|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||51.25 - 51.25|
|52 Week Range||48.30 - 51.25|
|Beta (5Y Monthly)||1.21|
|PE Ratio (TTM)||34.21|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
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NEW YORK, NY / ACCESSWIRE / February 12, 2021 / ADDvantage Technologies Group, Inc. (NASDAQ:AEY) will be discussing their earnings results in their 2021 First Quarter Earnings call to be held on February 12, 2021 at 9:00 AM Eastern Time.
CARROLLTON, Texas, Feb. 11, 2021 (GLOBE NEWSWIRE) -- ADDvantage Technologies Group, Inc. (NASDAQ: AEY) (“ADDvantage Technologies” or the “Company”) today reported its financial results for the three months ended December 31, 2020. “The first fiscal quarter was impacted by the typical seasonality in our wireless segment, as the winter weather, the holidays and the lack of specialty work impacted revenue and margins,” commented Joe Hart, Chief Executive Officer. “While revenue was down $1.2 million year over year, gross margins were improved and we generated the same $3.6 million in gross profit as in the prior year even at lower revenue levels, reflecting the improved operational efficiency of our business. This was accomplished in spite of the impact to our Triton Datacom office products business of office shut-downs across the US, sporadic wireless crew quarantines as a result of the pandemic, and work slowdowns during the transition between the end of 4G and the construction buildup for 5G.” “The approximate $500,000 sequential improvement in wireless revenues over Q4 is encouraging,” added Hart. “Our sales and bid activity are picking up as we continue to see accelerating demand in anticipation of the 5G roll-out, though the velocity has yet to reach desired levels. We are prudently ramping our crew capacity in anticipation of expected demand, an initiative we undertook based on a high level of confidence that we will win projects to effectively utilize this capacity. We currently expect the second half of calendar 2021 to benefit from the higher volumes, and our business is scaled to drive improvements in profitability based on these expected levels.” “The recent FCC C-Band Auction raised over $81 billion as both existing Wireless and Broadband Carriers pursued the additional 3.7-3.98GHZ spectrum made available to help facilitate the expected 5G growth and network capacity needs. We have multi-year service agreements in place with all of the major players in this auction and are well positioned to assist them in their growth plans throughout the Southwest and Midwest.” “The Company is encouraged by reports that DISH, the newly approved fourth Wireless Carrier, has secured leases on over 20,000 existing tower sites owned by Crown Castle and gained access to over 300,000 sites owned by Vertical Bridge,” continued Hart. “According to Fierce Wireless reports, Dish has committed to build a cloud-native, 5G, nationwide wireless network and has committed to build at least 15,000 sites to meet its minimum requirement to cover 70% of the U.S. population by mid-2023.” “At the same time, the hard work of last year to rationalize the structure of our Telco business has delivered the desired results. Telco revenue is up approximately 5% year over year, and has increased slightly quarter over quarter, even under the continuing pandemic conditions affecting the workforce,” continued Mr. Hart. “We have confidence in our plan as we move through 2021 with an improved balance sheet, an experienced management team, and are strategically well-positioned to capture a meaningful share of the 5G infrastructure buildout that is expected to be realized this year.” Financial Results for the Three Months Ended December 31, 2020 Compared to Prior Year First quarter sales were $12.7 million for three months ended December 31, 2020, a decrease of $1.2 million, or 9% compared to $14.0 million for the same period last year. The decrease in sales was due to declines in sales in the Wireless segment of $1.6 million, partially offset by an increase in Telco sales of $0.3 million. Gross profit increased $0.04 million to $3.63 million for three months ended December 31, 2020 compared to $3.59 million for the same period last year. The changes in gross profit were due to an increase in the Telco segment of $0.30 million, offset by a Wireless segment decrease of $0.26 million. Operating expenses decreased $0.08 million, or 4%, to $2.0 million for the three months ended December 31, 2020 from $2.1 million the same period last year. The decrease in operating expenses was due to the Wireless segment decrease of $0.23 million, partially offset by increases in the Telco segment of $0.15 million. SG&A expense increased $0.44 million, or 16%, to $3.2 million for the three months ended December 31, 2020 from $2.8 million for the same period last year. The increase in SG&A expense relates to increased sales costs of $0.18 million and increased non-cash stock compensation of approximately $0.26 million. Net loss for the three months ended December 31, 2020 was $2.0 million, or a loss of $0.16 per diluted share, an increase of $0.2 million compared with a net loss of $1.7 million, or a loss of $0.17 per diluted