Interlogix, Inc. Reports First Quarter 2001 Financial Results

Revenue Growth Initiatives Produce Strong Quarter Performance



Apr 30, 2001, 01:00 ET from Interlogix, Inc.

    AUSTIN, Texas, April 30 /PRNewswire/ -- Interlogix, Inc. (Nasdaq: ILXI)
 today announced results of operations for the first quarter ended March 31,
 2001.  Interlogix, Inc. was formed on May 2, 2000 through the merger of ITI
 Technologies, Inc. and SLC Technologies, Inc., in which SLC is the acquirer
 for accounting purposes.  Pro forma figures include the results of ITI as if
 the acquisition had been completed on January 1, 2000.  Earnings per share
 figures are presented on a fully-diluted basis.
 
     Financial Results:
     For the first quarter of 2001, reported revenues totaled $158.9 million,
 an increase of 63.8% from the comparable period in 2000.  Reported operating
 income for the quarter of $13.1 million represented an increase of 263.9% from
 last year's first quarter.  Net income for the first quarter of 2001 was
 $4.3 million, or $0.22 per share, as compared to $1.9 million, or $0.12 per
 share in the first quarter of 2000.
     On a pro forma basis, reported revenues and operating income of
 $158.9 million and $13.1 million for the first quarter of 2001 represented an
 increase of 23.7% and 67.9%, respectively, over the comparable periods in
 2000. Adjusting for the impact of currency fluctuation effects of $2.6 million
 on revenues and $0.7 million on operating income, revenue and operating income
 growth for the quarter would have increased 25.7% and 76.9%, respectively,
 over the pro forma results in the prior year quarter.
     "I am pleased to report that Interlogix achieved strong sales and earnings
 growth in the quarter," said Ken Boyda, President and Chief Executive Officer.
 "The balance of revenues geographically and the range of markets served,
 coupled with the realization of anticipated revenue synergies from the
 combination of SLC and ITI, all contributed to our solid quarterly
 performance.  Revenues within the security and life safety group, which was
 formed as a result of the merger with ITI, grew 12.2%, excluding currency
 impacts, over first quarter 2000 on a pro forma basis.  Additionally, we
 realized significant revenue gains from new products in the video area and
 from the key management group.  All of these factors supported revenue growth,
 excluding currency impacts, of greater than 25% in the first quarter.  Video
 revenues from products sold under the Kalatel brand increased by $6.0 million
 or 60.5% during the first quarter as compared to the prior year. Key
 management revenues grew $14.7 million or 129.0% over the first quarter of
 2000."
     "We exceeded our financial expectations during the quarter ended March 31,
 2001 notwithstanding the difficult economic and industry conditions the
 company faced during the first quarter," said John Logan, Chief Financial
 Officer.  "Particularly encouraging was our solid growth in operating income.
 This strong operating income growth validates our increased investments,
 particularly in our digital video and key management businesses. The economy
 currently presents many uncertainties, but we are encouraged by the excellent
 start to 2001."
     As of March 31, 2001, Interlogix's balance sheet included $247.8 million
 of stockholders' equity, $7.8 million of cash and $235.5 million of bank
 indebtedness.
 
     Recent Acquisition Activity:
     On April 26, 2001, Interlogix acquired substantially all of the assets of
 Osborne-Hoffman, Inc., consistent with its strategy to purchase attractive
 product lines that enhance our ability to satisfy customer solutions and
 requirements. Based in Brielle, New Jersey, Osborne-Hoffman is a manufacturer
 of digital receivers for security control panels.  The acquisition represents
 Interlogix's entry into the alarm signal receiving market, complementing the
 company's existing intrusion panel control business.
     "The addition of Osborne-Hoffman provides a component for a complete
 intrusion control solution," continued, Mr. Boyda.  "There is great
 opportunity for our engineering team to enhance Osborne-Hoffman's digital
 receivers to address the growing need for internet-enabled solutions in this
 market.  Additionally, our global sales and distribution channels will provide
 attractive revenue growth opportunities for this product line."
 
