COMPANY CONTACTS:
Kenneth H. Traub
President and Chief Executive Officer
Tel. (609) 632-0800
KTRAUB@ABNH.COM
Mark J. Bonney
Executive Vice President and Chief Financial Officer
Tel. (609) 632-0800
MBONNEY@ABNH.COM
AMERICAN BANK NOTE HOLOGRAPHICS REPORTS
THIRD QUARTER FINANCIAL RESULTS
Robbinsville, NJ – November 10, 2005 – American Bank Note Holographics, Inc. (“ABNH” or the “Company”) (OTC Bulletin Board: ABHH) a world leader in the origination, production and marketing of holograms for security applications, today announced financial results for the third quarter and nine months ended September 30, 2005.
Sales in the third quarter of 2005 were $9.0 million, compared with $5.8 million in the third quarter of 2004, an increase of $3.2 million or 54%. Sales for the first nine months of 2005 totaled $22.2 million, compared with $15.7 million for the first nine months of 2004, an increase of $6.5 million or 41%.
Net income for the third quarter of 2005 was $1.1 million, or $0.06 per fully diluted share, compared with net income of $0.6 million, or $0.03 per fully diluted share, for the third quarter of 2004. Net income for the first nine months of 2005 was $2.2 million, or $0.11 per fully diluted share, compared with net income of $1.3 million, or $0.07 per fully diluted share for the first nine months of 2004.
Kenneth H. Traub, President and CEO of ABNH, commented, “The dramatic growth in our business reflects our commitment to providing superior solutions to counterfeiting and fraud for our customers. This year we have made significant investments in our infrastructure, organization, technology and working capital in order to support the increasing global demand for improved product, card and document security solutions. In the card industry, we have expanded our roll-out of HoloMag™ which has received broad global acceptance as it transforms magnetic tape from a widely available commodity to a tightly controlled security product. We are also pleased to have launched important new programs for secure identity documents while we have expanded certain product authentication programs.”
Mark J. Bonney, Executive Vice President and CFO of the Company noted, “During the third quarter, we substantially completed the move and consolidation of our operations into our new facility in Robbinsville, New Jersey. Since the facilities located in Elmsford, New York and Huntingdon Valley, Pennsylvania were not completely vacated and available for sublease by the end of the third quarter, the costs relating to the abandonment of those facilities will be recorded in the fourth quarter. We currently anticipate taking a charge in the fourth quarter of approximately $2.0 million which will be recorded on the ‘Facility consolidation’ line of our Statement of Operations. Our strong financial performance this year is particularly noteworthy in light of the disruptions and expense associated with the Company’s move and consolidation. In addition to those costs which are separately accounted for in the ‘Facility consolidation’ line item, we also incurred expenses that are included in cost of goods sold and selling and administrative expenses associated with the consolidation.”
About American Bank Note Holographics, Inc.
American Bank Note Holographics is a world leader in the origination, production,
and marketing of holograms. The Company's products are used primarily for security
applications such as counterfeiting protection of transaction cards, identity
documents, documents of value, pharmaceuticals and other consumer and industrial
products. The Company's headquarters is in Robbinsville, NJ. For more information,
visit www.abnh.com.
ABNH Forward-Looking Statement
This news release
includes forward-looking statements that involve risks and uncertainties. Although
the Company believes such statements are
reasonable, it can make no assurance that such statements will prove to be
correct. Such statements are subject to certain factors that may cause results
to differ materially from the forward-looking statements. Such factors include
the risk factors discussed in the Company’s filings with the Securities
and Exchange Commission, including its most recent Annual Report on Form 10-K,
a copy of which may be obtained from the Company without charge. The Company
undertakes no obligation to publicly release results of any of these forward-looking
statements to reflect events or circumstances after the date hereof or to reflect
the occurrence of unexpected results.
