The LGL Group, Inc. (NYSE Amex: LGL) (the “Company”), announced results for the full year and quarter ended December 31, 2011.
2011 Full-Year and Fourth Quarter Financial Results
Total revenues for the year ended December 31, 2011, were approximately $35,682,000, a decrease of 23.5% from revenues of $46,656,000 in 2010. Net income for the year ended December 31, 2011 was $382,000, compared with net income of $9,423,000 in 2010. Diluted earnings per share were $0.15 for the year ended December 31, 2011, compared with earnings per share of $4.19 for the year ended December 31, 2010. The decrease in 2011 revenues was due to weakness in the global macroeconomic environment, which led to delays in capital decisions for telecommunications (“Telecom”) infrastructure spending, and the continuing uncertainty related to government budget and spending cycles, which has affected the Military, Instrumentation, Space and Avionics (“MISA”) market segments. The decrease in net income is a direct result of the decrease in revenues, as well as the positive impact to net income and earnings per share for 2010 due to the realization of tax benefits from the Company’s net operating loss carryforwards and the reduction in the valuation allowance against the Company’s deferred tax assets at December 31, 2010.
Pre-tax earnings for the year ended December 31, 2011, was $567,000, compared to $6,478,000 for the same period in 2010, and pre-tax diluted earnings per share was $0.22 for the year ended December 31, 2011, compared to $2.88 for the same period in 2010. The decreases in pre-tax earnings per share were partially attributable to the 14.4% increase in the weighted average number of shares outstanding, which was 2,572,825 for the year ended December 31, 2011, compared to 2,248,180 for the same period in 2011. The increase in the weighted average shares outstanding is due primarily to the additional 350,000 shares sold by the Company in its public offering completed February 2011.