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Henry Bros. Electronics, Inc. Reports First Quarter 2008 Results
May 15, 2008 (08:05 AM EDT)
FAIR LAWN, N.J., May 15 /PRNewswire-FirstCall/ -- Henry Bros. Electronics, Inc. , a turnkey provider of technology-based integrated electronic security solutions, today announced results for the first quarter ended March 31, 2008.
The Company reported revenue of $15.91 million for the first quarter of 2008, representing an increase of 46.3% over revenue of $10.87 million for the same period a year ago. All of the Company's integration regions contributed to this increase, except Virginia, as the Company worked off its backlog. Revenue from the specialty products segment decreased by $297,000 as several anticipated projects for the quarter did not materialize as expected.
The gross profit margin for the three months ended March 31, 2008 was 22.3% compared to 19.8% for the prior year period, as the Company's mix of projects in process became more heavily weighted with higher margin projects, with an improved utilization of direct labor. Despite these overall improvements, project overruns in the specialty products segment negatively impacted the quarter's gross profit margin by approximately 3% as the company provided for the costs to complete several projects. The Company anticipates these projects to be completed by August.
For the three months ended March 31, 2008, the Company reported an operating profit of $559,927, compared to an operating loss of $(1.11 million) for the same period of 2007. Net income for the quarter was $283,957, or $0.05 per diluted share, compared to a net loss of $(820,415), or $(0.14) per diluted share, for the same period in 2007.
Backlog as of March 31, 2008 was $22.4 million, a decrease of approximately $4.2 million at December 31, 2007.
Jim Henry, CEO of Henry Bros. Electronics, stated, "Prior year initiatives to improve margins through tighter estimating standards, process improvements and greater operational oversight began to bear fruit in the first quarter. Our backlog decrease is a trend that we have seen over the last couple years when first quarter revenue exceeds new orders booked as businesses seek to refine prior budgetary proposals and plan for the execution of new security projects."
Henry continued, "While our long-standing customers remain a key growth driver due to their continued reliance on our integrated security services and solutions, we are also recognizing strong project wins from new commercial enterprises and government agencies that have the power to significantly impact our results in the later half of the year. Our recently announced contract with L3 is a remarkable win for our company as it positions Henry Bros. to become one of the largest security integrators in the USA."
"As we expect similar projects to come into our pipeline of business, we remain in strong standing to continue growing our revenue base. In addition, our more streamlined infrastructure and cost estimating model puts us in a position to further expand our margins and drive profitability."
Given these strong process fundamentals and proposal funnel, we are reiterating our forecasted operating profit of 4% on $65 million of revenue for 2008.
About Henry Bros. Electronics, Inc.
Henry Bros. Electronics provides technology-based integrated electronic security systems, services and emergency preparedness consultation to commercial enterprises and government agencies. The Company has offices in Arizona, California, Colorado, Maryland, New Jersey, New York, Texas and Virginia.
For more information, visit http://www.hbe-inc.com
Safe Harbor Statement: Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. In particular, there can be no assurance that the Company will achieve revenues of $65 million or a 4% operating profit in 2008. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading of risk factors listed in the Company's filings with the U.S. Securities and Exchange Commission. Henry Bros. Electronics Inc. does not assume any obligation to update the forward- looking information.
Investor Contacts: Todd Fromer / Erika Kay Jim Henry, Chairman & KCSA Strategic Communications Chief Executive Officer 212-896-1215 / 212-896-1208 Henry Bros. Electronics, Inc. firstname.lastname@example.org / email@example.com 201-794-6500 firstname.lastname@example.org HENRY BROS. ELECTRONICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended March 31, 2008 2007 Revenue $15,906,046 $10,871,301 Cost of revenue 12,363,061 8,715,125 Gross profit 3,542,985 2,156,176 Operating expenses: Selling, general & administrative expenses 2,983,058 3,264,167 Operating profit (loss) 559,927 (1,107,991) Interest income 30,044 6,941 Other income (expense) 4,214 (259) Interest expense (76,733) (70,457) Income (loss) before tax expense 517,452 (1,171,766) Provision for (benefit from) income taxes 233,495 (351,351) Net income (loss) $283,957 $(820,415) BASIC EARNINGS (LOSS) PER COMMON SHARE: Basic (loss) earnings per common share $0.05 $(0.14) Weighted average common shares 5,776,064 5,749,964 DILUTED EARNINGS (LOSS) PER COMMON SHARE: Diluted (loss) earnings per common share $0.05 $(0.14) Weighted average diluted common shares 5,880,721 5,749,964
CONTACT: Todd Fromer, +1-212-896-1215, email@example.com, or Erika Kay,+1-212-896-1208, , both of KCSA Strategic Communications forHenry Bros. Electronics, Inc.; or Jim Henry, Chairman & Chief ExecutiveOfficer, Henry Bros. Electronics, Inc., +1-201-794-6500,
Web site: http://www.henrybroselectronics.com/ http://www.hbe-inc.com/