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Ultralife(ULBI) - 2022 Q2 - Earnings Call Transcript
2022-07-30 11:50
Ultralife Corporation. (NASDAQ:ULBI) Q2 2022 Earnings Conference Call July 28, 2022 8:30 AM ET Company Participants Jody Burfening - Investor Relations Michael Popielec - President and Chief Executive Officer Philip Fain - Chief Financial Officer Conference Call Participants Operator Good day, and welcome to this Ultralife Corporation Second Quarter 2022 Earnings Release Conference Call. At this time, for opening remarks and introductions, I would like to turn the call over to Miss. Jody Burfening. Please g ...
Ultralife(ULBI) - 2022 Q2 - Quarterly Report
2022-07-28 11:12
(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission file number: 0-20852 ULTRALIFE CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or ot ...
Ultralife(ULBI) - 2022 Q1 - Earnings Call Transcript
2022-04-28 17:52
Ultralife Corporation (NASDAQ:ULBI) Q1 2022 Earnings Conference Call April 28, 2022 8:30 AM ET Company Participants Jody Burfening - Investor Relations Mike Popielec - President and Chief Executive Officer Phil Fain - Chief Financial Officer Conference Call Participants Josh Sullivan - The Benchmark Company Operator Good day, and welcome to this Ultralife Corporation First Quarter 2022 Earnings Release Conference Call. At this time, for opening remarks and introductions, I'd like to turn the call over to Ms ...
Ultralife(ULBI) - 2022 Q1 - Quarterly Report
2022-04-28 11:03
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 0-20852 ULTRALIFE CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or o ...
Ultralife(ULBI) - 2021 Q4 - Annual Report
2022-03-08 22:22
Part I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Ultralife Corporation designs and manufactures power and communications systems for government, defense, and commercial sectors globally - The company operates through two segments: **Battery & Energy Products** and **Communications Systems**, with performance reported at the gross profit level for each segment and operating expenses as Corporate charges[20](index=20&type=chunk) - On December 13, 2021, the company acquired **Excell Battery Group** to diversify commercial revenue and expand into new industrial markets like downhole drilling and medical devices[38](index=38&type=chunk) [Products, Services and Technology](index=9&type=section&id=Products%2C%20Services%20and%20Technology) The company's product portfolio includes lithium-based non-rechargeable and rechargeable batteries, charging systems, and military-grade RF amplifiers and integrated communication equipment - Battery & Energy Products include non-rechargeable lithium batteries (Li-MnO2, Li-CFx/MnO2, Li-SOCl2) and rechargeable Lithium-ion and Nickel Metal Hydride (NiMH) batteries and charging systems[21](index=21&type=chunk)[22](index=22&type=chunk) - Communications Systems products, sold under McDowell Research and AMTI brands, include RF amplifiers, power supplies, vehicle amplifier-adaptors (VAA), and integrated systems for military applications[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk) [Sales and Marketing](index=11&type=section&id=Sales%20and%20Marketing) Ultralife employs a multi-channel sales strategy, with significant revenue from government contracts and a major defense contractor, leading to increased order backlog - A single major customer, **L3Harris Technologies**, accounted for **20% of total revenues in 2021** and **17% in 2020**[61](index=61&type=chunk) Sales by Region (FY 2020-2021) | Region | 2021 Sales (in thousands) | 2020 Sales (in thousands) | | :--- | :--- | :--- | | U.S. Customers | $48,819 | $62,255 | | Foreign Customers | $49,448 | $45,457 | Order Backlog by Segment (as of Dec 31) | Segment | 2021 Backlog (in thousands) | 2020 Backlog (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Battery & Energy Products | $55,300 | $34,600 | +60% | | Communications Systems | $8,000 | $4,700 | +70% | [Manufacturing and Raw Materials](index=13&type=section&id=Manufacturing%20and%20Raw%20Materials) The company operates ISO-certified manufacturing facilities globally, facing supply chain risks from single-source suppliers, which impacted 2021 shipments and increased inventory - The company has **ISO 9001 and/or ISO 13485 certified manufacturing facilities** across North America, Europe, and Asia[78](index=78&type=chunk)[79](index=79&type=chunk) - Reliance on single or limited sources for certain raw materials led to **shipment delays in 2021**[82](index=82&type=chunk) Inventory Levels by Segment (as of Dec 31) | Segment | 2021 Inventory (in thousands) | 2020 Inventory (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Battery & Energy Products | $25,677 | $20,714 | +24% | | Communications Systems | $7,512 | $7,479 | +0.4% | [Research and Development](index=16&type=section&id=Research%20and%20Development) Ultralife significantly invests in R&D, with expenditures totaling **$8.0 million in 2021**, and anticipates future increases to support new product initiatives R&D Expenditures (FY 2020-2021) | Category | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Total R&D Expense | $8,042 | $7,316 | | Customer Sponsored R&D | $1,216 | $1,369 | - Future R&D expenditures are expected to **increase by 10% or more** over 2021 levels, driven by new battery and power solution development and Communications Systems initiatives[90](index=90&type=chunk) [Item 1A. Risk Factors](index=19&type=section&id=Item%201A.%20Risk%20Factors) The company faces multiple risks including COVID-19 impacts, customer concentration, military spending dependency, China operations, and supply chain disruptions - The COVID-19 pandemic negatively impacted 2021 operating results, with an estimated **$11.0 million reduction in sales** and **$4.5 million in operating profit** due to supply chain disruptions[117](index=117&type=chunk) - A significant portion of revenue is derived from key customers, with **L3Harris Technologies comprising 20% of total revenues in 2021**[119](index=119&type=chunk) - The company is highly dependent on U.S. and foreign military spending, which constituted **35% of revenues in 2021** and **42% in 2020**[121](index=121&type=chunk) - Operations in China are subject to unique risks, including regulatory changes, tariffs, trade restrictions, and potential disruptions from civil unrest or health crises[124](index=124&type=chunk) [Item 1B. Unresolved Staff Comments](index=30&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments - None[166](index=166&type=chunk) [Item 2. Properties](index=30&type=section&id=Item%202.%20Properties) Ultralife owns facilities in New York and Texas, and leases multiple global locations for its Battery & Energy Products and Communications Systems segments - The company owns facilities in Newark, NY (approx. **250,000 sq ft**) and Missouri City, TX (**69,000 sq ft**)[167](index=167&type=chunk) - Leased facilities include locations in Shenzhen, China (approx. **97,000 sq ft**), the United Kingdom (approx. **25,000 sq ft**), Canada/US for Excell (approx. **30,000 sq ft**), and Virginia Beach, VA (approx. **32,500 sq ft**)[167](index=167&type=chunk) [Item 3. Legal Proceedings](index=30&type=section&id=Item%203.%20Legal%20Proceedings) Ultralife received a **$1.593 million settlement** in 2020 from a lithium-ion batteries antitrust lawsuit, with no other material adverse legal matters identified - The company recognized a gain of **$1.593 million in 2020** from a settlement in the "In Re: Lithium-ion Batteries Antitrust Litigation" class action lawsuit, with funds collected in January 2021[168](index=168&type=chunk) [Item 4. Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[170](index=170&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Ultralife's common stock trades on NASDAQ under 'ULBI', with no history or future plans for cash dividends, as earnings are retained for operations and expansion - The company's common stock is listed on the **NASDAQ Global Market** under the symbol **'ULBI'**[173](index=173&type=chunk) - The company has never declared or paid cash dividends and does not anticipate paying any in the foreseeable future, intending to retain earnings for financing future operations[175](index=175&type=chunk) [Item 6. [RESERVED]](index=31&type=section&id=Item%206.%20%5BRESERVED%5D) This item is reserved and contains no information [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Consolidated revenues decreased **8.8% to $98.3 million in 2021**, leading to a net loss of **$0.2 million**, primarily due to lower defense sales and supply chain disruptions, despite solid liquidity - For 2021, the company estimates that COVID-19 had a net negative impact of approximately **$11.0 million on sales** and **$4.5 million on operating income**[188](index=188&type=chunk) Consolidated Results of Operations (FY 2020-2021) | Metric (in thousands) | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $98,267 | $107,712 | (8.8%) | | Gross Profit | $24,642 | $29,159 | (15.5%) | | Operating Income | $35 | $5,701 | (99.4%) | | Net (Loss) Income Attributable to Ultralife | $(234) | $5,232 | N/A | | Diluted EPS | $(0.01) | $0.33 | N/A | - The decrease in government and defense sales was primarily due to the fulfillment of two large 2020 orders: a **$4.875 million