Net Income From Continuing Ops (2,288) (199) 5,417 513
Non-recurring Events
Discontinued Operations - - - -
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - - ______________________________________________________________________________________________
Net Income (2,288) (199) 5 ,417 513
Preferred Stock And Other Adjustments 691 (691) (77) (75) ______________________________________________________________________________________________
Net Income Applicable To Common Shares ($1,597) ($890) $5,340 $438
-------------------------------------------------------------------------------- Contact: For FATS, Inc., Atlanta Freebairn & Co. Brooke Wilson, 800-715-9435 bwilson@freebairn.com or FATS, Inc. IR Contact John Morelli, 800-813-9046 www.fatsinc.com
-------------------------------------------------------------------------------- Contact: Freebairn & Co., Suwanee Media Contact Brooke Wilson, 800/715-9435 bwilson@freebairn.com or FATS, Inc. Kim Dunn, 800/813-9046 www.fatsinc.com
Charts look great and I feel she will play again Monday!
posted
When I add this symbol it comes up N/A I did a symbol lookup and it comes up FATS but when I add to etrade it still says N/A. Any ideas how to add in etrade DaDog
IP: Logged |
posted
Found this from December and thought it was interesting.
United Defense to break 5-year drought for defense IPOs
by Elena Molinari, Reuters, 5 Dec 2001
NEW YORK, Dec 5 (Reuters) - Defense companies are back after a five-year absence from the market for new equity issues. And they could not have picked a better time.
The war in Afghanistan and the government commitment to a long fight against terrorism at home and abroad foreshadow increases both in defense budgets and, more importantly, in the government spending in new equipment and technology, analysts said.
"Defense budgets have been increasing since 1997, but only recently we have finally begun to see a growth in outlays, which drive the revenue and profits of defense companies," said Todd Ernst, defense analyst with Prudential Securities. "We expect $13 billion to $16 billion in defense investments in fiscal 2002 and a 5 to 7 percent growth the following year."
When military contractor United Defense Industries Inc. comes to market next week, it will be the first initial public offering of a defense company sinceNovember 1996, when Firearms Training Systems (OTC BB:FATS.OB - news) went public, according to research firm Dealogic. Another defense IPO will come in January from ManTech International Corp. (Nasdaq:MANT - news), which recently decided to tap the market.
Demand for United Defense shares, which are expected to sell at between $18 and $20 apiece, is strong, sources in the investing community say.
"We are at war, and defense stocks are going up in the broad market," said a banker, who declined to be identified.
Defense stocks started rising after Sept. 11 and spiked after the beginning of the U.S.-led retaliatory strikes on the Taliban in Afghanistan on Oct. 7.
Lockheed Martin Corp. (NYSE:LMT - news) rose from $39.39 on Sept. 10 to $48.11 on Nov. 12. It lately lost some ground, but is still trading above $46. Raytheon Co. (NYSE:RTN - news), the maker of the Tomahawk and Patriot missiles, traded at $26.85 on Sept. 10. Its currently trading at $32.80. Northrop Grumman Corp. (NYSE:NOC - news), the No. 4 U.S. defense contractor, reached $105 in late October. The stock was selling at $81 before the attacks.
CAPITALIZING ON MOMENTUM
United Defense, which produces combat vehicles, artillery and missile launchers, is well aware of the opportunity to capitalize on such momentum.
"The terrorist attacks of Sept. 11, 2001 have generated strong Congressional support for increased defense spending," the company said in its filing with U.S. regulators.
Taking advantage of the favorable climate for defense companies, the banks managing United Defense's IPO have sped up the deal.
The Arlington, Virginia-based company, announced the IPO, led by Lehman Brothers (NYSE:LEH - news), Goldman Sachs & Co., Merrill Lynch & Co. (NYSE:MER - news), and Credit Suisse First Boston , on Oct. 24, just seven weeks before its expected debut.
Initially, the company said it would raise up to $300 million. A month later, when it set the price range for its shares, its expectations had increased to $422 million.
In the meantime, another defense company had followed suit. Two weeks ago, defense information technology firm ManTech International filed to raise as much as $92 million in an IPO scheduled to be completed in January, according to lead underwriter Jefferies and Co.
