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Ultralife(ULBI) - 2019 Q4 - Annual Report
2020-02-06 12:07
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 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 (Stat ...
Ultralife(ULBI) - 2019 Q3 - Earnings Call Transcript
2019-11-01 21:10
Ultralife Corporation (NASDAQ:ULBI) Q3 2019 Earnings Conference Call October 31, 2019 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 Gary Siperstein – Eliot Rose Wealth Management Operator Good day, and welcome to the Ultralife Corporation Third Quarter 2019 Earnings Release Conference Call. As a reminder, today's conference is being recorded. At this time, for opening ...
Ultralife(ULBI) - 2019 Q2 - Earnings Call Transcript
2019-08-02 19:31
Ultralife Corporation (NASDAQ:ULBI) Q2 2019 Earnings Conference Call August 1, 2019 8:30 AM ET Company Participants Jody Burfening - Investor Relations Mike Popielec - President & Chief Executive Officer Phil Fain - Chief Financial Officer Conference Call Participants Gary Siperstein - Eliot Rose Wealth Management Operator Good day, and welcome to this Ultralife Corporation's Second Quarter 2019 Earnings Release Conference Call. At this time, I'll like to turn the conference over to Jody Burfening. Please g ...
Ultralife(ULBI) - 2019 Q2 - Earnings Call Presentation
2019-08-01 18:34
Ultralife Corporation Investor Presentation Michael D. Popielec PRESIDENT & CEO Philip A. Fain CFO & TREASURER Updated August 1, 2019 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 ...
Ultralife(ULBI) - 2019 Q2 - Quarterly Report
2019-08-01 11:07
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ 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 (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, 2019 OR ULTRALIFE CORPORATION (Exact name of registrant as specified in its charter) Delaware (State or ot ...
Ultralife(ULBI) - 2019 Q1 - Earnings Call Transcript
2019-05-05 09:04
Ultralife Corp. (NASDAQ:ULBI) Q1 2019 Earnings Conference Call May 2, 2019 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 Gary Siperstein - Eliot Rose Wealth Management Operator Good day and welcome to Ultralife Corporation First Quarter 2019 Earnings Release Call. At this time for opening remarks and introductions, I would like to turn the call over to Ms. Jody Burfeni ...
Ultralife(ULBI) - 2019 Q1 - Quarterly Report
2019-05-02 11:06
PART I. FINANCIAL INFORMATION [Item 1. Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2019 report **$18.9 million in revenues** and **$0.4 million in net income**, a significant decline from the prior year Consolidated Statement of Income Highlights (Q1 2019 vs Q1 2018) | Metric | Q1 2019 (ended Mar 31) ($ thousands) | Q1 2018 (ended Apr 1) ($ thousands) | Change | | :--- | :--- | :--- | :--- | | Revenues | $18,882 | $23,069 | -18.1% | | Gross Profit | $5,084 | $7,282 | -30.2% | | Operating Income | $548 | $2,356 | -76.7% | | Net Income Attributable to Ultralife | $425 | $2,151 | -80.2% | | Diluted EPS | $0.03 | $0.13 | -76.9% | Consolidated Balance Sheet Highlights (As of Mar 31, 2019) | Account | March 31, 2019 ($ thousands) | December 31, 2018 ($ thousands) | | :--- | :--- | :--- | | Cash | $21,240 | $25,934 | | Total Current Assets | $65,481 | $67,160 | | Total Assets | $120,951 | $120,848 | | Total Current Liabilities | $15,996 | $15,386 | | Total Liabilities | $17,028 | $16,385 | | Total Shareholders' Equity | $103,923 | $104,463 | Consolidated Statement of Cash Flows Highlights (Q1 2019 vs Q1 2018) | Cash Flow Activity | Q1 2019 (ended Mar 31) ($ thousands) | Q1 2018 (ended Apr 1) ($ thousands) | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | ($545) | ($921) | | Net Cash Used In Investing Activities | ($2,581) | ($172) | | Net Cash (Used In) Provided By Financing Activities | ($1,609) | $939 | | **Decrease in Cash** | **($4,694)** | **-** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes disclose the adoption of ASC 842, the **$25.0 million acquisition** of SWE, credit facility amendments, and segment performance - On May 1, 2019, the company completed