impairment charge of $9,246,000, or $0.74 per diluted share, from an interim assessment of goodwill impairment in the fiscal 2009 third quarter, and severance costs totaling $1,342,000, or $0.09 per diluted share. Excluding the non-cash asset impairment charge and severance costs, the operating loss for the full fiscal year 2009 was $1,081,000, compared to operating profit of $8,344,000, for the full fiscal year 2008. The net loss for fiscal 2009 was $11,110,000, or $1.20 per diluted share, which included the items mentioned above and a loss from discontinued operations of $758,000, or $0.08 per diluted share. Net earnings for the full fiscal year 2008 were $471,000, or $0.05 per diluted share, which included a loss from discontinued operations of $2,648,000, or $0.29 per diluted share. Please refer to the attached tables for a reconciliation of GAAP to non-GAAP financial measures.
Bruce Reimer, President and Chief Executive Officer, commented, "We are pleased with our results for the fourth quarter which reflect a return to profitability and solid cash flow generation of $2.6 million in adjusted EBITDA. Results for the fourth quarter reflect marked improvement over the third quarter with 21% growth in revenue. Our overall sales performance was driven by the Protect and Direct segment, which had sales growth of 25% over the third fiscal quarter of 2009 primarily as a result of its seasonal pick up in activity. We are particularly pleased with the growth in our Inform segment as sales increased 11% from the 2009 third fiscal quarter and 35% from the 2008 fourth fiscal quarter. We also began to see signs of improving demand as we ended the year with total backlog of $19.2 million, an increase of 10% over last year."
Mr. Reimer continued, "Fiscal 2009 was clearly a challenging year for us. The global economic downturn particularly impacted state transportation spending resulting in reduced demand for our products. In response, we aggressively managed our costs to better align them with current business conditions. We reduced headcount by 12% and believe we have removed approximately $4 million from our cost structure. In addition, we made great strides in managing our working capital by lowering both inventories and accounts receivable. As we emerge from fiscal 2009, we are now a leaner, more efficient company with a much improved cost structure."
Mr. Reimer concluded, "Looking ahead, although our visibility remains limited, we are cautiously optimistic that there will be an increase in domestic spending as a result of the $27 billion in transportation stimulus funding which we believe will help drive our results domestically for the next 18 to 24 months. We also believe that international markets will continue to be an important source of growth. These drivers along with a more efficient cost structure position us well for modest growth and improved profitability. As a result, we anticipate that our first quarter of fiscal year 2010 will be similar to the prior year's first quarter."
Quixote Corporation will be hosting a telephone conference call at 10 a.m., Eastern Time, today, August 20, 2009, to further discuss its quarterly results and corporate developments. This conference call will be broadcast simultaneously over the Internet at www.quixotecorp.com and may be accessed and listened to by clicking the icon on the Company's homepage.
Quixote Corporation, (www.quixotecorp.com), through its wholly-owned subsidiaries, Quixote Transportation Safety, Inc. and Quixote Transportation Technologies, Inc., is the world's leading manufacturer of energy-absorbing highway crash cushions and truck-mounted attenuators, electronic wireless measuring and sensing devices, road weather information systems, computerized highway advisory radio transmitting systems, flexible post delineators and other transportation safety products.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include statements regarding our expectations, beliefs, intentions, plans, projections, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are not historical facts, including statements concerning our position with respect to net operating losses and possible limitations on their use. Actual results may differ materially from those expressed or implied by the forward-looking statements contained in this release. Forward-looking statements are subject to numerous risks, uncertainties and assumptions about us and our business. Important factors that could cause actual results to differ materially from those in the forward looking statements include the risks and uncertainties discussed in our Form 10-Q Report for the quarter ended March 31, 2009, under the caption "Forward-Looking Statements" in Management's Discussion and Analysis of Financial Condition and Results of Operations and the caption "Risk Factors" at Item 1A of Part II, which discussion is incorporated herein by this reference. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We do not undertake to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
Quixote Corporation Earnings Summary (Unaudited) Three Months Ended Twelve Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net sales $26,792,000 $28,554,000 $94,093,000 $101,806,000 Cost of sales 18,094,000 17,268,000 66,397,000 64,967,000 ----------- ----------- ------------ ------------ Gross profit 8,698,000 11,286,000 27,696,000 36,839,000 Operating (income) expenses: Selling & administrative 6,319,000 6,282,000 25,738,000 24,845,000 Research & development 645,000 1,047,000 3,039,000 3,650,000 Severance costs 170,000 1,342,000 Asset impairment charge 9,246,000 ----------- ----------- ------------ ------------ 7,134,000 7,329,000 39,365,000 28,495,000 Operating profit (loss) 1,564,000 3,957,000 (11,669,000) 8,344,000 Other income (expense): Interest income 7,000 338,000 Interest expense (878,000) (1,032,000) (3,508,000) (4,338,000) ----------- ----------- ------------ ------------ (878,000) (1,032,000) (3,501,000) (4,000,000) Earnings (loss) from continuing operations before income taxes 