FAIR LAWN, N.J., Aug. 13 /PRNewswire-FirstCall/ -- Henry Bros. Electronics, Inc. (NASDAQ:HBE), a turnkey provider of technology-based integrated electronic security solutions, today announced results for the second quarter ended June 30, 2009. The Company reported revenue of $14.0 million for the three months ended June 30, 2009, representing a 7.6% decrease over revenue of $15.1 million for the same period a year ago. Revenue was down in all of the Company's integration regions in the second quarter of 2009 versus the same quarter in the prior year, with the exception of Colorado, which was up 57.7%. The New Jersey region had the greatest decrease, as a result of the winding down of large projects that were not replaced by similar projects due to competitive margin pressure. The protracted credit freeze and economic downturn which is having a significant negative impact on construction markets and capital spending patterns of commercial businesses are also contributing to this decline in revenue. Partially offsetting these declines was an increase in revenue from the Company's TVCS contract with L-3 Communications. The Company reported net income of $55,253 or $0.01 per diluted share, for the second quarter ended June 30, 2009, compared to net income of $337,261, or $0.06 per diluted share, in the comparable period of 2008. The Company's decrease in net income is principally the result of the reduction in revenue in the aforementioned regions and the costs associated with the investment in a larger sales staff. Revenue for the six-month period ended June 30, 2009 was $29.3 million, representing a decrease of 5.6% over revenue of $31.0 million for the six months ended June 30, 2008. Net income for the 2009 six-month period was $221,375, or $0.04 per diluted share, compared to net income of $621,218, or $0.10 per diluted share, for the 2008 six-month period. The Company's backlog as of June 30, 2009 was $22.7 million, compared to $23.7 million at December 31, 2008. The decline in backlog is a primary result of work completed on several large public agency jobs in New Jersey / New York, partially offset by the recent amendment of an existing contract with the New York City Housing Authority. As a result of the lingering economic softness and delays related to the Company's TVCS project, the Company is lowering its guidance from an operating profit of 6% on revenue of $80 million for fiscal 2009 to an operating profit of 3% to 5% on revenue of between $65 million and $70 million for fiscal 2009. Jim Henry, CEO of Henry Bros. Electronics, commented, "Although the second quarter proved to be a challenging one for our company, primarily due to the lingering effect of the macroeconomic slowdown, we remain optimistic about the positioning of our business. This confidence comes from the fact that much of our shortfall is a result of larger projects having longer sales cycles due to the economic downturn. The fundamentals of our business remain intact, and our brand is stronger than ever before. We plan to continue to add additional collateral material, quality staff, and support systems for this staff in order to position them for taking advantage of the best prospecting opportunities. We believe that this is the best long term strategy for our company." Henry concluded, "Looking forward, I am happy to announce that the New York City Housing Authority recently amended an existing $5 million contract with our company to $10 million. The contract is for the installation and maintenance of multiple CCTV systems. We are also positioning ourselves to benefit from activity coming from the new Chemical Facility Anti-Terrorism Standards (or CFATS) legislation. Before a company in our industry can even speak with a prospective CFATS client, you are required to have a CVI number, which encompasses the passing of a qualifying test to be registered. To date, 19 of our sales people have qualified for their CVI number, and we expect to focus intently on this potentially lucrative market over the next six to eight quarters. We also now expect to complete $10 million of TVCS project related to work in the second half of this year, mostly in the fourth quarter." Conference Call Information: Henry Bros. Electronics will be hosting a conference call on August 13, 2009, at 11 a.m. ET. To participate on the call, please use the following number and conference code: (888) 562-3356 (Domestic) (973) 582-2700 (International) Conference code: 22808579 A replay of the call will be available from 08/13/2009 at 12 p.m., ET, through 09/13/2009 at 11:59 p.m., ET. To access the replay, please call (800) 642-1687 in the United States or (706) 645-9291 outside the United States. To access the replay, users will need to enter the following code: 22808579. About Henry Bros. Electronics, Inc. Henry Bros. Electronics (NASDAQ:HBE) provides technology-based integrated electronic security systems, services and emergency preparedness consultation to commercial enterprises and government agencies. The Company has offices in Arizona, California, Colorado, Maryland, New Jersey, New York, Texas and Virginia. For more information, visit http://www.hbe-inc.com/. Safe Harbor Statement: Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. In particular, there can be no assurance that the Company will achieve revenues of $65 to $70 million or a 3% to 5% operating profit in 2009. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading of risk factors listed in the Company's filings with the U.S. Securities and Exchange Commission. Henry Bros. Electronics Inc. does not assume any obligation to update the forward-looking information. Investor Contacts: Todd Fromer KCSA Strategic Communications 212-896-1215 Jim Henry, Chairman & Chief Executive Officer Henry Bros. Electronics, Inc. 201-794-6500 Tables follow HENRY BROS. ELECTRONICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Unaudited) Six months ended June 30, Three months ended June 30, ------------------------- -------------------------- 2009 2008 2009 2008 ---- ---- ---- ---- Revenue $29,280,192 $31,029,997 $13,971,980 $15,123,951 Cost of revenue 21,168,069 23,498,938 10,081,871 11,282,000 ---------- ---------- ---------- ---------- Gross profit 8,112,123 7,531,059 3,890,109 3,841,951 Operating expenses: Selling, general & administrative expenses 7,562,645 6,256,168 3,691,785 3,126,987 --------- --------- --------- --------- Operating profit 549,478 1,274,891 198,324 714,964 Interest income 9,037 52,981 2,067 22,937 Other income 15,794 8,248 2,608 4,034 Interest expense (165,407) (142,728) (99,706) (65,995) -------- -------- ------- ------- Income before tax expense 408,902 1,193,392 103,293 675,940 Tax expense 187,527 572,174 48,040 338,679 ------- ------- ------ ------- Net income $221,375 $621,218 $55,253 $337,261 ======== ======== ======= ======== BASIC EARNINGS PER COMMON SHARE: -------------- Basic earnings per common share $0.04 $0.11 $0.01 $0.06 ===== ===== ===== ===== Weighted average common shares 5,850,048 5,772,864 5,870,291 5,772,864 ========= ========= ========= ========= DILUTED EARNINGS PER COMMON SHARE: -------------- Diluted earnings per common share: $0.04 $0.10 $0.01 $0.06 ===== ===== ===== ===== Weighted average diluted common shares 6,044,499 5,976,008 6,064,742 5,976,008 ========= ========= ========= ========= DATASOURCE: Henry Bros. Electronics Inc. CONTACT: Todd Fromer, KCSA Strategic Communications, +1-212-896-1215, ; or Jim Henry, Chairman & Chief Executive Officer, Henry Bros. Electronics, Inc., +1-201-794-6500, Web Site: http://www.hbe-inc.com/

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