the acquisition of Southwest Electronic Energy Corporation ("SWE") for an aggregate purchase price of **$25.0 million in cash**, intended to support commercial revenue diversification, particularly in the oil & gas and subsea electrification markets[32](index=32&type=chunk)[33](index=33&type=chunk) - To fund the SWE acquisition, on May 1, 2019, the company amended its credit agreement to include a five-year, **$8.0 million senior secured term loan** and extended its **$30.0 million senior secured revolving credit facility** through May 31, 2022[39](index=39&type=chunk)[40](index=40&type=chunk) - During Q1 2019, the company repurchased **267,300 shares** of its common stock for an aggregate consideration of **$1.957 million** under its Share Repurchase Program[51](index=51&type=chunk) Segment Performance (Q1 2019 vs Q1 2018) | Segment | Metric | Q1 2019 ($ thousands) | Q1 2018 ($ thousands) | | :--- | :--- | :--- | :--- | | **Battery & Energy Products** | Revenues | $15,998 | $17,224 | | | Segment Contribution | $4,410 | $5,036 | | **Communications Systems** | Revenues | $2,884 | $5,845 | | | Segment Contribution | $674 | $2,246 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging Q1, with consolidated revenues decreasing **18.1% to $18.9 million** and gross margin compressing to **26.9%** [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Consolidated revenues decreased **18.1% to $18.9 million**, with Battery & Energy Products down **7.1%** and Communications Systems down **50.7%**, impacting gross margin - Battery & Energy Products revenues decreased **7.1%** due to a **21.2% drop** in government and defense sales, partially offset by a **4.0% increase** in commercial revenues, led by medical customers[103](index=103&type=chunk) - Communications Systems revenues decreased **50.7%** due to the timing of shipments, transitioning from a large Q1 2018 contract to initial production for new U.S. Army Network Modernization orders in Q1 2019[104](index=104&type=chunk) - Consolidated gross margin fell to **26.9%** from **31.6%** in the prior year, primarily due to unfavorable sales mix and costs incurred to commence initial production for large Communications Systems program awards[105](index=105&type=chunk) [Adjusted EBITDA (Non-GAAP Measure)](index=24&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA, a non-GAAP measure, significantly decreased to **$1.2 million** (6.4% of revenues) in Q1 2019 from **$3.0 million** in Q1 2018 Reconciliation of Net Income to Adjusted EBITDA | Line Item | Q1 2019 ($ thousands) | Q1 2018 ($ thousands) | | :--- | :--- | :--- | | Net Income Attributable to Ultralife | $425 | $2,151 | | Interest and Financing Expense, Net | $5 | $33 | | Income Tax Provision | $41 | $55 | | Depreciation Expense | $447 | $484 | | Amortization of Intangible Assets and Financing Fees | $101 | $111 | | Stock-Based Compensation Expense | $185 | $139 | | **Adjusted EBITDA** | **$1,204** | **$2,973** | [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Cash decreased by **$4.7 million** to **$21.2 million** as of March 31, 2019, primarily due to inventory build-up, capital expenditures, and share repurchases - Cash decreased by **$4.7 million** during Q1 2019, from **$25.9 million** to **$21.2 million**[121](index=121&type=chunk) - Key uses of cash during the quarter included[122](index=122&type=chunk)[123](index=123&type=chunk) - A **$5.0 million increase** in inventory, primarily for Communications Systems program awards - **$2.6 million** in capital expenditures, mainly for automation equipment in the Battery & Energy Products business - **$2.0 million** for common stock repurchases [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2019[130](index=130&type=chunk) - No changes occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[131](index=131&type=chunk) PART II. OTHER INFORMATION [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity, with **267,300 shares** repurchased in Q1 2019, leaving **2.1 million shares** authorized for repurchase Share Repurchases in Q1 2019 | Period | Total Number of Shares Purchased | Weighted Average Price Paid Per Share ($) | Maximum Shares Remaining for Purchase (shares) | | :--- | :--- | :--- | :--- | | January 2019 | 267,100 | $7.29 | 2,127,226 | | February 2019 | 200 | $7.49 | 2,127,026 | | March 2019 | - | - | 2,127,026 | | **Total Q1** | **267,300** | | | [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL interactive data files - The exhibits filed with this report include CEO/CFO certifications and XBRL data files[137](index=137&type=chunk)
