Ultralife Corporation (NASDAQ:ULBI) Q4 2024 Earnings Conference Call April 1, 2025 8:30 AM ET Company Participants Alex Villalta - IR Mike Manna - President and CEO Phil Fain - CFO Conference Call Participants Josh Sullivan - The Benchmark Company Operator Good day, and thank you for standing by. Welcome to the Ultralife Corporation Fourth Quarter 2024 Results. At this time, all participants are in a listen-only mode. After the speakers' presentation, there'll be a question-and-answer session. [Operator Ins ...

Revenue Performance - Revenues for the Battery & Energy Products segment for the year ended December 31, 2024, were $144.1 million, with a segment contribution of $19.0 million, compared to revenues of $130.0 million and a segment contribution of $14.3 million for the year ended December 31, 2023[24]. - Revenues for the Communications Systems segment for the year ended December 31, 2024, were $20.4 million, with a segment contribution of $1.2 million, compared to revenues of $28.7 million and a segment contribution of $4.0 million for the year ended December 31, 2023[27]. - Consolidated revenues increased by $5,812 or 3.7% to $164,456 for the year ended December 31, 2024, compared to $158,644 for 2023, with organic revenue growth of 6.2% in the Battery & Energy Products segment[193]. - The Battery & Energy Products segment experienced a revenue increase of $12,888 or 44.3% from $29,111 in 2023 to $41,999 in 2024, while the Communications Systems segment saw a decline of $8,316 or 29.0%[193]. - Battery & Energy Products revenues increased by $14,128, or 10.9%, for the year ended December 31, 2024, while Communications Systems revenues decreased by $8,316, or 29.0%[204][205]. Operating Expenses and Profitability - Corporate operating expenses, including costs incurred in connection with business acquisitions, were $10.2 million for the year ended December 31, 2024, compared to $8.8 million for the year ended December 31, 2023[29]. - Operating expenses increased by $2,624 or 8.8% to $32,349 during the year ended December 31, 2024, primarily due to one-time costs related to the acquisition of Electrochem[195]. - Gross margin improved to 25.7% for the year ended December 31, 2024, up from 24.7% in 2023, attributed to better alignment of customer price increases with cost inflation[194]. - Net income attributable to Ultralife Corporation for the year ended December 31, 2024 was $6,312, or $0.38 per share, a decrease from $7,197, or $0.44 per share for 2023, representing a decline of 12.2%[198]. - Adjusted EBITDA for the year ended December 31, 2024 was $16,480, compared to $15,703 for the prior year, reflecting an increase of 4.9%[199]. Research and Development - Research and development expenditures rose to $9,549 in 2024 from $8,587 in 2023, with a year-over-year increase in customer-sponsored R&D from $1,056 to $1,281[85]. - Future research and development expenditures are expected to increase by 10% or more over 2024 levels, driven by initiatives in battery and power solutions and communications systems[86]. - Research and development costs increased to $8,268 in 2024, up by $737, or 9.8%, from $7,531 in 2023, reflecting additional investments in new product development[212]. Acquisitions and Growth Opportunities - The acquisition of Electrochem Solutions, Inc. on October 31, 2024, is expected to create opportunities for gross margin expansion and revenue growth through cross-selling platforms[39]. - The company continues to seek opportunities for growth through the design, development, and sale of new products, expansion of the sales force, and potential acquisitions[17]. - The company acquired Electrochem Solutions, Inc. on October 31, 2024, which is expected to enhance revenue growth through cross-selling opportunities and operational efficiencies[191]. Inventory and Backlog - The backlog and high confidence orders for Battery & Energy Products were approximately $95,000 million as of December 31, 2024, indicating strong demand[67]. - The backlog and high confidence orders at December 31, 2024 were $102,156, a decrease of $1,379, or 1.3% from $103,535 at December 31, 2023[206]. - The total carrying value of Battery & Energy Products inventory increased by 27% year-over-year, amounting to $44,614 in 2024 compared to $35,221 in 2023, primarily due to the acquisition of Electrochem and increased materials for government and defense sectors[81]. - The total carrying value of Communications Systems inventory decreased by 4% year-over-year, totaling $6,749 in 2024 compared to $6,994 in 2023, due to fulfillment of large purchase orders[84]. Market Dynamics and Customer Base - In 2024, sales to U.S. customers were $97,040 million, while sales to foreign customers were $67,416 million, showing an increase from 2023[62]. - Sales to non-U.S. customers accounted for 41% of total revenues in 2024, down from 49% in 2023, indicating a shift in market dynamics[151]. - The company has a major customer that accounted for 23% of total revenues in 2024, highlighting reliance on key contracts[62]. - Sales to U.S. and foreign militaries accounted for $62,374 (38%) of revenues in 2024 and $57,802 (36%) in 2023[119]. - Approximately $54,077 (33%) of net revenue in 2024 was from U.S. Government customers, compared to $43,476 (27%) in 2023[120]. Cybersecurity and Compliance - The company has implemented security measures to mitigate risks of cyberattacks and breaches, including maintaining a cybersecurity insurance policy[129]. - The company engages leading cybersecurity firms for security assessments and audits to enhance its cybersecurity posture[170]. - The Board of Directors oversees the company's cybersecurity risk and receives updates on incidents at least quarterly[172]. - The company experienced production and shipping downtime for several weeks due to a cybersecurity incident, resulting in lost sales orders[131]. - The company is required to comply with the EU RoHS Directive, which restricts the use of certain hazardous substances in electrical and electronic equipment, and is currently compliant with associated regulations[159]. Financial Position and Risks - The company has a $55 million senior secured term loan and a $30 million revolving credit facility, with $2.75 million due in 2025[142][143]. - As of December 31, 2024, the company had $55 million outstanding on the term loan facility and no balance on the revolving credit facility[143]. - The cash on hand as of December 31, 2024 was $6,854, down from $10,278 as of December 31, 2023, indicating a decrease in liquidity[200]. - The company is highly dependent on key personnel, and the loss of such employees could materially affect its business and financial condition[134]. - The company faces unique risks in its operations in China, including political changes and trade restrictions, which could adversely impact its financial results[135].

