Ultrak's First Quarter 2001 Results Meet Management Expectations; Profit Includes Gain From Sale of Detection Systems Shares

Apr 26, 2001, 01:00 ET from Ultrak, Inc.

    LEWISVILLE, Texas, April 26 /PRNewswire/ -- Ultrak, Inc. (Nasdaq:   ULTK)
 today announces sales of $44.4 million for the first quarter ended
 March 31, 2001, compared to $52.1 million in the first quarter of 2000.  The
 revenue decline was due to the sale of Intervision in July 2000, the phasing-
 out of the French CCTV distribution business and a stronger dollar, which also
 adversely impacted the gross profit margin.  The core professional security
 groups in the U.S. and Europe achieved positive growth compared to the prior
 year.
     Gross profit margins were 30.0% compared to 31.0% in the first quarter of
 2000, while operating losses were $(0.6) million compared to operating profits
 of $0.2 million in the prior year.  Earnings before interest, income tax,
 depreciation and amortization (EBITDA) for the on-going business were
 $0.7 million.  Income before taxes was $6.7 million compared to a loss before
 income taxes of $(0.7) million in the same period last year.  Diluted income
 (loss) per share was $0.54 a share compared with ($0.04) a share during the
 same period last year.
     Operating expenses were down 12% in the first quarter of 2001, versus the
 first quarter of 2000.  This improvement was primarily due to the headcount
 reduction in the US and Europe and the winding down of the centralized
 European distribution center in Belgium.  The restructuring of Ultrak's
 worldwide operations is largely complete.
     Results for the first quarter included a $7.8 million capital gain from
 the sale of Ultrak's investment in Detection Systems, Inc.  In January 2001,
 Ultrak received $24 million in cash proceeds related to this sale, a portion
 of which was used to lower the Company's borrowings under its credit facility.
     Borrowings for operations net of cash were $18.8 million, 46% lower than
 last year's comparable figure.  Accounts receivable at $29.3 million
 represented less than 60 days of sales outstanding, compared to 75 days a year
 ago.  Inventories were down 42%, due to better inventory management, reduced
 SKU (stock keeping units) count and the year-end write-off.
     The Company also accomplished some major milestones in its operations
 during the first quarter.  Ultrak's new products were well received at the
 recent ISC West show in Las Vegas, winning the Product Achievement Award for
 its new ULTRAKey(TM) CCTV management system controller.  In addition, the
 Company obtained approval on its ISO 9002 application and received its
 certification in April 2001.
     The results met the Company's expectation for the first quarter,
 traditionally a slower period.  Management is encouraged by the progress and
 expects the balance of the year will continue to show improvement.
 
     Ultrak is a publicly-held corporation that designs, manufactures, markets
 and services innovative electronic products and systems for the security and
 surveillance, industrial and medical video, and professional audio markets.
 The Company sells its products to distributors, dealers, system integrators,
 retailers and mass-merchants (for resale).  Headquartered in Lewisville
 (Dallas), Texas, Ultrak has multiple facilities throughout the United States,
 Europe, Asia and South Africa.  Enterprise Security Solutions (ESS) from
 Ultrak set new standards in quality, performance and value for large
 organizations interested in protecting their assets and improving operating
 efficiency.  Access control, CCTV, alarm management, and public address
 functions are integrated and optimized.  Existing telecommunications and IT
 infrastructures are leveraged to best advantage, security operations
 simplified and system life-cycle costs reduced.  And, in progressive
 organizations, ESS functions like remote video surveillance are utilized to
 achieve improvements in operating efficiency and support the bottom-line
 mission of the enterprise.
 
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 risks and uncertainties that could cause actual results to differ materially
 from those in the forward-looking statements, including the timely development
 and acceptance of new products, the impact of competitive products and
 pricing, and the other risks detailed from time to time in the Company's SEC
 reports, including its Annual Report on Form 10-K for the year ended
 December 31, 2000, and its Quarterly Report on Form 10-Q for the quarters
 ended March 31, 2000, June 30, 2000 and September 30, 2000.
     Ultrak is a registered trademark of Ultrak, Inc.
 
