MEASUREMENT SPECIALTIES, INC. 
By HAMPTON, Va.,
The Company reported an increase in net sales of
For the nine months ended
Frank Guidone, Company CEO commented, "Continued solid growth in sales and ongoing leverage of SGA helped to drive strong results in the quarter. Year to date sales increased 14% and adjusted income from continuing operations grew 39% over the same period last year."
Guidone continued, "We expect solid growth in fourth quarter sales will
boost the full fiscal year to
On
The Company will host an investor conference call on
About Measurement Specialties. Measurement Specialties, Inc. (MEAS) designs and manufactures sensors and sensor-based systems to measure precise ranges of physical characteristics such as pressure, temperature, position, force, vibration, humidity and photo optics. MEAS uses multiple advanced technologies - including piezoresistive, electro-optic, electro-magnetic, capacitive, application specific integrated circuits (ASICs), micro- electromechanical systems (MEMS), piezoelectric polymers and strain gauges - to engineer sensors that operate precisely and cost effectively.
This release includes forward looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities and Exchange Act of 1934, as amended. Forward looking statements
may be identified by such words or phrases "should", "intends", " is subject
to", "expects", "will", "continue", "anticipate", "estimated", "projected",
"may", "we believe", "future prospects", or similar expressions. The forward-
looking statements above involve a number of risks and uncertainties. Factors
that might cause actual results to differ include, but are not limited to,
success of any reorganization; ability to raise additional funds; conditions
in the general economy and in the markets served by the Company; competitive
factors, such as price pressures and the potential emergence of rival
technologies; interruptions of suppliers' operations affecting availability of
component materials at reasonable prices; timely development and market
acceptance, and warranty performance of new products; success in integrating
prior acquisitions; changes in product mix, costs and yields, fluctuations in
foreign currency exchange rates; changes in the Company's tax position;
legislative initiatives, including tax legislation; uncertainties related to
doing business in
Company Contact: Mark Thomson, CFO, (757) 766-4224
MEASUREMENT SPECIALTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three months ended Nine months ended
(Amounts in thousands, except per December 31, December 31,
share amounts) 2007 2006 2007 2006
Net sales $55,991 $49,766 $165,604 $145,867
Cost of goods sold 32,522 28,113 95,888 82,396
Gross profit 23,469 21,653 69,716 63,471
Total operating expenses 15,949 15,935 48,629 46,666
Operating income 7,520 5,718 21,087 16,805
Interest expense, net 946 1,518 3,339 4,749
Foreign currency exchange and other
expense 425 (12) 834 436
Income from continuing operations
before minority interest and income
taxes 6,149 4,212 16,914 11,620
Minority interest, net of income
taxes 91 230 252 460
Income tax expense from continuing
operations 1,205 648 4,747 2,019
Income from continuing operations 4,853 3,334 11,915 9,141
Discontinued operations:
Income (loss) from discontinued
operations before income taxes 42 (5) 98 (37)
Income tax expense (benefit) from
discontinued operations (9) (1) (3) (7)
Income from discontinued operations 51 (4) 101 (30)
Gain on disposition of discontinued
operations (net of income taxes) - 2,156 - 2,156
Income (loss) from discontinued
operations 51 2,152 101 2,126
Net income $4,904 $5,486 $12,016 $11,267
Net income per common share - Basic:
Income from continuing operations $0.33 $0.24 $0.83 $0.65
Income from discontinued operations 0.01 - 0.01 -
Gain from disposition of discontinued
operations (net of income taxes) - 0.15 - 0.15
Net income per common share - Basic $0.34 $0.39 $0.84 $0.80
Net income per common share - Diluted:
Income from continuing operations $0.33 $0.23 $0.82 $0.63
Income (loss) from discontinued
operations 0.01 - 0.01 -
Gain from disposition of discontinued
operations (net of income taxes) - 0.15 - 0.15
Net income per common share - Diluted $0.34 $0.38 $0.83 $0.78
Weighted average shares outstanding
- Basic 14,357 14,177 14,337 14,120
Weighted average shares outstanding
- Diluted 14,535 14,401 14,512 14,411
MEASUREMENT SPECIALTIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, March 31,
(Amounts in thousands) 2007 2007
ASSETS
Current assets:
Cash and cash equivalents $28,958 $7,709
Accounts receivable, trade, net of allowance for
doubtful accounts of $624 and $516, respectively 34,960 34,774
Inventories, net 41,774 37,231
Deferred income taxes, net 4,956 4,718
Prepaid expenses and other current assets 3,662 3,057
Other receivables 847 420
Due from joint venture partner 1,622 1,456
Current portion of promissory note receivable 1,077 2,465
