Autoscope Technologies Corporation Announces Financial Results
16 Maio 2022 - 6:05PM
Autoscope Technologies Corporation (Nasdaq: AATC) today
announced results for its quarter ended March 31, 2022.
First Quarter 2022 Financial Summary
- First quarter royalties
remained constant at $1.8 million compared the same period in the
prior year.
- First quarter product sales were
$934,000, a decrease of 20 percent from the same period
in the prior year.
- Operating expenses totaled $2.1
million in the first quarter of 2022, an increase of 14
percent from the prior year period.
- Net income for the first
quarter of 2022 totaled $17,000, a decrease of approximately $1.0
million when compared to a net income of $1.1 million for the
same period in the prior year, due to the forgiveness of the
Payroll Protection Loan.
First-Quarter Results:
First quarter 2022 revenue for
Autoscope Technologies Corporation ("ATC," the "Company,"
"us," "we," or "our"), which includes the results of Image Sensing
Systems, Inc., a wholly-owned subsidiary of ATC ("ISS"), was
$2.8 million compared to $3.0 million in the first
quarter of 2021. Revenue from royalties remained constant
at $1.8 million in the first quarter
of 2022 compared to the first quarter
of 2021. Product sales decreased to $934,000 in
the first quarter of 2022,
a 20 percent decrease from $1.2 million in
the first quarter of 2021. Autoscope video
product sales and royalties were $164,000 and
$1.8 million, respectively, and RTMS radar product sales were
$770,000 in the first quarter of 2022.
Gross margin for the first quarter of
2022 was 78 percent, a 3 percent increase from a
gross margin of 76 percent for the same period in 2021. Gross
margin from royalties decreased to 94 percent in the
first quarter of 2022 compared to 96 percent in the first quarter
of 2021. Product sales gross margin for
the first quarter
of 2022 was 45 percent compared
to 47 percent in the prior year period. The increase
in the gross margin percent was primarily the result of a higher
portion of revenues from royalties compared to the
first quarter of 2021.
The 2022 first quarter net income
includes operating expenses of $2.1 million,
a 14 percent increase from
the first quarter of 2021. The increase in operating
expenses is due to the increased stock-based compensation
expense and costs associated with resumed travel in the first
quarter of 2022 compared to the first quarter of 2021. The
Company's net income for the 2022 first quarter was
$17,000, or $0.00 per diluted share, compared to net income of
$1.1 million or $0.21 per diluted share in the prior year
period.
On a non-GAAP basis, excluding the amortization
of intangible assets and depreciation for the applicable periods,
operating income for the first quarter of 2022 was
$270,000 compared to operating income of $638,000 in the
prior year period.
“First-quarter royalty revenue for Image Sensing
Systems was steady while product sales were hampered by timing of
shipments. Product revenues are poised for a rebound as our sales
pipeline is at the highest level in years. For the remainder of the
year, gross margins will be slightly lower than the recent years
due to supply chain inflation exceeding scheduled product price
increases,” said Andrew Berger Chairman and CEO of ATC. “ISS'
long-term prospects look bright as our new product portfolio is
being well received, as we have received high demand for trial and
testing of such products. Separately, to help ensure stability of
our supply chain we have invested increased sums into inventories,”
concluded Mr. Berger.
Non-GAAP Financial Measures:
We provide certain non-GAAP financial
information as supplemental information to financial measures
calculated and presented in accordance with GAAP (Generally
Accepted Accounting Principles in the United States). This non-GAAP
information excludes the impact of amortizing intangible assets and
depreciation and may exclude other non-recurring items. Management
believes that this presentation facilitates the comparison of our
current operating results to historical operating results.
Management uses this non-GAAP information to evaluate short-term
and long-term operating trends in our core operations. Non-GAAP
information is not prepared in accordance with GAAP and should not
be considered a substitute for or an alternative to GAAP financial
measures and may not be computed the same as similarly titled
measures used by other companies. About
Autoscope Technologies Corporation
Autoscope Technologies Corporation is
a global company dedicated to helping improve safety and efficiency
for cities and highways by developing and delivering above-ground
detection technology, applications and solutions. We give
Intelligent Transportation Systems (ITS) professionals more precise
and accurate information – including real-time reaction
capabilities and in-depth analytics – to make more confident and
proactive decisions. We are headquartered in Minneapolis,
Minnesota. Visit us on the web at imagesensing.com.
