Super Vision (NASDAQ:SUPVA)
Historical Stock Chart
From Jun 2019 to Jun 2024
Super Vision International, Inc. (NASDAQ:SUPVA), a world
leader in solid-state LED and fiber optic lighting systems and
controls used in commercial, architectural, signage, swimming pool and
retail lighting applications today announced financial results for the
full year ended December 31, 2005 and the restatement of the quarterly
results for the first three quarters of 2005 and the full year ended
December 31, 2004.
2005 Financial Results
Total revenue for the year increased to $12.0 million as compared
to $11.9 million in 2004, driven by a 21% increase in LED revenue in
2005 offset by a 15% decrease in sales of fiber optic lighting
products. 2005 was a milestone year for the company as revenue from
LED lighting systems surpassed revenue from fiber optic lighting
systems for the first time in the company's history. LED revenues
accounted for 49% of the company's sales compared to 41% in 2004.
Fiber optic revenue represented only 47% of total revenue compared to
55% of total revenue in 2004 and 66% in 2003. Gross margins for the
year improved to 41% in 2005 compared to 36% in 2004 as restated (39%
compared to 36% as restated excluding a one-time settlement recovery
of $240,000 received in 2005 for damaged and faulty parts charged to
cost of sales in prior years) as a result of cost reduction
initiatives and improvements in operational efficiencies. The net loss
for the year was approximately $488,500 or ($0.19) per basic and
diluted share as compared to a restated net loss of approximately
$401,400, or ($0.16) per basic and diluted share for 2004. The
increase in net loss was driven primarily by increased research and
development expenses, legal fees, wages, benefits and a one-time
severance expense.
New President and Chief Executive Officer Mike Bauer said,
"Repositioning Super Vision International to capitalize on the
emerging market for solid-state LED lighting systems and controls,
expanding our product platform through strategic investments and
reconfiguring our facility for improved operational efficiencies and
higher gross margins were our primary goals in 2005 and we achieved
them. The investments in new product development and our new training
and development center were long overdue and as the market for fiber
optic lighting has matured we felt it was critical to make these key
moves to break out of the past, accelerate our revenue growth and
drive the company to profitability. It is an exciting time for our
company. The overall market for high brightness, solid-state lighting
systems is estimated to grow at over 20% in the next several years.
Our goal is to capitalize on this opportunity and become a leader in
the market."
"Sales to date of our new SaVi(TM) brand of architectural LED
lighting products that we began shipping last April have exceeded $1
million and we have introduced three new state-of-the-art high density
array LED SaVi(TM) products that we expect to start shipping in the
2nd quarter of 2006. In addition, during 2005, we filed six new patent
applications and were issued another patent in December, bringing our
total number of issued patents to nineteen."
Earlier this month the company, along with its independent
registered public accounting firm, Cross, Fernandez & Riley, LLP,
determined to restate its previously filed financial statements for
the year ended December 31, 2004 and the quarters ended March 31, June
30 and September 30, 2005 to reflect the capitalization of overhead
and freight-in costs on inventory items not previously capitalized and
the correction of an error in our overhead rate. The restatement
resulted from a reassessment of the company's current methodology for
capitalizing labor and overhead due to the change in product mix from
fiber optics to LED based products over the last three years. As a
result of the restatement, the company's accumulated deficit decreased
by $434,967 as of December 31, 2004 and the company's net loss for
2004 increased by $69,231 from $332,201 to $401,432, or an increased
loss of $0.03 per basic and diluted share. The impact of the
restatement on the quarterly unaudited financial statements for the
three previously reported quarters in 2005 is disclosed in our 10-KSB
for the year ended December 31, 2005 filed with the Securities and
Exchange Commission on March 29, 2006 and in the company's Current
Report on Form 8-K filed with the Securities and Exchange Commission
on March 22, 2006.
"2005 was a milestone year for Super Vision as we diversified our
product platform, transitioned to new senior leadership, began
executing a new strategic vision for the company and invested in our
future," stated Dan Regalado, Executive Vice President and Chief
Financial Officer. "Gross margins increased year over year by 200
basis points excluding the one-time benefit of a settlement that
reduced our cost of sales, and in February 2006, we established a $1.2
million revolving line of credit to finance additional investments or
working capital needs that might arise."