     Outlook:
     The following statements are based on Interlogix's current expectations as
 of April 30, 2001.  These statements are forward-looking statements and actual
 results may differ materially.  A discussion on forward-looking statements and
 potential risks and uncertainties that may arise to affect these statements is
 included at the end of this press release.
     For the full year ending December 31, 2001, Interlogix expects to generate
 revenues between $640 million and $650 million and earnings per share between
 $1.50 and $1.55.  For the second quarter ending June 30, 2001, Interlogix
 expects to generate revenues between $158 million and $162 million and
 earnings per share between $0.27 and $0.32.
     Commenting on the company's outlook, Mr. Boyda continued, "While we are
 confident that we will achieve the full-year forecasts that we have provided,
 we recognize that there are uncertainties in predicting change in the U.S. and
 global economy and in foreign exchange fluctuations over the next several
 months.  As such, we believe it is prudent to continue to take a conservative
 approach with our guidance for the full year."
 
     Conference Call:
     The conference call will be available live over the Internet via webcast
 today at 11:30 am EDT. To access the live webcast, investors are directed
 towards the Investor Relations portion of Interlogix's web site at
 http://investor.interlogixinc.com. Investors should register on the website
 approximately 10-15 minutes prior to the start time of the call. This news
 release will also be available on the Press Releases portion of Interlogix's
 web site, http://press.interlogixinc.com.
     For those who cannot listen to the live broadcast, a replay will be
 available beginning approximately two hours after the event. The event will be
 archived for 10 days on the company's web site at
 http://investor.interlogixinc.com in the Conference Calls section. A replay of
 the call will also be available until May 2nd at 5:00pm EDT by dialing
 800-633-8284 (within US) or 858-812-6440 (outside the US) with passcode
 18559899.
 
     About Interlogix:
     Headquartered in Austin, Texas, Interlogix is a global company focusing on
 communication technologies and information for security, safety, and lifestyle
 enhancements. Interlogix has operations in over 25 countries and is
 represented by some of the best-known brand names in the industry, including
 Aritech, Caddx, Casi-Rusco, ESL, Fiber Options, GBC, ITI, Kalatel, Sentrol,
 Supra and Tecom Systems. Interlogix maintains a web site at
 http://www.interlogixinc.com.
 
     Safe Harbor Statement:
     This release contains forward-looking statements about future business
 operations, financial performance, and market conditions. Investors should not
 place undue reliance on these forward-looking statements, which speak only as
 of the date of this press release.  Such statements are subject to certain
 risks, uncertainties and other factors that can affect the companies'
 businesses and cause actual results to differ materially from those contained
 in any forward-looking statements, including, but not limited to, the
 following: the competitive environment; changes in exchange rates and interest
 rates; the effects of industry consolidation; the obsolescence of Interlogix's
 technology; difficulties in the technical, operational and strategic
 integration of Interlogix; and the risks associated with having a single
 customer account for more than 10% of Interlogix's revenues on a pro forma
 basis for the year 2000.
     These risks, uncertainties and other factors are described in Interlogix's
 proxy statement related to the merger, and in its annual and quarterly reports
 on Forms 10-K and 10-Q (copies of such reports may be obtained from the
 company or reviewed on the SEC EDGAR system at http://www.sec.gov).  We assume
 no duty to update the information in this press release if any forward-looking
 statement later turns out to be inaccurate.
 
