TOLLAND, Conn., June 21, 2011 /PRNewswire/ -- Gerber
Scientific, Inc. (NYSE: GRB) today reported revenue and
earnings results for its fiscal fourth quarter and year ended
April 30, 2011.
Summary of Results from Continuing Operations for FY 2011
Fourth Quarter versus FY 2010 Fourth Quarter
- Reported revenue increased 16.4% to $126.7 million from $108.8
million. The effects of favorable currency exchange
increased revenue by approximately $5.4
million, or 5.0%;
- Gross profit was adversely affected by $2.9 million in wind down charges related to the
discontinuance of the Company's inkjet printer line. Excluding
these charges, gross profit was $41.3
million, or 32.3% of sales versus $31.8 million, or 29.2% of sales. Reported gross
profit and margin was $38.4 million,
or 30.3% of sales. Gross profit and margin in the current quarter
benefitted from improved sales volume, cost savings actions and
$1.7 million of favorable currency
exchange, which was moderated by the wind down costs;
- Selling, general and administrative (SG&A) expenses were
$32.3 million, or 25.5% of sales,
compared with $26.3 million, or 24.2%
of sales. The increase in SG&A was due to the restoration of
$0.8 million in temporary wage
reductions that were in place a year ago, incentive compensation of
$1.6 million, an increase of
$1.3 million in commissions due to
volume and channel mix and $1.0
million in currency exchange rate fluctuations;
- Operating income excluding wind down costs and goodwill
impairment associated with the Company's inkjet printer line and
restructuring and other expenses was $4.7
million, or 3.7% of sales, compared to $1.5 million or 1.4% of sales. The reported
operating loss was $9.8 million, or
$10.5 million on a currency adjusted
basis;
- Loss from continuing operations was $9.3
million, or $0.37 per diluted
share, compared to a loss of $0.4
million, or $0.02 per diluted
share last year in the fourth quarter. Net loss for the current
quarter was $10.8 million, or
$0.43 per diluted share, compared
with a net loss of $1.6 million, or
$0.06 per diluted share last
year;
- Net cash flows from operations, less capital expenditures, was
$1.1 million compared with
$4.4 million in the prior year, due
principally to a decrease in inventory turns;
- Total outstanding debt was reduced by $23.9 million in fiscal 2011 to $21.1 million.
"I am pleased with both our financial results and our strategic
progress in the fourth quarter, as well as for fiscal 2011," said
Marc Giles, Gerber Scientific
President and Chief Executive Officer. "Our Company's strong
year-over-year performance continued during the fourth quarter with
impressive gains in sales, gross margin and operating earnings,
excluding one-time charges. On the revenue front, we posted the
highest year-over-year quarterly growth, up 16%, and sequential
quarterly growth, up 13%, in more than two years. Demand was
broad-based with gains across every revenue category and across all
our business lines, with the exception of our digital inkjet
printer line. On the strategic front, we continued to narrow our
focus on our key business lines with the announced wind down of our
inkjet printer line."
Outlook and Guidance
"With the strong performance posted this past quarter and a
stable order backlog at year end we are raising our forecast for
fiscal 2012 revenue growth from a range of 3% to 5% to a range of
5% to 7% and we are reaffirming our forecast for operating margins,
excluding restructuring and other charges, to range between 5% and
7%," said Mr. Giles. This forecast is in line with our stated
objective of achieving and sustaining a 10% operating margin by
fiscal 2013."
Quarterly Conference Call
Gerber Scientific's quarterly earnings conference is scheduled
for today at 10:00 a.m. ET.
Please dial 719.325.2417 and provide the operator with
confirmation code 2389891 to participate in the call in a
listen only mode. The Company will also provide a live webcast of
the call which may be accessed through the Company's website
(www.gerberscientific.com). A webcast replay of the call will
also be available for ninety days, as well as a conference call
transcription, which will be available three business days after
the conference call, on the Company's website under the Investor
Relations tab.
About Gerber Scientific, Inc.
Gerber Scientific, Inc. (http://www.gerberscientific.com) is a
leading international supplier of sophisticated automated
manufacturing systems for the sign making, specialty graphics,
packaging, apparel and industrial industries. Headquartered
in Tolland, Connecticut, the
Company operates through three primary businesses: Gerber
Scientific Products, Spandex and Gerber Technology.