The company did not provide details of how many shares it plans to issue or the price at which they will be offered.
ManTech focuses on providing information technology and technological services to the federal government's nationaldefense and intelligence programs. "We are often called upon to support our customers ... to identify evolving foreign and domestic threats, including terrorism," the company said in its prospectus. ManTech also boasts that more than 1,700 of its 3,500 employees hold government security clearances, including more than 600 with access to Top Secret Sensitive Compartmented Information.
The recent new equity issues from defense companies comes on the heels of two successful secondary offerings in the sector. Over the past month and a half, Northrop Grumman and Raytheon sold a combined $2.3 billion worth of shares in secondary offerings, in a further sign of the market liking for war-related stocks.
"That kind of activity is quite unusual in the sector," said Ernst. "But it is a great time for defense."
United Defense will sell 21.1 million shares, but the company's main stockholder, private equity firm Carlyle Group, will get more than half of the money raised.
===== New Update February 6, 2004 ===== Speculation, encouraging press releases, and exposure continue to help lift FATS into new territory.
In trading today FATS's share price climbed 7.9% to a new 52-week high of 88 cents. Having just re-introduced subscribers of PeterLeeds.com to FATS on January 27, today’s new high represents an eight day gain of 100%.
===== February 4, 2004 ===== Speculation and encouraging press releases are also helping FATS trend higher. In trading today FATS's share price rose 7.8% to a new year-long high of 69 cents. We re-introduced subscribers of PeterLeedsd.com to FATS just last Tuesday when the company was trading for 44 cents. Today's new high represents a one week gain of 56.8%.
On February 2, the company announced a new cooperative research and development agreement with the U.S. Air Force Research Lab (AFRL) that will advance the development of new Joint Close Air Support (JCAS) systems to better meet the training needs of the U.S. Air Force.
On January 30, FATS reported that they have been awarded a $429,000 contract from the Greek Hellenic Police to upgrade its police training systems in time for the Athens Olympics.
===== February 2, 2004 ===== Before the markets opened today, FATS announced a new cooperative research and development agreement with the U.S. Air Force Research Lab (AFRL). During phase one of the collaborative project, FATS will work with AFRL, based in Mesa, Ariz., to examine current operational training shortfalls, and how FATS technology can solve these issues.
FATS CEO Ron Mohling said, "The technology in development will enable service personnel worldwide to conduct mission training and rehearsal using tailored, dynamic scenarios that are relevant to mission tasking, and can be linked and networked with other simulators. FATS is proud to contribute to force readiness."
===== January 30, 2004 ===== FATS announced today that it has been awarded a contract valued at nearly half a million dollars from the Greek Hellenic Police to upgrade its police training systems in time for the Athens Olympics.
Greek Police are responsible for planning the security measures and coordinating security forces at the 2004 Olympic Games, to begin in August. The Greek Minister of Public Order has placed the security budget for the Games at a minimum of 650 million euros ($820 million), the largest amount in Olympic history.
FATS CEO Ron Mohling said, "Our relationship with the Greek Police began over a decade ago, and we're honored that our systems will help the Greek forces better secure the Olympic Games."
FATS provides the best simulated small arms training weapons in the world
In December FATS launched a new strategic marketing campaign
In November FATS announced two new multi-million dollar contracts
The USAF Air Force Research Lab recently selected the I-FACT simulation system
FATS was included in Military Training Technology magazines’ Top 100 rankings
Outlook - A global leader in the field of arms training simulators, Firearms Training Systems Inc. (FATS) is an excellent company whose true upside potential is not being accurately reflected in their share price.
Backed by twenty years of experience, FATS takes firearms simulation to the highest level with new-generation hardware and software systems. With FATS’s training systems and services, military and law enforcement officials learn the individual and collective skills they need to win and survive.
Today, FATS is home to the leading customer base in the domestic and international military and law enforcement weapons training simulations markets. Over the last few months the company has announced new multi-million dollar contracts, a strategic business alliance, new products, a new marketing campaign, and an upbeat outlook for the third fiscal quarter.
