Ultralife Corporation Reports Fourth Quarter Results
Rhea-AI Summary
Ultralife (NASDAQ: ULBI) reported Q4 2024 results with sales of $43.9 million, slightly down from $44.5 million in Q4 2023. The quarter saw an 11.7% increase in Battery & Energy Products sales but a 55.1% decrease in Communications Systems sales.
Key Q4 metrics include gross profit of $10.6 million (24.2% margin), operating income of $1.5 million (including $1.1 million in Electrochem acquisition costs), and GAAP EPS of $0.01. The company completed the acquisition of Electrochem on October 31, 2024, contributing $6.1 million to revenue.
For full-year 2024, sales reached $164.5 million, a 3.7% increase year-over-year, with operating income of $10.0 million and GAAP EPS of $0.38. The company's backlog and high confidence orders stood at $102.2 million exiting 2024, up from $78.0 million in Q3.
Positive
- Backlog increased significantly to $102.2 million from $78.0 million in Q3 2024
- Battery & Energy Products sales grew 11.7% to $39.9 million
- Full-year revenue increased 3.7% to $164.5 million
- Government/defense sales increased 48.1% in Battery segment
Negative
- Q4 EPS declined to $0.01 from $0.17 year-over-year
- Communications Systems sales decreased 55.1% to $4.0 million
- Gross margin declined to 24.2% from 25.6% year-over-year
- Operating income decreased to $1.5 million from $3.6 million in Q4 2023
News Market Reaction
On the day this news was published, ULBI declined 6.13%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Acquisition of Electrochem Completed and Integration Has Commenced
NEWARK, N.Y., April 01, 2025 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ: ULBI) reported operating results for the fourth quarter and full year ended December 31, 2024 as follows:
Fourth Quarter:
- Sales of
$43.9 million compared to$44.5 million for the 2023 fourth quarter, including a11.7% increase in Battery & Energy Products sales and a55.1% decrease in Communications Systems sales - Gross profit of
$10.6 million , or24.2% of revenue, compared to$11.4 million , or25.6% of revenue, for the 2023 fourth quarter - Operating income of
$1.5 million , including one-time costs and GAAP adjustments of$1.1 million directly related to the acquisition of Electrochem Solutions, Inc. (“Electrochem”) on October 31, 2024, compared to$3.6 million for the 2023 fourth quarter - GAAP EPS of
$0.01 compared to$0.17 for the 2023 fourth quarter - Adjusted EBITDA of
$3.9 compared to$4.8 million for the 2023 fourth quarter - Backlog and high confidence orders of
$102.2 million exiting 2024 compared to$78.0 exiting the third quarter
Fiscal Year 2024:
- Sales of
$164.5 million represent a3.7% year-over-year increase; essentially flat with 2023 when excluding Electrochem - Operating income of
$10.0 million including one-time costs and GAAP adjustments of$1.4 million directly related to the acquisition of Electrochem on October 31, 2024, versus$9.5 million for 2023 - GAAP EPS of
$0.38 compared to$0.44 for 2023 which included approximately$0.08 for recognition of the ERC filed under the Coronavirus Aid, Relief and Economic Act - Adjusted EBITDA of
$16.5 million compared to$15.7 million for 2023
“For the fourth quarter the contribution of Electrochem compensated for delays in the timing of expected larger orders for our Communications Systems segment and customer requests to push orders into 2025 for our Battery & Energy Products segment. These fulfillment delays illustrate how fluctuations in order timing can impact our financial results on a short-term basis even as demand for our products remains strong. In addition, after acquiring Electrochem on October 31st, we began implementing our integration playbook commencing the necessary groundwork to realize the benefits of our investment,” said Mike Manna, President and Chief Executive Officer.
“We entered 2025 with a healthy backlog and a schedule of new products to launch representing a broadened opportunity set in high-growth markets that position us to more fully realize the operating leverage of our business model through scale, and a strengthened sales and marketing leadership team to expedite organic growth and further leverage our global brand and resources. We are also on track to complete the acquisition integration and realize resulting manufacturing cost efficiencies and U.S.-based vertical integration savings. As a result, we are confident in our ability to deliver profitable growth and incremental cash flow enabling us to reduce debt and support strategic capital expenditures,” concluded Mr. Manna.
Fourth Quarter 2024 Financial Results
Revenue was
Gross profit was
Operating expenses were
Operating income was
Net income attributable to Ultralife Corporation was
Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense and one-time acquisition costs and non-cash purchase accounting adjustments, was
See the “Non-GAAP Financial Measures” section of this release for a reconciliation of adjusted EPS to EPS and adjusted EBITDA to net income attributable to Ultralife Corporation.
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 fourth quarter earnings conference call on today at 8:30 AM ET.
