EX-99.1 2 exhibit_99.htm EXHIBIT 99.1 Exhibit 99.1

Exhibit 99.1

 

GERBER SCIENTIFIC, INC. ANNOUNCES FISCAL 2007 FIRST QUARTER RESULTS

SOUTH WINDSOR, CT -- Gerber Scientific, Inc. (NYSE: GRB) today reported fiscal 2007 first quarter net income of $2.0 million, or $0.09 per diluted share, on revenue of $137.5 million, compared with a net loss of $1.1 million, or $0.05 per diluted share, on revenue of $128.8 million for the first quarter of fiscal 2006. The prior year first quarter net loss included a non-cash income tax charge of $2.3 million, or $0.10 per diluted share, which was attributable to the reversal of a deferred tax asset associated with a tax legislation change in the United Kingdom. Foreign currency translation had the effect of increasing revenue by approximately $2.6 million in the first quarter of fiscal 2007 compared with the first quarter of fiscal 2006.

Marc T. Giles, President and Chief Executive Officer, said: "We had a strong start to our fiscal year achieving both revenue and operating profit objectives. We are pleased with our year-over-year revenue growth of nearly 7 percent, which was driven by new products sales and our resurgence in China.

"Our operating income of $4.4 million reflects an increase of 28 percent over the comparable quarter in the prior year. During the quarter, we used $10.1 million of cash from operations less capital expenditures, primarily to fund higher inventories and other working capital requirements."

For additional information please see our Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2006, which will be filed with the Securities and Exchange Commission.

About Gerber Scientific, Inc.

Gerber Scientific, Inc. (http://www.gerberscientific.com) is a leading international supplier of sophisticated automated manufacturing systems for the sign making and specialty graphics, apparel and flexible materials and ophthalmic lens processing industries. Headquartered in South Windsor, Connecticut, the Company operates through four businesses: Gerber Scientific Products, Spandex Ltd., Gerber Technology and Gerber Coburn.

Cautionary Note Concerning Factors That May Affect Future Results

Statements contained in this news release regarding the Company's expected financial condition, results of operations, cash flows and product launches are forward-looking statements that involve risks and uncertainties. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, readers are referred to the Company's filings with the Securities and Exchange Commission, including but not limited to, the information included in Gerber Scientific's Annual Report on Form 10-K for the fiscal year ended April 30, 2006 under the headings "Business," "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations - Cautionary Note Concerning Factors That May Influence Future Results," as well as information included in subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K, which outline certain important risks regarding the Company's forward-looking statements. These risks include, but are not limited to, delays in the Company's new product development and commercialization, intense competition in markets for each of the Company's operating segments, rapid technological advances, availability and cost of raw materials, apparel trade quotas, volatility in foreign currency exchange rates and fluctuations in interest rates. The Company expressly disclaims any obligation to update any of these forward-looking statements, except as required by law. Actual future results or events may differ materially from these forward-looking statements.

 


 

 

GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

Quarter Ended
July 31,

In thousands, except per share data

2006

 

2005

       

Revenue:

     

     Product sales

$ 121,412 

 

$ 113,417 

     Service sales

    16,076 

 

    15,347 

  137,488 

  128,764 

Costs and Expenses:

     

     Cost of products sold

86,248 

 

79,865 

     Cost of services sold

9,535 

 

9,643 

     Selling, general and administrative expenses

31,363 

 

29,575 

     Research and development

5,968 

 

6,312 

     Restructuring charges

          ---

 

         (36)

 

  133,114 

 

  125,359 

       

Operating income

4,374 

 

3,405 

       

Other income (expense), net

(159)

 

(175)

Interest expense

     (777)

 

    (1,431)

Income before income taxes

3,438 

 

1,799 

Income tax expense

      1,414 

 

      2,882 

Net income (loss)

  $  2,024 

 

  $  (1,083)

       

Earnings (Loss) per share of common stock:

     Basic

$       0.09

 

$    (0.05)

     Diluted

$       0.09

 

$    (0.05)

       

Weighted average shares outstanding:

     

     Basic

22,621

 

22,311

     Diluted

23,051

 

22,311


 

 

GERBER SCIENTIFIC, INC. AND SUBSIDIARIES
CONSOLIDATED SUMMARY BALANCE SHEETS

(Unaudited)


In thousands

   July 31,
        2006     

 

   April 30,
      2006   

Assets

     

Current Assets:

     
Cash and cash equivalents

$    8,063 

 

$    14,145 

Accounts receivable, net

89,642 

 

92,422 

Inventories

60,171 

 

53,794 

Prepaid expenses and other current assets

     17,213 

 

    16,718 

Total current assets

   175,089 

 

  177,079 

       

Property, plant and equipment, net

    37,357 

 

    38,366 

Goodwill

    51,840 

 

    51,554 

Deferred income taxes

27,765 

 

27,696 

Other assets

     15,526 

 

      15,785 

Total assets

$ 307,577 

 

$ 310,480 

       

Liabilities and Shareholders' Equity

     

Current Liabilities:

     
Current portion of long-term debt

$    1,600 

 

$   284 

Accounts payable

44,237 

 

53,886 

Accrued and other liabilities

    56,773 

 

    57,248 

Total current liabilities

  102,610 

 

  111,418 

       

Long-term debt

   38,778 

 

   36,836 

Other long-term liabilities

   36,301 

 

   36,610 

       

Shareholders' equity

  129,888 

 

  125,616 

Total liabilities and shareholders' equity

$ 307,577 

 

$ 310,480