Forward-looking Statements
Any statements in this news release not relating to historical
matters are "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. The forward-looking statements
contained in this news release involve risks and uncertainties
regarding the Company's expected financial condition, results of
operations and cash flows. For information identifying other
important economic, political, regulatory, legal, technological,
competitive and other uncertainties, readers are referred to the
Company's filings with the Securities and Exchange Commission,
including but not limited to, the information included in Gerber
Scientific's Annual Report on Form 10-K for the fiscal year ended
April 30, 2010, which outlines
certain important risks regarding the Company's forward-looking
statements, as well as information included in subsequently filed
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
These risks include, but are not limited to, delays in the
Company's new product development and commercialization, intense
competition in markets for each of the Company's operating
segments, rapid technological advances, availability and cost of
raw materials, adverse economic and credit market conditions,
volatility in foreign currency exchange rates and fluctuations in
interest rates. Actual future results or events may differ
materially from these forward-looking statements. The
forward-looking statements contained in this release are made as of
the date of this release and the Company expressly disclaims any
obligation to update any of these forward-looking statements,
except as required by law.
|
|
|
GERBER SCIENTIFIC,
INC.
SUMMARY OF
OPERATIONS
(Unaudited)
|
|
|
|
|
For the Fiscal Quarters
Ended April 30,
|
|
|
For the Fiscal Years
Ended April 30,
|
|
|
In thousands, except per share
data
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales
|
|
$
|
111,715
|
|
|
$
|
94,640
|
|
|
$
|
404,152
|
|
|
$
|
353,986
|
|
|
Service
sales
|
|
|
14,984
|
|
|
|
14,184
|
|
|
|
58,369
|
|
|
|
58,281
|
|
|
|
|
|
126,699
|
|
|
|
108,824
|
|
|
|
462,521
|
|
|
|
412,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost
of products sold
|
|
|
78,257
|
|
|
|
67,948
|
|
|
|
281,664
|
|
|
|
256,950
|
|
|
Cost
of services sold
|
|
|
10,071
|
|
|
|
9,077
|
|
|
|
38,094
|
|
|
|
35,016
|
|
|
|
|
|
88,328
|
|
|
|
77,025
|
|
|
|
319,758
|
|
|
|
291,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
38,371
|
|
|
|
31,799
|
|
|
|
142,763
|
|
|
|
120,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
32,275
|
|
|
|
26,283
|
|
|
|
116,680
|
|
|
|
100,146
|
|
|
Research and
development
|
|
|
4,352
|
|
|
|
4,021
|
|
|
|
16,005
|
|
|
|
14,930
|
|
|
Goodwill impairment
|
|
|
5,928
|
|
|
|
---
|
|
|
|
5,928
|
|
|
|
---
|
|
|
Restructuring and other
expenses
|
|
|
5,630
|
|
|
|
1,213
|
|
|
|
8,607
|
|
|
|
3,227
|
|
|
Operating (loss)
income
|
|
|
(9,814)
|
|
|
|
282
|
|
|
|
(4,457)
|
|
|
|
1,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net
|
|
|
123
|
|
|
|
589
|
|
|
|
(155)
|
|
|
|
(719)
|
|
|
Interest expense
|
|
|
(524)
|
|
|
|
(601)
|
|
|
|
(1,798)
|
|
|
|
(2,857)
|
|
|
(Loss) income from continuing
operations
before income
taxes
|
|
|
(10,215)
|
|
|
|
270
|
|
|
|
(6,410)
|
|
|
|
(1,578)
|
|
|
Income tax (benefit)
expense
|
|
|
(947)
|
|
|
|
667
|
|
|
|
257
|
|
|
|
(656)
|
|
|
Loss from continuing operations,
net of taxes
|
|
|
(9,268)
|
|
|
|
(397)
|
|
|
|
(6,667)
|
|
|
|
(922)
|
|
|
Loss from discontinued
operations, net of taxes
|
|
|
(1,493)
|
|
|
|
(1,225)
|
|
|
|
(16,949)
|
|
|
|
(536)
|
|
|
Net loss
|
|
$
|
(10,761)
|
|
|
$
|
(1,622)
|
|
|
$
|
(23,616)
|
|
|
$
|
(1,458)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.37)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.04)
|
|
|
Discontinued
operations
|
|
|
(0.06)
|
|
|
|
(0.05)
|
|
|
|
(0.67)
|
|
|
|
(0.02)
|
|
|
Basic loss per common
share(1)
|
|
$
|
(0.43)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.94)
|
|
|
$
|
(0.06)
|
|
|
Diluted loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$
|
(0.37)
|
|
|
$
|
(0.02)
|
|
|
$
|
(0.27)
|
|
|
$
|
(0.04)
|
|
|
Discontinued
operations
|
|
|
(0.06)
|
|
|
|
(0.05)
|
|
|
|
(0.67)
|
|
|
|
(0.02)
|
|
|
Diluted loss per common
share(1)
|
|
$
|
(0.43)
|
|
|
$
|
(0.06)
|
|
|
$
|
(0.94)
|
|
|
$
|
(0.06)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
25,133
|
|
|
|
25,137
|
|
|
|
25,132
|
|
|
|
24,961
|
|
|
Diluted
|
|
|
25,133
|
|
|
|
25,137
|
|
|
|
25,132
|
|
|
|
24,961
|
|
|
(1) Basic and
diluted loss per share is based on actual calculated values and
totals may not sum due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GERBER SCIENTIFIC,
INC.
SUMMARY SEGMENT
INFORMATION
(Unaudited)
|
|
|
|
|
For the
Fiscal Quarters
Ended April
30,
|
|
|
For the
Fiscal Years
Ended April
30,
|
|
|
In thousands
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Sign Making and Specialty
Graphics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gerber Scientific
Products
|
|
$
|
8,656
|
|
|
$
|
8,875
|
|
|
$
|
37,922
|
|
|
$
|
36,032
|
|
|
Spandex
|
|
|
63,772
|
|
|
|
54,390
|
|
|
|
228,063
|
|
|
|
211,981
|
|
|
Sign Making and Specialty
Graphics
|
|
|
72,428
|
|
|
|
63,265
|
|
|
|
265,985
|
|
|
|
248,013
|
|
|
Apparel and
Industrial
|
|
|
54,271
|
|
|
|
45,559
|
|
|
|
196,546
|
|
|
|
165,226
|
|
|
Intersegment revenue
elimination
|
|
|
---
|
|
|
|
---
|
|
|
|
(10)
|
|
|
|
(972)
|
|
|
Consolidated
revenue
|
|
$
|
126,699
|
|
|
$
|
108,824
|
|
|
$
|
462,521
|
|
|
$
|
412,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sign Making and Specialty
Graphics:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gerber Scientific
Products
|
|
$
|
(10,400)
|
|
|
$
|
(1,496)
|
|
|
$
|
(13,520)
|
|
|
$
|
(5,486)
|
|
|
Spandex
|
|
|
5,870
|
|
|
|
3,231
|
|
|
|
18,998
|
|
|
|
12,461
|
|
|
Sign Making and Specialty
Graphics
|
|
|
(4,530)
|
|
|
|
1,735
|
|
|
|
5,478
|
|
|
|
6,975
|
|
|
Apparel and
Industrial
|
|
|
2,964
|
|
|
|
4,808
|
|
|
|
17,936
|
|
|
|
18,289
|
|
|
Unallocated
|
|
|
(642)
|
|
|
|
(1,161)
|
|
|
|
(2,577)
|
|
|
|
(3,142)
|
|
|
Segment
operating (loss) income
|
|
|
(2,208)
|
|
|
|
5,382
|
|
|
|
20,837
|
|
|
|
22,122
|
|
|
Corporate operating
expenses
|
|
|
(2,346)
|
|
|
|
(2,405)
|
|
|
|
(8,873)
|
|
|
|
(9,315)
|
|
|
Corporate unallocated
company-wide expenses
|
|
|
(5,260)
|
|
|
|
(2,695)
|
|
|
|
(16,421)
|
|
|
|
(10,809)
|
|
|
Consolidated
operating (loss) income
|
|
$
|
(9,814)
|
|
|
$
|
282
|
|
|
$
|
(4,457)
|
|
|
$
|
1,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated segment expenses included overhead costs remaining
after the sale of Gerber Coburn.
Corporate unallocated company-wide expenses included
insurance costs, pension, stock-based compensation, bonus costs and
other expenses.
|
|
GERBER SCIENTIFIC,
INC.
