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Ultralife Corporation Reports First Quarter Results

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Ultralife (NASDAQ: ULBI) reported strong first-quarter results with sales of $41.9 million, a 31.4% increase year-over-year. Gross profit was $11.5 million, operating income reached $4.1 million, and GAAP EPS stood at $0.18. Adjusted EBITDA saw a significant gain to $5.2 million. The company emphasized gross margin improvement and growth in government/defense and medical markets. Revenue increase was driven by battery & Energy Products and Communications Systems sales growth. Ultralife remains optimistic about sustaining profitable growth, generating cash flow, and investing in new products and acquisitions.
Ultralife (NASDAQ: ULBI) ha riportato risultati molto positivi per il primo trimestre, con vendite di 41,9 milioni di dollari, un incremento del 31,4% su base annua. Il profitto lordo è stato di 11,5 milioni di dollari, il reddito operativo ha raggiunto i 4,1 milioni di dollari, e l'EPS GAAP si è attestato a 0,18 dollari. L'EBITDA rettificato ha visto un notevole aumento, arrivando a 5,2 milioni di dollari. L'azienda ha sottolineato il miglioramento del margine lordo e la crescita nei mercati governativi/difensivi e medici. L'aumento del fatturato è stato guidato dalla crescita delle vendite di prodotti per l'energia e batterie e sistemi di comunicazione. Ultralife rimane ottimista riguardo la capacità di mantenere una crescita proficua, generare flusso di cassa e investire in nuovi prodotti e acquisizioni.
Ultralife (NASDAQ: ULBI) reportó excelentes resultados para el primer trimestre con ventas de 41,9 millones de dólares, un aumento del 31,4% respecto al año anterior. La ganancia bruta fue de 11,5 millones de dólares, el ingreso operativo alcanzó los 4,1 millones de dólares, y el EPS GAAP fue de 0,18 dólares. El EBITDA ajustado logró una notable mejora hasta alcanzar los 5,2 millones de dólares. La compañía destacó la mejora en el margen bruto y el crecimiento en los mercados gubernamentales/de defensa y médicos. El incremento en los ingresos fue impulsado por el crecimiento en las ventas de productos de energía y baterías y sistemas de comunicaciones. Ultralife sigue optimista acerca de mantener un crecimiento rentable, generar flujo de caja e invertir en nuevos productos y adquisiciones.
울트라라이프(NASDAQ: ULBI)가 강력한 1분기 결과를 보고했습니다. 매출 4,190만 달러로 전년 대비 31.4% 증가했습니다. 매출총이익은 1,150만 달러, 운영 소득은 410만 달러에 달했으며, GAAP 주당순이익은 0.18달러였습니다. 조정 EBITDA는 520만 달러로 크게 증가했습니다. 회사는 매출총이익 개선과 정부/방어 및 의료 시장에서의 성장을 강조했습니다. 매출 증가는 배터리 및 에너지 제품과 통신 시스템 판매 증가에 의해 이끌렸습니다. 울트라라이프는 수익성 있는 성장을 지속하고, 현금 흐름을 생성하며, 새로운 제품 및 인수에 투자하는 데 대해 낙관적입니다.
Ultralife (NASDAQ: ULBI) a annoncé d'excellents résultats pour le premier trimestre avec des ventes de 41,9 millions de dollars, soit une augmentation de 31,4% sur un an. Le bénéfice brut a été de 11,5 millions de dollars, le résultat d'exploitation a atteint 4,1 millions de dollars et le BPA GAAP s'est élevé à 0,18 dollar. L'EBITDA ajusté a connu une hausse significative pour atteindre 5,2 millions de dollars. L'entreprise a mis en avant l'amélioration de la marge brute et la croissance dans les marchés gouvernementaux/défense et médical. L'augmentation des revenus a été entraînée par la croissance des ventes de produits d'énergie et de batteries ainsi que de systèmes de communication. Ultralife reste optimiste quant à la poursuite d'une croissance rentable, à la génération de flux de trésorerie et à l'investissement dans de nouveaux produits et acquisitions.
Ultralife (NASDAQ: ULBI) meldete starke Ergebnisse für das erste Quartal mit einem Umsatz von 41,9 Millionen Dollar, einer Steigerung von 31,4% im Vergleich zum Vorjahr. Der Bruttogewinn betrug 11,5 Millionen Dollar, das Betriebsergebnis erreichte 4,1 Millionen Dollar, und der GAAP EPS lag bei 0,18 Dollar. Das bereinigte EBITDA stieg deutlich auf 5,2 Millionen Dollar. Das Unternehmen betonte die Verbesserung der Bruttomarge und das Wachstum in den Regierungs-/Verteidigungs- und Medizinmärkten. Der Umsatzanstieg wurde durch Wachstum im Verkauf von Batterie- & Energieprodukten und Kommunikationssystemen getrieben. Ultralife bleibt optimistisch, profitables Wachstum fortzusetzen, Cashflow zu generieren und in neue Produkte und Übernahmen zu investieren.
Positive
  • Sales increased by 31.4% year-over-year to $41.9 million
  • Gross profit reached $11.5 million, representing 27.4% of revenue
  • Operating income was $4.1 million, a significant improvement from breakeven in the previous year
  • GAAP EPS stood at $0.18 compared to a loss of $0.02 in the previous year
  • Adjusted EBITDA saw a four-fold gain, reaching $5.2 million
  • Backlog at the end of the quarter was $97.4 million
  • Government/defense sales increased by 83.4%, commercial sales by 8.6%
  • Battery & Energy Products sales rose by 22.9% to $35.0 million
  • Communications Systems sales increased by 101.3% to $6.9 million
  • Gross margin for Battery & Energy Products improved to 25.7%, Communications Systems to 35.8%
  • Operating expenses remained stable at $7.4 million
  • Net income was $2.9 million, with a GAAP EPS of $0.18
  • Adjusted EPS reached $0.21, excluding deferred taxes
  • Adjusted EBITDA was $5.2 million, representing 12.5% of sales
Negative
  • None.

