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 results for the second quarter ended June 30, 2011.
For the second quarter, UPG reported net income of $0.1 million, or $0.02 per diluted share, on net sales of $21.7 million, compared with net income of $0.8 million, or $0.17 per diluted share, on net sales of $28.4 million in the second quarter of 2010.
“Our results for the second quarter reflect a number of challenges that affected our financial results,” stated Ian Edmonds, UPG’s President and Chief Executive Officer. “Despite these factors, we remain focused on driving growth in all parts of our business, and we are making progress through diversification initiatives, including our recent acquisition of Progressive Technologies.”
Second Quarter and Six Month Results
Net sales for the second quarter fell 23.7 percent, to $21.7 million, from $28.4 million in the second quarter of 2010. Net sales of batteries and related power accessories to customers other than ADT Security Services and its authorized dealers grew 14.1 percent, to $20.2 million in the second quarter of 2011, compared to $17.7 million for the second quarter of 2010.
Net sales to ADT Security Services and its authorized dealers in the second quarter of 2011 were $1.5 million, a decrease of approximately 86.1 percent from $10.7 million in the same quarter of 2010. This decline was due to the integration of Broadview Security, which was acquired by Tyco International in May 2010, into ADT Security Services.
Gross profit decreased to $4.4 million in the quarter, compared with $5.1 million in the second quarter of 2010, due mainly to the lower sales levels. Operating expenses increased to $4.0 million in the second quarter of 2011 from $3.7 million in the second quarter of 2010. The increase in operating expenses included $365,000 in expenses attributable to the acquisition of Progressive Technologies (PTI) on April 20, 2011, including $120,000 in closing costs.