Operating expenses for the year increased 16% compared to 2004
primarily driven by higher legal expenses, higher research and
development expenses, increased wages and benefits, and a one-time
severance expense. Total operating expenses for 2005 were $5.2 million
as compared to $4.5 million in 2004 as restated.
EBITDA, which is Earnings Before Interest, Taxes, Depreciation and
Amortization, is a non-GAAP financial measure which management uses as
part of its performance appraisal in reviewing the Company's ongoing
operational business trends related to its financial condition and
results of operations. For the year ended December 31, 2005, EBITDA
was approximately $467,500 compared to $644,300 in 2004.
The Company had cash and investments of approximately $1.3 million
at December 31, 2005 with a current ratio of 3.2 to 1.
2005 Highlights
-- Successful President/CEO transition announced and executed.
-- LED revenues increased 21%.
-- Gross Margins improved 8.0% to 39% on a normalized basis.
-- New SaVi(TM) brand of architectural LED products was
introduced.
-- New LED and Fiber Optic Training and Development Center opened
in November.
-- Six patent applications were filed; one new patent was issued
bringing the total for issued company patents to nineteen.
About Super Vision International, Inc.
Super Vision International's vision is to incorporate Light, Color
and Imagination with advanced technology to become one of the world's
leading suppliers of lighting and lighting control products that add
visual excitement, accent, impact and identity to commercial and
residential lighting projects around the world. For more information,
please visit the Super Vision web site at http://www.svision.com.
Certain of the above statements contained in this press release
are forward-looking statements that involve a number of risks and
uncertainties. Such forward-looking statements are within the meaning
of that term in Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Reference is made to Super
Vision's filings under the Securities Exchange Act for factors that
could cause actual results to differ materially. Super Vision
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events, or otherwise. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve risks and uncertainties, and that actual results may
differ materially from those indicated in the forward-looking
statements as a result of various factors. Readers are cautioned not
to place undue reliance on these forward-looking statements.
-0-
*T
SUPER VISION INTERNATIONAL, INC.
STATEMENTS OF OPERATIONS
Year Ended
December 31,
2005 2004
(as restated)
------------ -------------
Revenues $11,983,223 $11,894,666
Cost of sales 7,110,595 7,605,656
------------ -------------
Gross margin 4,872,628 4,289,010
Operating expenses:
Selling, general and administrative 4,691,905 4,087,412
Research and development 552,209 418,177
(Gain) Loss on disposal of property and
equipment (6,000) 18,937
------------ -------------
Total operating expenses 5,238,114 4,524,526
------------ -------------
Operating loss (365,486) (235,516)
Non-operating income (expense):
Interest income 55,540 32,392
Other income 189,480 192,691
Interest expense (367,992) (390,999)
------------ -------------
Total non-operating expense, net (122,972) (165,916)
------------ -------------
Net loss $ (488,458) $ (401,432)
============ =============
Basic and diluted loss per common share $ (0.19) $ (0.16)
============ =============
Basic and diluted weighted average shares
outstanding 2,542,579 2,541,601
============ =============
*T
-0-
*T
Selected Balance Sheet Data
As of December 31,
2005 2004
(as restated)
------------- -------------
Cash and investments $ 1,274,150 $ 1,926,042
Current assets $ 6,311,190 $ 6,679,561
Total assets $ 9,323,808 $ 9,829,528
Current liabilities $ 1,995,530 $ 1,794,366
Total liabilities $ 4,288,386 $ 4,313,034
Total stockholders' equity $ 5,035,422 $ 5,516,494
*T
-0-
*T
Reconciliation of Non-GAAP Financial Measure
The following table reconciles GAAP to non-GAAP financial measure:
Earnings Before Interest Taxes Depreciation and Amortization
Year Ended December 31,
-------------------------------------
2005 2004 Change %
(as restated)
-------------------------------------
Net Loss (488,458) (401,432) (87,026) (22%)
Plus:
Interest expense 367,992 390,999 (23,007) (6%)
Depreciation 549,311 580,165 (30,854) (5%)
Amortization and impairment 38,654 74,556 (35,902) (48%)
Taxes -- -- -- --
-------------------------------------
EBITDA 467,499 644,288 (176,789) (27%)
=====================================
% of Revenues 4% 5%
*T