Safe Harbor
Statement: Statements made in this release concerning
the Company’s or management’s intentions, expectations, or
predictions about future results or events are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements reflect management’s current
expectations or beliefs, and are subject to risks and uncertainties
that could cause actual results or events to vary from stated
expectations, which variations could be material and adverse.
Factors that could produce such a variation include, but are not
limited to, the following: the inherent unreliability of earnings,
revenue and cash flow predictions due to numerous factors, many of
which are beyond the Company’s control; developments in the demand
for the Company’s products and services; relationships with the
Company’s major customers and suppliers; the mix of and margins on
the products we sell; unanticipated delays, costs and expenses
inherent in the development and marketing of new products and
services; adverse weather conditions in our markets; the impact of
governmental laws, regulations, and orders, including as a result
of the COVID-19 pandemic caused by the coronavirus;
international presence; tariffs and other trade barriers; our
success in integrating any acquisitions; potential disruptions to
our supply chains (including disruptions caused by geopolitical
events, military actions, work stoppages, nature disasters, or
international health emergencies, such as the COVID-19 pandemic);
and competitive factors. Our forward-looking statements speak only
as of the time made, and we assume no obligation to publicly update
any such statements. Additional information concerning these and
other factors that could cause actual results and events to differ
materially from the Company’s current expectations are contained in
the Company’s reports and other documents filed with the Securities
and Exchange Commission, including its Annual Report on Form 10-K
for the year ended December 31, 2021 filed on March 22, 2022.
Autoscope Technologies CorporationCondensed
Consolidated Statements of Operations(in thousands, except per
share information)(unaudited)
|
|
Three-Month Periods Ended March 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenue |
|
|
|
|
|
|
|
|
Product sales |
|
$ |
934 |
|
|
$ |
1,163 |
|
Royalties |
|
|
1,818 |
|
|
|
1,816 |
|
|
|
|
2,752 |
|
|
|
2,979 |
|
Cost
of revenue |
|
|
616 |
|
|
|
706 |
|
Gross
profit |
|
|
2,136 |
|
|
|
2,273 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
1,687 |
|
|
|
1,366 |
|
Research and development |
|
|
428 |
|
|
|
496 |
|
|
|
|
2,115 |
|
|
|
1,862 |
|
Income from operations |
|
|
21 |
|
|
|
411 |
|
Interest income (expense) |
|
|
(18 |
) |
|
|
- |
|
Investment income |
|
|
5 |
|
|
|
- |
|
Other
income |
|
|
11 |
|
|
|
925 |
|
Income from operations before income taxes |
|
|
19 |
|
|
|
1,336 |
|
Income tax expense |
|
|
2 |
|
|
|
205 |
|
Net
income |
|
$ |
17 |
|
|
$ |
1,131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income per share |
|
$ |
0.00 |
|
|
$ |
0.21 |
|
Diluted net income per share |
|
$ |
0.00 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
Weighted shares - basic |
|
|
5,362 |
|
|
|
5,322 |
|
Weighted shares - diluted |
|
|
5,377 |
|
|
|
5,342 |
|
|
|
|
|
|
|
|
|
|
Autoscope Technologies CorporationCondensed
Consolidated Balance Sheets(in thousands)(unaudited)
|
March 31, 2022 |
|
|
December 31,2021 |
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
$ |
4,407 |
|
|
$ |
8,229 |
Receivables, net |
|
2,454 |
|
|
|
2,369 |
Inventories |
|
1,366 |
|
|
|
1,429 |
Investments in held-to-maturity debt securities |
|
76 |
|
|
|
- |
Investments in equity securities |
|
343 |
|
|
|
- |
Prepaid expenses and other current assets |
|
996 |
|
|
|
355 |
|
|
9,642 |
|
|
|
12,382 |
Property and equipment, net |
|
2,198 |
|
|
|
2,237 |
Operating lease asset, net |
|
14 |
|
|
|
58 |
Intangible assets, net |
|
2,979 |
|
|
|
2,866 |
Deferred income taxes |
|