To ensure a fast and reliable connection to our investor conference call, we require participants dialing in by phone to pre-register using this link prior to the call: https://register-conf.media-server.com/register/BI1a1f31c093654241b376ab0dfc2c088b. 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 | ||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||
| Current Assets: | ||||||||||||||
| Cash | $ | 6,854 | $ | 10,278 | ||||||||||
| Trade Accounts Receivable, Net | 29,370 | 31,761 | ||||||||||||
| Inventories, Net | 51,363 | 42,215 | ||||||||||||
| Prepaid Expenses and Other Current Assets | 9,573 | 5,949 | ||||||||||||
| Total Current Assets | 97,160 | 90,203 | ||||||||||||
| Property, Plant and Equipment, Net | 40,485 | 21,117 | ||||||||||||
| Goodwill | 45,006 | 37,571 | ||||||||||||
| Other Intangible Assets, Net | 24,557 | 15,107 | ||||||||||||
| Deferred Income Taxes, Net | 8,413 | 10,567 | ||||||||||||
| Other Non-Current Assets | 4,830 | 3,711 | ||||||||||||
| Total Assets | $ | 220,451 | $ | 178,276 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| Current Liabilities: | ||||||||||||||
| Accounts Payable | $ | 14,160 | $ | 11,336 | ||||||||||
| Current Portion of Long-Term Debt | 2,750 | 2,000 | ||||||||||||
| Accrued Compensation and Related Benefits | 2,911 | 3,115 | ||||||||||||
| Accrued Expenses and Other Current Liabilities | 9,470 | 7,279 | ||||||||||||
| Total Current Liabilities | 29,291 | 23,730 | ||||||||||||
| Long-Term Debt, Net | 51,502 | 23,624 | ||||||||||||
| Deferred Income Taxes | 1,443 | 1,714 | ||||||||||||
| Other Non-Current Liabilities | 4,028 | 3,781 | ||||||||||||
| Total Liabilities | 86,264 | 52,849 | ||||||||||||
| Shareholders' Equity: | ||||||||||||||
| Common Stock | 2,107 | 2,078 | ||||||||||||
| Capital in Excess of Par Value | 191,828 | 189,160 | ||||||||||||
| Accumulated Deficit | (34,442 | ) | (40,754 | ) | ||||||||||
| Accumulated Other Comprehensive Loss | (4,006 | ) | (3,660 | ) | ||||||||||
| Treasury Stock | (21,492 | ) | (21,492 | ) | ||||||||||
| Total Ultralife Corporation Equity | 133,995 | 125,332 | ||||||||||||
| Non-Controlling Interest | 192 | 95 | ||||||||||||
| Total Shareholders’ Equity | 134,187 | 125,427 | ||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 220,451 | $ | 178,276 | ||||||||||
| ULTRALIFE CORPORATION AND SUBSIDIARIES | |||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
| (In Thousands Except Per Share Amounts) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three-Month Period Ended | Year Ended | ||||||||||||
| December 31, | December 31, | December 31, | December 31, | ||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| Revenues: | |||||||||||||
| Battery & Energy Products | $ | 39,880 | $ | 35,703 | $ | 144,081 | $ | 129,953 | |||||
| Communications Systems | 3,972 | 8,845 | 20,375 | 28,691 | |||||||||
| Total Revenues | 43,852 | 44,548 | 164,456 | 158,644 | |||||||||
| Cost of Products Sold: | |||||||||||||
| Battery & Energy Products | 30,549 | 26,711 | 107,764 | 99,178 | |||||||||
| Communications Systems | 2,704 | 6,435 | 14,378 | 20,266 | |||||||||
| Total Cost of Products Sold | 33,253 | 33,146 | 122,142 | 119,444 | |||||||||
| Gross Profit | 10,599 | 11,402 | 42,314 | 39,200 | |||||||||
| Operating Expenses: | |||||||||||||
| Research and Development | 2,415 | 1,852 | 8,268 | 7,531 | |||||||||
| Selling, General and Administrative | 6,710 | 5,901 | 24,081 | 22,194 | |||||||||
| Total Operating Expenses | 9,125 | 7,753 | 32,349 | 29,725 | |||||||||
| Operating Income | 1,474 | 3,649 | 9,965 | 9,475 | |||||||||
| Other Expense | 979 | 536 | 1,664 | 358 | |||||||||
| Income Before Income Taxes | 495 | 3,113 | 8,301 | 9,117 | |||||||||
| Income Tax Provision | 262 | 263 | 1,892 | 1,951 | |||||||||
| Net Income | 233 | 2,850 | 6,409 | 7,166 | |||||||||
| Net Income (Loss) Attributable to Non-Controlling Interest | 39 | (23 | ) | 97 | (31 | ) | |||||||
| Net Income Attributable to Ultralife Corporation | $ | 194 | $ | 2,873 | $ | 6,312 | $ | 7,197 | |||||
| Net Income Per Share Attributable to Ultralife Common Shareholders – Basic | $ | .01 | $ | .18 | $ | .38 | $ | .44 | |||||
| Net Income Per Share Attributable to Ultralife Common Shareholders – Diluted | $ | .01 | $ | .17 | $ | .38 | $ | .44 | |||||
| Weighted Average Shares Outstanding – Basic | 16,629 | 16,338 | 16,555 | 16,214 | |||||||||
| Weighted Average Shares Outstanding – Diluted | 16,762 | 16,479 | 16,767 | 16,226 | |||||||||
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 U.S. Generally Accepted Accounting Principles (“GAAP”) financial measures. We define adjusted EBITDA as net income attributable to Ultralife Corporation before net interest expense, provision 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 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 attributable to Ultralife Corporation.
