Laser Technology, Inc., Reports FY 2003 Operating Results
ENGLEWOOD, Colo., Dec. 29, 2003 -- Laser Technology, Inc. (AMEX:LSR) , a leading designer, manufacturer and marketer of pulse laser measuring systems for a variety of commercial and consumer applications, recently reported its financial results for the quarter and fiscal year ended September 30, 2003.
Net sales for the fiscal year ended September 30, 2003 were $10,917,568 compared to $10,577,217 realized during the fiscal year ended September 30, 2002, representing a 3% increase. In 2003, increases in our domestic Traffic Safety and international Professional Measurement sales had the greatest impact on total revenues. These increases offset a decrease in Consumer and other product sales.
Sales of our Traffic Safety products increased 3% to $7,391,252 in 2003 from $7,147,874 in 2002. North American Traffic Safety product sales increased 8.5% to $4,894,756 in 2003 from $4,512,664 in 2002. Domestic government agencies shifted spending priorities more toward community safety related activities which benefited sales. This increase was partially offset by a 5% decrease in international Traffic Safety sales to $2,496,496 in 2003 from $2,635,210 in 2002 reflecting delays in certain government spending internationally.
Overall sales of our Professional Measurement products increased 8% to $2,277,063 in 2003 from $2,111,526 in 2002. North American Professional Measurement product sales decreased 12% to $1,243,246 in 2003 from $1,412,681 in 2002. Interruptions caused by the reorganization of the sales force was the primary reason for this decline. International sales of our Professional Measurement products increased 48% to $1,033,817 in 2003 from $698,845 in 2002. As the international sales force has matured, it has more effectively communicated the value of our products which has strengthened sales.
International sales in 2003 were $3,548,014 compared to $3,619,040 realized in 2002 representing a 2% decline. Sales internationally comprised approximately 32% of total revenues in 2003 compared to 34% of our total revenues in 2002.
Gross profit as a percentage of sales grew to 52% for 2003 compared to 50% in 2002. Higher sales volume positively impacted our gross margins.
Royalty income earned is derived primarily from our agreement with Bushnell for sales of the Yardage Pro series of consumer laser range finders. Royalty income decreased 17% to $830,637 in 2003 from $998,392 in 2002 resulting primarily from lower per unit pricing and increased competition.
Total operating expenses increased approximately 13% to $7,673,091 in 2003 from $6,820,174 in 2002. Higher legal fees incurred in conjunction with the Asia Optical/Nikon patent suit, and additional expenses associated with the formation of the Special Committee of the Board of Directors, their legal fees, and outside financial appraisal advice increased operating expenses. Litigation expenses associated with the patent suit were approximately $783,000 and expenses associated with the Special Committee were approximately $570,000 for the fiscal year. As a percentage of net sales, total operating expenses increased to 70% in 2003 from 64% in 2002.
A loss from operations of $1,191,130 was offset by $2,400,000 of income derived from our litigation settlement and other income of $42,806 in 2003 resulted in a net income before taxes of $1,251,676 in 2003 compared to a loss before taxes of $469,022 in 2002. After taxes on income, we realized net income of $777,605 or $.14 basic earnings per share in 2003 compared to a net loss of $285,377 or $.05 basic loss per share in 2002.
Working capital was positively impacted in 2003 by our litigation settlement. Our net working capital at September 30, 2003 was $9,167,879 as compared to working capital of $8,196,231 at September 30, 2002, an increase of $971,648. Current assets exceeded current liabilities by a ratio of 7.6 to 1. Furthermore, the acid test ratio (ratio of current assets minus inventories and prepaid expenses to liabilities) exceeded 5 to 1. Thus, the present working capital is expected to adequately meet our needs for at least the next twelve months.
Laser Technology, Inc. manufactures and markets laser-based speed and distance measuring instruments, which utilize proprietary technology developed by the Company. Its products are sold worldwide and are used in a wide variety of applications, including traffic speed enforcement, natural resource management, GIS mapping, surveying, consumer sporting/recreational activities, and industrial control systems. The Company's headquarters and primary manufacturing facilities are located in Englewood, Colorado.
The common stock of Laser Technology, Inc. is traded on the American Stock Exchange under the ticker symbol "LSR."
