The following excerpt is from the company's SEC filing.
Portland, Oregon Schmitt Industries, Inc. (NASDAQ: SMIT) today announced its operating results for the second quarter of Fiscal 2019.
Highlights of the three and six months ended November 30, 2018:
Balancer segment sales increased $114,634, or 5.1%, to $2,345,480 for the three months ended November 30, 2018 as compared to $2,230,846 for the three months ended November 30, 2017. Balancer segment sales increased $238,569, or 5.5%, to $4,539,812 for the six months ended November 30, 2018 as compared to $4,301,243 for the six months ended November 30, 2017.
Measurement segment sales decreased $382,036, or 24.8%, to $1,157,998 for the three months ended November 30, 2018 as compared to $1,540,034 for the three months ended November 30, 2017. Measurement segment sales decreased $149,166, or 5.8%, to $2,404,119 for the six months ended November 30, 2018 from $2,553,285 for the six months ended November 30, 2017.
Within the Measurement segment, Xact monitoring revenues continued to grow, increasing 19.0% for the three months ended November 30, 2018 compared to the three months ended November 30, 2017. Xact monitoring revenues increased 17.0% for the six months ended November 30, 2018 as compared to the same period in the prior year.
Operating expenses decreased $37,784, or 2.3%, to $1,587,419 for the three months November 30, 2018 from $1,625,203 for the three months ended November 30, 2017, and decreased $128,985, or 4.1%, to $3,041,019 for the six months ended November 30, 2018 compared to $3,170,004 for the six months ended November 30, 2017. These results include
2018 proxy and reorganization expenses of $125,280 and $257,330 incurred during the three-month and
periods ended November 30, 2018, respectively, that were not incurred during the same periods in the prior year.
Summary data for the three months ended November 30, 2018 and 2017:
Three Months Ended November 30,
Total net sales
Net income (loss)
Net income (loss) per fully diluted share
: 2765 NW N
97210 503/227-7908 F
Summary data for the six months ended November 30, 2018 and 2017:
Six Months Ended November 30,
Although the Company had a challenging quarter in the Measurement segment due to a customer timing shift in the Xact product line and a tough year-over-year comparison in the Acuity line, the core Balancer segment remained strong. Since taking over on December 1, 2018, the newly appointed management team and Schmitt employees have begun to identify processes and practices with a sole focus on increasing the profitability of the Company commented Michael R. Zapata, Executive Chairman and President of Schmitt Industries. In furtherance of our announced
we look forward to communicating expected actions in the coming months, Zapata added.
About Schmitt Industries
Schmitt Industries, Inc. (the Company) designs, manufactures and sells high precision test and measurement products for two main business segments: the Balancer Segment and the Measurement Segment. For the Balancer Segment, the Company designs, manufactures and sells computer-controlled vibration detection, balancing and process control systems for the worldwide machine tool industry, particularly for grinding machines. The Company also provides sales and service for Europe and Asia through its wholly owned subsidiary, Schmitt Europe Limited (SEL), located in Coventry, England and through its sales representative office located in Shanghai, China. For the Measurement Segment, the Company has two core product lines: the Acuity
product line, which consists of sales of laser and white light sensor distance measurement and dimensional sizing products; and the Xact
product line, which consists of sales of remote tank monitoring products that measure the fill levels of tanks holding propane, diesel and other tank-based liquids and revenues from the related monitoring services associated with the transmission of data from the tanks to a secure web site.
This document may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations, estimates and projections about the Companys business that are based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to, general economic conditions and global financial concerns, the volatility of the Companys primary markets, the ability to develop new products to satisfy changes in consumer demands, the intensity of competition, increased pricing pressure from both competitors and customers, the effect on production time and overall costs of products if any of our primary suppliers are lost or if a primary supplier increases the prices of raw materials or components, the ability to ramp up manufacturing to satisfy increasing demand, maintenance of a significant investment in inventories in anticipation of future sales, existing cash levels which may not be sufficient to fund future growth, fluctuations in quarterly and annual operating results, risks associated with operating a global business including risks from international sales, reduction in demand or loss of significant customers, changes in foreign import tariffs and currency fluctuations including the United Kingdoms likely exit from the European Union, ability to reduce operating costs if sales decline, attracting and retaining key management and qualified technical and sales personnel, impact resulting from the actions of activist shareholders, changes in effective tax rates, protection of intellectual property rights and the increased costs due to changes in securities laws and regulations.
For further information regarding risks and uncertainties associated with the Companys business, please refer to Schmitts SEC filings, including, but not limited to, its Forms
The forward-looking statements in this release speak only as of the date on which they were made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes to this document made by wire services or internet service providers.
For more information contact:
Ann M. Ferguson, CFO and Treasurer
or visit our web site at
SCHMITT INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
November 30, 2018
May 31, 2018
Cash and cash equivalents
Accounts receivable, net
Income taxes receivable
Total current assets
Property and equipment, net
Intangible assets, net
LIABILITIES & STOCKHOLDERS EQUITY
Accrued payroll liabilities
Other accrued liabilities
Income taxes payable
Total current liabilities
Common stock, no par value, 20,000,000 shares authorized, 3,994,545 shares issued and outstanding at May 31, 2018 and November 30, 2018
Accumulated other comprehensive loss
Total stockholders equity
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2018 AND 2017
Cost of sales
General, administration and sales
Research and development
Total operating expenses
Operating income (loss)
Other income (expense), net
Income (loss) before income taxes
Provision for income taxes
Net loss per common share, basic
Weighted average number of common shares, basic
Net loss per common share, diluted
Weighted average number of common shares, diluted
The above information was disclosed in a filing to the SEC. To see the filing, click here.
To receive a free e-mail notification whenever Schmitt Industries makes a similar move, sign up!
Other recent filings from the company include the following: