TMCnet News

Costar Technologies, Inc. Announces Preliminary Financial Results for the Fourth Quarter and Year Ended December 31, 2014
[March 31, 2015]

Costar Technologies, Inc. Announces Preliminary Financial Results for the Fourth Quarter and Year Ended December 31, 2014


COPPELL, Texas, March 31, 2015 /PRNewswire/ -- Costar Technologies, Inc. (the "Company") (OTC Markets Group: CSTI), announced preliminary year-end 2014 financial results in advance of the full release of their audited financials, which are expected in mid to late April.

Highlights for the Year Ended December 31, 2014

  • The Company acquired the CohuHD division from Cohu, Inc. for approximately $10,000.
  • Earnings increased by 43% to $2,725, or $1.77 per share, based on the Company's 1,543 weighted average fully diluted shares outstanding. The $818 increase, or $0.52 per share, compared to earnings of $1,907, or $1.25 per fully diluted share in FY 2013.
  • Revenue increased 36% to $36,051, from $26,476 in FY 2013.
  • Positive cash flow of approximately $5,500 from operating activities allowed the Company to pay down bank debt by $2,486 in the last six months, to $3,219.

James Pritchett, President and Chief Executive Officer of the Company, stated, "We are pleased with the strong contribution that CohuHD made to the Company in 2014. After aligning sales strategies this past year, we continue to be encouraged by the many opportunities this combination presents. We look to maintain the momentum of 2014 by expanding our footprint with our existing customer base through our increasingly broad product line. We believe this is the best way to continue to create value for our shareholders."

Financial Results, Fourth Quarter of 2014 as Compared to Fourth Quarter of 2013

Revenue for the fourth quarter of 2014 totaled $10,492, as compared to revenue of $4,331 for the fourth quarter of the prior year, an increase of approximately 142%. The Company's new subsidiary, CohuHD, generated approximately $5,284 in revenue during the period.  Excluding CohuHD, the 20% revenue increase was due to increased demand for the Company's network product. 

Gross profit for the fourth quarter of 2014 totaled $3,993. This compares to gross profit of $923 for the fourth quarter of 2013, an increase of 333%. The majority of the increase was due to the acquisition of CohuHD, but increased sales of the Company's higher margin network product was also a strong contributor.

Selling, general and administrative expenses for the fourth quarter of 2014 totaled $3,588. This compares to selling, general and administrative expenses of $1,163 for the fourth quarter of 2013, an increase of 209%. The majority of the increase was due to CohuHD.  The Company also fully accrued for its vacation liability in accordance with FASB ASC 43, Accounting for Compensated Absences, which added $104 to SG&A.

Net income for the fourth quarter of 2014 was approximately $254, or $0.16 fully diluted earnings per share. This compares to net (loss) for the fourth quarter of 2013 of $(177), or $(0.12) fully diluted earnings per share.  CohuHD contributed approximately $438 toward the Company's profits in the 2014 quarter.

Financial Results, Year Ended December 31, 2014 Compared to Year Ended December 31, 2013

Revenue for the year ended December 31, 2014 totaled $36,051, an increase of 36% as compared to revenue of $26,476 for the same period last year. CohuHD accounted for $11,256 of the increase.

Gross profit for the year ended December 31, 2014 totaled $13,562. This compares to gross profit of $7,467 for the year ended December 31, 2013. The majority of the increase in gross profit was due to the acquisition of CohuHD and the industry transition to network product.

Selling, general and administrative expenses for the year ended December 31, 2014 totaled $10,524. This compares to selling, general and administrative expenses of $5,598 for the year ended December 31, 2013, an increase of 88%. The majority of the increase was due to CohuHD and the related acquisition costs of $397.

Net income for the year ended December 31, 2014 was approximately $2,725, or $1.77 fully diluted earnings per share, as compared to net income of $1,907, or $1.25 fully diluted earnings per share for the year ended December 31, 2013. CohuHD contributed approximately $1,458 to the increase. 

The Company expects to release its audited financials in mid to late April. The transfer of tax work papers from the Company's prior accountant took longer than anticipated, which delayed the finalization of the tax work required to complete the audit. While management believes material changes to the results are unlikely, the results are preliminary and subject to change.

About Costar Technologies, Inc.