                                INTERLOGIX, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (Dollars in millions, except per share amounts)
                                  (Unaudited)
 
                                                         Three Months Ended
                                                     March 31        April 1
                                                         2001           2000
 
     Revenues                                          $158.9          $97.0
     Cost of revenues                                    91.9           57.1
     Gross profit                                        67.0           39.9
     Selling, general and administrative expense         41.8           28.8
     Research and development expenses                    6.3            4.8
     Restructuring and other charges                       --             .3
     Amortization of intangibles                          5.8            2.4
     Operating income                                    13.1            3.6
     Other (income) expense:
     Interest expense, net                                4.6            1.1
     Other, net                                            .5          (2.2)
     Income before income taxes                           8.0            4.7
     Provision for income taxes                           3.7            2.8
     Net income                                          $4.3           $1.9
     Net income per share:
     Basic                                               0.22           0.12
     Diluted                                             0.22           0.12
     Weighted Average Shares Outstanding:
     Basic                                         19,458,401     15,170,640
     Diluted                                       19,726,685     15,261,664
 
                                INTERLOGIX, INC.
                          CONSOLIDATED BALANCE SHEETS
                             (Dollars in millions)
                                  (Unaudited)
 
                                                     March 31    December 31
                                                         2001           2000
     ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                          $7.8          $12.5
      Receivables, net                                  137.5          131.6
      Inventories, net                                   92.3           84.9
      Prepaids and other                                 15.6           14.8
         Total current assets                           253.2          243.8
 
     PROPERTY, PLANT AND EQUIPMENT                       51.7           50.4
 
     OTHER ASSETS, net                                    7.0            6.7
 
     INTANGIBLES:
      Other intangible assets, net                      136.0          136.6
      Goodwill, net                                     191.8          195.5
 
         Total Assets                                  $639.7         $633.0
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
      Current portion of long-term debt                 $17.7          $16.7
      Accounts payable & accrued expenses                96.4          102.0
         Total current liabilities                      114.1          118.7
 
     LONG-TERM DEBT                                     219.3          210.6
     DEFERRED INCOME TAXES                               46.4           46.0
     OTHER NONCURRENT LIABILITIES                        12.1           10.7
         Total liabilities                              391.9          386.0
 
     STOCKHOLDERS' EQUITY                               247.8          247.0
 
        Total Liabilities and Stockholders' Equity     $639.7         $633.0
 
 
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SOURCE Interlogix, Inc.
    AUSTIN, Texas, April 30 /PRNewswire/ -- Interlogix, Inc. (Nasdaq: ILXI)
 today announced results of operations for the first quarter ended March 31,
 2001.  Interlogix, Inc. was formed on May 2, 2000 through the merger of ITI
 Technologies, Inc. and SLC Technologies, Inc., in which SLC is the acquirer
 for accounting purposes.  Pro forma figures include the results of ITI as if
 the acquisition had been completed on January 1, 2000.  Earnings per share
 figures are presented on a fully-diluted basis.
 
     Financial Results:
     For the first quarter of 2001, reported revenues totaled $158.9 million,
 an increase of 63.8% from the comparable period in 2000.  Reported operating
 income for the quarter of $13.1 million represented an increase of 263.9% from
 last year's first quarter.  Net income for the first quarter of 2001 was
 $4.3 million, or $0.22 per share, as compared to $1.9 million, or $0.12 per
 share in the first quarter of 2000.
     On a pro forma basis, reported revenues and operating income of
 $158.9 million and $13.1 million for the first quarter of 2001 represented an
 increase of 23.7% and 67.9%, respectively, over the comparable periods in
 2000. Adjusting for the impact of currency fluctuation effects of $2.6 million
 on revenues and $0.7 million on operating income, revenue and operating income
 growth for the quarter would have increased 25.7% and 76.9%, respectively,
 over the pro forma results in the prior year quarter.
     "I am pleased to report that Interlogix achieved strong sales and earnings
 growth in the quarter," said Ken Boyda, President and Chief Executive Officer.
 "The balance of revenues geographically and the range of markets served,
 coupled with the realization of anticipated revenue synergies from the
 combination of SLC and ITI, all contributed to our solid quarterly
 performance.  Revenues within the security and life safety group, which was
 formed as a result of the merger with ITI, grew 12.2%, excluding currency
 impacts, over first quarter 2000 on a pro forma basis.  Additionally, we
 realized significant revenue gains from new products in the video area and
 from the key management group.  All of these factors supported revenue growth,
 excluding currency impacts, of greater than 25% in the first quarter.  Video
 revenues from products sold under the Kalatel brand increased by $6.0 million
 or 60.5% during the first quarter as compared to the prior year. Key
 management revenues grew $14.7 million or 129.0% over the first quarter of
 2000."
     "We exceeded our financial expectations during the quarter ended March 31,
 2001 notwithstanding the difficult economic and industry conditions the
 company faced during the first quarter," said John Logan, Chief Financial
 Officer.  "Particularly encouraging was our solid growth in operating income.
 This strong operating income growth validates our increased investments,
 particularly in our digital video and key management businesses. The economy
 currently presents many uncertainties, but we are encouraged by the excellent
 start to 2001."
     As of March 31, 2001, Interlogix's balance sheet included $247.8 million
 of stockholders' equity, $7.8 million of cash and $235.5 million of bank
 indebtedness.
 
