CUI Global Reports Unaudited Consolidated (Third Quarter 2013) Revenue of $17,213,757

13 Nov, 2013, 17:03 ET from CUI Global, Inc.

TUALATIN, Ore., Nov. 13, 2013 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative products and technologies, today reported unaudited results for the third quarter ended September 30, 2013.

(Logo: http://photos.prnewswire.com/prnh/20120320/FL72629LOGO) For the nine months ended September 30, 2013, CUI Global produced consolidated total revenues of $45,424,208.  The numbers demonstrate that year-to-date ("YTD") gross revenues grew 55% year-over-year, when compared to the nine months ended September 30, 2012 ($29,193,827), before the acquisition of Orbital-UK and associated accretive revenues.

The company had $18,716,542 of cash and cash equivalents and $10,882,682 of short term investments as of September 30, 2013 – these figures represent a quarter-over-quarter increase of $1,493,675 from Second Quarter 2013 ($28,105,549) and an increase of more than $26,000,000 since December 31, 2012 ($3,039,840).  Most significantly, an examination of cash flows from operating activities demonstrates that YTD the company has generated $2,370,673 of cash flows from operating activities in 2013 as compared to $1,098,022 of cash flows used in operating activities for the same period last year, an improvement of $3,468,695.    

The earnings before interest, taxes, depreciation and amortization (EBITDA) per share for the Third Quarter ended September 30, 2013 were $0.07 and, for the YTD, an EBITDA per share of $0.17.  This compares to an EBITDA per share loss of $0.12 for the same period last year.  The company earned a pre-adjusted net profit of $0.01 EPS on net income of $214,315 for the quarter ended September 30, 2013.

In addition, the selling, general and administrative expenses decreased as a percentage of revenues to 29.16% and 31.37%, respectively, for the three and nine months ended September 30, 2013 as compared with 34.92% and 39.05% in the prior year comparative periods.  These improvements are the result of continued efficiencies gained throughout the company in generating revenue growth while tempering selling, general and administrative expenses.

"This is the second consolidated reporting period following our acquisition of Orbital-UK and the results continue to be quite compelling," explained William Clough, CUI Global's president & CEO.  "The sequential YTD growth in revenue; the dramatic year-over-year increase in cash flow; and our turn to both quarter and YTD profitability all demonstrate the tangible results of this immediately accretive acquisition.  These results also validate and evidence our continuing efforts, now through CUI, Inc., CUI Japan and Orbital-UK, to increase our penetration into both the electronics and natural gas markets."

"The acquisition of Orbital-UK and its recognized expertise in the natural gas industry, along with its team of professional engineers continues to enhance the penetration into the market of our GasPT Technology; the recently acquired VE-Probe Technology; and our proprietary IRIS remote telemetry system – All-in-all, these continue to be very exciting times for our company," Clough concluded.

The Company will conduct a conference call and web cast to review the results on Thursday, November 14, 2013 at 9:00 a.m. ET.

CUI Global, Inc. Third Quarter Results Conference Call Thursday, November 14, 2013 at 9:00 a.m. Eastern Dial in number: (888) 734-0328; Conference ID: 99326648 A simultaneous webcast will also be available via: http://www.media-server.com/m/p/ukhewk8q To access the replay of the call dial (855) 859-2056 and provide the same Conference ID.

 

Condensed Consolidated Balance Sheets

September 30,

December 31,

2013

2012

(unaudited)

Assets:

Current Assets:

Cash and cash equivalents

$              18,716,542

$               3,039,840

Short term investments held to maturity

10,882,682

-

Trade accounts receivable, net of allowance of $230,000 and $130,000, respectively

8,995,279

4,965,926

Inventories, net of allowance of $624,110 and $250,000, respectively

6,118,945

4,843,905

Costs in excess of billings

368,446

-

Prepaid expenses and other

740,327

378,885

Total current assets

45,822,221

13,228,556

Property and equipment, net

3,032,086

1,016,219

Other assets:

Investment - equity method

262,456

258,244

Other Intangible assets, net

24,031,876

8,618,524

Deposits and other

21,986

11,360

Notes receivable, net

470,604

501,422

Debt offering costs, net

-

42,778

Goodwill, net

18,413,545

13,046,358

Total other assets

43,200,467

22,478,686

Total assets

$              92,054,774

$              36,723,461

Liabilities and stockholders' equity:

Current liabilities:

Accounts payable

$               4,463,176

$               2,496,881

Line of credit

-

459,448

Leases payable, current

99,056

-

Accrued expenses

2,117,339

1,140,743

Accrued taxes payable

570,699

2,096

Accrued compensation

463,720

186,636

Billings in excess of costs

6,695,121

-

Unearned revenue

708,819

371,541

Total current liabilities

15,117,930

4,657,345

Leases payable, net of current portion

66,649

-

Long term note payable, related party

5,303,683

7,303,683

Total long term liabilities

5,370,332

7,303,683

Total liabilities

20,488,262

11,961,028

Commitments and contingencies

Stockholders' equity:

