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BRS Announces Preliminary Fiscal 2008 Results
(Marketwire Via Acquire Media NewsEdge) SOUTH ST. PAUL, MN, December 31 / MARKET WIRE/ --
Ballistic Recovery Systems, Inc.
(PINKSHEETS: BRSI) announced today preliminary unaudited financial results
for its fiscal year ended September 30, 2008.
As indicated below, the Company will not file its Annual Report on Form
10-K for the fiscal year ended September 30, 2008.
Larry E. Williams, President and Chief Executive Officer, said, "We are
pleased with our fourth quarter and full year performance as well as our
ability to achieve consistent growth in revenue. During these extremely
challenging market conditions, we are focused on returning to positive
EBITDA and operating income and saw significant improvement in FY08 over
FY07. We continued to benefit from ongoing market expansion efforts and the
addition of new lines of business, as we diversify our revenue base. Labor
and operating expenses reflected continuing improvement."
During the last two weeks of the 2008 fiscal year, the Company's largest
customer, Cirrus Design, did not take any deliveries of BRS units,
contributing to an overall reduction in aviation sales for FY08 as compared
to FY07. During the first quarter of 2009 the Company delivered 64 units
to Cirrus compared to 184 during the same period in Fiscal 2008, or down
65%. In response to the overall market slowdown, the Company announced
significant workforce reductions on November 21, 2008.
Net revenue for the 2008 fiscal year increased 10.9 percent, or $1,025,088,
to $10,427,439, compared to $9,402,351 in the prior year. Revenue growth
reflected an increase primarily through the safety products line of
business through Advanced Tactical Fabrication. Without the Advanced
Tactical Fabrication business, net revenue for the Company's remaining
segments (general aviation and recreational/sport) would have declined
0.5%.
Operating loss for the year ended September 30, 2008 was ($986,267)
compared to ($1,675,729) for the same period last year.
Fiscal 2008 net loss was ($571,178) compared to net loss of ($1,437,123)
for Fiscal 2007. The decrease from the prior-year period is primarily
attributable to improvement in gross operating margin from 16.0% in fiscal
2007 to 25.0% in Fiscal 2008 as well as improvement in sales, general and
administrative expenses.
BALLISTIC RECOVERY SYSTEMS INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
PRELIMINARY
September September
30, 2008 30, 2007
Current assets:
Cash and cash equivalents 71,837 914,523
Accounts receivable 728,741 1,317,113
Inventories 2,242,861 1,788,266
Deferred tax asset -- current portion 80,000 85,000
Note receivable 151,591 56,826
Prepaid expenses 255,664 286,130
Total current assets 3,530,694 4,447,858
Furniture, fixtures and leasehold improvements 5,408,686 1,308,235
Less accumulated depreciation and amortization (911,912) (662,032)
Furniture, fixtures and leasehold improvements
- net 4,496,774 646,203
Other assets:
Patents, net of accumulated amortization of
$12,966 and $11,814, respectively 50,476 600
Goodwill 173,772 -
Deferred tax asset -- net of current portion 3,308,732 1,416,000
Long-term prepaid expenses 33,842
Covenants not to compete 126,087 16,970
Total other assets 3,659,067 1,467,412
Total assets 11,686,535 6,561,473
Liabilities And Shareholders? Equity
Current liabilities:
Line of credit -- bank 786,230 -
Accounts payable 1,637,214 776,251
Customer deposits 127,861 104,410
Accrued payroll 52,304 75,939
Other accrued liabilities 380,301 294,726
Total current liabilities 2,983,911 1,251,326
Long-term debt, less current portion 2,131,219 -
Total Liabilities 5,115,130 1,251,326
Shareholders? equity:
Common stock 113,309 113,048
Additional paid-in capital 10,263,937 10,262,357
Accumulated deficit (5,073,997) (5,065,258)
Total shareholders? equity 5,303,249 5,310,147
Total liabilities and shareholders? equity 11,686,535 6,561,473
BALLISTIC RECOVERY SYSTEMS INC.