order for BA-5390 batteries** and a **$5.680 million order for vehicle amplifier-adaptor systems**[190](index=190&type=chunk) - The company's liquidity remains solid, with **cash on hand of $8.4 million**, working capital of **$47.6 million**, and a current ratio of **3.5** as of December 31, 2021[197](index=197&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, Ultralife is not required to provide this information - The company is not required to provide this information as it qualifies as a smaller reporting company[247](index=247&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=45&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2021 and 2020, including balance sheets, cash flows, and notes on accounting policies and the Excell acquisition Consolidated Balance Sheet Highlights (as of Dec 31) | Metric (in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Total Assets | $159,538 | $137,701 | | Total Liabilities | $41,795 | $20,778 | | Total Shareholders' Equity | $117,743 | $116,923 | Consolidated Statement of Cash Flows Highlights (Year Ended Dec 31) | Metric (in thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,325 | $21,720 | | Net cash used in investing activities | $(26,333) | $(2,981) | | Net cash provided by (used in) financing activities | $19,642 | $(15,694) | - The acquisition of Excell on December 13, 2021, for a net purchase price of **$23.5 million**, was a major investing activity funded by cash and new debt facilities[315](index=315&type=chunk)[222](index=222&type=chunk) [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=76&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[394](index=394&type=chunk) [Item 9A. Controls and Procedures](index=76&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021, excluding the recently acquired Excell business - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of December 31, 2021[395](index=395&type=chunk) - Management assessed internal control over financial reporting as **effective**, excluding the recently acquired Excell business from the scope of the assessment[398](index=398&type=chunk)[399](index=399&type=chunk) [Item 9B. Other Information](index=76&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[401](index=401&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=77&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Shareholders proxy statement - Information is incorporated by reference from the Proxy Statement[405](index=405&type=chunk) [Item 11. Executive Compensation](index=77&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Shareholders proxy statement - Information is incorporated by reference from the Proxy Statement[406](index=406&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=77&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Security ownership information is incorporated by reference, detailing equity compensation plan data including **1.3 million securities** for outstanding options Equity Compensation Plan Information (as of Dec 31, 2021) | Plan Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price | Securities remaining available for future issuance | | :--- | :--- | :--- | :--- | | Equity compensation plans approved by security holders | 1,306,824 | $6.87 | 941,986 | | Equity compensation plans not approved by security holders | - | - | - | | Total | 1,306,824 | $6.87 | 941,986 | [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=77&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Shareholders proxy statement - Information is incorporated by reference from the Proxy Statement[410](index=410&type=chunk) [Item 14. Principal Accountant Fees and Services](index=77&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's 2022 Annual Meeting of Shareholders proxy statement - Information is incorporated by reference from the Proxy Statement[411](index=411&type=chunk) Part IV [Item 15. Exhibits, Financial Statement Schedules](index=79&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements and exhibits filed with the report, including key agreements and certifications - This section lists all financial statements, schedules, and exhibits filed with the report[412](index=412&type=chunk)[413](index=413&type=chunk)
Ultralife(ULBI) - 2021 Q4 - Earnings Call Transcript
2022-02-03 15:49
Ultralife Corporation (NASDAQ:ULBI) Q4 2021 Earnings Conference Call February 3, 2022 8:30 AM ET Company Participants Jody Burfening - Investor Relations Mike Popielec - President and Chief Executive Officer Phil Fain - Chief Financial Officer Conference Call Participants Josh Sullivan - The Benchmark Company Disclaimer*: This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the ...