Insights

Ultralife Corporation's report showing a 31.4% year-over-year sales increase is indicative of robust top-line growth, especially in the medical market which surged by 54.7%. This, coupled with a substantial 83.4% uptick in government/defense sales, reflects both a successful market penetration and diversification of revenue streams.

From a profitability standpoint, the gross profit margin improvement from 23.3% to 27.4% suggests effective cost management and operational efficiency. Additionally, the operating margin jump to 9.7% from virtually break-even levels is a sign of successful leverage of fixed costs and operational streamlining. Operating expenses remaining flat while revenues grow is a testament to disciplined cost control measures. However, the sustainability of these margins will be important to observe in subsequent quarters.

For investors, the growth in adjusted EBITDA to $5.2 million from $1.2 million is noteworthy. It provides a cleaner view of operational performance by excluding non-operational items like stock-based compensation. The strong backlog of $97.4 million provides visibility into future revenue, which can be reassuring for stakeholders looking for signs of sustained growth.

Strategic moves by Ultralife in new product development and capital investments hint at an aggressive growth strategy. This is further supported by remarks on potential accretive acquisitions and paying down debt, suggesting a focus on both organic and inorganic growth vectors. The explicit mention of backlog—and its healthy status—suggests that the company is not just growing, but also has a buffer against potential market downturns or order delays.

The reference to a previous cybersecurity attack offers context to the impressive recovery in operational performance. It serves to underline the resilience of the operational framework and may help to mitigate investor concerns about operational risks.

For retail investors, the elucidation of plans for gross margin improvements and operational efficiencies could signal consistency in performance, an aspect that is often prized in investment decisions. Moreover, the emphasis on the medical sector's growth amid a global focus on healthcare resilience could align with broader market trends, potentially offering a favorable industry tailwind.

