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PORTLAND, Ore., April 10, 2019 (GLOBE NEWSWIRE) -- Schmitt Industries, Inc. (NASDAQ: SMIT) (the “Company” or “Schmitt”) today announced its operating results for the third quarter of Fiscal 2019.
Highlights of the three and nine months ended February 28, 2019:
Michael Zapata, Executive Chairman and President, commented, “Since announcing the reorganization on November 27, 2018, the Schmitt team has invested strategically in our people, technology, and client relationships, to continue delivering industry leading quality and service in our SBS®, Xact® and Acuity® business lines. We are beginning to see the impacts of our focus on high return on investment priorities and improved profitability as non-GAAP EPS improved on a year over year basis. We expect GAAP financials to begin to normalize in the fourth quarter of Fiscal 2019 as the team continues to execute across our three product lines and we target underserved markets while continuing to grow alongside our valued customers.”
Summary data for the three months ended February 28, 2019 and 2018:
|Three Months Ended February 28,|
|2019||2018||Change ($)||Change (%)|
|Total net sales||$||3,082,181||$||3,238,858||$||(156,677||)||(4.8||%)|
|Net income (loss)||$||(475,189||)||$||15,553||(490,742||)|
|Net income (loss) per fully diluted share||$||(0.12||)||$||0.00|
Summary data for the nine months ended February 28, 2019 and 2018:
|Nine Months Ended February 28,|
|2019||2018||Change ($)||Change (%)|
|Total net sales||$||10,026,112||$||10,093,386||$||(67,274||)||(0.7||%)|
|Net income (loss) per fully diluted share||$||(0.24||)||$||0.00|
Reconciliation of Adjusted Net Income and Non-GAAP EPS:
|Three Months Ended February 28, 2019||Nine Months Ended February 28, 2019|
|Inventory reserve adjustment||407,558||407,558|
|Non-recurring reorganization, legal and other professional expenses||292,888||637,447|
|Adjusted net income (non-GAAP)||$||225,257||$||102,727|
|Non-GAAP earnings per fully diluted share||$||0.06||$||0.03|
“Additionally, in line with our announced reorganization, the board of directors has approved plans to explore options to monetize Schmitt real estate, which may include the sale of Schmitt properties,” Zapata added.
About Schmitt Industries
Schmitt Industries, Inc. (the “Company” or “Schmitt”) designs, manufactures and sells high precision test and measurement products for two main business segments: the Balancer Segment and the Measurement Segment. For the Balancer Segment, the Company designs, manufactures and sells computer-controlled vibration detection, balancing and process control systems for the worldwide machine tool industry, particularly for grinding machines. The Company also provides sales and service for Europe and Asia through its wholly owned subsidiary, Schmitt Europe Limited (SEL), located in Coventry, England and through its sales representative office located in Shanghai, China. For the Measurement Segment, the Company has two core product lines: the Acuity® product line, which consists of sales of laser and white light sensor distance measurement and dimensional sizing products; and the Xact® product line, which consists of sales of remote tank monitoring products that measure the fill levels of tanks holding propane, diesel and other tank-based liquids and revenues from the related monitoring services associated with the transmission of data from the tanks to a secure web site.
This document may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations, estimates and projections about the Company’s business that are based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to, general economic conditions and global financial concerns, the volatility of the Company’s primary markets, the ability to develop new products to satisfy changes in consumer demands, the intensity of competition, increased pricing pressure from both competitors and customers, the effect on production time and overall costs of products if any of our primary suppliers are lost or if a primary supplier increases the prices of raw materials or components, the ability to ramp up manufacturing to satisfy increasing demand, maintenance of a significant investment in inventories in anticipation of future sales, existing cash levels which may not be sufficient to fund future growth, fluctuations in quarterly and annual operating results, risks associated with operating a global business including risks from international sales, reduction in demand or loss of significant customers, changes in foreign import tariffs and currency fluctuations including the United Kingdom’s likely exit from the European Union, ability to reduce operating costs if sales decline, attracting and retaining key management and qualified technical and sales personnel, impact resulting from the actions of activist shareholders, changes in effective tax rates, protection of intellectual property rights and the increased costs due to changes in securities laws and regulations.
For further information regarding risks and uncertainties associated with the Company’s business, please refer to Schmitt’s SEC filings, including, but not limited to, its Forms 10-K, 10-Q and 8-K.
The forward-looking statements in this release speak only as of the date on which they were made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes to this document made by wire services or internet service providers.
|For more information contact:||Ann M. Ferguson, CFO and Treasurer
(503) 227-7908 or visit our web site at www.schmitt-ind.com
SCHMITT INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
|February 28, 2019||May 31, 2018|
|Cash and cash equivalents||$||1,168,930||$||2,053,181|
|Accounts receivable, net||2,078,116||2,047,032|
|Income taxes receivable||206||0|
|Total current assets||9,248,577||10,018,377|
|Property and equipment, net||863,361||770,915|
|Intangible assets, net||418,331||496,768|
|LIABILITIES & STOCKHOLDERS’ EQUITY|
|Accrued payroll liabilities||192,953||188,568|
|Other accrued liabilities||437,209||358,790|
|Income taxes payable||0||3,993|
|Current portion of long-term liabilities||21,424||0|
|Total current liabilities||1,823,965||1,770,404|
|Total current liabilities||35,601||0|
|Common stock, no par value, 20,000,000 shares authorized, 4,032,878 shares issued and outstanding at February 28, 2019 and 3,994,545 shares issued and outstanding at May 31, 2018||13,156,496||13,085,652|
|Accumulated other comprehensive loss||(509,826||)||(536,307||)|
|Total stockholders’ equity||8,670,703||9,515,656|
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY||$||10,530,269||$||11,286,060|
SCHMITT INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED FEBRUARY 28, 2019 AND 2018
|Three Months Ended February 28,||Nine Months Ended February 28,|
|Cost of sales||2,069,798||1,916,345||6,310,824||5,645,372|
|General, administration and sales||1,507,233||1,286,718||4,452,091||4,279,505|
|Research and development||20,532||75,790||116,693||253,007|
|Total operating expenses||1,527,765||1,362,508||4,568,784||4,532,512|
|Operating income (loss)||(515,382||)||(39,995||)||(853,496||)||(84,498||)|
|Other income (expense), net||46,779||61,815||(69,468||)||88,436|
|Income (loss) before income taxes||(468,603||)||21,820||(922,964||)||3,938|
|Provision for income taxes||6,586||6,267||19,314||19,235|
|Net income (loss)||$||(475,189||)||$||15,553||$||(942,278||)||$||(15,297||)|
|Net loss per common share, basic||$||(0.12||)||$||0.00||$||(0.24||)||$||0.00|
|Weighted average number of common shares, basic||4,000,990||3,706,050||3,996,970||3,230,022|
|Net loss per common share, diluted||$||(0.12||)||$||0.00||$||(0.24||)||$||0.00|
|Weighted average number of common shares, diluted||4,000,990||3,769,814||3,996,970||3,230,022|