Business Profile - FATS is engaged in the development and production of small and supporting arms training simulators, and simulated firearms. Currently over 4,000 FATS training systems are used worldwide by military, law enforcement, and commercial customers.
Since its founding in 1984, FATS has developed over 300 variations of simulated weapons, manufactured and delivered over 35,000 simulated weapons, developed over 1,000 training scenarios, and delivered over 5,200 simulators to 50 countries.
The major simulator products encompass Law Enforcement Judgmental Trainers, Military Small Arms Trainers, Indirect Fire Trainers, Armored Vehicle Trainers, Missile Trainers, Naval Shipboard Trainers, Live Fire systems, and Sportsman Archery and Firearms Handling Trainers.
Most recently the company unveiled the FATS Mobile Training Team; a mobile training facility equipped with the latest FATS simulation equipment, and training techniques.
Fundamental Analysis - On October 31 FATS reported their fiscal results for the second quarter ended September 30, 2003. Revenue for the second quarter was $12,931,000 versus $17,005,000 for the same period of the previous year. Year-to-date revenues fell 5% to $28,549,000 versus $30,197,000 for the same period of the previous year.
"While we are disappointed with the results of the second quarter, we expect that the overall results for fiscal 2004 will be positive," stated Ronavan R. Mohling, the company's Chairman and CEO. "Our business plan for the 2004 fiscal year anticipated a weaker first six months, which we continue to expect to more than recover during the third and fourth quarters." "In accordance with the SEC's revenue recognition guidelines, the company did not recognize revenue for certain shipments made during the quarter. That revenue has now been recognized in the third quarter. Both the 2004 second quarter and year-to-date results declined in comparison to the 2003 periods due to the timing of completion of significant contracts."
Mohling concluded by saying, "I am pleased to report an exciting new addition to our product lines. Our new line of BlueFire wireless weapons allows more flexibility, options and realism by cutting the cord from weapons simulators. The enthusiasm of impressive numbers of potential customers at recent trade shows indicates a strong and growing domestic and international demand for our existing products as well as the new wireless BlueFire line of weapons."
Recent News - On December 17, 2003 FATS unveiled a newly designed website and announced the launch of ‘Get Ready’; the company’s new strategic marketing campaign. The launch is timed with FATS 20th anniversary, and two important high-tech product introductions; the Indirect Fire-Forward Air Control Trainer (I-FACT) simulation system and wireless BlueFire weapons.
In early December, Military Training Technology magazine awarded FATS industry recognition for "Innovation" and "Best Programs" as part of their annual Top 100 company rankings. On December 1 FATS and SDS International, Inc. announced the formation of a strategic technological alliance. FATS enlisted SDS to take advantage of the company's innovative, industry leading PC-based visualization capabilities.
FATS and SDS have already fielded their first joint product: I-FACT, the first commercially available system designed to train ground controllers in the tactics, techniques and procedures necessary to conduct successful joint close air support operations.
In November FATS announced the receipt of two major contracts. The first is a multi-million dollar long-term contract award from a Middle Eastern country for use in training the country’s military forces; and the second is from an Arab State worth in excess of $2 million. And on November 1 FATS announced that the USAF Air Force Research Lab (AFRL) has selected the I-FACT simulation system as the baseline for a joint close air support spiral developmental effort. AFRL in Mesa, Ariz., will field five I-FACT systems to tactical air control units, which will use the system and provide feedback for future improvements and system developments, including integration with the Joint Tactical Air Ground System.
Conclusion - The undisputed leader in small firearms training systems, FATS is an excellent company with leading technology and the leading customer base in both the domestic and international military and law enforcement weapons training simulation markets.
Yet, in spite of new multi-million dollar contracts, strategic business alliances, a growing distribution base, and the lack of any real competitors...FATS has been trading cautiously. But a company with this much activity cannot continue to fly beneath the radar of the investment community for long.
The addition of new contracts, media attention, and a new strategic marketing campaign coupled with the ongoing demand for homeland security, and law enforcement & military training virtually ensures FATS of long-term sector growth and increased shareholder value.
