- Full Year Earnings Decreased by 99.8%
- Full Year Revenues Decreased by 23.6%
- Outstanding Shares Reduced by 2.3%
- Guides to Rebound in Revenues and Profits for Fiscal 2014
ATLANTA, May 29, 2013 (GLOBE NEWSWIRE) -- Video Display Corporation (Nasdaq:VIDE) today reported financial results from continuing operations for fiscal year 2013 fourth quarter and full year as follows:
| February 28, 2013 Fiscal Year | 2013 | 2012 | $ Change | % Change |
| Net Revenue | $ 49,103 | $ 64,231 | (15,128) | (23.6%) |
| Gross Profit | 12,914 | 19,945 | (7,031) | (35.3%) |
| Operating Expenses | 12,725 | 13,922 | (1,197) | (8.6%) |
| Net Profit after Tax | 8 | 3,577 | (3,569) | (99.8%) |
| Earnings per Share . | $ 0.00 | $ 0.46 | ($0.46) | (100.0%) |
| Fully Diluted O/S Shares | 7,623 | 7,802 | (179) | (2.3%) |
| 4th Quarter 2/28/2013 | 2013 | 2012 | $ Change | % Change |
| Net Revenues | $ 11,551 | $ 14,629 | (3,078) | (21.0%) |
| Gross Profit | 2,520 | 4,031 | (1,511) | (37.5%) |
| Operating Expenses | 2,019 | 3,558 | (539) | (15.1%) |
| Net Profit after Tax | (442) | 80 | (522) | (652.5%) |
| Earnings per Share | ($0.06) | $ 0.01 | ($0.07) | (700.0%) |
| Fully diluted O/S Shares | 7,623 | 7,802 | (179) | (2.3%) |
Company CEO, Ron Ordway, stated, "The Company's fiscal year ended February 2013 results reflected the continuation of major defense programs being delayed and shifted to the right for awards and deliveries against existing contracts. Revenues were also affected by the reduction in shipments on a major contract in medical power supplies from our Z-Axis, Inc. subsidiary. Although shipments continue to the medical manufacturer, the expected requirements for the supply are expected to run at reduced rates now that the initial backlog has been filled. As we experienced a significant reduction in revenues of nearly 24%, the Company's gross profit margins for the 2013 fiscal year shrank from 31.0% to 26.3%, a decrease of 35.3% year over year. This gross profit margin contraction generated a 99.8% decrease in aftertax earnings."
Outlook
Ordway added, "As we look forward to fiscal 2014, we continue to see opportunities for growth in our markets for military, medical, commercial and industrial displays. Based upon the current level of order booking for orders deliverable in fiscal 2014 and beyond, I believe that VDC's revenues for fiscal 2014 will show significant improvement over those reported for fiscal 2013. Currently the Company has outstanding contract bids in excess of $250 million of potential contract wins in which it has a strong possibility of success. Many of these bids are for multiyear contracts which, if won, will ensure a solid base of business for 2014 and a number of future years as well.
"Subsequent to fiscal 2013 year end, the Company has closed its projection tube manufacturing operations in Bossier City, LA and has succeeded in selling the facilities as well. Not only has this allowed the Company to reduce fixed term debt and reduce interest costs, it also eliminates an operation which has been a constant drag on earnings for several years."
Ordway further stated, "As we continue to eliminate our non-core assets and the Company becomes a "pure play" in providing our selected military, medical, commercial and industrial markets with high end specialty displays and assemblies, we expect to return to expanding profit margins on the remaining product lines. Based upon achieving our projected revenue goals in excess of $60 million and expanded margins for fiscal 2014, we expect to see a return to a much higher level of annual profitability in a range of $0.52 - $0.60 per share, versus the breakeven results in fiscal 2013, on approximately 7.5 million shares outstanding for the 2014 fiscal year. The quarterly per share results of the fiscal 2014 annual earnings are expected to be distributed on the basis of 5% - 25% - 35% - 35% in the first through the fourth quarters based upon current backlog delivery schedules and anticipated ordering patterns."
Video Display Corporation designs, develops and manufactures unique solutions for display requirements for military, medical and industrial use with emphasis on high end training and simulation applications. Its product offerings include ruggedized AMLCD and CRT displays as well as complete projection systems utilizing VDC's Marquee™ and ESCP line of projectors. Video Display Corporation operates six display design and manufacturing plants with additional sales facilities throughout the United States and Europe. For more information, visit the Company's web site at www.videodisplay.com.
This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, from time to time, Video Display Corporation or its representatives have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but are not limited to, various filings made by the Company with the Securities and Exchange Commission, press releases or oral statements made with the approval of an authorized executive officer of the Company. Actual results could differ materially from those projected or suggested in any forward-looking statements as a result of a wide variety of factors and conditions, including items discussed in the Company's Form 10-K for the year ended February 28, 2013, filed with the Securities and Exchange Commission. The Company undertakes no duty to publicly update forward-looking statements, whether as a result of new information, future events or otherwise.