ANN ARBOR — Arotech Corp. (NasdaqGM: ARTX), a provider of defense and security products for the military, law enforcement and security markets, reported record revenue for the quarter and full year ended Dec. 31.
Revenues from continuing operations for 2012 were $80.1 million, compared to $62.1 million for 2011, an increase of 29 percent.
Gross profit from continuing operations for 2012 was $17.9 million, or 22 percent of revenues, compared to $16.2 million, or 26 percent of revenues, for 2011. The reason for the decrease was due to some high revenue projects with a large component of lower margin hardware included, which were delivered in 2012.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the year was $2.6 million, compared to $1.7 million for the corresponding period last year, an improvement of 53 percent.
The net loss from all operations was $3.2 million or 22 cents a share, compared to $12.3 million or 82 cents a share in 2011.
Revenue from continuing operations for the fourth quarter was $22.1 million, up 23 percent from $18 million a year earlier.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) from continuing operations for the quarter was $872,000, compared to $2 million for the corresponding period of 2011, a decline of 45 percent.
The company’s net income from all operations was $256,000 or 2 cents a share, compared to a loss of $5.3 million or 37 cents a share in the same quarter of 2011.
Backlog of orders from continuing operations totaled approximately $87.7 million as of Dec. 31, 2012 compared to $81.9 million as of Dec. 31, 2011.
As of Dec. 31, 2012, the Company had $1.6 million in cash and $186,000 in restricted collateral deposits, as compared to Dec. 31, 2011, when the company had $2.3 million in cash and $1.7 million in restricted collateral deposits.
“We are enormously encouraged by our achievements in 2012 and in the turnaround we have experienced in the second half of the year,” said Arotech chairman and CEO Robert S. Ehrlich. “Our business continues to grow. Our activities in the simulation arena remain strong, stable, profitable and cash generating while batteries are performing well, with significant potential to become an additional growth engine in the coming quarters. Looking ahead and based on our current backlog, we expect 2013 to be another good year for Arotech … Our business platform in 2013 is much improved over previous years and we look forward to continuing to unleash our potential in the quarters and years ahead.”
The company will host a conference call tomorrow on Tuesday, March 19 at 9 a.m. Eastern time. Those wishing to access the conference call should dial (888) 281-1167 in the United States or (347) 293-1926 elsewhere. A replay of the conference call will be available starting Tuesday at 12:30 p.m. Eastern time until Monday, March 25 at 11:59 p.m. The replay telephone number is 1-888-782-4291 (U.S.).
Arotech provides multimedia interactive simulators and trainers and advanced zinc-air and lithium batteries and chargers. Arotech operates through two major business divisions: Training and Simulation, and Batteries and Power Systems.
Arotech is incorporated in Delaware, with corporate offices in Ann Arbor, and research, development and production subsidiaries in Alabama, Michigan and Israel.