Ultralife(US:ULBI)2023-10-26 11:32Financial Performance - Consolidated revenues for the three-month period ended September 30, 2023, were $39,488, an increase of $6,254 or 18.8% compared to $33,234 for the same period in 2022, driven by a 48.1% increase in government/defense sales and a 5.6% increase in commercial sales [82]. - Gross profit for the three-month period ended September 30, 2023, was $9,774, or 24.8% of revenue, compared to $6,715, or 20.2% of revenue for the same quarter a year ago, reflecting a 460-basis point improvement [83]. - Operating income for the three-month period ended September 30, 2023, was $2,135, or 5.4% of revenues, compared to a loss of $586 for the year-earlier period, resulting from the increase in revenues and improved gross margin [85]. - Net income attributable to Ultralife Corporation was $1,330 or $0.08 per share for the third quarter of 2023, compared to a net loss of $239 or $0.01 per share for the same period in 2022 [86]. - Adjusted EBITDA for the third quarter of 2023 amounted to $3,480, or 8.8% of revenues, compared to $1,255 or 3.8% of revenues for the third quarter of 2022 [87]. - Consolidated revenues for the nine-month period ended September 30, 2023, were $114,096, an increase of $18,363, or 19.2%, from $95,733 in the same period of 2022 [101]. - Adjusted EPS for the nine-month period ended September 30, 2023, was $0.34, compared to ($0.04) for the same period in 2022 [111]. - Adjusted EBITDA for the nine-month period ended September 30, 2023, was $5,569,000, compared to an adjusted loss of $578,000 for the same period in 2022 [120]. Sales Performance - Battery & Energy Products segment revenues increased by $3,336, or 11.7%, from $28,583 in Q3 2022 to $31,919 in Q3 2023, with government/defense sales increasing by 36.2% [90]. - Communications Systems sales increased by $2,918, or 62.7%, from $4,651 in Q3 2022 to $7,569 in Q3 2023, primarily due to defense contracts [91]. - Government/defense sales increased by $15,198, or 59.4%, while commercial sales rose by $3,165, or 4.5% for the nine-month period ended September 30, 2023 [101]. - Communications Systems revenues surged by $11,986, or 152.5%, from $7,860 in the nine-month period ended September 30, 2022, to $19,846 in 2023 [103]. Expenses and Costs - Operating expenses increased to $7,639 for the three-month period ended September 30, 2023, compared to $7,301 for the same period in 2022, representing 19.3% of revenues [84]. - Research and development costs were $1,869 for the three-month period ended September 30, 2023, a decrease of 1.4% from $1,896 for the same period in 2022 [96]. - Operating expenses for the nine-month period ended September 30, 2023, were $21,972, an increase of $565, or 2.6%, from $21,407 in 2022 [107]. - Research and development costs increased by $254, or 4.7%, to $5,679 for the nine-month period ended September 30, 2023, driven by new product development investments [108]. Cash Flow and Financing - As of September 30, 2023, cash totaled $9,301,000, an increase of $3,588,000 from $5,713,000 at December 31, 2022 [123]. - Cash used in operations for the nine-month period ended September 30, 2023, was $503,000, significantly improved from $3,827,000 used in operations for the same period in 2022 [124]. - Cash provided by financing activities for the nine months ended September 30, 2023, was $5,791,000, primarily due to draws on the credit facility [126]. - The company had $19,580,000 outstanding borrowings on the Revolving Credit Facility and $6,667,000 on the Term Loan Facility as of September 30, 2023 [129]. - The company expects positive operating cash flow and sufficient availability under its Revolving Credit Facility to meet general funding requirements for the foreseeable future [127]. Tax and Interest - The effective tax rate for the nine-month period ended September 30, 2023, was 28.1%, down from 259.1% in the same period of 2022 [110]. - Interest and financing expense increased by $867, or 148.7%, from $583 in the first nine months of 2022 to $1,450 in 2023 [109]. Future Commitments - The company made commitments to purchase approximately $925,000 of production machinery and equipment as of September 30, 2023 [130]. - The company filed a shelf registration statement allowing for the potential offering of up to $100 million in securities for general corporate purposes, including potential acquisitions and strategic capital expenditures [128].