With ongoing results like this, FATS may not stay an uncut gem for long.
SUWANEE, Ga.--(BUSINESS WIRE)--FATS-- Firearms Training Systems, Inc. (OTC: FATS) today reported earnings for the third quarter of its fiscal year ending March 31, 2004. Revenue for the third quarter was $16,479,000 versus $12,463,000 for the same period of the previous year. Third quarter 2004 net income (loss) applicable to common shareholders was a loss of ($80,000), or ($0.00) per diluted share, compared with income of $438,000, or $0.01 per diluted share for the same period of fiscal 2003. Year-to-date revenues were $45,027,000 versus $42,660,000 for the same period of the previous year. Year-to-date net income (loss) applicable to common shareholders was a loss of ($2,567,000), or ($0.04) per diluted share, compared with income of $1,692,000, or $0.02 per diluted share for the same period of fiscal 2003. "We are pleased to report substantially improved operations for the third quarter of our 2004 fiscal year," stated Ronavan R. Mohling, the Company's Chairman and Chief Executive Officer. "Our revenue increased substantially for both the quarter and the year-to-date periods ended December 31, 2003. During the third quarter, substantial increases in deliveries to U.S. military and law enforcement were only partially offset by a decrease in international sales due to a large delivery during the 2002 period. Additionally, previously undertaken cost control initiatives are beginning to produce positive results in both gross margin and operating income. However, as in the first and second quarters, our net results and earnings per share continue to be negatively impacted by the following:
-- We are incurring substantial increases in primarily non-cash interest expense associated with the extension of our debt;
-- Due to our required adoption of a new accounting standard during the first quarter, our interest expense now includes dividends on mandatorily redeemable preferred stock, which were previously reported as an adjustment to net income; and
-- Both of the above items are currently occurring without the benefit of substantial reductions included in the comparable prior periods due to the amortization of debt discount and restructuring liabilities that are no longer available.
Improved operations for the quarter ended December 31, 2003, however, were sufficient to produce positive income before the provision for income taxes. As of December 31, 2003, approximately $71 million in long-term debt and mandatorily redeemable preferred stock is classified as a current liability in our balance sheet due to its maturity date of October 15, 2004. We expect the interest and preferred stock issues to continue to adversely impact our earnings and financial position until the Company successfully completes a satisfactory refinancing or renegotiation of its credit agreements, which we anticipate to occur on or before the current maturity of the debt. While we can provide no assurance that a refinancing will occur on terms that will be acceptable to the Company, if at all, a satisfactory resolution of these issues continues to be a major priority of management." Firearms Training Systems, Inc. (OTC: FATS) designs and sells software and hardware simulation training systems that improve the skills of the world's military, law enforcement and security forces. FATS training systems provide judgmental, tactical and combined arms experiences, utilizing company-produced weapons and simulators. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, Singapore, Netherlands and United Kingdom. FATS, an ISO 9000 certified company, celebrates its 20th anniversary in 2004. The company Web site is www.fatsinc.com.
Except for financial information contained in this press release, the matters discussed may consist of forward-looking statements under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking statements, including statements regarding future events or the future financial performance of the Company, is necessarily subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors including those discussed above are: general business and economic conditions; the Company's success in competing for new contract awards; customer acceptance of and demand for the Company's new products; receipt and delivery of a sufficient level of orders from new and existing customers as well as satisfactory completion of delivery of a sufficient portion of backlog; the Company's overall ability to design, test, and introduce new products on a timely basis; the cyclical nature of the markets addressed by the Company's products; the Company's success in restructuring its debt obligations; and the risk factors listed from time to time in documents on file with the SEC. When used in this release, the words "believes," "estimates," "plans," "expects," "should," "will," "may," "might," "anticipates" or similar expressions as they relate to the Company, or its management, are intended to identify forward-looking statements. The Company, from time to time, becomes aware of rumors concerning the Company or its business. As a matter of policy, the Company does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and unsubstantiated information regarding the Company. The Company complies with Federal and State law applicable to disclosure of information concerning the Company. Investors may be at significant risk in relying on unsubstantiated information from other sources.