Revenue was $43.9 million, including $6.1 million relating to our acquisition of Electrochem, compared to revenue of $44.5 million for the fourth quarter of 2023. Battery & Energy Products sales increased 11.7% to $39.9 million compared to $35.7 million last year reflecting the inclusion of Electrochem. Organic sales for this segment declined 5.3% as a 48.1% increase in government/defenses sales and a 1.6% increase in oil & gas market sales were offset by a 47.2% decrease in medical battery sales and a 4.4% ...

NEWARK, N.Y., March 27, 2025 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) will report its fourth quarter results for the period ending December 31, 2024 before the market opens on Tuesday, April 1, 2025. Ultralife's Management will also host an investor conference call and simultaneous webcast at 8:30 AM ET on April 1, 2025.   Please see the call-in procedures which follow below. NOTE TO THOSE PLANNING TO PARTICIPATE BY PHONE: To ensure a fast and reliable connection to our investor conference ca ...

Core Points - Ultralife Corporation will report its fourth quarter results for the period ending December 31, 2024, before the market opens on April 1, 2025 [1] - An investor conference call and simultaneous webcast will be hosted by Ultralife's Management at 8:30 AM ET on April 1, 2025 [1] Company Overview - Ultralife Corporation provides products and services ranging from power solutions to communications and electronics systems, serving government, defense, and commercial customers globally [4] - The company is headquartered in Newark, New York, and operates in North America, Europe, and Asia, with business segments including Battery & Energy Products and Communications Systems [5]

NEWARK, N.Y., March 07, 2025 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ: ULBI), today announced that it has filed a Form 12b-25, Notification of Late Filing, with the Securities and Exchange Commission in connection with its Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The extension is necessary to allow for the completion of the accounting close and financial results audit of Electrochem Solutions, Inc., which the Company acquired on October 31, 2024. The Company expects t ...

Core Points - Ultralife Corporation will report its fourth quarter results for the period ending December 31, 2024, on March 11, 2025, before market opens, which is later than its usual reporting schedule due to the acquisition of Electrochem Solutions, Inc. [1] - An investor conference call and webcast will be held on March 11, 2025, at 8:30 AM ET [2] - Participants must pre-register for the conference call to ensure a reliable connection [3] - A live webcast will be available on the company's website, with a replay accessible shortly after the call [4] Company Overview - Ultralife Corporation provides products and services in power solutions, communications, and electronics systems, serving government, defense, and commercial customers globally [5] - The company is headquartered in Newark, New York, and operates in North America, Europe, and Asia, with business segments including Battery & Energy Products and Communications Systems [6]

Core Insights - Ultralife Corporation has appointed Jeffrey Luke as Chief Marketing Officer and James Pope as Senior Vice President - Sales & Business Development for Battery & Energy Products, effective January 6, 2025 [1][2][3] - The appointments are aimed at strengthening marketing and sales activities to support the company's long-term growth strategy and to commercialize transformational products in 2025 [3] Summary by Sections Leadership Appointments - Jeffrey Luke will be responsible for reframing corporate and brand strategies, ensuring alignment and accountability across the global organization [2] - James Pope will focus on expanding market reach and aligning global sales and business development efforts to maximize revenue and build strategic partnerships [3] Experience and Background - Jeffrey Luke brings over 20 years of B2B marketing experience across various sectors including genomics, agriculture, and energy [2] - James Pope has over 37 years of experience in the battery and power industry, covering all major segments including cell and pack manufacturing [3] Strategic Goals - The company aims to enhance its new product development pipeline and foster durable customer relationships to capitalize on growth opportunities [3] - The leadership changes are seen as critical for executing the company's ambitious growth goals as it enters 2025 [3] Company Overview - Ultralife Corporation provides products and services in power solutions, communications, and electronics systems, serving government, defense, and commercial customers globally [4] - The company operates in North America, Europe, and Asia, with business segments including Battery & Energy Products and Communications Systems [5]

