Sevcon Reports Financial Results for Fourth Quarter and Year End Fiscal 2013
December 10 2013 - 5:10PM
Sevcon, Inc. (Nasdaq:SEV) reported financial results for the fourth
quarter and fiscal year ended September 30, 2013.
Fourth-Quarter Fiscal 2013 Results Summary
- Revenues were $8.9 million, compared with $8.0 million in the
fourth quarter of fiscal 2012, which reflects improving conditions
in the Company's markets.
- Operating income was $407,000, compared with $518,000 in the
fourth quarter last year which included a benefit of $794,000 from
freezing the Company's U.K. pension plan, partially offset by a
charge of $285,000 related to obsolete inventory. Excluding these
two items, operating income for the fourth quarter of fiscal 2012
was $9,000.
- There was an income tax provision of $307,000 in the fourth
quarter after recording a tax charge of $444,000 to write down the
value of deferred tax assets in the Company's U.K. controls
subsidiary due to a reduction in the U.K. corporate tax rate. This
compared with an income tax provision of $253,000 in the same
period last year.
- Net income was $45,000, or $0.01 per diluted share, compared
with net income of $285,000, or $0.08 per diluted share, a year
earlier. Excluding the deferred tax write-down in 2013 and the
pension benefit and inventory write-down in 2012, net income was
$489,000 in the fourth quarter of 2013 compared with a net loss of
$107,000 in the same period last year.
Full-Year Fiscal 2013 Results Summary
- Revenues were $32.2 million, compared with $35.5 million for
full-year fiscal 2012. This decline reflected product demand
fluctuations in most of the Company's markets, which were most
pronounced in the fourth quarter of fiscal 2012 and first quarter
of fiscal 2013.
- Operating loss was $948,000, which includes a $605,000
restructuring charge in the second quarter of fiscal 2013, compared
with operating income of $1.5 million, which included $200,000 in
U.K. government grant income and a benefit of $794,000 from
freezing the Company's U.K. pension plan for full-year fiscal
2012.
- There was an income tax benefit of $392,000 after recording a
tax charge of $444,000 to write down the value of deferred tax
assets in the Company's U.K. controls subsidiary due to a reduction
in the U.K. corporate tax rate. This compared with an income tax
provision of $401,000 in the prior year.
- Net loss was $1.1 million, a loss of $0.32 per share, compared
with net income of $1.2 million, or $0.35 per diluted share, for
full-year fiscal 2012. Excluding the deferred tax write-down in
2013 and the pension benefit and inventory write-down in 2012,
there was a net loss of $627,000 in 2013 compared with net income
of $803,000 in 2012.
Management Comments
"Sevcon's fourth-quarter growth was mainly the result of
increases in shipments to customers in the global aerial work
platform market," said President and CEO Matt Boyle. "The
underlying demand patterns have improved over the past three
quarters, with increased demand in the U.S and relative strength in
Asia. The key difference this quarter compared to the same quarter
in fiscal 2012 was in Europe, where the recent pattern reversed and
sales were up significantly year-over-year.
"In our traditional off-road markets, the ongoing improvement in
the global aerial work platform market continued to be offset
primarily by weakness in the mining sector," Boyle said. "In the
on-road sector, revenues were higher in Europe. At the same time,
we are seeing strong interest in using our control technology for
hybrid electric vehicles. We are also continuing to make good
progress in penetrating the overall two-wheel EV market on a global
basis, and Q4 was another quarter of solid growth in shipments of
controllers to OEM and Tier 1 suppliers to the scooter and
motorcycle markets in Europe, Asia and North America.
"Looking forward, we believe there is far greater stability in
our markets than at this point a year ago," continued Boyle. "While
there is still some volatility, we are encouraged by what we are
hearing from customers in both the off-road and on-road segments of
the market. The restructuring initiatives that we implemented
midway through fiscal 2013 are delivering the $2 million of
annualized operating cost reduction that we had anticipated. With a
lower cost structure and conservative balance sheet, we believe
that Sevcon is well-positioned for growth and improved
profitability as fiscal 2014 unfolds."