NEWARK, N.Y., April 25, 2024 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ: ULBI) reported operating results for the first quarter ended March 31, 2024 with the following highlights:

  • Sales of $41.9 million representing a 31.4% year-over-year increase, including 54.7% growth in medical market sales
  • Gross profit of $11.5 million, or 27.4% of revenue, compared to $7.4 million, or 23.3% of revenue for the 2023 first quarter
  • Operating income of $4.1 million versus breakeven for the 2023 first quarter
  • GAAP EPS of $0.18 compared to a loss of $0.02 for the 2023 first quarter
  • Adjusted EBITDA of $5.2 million, a four-fold gain compared to $1.2 million last year
  • Backlog of $97.4 million exiting the 2024 first quarter

“Ultralife’s strong first quarter results are a testament to the teamwork and success to date of our gross margin improvement initiatives and continued demand in our core products, particularly from our government/defense and medical customers,” said Mike Manna, President and Chief Executive Officer.   “With the current healthy backlog and new product commercialization, we are prepared to capture additional organic growth opportunities, while we continue to drive gross margin improvements and invest in further new product development.  We are increasingly optimistic that we are positioned to sustain profitable growth, generate incremental cash flow to pay down debt, and invest in strategic capital expenditures and accretive acquisitions.”

First Quarter 2024 Financial Results

Revenue was $41.9 million, an increase of $10.0 million, or 31.4%, as compared to revenue of $31.9 million for the first quarter of 2023. Overall, government/defense sales increased 83.4% and commercial sales increased 8.6% over the 2023 period. Battery & Energy Products sales increased 22.9% to $35.0 million compared to $28.5 million last year reflecting increases of 73.6% in government/defense sales and 8.6% in commercial sales, including a 54.7% increase in medical battery sales and a 2.3% in industrial sales, partially offset by a decrease of 13.9% in oil & gas market sales. Communications Systems sales increased by 101.3% to $6.9 million compared to $3.4 million for the same period last year, primarily attributable to shipments of EL8000 server cases to a large multinational information technology company, integrated systems of amplifiers and radio vehicle mounts to a major international defense contractor under an ongoing allied country government/defense modernization program, and power systems to a U.S.-based global prime. Our total backlog exiting the 2024 first quarter was $97.4 million.

Gross profit was $11.5 million, or 27.4% of revenue, compared to $7.4 million, or 23.3% of revenue, for the same quarter a year ago. Battery & Energy Products gross margin was 25.7%, compared to 22.9% last year, primarily due to higher cost absorption and more efficiencies resulting from a concerted effort to level-load production more evenly across the 2024 quarter, as well as improved price realization. Communications Systems gross margin was 35.8% compared to 26.8% last year, primarily due to higher factory volume and favorable sales product mix.

Operating expenses were $7.4 million, compared to $7.4 million for the 2023 first quarter. Operating expenses were 17.7% of revenue compared to 23.2% of revenue for the year-earlier period.

The combination of higher sales leveraged by improved gross margin and level operating expenses resulted in a $4.0 million increase in operating income to $4.1 million from breakeven last year. Operating margin increased to 9.7% compared to 0.1% last year. Operating results for the first quarter of 2023 were negatively impacted by the January 25, 2023 cybersecurity attack.

Net income was $2.9 million or $0.18 per diluted share on a GAAP basis, compared to a net loss of $0.3 million or $0.02 per diluted share for the first quarter of 2023. Adjusted EPS was $0.21 on a diluted basis for the first quarter of 2024, compared to a loss of $0.05 for the 2023 period. Adjusted EPS excludes the provision for deferred taxes which primarily represents non-cash charges for U.S. taxes which we expect will be fully offset by net operating loss carryforwards and other tax credits for the foreseeable future.

Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense, was $5.2 million for the first quarter of 2024, or 12.5% of sales, compared to $1.2 million, or 3.6% of sales, for the year-earlier period.

