FAIR LAWN, N.J., May 12 /PRNewswire-FirstCall/ -- Henry Bros. Electronics, Inc. (Nasdaq: HBE), a
turnkey provider of technology-based integrated electronic security
solutions, today announced results for the first quarter ended
March 31, 2010.
The Company reported revenue of $12.4
million for the first quarter of 2010, representing a 19%
decrease over revenue of $15.3
million for the same period a year ago. Revenue in the
first quarter of 2010 includes a 59% increase in the Texas market offset by a revenue shortfall
across the company's other U.S. markets as a number of larger
projects included in the company's backlog had scheduled start
dates beginning in the Company's second quarter.
The Company reported net income of $57,387 or $0.01
per diluted share for the first quarter ended March 31, 2010, compared to net income of
$166,122, or $0.03 per diluted share in the comparable period
of 2009. The Company's decrease in net income is principally the
result of reduced revenues.
The Company's backlog as of March 31,
2010 was $30,365,525, compared
to $20,133,794 on March 31, 2009 representing a 51% increase over
the prior year and $28,021,794 at
December 31, 2009 representing an 8%
increase sequentially.
Jim Henry, CEO of Henry Bros. Electronics, commented, "We are
confident that the first quarter of 2010 is the trough in revenue
and net income due to the difficult economic environment we
experienced throughout 2009; and we believe our business is now on
the upswing. There are several factors that make us
cautiously optimistic about 2010. The first factor is that
our base integration business revenues are inline with the fourth
quarter of 2009. While on the surface revenue in this segment
appears to be flat, that is actually not the case when factoring in
seasonality. Normally we would see lower revenue in the first
quarter in comparison to the fourth quarter. Another key
factor is our backlog execution schedule. Our current backlog
is up as compared with the fourth quarter and same period of the
prior year. Finally, we reduced our SG&A by $414k by
reducing payroll and related costs allowing us to turn a small
profit."
Henry continued, "Looking ahead, we are expecting the second
half of the year to be strong. Our 2010 second quarter
bookings are expected to exceed that of the first quarter as
stimulus money begins to flow into the public sector and other
enterprises start to release projects previously in the planning
stage. Having only completed one of the TVCS projects through
2009, we are planning to complete three to six in 2010 with most of
the revenue being weighted to the second half of the year. For
these reasons we are guiding towards a 4%-5% operating margin on
consolidated revenue of $60 million-$65
million in 2010."
About Henry Bros. Electronics,
Inc.
Henry Bros. Electronics (NASDAQ:
HBE) provides technology-based integrated electronic security
systems, services and emergency preparedness consultation to
commercial enterprises and government agencies. The Company
has offices in Arizona,
California, Colorado, Maryland, New
Jersey, New York,
Texas and Virginia.
For more information, visit http://www.hbe-inc.com.
Safe Harbor Statement: Certain statements in this press
release constitute forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, as amended.
Forward-looking statements inherently involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements. In particular, there can be no
assurance that the Company will achieve revenues of $60 million to
$65 million or an operating profit in 2010. Additional
information concerning factors that could cause actual results to
differ materially from those in the forward looking statements is
contained under the heading of risk factors listed in the Company's
filings with the U.S. Securities and Exchange Commission.
Henry Bros. Electronics, Inc. does
not assume any obligation to update the forward-looking
information.
Investor
Contacts:
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|
|
Todd
Fromer
|
Jim Henry,
Vice-Chairman & Chief Executive Officer
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|
KCSA Strategic
Communications
|
Henry Bros.
Electronics, Inc.
|
|
212-896-1215
|
201-794-6500
|
|
tfromer@kcsa.com
|
jhenry@hbe-inc.com
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|
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HENRY BROS. ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATION STATEMENTS OF OPERATIONS
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Three months ended
March 31,
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2010
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2009
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Revenue
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$
12,441,292
|
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$
15,308,212
|
|
Cost of revenue
|
|
8,864,290
|
|
11,086,198
|
|
Gross profit
|
|
3,577,002
|
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4,222,014
|
|
Operating expenses:
|
|
|
|
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|
Selling, general & administrative
expenses
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3,457,058
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3,870,860
|
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Operating profit
|
|
119,944
|
|
351,154
|
|
|
|
|
|
|
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Interest income
|
|
41,994
|
|
6,970
|
|
Other income
|
|
4,465
|
|
13,186
|
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Interest expense
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|
(58,977)
|
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(65,701)
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Income before tax expense
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107,426
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305,609
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Tax expense
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50,039
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139,487
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Net income
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$
57,387
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$
166,122
|
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BASIC EARNINGS PER COMMON
SHARE:
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Basic earnings per common
share
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$
0.01
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$
0.03
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Weighted average common
shares
|
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5,887,698
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5,829,581
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DILUTED EARNINGS PER COMMON
SHARE:
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Diluted earnings per common
share
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$
0.01
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|
$
0.03
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Weighted average diluted common
shares
|
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6,059,458
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6,143,851
|
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SOURCE Henry Bros. Electronics,
Inc.