SELECTED FINANCIAL DATA –
REVENUE BY PRODUCT TYPE
(Unaudited)
|
|
|
|
|
For the
Fiscal Quarters
Ended April
30,
|
|
|
For the
Fiscal Years
Ended April
30,
|
|
|
In thousands
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Equipment and software
revenue
|
|
$
|
37,958
|
|
|
$
|
28,741
|
|
|
$
|
135,105
|
|
|
$
|
104,011
|
|
|
Aftermarket supplies
revenue
|
|
|
73,757
|
|
|
|
65,899
|
|
|
|
269,047
|
|
|
|
249,975
|
|
|
Service revenue
|
|
|
14,984
|
|
|
|
14,184
|
|
|
|
58,369
|
|
|
|
58,281
|
|
|
Consolidated
revenue
|
|
$
|
126,699
|
|
|
$
|
108,824
|
|
|
$
|
462,521
|
|
|
$
|
412,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GERBER SCIENTIFIC,
INC.
SELECTED FINANCIAL DATA – KEY
OPERATING RATIOS
(Unaudited)
|
|
|
|
|
For the Fiscal Quarters
Ended April 30,
|
|
|
For the Fiscal Years
Ended April 30,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Gross margin
|
|
|
30.3
|
%
|
|
|
29.2
|
%
|
|
|
30.9
|
%
|
|
|
29.2
|
%
|
|
Operating margin
|
|
|
(7.7)
|
%
|
|
|
0.3
|
%
|
|
|
(1.0)
|
%
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GERBER SCIENTIFIC,
INC.
SELECTED FINANCIAL DATA –
FINANCIAL POSITION
(Unaudited)
|
|
|
In thousands, except ratio
data
|
|
April
30,
2011
|
|
|
April
30,
2010
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
10,916
|
|
|
$
|
11,305
|
|
|
Working capital
|
|
$
|
68,041
|
|
|
$
|
76,549
|
|
|
Total debt
|
|
$
|
21,110
|
|
|
$
|
45,000
|
|
|
Net debt (total debt less cash
and cash equivalents)
|
|
$
|
10,194
|
|
|
$
|
33,695
|
|
|
Shareholders' equity
|
|
$
|
148,221
|
|
|
$
|
158,206
|
|
|
Total capital (net debt plus
shareholders' equity)
|
|
$
|
158,415
|
|
|
$
|
191,901
|
|
|
Current ratio
|
|
1.69
|
|
|
1.85
|
|
|
Net debt-to-total capital
ratio
|
|
|
6.4
|
%
|
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GERBER SCIENTIFIC,
INC.
SELECTED FINANCIAL DATA – CASH
FLOWS
(Unaudited)
|
|
|
|
|
For the
Fiscal Quarters
Ended April
30,
|
|
|
For the
Fiscal Years
Ended April
30,
|
|
|
In thousands
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating
activities
|
|
$
|
2,901
|
|
|
$
|
5,618
|
|
|
$
|
14,696
|
|
|
$
|
25,096
|
|
|
Net cash (used for) provided by
investing activities
|
|
$
|
(2,099)
|
|
|
$
|
(764)
|
|
|
$
|
13,648
|
|
|
$
|
4,535
|
|
|
Net cash (used for) provided by
financing activities
|
|
$
|
(568)
|
|
|
$
|
(716)
|
|
|
$
|
(26,876)
|
|
|
$
|
(28,972)
|
|
|
Depreciation and
amortization
|
|
$
|
1,835
|
|
|
$
|
2,202
|
|
|
$
|
7,673
|
|
|
$
|
9,452
|
|
|
Capital expenditures
|
|
$
|
1,762
|
|
|
$
|
1,258
|
|
|
$
|
5,384
|
|
|
$
|
4,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GERBER SCIENTIFIC,
INC.
SELECTED FINANCIAL DATA –
REVENUE BY GEOGRAPHIC LOCATION
(Unaudited)
|
|
|
|
For the
Fiscal Quarters
Ended April
30,
|
|
|
For the
Fiscal Year
Ended April
30,
|
|
|
In thousands
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
North America
|
|
$
|
33,252
|
|
|
$
|
32,423
|
|
|
$
|
124,161
|
|
|
$
|
109,048
|
|
|
Europe
|
|
|
65,698
|
|
|
|
52,622
|
|
|
|
227,822
|
|
|
|
210,743
|
|
|
Rest of world
|
|
|
27,749
|
|
|
|
23,779
|
|
|
|
110,538
|
|
|
|
92,476
|
|
|
Consolidated
revenue
|
|
$
|
126,699
|
|
|
$
|
108,824
|
|
|
$
|
462,521
|
|
|
$
|
412,267
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Gerber Scientific, Inc.