See the “Non-GAAP Financial Measures” section of this release for a reconciliation of adjusted EBITDA to net income attributable to Ultralife Corporation and adjusted EPS to EPS.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government/defense and commercial customers across the globe.

Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its first quarter earnings conference call today at 8:30 AM ET.

To ensure a fast and reliable connection to our investor conference call, we now require participants dialing in by phone to register using the following link prior to the call:   https://register.vevent.com/register/BI5d712724df6d4c65bb6496c4ce2d606f. This will eliminate the need to speak with an operator. Once registered, dial-in information will be provided along with a personal identification number. Should you register early and misplace your details, you can simply click back on this same link at any time to register and view this information again. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of our new products on a global basis, and disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, weather or other factors not under our control. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife’s financial results is included in Ultralife’s Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K.

    
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
  
ASSETS
    
 March 31,
2024
 December 31,
2023
Current Assets:   
Cash$10,099 $10,278
Trade Accounts Receivable, Net35,278 31,761
Inventories, Net43,821 42,215
Prepaid Expenses and Other Current Assets5,104 5,949
Total Current Assets94,302 90,203
    
Property, Plant and Equipment, Net20,670 21,117
Goodwill37,499 37,571
Other Intangible Assets, Net14,867 15,107
Deferred Income Taxes, Net9,873 10,567
Other Non-Current Assets3,340 3,711
Total Assets$180,551 $178,276
    
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities: 
Accounts Payable$13,315 $11,336
Current Portion of Long-Term Debt2,000 2,000
Accrued Compensation and Related Benefits2,013 3,115
Accrued Expenses and Other Current Liabilities6,048 7,279
Total Current Liabilities23,376 23,730
Long-Term Debt, Net23,140 23,624
Deferred Income Taxes, Net1,675 1,714
Other Non-Current Liabilities3,415 3,781
Total Liabilities51,606 52,849
    
Shareholders' Equity:   
Common Stock2,089 2,078
Capital in Excess of Par Value189,995 189,160
Accumulated Deficit(37,863) (40,754)
Accumulated Other Comprehensive Loss(3,892) (3,660)
Treasury Stock(21,492) (21,492)
Total Ultralife Equity128,837 125,332
Non-Controlling Interest108 95
Total Shareholders’ Equity128,945 125,427
    
Total Liabilities and Shareholders' Equity$180,551 $178,276
    


 
ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)

  
 Three-Month Period Ended
 March 31, March 31,
 2024 2023
Revenues:   
Battery & Energy Products$34,989 $28,470
Communications Systems6,938 3,446
Total Revenues41,927 31,916
    
Cost of Products Sold:   
Battery & Energy Products26,003 21,958
Communications Systems4,454 2,522
Total Cost of Products Sold30,457 24,480
    
Gross Profit11,470 7,436
    
Operating Expenses:   
Research and Development1,756 2,032
Selling, General and Administrative5,651 5,378
Total Operating Expenses7,407 7,410
    
Operating Income (Loss)4,063 26
    
Other Expense456 494
Income (Loss) Before Income Tax Provision3,607 (468)
    
Income Tax Provision (Benefit)703 (133)
    
Net Income (Loss)2,904 (335)
    
Net Income Attributable to Non-Controlling Interest(13) (11)
    
Net Income (Loss) Attributable to Ultralife Corporation$2,891 ($346)
    
Net Income (Loss) Per Share Attributable to Ultralife
Common Shareholders – Basic
$0.18 ($0.02)
    
Net Income (Loss) Per Share Attributable to Ultralife
Common Shareholders – Diluted
$0.18 ($0.02)
    
Weighted Average Shares Outstanding – Basic16,396 16,135
    
Weighted Average Shares Outstanding – Diluted16,518 16,135
    

Non-GAAP Financial Measures

Adjusted EBITDA

In evaluating our business, we consider and use adjusted EBITDA, a non-GAAP financial measure, as a supplemental measure of our operating performance in addition to GAAP financial measures. We define adjusted EBITDA as net income (loss) attributable to Ultralife Corporation before net interest expense, provision (benefit) for income taxes, depreciation and amortization, and stock-based compensation expense, plus/minus expense/income that we do not consider reflective of our ongoing continuing operations. We reconcile adjusted EBITDA to net income (loss) attributable to Ultralife Corporation, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on adjusted EBITDA as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of adjusted EBITDA to net income (loss) attributable to Ultralife Corporation.