Fourth Quarter Fiscal 2013 Conference Call
Details
Sevcon has scheduled a conference call to review its results for
the fourth quarter and fiscal 2013 tomorrow, December 11, 2013 at
9:00 a.m. ET. Those who wish to listen to the conference call
webcast should visit the Investor Relations section of the
company's website at www.sevcon.com. The live call also can be
accessed by dialing (877) 407-5790 or (201) 689-8328 prior to the
start of the call. If you are unable to listen to the live call,
the webcast will be archived on the company's website.
Fourth Quarter Fiscal 2013 Financial
Highlights
(In thousands except per share data)
|
Three months ended
(unaudited) |
Twelve months ended |
|
September 30 2013 |
September 30 2012 |
September 30 2013 |
September 30 2012 |
Revenues |
$ 8,871 |
$ 8,021 |
$ 32,203 |
$ 35,515 |
Operating income (loss) |
407 |
518 |
(948) |
1,500 |
Income (loss) before income taxes |
352 |
538 |
(1,463) |
1,596 |
Income taxes (provision) benefit |
(307) |
(253) |
392 |
(401) |
Net income (loss) |
$ 45 |
$ 285 |
$ (1,071) |
$ 1,195 |
Basic income (loss) per share |
$ 0.01 |
$ 0.09 |
$ (0.32) |
$ 0.36 |
Diluted income (loss) per share |
$ 0.01 |
$ 0.08 |
$ (0.32) |
$ 0.35 |
Average shares outstanding |
3,362 |
3,331 |
3,357 |
3,329 |
Summarized Balance Sheet Data
|
September 30 2013 |
September 30 2012 |
|
|
|
Cash and cash equivalents |
$ 2,062 |
$ 2,823 |
Receivables |
7,103 |
5,858 |
Inventories |
5,723 |
6,346 |
Prepaid expenses and other current
assets |
1,862 |
1,922 |
Total current assets |
16,750 |
16,949 |
Long-term assets |
6,610 |
6,612 |
Total assets |
$ 23,360 |
$ 23,561 |
|
|
|
Current liabilities |
$ 6,060 |
$ 5,044 |
Liability for pension benefits |
8,354 |
10,264 |
Other long-term liabilities |
1,728 |
1,774 |
Stockholders' equity |
7,218 |
6,479 |
Total liabilities and stockholders'
equity |
$ 23,360 |
$ 23,561 |
About Sevcon, Inc.
Sevcon is a world leader in the design and manufacture of
microprocessor based controls for zero emission electric and hybrid
vehicles. The controls are used to vary the speed and movement of
vehicles, to integrate specialized functions and to optimize the
energy consumption of the vehicle's power source. The Company
supplies customers throughout the world from its operations in the
USA, the U.K., France and the Asia Pacific region and through an
international dealer network. Sevcon's customers are manufacturers
of on and off-road vehicles including cars, trucks, buses,
motorcycles, fork lift trucks, aerial lifts, mining vehicles,
airport tractors, sweepers and other electrically powered vehicles.
For more information visit www.sevcon.com.
Forward-Looking Statements
Statements in this release about Sevcon's prospects for fiscal
2014 and beyond are forward-looking statements subject to risks and
uncertainties that could cause actual results to differ materially
from those we anticipate. In particular: global demand for electric
vehicles may not grow as much as we expect; our customers' products
may not be as successful as those of other entrants in the electric
vehicle market who are supplied by our competitors; and we are
dependent on a few key suppliers and subcontractors for most
components, sub-assemblies and finished products, and we may not be
able to establish alternative sources of supply in time if supplies
are interrupted. Please see the Company's most recent forms
10-K and 10-Q on file with the SEC for further information
regarding Sevcon's risk factors.
CONTACT: David Calusdian
Sharon Merrill Associates
1 (617) 542 5300
SEV@InvestorRelations.com
Matt Boyle
President and CEO
1 (508) 281 5503
matt.boyle@Sevcon.com
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