Ultralife(ULBI) - 2018 Q4 - Earnings Call Transcript
2019-02-09 07:31
Ultralife Corp. (NASDAQ:ULBI) Q4 2018 Earnings Conference Call February 7, 2019 10:00 AM ET Company Participants Jody Burfening – Investor Relations, LHA Mike Popielec – President and Chief Executive Officer Phil Fain – Chief Financial Officer Conference Call Participants Gary Siperstein – Eliot Rose Wealth Management Bill Lauber – Sterling Capital Management Operator Good day, and welcome to the Ultralife Corporation Fourth Quarter 2018 Earnings Release Conference Call. At this time, for opening remarks an ...
Ultralife(ULBI) - 2018 Q4 - Earnings Call Presentation
2019-02-07 18:28
Ultralife Corporation Investor Presentation Michael D. Popielec PRESIDENT & CEO Philip A. Fain CFO & TREASURER Updated February 7, 2019 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 ...
Ultralife(ULBI) - 2018 Q4 - Annual Report
2019-02-07 12:57
Part I [Item 1. Business](index=3&type=section&id=ITEM%201.%20BUSINESS) Ultralife Corporation designs, manufactures, and sells power solutions and communication systems to global government, defense, and commercial sectors [General Overview](index=3&type=section&id=General) Ultralife Corporation provides power solutions and communication systems globally through its Battery & Energy Products and Communications Systems segments - The company operates through two primary segments: **Battery & Energy Products** and **Communications Systems**[22](index=22&type=chunk) - Products are sold globally to government, defense, and commercial sectors through OEMs, distributors, and direct sales channels[20](index=20&type=chunk)[21](index=21&type=chunk) [Segment Performance](index=5&type=section&id=Segment%20Performance) In 2018, Battery & Energy Products generated **$70.5 million** in revenue, while Communications Systems contributed **$16.7 million** Segment Financial Performance (Year Ended Dec 31, 2018) | Segment | Revenue (in thousands) | Gross Profit (in thousands) | | :--- | :--- | :--- | | **Battery & Energy Products** | $70,497 | $19,574 | | **Communications Systems** | $16,693 | $6,009 | | **Corporate Operating Expenses** | N/A | ($19,028) | [Company History and Acquisitions](index=5&type=section&id=History) Ultralife, incorporated in 1990, grew through strategic acquisitions expanding its battery and military communications businesses globally - Formed in 1990, went public in 1992, and grew through key acquisitions[32](index=32&type=chunk) - Acquired **ABLE New Energy** (2006) to expand battery products and enter new consumer markets in China[33](index=33&type=chunk) - Expanded into military communications with the acquisitions of **McDowell Research** (2006) and **AMTI** (2009)[34](index=34&type=chunk)[36](index=36&type=chunk) - Acquired **Accutronics** (2016) to diversify commercial revenue, expand into the European medical device market, and achieve sales synergies[37](index=37&type=chunk) [Products, Services and Technology](index=6&type=section&id=Products%2C%20Services%20and%20Technology) Ultralife's portfolio includes non-rechargeable and rechargeable Lithium batteries, and ruggedized military communication equipment like RF amplifiers and integrated systems - **Battery & Energy Products** include non-rechargeable Lithium batteries (9-volt, cylindrical, ThinCell) and rechargeable Lithium-ion batteries and charging systems[38](index=38&type=chunk)[46](index=46&type=chunk) - **Communications Systems** products include RF amplifiers, integrated vehicle-mounted and man-portable systems, and various power supplies for tactical