(Financial Highlights to Follow)
LASER TECHNOLOGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
ASSETS
September 30,
2003 2002
CURRENT ASSETS
Cash and cash equivalents $5,733,424 $3,612,637
Trade accounts receivable (Note 8) 1,791,561 1,835,641
Inventories (Note 3) 2,719,036 2,846,880
Deferred income tax benefit (Note 6) 203,500 236,903
Prepaids and other current assets 104,858 95,210
Total Current Assets 10,552,379 9,116,303
PROPERTY AND EQUIPMENT, (NET) (Note 4) 371,997 540,085
OTHER ASSETS
Other assets 1,011,305 1,037,260
Total Other Assets 1,011,305 1,037,260
TOTAL ASSETS $11,935,681 $10,693,648
LASER TECHNOLOGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30,
2003 2002
CURRENT LIABILITIES
Accounts payable $542,581 $651,996
Accrued expenses 841,919 268,076
Notes payable - current (Note 9) -- --
Total Current Liabilities 1,384,500 920,072
Total Liabilities 1,384,500 920,072
COMMITMENTS AND CONTINGENCIES (Note 7)
STOCKHOLDERS' EQUITY (Note 5)
Preferred stock; par value $0.01;
2,000,000 shares authorized; 0 and 0
shares issued and outstanding,
respectively -- --
Common stock; par value $0.01; 25,000,000
shares authorized, 5,710,867 shares
issued and 5,486,217 outstanding. 57,109 57,109
Additional paid-in capital 10,314,226 10,314,226
Treasury stock at cost, 224,650 (194,259) (194,259)
Retained earnings 374,105 (403,500)
Total Stockholders' Equity 10,551,181 9,773,576
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $11,935,681 $10,693,648
LASER TECHNOLOGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
For the Years Ended
September 30,
2003 2002 2001
SALES, NET (Note 8) $10,917,568 $10,577,217 $11,472,459
COST OF GOODS SOLD 5,266,244 5,249,501 5,416,379
Gross Profit 5,651,324 5,327,716 6,056,080
OTHER REVENUES
Royalty and licensing revenues 830,637 998,392 1,033,129
TOTAL OPERATING INCOME 6,481,961 6,326,108 7,089,209
OPERATING EXPENSES
General and administrative 7,673,091 6,820,174 6,769,882
INCOME (LOSS) FROM OPERATIONS (1,191,130) (494,066) 319,327
OTHER INCOME
Interest income 42,806 25,044 203,400
Settlement income, (Note 9) 2,400,000 -- --
Total Other Income 2,442,806 25,044 25,044
INCOME (LOSS) BEFORE INCOME
TAXES 1,251,676 (469,022) 522,727
Income tax expense (benefit)
(Note 6) 474,071 (183,645) 113,614
NET INCOME (LOSS) $777,605 $(285,377) $409,113
BASIC INCOME (LOSS) PER SHARE $0.14 $(0.05) $0.07
DILUTED INCOME (LOSS) PER SHARE $0.12 $(0.05) $0.06
BASIC WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 5,486,217 5,486,217 5,446,633
DILUTED WEIGHTED AVERAGE SHARES 6,419,317 5,486,217 6,401,833
LASER TECHNOLOGY, INC. AND SUBSIDIARIES
Consolidated Statement Of Operations
Three Months Ended
Sept. 30, Sept. 30,
2003 2002
REVENUES $2,991,754 $3,161,923
LESS COST OF GOODS SOLD 1,499,353 1,576,367
Gross profit 1,492,401 1,585,556
OTHER REVENUES
Royalty & licensing income 347,052 477,151
TOTAL OPERATING INCOME 1,839,453 2,062,707
OPERATING EXPENSES
Total operating expenses 1,775,944 1,637,315
INCOME (LOSS) FROM OPERATIONS
63,509 389,392
Settlement Income 2,400,000 --
Other income (expense), net 14,297 (33,295)
Pre-Tax Income (loss) 2,477,806 (356,097)
Taxes on Income (benefit) 910,260 113,398
Net income (loss) $1,567,546 $242,699
Earnings (loss) per common share:
Basic $0.27 $0.04
Diluted $0.27 $0.04
Weighted average number of
shares outstanding:
Basic 5,486,217 5,486,217
Diluted 6,419,317 5,486,217