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The LGL Group, Inc. (NYSE MKT: LGL) (the “Company”), announced results for the full year and quarter ended December 31, 2013.
2013 Full-Year and Q4 Financial Results
Total revenues for the year ended December 31, 2013, were $26.2 million, a decrease of 11.8% from revenues of $29.7 million in 2012. Net loss for the year ended December 31, 2013, was ($8.2) million, compared to ($1.3) million in 2012. Basic and diluted loss per share was ($3.17) for the year ended December 31, 2013, compared with ($0.51) for the year ended December 31, 2012. The decrease in 2013 revenues was primarily due to reduced demand and price compression in the Internet Communications Technology (“ICT”) market segment, and to a lesser degree, reduced demand from existing customers within the Aerospace and Defense (“Aero/Defense”) market segment. The competitive environment of the frequency control industry, as well as effects of the U.S. budget sequestration and related government spending uncertainty, continue to impact our business.
The increase in net loss of $6.9 million for 2013 can be attributed primarily to an increase of $5.7 million in the valuation allowance against the Company’s deferred tax assets, a restructuring charge of $0.6 million related to the realignment of our customer support operations to gain efficiencies, and the reduction in revenues, partially offset by reductions in operating expenses. The restructuring plan was substantially completed in Q4 2013.
Adjusted pre-tax loss, which excludes the impact of the restructuring charge and the increase in the valuation allowance against the Company’s deferred tax assets, was ($3.6) million, or ($1.40) per share, for the year ended December 31, 2013, compared to ($1.8) million, or ($0.71) per share, for the same period in 2012. Adjusted pre-tax loss includes stock-based compensation expense of $0.6 million for the year ended December 31, 2013, compared to $0.4 million for the year ended December 31, 2012.