Market Overview

The LGL Group, Inc. Reports Q2 2018 Financial Results

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The LGL Group, Inc. (NYSE:LGL) (the "Company" or "LGL"),
announced its financial results for the three and six months ended
June 30, 2018.

Summary of Q2 2018 Financial Results:

  • Revenues of $6.2 million, up 5.1% compared to Q2 2017 of $5.9 million
  • Net income of $0.10 per share, compared to $0.01 for the prior year
    quarter
  • Order backlog improved 33.1% to $14.5 million at June 30, 2018 from
    $10.9 million at June 30, 2017
  • Adjusted EBITDA was $616,000, or $0.13 per share on a diluted basis,
    compared to $234,000, or $0.09 per share for Q2 2017

Commenting on the Company's Q2 2018 results, Executive Chairman and CEO,
Michael J. Ferrantino, Sr. stated, "I am pleased to report that both
revenues and backlog increased, and our book to bill ratio continued to
be very positive. We experienced growth of 5.7% in revenues over the
prior year quarter, while at the same time backlog increased over 33%,
exceeding $14 million at the end of the quarter. This strong performance
in sales and revenues, combined with our continued profitability,
validates our strategy of developing higher margin, market-driven,
highly engineered assemblies in the defense and aerospace markets."

Mr. Ferrantino continued, "We have demonstrated our commitment and are
continuing to work in pursuit of shareholder value. With our available
funds, as well as our much improved operations we continue to look, both
inside and outside our industry, where our management expertise will
facilitate rapid top and bottom-line growth."

In closing, Mr. Ferrantino added, "The Company is off to a great start
and is positioned to perform well in 2018. We are looking forward to
continuing to provide value to our dedicated employees, customers, and
shareholders, and would like to thank you all for your support."

About The LGL Group, Inc.

The LGL Group, Inc., through its two principal subsidiaries MtronPTI and
PTF, designs, manufactures and markets highly-engineered electronic
components used to control the frequency or timing of signals in
electronic circuits, and designs high performance frequency and time
reference standards that form the basis for timing and synchronization
in various applications.

Headquartered in Orlando, Florida, the Company has additional design and
manufacturing facilities in Yankton, South Dakota, Wakefield,
Massachusetts and Noida, India, with local sales offices in Hong Kong,
Sacramento, California and Austin, Texas.

For more information on the Company and its products and services,
contact James Tivy at The LGL Group, Inc., 2525 Shader Rd., Orlando,
Florida 32804, (407) 298-2000, or visit www.lglgroup.com
and www.mtronpti.com.

Caution Concerning Forward Looking Statements

This press release may contain forward-looking statements made in
reliance upon the safe harbor provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21 E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements include all
statements that do not relate solely to historical or current facts, and
can be identified by the use of words such as "may," "will," "expect,"
"project," "estimate," "anticipate," "plan," "believe," "potential,"
"should," "continue" or the negative versions of those words or other
comparable words. These forward-looking statements are not guarantees of
future actions or performance. These forward-looking statements are
based on information currently available to us and our current plans or
expectations, and are subject to a number of uncertainties and risks
that could significantly affect current plans, anticipated actions and
our future financial condition and results. Certain of these risks and
uncertainties are described in greater detail in our filings with the
Securities and Exchange Commission. We are under no obligation to (and
expressly disclaim any such obligation to) update or alter our
forward-looking statements, whether as a result of new information,
future events or otherwise.

 

THE LGL GROUP, INC.

Consolidated Statements of Operations
(Unaudited)
 

(Dollars in Thousands, Except Shares and Per Share Amounts)

         
For the Three Months Ended June 30, 2018 2017
REVENUES $ 6,157 $ 5,859
Costs and expenses:
Manufacturing cost of sales 3,594 3,992
Engineering, selling and administrative   2,074     1,823  
OPERATING INCOME 489 44
Total other income, net   61     1  
INCOME BEFORE INCOME TAXES 550 45
Income tax provision   (78 )   (25 )
NET INCOME $ 472   $ 20  
 
