Universal Power Group, Inc. (NYSE Amex: UPG), a Texas-based distributor and supplier of batteries and related power accessories and a third-party logistics provider, today announced financial results for the third quarter and nine months ended Sept. 30, 2010. The third quarter was the Company’s second consecutive quarter of record earnings.
For the third quarter, UPG reported net income of $0.9 million, or $0.18 per share, on net sales of $28.3 million. These results compare with net income of $0.6 million, or $0.12 per share, on net sales of $27.5 million in the third quarter of 2009. For the first nine months of 2010, UPG reported net income of $2.3 million, or $0.45 per share, on net sales of $82.7 million, compared with a net loss of $0.5 million, or $0.10 per share, on net sales of $83.1 million in the comparable period of 2009.
“We are pleased with our quarterly results and the continued growth in our bottom line to record levels,” stated UPG’s President and Chief Executive Officer, Ian Edmonds. “The earnings momentum we have achieved serves as a foundation for UPG as we explore additional initiatives to drive long-term growth and enhance shareholder value. These efforts include expanding of our core business into new geographic markets and continuing to pursue of opportunities with new products and customers.”
Third Quarter and Nine Month Overview
Net sales for the third quarter rose 2.9 percent, to $28.3 million, from $27.5 million in the third quarter of 2009. Net sales of batteries and related power accessories to customers other than ADT Security Services (formerly Broadview Security) and its authorized dealers grew 40.5 percent, to $20.4 million in the third quarter of 2010, compared to $14.5 million for the third quarter of 2009. Net sales to ADT Security Services and its authorized dealers in the third quarter of 2010 were $7.9 million, a decrease of 39.2 percent from $13.0 million in the same quarter of 2009. Net sales to ADT Security Services and its authorized dealers accounted for 27.9 percent of total net sales in the third quarter of 2010, compared to 47.2 percent of total net sales in the second quarter of 2009.