Total current assets 117,856 91,830
Property, plant and equipment, net 35,403 27,559
Goodwill 92,027 77,397
Acquired intangible assets, net 32,968 17,006
Deferred income taxes, net 2,989 8,360
Promissory note receivable, net of current portion - 851
Other assets 1,725 1,688
Total Assets $282,968 $224,691
MEASUREMENT SPECIALTIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, March 31,
(Amounts in thousands) 2007 2007
LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current portion of promissory notes payable $2,177 $100
Current portion of deferred acquisition obligation - 1,973
Current portion of long-term debt 3,106 2,753
Current portion of capital lease obligation 798 811
Accounts payable 21,825 17,742
Accrued expenses 4,171 2,447
Accrued compensation 6,385 6,616
Income taxes payable 3,115 3,089
Other current liabilities 2,473 4,089
Accrued litigation settlement expenses - 1,275
Total current liabilities 44,050 40,895
Revolver 69,647 42,010
Long-term debt, net of current portion 15,914 17,561
Capital lease obligation, net of current portion 912 1,354
Promissory notes payable, net of current portion 6,531 -
Other liabilities 542 606
Total liabilities 137,596 102,426
Minority Interest 1,690 1,628
Shareholders' equity:
Serial preferred stock; 221,756 shares authorized;
none outstanding - -
Common stock, no par; 25,000,000 shares authorized;
14,375,546 and 14,280,364 shares issued and
outstanding, respectively - -
Additional paid-in capital 77,460 73,399
Retained earnings 57,513 45,497
Accumulated other comprehensive income 8,709 1,741
Total shareholders' equity 143,682 120,637
Total liabilities, minority interest and
shareholders' equity $282,968 $224,691
Reconciliation for Non-GAAP Measures (Unaudited):
Three months ended Nine months ended
December 31, December 31,
2007 2006 2007 2006
Adjusted EBITDA (earnings before
interest, taxes, depreciation,
amortization, stock option)
Income from Continuing Operations $4,853 $3,334 $11,915 $9,141
Add Back:
Interest 946 1,518 3,339 4,749
Income Taxes 1,205 648 4,747 2,019
Depreciation and Amortization 2,273 2,516 6,784 7,207
Option Expense under SFAS 123R 860 782 2,493 1,985
Adjusted EBITDA $10,137 $8,798 $29,278 $25,101
As % of Net Sales 18.1% 17.7% 17.7% 17.2%
Adjusted SG&A Reconciliation
Reported Operating Expense $15,949 $15,935 $48,629 $46,666
Amortization of Acquired Intangibles 732 1,149 2,279 3,298
Option Expense under SFAS 123R 860 782 2,493 1,985
Adjusted Sales, General &
Administrative (SG&A) $14,357 $14,004 $43,857 $41,383
As % of Net Sales 25.6% 28.1% 26.5% 28.4%
Adjusted Income from Continuing Operations
Income from continuing operations -
reported $4,853 $3,334 $11,915 $9,141
Deferred income tax benefit associated
with China tax law change $(175) $(175)
Deferred income tax expense associated
with German tax law change - - 997 -
Adjusted Income from Continuing
Operations $4,678 $3,334 $12,737 $9,141
Change from prior year 40% 39%
Per diluted share $0.32 $0.23 $0.88 $0.63
Regulation G, "Conditions for Use of Non-GAAP Financial Measures," promulgated under the Securities and Exchange Act of 1934, as amended, defines and prescribes the conditions for use of certain non-GAAP financial information. We believe that certain of our financial measures which meet the definition of non-GAAP financial measures provide important supplemental information to investors.
The financial information accompanying this press release includes the Company's earnings before interest, taxes, depreciation, amortization and stock option expense, or "Adjusted EBITDA." This number is derived by adding interest, taxes, depreciation, amortization and stock option expense to the Company's income from continuing operations. The Company believes that this information is important to investors because is provides a financial measure that is more representative of the cash flow of the Company, excluding non- cash expenses and items such as taxes and interest, which vary greatly period to period The Company believes that this measure is important to investors because it more accurately represents the leverage effect of fixed expenses given our rapid growth in sales.
These non-GAAP financial measures are used in addition to and in conjunction with the results presented in accordance with GAAP. These non- GAAP financial measures should not be relied upon to the exclusion of GAAP financial measures. The Company believes that non-GAAP financial measures provide an additional way of viewing aspects of our operation that, when viewed with our GAAP results and the accompanying reconciliations to the corresponding GAAP financial measures, provide an understanding of certain factors and trends relating to our business. The Company strongly encourages investors to review our financial statements and publicly filed reports in their entirety and to not rely on any single financial measure.
SOURCE Measurement Specialties, Inc.