Common stock, par value $0.001; 325,000,000 shares authorized; 20,564,163     shares issued and outstanding at September 30, 2013 and 10,883,280 shares issued and     outstanding at December 31, 2012

20,564

10,883

Additional paid-in capital

146,484,223

100,947,708

Accumulated deficit

(76,124,821)

(76,171,822)

Accumulated other comprehensive income (loss)

1,186,546

(24,336)

Total stockholders' equity

71,566,512

24,762,433

Total liabilities and stockholders' equity

$              92,054,774

$              36,723,461

See notes to unaudited condensed consolidated financial statements in the filed 10-Q

 

Condensed Consolidated Statements of Operations (unaudited)

For the three months ended September 30,

For the nine months ended September 30,

2013

2012

2013

2012

Revenues:

Product Sales

$  17,204,407

$  10,697,471

$   45,395,252

$   29,157,410

Revenue from freight

9,350

14,835

28,956

36,417

Total revenue

17,213,757

10,712,306

45,424,208

29,193,827

Cost of revenues

10,614,380

6,778,965

27,747,351

18,174,099

Gross profit

6,599,377

3,933,341

17,676,857

11,019,728

Operating expenses

Selling, general and administrative

5,019,853

3,740,318

14,247,723

11,400,909

Depreciation and amortization

1,008,046

224,920

2,202,448

521,769

Research and development

187,866

204,343

631,331

558,833

Bad debt

(10,000)

32,979

32,470

32,979

Impairment of intangible, trademark and trade name V-Infinity

-

-

-

278,428

Total operating expenses

6,205,765

4,202,560

17,113,972

12,792,918

Income (loss) from operations

393,612

(269,219)

562,885

(1,773,190)

Other income (expense)

Other income

55,137

8,580

172,432

43,461

Other expense

(3,302)

(13,189)

(13,208)

(16,885)

Earnings (loss) from equity investment

8,338

(3,318)

4,212

36,473

Amortization of investment premiums and discounts

(9,526)

-

(9,526)

-

Amortization of debt offering costs

(6,111)

(18,333)

(42,777)

(55,000)

Interest expense

(107,501)

(158,981)

(308,954)

(460,510)

Total other income (expense), net

(62,965)

(185,241)

(197,821)

(452,461)

Income (loss) before taxes

330,647

(454,460)

365,064

(2,225,651)

Provision for taxes

116,332

8,539

318,063

23,995

Consolidated Net Income (loss)

$       214,315

$     (462,999)

$         47,001

$    (2,249,646)

Basic income (loss) per common share 

$            0.01

$           (0.04)

$             0.00

$            (0.23)

Diluted income (loss) per common share

$            0.01

$           (0.04)

$             0.00

$            (0.23)

Basic weighted average common shares outstanding

20,564,163

10,819,681

16,796,310

9,940,168

Diluted weighted average common and  common equivalents shares outstanding

20,574,784

10,819,681

16,805,972

9,940,168

See notes to unaudited condensed consolidated financial statements in the filed 10-Q

 

Condensed Consolidated Statements of Cash Flows (unaudited)

For the nine months ended September 30,

2013

2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)

$                  47,001

$             (2,249,646)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Stock, options and notes issued for compensation and services

410,916

948,370

Non-cash interest expense, including amortization of debt offering costs 

42,777

55,000

Earnings from Equity Investment

(4,212)

(36,473)

Bad debt expense

32,470

32,979

Allowance for ship and debit returns

90,000

-

Amortization of intangibles

1,676,731

83,651

Impairment of intangible, trademark and trade name V-Infinity

-

278,428

Inventory reserve

23,792

60,000

Depreciation

525,717

438,118

(Increase) decrease in assets:

Trade accounts receivable

1,761,055

(498,936)

Inventory

(855,296)

(1,512,671)

Costs in excess of billings

(1,089)

-

Prepaid expenses and other current assets

(340,871)

293,282

Deposits and other assets

(10,626)

17,801

Increase (decrease) in liabilities:

Accounts payable

338,560

402,216

Accrued expenses

(1,736,576)

275,608

Accrued compensation

(4,511)

2,726

Accrued taxes payable

(553,303)

-

Unearned revenue

289,841

311,525

Billings in excess of costs

638,297

-

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

2,370,673

(1,098,022)

CASH FLOWS FROM INVESTING ACTIVITIES:

Cash paid upon acquisition, net of cash received

(17,709,507)

-

Investment in other intangible assets, net

(405,900)

(39,940)

Purchase of short term investments held to maturity

(10,882,682)

-

Proceeds from Notes receivable

27,273

22,096

Purchase of property and equipment

(836,892)