KEYWORD: GEORGIA INDUSTRY KEYWORD: GOVERNMENT AEROSPACE/DEFENSE EARNINGS SOURCE: FATS, Inc.
CONTACT INFORMATION: For FATS, Inc. Freebairn & Co. Media Brooke Wilson, 800/715-9435 bwilson@freebairn.com or FATS, Inc. IR Contact John Morelli, 800/813-9046 www.fatsinc.com
Exhibit 99.1 Press Release of Firearms Training Systems, Inc. dated February 9, 2004, announcing financial results for the third quarter of the year ending March 31, 2004
Item 12. Results of Operations and Financial Condition
On February 9, 2004, the Registrant issued a press release announcing its results of operations for the fiscal quarter ended December 31, 2003. A copy of the press release is included with this Report as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
February 9, 2004, Suwanee (Atlanta), GA—Firearms Training Systems, Inc. (OTC: FATS) today reported earnings for the third quarter of its fiscal year ending March 31, 2004.
Revenue for the third quarter was $16,479,000 versus $12,463,000 for the same period of the previous year. Third quarter 2004 net income (loss) applicable to common shareholders was a loss of ($80,000), or ($0.00) per diluted share, compared with income of $438,000, or $0.01 per diluted share for the same period of fiscal 2003.
Year-to-date revenues were $45,027,000 versus $42,660,000 for the same period of the previous year. Year-to-date net income (loss) applicable to common shareholders was a loss of ($2,567,000), or ($0.04) per diluted share, compared with income of $1,692,000, or $0.02 per diluted share for the same period of fiscal 2003.
“We are pleased to report substantially improved operations for the third quarter of our 2004 fiscal year,” stated Ronavan R. Mohling, the Company’s Chairman and Chief Executive Officer. “Our revenue increased substantially for both the quarter and the year-to-date periods ended December 31, 2003. During the third quarter, substantial increases in deliveries to U.S. military and law enforcement were only partially offset by a decrease in international sales due to a large delivery during the 2002 period. Additionally, previously undertaken cost control initiatives are beginning to produce positive results in both gross
margin and operating income. However, as in the first and second quarters, our net results and earnings per share continue to be negatively impacted by the following:
· We are incurring substantial increases in primarily non-cash interest expense associated with the extension of our debt;
· Due to our required adoption of a new accounting standard during the first quarter, our interest expense now includes dividends on mandatorily redeemable preferred stock, which were previously reported as an adjustment to net income; and
· Both of the above items are currently occurring without the benefit of substantial reductions included in the comparable prior periods due to the amortization of debt discount and restructuring liabilities that are no longer available.
Improved operations for the quarter ended December 31, 2003, however, were sufficient to produce positive income before the provision for income taxes.
As of December 31, 2003, approximately $71 million in long-term debt and mandatorily redeemable preferred stock is classified as a current liability in our balance sheet due to its maturity date of October 15, 2004.
We expect the interest and preferred stock issues to continue to adversely impact our earnings and financial position until the Company successfully completes a satisfactory refinancing or renegotiation of its credit agreements, which we anticipate to occur on or before the current maturity of the debt. While we can provide no assurance that a refinancing will occur on terms that will be acceptable to the Company, if at all, a satisfactory resolution of these issues continues to be a major priority of management.”
Firearms Training Systems, Inc. (OTC: FATS) designs and sells software and hardware simulation training systems that improve the skills of the world’s military, law enforcement and security forces. FATS training systems provide judgmental, tactical and combined arms experiences, utilizing company-produced weapons and simulators. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, Singapore, Netherlands and United Kingdom. FATS, an ISO 9000
certified company, celebrates its 20th anniversary in 2004. The company Web site is www.fatsinc.com.