communications[52](index=52&type=chunk)[53](index=53&type=chunk) [Sales and Marketing](index=8&type=section&id=Sales%20and%20Marketing) The company employs a global sales force, with a significant portion of revenue from government contracts, and saw a **168%** increase in Communications Systems backlog in 2018 - A single large defense prime contractor represented **16%** of total revenues in 2018[60](index=60&type=chunk) Sales by Region (in thousands) | Year | U.S. Customers | Non-U.S. Customers | | :--- | :--- | :--- | | **2018** | $53,054 | $34,136 | | **2017** | $47,614 | $37,917 | Order Backlog by Segment (as of Dec 31, in thousands) | Segment | 2018 | 2017 | % Change | | :--- | :--- | :--- | :--- | | **Battery & Energy Products** | $29,300 | $31,000 | -5% | | **Communications Systems** | $21,700 | $8,100 | +168% | - The **168%** increase in Communications Systems backlog was driven by two major contract awards in October 2018 totaling **$19.2 million** to support U.S. Army network modernization[68](index=68&type=chunk) [Manufacturing and Raw Materials](index=10&type=section&id=Manufacturing%20and%20Raw%20Materials) Ultralife operates ISO-certified manufacturing facilities globally, faces supply chain risks from single-source materials, and reduced inventory levels in 2018 - The company operates **ISO 9001** and/or **ISO 13485** certified manufacturing facilities in the U.S., China, and the U.K[73](index=73&type=chunk) - The company acknowledges a risk related to its reliance on single or limited-source suppliers for certain materials used in its products[76](index=76&type=chunk)[80](index=80&type=chunk) Inventory Levels by Segment (as of Dec 31, in thousands) | Segment | 2018 | 2017 | % Change | | :--- | :--- | :--- | :--- | | **Battery & Energy Products** | $14,007 | $16,650 | -16% | | **Communications Systems** | $8,836 | $9,676 | -9% | [Research and Development](index=11&type=section&id=Research%20and%20Development) The company invests in R&D across its global facilities, with expenditures of **$4.9 million** in 2018, and anticipates future increases to support new product development R&D Expenditures (in thousands) | Year | Total R&D Expense | Customer Sponsored R&D (in Cost of Goods Sold) | | :--- | :--- | :--- | | **2018** | $4,905 | $397 | | **2017** | $5,142 | $405 | - Future R&D expenditures are expected to increase by **20% or more** over 2018 levels to support new product development, a key driver of growth[83](index=83&type=chunk) [Safety, Regulatory, and Environmental Matters](index=12&type=section&id=Safety%3B%20Regulatory%20Matters%3B%20Environmental%20Considerations) Ultralife's products are subject to extensive safety, transportation, environmental, and export control regulations, with management believing it is in material compliance - The transportation of Lithium batteries is highly regulated by U.S. (**PHMSA**) and international (**ICAO, IATA, IMDG**) bodies[88](index=88&type=chunk) - The company complies with environmental regulations such as the **EU RoHS Directive**, **EU Battery Directive**, and **China RoHS 2**[89](index=89&type=chunk)[90](index=90&type=chunk)[93](index=93&type=chunk) - Products are subject to U.S. and international trade and export laws, including **ITAR** and **EAR**[96](index=96&type=chunk) - The company complies with the **Dodd-Frank Act** regarding the disclosure of 'conflict minerals' in its supply chain[106](index=106&type=chunk) [Item 1A. Risk Factors](index=16&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces multiple risks including customer concentration, military spending dependence, supply chain vulnerabilities, and geopolitical and cybersecurity threats - A single major customer, a large defense contractor, accounted for **16%** of revenues in 2018, creating significant customer concentration risk[112](index=112&type=chunk) - The company is highly dependent on military spending, with approximately **53%** of 2018 revenues derived from sales to U.S. and foreign militaries[121](index=121&type=chunk) - Operations in China are subject to unique risks, including regulatory changes, labor issues, currency fluctuations, and the potential impact of U.S. tariffs[115](index=115&type=chunk) - The company faces supply chain risk as certain materials and components are available only from a single or limited number of suppliers[118](index=118&type=chunk) - Cybersecurity threats to the company's IT infrastructure pose a risk of operational disruption and compromise of proprietary information[126](index=126&type=chunk) [Item 2. Properties](index=26&type=section&id=ITEM%202.