     Recent Acquisition Activity:
     On April 26, 2001, Interlogix acquired substantially all of the assets of
 Osborne-Hoffman, Inc., consistent with its strategy to purchase attractive
 product lines that enhance our ability to satisfy customer solutions and
 requirements. Based in Brielle, New Jersey, Osborne-Hoffman is a manufacturer
 of digital receivers for security control panels.  The acquisition represents
 Interlogix's entry into the alarm signal receiving market, complementing the
 company's existing intrusion panel control business.
     "The addition of Osborne-Hoffman provides a component for a complete
 intrusion control solution," continued, Mr. Boyda.  "There is great
 opportunity for our engineering team to enhance Osborne-Hoffman's digital
 receivers to address the growing need for internet-enabled solutions in this
 market.  Additionally, our global sales and distribution channels will provide
 attractive revenue growth opportunities for this product line."
 
     Outlook:
     The following statements are based on Interlogix's current expectations as
 of April 30, 2001.  These statements are forward-looking statements and actual
 results may differ materially.  A discussion on forward-looking statements and
 potential risks and uncertainties that may arise to affect these statements is
 included at the end of this press release.
     For the full year ending December 31, 2001, Interlogix expects to generate
 revenues between $640 million and $650 million and earnings per share between
 $1.50 and $1.55.  For the second quarter ending June 30, 2001, Interlogix
 expects to generate revenues between $158 million and $162 million and
 earnings per share between $0.27 and $0.32.
     Commenting on the company's outlook, Mr. Boyda continued, "While we are
 confident that we will achieve the full-year forecasts that we have provided,
 we recognize that there are uncertainties in predicting change in the U.S. and
 global economy and in foreign exchange fluctuations over the next several
 months.  As such, we believe it is prudent to continue to take a conservative
 approach with our guidance for the full year."
 
     Conference Call:
     The conference call will be available live over the Internet via webcast
 today at 11:30 am EDT. To access the live webcast, investors are directed
 towards the Investor Relations portion of Interlogix's web site at
 http://investor.interlogixinc.com. Investors should register on the website
 approximately 10-15 minutes prior to the start time of the call. This news
 release will also be available on the Press Releases portion of Interlogix's
 web site, http://press.interlogixinc.com.
     For those who cannot listen to the live broadcast, a replay will be
 available beginning approximately two hours after the event. The event will be
 archived for 10 days on the company's web site at
 http://investor.interlogixinc.com in the Conference Calls section. A replay of
 the call will also be available until May 2nd at 5:00pm EDT by dialing
 800-633-8284 (within US) or 858-812-6440 (outside the US) with passcode
 18559899.
 