 
      Ultrak Inc.
      Consolidated Statements of Operations
      3 Months Ended March 31, 2001 and March 31, 2000
      (US$ Millions)
 
                                                   2001           2000
 
     Sales                                         $44.4          $52.1
 
     Gross Profit                                   13.3           16.2
     GPM%                                           30.0%          31.0%
 
     Operating Expenses                             12.6           14.4
     Depreciation/Amortization                       1.3            1.6
     Operating Profit (Loss)                        (0.6)           0.2
 
     Interest (Expense)                             (0.6)          (0.8)
     Gain on Sale of Investments                     7.8            ---
     Other Income (Expense)                          0.1           (0.1)
     Pre-Tax Income (Loss)                           6.7           (0.7)
 
     Income Tax (Benefit)                            ---           (0.3)
     Net Income (Loss)                               6.7           (0.4)
     Preferred Dividend                              0.1            0.1
 
     Net Income (Loss) After Dividend               $6.6          $(0.5)
 
     Number of shares (in Millions)                 12.2           11.6
 
     Earnings (Loss) Per Share                     $0.54         ($0.04)
 
 
      Ultrak Inc.
      Balance Sheet
      (US$ Millions)
 
                                          Mar          Dec         Mar
                                         2001         2000         2000
 
     Cash                                 $6.0         $3.8        $3.3
     Receivables                          29.3         32.2        43.9
     Inventory                            29.7         26.9        50.8
     Deferred Income Taxes                 6.1          6.3         4.0
     Other Assets                          6.3          5.3         7.3
     Current Assets                       77.4         74.5       109.3
 
     Property, Plant & Equipment          26.0         15.0        21.2
     Goodwill                             37.4         39.4        55.9
     Investment in Detection Systems       ---         13.9        13.4
 
     Other                                 0.7          0.7         2.5
                                         141.5        143.5       202.3
 
     Current Liabilities                  24.9         29.3        29.6
     Building Note                         7.5          ---         ---
     Line of Credit                       24.8         35.4        38.0
     Deferred Income Taxes                 1.5          1.5         2.7
     Equity                               82.8         77.3       132.0
                                         141.5        143.5       202.3
 
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SOURCE Ultrak, Inc.
    LEWISVILLE, Texas, April 26 /PRNewswire/ -- Ultrak, Inc. (Nasdaq:   ULTK)
 today announces sales of $44.4 million for the first quarter ended
 March 31, 2001, compared to $52.1 million in the first quarter of 2000.  The
 revenue decline was due to the sale of Intervision in July 2000, the phasing-
 out of the French CCTV distribution business and a stronger dollar, which also
 adversely impacted the gross profit margin.  The core professional security
 groups in the U.S. and Europe achieved positive growth compared to the prior
 year.
     Gross profit margins were 30.0% compared to 31.0% in the first quarter of
 2000, while operating losses were $(0.6) million compared to operating profits
 of $0.2 million in the prior year.  Earnings before interest, income tax,
 depreciation and amortization (EBITDA) for the on-going business were
 $0.7 million.  Income before taxes was $6.7 million compared to a loss before
 income taxes of $(0.7) million in the same period last year.  Diluted income
 (loss) per share was $0.54 a share compared with ($0.04) a share during the
 same period last year.
     Operating expenses were down 12% in the first quarter of 2001, versus the
 first quarter of 2000.  This improvement was primarily due to the headcount
 reduction in the US and Europe and the winding down of the centralized
 European distribution center in Belgium.  The restructuring of Ultrak's
 worldwide operations is largely complete.
     Results for the first quarter included a $7.8 million capital gain from
 the sale of Ultrak's investment in Detection Systems, Inc.  In January 2001,
 Ultrak received $24 million in cash proceeds related to this sale, a portion
 of which was used to lower the Company's borrowings under its credit facility.
     Borrowings for operations net of cash were $18.8 million, 46% lower than
 last year's comparable figure.  Accounts receivable at $29.3 million
 represented less than 60 days of sales outstanding, compared to 75 days a year
 ago.  Inventories were down 42%, due to better inventory management, reduced
 SKU (stock keeping units) count and the year-end write-off.
     The Company also accomplished some major milestones in its operations
 during the first quarter.  Ultrak's new products were well received at the
 recent ISC West show in Las Vegas, winning the Product Achievement Award for
 its new ULTRAKey(TM) CCTV management system controller.  In addition, the
 Company obtained approval on its ISO 9002 application and received its
 certification in April 2001.
     The results met the Company's expectation for the first quarter,
 traditionally a slower period.  Management is encouraged by the progress and
 expects the balance of the year will continue to show improvement.
 
