LGL Group Inc (LGL, Financial) filed Quarterly Report for the period ended 2009-09-30.
The LGL Group, Inc. is a holding corporation for two manufacturing subsidiaries. M-tron Industries, Inc. designs and manufactures customized electronic components used primarily to control the frequency or timing of electronic signals in communications systems.Lynch Systems, Inc. designs and produces advanced manufacturing systems for the electronic display and consumer glass industries. Lgl Group Inc has a market cap of $5.8 million; its shares were traded at around $2.63 with and P/S ratio of 0.14.
The Company s cash and cash equivalents and the investment in marketable security at September 30, 2009, was $4,583,000 as compared to $5,339,000 at December 31, 2008. At September 30, 2009, MtronPTI had $2,363,000 outstanding and unused borrowing capacity of $1,637,000 under the FNBO Revolving Loan (as defined below), compared with $2,749,000 outstanding and unused borrowing capacity of $2,751,000 at December 31, 2008 (at which time the maximum amount that could be borrowed under the FNBO Revolving Loan was $5,500,000 rather than $4,000,000).
Cash provided by operating activities was $596,000 for the nine months ended September 30, 2009, compared to cash used in operating activities from operations of $344,000 for the nine months ended September 30, 2008. The increase in cash provided by operating activities is due to the net decrease in the accounts receivable and inventory balances, representing a net change in the outstanding accounts receivable balance for the nine months ended September 30, 2009, from the collection of accounts receivable of $2,213,000, compared to a net collection of accounts receivable of $317,000 during the comparable period in 2008. The decrease in the inventory balances for the nine months ended September 30, 2009, was $600,000 compared to an increase of $547,000 for the comparable period in 2008.
Cash used in financing activities from operations was $1,073,000 for the nine months ended September 30, 2009, compared with cash provided by financing activities of $744,000 for the nine months ended September 30, 2008. The increase in cash used in financing activities is due primarily to an increase in net repayments on the Company s note payable for the nine months ended September 30, 2009 of $386,000 compared to a net borrowing of $1,039,000 during the comparable period in 2008. The net repayments on the Company s long-term debt with RBC increased to $687,000 for the nine months ended September 30, 2009, compared to net repayments of $295,000 for the comparable period in 2008.
At September 30, 2009, total liabilities of $9,930,000 were $1,390,000 less than the total liabilities at December 31, 2008 of $11,320,000. The debt decreased due to the decrease in MtronPTI s borrowing on its revolving loan, which was in addition to a decrease in term loans outstanding due to scheduled repayments. At September 30, 2009, the Company had $361,000 in current maturities of long-term debt compared with $397,000 at December 31, 2008.
On October 14, 2004, MtronPTI entered into a loan agreement with FNBO which was amended and restated on August 18, 2009 (the “FNBO Loan Agreement”). The FNBO Loan Agreement provides for a short-term credit facility of up to $4,000,000 as of September 30, 2009 (the “FNBO Revolving Loan”). The principal balance of the FNBO Revolving Loan bears interest at 30-day LIBOR plus 4.75%, with interest only payments due monthly and the final payment of principal and interest due on June 30, 2010. There is also an unused commitment fee of 0.50% per annum, payable quarterly. At September 30, 2009, the amount outstanding under the FNBO Revolving Loan was $2,363,000, with unused borrowing capacity of $1,637,000. The unused borrowing capacity under the FNBOP Revolving Loan as of December 31, 2008 was $2,751,000, which was prior to the August 18, 2009 amendment that reduced the maximum amount that could be borrowed under the FNBO Revolving Loan from $5,500,000 to $4,000,000.
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The LGL Group, Inc. is a holding corporation for two manufacturing subsidiaries. M-tron Industries, Inc. designs and manufactures customized electronic components used primarily to control the frequency or timing of electronic signals in communications systems.Lynch Systems, Inc. designs and produces advanced manufacturing systems for the electronic display and consumer glass industries. Lgl Group Inc has a market cap of $5.8 million; its shares were traded at around $2.63 with and P/S ratio of 0.14.
