Print page
Download PDF
« Previous Release | Next Release »
All Business Lines Deliver Sales Gains
For the 2012 second quarter, the company reported net sales of
"We're pleased with the top-line and bottom-line progress we made year
over year," said
Second-quarter hearing health sales rose 17.3 percent over the prior
year, primarily driven by IntriCon's sales to hi HealthInnovations,
a
As a percentage of 2012 second-quarter sales, healthcare-related revenue (hearing health and medical combined) totaled 78.2 percent (39.2 percent hearing health and 39.0 percent medical), with professional audio communications at 21.8 percent. This compares to 2011 healthcare-related revenue of 79.3 percent (37.9 percent hearing health and 41.4 percent medical), with professional audio communications at 20.7 percent.
Gross profits in the 2012 second quarter rose to 23.2 percent from 22.7
percent in the prior-year second quarter. The gain chiefly stemmed from
the significant increase in volume, partially offset by increased
manufacturing infrastructure costs in
Six-Month Results
For the 2012 six-month period,
Hearing health sales rose 28.6 percent over the prior-year six months, with medical and professional audio up 9.9 percent and 8.4 percent, respectively. Gains were driven by the second-quarter factors detailed above.
As a percentage of 2012 six-month sales, healthcare-related revenue (hearing health and medical combined) totaled 80.6 percent (42.6 percent hearing health and 38.0 percent medical), with professional audio communications at 19.4 percent. This compares to 2011 healthcare-related revenue of 79.0 percent (38.7 percent hearing health and 40.3 percent medical), with professional audio communications at 21.0 percent.
Gross profits for the 2012 six months were 24.2 percent, up from 22.5
percent in the prior-year period, again primarily due to volume
increases, partially offset by increased manufacturing infrastructure in
hi HealthInnovations
During the 2012 first and second
quarters,
According to Gorder, "Right now, we've satisfied hi HealthInnovations' initial product ramp-up needs for 2012. In the near-term, we expect minimal new orders, however, we continue to be optimistic about the long-term prospects of this program and expect significant shipments in 2013. We continue to support hi HealthInnovations in building the infrastructure to provide high quality, affordable hearing healthcare to their customers. We believe this will position hi HealthInnovations to aggressively expand this program to their customer base."
Business Update
In hearing health, IntriCon's technically
advanced product line with innovative digital signal processing (DSP)
circuits, including its nanoDSP, Overtus™ DSP Amplifier, and complete
systems such as APT™ and Lumen™, continues to generate new
opportunities. While the current market conditions are soft,
Within its medical business, the company delivered its sixth consecutive quarter of sequential growth, driven by key medical accounts such as Medtronic. Said Gorder, "We continue to see a shift to small and lightweight, advanced body-worn medical devices. This allows companies to reduce their costs by moving the point of care from more expensive settings, like hospitals and clinics, to less expensive ones, such as the home or Internet. This capability also meets the growing demand to connect patients and caregivers in non-traditional ways."
On the professional audio front,
During the second quarter,
Looking Ahead
Concluded Gorder, "We are intently focused on
our goals for 2012: developing new core technologies while enhancing
existing ones; securing additional market-changing relationships with
leaders in the healthcare industry; expanding and driving efficiencies
at our international manufacturing facilities; and driving
profitability. Though we'll face challenges going forward, we're pleased
with the progress that we've made.
"Near term, we anticipate some sluggishness in hearing health, however, this will be partially offset by continued gains in medical and professional audio. We remain confident in our long-term prospects as key initiatives expand and gain further traction."
