NEW YORK (Business Wire) -- National Patent Development Corporation (OTC Bulletin Board: NPDV.OB - News) today reported a net loss of $(767,000), $(0.04) per basic share, for the three months ended September 30, 2009, compared to a net loss of $(870,000), $(0.05) per basic share, for the three months ended September 30, 2008.
For the nine months ended September 30, 2009, the Company reported a net loss of $(2,143,000), $(0.12) per basic share, compared to a net loss of $(2,675,000), $(0.16) per basic share, in the corresponding nine month period a year ago.
For the three and nine months ended September 30, 2009, the Company reported revenue from continuing operations of $27,131,000 and $80,027,000, respectively, compared to $31,216,000 and $94,114,000 for the three and nine months ended September 30, 2008, respectively.
The results for the nine months ended September 30, 2008 include a charge of $1,096,000 related to the resignation of the former Chairman of the Board of its wholly owned subsidiary, Five Star Products, Inc. (“Five Star”) on March 25, 2008 and the three and nine months ended September 30, 2008 include $489,000 of previously unrecognized compensation cost related to unvested share-based compensation arrangements of Five Star being charged to operations. The Company's operating loss, for the nine months ended September 30 was $(1,028,000) in 2009 and $(2,417,000) in 2008. For the three months ended September 30 the Company's operating loss was $(381,000) in 2009 and $(757,000) in 2008.
About National Patent Development Corporation
National Patent Development Corporation (OTC Bulletin Board: NPDV.OB - News), is the owner of Five Star. Five Star is engaged in the wholesale distribution of paint sundry and hardware products in the Northeast and Middle-Atlantic states with particular strength in the greater New York metropolitan area. The Company distributes products to approximately 3,000 independent retail dealers, which include paint stores, independent hardware stores, lumber yards, and do-it yourself centers. The Company distributes a range of private label products sold under the "Five Star" name. Five Star operates two distribution centers, the primary one located in East Hanover, NJ and another in Newington, CT. In addition, National Patent owns certain non-core assets including real estate.
Safe Harbor Statement
This press release contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995, including statements relating to, among other things, future business plans, strategies and financial position, working capital and capital expenditure needs, and any statements of belief and any statements of assumptions underlying any of the foregoing.
These forward-looking statements reflect the current view of the management of National Patent Development Corporation with respect to future events and financial performance and are subject to certain risks, uncertainties, assumptions and changes in condition that could cause actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of National Patent Development Corporation, including, but not limited to the risks, uncertainties, assumptions and changes in condition detailed National Patents' periodic reports and registration statements filed with the Securities and Exchange Commission.
National Patent Development Corporation does not intend to, and disclaims any duty or obligation to, update or revise any forward-looking statements or industry information set forth in this press release to reflect new information, future events or otherwise, except as required by law.
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NATIONAL PATENT DEVELOPMENT CORPORATION AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA |
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(unaudited) |
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(in thousands, except per share data) |
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Three months ended
September 30, |
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Nine months ended
September 30, |
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| 2009 | 2008 | 2009 | 2008 | |||||||||||||
| Sales | $ | 27,131 | $ | 31,216 | $ | 80,027 | $ | 94,114 | ||||||||
| Cost of sales | 22,591 | 25,702 | 66,631 | 77,975 | ||||||||||||
| Gross margin | 4,540 | 5,514 | 13,396 | 16,139 | ||||||||||||
| Selling, general and administrative expenses | (4,921 | ) | (6,271 | ) | (14,424 | ) | (17,460 | ) | ||||||||
| Charge related to resignation of Chairman | ||||||||||||||||
| of Five Star | - | - | - | (1,096 | ) | |||||||||||
| Operating loss | (381 | ) | (757 | ) | (1,028 | ) | (2,417 | ) | ||||||||
| Interest expense | (389 | ) | (370 | ) | (1,138 | ) | (1,060 | ) | ||||||||
| Investment and other income (loss), net | 7 | (73 | ) | 35 | 78 | |||||||||||
| Loss from continuing operations before | ||||||||||||||||
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income tax expense |
(763 | ) | (1,200 | ) | (2,131 | ) | (3,399 | ) | ||||||||
| Income tax (expense) benefit | (4 | ) | 354 | (12 | ) | 329 | ||||||||||
| Loss from continuing operations | (767 | ) | (846 | ) | (2,143 | ) | (3,070 | ) | ||||||||
| Income from discontinued operations, net of | ||||||||||||||||
| taxes, including an $87 gain on sale of assets | - | - | 429 | |||||||||||||
| Consolidated net loss | (767 | ) | (846 | ) | (2,143 | ) | (2,641 | ) | ||||||||
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Less: net income attributable to noncontrolling
Interest |
- | (24 | ) | - | (34 | ) | ||||||||||
| Net loss attributable to National Patent | ||||||||||||||||
| Development Corporation | $ | (767 | ) | $ | (870 | ) | $ | (2,143 | ) | $ | (2,675 | ) | ||||
| Basic and diluted net loss per share | ||||||||||||||||
| attributable to National Patent Development | ||||||||||||||||
| Corporation: | ||||||||||||||||
| Continuing operations | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.19 | ) | ||||
| Discontinued operations | - | - | 0.03 | |||||||||||||
| Net loss per share | $ | (0.04 | ) | $ | (0.05 | ) | $ | (0. 12 | ) | $ | (0.16 | ) | ||||
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NATIONAL PATENT DEVELOPMENT CORPORATION AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS DATA |
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(in thousands) |
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| September 30, | December 31, | |||||||
| 2009 | 2008 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 11,588 | $ | 13,089 | ||||
| Accounts and other receivables, less allowance | ||||||||
| for doubtful accounts of $406 and $420 | 12,978 | 9,814 | ||||||
| Inventories (finished goods) | 21,965 | 23,045 | ||||||
| Deferred tax asset | 107 | 132 | ||||||
| Prepaid expenses and other current assets | 1,121 | 1,334 | ||||||
| Total current assets | 47,759 | 47,414 | ||||||
| Property, plant and equipment, net | 739 | 912 | ||||||
| Intangible assets, net | 503 | 599 | ||||||
| Deferred tax asset | 1,243 | 1,537 | ||||||
| Other assets | 3,209 | 3,209 | ||||||
| Total assets | $ | 53,453 | $ | 53,671 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities | ||||||||
| Short term borrowings | $ | 15,868 | $ | 18,375 | ||||
| Accounts payable and accrued expenses | 12,042 | 8,236 | ||||||
| Total current liabilities | 27,910 | 26,611 | ||||||
| Liability related to interest rate swap | 907 | 1,111 | ||||||
| Contingencies (Notes 10 and 11) | ||||||||
| Stockholders' equity | ||||||||
| Common stock | 181 | 181 | ||||||
| Additional paid-in capital | 29,349 | 28,642 | ||||||
| Deficit | (2,992 | ) | (849 | ) | ||||
| Treasury stock, at cost | (1,358 | ) | (1,358 | ) | ||||
| Accumulated other comprehensive loss | (544 | ) | (667 | ) | ||||
| Total stockholders' equity | 24,636 | 25,949 | ||||||
| Total liabilities and stockholders' equity | $ | 53,453 | $ | 53,671 | ||||
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