 
ULTRALIFE CORPORATION AND SUBSIDIARIES
CALCULATION OF ADJUSTED EBITDA
(Dollars in Thousands)
(Unaudited)
  
 Three-Month Period Ended
 March 31,
2024
 March 31,
2023
    
Net Income (Loss) Attributable to Ultralife Corporation$2,891 ($346)
Adjustments:   
Interest Expense, Net520 424
Income Tax Provision (Benefit)703 (133)
Depreciation Expense740 762
Amortization of Intangible Assets228 209
Stock-Based Compensation Expense161 139
Non-Recurring – Cyber Insurance Deductible- 100
Adjusted EBITDA$5,243 $1,155
    

Adjusted Earnings Per Share

In evaluating our business, we consider and use Adjusted EPS, a non-GAAP financial measure, as a supplemental measure of our business performance in addition to GAAP financial measures. We define Adjusted EPS as net income (loss) attributable to Ultralife Corporation excluding the provision for deferred taxes divided by our weighted average shares outstanding on both a basic and diluted basis. We believe that this information is useful in providing period-to-period comparisons of our results by reflecting the portion of our tax provision that we expect will be offset by our U.S. net operating loss carryforwards and other tax credits for the foreseeable future. We reconcile Adjusted EPS to EPS, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on Adjusted EPS as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of Adjusted EPS to EPS and net income (loss) attributable to Ultralife Corporation.

 
ULTRALIFE CORPORATION AND SUBSIDIARIES
CALCULATION OF ADJUSTED EPS
(In Thousands Except Per Share Amounts)
(Unaudited)
            
 Three-Month Period Ended
 March 31, 2024 March 31, 2023
 Amount Per
Basic
Share
 Per
Diluted
Share
 Amount Per
Basic
Share
 Per
Diluted
Share
Net Income (Loss) Attributable to Ultralife Corporation$2,891 $.18 $.18 ($346) ($0.02) ($0.02)
Deferred Tax Provision (Benefit)650 .04 .03 (390) (.03) (.03)
Adjusted Net Income (Loss)$3,541 $.22 $.21 ($736) ($.05) ($.05)
            
Weighted Average Shares Outstanding  16,396 16,518   16,135 16,135
            


Company Contact: Investor Relations Contact:
Ultralife CorporationLHA
Philip A. FainJody Burfening
(315) 210-6110(212) 838-3777
pfain@ulbi.com jburfening@lhai.com 

FAQ

What were Ultralife 's first-quarter sales results for 2024?

Ultralife reported sales of $41.9 million for the first quarter of 2024, representing a 31.4% increase year-over-year.

How did Ultralife 's gross profit compare to the previous year in the first quarter of 2024?

Ultralife 's gross profit for the first quarter of 2024 was $11.5 million, or 27.4% of revenue, compared to $7.4 million, or 23.3% of revenue, for the same period last year.

What was Ultralife 's operating income for the first quarter of 2024?

Ultralife reported operating income of $4.1 million for the first quarter of 2024, a significant improvement from breakeven in the previous year.

What was Ultralife 's GAAP EPS for the first quarter of 2024?

Ultralife reported a GAAP EPS of $0.18 for the first quarter of 2024, compared to a loss of $0.02 for the same period last year.

What was Ultralife 's adjusted EBITDA for the first quarter of 2024?

Ultralife 's adjusted EBITDA for the first quarter of 2024 was $5.2 million, a four-fold gain compared to $1.2 million for the previous year.

Ultralife Corporation

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