Except for financial information contained in this press release, the matters discussed may consist of forward-looking statements under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking statements, including statements regarding future events or the future financial performance of the Company, is necessarily subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors including those discussed above are: general business and economic conditions; the Company’s success in competing for new contract awards; customer acceptance of and demand for the Company’s new products; receipt and delivery of a sufficient level of orders from new and existing customers as well as satisfactory completion of delivery of a sufficient portion of backlog; the Company’s overall ability to design, test, and introduce new products on a timely basis; the cyclical nature of the markets addressed by the Company’s products; the Company’s success in restructuring its debt obligations; and the risk factors listed from time to time in documents on file with the SEC. When used in this release, the words “believes,” “estimates,” “plans,” “expects,” “should,” “will,” “may,” “might,” “anticipates” or similar expressions as they relate to the Company, or its management, are intended to identify forward-looking statements. The Company, from time to time, becomes aware of rumors concerning the Company or its business. As a matter of policy, the Company does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and unsubstantiated information regarding the Company. The Company complies with Federal and State law applicable to disclosure of information concerning the Company. Investors may be at significant risk in relying on unsubstantiated information from other sources.
Selling, general and administrative 3,161 2,507 9,068 7,957 Research and development 766 1,007 2,013 2,557 Depreciation and amortization 102 209 335 719
Weighted average common shares outstanding—basic 70,153 70,153 70,153 70,153 Weighted average common shares outstanding—diluted 70,153 71,736 70,153 72,021
Cash and cash equivalents $ 2,726 $ 3,457 Restricted cash 2,558 1,439 Accounts receivable, net of allowance of $350 and $362 in December and March 2003, respectively 12,420 18,469 Income taxes receivable 310 647 Costs and estimated earnings in excess of billings on uncompleted contracts 6,410 4,697 Unbilled receivables 139 103 Inventories, net 12,914 10,059 Prepaid expenses and other current assets 1,577 1,643
Class A common stock, $0.000006 par value; 100,000 shares authorized, 70,153 shares issued and outstanding — — Additional paid-in capital 123,215 123,215 Stock warrants 613 613 Accumulated deficit (168,786 ) (166,219 ) Accumulated other comprehensive income (loss) 322 (103 )
Selling, general and administrative 3,161 2,507 9,068 7,957 Research and development 766 1,007 2,013 2,557 Depreciation and amortization 102 209 335 719 ------- ------- ------- -------
Net income (loss) attributable to common shareholders $ (80) $ 438 $(2,567) $1,692 ======= ======= ======= =======
Earnings per share
Basic income (loss) per share $(0.00) $ 0.01 $(0.04) $ 0.02 ======= ======= ======= =======
Diluted income (loss) per share $(0.00) $ 0.01 $(0.04) $ 0.02 ======= ======= ======= =======
Weighted average common shares outstanding - basic 70,153 70,153 70,153 70,153
Weighted average common shares outstanding - diluted 70,153 71,736 70,153 72,021 *T
-0- *T
FIREARMS TRAINING SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, March 31, ----------- --------- 2003 2003 ----------- --------- (in thousands)
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 2,726 $ 3,457 Restricted cash 2,558 1,439 Accounts receivable, net of allowance of $350 and $362 in December and March 2003, respectively 12,420 18,469 Income taxes receivable 310 647 Costs and estimated earnings in excess of billings on uncompleted contracts 6,410 4,697 Unbilled receivables 139 103 Inventories, net 12,914 10,059 Prepaid expenses and other current assets 1,577 1,643 --------- --------
Total current assets 39,054 40,514
Property and equipment, net 2,299 2,018
Other noncurrent assets 273 98 --------- --------
Total assets $ 41,626 $ 42,630 ========= ========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Long-term debt due within one year $ 41,013 $ 457 Manditorily redeemable preferred stock 29,741 - Accounts payable 4,985 5,248 Accrued liabilities 4,330 4,826 Accrued interest 929 861 Billings in excess of costs and estimated earnings on uncompleted contracts 1,326 1,277 Deferred revenue 767 1,854 Warranty and contract cost provision reserve - current 1,364 2,015 --------- --------