| ULTRALIFE CORPORATION AND SUBSIDIARIES | |||||||||||
| CALCULATION OF ADJUSTED EBITDA | |||||||||||
| (Dollars in Thousands) | |||||||||||
| (Unaudited) | |||||||||||
| Three-Month Period Ended | Year Ended | ||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2024 | December 31, 2023 | ||||||||
| Net Income Attributable to Ultralife Corporation | $ | 194 | $ | 2,873 | $ | 6,312 | $ | 7,197 | |||
| Adjustments: | |||||||||||
| Interest Expense, Net | 829 | 566 | 1,940 | 2,016 | |||||||
| Income Tax Provision | 262 | 263 | 1,892 | 1,951 | |||||||
| Depreciation Expense | 831 | 740 | 3,125 | 3,022 | |||||||
| Amortization Expense | 348 | 226 | 1,032 | 889 | |||||||
| Stock-Based Compensation Expense | 208 | 104 | 698 | 528 | |||||||
| Cyber-Insurance Policy Deductible | - | - | - | 100 | |||||||
| Non-Recurring Acquisition Costs | 1,111 | - | 1,361 | - | |||||||
| Non-Cash Purchase Accounting Adjustment | 120 | - | 120 | - | |||||||
| Adjusted EBITDA | $ | 3,903 | $ | 4,772 | $ | 16,480 | $ | 15,703 | |||
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. We define adjusted EPS as net income attributable to Ultralife Corporation excluding the provision (benefit) for deferred income 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 predominantly 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 attributable to Ultralife Corporation.
| ULTRALIFE CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
| CALCULATION OF ADJUSTED EPS | ||||||||||||||||||
| (In Thousands Except Per Share Amounts) | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three-Month Period Ended | ||||||||||||||||||
| December 31, 2024 | December 31, 2023 | |||||||||||||||||
| Amount | Per Basic Share | Per Diluted Share | Amount | Per Basic Share | Per Diluted Share | |||||||||||||
| Net Income Attributable to Ultralife Corporation | $ | 194 | $ | .01 | $ | .01 | $ | 2,873 | $ | .18 | $ | .17 | ||||||
| Deferred Tax Provision (Benefit) | (63 | ) | - | - | 56 | - | .01 | |||||||||||
| Adjusted Net Income | $ | 131 | $ | .01 | $ | .01 | $ | 2,929 | $ | .18 | $ | .18 | ||||||
| Weighted Average Shares Outstanding | 16,629 | 16,762 | 16,338 | 16,479 | ||||||||||||||
| Year Ended | |||||||||||||||||
| December 31, 2024 | December 31, 2023 | ||||||||||||||||
| Amount | Per Basic Share | Per Diluted Share | Amount | Per Basic Share | Per Diluted Share | ||||||||||||
| Net Income Attributable to Ultralife Corporation | $ | 6,312 | $ | .38 | $ | .38 | $ | 7,197 | $ | .44 | $ | .44 | |||||
| Deferred Tax Provision | 1,232 | .08 | .07 | 1,301 | .08 | .08 | |||||||||||
| Adjusted Net Income | $ | 7,544 | $ | .46 | $ | .45 | $ | 8,498 | $ | .52 | $ | .52 | |||||
| Weighted Average Shares Outstanding | 16,555 | 16,767 | 16,214 | 16,226 | |||||||||||||
| Company Contact: | Investor Relations Contact: | |
| Ultralife Corporation | Alliance Advisors IR | |
| Philip A. Fain | Jody Burfening/Alex Villalta | |
| (315) 210-6110 | (212) 838-3777 | |
| pfain@ulbi.com | avillalta@allianceadvisors.com |
FAQ
What were Ultralife 's (ULBI) Q4 2024 earnings per share?
How much revenue did ULBI's Battery & Energy Products segment generate in Q4 2024?
What is ULBI's current backlog value after Q4 2024?
How did the Electrochem acquisition impact ULBI's Q4 2024 results?
