BOCA RATON, Fla., Aug. 18 /PRNewswire-FirstCall/ -- Devcon
International Corp. (OTC:DEVC) (BULLETIN BOARD: DEVC) today
announced its second quarter financial results for the period ended
June 30, 2008. The Company reported revenues from continuing
operations of $13.9 million for the second quarter of 2008,
compared to revenues of $13.8 million for the same period last
year. Net loss from continuing operations for the quarter ended
June 30, 2008 was $(3.6) million or $(0.61) per fully diluted
share, compared to a net loss from continuing operations of $(2.4)
million, or ($0.39) per fully diluted share for the second quarter
of 2007. The $1.2 million increase in net loss from continuing
operations for the quarter ended June 30, 2008 versus the quarter
ended June 30, 2007 is primarily a result of the following factors:
-- A decrease in other income of $2.7 million related to the change
in the fair value of the derivative instrument when performing a
quarter over quarter comparison -- The realized tax benefit of $0.4
million during the quarter ended June 30, 2007. -- A net reduction
in SG&A and depreciation and amortization of $1.8 million.
Revenues from continuing operations were $27.6 million for the six
months ended June 30, 2008 compared to revenues of $28.0 million
for the six months ended June 30, 2007. The Company reported a net
loss from continuing operations for the six month period ended June
30, 2008 of $(8.3) million or $(1.40) per fully diluted share,
compared to a net loss from continuing operations of $(8.6)
million, or ($1.39) per fully diluted share for the first six
months of 2007. The $0.3 million decrease in net loss from
continuing operations for the six months ended June 30, 2008 versus
the six months ended June 30, 2007 primarily resulted from the
following: -- A decrease in revenue of $0.3 million resulting from
the softening of the housing market which impacted our new
construction division along with an increase in cost of sales of
$0.3 million due to an increase in service related expenses. -- A
reduction in SG&A, as well as depreciation and amortization of
approximately $2.9 million. -- A realized tax benefit of $1.0
million for the six months ended June 30, 2007 compared to $3,000
of expense for the six months ended June 30, 2008. -- A decrease in
other income of $1.2 million related to the change in the fair
value of the derivative instrument when performing a six month
comparison. Robert C. Farenhem, the Company's President, stated:
"We continue to focus on improving our efficiency and profitability
after successfully integrating our back office systems. During the
second quarter we have started to see these efforts reflected in
our operating results." Management will host a conference call for
investors on Tuesday, August 19, 2008 at 9:00AM EDT /6:00AM PDT.
Parties interested in listening to the conference call should call
800-240-6709. International callers should dial 303-262-2140. A
replay will be available for 30 days on the Company's website
http://www.devcon-security.com/ About Devcon Devcon International's
wholly-owned subsidiary, Devcon Security
(http://www.devcon-security.com/), is a leading provider of
installation, monitoring and related electronic security services,
currently monitoring more than 140,000 commercial and residential
sites in Florida, New York City and Staten Island. Since February,
2005, Devcon has made 3 significant acquisitions of full-service
electronic security services companies with significant
concentrations throughout Florida and the New York Metropolitan
region. Currently, Devcon Security Services Corp. is the second
largest security monitoring and alarm company in Florida and the
eleventh largest in the U.S. Forward-Looking Statements This press
release may contain statements, which are not historical facts and
are considered forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements contain projections of Devcon's future
results of operations, financial position or state other
forward-looking information. In some cases you can identify these
statements by forward-looking words such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may,"
"should," "will," and "would" or similar words. You should not rely
on forward-looking statements because Devcon's actual results may
differ materially from those indicated by these forward-looking
statements as a result of a number of important factors. These
factors include, but are not limited to: general economic and
business conditions; our business strategy for expanding our
presence in our industry; anticipated trends in our financial
condition and results of operation; the impact of competition and
technology change; existing and future regulations effecting our
business, and other risks and uncertainties discussed under the
heading "Item 1A - Risk Factors" in Devcon's Annual Report on Form
10-K for the period ended December 31, 2007 as filed with the
Securities and Exchange Commission, and other reports Devcon files
from time to time with the Securities and Exchange Commission.
