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, 2012. For the third quarter, UPG reported net income of $43,000, or $0.01 per diluted share, on net sales of $22.1 million, compared with net income of $183,000, or $0.04 per diluted share, on net sales of $24.7 million in the third quarter of 2011.
“Our results for the third quarter reflect the continued impact of a number of factors that have affected our results over the past year, including the supply disruptions with a number of our Chinese suppliers,” stated Ian Edmonds, UPG’s President and Chief Executive Officer. “During the third quarter, we saw growth in sales at PTI as well as sales to wholesale customers, but this growth was not sufficient to offset decreased sales to ADT and its authorized dealers as well as customers in the retail channel. With lower net sales, we saw reduced profitability in the quarter.”
Third Quarter and Nine Month Results
Net sales for the third quarter fell 10.4 percent, to $22.1 million, from $24.7 million in the third quarter of 2011. The decrease in net sales in the quarter was primarily the result of a decrease in net sales to retail channels and ADT and its authorized dealers which was offset by an increase of PTI sales.
Gross profit decreased to $3.6 million in the quarter, compared with $4.8 million in the third quarter of 2011, due to the lower sales levels and increase in material and labor costs. Operating expenses decreased to $3.3 million in the third quarter of 2012, from $4.2 million in the third quarter of 2011. The decrease in operating expenses included decreased facilities costs, personnel expenses and legal expenses.