(559,713)

NET CASH (USED IN) INVESTING ACTIVITIES

(29,807,708)

(577,557)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from (payments to) demand notes payable, net of debt offering costs

(459,448)

(1,528,900)

Proceeds from (payments to) leases payable

(39,051)

-

Payments on notes and loans payable

-

(4,000,000)

Payments on notes payable, related party

(2,000,000)

(3,000,000)

Payments on convertible note payable, related party

-

(35,000)

Proceeds from sales of common stock, and exercise of warrants and options, net of offering     costs

45,135,280

13,532,285

NET CASH PROVIDED BY FINANCING ACTIVITIES

42,636,781

4,968,385

EFFECT OF EXCHANGE RATE CHANGES ON CASH

476,956

(18,494)

Cash and cash equivalents at beginning of year

3,039,840

176,775

Cash and cash equivalents at end of period

18,716,542

3,451,087

NET INCREASE IN CASH AND CASH EQUIVALENTS

$            15,676,702

$              3,274,312

See notes to unaudited condensed consolidated financial statements in the filed 10-Q

About CUI Global, Inc. Delivering Innovative Technologies for an Interconnected World . . . . .

CUI Global, Inc. is a publicly traded company dedicated to maximizing shareholder value through the acquisition and development of innovative companies, products and technologies. From Orbital Gas Systems' advanced GasPT2 platform targeting the energy sector, to CUI Inc's digital power platform serving the networking and telecom space, CUI Global and its subsidiaries have built a diversified portfolio of industry leading technologies that touch many markets. As a publicly traded company, shareholders are able to participate in the opportunities, revenues, and profits generated by the products, technologies, and market channels of CUI Global and its subsidiaries. But most importantly, a commitment to conduct business with a high level of integrity, respect, and philanthropic dedication allows the organization to make a difference in the lives of their customers, employees, investors and global community.

For more information please visit www.cuiglobal.com

About CUI Inc. CUI Inc. is a technology company dedicated to the development, commercialization, and distribution of new, innovative electro-mechanical products. Over the past 20 years, CUI has become a recognized name in electronic components worldwide in the areas of power, interconnect, motion control, and sound. CUI's solid customer commitment and honest corporate message are a hallmark in the industry. CUI is a wholly owned subsidiary of CUI Global, Inc. 

For more information, please visit www.cui.com.  

About Orbital Gas Systems Ltd. Orbital Gas Systems Ltd ("Orbital-UK") is the largest natural gas systems integrator in the United Kingdom. For over 25 years, Orbital-UK has developed its portfolio of products, services and resources to offer a diverse range of personalized gas engineering solutions to the gas utilities, power generation, emissions, manufacturing and automotive industries.  Orbital-UK's internationally recognized expertise in the natural gas industry, including bringing together the patented VE-technology with the ground-breaking GasPTi device, offers natural gas operators and users a comprehensive engineering array for the next generation of energy metering systems.  Orbital-UK is a wholly owned subsidiary of CUI Global, Inc. 

For more information, please visit www.orbital-uk.com.

Important Cautions Regarding Forward Looking Statements This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the

performance or reliability of our products. These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements. Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.

Reconciliation of Non-GAAP Financial Measures EBITDA is a non-GAAP financial measure and is reconciled in the table below. EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA excludes components that are significant in understanding and assessing the company's results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies. However, EBITDA is used by management to evaluate, assess and benchmark the company's operational results and the company believes EBITDA is relevant and useful information which is often reported and widely used by analysts, investors and other interested parties in the company's industry. Accordingly, the company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the company's ability to meet future debt service, capital expenditure and working capital requirements. 

 

Unaudited

For the nine months ended,

For the nine months ended,

September 30, 2013

September 30, 2012

September 30, 2013

September 30, 2012

Net Income (loss)

$           214,315

$         (462,999)

$             47,001

$      (2,249,646)

    Plus:  Interest expense - amortization of       debt offering costs

6,111

18,333

42,777

55,000

    Plus:  Interest expense

107,501

158,981

308,954

460,510

    Plus:  Depreciation and amortization

1,008,046

224,920

2,202,448

521,769

    Plus:  Provision for taxes

116,332

8,539

318,063

23,995

EBITDA

$        1,452,305

$           (52,226)

$        2,919,243

$      (1,188,372)

Basic EBITDA per common share

$                 0.07

$               (0.00)

$                 0.17

$               (0.12)

Diluted EBITDA per common share

$                 0.07

$               (0.00)

$                 0.17

$               (0.12)

Basic weighted average common shares     outstanding

20,564,163

10,819,681

16,796,310

9,940,168

Diluted weighted average common and     common equivalents shares outstanding

20,574,784

10,819,681

16,805,972

9,940,168

SOURCE CUI Global, Inc.



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