§
|
Revenue
of $153.8 million, down 4.3% from $160.7 million a year ago in Q2 (down
3.4% on a constant currency basis);
|
§
|
Q2
revenue included $2.4 million in revenue from acquired
companies;
|
§
|
Q2
results include severance charges of $1 million related to cost reduction
initiatives; earlier reported cost reduction actions combined with further
actions in October are expected to result in fiscal year 2009 savings of
$6 million, net of severance charges, and annualized savings of
approximately $10 million;
|
§
|
SG&A
expenses were down $2.2 million in Q2 from the same quarter a year ago, or
6.4%, primarily due to the cost reductions initiated early in the second
quarter and the elimination of incentive compensation expense for the
quarter;
|
§
|
Operating
margin increased to 3.5% of sales in Q2 from 3.2% in the second quarter of
fiscal 2008, reflecting cost reductions and lower R&D
expense;
|
§
|
Cash
flows from operations, less capital expenditures, swings $13.6 million
from the second quarter a year ago to positive cash flows of $5.2 million
in the second quarter;
|
§
|
Q2
net income up $3.6 million compared with Q2 last year to $6.1 million;
current quarter included a non-recurring tax benefit of $3.4 million, or
$0.14 per diluted share, associated with an international business
restructuring that provided a tax
benefit;
|
§
|
Diluted
EPS of $0.26 per share, compared with $0.11 per share for the prior year
second quarter;
|
§
|
Virtek
Vision acquisition completed in Q2 was immediately accretive to
consolidated results.
|
GERBER
SCIENTIFIC, INC.
SUMMARY
OF OPERATIONS
(Unaudited)
|
||||||||||||||||
For
the Fiscal Quarters Ended October 31,
|
For
the Six Months
Ended
October 31,
|
|||||||||||||||
In
thousands, except per share data
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Revenue:
|
||||||||||||||||
Product
sales
|
$
|
134,794
|
$
|
142,095
|
$
|
274,601
|
$
|
277,385
|
||||||||
Service
sales
|
18,964
|
18,621
|
38,015
|
36,998
|
||||||||||||
Total
revenue
|
153,758
|
160,716
|
312,616
|
314,383
|
||||||||||||
Cost
of Sales:
|
||||||||||||||||
Cost
of products sold
|
97,615
|
102,217
|
201,209
|
198,874
|
||||||||||||
Cost
of services sold
|
12,549
|
12,103
|
25,769
|
23,652
|
||||||||||||
Total
cost of sales
|
110,164
|
114,320
|
226,978
|
222,526
|
||||||||||||
Gross
profit
|
43,594
|
46,396
|
85,638
|
91,857
|
||||||||||||
Selling,
general and administrative expenses
|
32,445
|
34,658
|
66,656
|
69,281
|
||||||||||||
Research
and development
|
5,769
|
6,552
|
12,002
|
13,017
|
||||||||||||
Operating
income
|
5,380
|
5,186
|
6,980
|
9,559
|
||||||||||||
Other
income (expense), net
|
(383
|
)
|
(386
|
)
|
(511
|
)
|
339
|
|||||||||
Interest
expense
|
(863
|
)
|
(1,083
|
)
|
(1,477
|
)
|
(2,072
|
)
|
||||||||
Income
before income taxes
|
4,134
|
3,717
|
4,992
|
7,826
|
||||||||||||
Income
tax (benefit) expense
|
(1,960
|
)
|
1,216
|
(1,783
|
)
|
2,488
|
||||||||||
Net
income
|
$
|
6,094
|
$
|
2,501
|
$
|
6,775
|
$
|
5,338
|
||||||||
Earnings
per share of common stock:
|
||||||||||||||||
Basic
|
$
|
0.26
|
$
|
0.11
|
$
|
0.29
|
$
|
0.23
|
||||||||
Diluted
|
$
|
0.26
|
$
|
0.11
|
$
|
0.29
|
$
|
0.23
|
||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
|
23,557
|
23,329
|
23,508
|
23,257
|
||||||||||||
Diluted
|
23,711
|
23,638
|
23,733
|
23,594
|
GERBER
SCIENTIFIC, INC.