This release and prior releases are available on the ABNH Web site at www.abnh.com
-Financial Tables to Follow-
ABNH REPORTS THIRD QUARTER FINANCIAL RESULTS/3
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
BALANCE SHEETS
(In thousands, except share data)
|
|
September 30, 2005 |
December 31, 2004 |
| (Unaudited) |
||
|
ASSETS |
||
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ 9,457 |
$ 11,357 |
|
Short-term investments |
— |
1,989 |
|
Accounts receivable, net of allowance for doubtful accounts of $250 and $180 |
6,092 |
3,889 |
|
Inventories, net |
6,018 |
3,394 |
|
Deferred income taxes, net |
1,120 |
983 |
|
Prepaid expenses |
478 |
317 |
|
Total current assets |
23,165 |
21,929 |
|
Machinery, equipment and leasehold improvements, net of accumulated depreciation and amortization of $10,585 and $10,062 |
6,994 |
3,172 |
|
Other assets |
89 |
110 |
|
|
|
|
|
Total Assets |
$ 30,248 |
$ 25,211 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ 3,784 |
$ 1,519 |
|
Accrued expenses |
2,233 |
2,040 |
|
Customer advances |
68 |
69 |
|
Income taxes payable |
915 |
1,058 |
|
Total current liabilities |
7,000 |
4,686 |
|
Other long-term liabilities |
1,370 |
1,211 |
|
Total liabilities |
8,370 |
5,897 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
Preferred stock, authorized 5,000,000 shares; no shares issued or outstanding |
— |
— |
|
Common stock, par value $.01 per share, authorized 40,000,000 shares; issued and outstanding 18,647,469 shares and 18,515,907 shares |
187 |
185 |
|
Additional paid-in capital |
24,444 |
24,058 |
|
Accumulated deficit |
(2,753) |
(4,929) |
|
Total Stockholders’ Equity |
21,878 |
19,314 |
|
Total Liabilities and Stockholders’ Equity |
$ 30,248 |
$ 25,211 |
|
|
|
ABNH REPORTS THIRD QUARTER FINANCIAL RESULTS/4
AMERICAN BANK NOTE HOLOGRAPHICS, INC.
STATEMENTS OF OPERATIONS - UNAUDITED
(In thousands, except per share data)
|
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
||
|
|
2005 |
2004 |
2005 |
2004 |
|
Revenue: |
|
|
|
|
|
Sales |
$ 8,959 |
$ 5,808 |
$22,216 |
$15,749 |
|
Royalty income |
— |
— |
10 |
13 |
| 8,959 |
5,808 |
22,226 |
15,762 |
|
|
Costs and expenses: |
|
|
|
|
|
Cost of goods sold (excluding depreciation and amortization shown below) |
4,227 |
2,413 |
10,187 |
6,943 |
|
Selling and administrative |
2,239 |
1,846 |
6,370 |
5,280 |
|
Research and development |
291 |
319 |
872 |
967 |
|
Depreciation and amortization |
127 |
171 |
755 |
495 |
|
Facility consolidation |
278 |
93 |
600 |
93 |
| 7,162 |
4,842 |
18,784 |
13,778 |
|
|
|
|
|
|
|
|
Operating income |
1,797 |
966 |
3,442 |
1,984 |
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
Interest income |
61 |
29 |
183 |
77 |
|
Patent agreement |
— |
— |
— |
178 |
| 61 |
29 |
183 |
255 |
|
|
|
|
|
|
|
|
Income before provision for income taxes |
1,858 |
995 |
3,625 |
2,239 |
|
Provision for income taxes |
742 |
397 |
1,449 |
895 |
|
|
|
|
|
|
|
Net income |
$ 1,116 |
$ 598 |
$ 2,176 |
$ 1,344 |
|
|
|
|
|
|
|
Net income per share: |
|
|
|
|
|
Basic |
$ 0.06 |
$ 0.03 |
$ 0.12 |
$ 0.07 |
|
Diluted |
$ 0.06 |
$ 0.03 |
$ 0.11 |
$ 0.07 |
|
|
|
|
|
|
|
Weighted average number of shares: |
|
|
|
|
|
Basic |
18,618 |
18,484 |
||