     Ultrak is a publicly-held corporation that designs, manufactures, markets
 and services innovative electronic products and systems for the security and
 surveillance, industrial and medical video, and professional audio markets.
 The Company sells its products to distributors, dealers, system integrators,
 retailers and mass-merchants (for resale).  Headquartered in Lewisville
 (Dallas), Texas, Ultrak has multiple facilities throughout the United States,
 Europe, Asia and South Africa.  Enterprise Security Solutions (ESS) from
 Ultrak set new standards in quality, performance and value for large
 organizations interested in protecting their assets and improving operating
 efficiency.  Access control, CCTV, alarm management, and public address
 functions are integrated and optimized.  Existing telecommunications and IT
 infrastructures are leveraged to best advantage, security operations
 simplified and system life-cycle costs reduced.  And, in progressive
 organizations, ESS functions like remote video surveillance are utilized to
 achieve improvements in operating efficiency and support the bottom-line
 mission of the enterprise.
 
     Except for the historical information contained herein, the matters
 discussed in this news release are forward-looking statements that involve
 risks and uncertainties that could cause actual results to differ materially
 from those in the forward-looking statements, including the timely development
 and acceptance of new products, the impact of competitive products and
 pricing, and the other risks detailed from time to time in the Company's SEC
 reports, including its Annual Report on Form 10-K for the year ended
 December 31, 2000, and its Quarterly Report on Form 10-Q for the quarters
 ended March 31, 2000, June 30, 2000 and September 30, 2000.
     Ultrak is a registered trademark of Ultrak, Inc.
 
 
      Ultrak Inc.
      Consolidated Statements of Operations
      3 Months Ended March 31, 2001 and March 31, 2000
      (US$ Millions)
 
                                                   2001           2000
 
     Sales                                         $44.4          $52.1
 
     Gross Profit                                   13.3           16.2
     GPM%                                           30.0%          31.0%
 
     Operating Expenses                             12.6           14.4
     Depreciation/Amortization                       1.3            1.6
     Operating Profit (Loss)                        (0.6)           0.2
 
     Interest (Expense)                             (0.6)          (0.8)
     Gain on Sale of Investments                     7.8            ---
     Other Income (Expense)                          0.1           (0.1)
     Pre-Tax Income (Loss)                           6.7           (0.7)
 
     Income Tax (Benefit)                            ---           (0.3)
     Net Income (Loss)                               6.7           (0.4)
     Preferred Dividend                              0.1            0.1
 
     Net Income (Loss) After Dividend               $6.6          $(0.5)
 
     Number of shares (in Millions)                 12.2           11.6
 
     Earnings (Loss) Per Share                     $0.54         ($0.04)
 
 
      Ultrak Inc.
      Balance Sheet
      (US$ Millions)
 
                                          Mar          Dec         Mar
                                         2001         2000         2000
 
     Cash                                 $6.0         $3.8        $3.3
     Receivables                          29.3         32.2        43.9
     Inventory                            29.7         26.9        50.8
     Deferred Income Taxes                 6.1          6.3         4.0
     Other Assets                          6.3          5.3         7.3
     Current Assets                       77.4         74.5       109.3
 
     Property, Plant & Equipment          26.0         15.0        21.2
     Goodwill                             37.4         39.4        55.9
     Investment in Detection Systems       ---         13.9        13.4
 
     Other                                 0.7          0.7         2.5
                                         141.5        143.5       202.3
 
     Current Liabilities                  24.9         29.3        29.6
     Building Note                         7.5          ---         ---
     Line of Credit                       24.8         35.4        38.0
     Deferred Income Taxes                 1.5          1.5         2.7
     Equity                               82.8         77.3       132.0
                                         141.5        143.5       202.3
 
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 SOURCE  Ultrak, Inc.