%20PROPERTIES) Ultralife owns its corporate headquarters in New York and leases manufacturing, sales, and R&D facilities across the U.S., China, and the U.K. - Owns two buildings in Newark, NY (approx. **250,000 sq. ft.**) serving as corporate headquarters and Battery & Energy Products operations[155](index=155&type=chunk) - Leases facilities in Shenzhen, China (approx. **97,000 sq. ft.**) and Newcastle-under-Lyme, UK (approx. **25,000 sq. ft.**) for the Battery & Energy Products segment[155](index=155&type=chunk) - Leases a facility in Virginia Beach, VA (approx. **32,500 sq. ft.**) for the Communications Systems segment[155](index=155&type=chunk) [Item 3. Legal Proceedings](index=26&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS) A lawsuit related to a 2013 aircraft fire involving the company's battery was resolved in February 2018 without financial consequences - The 'Dreamliner Litigation' related to a 2013 aircraft fire was resolved in February 2018[160](index=160&type=chunk) - The matter was terminated without any financial consequences to the company[160](index=160&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=27&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, and the company initiated a share repurchase program in 2018 but does not pay cash dividends - The company's common stock is listed on the **NASDAQ Global Market** under the symbol '**ULBI**'[163](index=163&type=chunk) - A share repurchase program was approved in October 2018, authorizing the repurchase of up to **2.5 million shares**[164](index=164&type=chunk) 2018 Share Repurchases | Period | Total Shares Purchased | Weighted Average Price Paid Per Share | Total Cost (in thousands) | | :--- | :--- | :--- | :--- | | **November 2018** | 29,691 | $7.26 | ~$216 | | **December 2018** | 75,983 | $6.89 | ~$523 | | **Total for 2018** | **105,674** | **$6.99** | **$739** | - The company has never declared or paid cash dividends and is precluded from doing so under its current credit facility[168](index=168&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=ITEM%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2018, Ultralife's revenues grew to **$87.2 million**, net income surged to **$24.9 million** due to a tax benefit, and liquidity strengthened with no debt [Results of Operations (2018 vs. 2017)](index=30&type=section&id=Results%20of%20Operations) In 2018, total revenues increased **1.9%** to **$87.2 million**, gross margin declined, and net income surged to **$24.9 million** due to a non-cash tax benefit Consolidated Financial Results (in thousands, except EPS) | Metric | 2018 | 2017 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $87,190 | $85,531 | +1.9% | | **Gross Profit** | $25,583 | $26,232 | -2.5% | | *Gross Margin* | *29.3%* | *30.7%* | *-140 bps* | | **Operating Income** | $6,555 | $6,476 | +1.2% | | **Net Income Attributable to Ultralife** | $24,930 | $7,648 | +226% | | **Diluted EPS** | $1.53 | $0.48 | +219% | - 2018 net income includes a non-cash tax benefit of **$18,652 thousand** from the release of the valuation allowance on U.S. deferred tax assets[181](index=181&type=chunk)[182](index=182&type=chunk) - The order backlog at year-end 2018 was **$51.0 million**, a **30.3%** increase from 2017, driven by a **168.7%** increase in the Communications Systems backlog[191](index=191&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened in 2018, with cash increasing **41.5%** to **$25.9 million** from operating activities, and ended the year with no debt - Cash balance increased by **41.5%** to **$25,934 