Weighted average number of shares used in basic EPS calculation   4,698,393     2,675,466  
Weighted average number of shares used in diluted EPS calculation   4,804,165     2,687,775  
BASIC AND DILUTED NET INCOME PER COMMON SHARE $ 0.10   $ 0.01  
 
For the Six Months Ended June 30,       2018     2017
REVENUES $ 12,102 $ 11,483
Costs and expenses:

Manufacturing cost of sales

7,310 7,550
Engineering, selling and administrative   4,145     3,781  
OPERATING INCOME 647 152
Total other income, net   97     7  
INCOME BEFORE INCOME TAXES 744 159
Income tax provision   (79 )   (28 )
NET INCOME $ 665   $ 131  
 
Weighted average number of shares used in basic EPS calculation   4,697,415     2,675,466  
Weighted average number of shares used in diluted EPS calculation   4,804,621     2,688,128  
BASIC AND DILUTED NET INCOME PER COMMON SHARE $ 0.14   $ 0.05  
 
 
THE LGL GROUP, INC.
Consolidated Balance Sheets
(Unaudited)
 

(Dollars in Thousands)

         
June 30, 2018 December 31, 2017
ASSETS
Cash and cash equivalents $ 1,565 $ 13,250
Marketable securities 15,664 3,803
Accounts receivable, net 3,880 3,393
Inventories, net 4,302 3,875
Prepaid expenses and other current assets   168   229
Total Current Assets 25,579 24,550
Property, plant, and equipment, net 2,170 2,179
Intangible assets, net 515 552
Deferred income taxes, net 155 173
Other assets, net   -   101
Total Assets $ 28,419 $ 27,555
LIABILITIES AND STOCKHOLDERS' EQUITY
Total Current Liabilities 2,819 2,627
Total Stockholders' Equity   25,600   24,928
Total Liabilities and Stockholders' Equity $ 28,419 $ 27,555
 

Reconciliations of GAAP to Non-GAAP Measures

To supplement our consolidated financial statements presented on a GAAP
(generally accepted accounting principles) basis, the Company uses
certain non-GAAP measures, including Adjusted EBITDA, which we define as
net income adjusted to exclude depreciation and amortization expense,
interest income (expense), provision (benefit) for income taxes,
stock-based compensation expense, investment income and other items we
believe are discrete events which have a significant impact on
comparable GAAP measures and could distort an evaluation of our normal
operating performance. These adjustments to our GAAP results are made
with the intent of providing both management and investors a more
complete understanding of the underlying operational results and trends
and our marketplace performance. The presentation of this additional
information is not meant to be considered in isolation or as a
substitute for net earnings or diluted earnings per share prepared in
accordance with generally accepted accounting principles in the United
States.

 

Reconciliation of GAAP Net Income Before
Income Taxes to Non-GAAP Adjusted EBITDA:

         
For the Three Months Ended June 30, 2018 2017
(000's, except shares and per share amounts)
Net income before income taxes $ 550 $ 45
Interest (income) expense 6 5
Depreciation and amortization 127 176
Non-cash stock compensation 6 8
Investment Income   (73 )  
Adjusted EBITDA $ 616   $ 234
 
Basic per share information:
Weighted average shares outstanding   4,698,393     2,675,466
Adjusted EBITDA per share $ 0.13   $ 0.09
 
Diluted per share information:
Weighted average shares outstanding   4,804,165     2,687,775
Adjusted EBITDA per share $ 0.13   $ 0.09
 
For the Six Months Ended June 30, 2018   2017
(000's, except shares and per share amounts)
Net income before income taxes $ 744 $ 159
Interest (income) expense (6 ) 11
Depreciation and amortization 249 363
Non-cash stock compensation 13 15
Investment income (104 )
Recovery of note receivable   (4 )  
Adjusted EBITDA $ 892   $ 548
 
Basic per share information:
Weighted average shares outstanding   4,697,415     2,675,466
Adjusted EBITDA per share $ 0.19   $ 0.20
 
Diluted per share information:
Weighted average shares outstanding   4,804,621     2,688,128
Adjusted EBITDA per share $ 0.19   $ 0.20

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