DEVC Devcon Intl Corp (MM)

BOCA RATON, Fla., March 19 /PRNewswire-FirstCall/ -- Devcon International Corp. (NASDAQ:DEVC) today announced its full year financial results for the period ended December 31, 2007. Revenues from continuing operations for the full year ended December 31, 2007 increased $1.8 million to $55.8 million, compared to revenues of $54.0 million for the period ended December 31, 2006. The increase in revenue was due primarily to 2007 revenue including a full twelve months of revenue for the Guardian acquisition compared to ten months of revenue for 2006 as Guardian was acquired on March 6, 2006. This increase was partially offset by six months of revenue amounting to $1.2 million included in 2006 from the wholesale business, which was sold in 2006. Net loss from continuing operations for the year ended December 31, 2007 was $(17.3) million or $(2.81) per fully diluted share, compared to a net loss from continuing operations of $(23.7) million, or ($3.94) per fully diluted share for the year ended December 31, 2006. The 2007 results include depreciation and amortization of $17.7 million compared to $18.1 million in 2006. The decrease in net loss resulted primarily from a $10.8 million reduction in interest expense. The Company reported a loss from discontinued operations, net of tax, of $(6.4) million for the full year 2007, compared to a net loss from discontinued operations, net of tax of, $(5.7) million for the comparable period last year. The increase in loss can be attributed to the winding down of our Construction Division, which was sold in March, 2007 and an increase in losses from our Materials operations on the Island of Sint Maartin/St. Martin. The Company reported a net loss available for common shareholders for the full year ended December 31, 2007 of $(29.4) million, or $(4.77) per fully diluted share, compared to a net loss of $(30.4) million, or ($5.05) per fully diluted share for the full year ended December 31, 2006. Robert C. Farenhem, the Company's President, stated, "We made significant progress integrating our electronic security operations during the fourth quarter. With the sale of our materials operations in the French Antilles in January 2008, we have settled on-going litigation and are closer to completing the transformation of Devcon to -." Conference Call The Company's full year 2007 conference call is scheduled for 10:00 a.m. ET, Wednesday, March 19, 2008. To participate in the call, dial 800-257-7063 for domestic callers and 303-262-2141 for international callers. The call may also be accessed through a live webcast link on the Company's Internet home page, http://www.devcon-security.com/. The webcast will be archived for one month following the call. About Devcon Devcon International's wholly owned subsidiary, Devcon Security (http://www.devcon-security.com/), is a leading provider of installation, monitoring and related electronic security services, currently monitoring more than 140,000 commercial and residential sites in Florida, New York City and Staten Island. Since February, 2005, Devcon has made 3 significant acquisitions of full-service electronic security services companies with significant concentrations throughout Florida and the New York Metropolitan region. Currently, Devcon Security Services Corp. is the second largest security monitoring and alarm company in Florida and the eleventh largest in the U.S. Forward-Looking Statements This press release may contain statements, which are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements contain projections of Devcon's future results of operations, financial position or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. You should not rely on forward-looking statements because Devcon's actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to: general economic and business conditions; our business strategy for expanding our presence in our industry; anticipated trends in our financial condition and results of operation; the impact of competition and technology change; existing and future regulations effecting our business, and other risks and uncertainties discussed under the heading "Item 1A - Risk Factors" in Devcon's Annual Report on Form 10-K for the period ended December 31, 2006 as filed with the Securities and Exchange Commission, and other reports Devcon files from time to time with the Securities and Exchange Commission. Devcon does not intend to and undertakes no duty to update the information contained in this press release. -Financial Tables Follow- Devcon International Corp. Consolidated Statement of Operations (Amounts in thousands, except share and per share data) For the year ended December 31 2007 2006 Revenue $55,792 $53,987 Cost of Sales (exclusive of amortization and depreciation in 2007) 24,447 24,627 Gross profit 31,345 29,360 Operating expenses Selling 4,844 4,969 General & administrative 20,974 21,751 Severance and retirement 161 734 Depreciation and amortization 17,668 18,103 Operating loss (12,302) (16,197) Other income (expense) Interest expense (10,572) (21,361) Interest income 137 208 Change in fair value of derivative instrument 3,019 4,603 Loss on early extinguishment of debt - - Other 48 (23) Loss from continuing operations before income taxes (19,670) (32,770) Income tax (benefit) provision (2,369) (9,040) Net loss from continuing operations (17,301) (23,730) (Loss) from discontinued operations, net of income tax (benefit) expense of $(726), and $1,443, for the years ended December 31, 2007 and 2006, respectively (6,398) (5,672) Net loss $(23,699) $(29,402) Preferred dividends (4,341) (890) Accretion of Preferred Stock (1,310) (125) Net loss available for common stockholders $(29,350) $(30,417) Basic (loss) per share: Continuing operations $(2.81) $(3.94) Discontinued operations $(1.04) $(0.94) Net loss $(3.85) $(4.88) Net loss available for common stockholders $(4.77) $(5.05) Diluted (loss) per share: Continuing operations $(2.81) $(3.94) Discontinued operations $(1.04) $(0.94) Net loss $(3.85) $(4.88) Net loss available for common stockholders $(4.77) $(5.05) Weighted average number of shares outstanding: Basic 6,156,898 6,025,777 Diluted 6,156,898 6,025,777 Devcon International Corp. Condensed Balance Sheet (Amounts in thousands) For the year ended December 31 2007 2006 Working Capital $2,203 $7,735 Total Assets $179,785 $212,897 Long-term debt, excluding current portion $94,440 $89,202 Stockholder's Equity $5,205 $34,423 DATASOURCE: Devcon International Corp. CONTACT: Investors: Marilynn Meek, Financial Relations Board, +1-212-827-3773, , for Devcon International Corp. Web site: http://www.devcon-security.com/

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