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 fourth quarter and full year ended Dec. 31, 2011.
Reflecting ongoing challenges in sourcing which have affected the entire industry, UPG reported a net loss of $0.5 million, or $0.10 per diluted share for the fourth quarter, on net sales of $21.0 million, compared with net income of $0.6 million, or $0.13 per diluted share, on net sales of $24.5 million in the fourth quarter of 2010. For the full year, UPG reported net income of $0.2 million, or $0.04 per diluted share, on net sales of $89.3 million, compared with net income of $2.9 million, or $0.58 per diluted share, on net sales of $107.3 million in 2010.
“In 2011, UPG faced major challenges in our supply chain as factories representing more than 70 percent of China’s sealed lead acid battery factories were closed by the Chinese government over safety and environmental concerns. These closures in turn caused significant delays in securing adequate supplies for our customers,” stated Ian Edmonds, UPG’s President and Chief Executive Officer. “In addressing these issues, we reacted quickly to work through the worst of the supply chain disruptions. Second, we were able to fundamentally transform our supply base from one dependent on a limited number of production facilities in a single country to one with a breadth of suppliers with multiple locations in multiple countries. This transformation will provide UPG with a much stronger foundation to support our growth strategy over the long term.”
Fourth Quarter and Full Year 2011 Results
Net sales for the fourth quarter fell 14.3 percent, to $21.0 million, from $24.5 million in the fourth quarter of 2010. Net sales of batteries and related power accessories to customers other than ADT Security Services and its authorized dealers fell 22.4 percent, to $15.3 million in the fourth quarter of 2011, compared to $19.7 million for the fourth quarter of 2010. Net sales to ADT Security Services and its authorized dealers in the fourth quarter of 2011 were $5.7 million, an increase of approximately 18.9 percent from $4.8 million in the same quarter of the prior year.