SUMMARY
SEGMENT INFORMATION
(Unaudited)
|
||||||||||||||||
For
the Fiscal Quarters Ended October 31,
|
For
the Six Months
Ended
October 31,
|
|||||||||||||||
In
thousands
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Sign
Making and Specialty Graphics:
|
||||||||||||||||
Gerber
Scientific Products
|
$
|
28,283
|
$
|
26,652
|
$
|
52,217
|
$
|
51,781
|
||||||||
Spandex
|
63,907
|
64,103
|
134,342
|
124,854
|
||||||||||||
Sign
Making and Specialty Graphics
|
92,190
|
90,755
|
186,559
|
176,635
|
||||||||||||
Apparel
and Flexible Materials
|
45,932
|
51,440
|
94,881
|
100,919
|
||||||||||||
Ophthalmic
Lens Processing
|
15,636
|
18,521
|
31,176
|
36,829
|
||||||||||||
Consolidated
revenue
|
$
|
153,758
|
$
|
160,716
|
$
|
312,616
|
$
|
314,383
|
||||||||
Sign
Making and Specialty Graphics:
|
||||||||||||||||
Gerber
Scientific Products
|
$
|
540
|
$
|
603
|
$
|
(623
|
)
|
$
|
431
|
|||||||
Spandex
|
2,613
|
2,303
|
5,916
|
4,021
|
||||||||||||
Sign
Making and Specialty Graphics
|
3,153
|
2,906
|
5,293
|
4,452
|
||||||||||||
Apparel
and Flexible Materials
|
4,983
|
6,431
|
8,649
|
13,484
|
||||||||||||
Ophthalmic
Lens Processing
|
1,219
|
1,050
|
1,334
|
2,429
|
||||||||||||
Segment
operating income
|
9,355
|
10,387
|
15,276
|
20,365
|
||||||||||||
Corporate
operating expenses
|
(3,975
|
)
|
(5,201
|
)
|
(8,296
|
)
|
(10,806
|
)
|
||||||||
Consolidated
operating income
|
$
|
5,380
|
$
|
5,186
|
$
|
6,980
|
$
|
9,559
|
GERBER
SCIENTIFIC, INC.
SELECTED
FINANCIAL DATA – RESULTS OF OPERATIONS
(Unaudited)
|
||||||||||||||||
For
the Fiscal Quarters
Ended
October 31,
|
For
the Six Months
Ended
October 31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Gross
margin
|
28.4
|
%
|
28.9
|
%
|
27.4
|
%
|
29.2
|
%
|
||||||||
Operating
margin
|
3.5
|
%
|
3.2
|
%
|
2.2
|
%
|
3.0
|
%
|
GERBER
SCIENTIFIC, INC.
SELECTED
FINANCIAL DATA – FINANCIAL POSITION
(Unaudited)
|
||||||||
In
thousands, except ratio data
|
October
31,
2008
|
April
30,
2008
|
||||||
Cash
and cash equivalents
|
$
|
16,401
|
$
|
13,892
|
||||
Working
capital
|
$
|
107,184
|
$
|
106,005
|
||||
Total
debt
|
$
|
84,000
|
$
|
42,000
|
||||
Net
debt (total debt less cash and cash equivalents)
|
$
|
67,599
|
$
|
28,108
|
||||
Shareholders'
equity
|
$
|
150,710
|
$
|
169,563
|
||||
Total
capital (net debt plus shareholders' equity)
|
$
|
218,309
|
$
|
197,671
|
||||
Current
ratio
|
1.95:1
|
1.89:1
|
||||||
Net
debt-to-total capital ratio
|
31.0
|
%
|
14.2
|
%
|
GERBER
SCIENTIFIC, INC.
SELECTED
FINANCIAL DATA – CASH FLOWS
(Unaudited)
|
||||||||||||||||
For
the Fiscal Quarters
Ended
October 31,
|
For
the Six Months
Ended
October 31,
|
|||||||||||||||
In
thousands
|
2008
|
2007
|
2008
|
2007
|
||||||||||||
Net
cash provided by operating activities
|
$
|
7,915
|
$
|
(5,648
|
)
|
$
|
2,941
|
$
|
(1,485
|
)
|
||||||
Net
cash used for investing activities
|
$
|
(32,226
|
)
|
$
|
(2,854
|
)
|
$
|
(38,081
|
)
|
$
|
(8,455
|
)
|
||||
Net
cash provided by financing activities
|
$
|
29,725
|
$
|
4,237
|
$
|
41,637
|
$
|
15,478
|
||||||||
Depreciation
and amortization
|
$
|
2,419
|
$
|
2,409
|
$
|
4,826
|
$
|
4,708
|
||||||||
Capital
expenditures
|
$
|
2,715
|
$
|
2,758
|
$
|
4,921
|
$
|
3,849
|