share for the same quarter last year. Adjusted EBITDA loss for the three months ended December 31 2020 was $1.3 million compared with an Adjusted EBITDA loss of $1.3 million for the same quarter last year. Balance sheet Cash and cash equivalents were $5.7 million as of December 31, 2020, compared with $8.4 million as of September 30, 2020. As of December 31, 2020, the Company had net inventories of $6.2 million, compared with $5.6 million as of September 30, 2020. Outstanding debt decreased by $1.3 million to $6.7 million as of December 31, 2020, comprised of $2.8 million on a revolving line of credit, $2.9 million of notes payable under our Payroll Protection Program (PPP) loan, and $1.0 million in financing leases, compared with $8.0 million at September 30, 2020. The Company has applied for forgiveness of the PPP loan. During the first quarter, the Company renewed its revolving bank line of credit for one year to a maturity date of December 17, 2021. As part of this renewal, capacity on the revolving bank line of credit remained $4.0 million, or the sum of 80% of eligible accounts receivable and 60% of eligible inventory, as defined in the loan agreement. As of December 31, 2020, $2.8 million has been drawn on the revolving bank line. Earnings Conference Call The Company will host a conference call on Friday, February 12th, at 9 a.m. Eastern Time. Webcast: www.addvantagetechnologies.comToll-free Dial-in Number:1-855-327-6837International Dial-in Number:1-631-891-4304Conference ID:10012908 Replay number:1-844-512-2921 (domestic) or 1-412-317-6671 (international)Available through: February 26, 2021Access code:10012908 An online archive of the webcast will be available on the Company's website for 30 days following the call. About ADDvantage Technologies Group, Inc. ADDvantage Technologies Group, Inc. (Nasdaq: AEY) is a communications infrastructure services and equipment provider operating a diversified group of companies through its Wireless Infrastructure Services and Telecommunications segments. Through its Wireless segment, Fulton Technologies provides turn-key wireless infrastructure services including the installation, modification and upgrading of equipment on communication towers and small cell sites for wireless carriers, national integrators, tower owners and major equipment manufacturers. Through its Telecommunications segment, Nave Communications and Triton Datacom sell equipment and hardware used to acquire, distribute, and protect the communications signals carried on fiber optic, coaxial cable and wireless distribution systems. The Telecommunications segment also offers repair services focused on telecommunication equipment and recycling surplus and related obsolete telecommunications equipment. ADDvantage operates through its subsidiaries, Fulton Technologies, Nave Communications, and Triton Datacom. For more information, please visit the corporate web site at www.addvantagetechnologies.com. Cautions Regarding Forward-Looking Statements The information in this announcement may include forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments that the Company expects or anticipates will or may occur in the future, are forward-looking statements. These statements are subject to risks and uncertainties, which could cause actual results and developments to differ materially from these statements. A complete discussion of these risks and uncertainties is contained in the Company’s reports and documents filed from time to time with the Securities and Exchange Commission. -- Tables follow – ADDvantage Technologies Group, Inc.Consolidated Balance Sheets(in thousands, except share amounts)(Unaudited) December 31, 2020 September 30, 2020 Assets Current assets: Cash and cash equivalents$5,401 $8,265 Restricted cash265 108 Accounts receivable, net of allowances of $250, respectively4,810 3,968 Unbilled revenue1,151 590 Promissory note, current— 1,400 Income tax receivable1,248 1,283 Inventories, net of allowances of $3,054, respectively6,202 5,576 Prepaid expenses and other current assets1,011 884 Total current assets20,088 22,074 Property and equipment, at cost4,311 4,220 Less: Accumulated depreciation(1,785) (1,586) Net property and equipment2,525 2,634 Right-of-use assets3,505 3,758 Promissory note, long-term2,270 2,375 Intangibles, net of accumulated amortization1,346 1,425 Goodwill58 58 Other assets179 179 Total assets$29,971 $32,503 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable$3,528 $3,472 Accrued expenses1,070 1,319 Deferred revenue126 113 Bank line of credit2,800 2,800 Notes payable, current2,178 1,709 Right-of-use obligations, current1,263 1,275 Finance lease obligations, current272 285 Other current liabilities56 41 Total current liabilities11,293 11,014 Note payable751 2,440 Right-of-use obligations3,016 3,310 Finance lease obligations737 791 Other liabilities— 15 Total liabilities15,797 17,570 Shareholders’ equity: Common stock, $0.01 par value; 30,000,000 shares authorized; 12,366,593 shares issued and outstanding, and 11,822,009 shares issued and outstanding, respectively124 118 Paid in capital(1,379) (2,567) Retained earnings15,429 17,382 Total shareholders’ equity14,174 $14,933 Total liabilities and shareholders’ equity$29,971 $32,503 See notes to unaudited consolidated financial statements. ADDvantage Technologies Group, Inc.Consolidated Statement of Operations(in thousands, except share and per share amounts)(Unaudited) Three Months Ended December 31, 2020 2019Sales$12,749 $13,962 Cost of sales9,120 10,370 Gross profit3,629 3,592 Operating expenses2,047 2,131 Selling, general and administrative expenses3,215 2,776 Depreciation and amortization expense281 448 Loss from operations(1,914) (1,763) Other income (expense): Interest income48 89 Income from equity method investment— 22 Other expense(19) (57) Interest expense(68) (24) Total other income (expense), net(39) 30 Loss before income taxes(1,953) (1,733) Benefit for income taxes— (15) Net loss$(1,953) $(1,718) Basic and diluted loss per share: Net loss$(0.16) $(0.17) Shares used in per share calculation: Basic and diluted12,149,778 10,361,292 See notes to unaudited consolidated financial statements. Non-GAAP Financial Measure Adjusted EBITDA is a supplemental, non-GAAP financial measure. EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA as presented also excludes restructuring charge, stock compensation expense, other income, other expense, interest income and income from equity method investment. Adjusted EBITDA is presented below because this metric is used by the financial community as a method of measuring our financial performance and of evaluating the market value of companies considered to be in similar businesses. Since Adjusted EBITDA is not a measure of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance. Adjusted EBITDA may not be comparable to similarly titled measures employed by other companies. In addition, Adjusted EBITDA is not necessarily a measure of our ability to fund our cash needs. A reconciliation by segment of loss from operations to Adjusted EBITDA follows: Three Months EndedDecember 31, 2020 Three Months EndedDecember 31, 2019 Wireless Telco Total Wireless Telco TotalLoss from operations$(1,105) $(809) $(1,914) $(782) $(981) $(1,763) Depreciation and amortization expense152 129 281 146 301 447 Stock compensation expense140 175 315 9 9 18 Adjusted EBITDA$(813) $(505) $(1,318) $(627) $(671) $(1,298)
(Bloomberg) -- Europe’s space industry will try to match Chinese advances in secure communications to gain an edge over satellite broadband networks including British-backed OneWeb, France’s most senior space official said.Chinese scientists have developed what they say is an “unhackable” form of global satellite communications that draws upon quantum physics to encrypt signals, and launched a satellite in 2016 to test the nascent technology.European space officials say similar systems could be used to secure a planned low-earth orbit satellite network, and give it a capability lacked by competing space constellations such as Elon Musk’s Starlink and OneWeb, which was rescued from bankruptcy last year by Britain’s government and Indian billionaire Sunil Mittal.“Evidently we must look at technologies that are different from those used by constellations being sent into orbit and which were conceived about a decade ago,” the head of France’s CNES space agency, Jean-Yves Le Gall, said in an online press conference on Tuesday.Europe Wants Its Own Alternative to Musk’s Starlink Network Low-earth orbit networks offer much faster internet connections than conventional space communications operated from geostationary satellites in more distant orbits. However, the route to profitability is unclear as the ground-based terminals are complex and costly. Le Gall said European governments are keen to gain a foothold in quantum technology to ensure the secure communications over the planned network, which would arrive relatively late in the game. Starlink is already being tested with potential customers and OneWeb aims to be offering global broadband services within 18 months. Airbus RoleThe project spearheaded by EU Internal Market Commissioner Thierry Breton would aim to give Europe a homegrown capability in low-earth orbit just as its Galileo geo-positioning system rivals the U.S. military’s GPS.Aerospace giant Airbus SE would lead a consortium to build the network alongside Thales Alenia Space, Germany’s OHB SE, satellite operators Eutelsat Communications SA and SES SA and space companies Telespazio and Arianespace, under the plans reported by newspaper Les Echos last month. It said the new constellation would cost an estimated 6 billion euros ($7.4 billion)Breton will give further details on the project at a conference next week, said Le Gall.The U.K. committed $500 million to the OneWeb rescue partly as a way to boost its global communication capabilities after Brexit cut it out of the development of Galileo’s most secure military-level signals. Le Gall said the EU is ready to begin talks to evaluate what level of access Britain could still be granted to Galileo as a partner state, like Norway or the U.S. “For now it’s premature to say how it will end. Clearly today the U.K. is out of the EU. So it’s out of Galileo permanently and now it wants to return, but it would do so as an associate state, because it’s not a member state,” Le Gall said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.