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The LGL Group, Inc. (NYSE MKT: LGL) (the “Company”), announced results for the full year and quarter ended December 31, 2012.
2012 Full-Year and Fourth Quarter Financial Results
Total revenues for the year ended December 31, 2012, were $29,706,000, a decrease of 16.7% from revenues of $35,682,000 in 2011. Net loss for the year ended December 31, 2012, was ($1,320,000), compared with net income of $382,000 in 2011. Basic and diluted loss per share was ($0.51) for the year ended December 31, 2012, compared with earnings per share of $0.15 for the year ended December 31, 2011. The decrease in 2012 revenues was due to reduced demand from existing customers for existing products in the markets we serve, as well as the effects of weakness in the global macroeconomic environment. The noticeable decline began with the natural disaster that affected Japan, and then began to compound in the second half of 2011 with the combined effects of U.S. government spending uncertainty and the budget sequestration, as well as the continuing instability of economies within the Eurozone. The Company believes that these systemic effects may have led to delays in infrastructure spending and reduced levels of macroeconomic growth. The decrease in net income and earnings per share for 2012 is a direct result of the decrease in revenues.
Pre-tax earnings (loss) for the year ended December 31, 2012, was ($1,844,000), compared to $567,000 for the same period in 2011, and pre-tax diluted loss per share was ($0.71) for the year ended December 31, 2012, compared to pre-tax diluted earnings per share of $0.22 for the same period in 2011. Pre-tax earnings (loss) for the year ended December 31, 2012, includes stock-based compensation expense of $428,000, compared to $363,000 for the year ended December 31, 2011.
Greg Anderson, LGL’s President and Chief Executive Officer, said, “We remain in a challenging economic environment that is affecting us and the markets that we serve. However, our position serving clients in the commercial avionics market was a growth area in 2012, which we expect to continue into 2013. We are focusing efforts on research and development that will lead to new products and allow entry into additional segments of the timing and frequency control markets, as well as by carefully managing structural costs to keep us in position to leverage our strong balance sheet as market conditions improve.”