Ultralife Corporation Reports Second Quarter Results

NEWARK, N.Y., July 28, 2016 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ:ULBI) reported operating income of $0.5 million on revenue of $20.4 million for the second quarter ended June 26, 2016.  For the second quarter of 2015, the Company reported operating income of $0.8 million on revenue of $19.0 million. 

"Through solid execution of our business model parameters including close control of spending in a challenging economic environment, we delivered profitability for the seventh consecutive quarter and generated positive cash flow," said Michael D. Popielec, Ultralife's President and Chief Executive Officer.  "Despite some economic uncertainties weighing on customer's buying decisions, we still have our sights set on delivering profitable growth for 2016.  Our gross margins and liquidity give us the flexibility to continue to invest in new product development in support of our long-term global diversification strategy."

Second Quarter 2016 Financial Results

Revenue was $20.4 million, an increase of $1.4 million, or 7%, compared to $19.0 million for the second quarter of 2015 reflecting the addition of Accutronics and higher Communications Systems sales.  Battery & Energy Products sales were $15.8 million compared to $16.0 million last year, reflecting the contribution of Accutronics sales which offset the revenue reduction resulting from a large 9-Volt and large metering and toll pass battery orders in the second quarter of 2015.  Communications Systems sales grew 55% to $4.6 million compared to $3.0 million for the same period last year as a result of shipments under the Vehicle Installed Power Enhanced Riflemen Appliqué ("VIPER") Program.

Gross profit was $5.9 million, or 29.0% of revenue, compared to $5.9 million, or 30.9% of revenue, for the same quarter a year ago.  Battery & Energy Products' gross margin was 29.6%, compared to 28.4% last year, an increase of 120 basis points reflecting favorable product mix including the contribution of Accutronics.  Communications Systems' gross margin declined to 26.8% compared to 44.2% for the prior year due to sales mix.        

Operating expenses were $5.4 million compared to $5.0 million last year reflecting the addition of Accutronics and increased spending on new product development in response to a higher level of proposal activity, partially offset by tight control over discretionary spending.  Operating expenses were 26.5% of revenue compared to 26.6% of revenue for the year earlier period.  

Operating income was $0.5 million compared to $0.8 million last year. 

Net income was $0.4 million, or $0.03 per share, compared to a net income of $0.8 million, or $0.05 per share, for the second quarter of 2015.   

Share Repurchase Program

The Company's Share Repurchase Program expired on June 2, 2016.  From the inception of the Program on May 1, 2014 through its expiration, the Company repurchased 2,592,095 shares for an aggregate cost of $10.5 million.

About Ultralife Corporation

Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government, defense and commercial customers across the globe.

Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorporation.com.

Conference Call Information

Ultralife will hold its second quarter earnings conference call today at 10:00 AM ET. To participate in the live call, please dial (800) 915-4836 at least ten minutes before the scheduled start time, identify yourself and ask for the Ultralife call. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location.

This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include:  potential reductions in U.S. military spending, uncertain global economic conditions and acceptance of our new products on a global basis. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances.  Further information on these factors and other factors that could affect Ultralife's financial results is included in Ultralife's Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K. 

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited)
       
  ASSETS
  June 26,   December 31,  
    2016       2015    
Current Assets:        
Cash and Cash Equivalents $   3,262     $   14,533    
Trade Accounts Receivable, Net   13,735       11,430    
Inventories   26,553       23,814    
Prepaid Expenses and Other Current Assets   2,440       2,169    
Total Current Assets   45,990       51,946    
         
Property, Equipment and Improvements, Net   8,858       9,038    
Goodwill, Intangibles and Other Assets   28,450       20,538    
Total Assets $   83,298     $   81,522    
         
  LIABILITIES AND SHAREHOLDERS' EQUITY
       
Current Liabilities:      
Accounts Payable $   6,654     $   6,494    
Accrued Compensation and Related Benefits   1,818       2,377    
Accrued Expenses and Other Current Liabilities   2,570       1,976    
Current Portion of Debt   831       -    
Total Current Liabilities   11,873       10,847    
Deferred Income Taxes and Other Non-Current Liabilities   5,569       4,659    
Total Liabilities   17,442       15,506    
         
Shareholders' Equity:        
Common Stock   1,920       1,918    
Capital in Excess of Par Value   177,430         177,007    
Accumulated Deficit   (93,306 )     (94,051 )  
Accumulated Other Comprehensive Loss   (1,608 )     (907 )  
Treasury Stock   (18,415 )     (17,808 )  
Total Ultralife Equity   66,021         66,159    
Non-Controlling Interest   (165 )     (143 )  
Total Shareholders' Equity   65,856       66,016    
         
Total Liabilities and Shareholders' Equity $ 83,298     $  81,522    

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
               
  Three Month Periods Ended   Six Month Periods Ended
  June 26,   June 28,   June 26,   June 28,
    2016       2015       2016       2015  
Revenues:              
Battery & Energy Products $ 15,759     $ 15,972     $ 32,199     $ 32,248  
Communication Systems   4,612       2,983       9,005       5,884  
Total Revenues 20,371     18,955     $ 41,204     $ 38,132  
               
Cost of Products Sold:              
Battery & Energy Products   11,095       11,430       22,318       22,922  
Communication Systems   3,376       1,666       6,581       3,344  
Total Cost of Products Sold   14,471       13,096       28,899       26,266  
               
Gross Profit   5,900       5,859       12,305       11,866  
               
Operating Expenses:              
Research and Development   1,425       1,334       3,081       2,693  
Selling, General and Administrative   3,976       3,708       8,243       7,534  
Total Operating Expenses   5,401       5,042       11,324       10,227  
               
Operating Income   499       817       981       1,639  
               
Other Income (Expense)   (24 )     28       (137 )     (160 )
Income Before Income Taxes   475       845       844       1,479   
               
Income Tax Provision   33       71       121       182  
               
Net Income   442       774       723       1,297  
               
Net Loss Attributable to Non-Controlling Interest   4       14       22       24  
               
Net Income Attributable to Ultralife Corporation $ 446     $ 788     $ 745     $ 1,321  
               
               
Net Income Per Share Attributable to Ultralife Common     Shareholders - Basic $ .03     $ .05     $ .05     $ .08  
               
Net Income Per Share Attributable to Ultralife Common     Shareholders - Diluted $ .03     $ .05     $ .05     $ .08  
               
Weighted Average Shares Outstanding - Basic   15,258       16,557       15,290       16,945  
               
Weighted Average Shares Outstanding - Diluted   15,419       16,597       15,545       16,977  

Company Contact:		Ultralife Corporation		Philip A. Fain 		(315) 210-6110		pfain@ulbi.com		Investor Relations Contact:LHA Jody Burfening(212) 838-3777jburfening@lhai.com

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