Conference Call Today
As previously announced, the company
will hold an investment community conference call today,
A replay of the conference call will be available one hour after the
call ends through
About
Headquartered in
Forward-Looking Statements
Statements made in this release
and in IntriCon's other public filings and releases that are not
historical facts or that include forward-looking terminology are
"forward-looking statements" within the meaning of the Securities
Exchange Act of 1934, as amended. These forward-looking statements may
be affected by known and unknown risks, uncertainties and other factors
that are beyond IntriCon's control, and may cause IntriCon's actual
results, performance or achievements to differ materially from the
results, performance and achievements expressed or implied in the
forward-looking statements. These risks, uncertainties and other factors
are detailed from time to time in the company's filings with the
|
|
||||||||||||||||||||
| Consolidated Condensed Statements of Operations (in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
|
|
|
|
June 30, | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||
| Sales, net | $ | 15,841 | $ | 13,943 | $ | 32,365 | $ | 27,711 | ||||||||||||
| Cost of sales | 12,163 | 10,784 | 24,530 | 21,472 | ||||||||||||||||
| Gross profit | 3,678 | 3,159 | 7,835 | 6,239 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Sales and marketing | 754 | 885 | 1,629 | 1,688 | ||||||||||||||||
| General and administrative | 1,613 | 1,492 | 3,239 | 2,896 | ||||||||||||||||
| Research and development | 1,134 | 1,025 | 2,271 | 2,274 | ||||||||||||||||
| Total operating expenses | 3,501 | 3,402 | 7,139 | 6,858 | ||||||||||||||||
| Operating income (loss) | 177 | (243 | ) | 696 | (619 | ) | ||||||||||||||
| Interest expense | (179 | ) | (145 | ) | (358 | ) | (287 | ) | ||||||||||||
| Equity in income (loss) of partnerships | (14 | ) | 120 | (38 | ) | 329 | ||||||||||||||
| Other expense | (9 | ) | (29 | ) | (48 | ) | (37 | ) | ||||||||||||
| Income (loss) before income taxes | (25 | ) | (297 | ) | 252 | (614 | ) | |||||||||||||
| Income tax expense (benefit) | 57 | (3 | ) | 91 | (30 | ) | ||||||||||||||
| Net income (loss) | $ | (82 | ) | $ | (294 | ) | $ | 161 | $ | (584 | ) | |||||||||
| Net income (loss) per share: | ||||||||||||||||||||
| Basic | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.03 | $ | (0.10 | ) | |||||||||
| Diluted | $ | (0.01 | ) | $ | (0.05 | ) | $ | 0.03 | $ | (0.10 | ) | |||||||||
| Average shares outstanding: | ||||||||||||||||||||
| Basic | 5,670 | 5,569 | 5,662 | 5,564 | ||||||||||||||||
| Diluted | 5,670 | 5,569 | 5,939 | 5,564 | ||||||||||||||||
|
|
||||||||||
| Consolidated Condensed Balance Sheets (in thousands, except per share data) | ||||||||||
|
|
||||||||||
| 2012 |
|
|||||||||
| (Unaudited) | 2011 | |||||||||
| Current assets: | ||||||||||
| Cash | $ | 238 | $ | 119 | ||||||
| Restricted cash | 537 | 540 | ||||||||
|
Accounts receivable, less allowance for doubtful accounts of |
7,365 | 8,545 | ||||||||
| Inventories | 12,104 | 11,720 | ||||||||
| Refundable income taxes | 23 | 82 | ||||||||
| Other current assets | 1,381 | 652 | ||||||||
| Total current assets | 21,648 | 21,658 | ||||||||
| Machinery and equipment | 40,182 | 39,170 | ||||||||
| Less: Accumulated depreciation | 33,092 | 32,164 | ||||||||
| Net machinery and equipment | 7,090 | 7,006 | ||||||||
| Goodwill | 9,709 | 9,709 | ||||||||
| Investment in partnerships | 1,282 | 1,283 | ||||||||
| Other assets, net | 972 | 1,074 | ||||||||
| Total assets | $ | 40,701 | $ | 40,730 | ||||||
| Current liabilities: | ||||||||||
| Checks written in excess of cash | $ | 649 | $ | 396 | ||||||
| Current maturities of long-term debt | 3,284 | 2,883 | ||||||||
| Accounts payable | 4,711 | 6,298 | ||||||||
| Accrued salaries, wages and commissions | 1,807 | 1,617 | ||||||||
| Deferred gain | 110 | 110 | ||||||||
| Partnership payable | 240 | 240 | ||||||||
| Other accrued liabilities | 2,586 | 1,907 | ||||||||
| Total current liabilities | 13,387 | 13,451 | ||||||||
| Long-term debt, less current maturities | 7,886 | 8,217 | ||||||||
| Other postretirement benefit obligations | 673 | 685 | ||||||||
| Accrued pension liabilities | 410 | 431 | ||||||||
| Deferred gain | 330 | 385 | ||||||||
| Other long-term liabilities | 120 | 115 | ||||||||
| Total liabilities | 22,806 | 23,284 | ||||||||
| Commitments and contingencies | ||||||||||
| Shareholders' equity: | ||||||||||
|
Common stock, |
5,674 |
5,646 |
||||||||
| Additional paid-in capital | 15,535 | 15,259 | ||||||||
| Accumulated deficit | (2,909 | ) | (3,069 | ) | ||||||
| Accumulated other comprehensive loss | (405 | ) | (390 | ) | ||||||
| Total shareholders' equity | 17,895 | 17,446 | ||||||||
| Total liabilities and shareholders' equity | $ | 40,701 | $ | 40,730 | ||||||
At
slongval@intricon.com
or
At
msullivan@padillaspeer.com
Source:
News Provided by Acquire Media