Message #5 From:
NewsBot Date: November 10, 2005 11:01:00 AM
ABHH News American Bank Note Holographics Reports Third Quarter Financial Results
ROBBINSVILLE, N.J.--(BUSINESS WIRE)--Nov. 10, 2005--American Bank Note Holographics, Inc. ("ABNH" or the "Company") (OTC Bulletin Board: ABHH) a world leader in the origination, production and marketing of holograms for security applications, today announced financial results for the third quarter and nine months ended September 30, 2005.
Sales in the third quarter of 2005 were $9.0 million, compared with $5.8 million in the third quarter of 2004, an increase of $3.2 million or 54%. Sales for the first nine months of 2005 totaled $22.2 million, compared with $15.7 million for the first nine months of 2004, an increase of $6.5 million or 41%.
Net income for the third quarter of 2005 was $1.1 million, or $0.06 per fully diluted share, compared with net income of $0.6 million, or $0.03 per fully diluted share, for the third quarter of 2004. Net income for the first nine months of 2005 was $2.2 million, or $0.11 per fully diluted share, compared with net income of $1.3 million, or $0.07 per fully diluted share for the first nine months of 2004.
Kenneth H. Traub, President and CEO of ABNH, commented, "The dramatic growth in our business reflects our commitment to providing superior solutions to counterfeiting and fraud for our customers. This year we have made significant investments in our infrastructure, organization, technology and working capital in order to support the increasing global demand for improved product, card and document security solutions. In the card industry, we have expanded our roll-out of HoloMag(TM) which has received broad global acceptance as it transforms magnetic tape from a widely available commodity to a tightly controlled security product. We are also pleased to have launched important new programs for secure identity documents while we have expanded certain product authentication programs."
Mark J. Bonney, Executive Vice President and CFO of the Company noted, "During the third quarter, we substantially completed the move and consolidation of our operations into our new facility in Robbinsville, New Jersey. Since the facilities located in Elmsford, New York and Huntingdon Valley, Pennsylvania were not completely vacated and available for sublease by the end of the third quarter, the costs relating to the abandonment of those facilities will be recorded in the fourth quarter. We currently anticipate taking a charge in the fourth quarter of approximately $2.0 million which will be recorded on the 'Facility consolidation' line of our Statement of Operations. Our strong financial performance this year is particularly noteworthy in light of the disruptions and expense associated with the Company's move and consolidation. In addition to those costs which are separately accounted for in the 'Facility consolidation' line item, we also incurred expenses that are included in cost of goods sold and selling and administrative expenses associated with the consolidation."
About American Bank Note Holographics, Inc.
American Bank Note Holographics is a world leader in the origination, production, and marketing of holograms. The Company's products are used primarily for security applications such as counterfeiting protection of transaction cards, identity documents, documents of value, pharmaceuticals and other consumer and industrial products. The Company's headquarters is in Robbinsville, NJ. For more information, visit www.abnh.com.
ABNH Forward-Looking Statement
This news release includes forward-looking statements that involve risks and uncertainties. Although the Company believes such statements are reasonable, it can make no assurance that such statements will prove to be correct. Such statements are subject to certain factors that may cause results to differ materially from the forward-looking statements. Such factors include the risk factors discussed in the Company's filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K, a copy of which may be obtained from the Company without charge. The Company undertakes no obligation to publicly release results of any of these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.
This release and prior releases are available on the ABNH website at www.abnh.com.
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
BALANCE SHEETS
(In thousands, except share data)
September 30, December 31,
2005 2004
-------------- -------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 9,457 $ 11,357
Short-term investments -- 1,989
Accounts receivable, net of allowance
for doubtful accounts of $250 and $180 6,092 3,889
Inventories, net 6,018 3,394
Deferred income taxes, net 1,120 983
Prepaid expenses 478 317
------------- ------------
Total current assets 23,165 21,929
Machinery, equipment and leasehold
improvements, net of accumulated
depreciation and amortization of $10,585
and $10,062 6,994 3,172
Other assets 89 110
------------- ------------
Total Assets $ 30,248 $ 25,211
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 3,784 $ 1,519
Accrued expenses 2,233 2,040
Customer advances 68 69
Income taxes payable 915 1,058
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Total current liabilities 7,000 4,686
Other long-term liabilities 1,370 1,211
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Total liabilities 8,370 5,897
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Commitments and contingencies
Stockholders' Equity:
Preferred stock, authorized 5,000,000
shares; no shares issued or outstanding -- --
Common stock, par value $.01 per share,
authorized 40,000,000 shares; issued
and outstanding 18,647,469 shares and
18,515,907 shares 187 185
Additional paid-in capital 24,444 24,058
Accumulated deficit (2,753) (4,929)
------------- ------------
Total Stockholders' Equity 21,878 19,314
------------- ------------
Total Liabilities and Stockholders'
Equity $ 30,248 $ 25,211
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AMERICAN BANK NOTE HOLOGRAPHICS, INC.
STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2005 2004 2005 2004
--------- ---------- --------- ---------
Revenue:
Sales $ 8,959 $ 5,808 $ 22,216 $ 15,749
Royalty income -- -- 10 13
-------- --------- -------- --------
8,959 5,808 22,226 15,762
Costs and expenses:
Cost of goods sold
(excluding depreciation and
amortization shown below) 4,227 2,413 10,187 6,943
Selling and administrative 2,239 1,846 6,370 5,280
Research and development 291 319 872 967
Depreciation and
amortization 127 171 755 495
Facility consolidation 278 93 600 93
-------- --------- -------- --------
7,162 4,842 18,784 13,778
-------- --------- -------- --------
Operating income 1,797 966 3,442 1,984
Other income:
Interest income 61 29 183 77
Patent agreement -- -- -- 178
-------- --------- -------- --------
61 29 183 255
-------- --------- -------- --------
Income before provision for
income taxes 1,858 995 3,625 2,239
Provision for income taxes 742 397 1,449 895
-------- --------- -------- --------
Net income $ 1,116 $ 598 $ 2,176 $ 1,344
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Net income per share:
Basic $ 0.06 $ 0.03 $ 0.12 $ 0.07
======== ========= ======== ========
Diluted $ 0.06 $ 0.03 $ 0.11 $ 0.07
======== ========= ======== ========
Weighted average number of
shares:
Basic 18,618 18,484 18,562 18,484
======== ========= ======== ========
Diluted 19,653 18,808 19,388 18,823
======== ========= ======== ========