4,825 |
|
|
|
4,824 |
Long-term investments in held-to-maturity debt securities |
|
2,338 |
|
|
|
- |
|
$ |
21,996 |
|
|
$ |
22,367 |
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
$ |
406 |
|
|
$ |
236 |
Short-term debt |
|
56 |
|
|
|
56 |
Warranty and other current liabilities |
|
541 |
|
|
|
607 |
|
|
1,003 |
|
|
|
899 |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
Long-term debt |
|
1,660 |
|
|
|
1,674 |
|
|
1,660 |
|
|
|
1,674 |
|
|
|
|
|
|
|
Shareholders’ equity |
|
19,333 |
|
|
|
19,794 |
|
$ |
21,996 |
|
|
$ |
22,367 |
Autoscope Technologies CorporationCondensed
Consolidated Statements of Cash Flows(in thousands)(unaudited)
|
Three-Month PeriodsEnded March 31, |
|
2022 |
|
|
2021 |
|
Operating activities |
|
|
|
|
|
|
Net income |
$ |
17 |
|
|
$ |
1,131 |
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
249 |
|
|
|
227 |
|
Amortization of deferred finance fees |
|
1 |
|
|
|
- |
|
Stock option expense |
|
206 |
|
|
|
53 |
|
Deferred income tax expense |
|
- |
|
|
|
201 |
|
Forgiveness income from PPP Loan |
|
- |
|
|
|
(931 |
) |
Loss on disposal of assets |
|
5 |
|
|
|
- |
|
Unrealized gain on equity investments |
|
(6 |
) |
|
|
|
Changes in operating assets and liabilities |
|
(517 |
) |
|
|
(867 |
) |
Net cash
used for operating activities |
|
(45 |
) |
|
|
(186 |
) |
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
Capitalized software development costs |
|
(313 |
) |
|
|
(123 |
) |
Purchases of property and equipment |
|
(13 |
) |
|
|
(10 |
) |
Purchase of equity securities |
|
(337 |
) |
|
|
- |
|
Purchase of held-to-maturity debt securities |
|
(2,414 |
) |
|
|
- |
|
Net cash
used for investing activities |
|
(3,077 |
) |
|
|
(133 |
) |
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
Stock for tax withholding |
|
(9 |
) |
|
|
(24 |
) |
Dividends paid |
|
(645 |
) |
|
|
- |
|
Proceeds from exercise of stock options |
|
32 |
|
|
|
- |
|
Proceeds from PPP Loan |
|
(15 |
) |
|
|
- |
|
Net cash
used for financing activities |
|
(637 |
) |
|
|
(24 |
) |
|
|
|
|
|
|
|
Effect
of exchange rate changes on cash |
|
(63 |
) |
|
|
(50 |
) |
Decrease
in cash and cash equivalents |
|
(3,822 |
) |
|
|
(393 |
) |
|
|
|
|
|
|
|
Cash and
cash equivalents at beginning of period |
|
8,229 |
|
|
|
8,605 |
|
Cash and
cash equivalents at end of period |
$ |
4,407 |
|
|
$ |
8,212 |
|
|
|
|
|
|
|
|
Non-Cash investing and financing activities: |
|
|
|
|
|
|
Purchase of property and equipment in accounts payable |
$ |
3 |
|
|
$ |
3 |
|
Autoscope Technologies CorporationNon-GAAP
Income from Continuing Operations(in thousands)(unaudited)
We define non-GAAP income from operations as
income from operations before amortization of intangible assets and
depreciation for the applicable periods. Management believes
non-GAAP income from operations is a useful indicator of our
financial performance and our ability to generate cash flows from
operations. Our definition of non-GAAP income from operations may
not be comparable to similarly titled definitions used by other
companies. The table below reconciles non-GAAP income from
operations, which is a non-GAAP financial measure, to comparable
GAAP financial measures:
|
|
Three-Month Periods Ended March 31, |
|
|
2022 |
|
|
2021 |
Income from operations |
|
$ |
21 |
|
|
$ |
411 |
Amortization of intangible assets |
|
|
200 |
|
|
|
187 |
Depreciation |
|
|
49 |
|
|
|
40 |
Non-GAAP income from operations |
|
$ |
270 |
|
|
$ |
638 |
Note – Our calculation of non-GAAP income from
operations is considered a non-GAAP financial measure and is not in
accordance with, or preferable to, “as reported”, or GAAP financial
data. However, we are providing this information, as we believe it
facilitates analysis of the Company’s financial performance by
investors and financial analysts.
Contact: |
Frank Hallowell, Chief Financial Officer |
|
Autoscope Technologies Corporation
Phone: 612.438.2363 |
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