Technitrol Reports Record Revenues and Continued Earnings Growth in Q106
Technitrol, Inc. reported consolidated revenues of a record $221.1 million for its first fiscal quarter ended March 31, 2006. Revenues were $184.5 million in the previous quarter and $141.4 million in the first quarter of 2005.
According to U.S. Generally Accepted Accounting Principles (GAAP), first-quarter net earnings from continuing operations were $12.0 million, or $0.30 per diluted share, including after-tax severance and asset-impairment expenses totaling $0.8 million, or $0.02 per share, and non-recurring costs amounting to $0.6 million after taxes, or $0.01 per share, related to a purchase accounting step-up in inventory value resulting from the ERA Group acquisition, which was completed in January 2006. Excluding these items, earnings per diluted share in the first quarter were $0.33.
By comparison, GAAP net earnings from continuing operations in the previous quarter were $7.8 million, or $0.19 per diluted share, including after-tax severance and asset-impairment expenses totaling $2.0 million, or $0.05 per share, the cumulative effect of an accounting change (FIN No. 47) of $0.6 million, or $0.01 per share, and the effect of a purchase accounting step-up in inventories from the acquisition of LK products in September 2005 amounting to $1.5 million, or $0.04 per share. Net income in the year-ago quarter was $5.1 million, or $0.13 per diluted share, including after-tax severance and asset-impairment expenses of $0.9 million, or $0.02 per share. Excluding the items discussed above, continuing earnings per diluted share were $0.29 in the previous quarter and $0.16 in the first quarter of 2005.
Earnings before interest, taxes, depreciation and amortization were $24.3 million in the first quarter of 2006, compared with $21.4 million in the previous quarter and $14.0 million in the first quarter of 2005, excluding pre-tax severance and asset-impairment expenses in all periods, the cumulative effect of accounting changes, if any, and the purchase accounting step-up adjustments related to LK and ERA inventories in their respective periods.
Revenues at the company's Pulse division for the first quarter were $144.2 million, compared with $121.0 million in the previous quarter and $75.6 million in the first quarter of 2005. Pulse's GAAP operating profit in the first quarter was $12.3 million, compared with $9.6 million in the fourth quarter and $6.0 million in the first quarter of 2005.
Pulse's first-quarter revenues reflected continued strong sales performance across all non-consumer product lines and the addition of revenues from ERA Group. Antenna division revenues benefited from strong worldwide demand for wireless terminal devices, consistent with recent reports from handset manufacturers. Pulse's legacy networking, telecommunications, power conversion and military/aerospace divisions continued to show steady improvement across virtually all product lines. Automotive division revenues reflected the strength of the automotive market in Europe, where virtually all of that division's products are sold. Shipments in the consumer division tapered off from the previous quarter, reflecting lower production levels for all types of televisions in anticipation of cooling consumer demand as the Winter Olympics have ended and the World Cup soccer matches draw closer.
