FAIR LAWN, N.J. , Aug. 14 /PRNewswire-FirstCall/ -- Henry Bros .
Electronics, Inc. (Amex: HBE), a turnkey provider of technology-based
integrated electronic security solutions, today announced results for the
second quarter ended June 30, 2008 .
The Company reported revenue of $15.1 million for the second quarter of
2008, representing an increase of 11.9% over revenue of $13.5 million for the
same period a year ago. The New Jersey subsidiary experienced a significant
increase in revenue as a result of work completed on contracts for several
large public agencies in the New York Metropolitan area. Revenue improvement
from the Arizona and Virginia subsidiaries also contributed to the Company's
top-line growth in the second quarter of 2008.
The Company reported net income of $337,261, or $0.06 per diluted share,
for the second quarter ended June 30, 2008 , representing an increase of 125%
over net income of $150,044, or $0.03 per diluted share, in the comparable
period of 2007.
Revenue for the six-month period ended June 30, 2008 was $31.0 million,
representing an increase of 27.2% over revenue of $24.4 million for the six
months ended June 30, 2007 . Net income for the 2008 six-month period was
$621,218, or $0.10 per diluted share, compared to a net loss of $(670,371), or
$(0.12) per diluted share, for the 2007 six-month period.
Backlog as of June 30, 2008 was $17.6 million, compared to $26.6 million
reported at December 31, 2007 . The decline in backlog is a primary result of
work completed on several large agency jobs in the New York Metropolitan area
which were booked in the second quarter of 2007. The Company expects to
receive initial purchase orders in the amount of approximately $5.8 million
under our previously disclosed subcontractor agreement with L-3 prior to the
end of August 2008 .
Jim Henry , CEO of Henry Bros . Electronics, stated, "We are pleased to
report continued success on a number of large-scale, multi-year integrated
security projects. Our ability to customize security solutions for large
businesses and enterprises located in major metropolitan areas has enhanced
our market position, elevating our Company to the forefront of our nation's
most critical security jobs."
Henry concluded, "Through our work with L-3 Communications, we are now
playing an integral role in the implementation of a Tactical Video Capture
System planned for installation at 15 U.S. Marine bases in the USA and abroad.
This project, valued at $326 million, of which we have a significant work
share, brings the most state-of-the-art technology to the USMC. Our role in
this important endeavor demonstrates the value of our solutions and services,
and has the power to bring forth additional opportunities in the future to
serve the needs of other large enterprises that require the most advanced
video surveillance systems."
Excluding the effect from the L-3 Contract discussed above, the Company is
reiterating its forecasted operating profit margin of 4% on $65 million of
revenue for fiscal 2008. In addition, the Company is currently in the process
of finalizing an increase in its Revolving Credit Agreement with TD Banknorth
from $4 million to $8 million in order to support these new projects and
growth initiatives.
Conference Call Information:
Henry Bros . Electronics will be hosting a conference call on Thursday,
August 14, 2008 , at 11:00 a.m. ET . To participate on the call, please use the
following number and conference code:
(888) 562-3356 (Domestic)
(973) 582-2700 (International)
Conference code: 58917161
A replay of the call will be available from Thursday, August 14, 2008 at
12:00 p.m., ET , through Sunday, September 14, 2008 at 11:59 p.m., ET . To
access the replay, please call (800) 642-1687 in the United States or (706)
645-9291 outside the United States . To access the replay, users will need to
enter the following code: 58917161.
About Henry Bros . Electronics, Inc.
Henry Bros . Electronics (Amex: 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 $65 million or a
4% operating profit in 2008. 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:
Todd Fromer / Erika Kay Jim Henry, Chairman &
KCSA Strategic Communications Chief Executive Officer
212-896-1215 / 212-896-1208 Henry Bros. Electronics, Inc.
[email protected] /
[email protected] 201-794-6500
[email protected]
HENRY BROS. ELECTRONICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) (Unaudited)
Six months ended June 30, Three months ended June 30,
2008 2007 2008 2007
Revenue $31,029,997 $24,392,499 $15,123,951 $13,521,198
Cost of revenue 23,866,396 18,956,044 11,503,335 10,240,919
Gross profit 7,163,601 5,436,455 3,620,616 3,280,279
Operating expenses:
Selling, general &
administrative
expenses 5,888,710 6,246,153 2,905,652 2,981,986
Operating profit (loss) 1,274,891 (809,698) 714,964 298,293
Interest income 52,981 21,273 22,937 14,332
Other income (expense) 8,248 (3,369) 4,034 (3,110)
Interest expense (142,728) (167,189) (65,995) (96,732)
Income (loss) before
tax expense 1,193,392 (958,983) 675,940 212,783
Tax expense (benefit) 572,174 (288,612) 338,679 62,739
Net income (loss) $621,218 $(670,371) $337,261 $150,044
BASIC EARNINGS (LOSS)
PER COMMON SHARE:
Basic profit (loss)
per common share $0.11 $(0.12) $0.06 $0.03
Weighted average common
shares 5,772,864 5,749,964 5,772,864 5,749,964
DILUTED EARNINGS (LOSS)
PER COMMON SHARE:
Diluted profit (loss)
per common share: $0.10 $(0.12) $0.06 $0.03
Weighted average diluted
common shares 5,976,008 5,749,964 5,976,008 5,749,964
SOURCE Henry Bros . Electronics, Inc.