Highlight of Business Operations:
Consolidated revenues decreased by $2,927,000, or 28.6%, to $7,321,000 for the third quarter 2009 from $10,248,000 for the comparable period in 2008. The decrease is due primarily to a general economic slowdown and a corresponding decrease in demand for the electronic components in which our products are used. This has resulted in a decrease in foreign sales of $2,009,000 and a decrease in domestic sales of $918,000 over the comparable period in 2008. The Company has continued its efforts to offset the decrease in revenue by expanding into new geographic regions and into additional segments of the timing and frequency equipment market, such as military personnel protection and homeland security. This emphasis is expected to partially offset the recessionary impact on our current customers and revenue base by providing additional revenues from these target segments.The Company s cash and cash equivalents and the investment in marketable security at September 30, 2009, was $4,583,000 as compared to $5,339,000 at December 31, 2008. At September 30, 2009, MtronPTI had $2,363,000 outstanding and unused borrowing capacity of $1,637,000 under the FNBO Revolving Loan (as defined below), compared with $2,749,000 outstanding and unused borrowing capacity of $2,751,000 at December 31, 2008 (at which time the maximum amount that could be borrowed under the FNBO Revolving Loan was $5,500,000 rather than $4,000,000).
Cash provided by operating activities was $596,000 for the nine months ended September 30, 2009, compared to cash used in operating activities from operations of $344,000 for the nine months ended September 30, 2008. The increase in cash provided by operating activities is due to the net decrease in the accounts receivable and inventory balances, representing a net change in the outstanding accounts receivable balance for the nine months ended September 30, 2009, from the collection of accounts receivable of $2,213,000, compared to a net collection of accounts receivable of $317,000 during the comparable period in 2008. The decrease in the inventory balances for the nine months ended September 30, 2009, was $600,000 compared to an increase of $547,000 for the comparable period in 2008.
Cash used in financing activities from operations was $1,073,000 for the nine months ended September 30, 2009, compared with cash provided by financing activities of $744,000 for the nine months ended September 30, 2008. The increase in cash used in financing activities is due primarily to an increase in net repayments on the Company s note payable for the nine months ended September 30, 2009 of $386,000 compared to a net borrowing of $1,039,000 during the comparable period in 2008. The net repayments on the Company s long-term debt with RBC increased to $687,000 for the nine months ended September 30, 2009, compared to net repayments of $295,000 for the comparable period in 2008.
At September 30, 2009, total liabilities of $9,930,000 were $1,390,000 less than the total liabilities at December 31, 2008 of $11,320,000. The debt decreased due to the decrease in MtronPTI s borrowing on its revolving loan, which was in addition to a decrease in term loans outstanding due to scheduled repayments. At September 30, 2009, the Company had $361,000 in current maturities of long-term debt compared with $397,000 at December 31, 2008.
On October 14, 2004, MtronPTI entered into a loan agreement with FNBO which was amended and restated on August 18, 2009 (the “FNBO Loan Agreement”). The FNBO Loan Agreement provides for a short-term credit facility of up to $4,000,000 as of September 30, 2009 (the “FNBO Revolving Loan”). The principal balance of the FNBO Revolving Loan bears interest at 30-day LIBOR plus 4.75%, with interest only payments due monthly and the final payment of principal and interest due on June 30, 2010. There is also an unused commitment fee of 0.50% per annum, payable quarterly. At September 30, 2009, the amount outstanding under the FNBO Revolving Loan was $2,363,000, with unused borrowing capacity of $1,637,000. The unused borrowing capacity under the FNBOP Revolving Loan as of December 31, 2008 was $2,751,000, which was prior to the August 18, 2009 amendment that reduced the maximum amount that could be borrowed under the FNBO Revolving Loan from $5,500,000 to $4,000,000.
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