Total current liabilities 84,455 16,538
Long-term debt 79 39,858
Warranty and contract cost provision reserve - noncurrent 1,075 615
Total liabilities 86,262 85,124 --------- --------
Commitments and contingencies
Stockholders' deficit Class A common stock, $0.000006 par value; 100,000 shares authorized, 70,153 shares issued and outstanding - - Additional paid-in capital 123,215 123,215 Stock warrants 613 613 Accumulated deficit (168,786) (166,219) Accumulated other comprehensive income (loss) 322 (103) --------- --------
Total stockholders' deficit (44,636) (42,494) --------- --------
Total liabilities and stockholders' deficit $ 41,626 $42,630 ========= ========
*T
The corrected release reads:
FIREARMS TRAINING SYSTEMS, INC. REPORTS FY04 THIRD QUARTER REVENUE AND EARNINGS
Firearms Training Systems, Inc. (OTC: FATS) today reported earnings for the third quarter of its fiscal year ending March 31, 2004. Revenue for the third quarter was $16,479,000 versus $12,463,000 for the same period of the previous year. Third quarter 2004 net income (loss) applicable to common shareholders was a loss of ($80,000), or ($0.00) per diluted share, compared with income of $438,000, or $0.01 per diluted share for the same period of fiscal 2003. Year-to-date revenues were $45,027,000 versus $42,660,000 for the same period of the previous year. Year-to-date net income (loss) applicable to common shareholders was a loss of ($2,567,000), or ($0.04) per diluted share, compared with income of $1,692,000, or $0.02 per diluted share for the same period of fiscal 2003. "We are pleased to report substantially improved operations for the third quarter of our 2004 fiscal year," stated Ronavan R. Mohling, the Company's Chairman and Chief Executive Officer. "Our revenue increased substantially for both the quarter and the year-to-date periods ended December 31, 2003. During the third quarter, substantial increases in deliveries to U.S. military and law enforcement were only partially offset by a decrease in international sales due to a large delivery during the 2002 period. Additionally, previously undertaken cost control initiatives are beginning to produce positive results in both gross margin and operating income. However, as in the first and second quarters, our net results and earnings per share continue to be negatively impacted by the following:
-- We are incurring substantial increases in primarily non-cash interest expense associated with the extension of our debt;
-- Due to our required adoption of a new accounting standard during the first quarter, our interest expense now includes dividends on mandatorily redeemable preferred stock, which were previously reported as an adjustment to net income; and
-- Both of the above items are currently occurring without the benefit of substantial reductions included in the comparable prior periods due to the amortization of debt discount and restructuring liabilities that are no longer available.
Improved operations for the quarter ended December 31, 2003, however, were sufficient to produce positive income before the provision for income taxes. As of December 31, 2003, approximately $71 million in long-term debt and mandatorily redeemable preferred stock is classified as a current liability in our balance sheet due to its maturity date of October 15, 2004. We expect the interest and preferred stock issues to continue to adversely impact our earnings and financial position until the Company successfully completes a satisfactory refinancing or renegotiation of its credit agreements, which we anticipate to occur on or before the current maturity of the debt. While we can provide no assurance that a refinancing will occur on terms that will be acceptable to the Company, if at all, a satisfactory resolution of these issues continues to be a major priority of management." Firearms Training Systems, Inc. (OTC: FATS) designs and sells software and hardware simulation training systems that improve the skills of the world's military, law enforcement and security forces. FATS training systems provide judgmental, tactical and combined arms experiences, utilizing company-produced weapons and simulators. The company serves U.S. and international customers from headquarters in Suwanee, Georgia, with branch offices in Australia, Canada, Singapore, Netherlands and United Kingdom. FATS, an ISO 9000 certified company, celebrates its 20th anniversary in 2004. The company Web site is www.fatsinc.com.