NEWARK, N.Y., Dec. 04, 2024 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI), today announced it will be presenting at The Benchmark Company’s 13th Annual Discovery One-on-One Investor Conference to be held Wednesday, December 11th, 2024 at the New York Athletic Club in New York City. The conference offers emerging growth and dynamic publicly traded companies access to institutional and individual investors in a unique one-on-one format during which Ultralife will be participating in one-on-one meeti ...

Revenue Performance - Consolidated revenues for Q3 2024 were $35,694, a decrease of $3,794 or 9.6% from $39,488 in Q3 2023, with government/defense sales down 14.1% and commercial sales down 6.8%[107]. - Consolidated revenues for the nine-month period ended September 30, 2024, were $120,604, an increase of $6,508, or 5.7%, compared to $114,096 for the same period in 2023[128]. - Battery & Energy Products revenues increased by $9,951, or 10.6%, from $94,250 in the first nine months of 2023 to $104,201 in 2024, driven by a 42.8% increase in government/defense sales[129]. - Communications Systems revenues decreased by $3,443, or 17.3%, from $19,846 in the first nine months of 2023 to $16,403 in 2024, primarily due to order timing[130]. Profitability Metrics - Gross profit for Q3 2024 was $8,682, or 24.3% of revenue, compared to $9,774, or 24.8% of revenue in Q3 2023, reflecting a decline due to lower factory volume and product mix[108]. - Operating income for Q3 2024 was $511, or 1.4% of revenues, down from $2,135 or 5.4% of revenues in Q3 2023, attributed to revenue decline and increased expenses[110]. - Net income attributable to Ultralife Corporation was $258, or $0.02 per share, compared to $1,330, or $0.08 per share in Q3 2023[111]. - Adjusted EBITDA for Q3 2024 was $1,919, or 5.4% of revenues, down from $3,480, or 8.8% of revenues in Q3 2023[112]. - Gross margin improved from 24.4% in the first nine months of 2023 to 26.3% in 2024, reflecting higher factory volume and improved price realization[131]. - Net income attributable to Ultralife for the nine-month period ended September 30, 2024, was $6,118, or $0.37 per share, compared to $4,324, or $0.27 per share in 2023, with adjusted EPS increasing from $0.34 to $0.44[138]. Operating Expenses - Operating expenses rose to $8,171, an increase of $532 or 7.0% from $7,639 in Q3 2023, primarily due to investments in new product development and legal fees related to the acquisition of Electrochem Solutions, Inc.[109][121]. - Operating expenses for the nine-month period ended September 30, 2024, were $23,224, an increase of $1,252, or 5.7%, from $21,972 in 2023, attributed to higher sales commissions and investments in new product development[134]. - Operating expenses represented 22.9% of revenue in Q3 2024, compared to 19.3% in Q3 2023, indicating increased costs relative to revenue[121]. Research and Development - Research and development costs increased by $232 or 12.4% to $2,101 in Q3 2024, reflecting aggressive pursuit of government/defense programs and commercial opportunities[121]. - Research and development costs increased by $175, or 3.1%, to $5,854 for the nine-month period ended September 30, 2024, reflecting higher investments in new product development[135]. Cash Flow and Financing - Cash generated from operations for the nine months ended September 30, 2024, was $13,590, a significant improvement from cash used in operations of $503 in the same period of 2023[151]. - As of September 30, 2024, total cash was $6,774, down from $10,278 at December 31, 2023, primarily due to a $17,712 reduction in outstanding debt[150]. - Cash used in investing activities for the nine months ended September 30, 2024, was $1,326, mainly for capital expenditures related to new product manufacturing[152]. - The company had $3,368 in outstanding borrowings on the Revolving Credit Facility and $4,667 on the Term Loan Facility as of September 30, 2024[156]. - Interest and financing expense decreased by $339, or 23.4%, from $1,450 in the first nine months of 2023 to $1,111 in 2024, due to reduced debt levels[136]. Tax and Other Considerations - The effective tax rate decreased to 20.9% for the nine-month period in 2024 from 28.1% in 2023, primarily due to the geographic mix of operating results[137]. - Non-recurring acquisition costs for the three months ended September 30, 2024, amounted to $250[146]. - The company filed a new shelf registration statement on March 29, 2024, to replace the previous one, registering securities in an aggregate amount of $100,000,000[155]. Future Outlook - The company expects positive operating cash flow and sufficient availability under its Revolving Credit Facility to meet general funding requirements in the foreseeable future[154].