Ultralife(ULBI) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter sales were $43.9 million, a decrease from $44.5 million in Q4 2023, with Battery & Energy Products sales increasing by 11.7% to $39.9 million, while Communications Systems sales decreased by 55.1% to $4.0 million[5][6] - Gross profit for the fourth quarter was $10.6 million, representing 24.2% of revenue, down from $11.4 million or 25.6% of revenue in Q4 2023[7] - Operating income for Q4 2024 was $1.5 million, down from $3.6 million in Q4 2023, with an operating margin decrease to 3.4% from 8.2%[9] - The company reported a GAAP EPS of $0.01 for Q4 2024, compared to $0.17 for Q4 2023[10] - Adjusted EBITDA for Q4 2024 was $3.9 million, or 8.9% of sales, compared to $4.8 million, or 10.7% of sales, in the prior year[11] - Adjusted EBITDA for the three-month period ended December 31, 2024, was $3,903,000, a decrease of 18.2% from $4,772,000 for the same period in 2023[25] - Net income attributable to Ultralife Corporation for the year ended December 31, 2024, was $6,312,000, down from $7,197,000 in 2023, representing a decline of 12.2%[25] - Adjusted EPS for the three-month period ended December 31, 2024, was $0.01 per share, compared to $0.18 per share for the same period in 2023[28] - Adjusted net income for the year ended December 31, 2024, was $7,544,000, down from $8,498,000 in 2023, a decrease of 11.2%[28] Expenses and Costs - Operating expenses increased to $9.1 million in Q4 2024 from $7.8 million in Q4 2023, reflecting costs associated with the Electrochem acquisition[8] - Total interest expense for the three-month period ended December 31, 2024, was $829,000, an increase of 46.5% from $566,000 in 2023[25] - The company incurred non-recurring acquisition costs of $1,111,000 during the three-month period ended December 31, 2024[25] - Stock-based compensation expense for the year ended December 31, 2024, totaled $698,000, compared to $528,000 in 2023, indicating a rise of 32.2%[25] - The company reported a depreciation expense of $831,000 for the three-month period ended December 31, 2024, compared to $740,000 in 2023, reflecting an increase of 12.3%[25] Strategic Initiatives - The total backlog and high confidence orders exiting 2024 was $102.2 million, an increase from $78.0 million at the end of Q3 2024[6] - The acquisition of Electrochem was completed on October 31, 2024, contributing $6.1 million to Q4 revenue[6] - The company expects to realize manufacturing cost efficiencies and vertical integration savings from the Electrochem acquisition[4] - Ultralife Corporation anticipates profitable growth and incremental cash flow in 2025, enabling debt reduction and support for strategic capital expenditures[4] Shareholder Information - Weighted average shares outstanding for the year ended December 31, 2024, were 16,555,000, compared to 16,214,000 in 2023[28] - The income tax provision for the three-month period ended December 31, 2024, was $262,000, consistent with $263,000 in 2023[25]