Except for financial information contained in this press release, the matters discussed may consist of forward-looking statements under the Private Securities Litigation Reform Act of 1995. The accuracy of the forward-looking statements, including statements regarding future events or the future financial performance of the Company, is necessarily subject to a number of risks and other factors which could cause the actual results to differ materially from those contained in the forward-looking statements. Among such factors including those discussed above are: general business and economic conditions; the Company's success in competing for new contract awards; customer acceptance of and demand for the Company's new products; receipt and delivery of a sufficient level of orders from new and existing customers as well as satisfactory completion of delivery of a sufficient portion of backlog; the Company's overall ability to design, test, and introduce new products on a timely basis; the cyclical nature of the markets addressed by the Company's products; the Company's success in restructuring its debt obligations; and the risk factors listed from time to time in documents on file with the SEC. When used in this release, the words "believes," "estimates," "plans," "expects," "should," "will," "may," "might," "anticipates" or similar expressions as they relate to the Company, or its management, are intended to identify forward-looking statements. The Company, from time to time, becomes aware of rumors concerning the Company or its business. As a matter of policy, the Company does not comment on rumors. Investors are cautioned that in this age of instant communication and Internet access, it may be important to avoid relying on rumors and unsubstantiated information regarding the Company. The Company complies with Federal and State law applicable to disclosure of information concerning the Company. Investors may be at significant risk in relying on unsubstantiated information from other sources.
-0- *T
FIREARMS TRAINING SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts)
Three Months Ended Nine Months Ended December 31, December 31, --------------- ----------------- 2003 2002 2003 2002 --------------- -----------------
Selling, general and administrative 3,161 2,507 9,068 7,957 Research and development 766 1,007 2,013 2,557 Depreciation and amortization 102 209 335 719 ------- ------- ------- -------
Net income (loss) attributable to common shareholders $ (80) $ 438 $(2,567) $1,692 ======= ======= ======= =======
Earnings per share
Basic income (loss) per share $(0.00) $ 0.01 $(0.04) $ 0.02 ======= ======= ======= =======
Diluted income (loss) per share $(0.00) $ 0.01 $(0.04) $ 0.02 ======= ======= ======= =======
Weighted average common shares outstanding - basic 70,153 70,153 70,153 70,153
Weighted average common shares outstanding - diluted 70,153 71,736 70,153 72,021 *T
-0- *T
FIREARMS TRAINING SYSTEMS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, March 31, ----------- --------- 2003 2003 ----------- --------- (in thousands)
ASSETS (unaudited)
Current assets
Cash and cash equivalents $ 2,726 $ 3,457 Restricted cash 2,558 1,439 Accounts receivable, net of allowance of $350 and $362 in December and March 2003, respectively 12,420 18,469 Income taxes receivable 310 647 Costs and estimated earnings in excess of billings on uncompleted contracts 6,410 4,697 Unbilled receivables 139 103 Inventories, net 12,914 10,059 Prepaid expenses and other current assets 1,577 1,643 --------- --------
Total current assets 39,054 40,514
Property and equipment, net 2,299 2,018
Other noncurrent assets 273 98 --------- --------
Total assets $ 41,626 $ 42,630 ========= ========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
Long-term debt due within one year $ 41,013 $ 457 Manditorily redeemable preferred stock 29,741 - Accounts payable 4,985 5,248 Accrued liabilities 4,330 4,826 Accrued interest 929 861 Billings in excess of costs and estimated earnings on uncompleted contracts 1,326 1,277 Deferred revenue 767 1,854 Warranty and contract cost provision reserve - current 1,364 2,015 --------- --------
Total current liabilities 84,455 16,538
Long-term debt 79 39,858
Warranty and contract cost provision reserve - noncurrent 1,075 615
Total liabilities 86,262 85,124 --------- --------
Commitments and contingencies
Stockholders' deficit Class A common stock, $0.000006 par value; 100,000 shares authorized, 70,153 shares issued and outstanding - - Additional paid-in capital 123,215 123,215 Stock warrants 613 613 Accumulated deficit (168,786) (166,219) Accumulated other comprehensive income (loss) 322 (103) --------- --------
Total stockholders' deficit (44,636) (42,494) --------- --------
Total liabilities and stockholders' deficit $ 41,626 $42,630 ========= ========
*T
KEYWORD: GEORGIA INDUSTRY KEYWORD: GOVERNMENT AEROSPACE/DEFENSE EARNINGS SOURCE: FATS, Inc.
CONTACT INFORMATION: For FATS, Inc. Freebairn & Co. Media Brooke Wilson, 800/715-9435 bwilson@freebairn.com or FATS, Inc. IR Contact John Morelli, 800/813-9046 www.fatsinc.com
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