     About Interlogix:
     Headquartered in Austin, Texas, Interlogix is a global company focusing on
 communication technologies and information for security, safety, and lifestyle
 enhancements. Interlogix has operations in over 25 countries and is
 represented by some of the best-known brand names in the industry, including
 Aritech, Caddx, Casi-Rusco, ESL, Fiber Options, GBC, ITI, Kalatel, Sentrol,
 Supra and Tecom Systems. Interlogix maintains a web site at
 http://www.interlogixinc.com.
 
     Safe Harbor Statement:
     This release contains forward-looking statements about future business
 operations, financial performance, and market conditions. Investors should not
 place undue reliance on these forward-looking statements, which speak only as
 of the date of this press release.  Such statements are subject to certain
 risks, uncertainties and other factors that can affect the companies'
 businesses and cause actual results to differ materially from those contained
 in any forward-looking statements, including, but not limited to, the
 following: the competitive environment; changes in exchange rates and interest
 rates; the effects of industry consolidation; the obsolescence of Interlogix's
 technology; difficulties in the technical, operational and strategic
 integration of Interlogix; and the risks associated with having a single
 customer account for more than 10% of Interlogix's revenues on a pro forma
 basis for the year 2000.
     These risks, uncertainties and other factors are described in Interlogix's
 proxy statement related to the merger, and in its annual and quarterly reports
 on Forms 10-K and 10-Q (copies of such reports may be obtained from the
 company or reviewed on the SEC EDGAR system at http://www.sec.gov).  We assume
 no duty to update the information in this press release if any forward-looking
 statement later turns out to be inaccurate.
 
                                INTERLOGIX, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (Dollars in millions, except per share amounts)
                                  (Unaudited)
 
                                                         Three Months Ended
                                                     March 31        April 1
                                                         2001           2000
 
     Revenues                                          $158.9          $97.0
     Cost of revenues                                    91.9           57.1
     Gross profit                                        67.0           39.9
     Selling, general and administrative expense         41.8           28.8
     Research and development expenses                    6.3            4.8
     Restructuring and other charges                       --             .3
     Amortization of intangibles                          5.8            2.4
     Operating income                                    13.1            3.6
     Other (income) expense:
     Interest expense, net                                4.6            1.1
     Other, net                                            .5          (2.2)
     Income before income taxes                           8.0            4.7
     Provision for income taxes                           3.7            2.8
     Net income                                          $4.3           $1.9
     Net income per share:
     Basic                                               0.22           0.12
     Diluted                                             0.22           0.12
     Weighted Average Shares Outstanding:
     Basic                                         19,458,401     15,170,640
     Diluted                                       19,726,685     15,261,664
 
                                INTERLOGIX, INC.
                          CONSOLIDATED BALANCE SHEETS
                             (Dollars in millions)
                                  (Unaudited)
 
                                                     March 31    December 31
                                                         2001           2000
     ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                          $7.8          $12.5
      Receivables, net                                  137.5          131.6
      Inventories, net                                   92.3           84.9
      Prepaids and other                                 15.6           14.8
         Total current assets                           253.2          243.8
 
     PROPERTY, PLANT AND EQUIPMENT                       51.7           50.4
 
     OTHER ASSETS, net                                    7.0            6.7
 
     INTANGIBLES:
      Other intangible assets, net                      136.0          136.6
      Goodwill, net                                     191.8          195.5
 
         Total Assets                                  $639.7         $633.0
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     CURRENT LIABILITIES:
      Current portion of long-term debt                 $17.7          $16.7
      Accounts payable & accrued expenses                96.4          102.0
         Total current liabilities                      114.1          118.7
 
     LONG-TERM DEBT                                     219.3          210.6
     DEFERRED INCOME TAXES                               46.4           46.0
     OTHER NONCURRENT LIABILITIES                        12.1           10.7
         Total liabilities                              391.9          386.0
 
     STOCKHOLDERS' EQUITY                               247.8          247.0
 
        Total Liabilities and Stockholders' Equity     $639.7         $633.0
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
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 SOURCE  Interlogix, Inc.