Devcon does not intend to and undertakes no duty to update the
information contained in this press release. -- Financial Tables
Follow -- DEVCON INTERNATIONAL CORP. AND SUBSIDIARIES Condensed
Consolidated Statements of Operations (Amounts shown in thousands
except share and per share data) For the three months Ended June
30, 2008 2007 Revenue $13,901 $13,797 Cost of Sales 6,220 6,030
Gross profit 7,681 7,767 Operating expenses Selling 892 1,141
General & administrative 4,176 5,490 Depreciation and
amortization 4,171 4,387 Operating loss (1,558) (3,251) Other
income (expense) Interest expense (2,401) (2,586) Interest income 5
47 Change in fair value of derivative instrument 336 3,004 Loss
from continuing operations before income taxes (3,618) (2,786)
Income tax (benefit) provision - (373) Net loss from continuing
operations (3,618) (2,413) (Loss) from discontinued operations, net
of income tax (benefit) expense of zero for the three months ended
June 30, 2008 and 2007, respectively (365) (3,040) Net loss
$(3,983) $(5,453) Preferred dividends (1,074) (1,146) Accretion of
Preferred Stock (180) (216) Net loss available for common
stockholders $(5,237) $(6,815) Basic and diluted (loss) per share:
Continuing operations $(0.61) $(0.39) Discontinued operations
$(0.06) $(0.49) Net loss $(0.67) $(0.88) Net loss available for
common stockholders $(0.88) $(1.09) Weighted average number of
shares outstanding: Basic 5,949,278 6,227,746 Diluted 5,949,278
6,227,746 DEVCON INTERNATIONAL CORP. AND SUBSIDIARIES Condensed
Consolidated Statements of Operations (Amounts shown in thousands
except share and per share data) For the six months Ended June 30,
2008 2007 Revenue $27,617 $27,982 Cost of Sales 12,371 12,094 Gross
profit 15,246 15,888 Operating expenses Selling 2,127 2,482 General
& administrative 8,875 10,941 Depreciation and amortization
8,336 8,885 Operating loss (4,092) (6,420) Other income (expense)
Interest expense (4,963) (5,244) Interest income 16 86 Change in
fair value of derivative instrument 732 1,944 Loss from continuing
operations before income taxes (8,307) (9,634) Income tax (benefit)
provision 3 (987) Net loss from continuing operations (8,310)
(8,647) (Loss) from discontinued operations, net of income tax
(benefit) expense of zero and $(48) for the six months ended June
30, 2008 and 2007, respectively (1,627) (3,688) Net loss $(9,937)
$(12,335) Preferred dividends (2,122) (2,271) Accretion of
Preferred Stock (360) (421) Net loss available for common
stockholders $(12,419) $(15,027) Basic and diluted (loss) per
share: Continuing operations $(1.40) $(1.39) Discontinued
operations $(0.27) $(0.59) Net loss $(1.67) $(1.99) Net loss
available for common stockholders $(2.09) $(2.42) Weighted average
number of shares outstanding: Basic 5,949,278 6,213,885 Diluted
5,949,278 6,213,885 DEVCON INTERNATIONAL CORP. AND SUBSIDIARIES
Condensed Balance Sheet (Amounts in thousands) June 30, December
31, 2008 2007 Working capital $(40,854) $2,203 Total assets
$173,546 $179,785 Long term debt, excluding current portion $95,520
$94,440 Stockholder's equity $(5,815) $5,205 DATASOURCE: Devcon
International Corp. CONTACT: Marilynn Meek of Financial Relations
Board, +1-212-827-3773, , for Devcon International Corp. Web site:
http://www.devcon-security.com/
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