Universal Power Group, Inc. (NYSE MKT: UPG), a Texas-based distributor and supplier of batteries and related power accessories and a third-party logistics provider, today announced significantly improved financial results for the fourth quarter and full year ended December 31, 2012. On a modest 3.8 percent increase in net sales, UPG nearly doubled income from continuing operations for the full year.
For the fourth quarter of 2012, UPG reported a much smaller net loss from continuing operations of $83,000, or $0.02 per diluted share, compared with a net loss from continuing operations of $470,000, or $0.09 per diluted share, in the fourth quarter of 2011. For the full year, UPG reported net income from continuing operations of $701,000, or $0.13 per diluted share, compared to net income from continuing operations of $368,000, or $0.07 per diluted share, in 2011.
“We made significant progress toward achieving our long-term strategic goals in 2012, even as we overcame a number of difficulties in our markets and supply base, resulting in a near doubling of income from continuing operations on a modest increase in net sales,” stated Ian Edmonds, UPG’s President and Chief Executive Officer. “During the year, we worked through significant supply chain issues that affected a number of our China-based suppliers, and which resulted in delays in delivering products to our customers. We were also able to refocus on building our core battery and power accessory business with the sale of Monarch and the continued growth of ProTechnologies (PTI). These accomplishments, combined with the flexibility of our new credit agreement, provide a solid foundation for growth in 2013.”
Fourth Quarter and Full Year 2012 Results
Net sales for the fourth quarter decreased 4.4 percent to $19.9 million from $20.8 million in the fourth quarter of 2011. The slight reduction in net sales in the quarter was primarily the result of a decrease in net sales to ADT and its authorized dealers as well as softer sales in certain retail channels, which was offset by an increase in PTI sales.