CONSOLIDATED STATEMENT OF OPERATIONS
For The Fiscal Year Ended September 30, 2008 and 2007
(unaudited)
FY08 TOTAL FY07 Change
----------- ----------- ---------
Sales $10,427,439 $ 9,402,351 10.9%
Costs of Sales $ 7,820,138 $ 7,901,032 -1.0%
GOM $ 2,607,301 $ 1,501,319 73.7%
GOM (%) 25.0% 16.0% 56.6%
Sales, general and administrative $ 2,875,547 $ 2,620,734 9.7%
Research and Development $ 718,020 $ 556,314 29.1%
$ 3,593,568 $ 3,177,048 13.1%
(Loss) from operations $ (986,267) $(1,675,729) -41.1%
Other income and (expense)
Interest Expense $ (41,706) $ (35,440) 17.7%
Other income and (expense) $ 49,269 $ 33,235 48.2%
Intangible Amortization $ 79,211 $ 18,253 334.0%
Impairment of Goodwill $ 103,774 -100.0%
(Loss) before taxes $ (899,493) $(1,555,907) -42.2%
Tax (Benefit) $ (328,315) $ (118,784) 176.4%
Net Income $ (571,178) $(1,437,123) -60.3%
BRS also announced today that it intends to file a Form 15 with the
Securities and Exchange Commission ("SEC") to voluntarily deregister its
common stock under the Securities Exchange Act of 1934. BRS expects the
Form 15 would become effective within 90 days from filing. As a result of
this filing, BRS's obligation to file certain reports and forms with the
SEC, including Forms 10-K, 10-Q and 8-K, would be suspended.
The Company expects, but cannot guarantee, that its common stock will
continue to be quoted on the Pink Sheets after it is deregistered. The Pink
Sheets is a centralized quotation service that publishes market maker
quotes for securities primarily through its website, www.pinksheets.com.
The Form 15 filing was approved at a meeting of the Company's Board of
Directors on December 11, 2008, after consultation with management and
corporate counsel and deliberation regarding the advantages and
disadvantages of continuing SEC registration.
In commenting on the decision to deregister, Larry E. Williams, the
Company's Chief Executive Officer, stated, "After carefully considering the
advantages and disadvantages of continued registration, including the high
financial costs associated with preparing and filing periodic reports and
other filings with the SEC in comparison to BRS's size; the costs
associated with the requirements of the Sarbanes-Oxley Act of 2002; the
demands placed on management to comply with SEC reporting obligations,
which detract from time available for overseeing the operation of BRS; the
limited public trading volume of BRS's common stock; and the concentrated
nature of BRS's public float, the Board of Directors of BRS believes that
deregistering is currently in the best interests of the Company and is
anticipated to help build long term stockholder value. This action should
result in accounting, legal and administrative expense reductions and allow
BRS's management to focus its attention, efforts and resources on BRS's
operations and revenue growth. At some point in the future we hope to
reregister our common stock as a stronger, more diverse company."
BRS intends to continue to issue press releases and make news announcements
of important events, such as quarterly financial results, and post them on
its website, which may be found at www.brsparachutes.com.
About Ballistic Recovery Systems and Advanced Tactical Fabrication
Based in South Saint Paul, Minnesota, BRS designs, manufactures, and
distributes whole-aircraft emergency parachute systems for general aviation
and recreational aircraft. ATF (or Advanced Tactical Fabrication), a
wholly-owned subsidiary of BRS, designs and manufactures reflective and
load-bearing safety vests, and is a leader in the safety apparel and "cut &
sew" industry. Since 1981, BRS has delivered more than 29,000 parachute
systems to aircraft owners worldwide, including over 3,500 systems on
FAA-certificated aircraft such as the Cirrus Design SR20 and SR22
manufactured in Duluth, Minnesota.
This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements
are often, but not always, made through the use of words such as
"anticipates," "expects," "plans," "believes," "intends," and other similar
words or phrases. These statements are only predictions, and are based on
current information and expectations. Such statements involve a number of
risks and uncertainties, including market fluctuations, pricing,
procurement, manufacturing efficiencies, operating risks, and other risks
that could cause the actual results to differ materially from those
projected. For more information, review the Company's previous filings
with the Securities and Exchange Commission. All forward-looking
statements are qualified in their entirety by this cautionary statement,
and BRS undertakes no obligation to revise or update this press release to
reflect events or circumstances after the date hereof.
CONTACT:
Gary D. MooreEmail Contact
Larry E. WilliamsEmail Contact
Voice: 651-457-7491
FAX: 651-457-8651
Copyright ? 2008 Marketwire
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