thousand** as of December 31, 2018[208](index=208&type=chunk) - Generated **$10,886 thousand** in cash from operating activities, a **49.7%** increase from 2017, aided by strong earnings and a **$3,186 thousand** reduction in inventory[208](index=208&type=chunk) - The company had no debt outstanding as of December 31, 2018, and had approximately **$30,000 thousand** available under its credit facility[214](index=214&type=chunk)[219](index=219&type=chunk) [Critical Accounting Policies and Estimates](index=37&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies including revenue recognition, inventory valuation, asset impairment, and income taxes, notably the 2018 release of deferred tax asset valuation allowance - Adopted new revenue recognition standard (**Topic 606**) on January 1, 2018, which did not materially impact the timing of revenue recognition[224](index=224&type=chunk) - Annual impairment testing for goodwill and other indefinite-lived intangible assets as of October 1, 2018, identified no impairments[233](index=233&type=chunk) - A critical judgment in 2018 was the release of the valuation allowance on U.S. deferred tax assets, based on sustained profitability and positive future outlook[236](index=236&type=chunk)[237](index=237&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=40&type=section&id=ITEM%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2018 and 2017, including balance sheets, income statements, cash flows, and notes Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2018 | Dec 31, 2017 | | :--- | :--- | :--- | | **Total Current Assets** | $67,221 | $61,916 | | **Total Assets** | $120,104 | $97,186 | | **Total Current Liabilities** | $14,947 | $14,239 | | **Total Liabilities** | $15,570 | $18,137 | | **Total Shareholders' Equity** | $104,534 | $79,049 | Consolidated Statement of Income Highlights (in thousands) | Account | 2018 | 2017 | | :--- | :--- | :--- | | **Revenues** | $87,190 | $85,531 | | **Gross Profit** | $25,583 | $26,232 | | **Operating Income** | $6,555 | $6,476 | | **Net Income Attributable to Ultralife** | $24,930 | $7,648 | [Item 9A. Controls and Procedures](index=67&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, 2018 - Management concluded that disclosure controls and procedures were effective as of December 31, 2018[375](index=375&type=chunk) - Management assessed internal control over financial reporting as effective as of December 31, 2018, based on the **COSO** framework[378](index=378&type=chunk) Part III [Item 10. Directors, Executive Officers and Corporate Governance](index=68&type=section&id=ITEM%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2019 proxy statement - Information is incorporated by reference from the company's definitive proxy statement[382](index=382&type=chunk)[383](index=383&type=chunk) [Item 11. Executive Compensation](index=68&type=section&id=ITEM%2011.%20Executive%20Compensation) Information on executive and director compensation is incorporated by reference from the 2019 proxy statement - Information is incorporated by reference from the company's definitive proxy statement[382](index=382&type=chunk)[384](index=384&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=68&type=section&id=ITEM%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the company's proxy statement Equity Compensation Plan Information | Plan Category | Securities to be Issued Upon Exercise (a) | Weighted-Average Exercise Price (b) | Securities Remaining for Future Issuance (c) | | :--- | :--- | :--- | :--- | | **Approved by security holders** | 1,576,087 | $6.58 | 726,858 | | **Not approved by security holders** | - | - | - | | **Total** | **1,576,087** | **$6.58** | **726,858** | Part IV [Item 15. Exhibits, Financial Statement Schedules](index=69&type=section&id=ITEM%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and all exhibits filed with the annual report, including corporate governance documents and certifications - This section contains the list of financial statements and all exhibits filed with the annual report[391](index=391&type=chunk)