686,000 2,925,000 (15,170,000) 4,344,000 Income tax provision (benefit) 62,000 686,000 (4,818,000) 1,225,000 ----------- ----------- ------------ ------------ Earnings (loss) from continuing operations 624,000 2,239,000 (10,352,000) 3,119,000 ----------- ----------- ------------ ------------ Discontinued Operations: Loss from operations, net of income taxes (507,000) (46,000) (1,322,000) Loss on sale of discontinued operations, net of income taxes (712,000) Loss on write-down of assets held for sale, net of income taxes (1,326,000) (1,326,000) ----------- ----------- ------------ ------------ Loss from discontinued operations, net of income taxes (1,833,000) (758,000) (2,648,000) ----------- ----------- ------------ ------------ Net earnings (loss) $624,000 $406,000 ($11,110,000) $471,000 =========== =========== ============ ============ Per share data - basic: Earnings (loss) from continuing operations $0.07 $0.24 ($1.12) $0.34 Loss from discontinued operations ($0.20) ($0.08) ($0.29) ----------- ----------- ------------ ------------ Net earnings (loss) $0.07 $0.04 ($1.20) $0.05 =========== =========== ============ ============ Average common shares outstanding 9,311,704 9,138,938 9,248,084 9,092,139 Per share data - diluted: Earnings (loss) from continuing operations $0.07 $0.24 ($1.12) $0.34 Loss from discontinued operations ($0.20) ($0.08) ($0.29) ----------- ----------- ------------ ------------ Net earnings (loss) $0.07 $0.04 ($1.20) $0.05 =========== =========== ============ ============ Average diluted common shares outstanding 9,311,704 9,138,938 9,248,084 9,121,103 Quixote Corporation Balance Sheet (Unaudited) As of As of June 30, June 30, 2009 2008 ---- ---- Assets Current assets Cash and cash equivalents $98,000 $408,000 Accounts receivable, net 20,920,000 23,801,000 Inventories, net 15,976,000 19,389,000 Other current assets 3,324,000 3,112,000 Assets of business held for sale 20,161,000 ------------ ------------ 40,318,000 66,871,000 ------------ ------------ Property, plant and equipment, net 15,920,000 16,711,000 Intangible assets and other, net 10,453,000 20,481,000 Deferred tax assets 18,901,000 13,371,000 Assets of business held for sale 4,109,000 ------------ ------------ $85,592,000 $121,543,000 ============ ============ Liabilities and Shareholders' Equity Current liabilities $50,399,000 $31,127,000 Liabilities of business held for sale 5,520,000 Long-term debt, net 40,000,000 Other long-term liabilities 1,028,000 1,059,000 Shareholders' equity 34,165,000 43,837,000 ------------ ------------ $85,592,000 $121,543,000 ============ ============ Quixote Corporation Other Information (Unaudited) Twelve Months Ended June 30, 2009 2008 ---- ---- Depreciation and amortization expense $3,400,000 $3,200,000 Capital expenditures $1,900,000 $3,400,000 Quixote Corporation Reconciliation of GAAP to Non-GAAP Measurements (Unaudited) Three Months Ended Twelve Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Operating profit (loss) $1,564,000 $3,957,000 ($11,669,000) $8,344,000 Add: Asset impairment charge 9,246,000 Severance costs 170,000 1,342,000 ---------- ---------- ------------ ------------ Operating profit excluding asset impairment charge and severance costs(a) $1,734,000 $3,957,000 ($1,081,000) $8,344,000 ========== ========== ============ ============ Three Months Ended Twelve Months Ended June 30, June 30, 2009 2008 2009 2008 ---- ---- ---- ---- Net earnings (loss) $624,000 $406,000 ($11,110,000) $471,000 Add: Loss from discontinued operations, 1,833,000 758,000 2,648,000 net of income taxes Income tax provision (benefit) 62,000 686,000 (4,818,000) 1,225,000 Interest expense, net 878,000 1,032,000 3,501,000 4,000,000 Depreciation and amortization expense 750,000 900,000 3,400,000 3,200,000 ---------- ---------- ------------ ------------ EBITDA from continuing operations(b) $2,314,000 $4,857,000 $(8,269,000) $11,544,000 ---------- ---------- ------------ ------------ Add: Asset impairment charge 9,246,000 Severance costs 170,000 1,342,000 Stock-based compensation expense 140,000 190,000 450,000 775,000 ---------- ---------- ------------ ------------ Adjusted EBITDA(b) $2,624,000 $5,047,000 $2,769,000 $12,319,000 ========== ========== ============ ============
(a) We believe that the asset impairment charge and severance costs affect the comparability of the results of operations of the 2009 fourth quarter and fiscal 2009 to the results of operations of the 2008 fourth quarter and fiscal 2008. The Company also believes that disclosing operating profit excluding those items will allow investors to more easily compare the results of the 2009 fourth quarter and fiscal 2009 to the results of the 2008 fourth quarter and fiscal 2008.
(b) EBITDA from continuing operations for this presentation represents net income (loss) from continuing operations for the respective periods excluding depreciation and amortization expense, interest income (expense) and income taxes. The Company defines EBITDA, as adjusted, ("Adjusted EBITDA") as EBITDA excluding non-cash impairment charges, severance costs and non-cash share-based compensation expense.
We consider Adjusted EBITDA an indicator of financial operating performance and as a measure of the ability to generate cash for operational and investing activities. Adjusted EBITDA is not a Generally Accepted Accounting Principle ("GAAP") measure of performance. We use this non-GAAP measure primarily to compare our performance with other companies and as a measure of liquidity. We believe that this measure may also be useful to investors for the same purpose and as an indication of our ability to generate cash flow. Investors should not consider this measure in isolation or as a substitute for income from operations, or cash flow from operations determined under GAAP, or any other measure for determining operating performance that is calculated in accordance with GAAP. In addition, because Adjusted EBITDA is not a GAAP measure, it may not necessarily be comparable to similarly titled measures employed by other companies.