Costar Technologies, Inc. develops, designs and distributes a range of security solution products including surveillance cameras, lenses, digital video recorders and high-speed domes. The Company also develops, designs and distributes industrial vision products to observe repetitive production and assembly lines, thereby increasing efficiency by detecting faults in the production process. Headquartered in Coppell, Texas, the Company's shares currently trade on the OTC Markets Group under the ticker symbol "CSTI".

Cautionary Statement Regarding Forward Looking Statements

This document contains forward-looking statements that involve risks and uncertainties, as well as assumptions, that if they never materialize or prove incorrect, could cause the results of the Company to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements generally are identified by the words "expects," "anticipates," "believes," "intends," "estimates," "should," "would," "strategy," "plan" and similar expressions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The risks, uncertainties and assumptions include developments in the marketplace for our products, competition, related products and services and general economic conditions, as well as other risks and uncertainties. Accordingly, we cannot give assurance that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company.

 





COSTAR TECHNOLOGIES, INC. AND SUBSIDIARIES


CONSOLIDATED BALANCE SHEETS

(AMOUNTS SHOWN IN THOUSANDS)





December 31, 2014


December 31, 2013



(Unaudited)


(Reviewed)






ASSETS








Current assets







   Cash 


$



$

1,637

   Accounts receivable, less allowance for doubtful accounts







      of $75 in 2014 and 2013



7,086



2,136

   Inventories, net of reserve for obsolescence







      of $379 in 2014 and 2013



7,629



7,180

   Promissory note - current






86

   Prepaid expenses



307



207


Total current assets



15,022



11,246








Non-current assets







   Property and equipment, net



397



69

   Deferred financing costs, net



97




   Trade names, net



2,464



925

   Distribution agreement, net



844



918

   Customer relationships, net



799



80

   Covenant not to compete



18



14

   Goodwill



2,063












Total assets


$

21,704


$

13,252















LIABILITIES AND STOCKHOLDERS' EQUITY





















Current liabilities







   Accounts payable


$

3,499


$

2,448

   Accrued expenses and other



1,913



832

   Line of credit



519




   Short-term debt



600




   Contingent purchase price



128





Total current liabilities



6,659



3,280








Long-Term liabilities







   Deferred tax liability



87




   Long-term debt



2,100





Total long-term liabilities



2,187












Total liabilities



8,846



3,280















Stockholders' Equity







   Preferred stock







   Common stock



3



3

   Additional paid in capital



156,073



155,912

   Accumulated deficit



(138,697)



(141,422)








Less common stock held in treasury



(4,521)



(4,521)


Total stockholders' equity



12,858



9,972









Total liabilities and stockholders' equity


$

21,704


$

13,252
















 

 


COSTAR TECHNOLOGIES, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS

(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)






Three Months Ended December 31,



Years Ended December 31,





2014



2013



2014



2013





(Unaudited)



(Unaudited)



(Unaudited)



(Reviewed)















Net revenues


$

10,492


$

4,331


$

36,051


$

26,476

Cost of revenues



6,499



3,408



22,489



19,009















Gross profit



3,993



923



13,562



7,467















Selling, general and administrative expenses



2,835



1,108



8,472



5,374

Engineering and development expense



753



55



1,655



224

Transaction and related expense









397








3,588



1,163



10,524



5,598















Income (loss) from operations



405



(240)



3,038



1,869















Other income (expenses)














Interest expense



(39)



(1)



(93)



(52)


Other income and expense, net



(29)



65



(26)



105

Total other income (expenses), net



(68)



64



(119)



53















Income (loss) before taxes



337



(176)



2,919



1,922

Current income tax provision



75



1



107



15

Deferred income tax provision



8






87


















Net income (loss)


$

254


$

(177)


$

2,725


$

1,907





























Net income (loss) per share:














Basic


$

0.17


$

(0.12)


$

1.86


$

1.31






























Diluted


$

0.16


$

(0.12)


$

1.77


$

1.25





























Weighted average shares outstanding














Basic



1,464



1,457



1,462



1,453






























Diluted



1,545



1,534



1,543



1,530





























 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/costar-technologies-inc-announces-preliminary-financial-results-for-the-fourth-quarter-and-year-ended-december-31-2014-300058956.html

SOURCE Costar Technologies, Inc.


[ Back To TMCnet.com's Homepage ]