Ultralife(ULBI) - 2021 Q3 - Earnings Call Transcript
2021-10-29 21:43
Ultralife Corporation (NASDAQ:ULBI) Q3 2021 Results Conference Call October 28, 2021 8:30 AM ET Company Participants Jody Burfening - MD and Principal Mike Popielec - President and CEO Phil Fain - Chief Financial Officer Conference Call Participants Gary Siperstein - Eliot Rose Wealth Management Josh Sullivan - The Benchmark Company Operator Good day, and welcome to this Ultralife Corporation's Third Quarter 2021 Earnings Release Conference Call. At this time, for opening remarks and introductions, I would ...
Ultralife(ULBI) - 2021 Q3 - Quarterly Report
2021-10-28 11:03
FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-20852 ULTRALIFE CORPORATION (Exact name of registrant as specified in its charter) Delaware 16-1387013 (State or other jurisd ...
Ultralife(ULBI) - 2021 Q2 - Earnings Call Transcript
2021-07-31 17:25
Financial Data and Key Metrics Changes - For Q2 2021, consolidated revenues totaled $26.8 million, a decrease of 6.3% compared to $28.6 million in Q2 2020 [14] - Operating profit increased by 14%, while operating income was $1.1 million compared to $2.3 million in the previous year [10][22] - Net income was $0.8 million or $0.05 per share, down from $1.7 million or $0.10 per share in Q2 2020 [25] - Adjusted EBITDA was $2.2 million, or 8.2% of sales, compared to $3.3 million, or 11.6%, for the same period last year [23] - Cash on hand increased by 16% to $15.8 million, and debt decreased by 37% to $0.7 million [27] Business Line Data and Key Metrics Changes - Battery & Energy Products segment revenues were $22.9 million, down 4.8% from $24 million last year, with a 48.6% increase in oil and gas market sales [16] - Communications Systems segment revenues decreased by 13.9% to $3.9 million, reflecting the completion of vehicle amplifier adapter systems shipments [17] - Gross profit for Battery & Energy Products was $6 million, with a gross margin of 26.3%, an increase of 120 basis points from last year [19] Market Data and Key Metrics Changes - Oil and gas end markets saw a revenue rebound of 49% year-over-year [10] - Medical sales decreased due to the abatement of COVID-related demand but remained above pre-pandemic levels [10] - Government defense sales declined by 13.2% due to the completion of contracts from the previous year [14] Company Strategy and Development Direction - The company is focused on revenue growth through market and sales reach expansion, new product development, and disciplined acquisitions [29] - Investment in CapEx and engineering resources has been increased to support new contracts and product development [12] - The company aims to leverage its business model to realize full potential and maintain profitability [28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain challenges impacting sales and logistics [11] - There is optimism regarding the recovery in oil and gas markets and the potential for increased demand in medical applications [60][62] - The company is confident in its ability to navigate challenges and maintain strong relationships with key customers [56] Other Important Information - The company has received over $8 million in new orders from existing medical customers, indicating strong demand despite supply chain issues [55] - The conformal wearable battery program has a potential contract value of up to $168 million over three years [34] Q&A Session Summary Question: Congratulations on the conformal battery win - Management acknowledged the significance of the IDIQ contract and its potential revenue [52] Question: Are there more COVID-type orders coming in? - Management noted that supply chain challenges have delayed some demand but expressed confidence in customer relationships [54][56] Question: What is the outlook for the oil and gas market? - Management indicated that the rig count has doubled since the COVID lows, and there is a favorable trend in demand [60][62] Question: What is the potential revenue from the 3-volt opportunity? - Management expects the 3-volt opportunity to potentially generate $10 million annually [65] Question: Will there be new amplifier orders from Thales? - Management expressed optimism about future orders as production ramps up [86]
Ultralife(ULBI) - 2021 Q2 - Earnings Call Presentation
2021-07-30 15:48
Ultralife Corporation Investor Presentation Michael D. Popielec PRESIDENT & CEO Philip A. Fain CFO & TREASURER Updated July 29, 2021 1 IMPORTANT REMINDER – FORWARD LOOKING STATEMENTS This presentation may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. 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 ...