ALANCO TECHNOLOGIES INC. (ALAN, Financial) filed Quarterly Report for the period ended 2009-09-30.
Alanco Technologies, Inc./TSI PRISM is the leading provider of RFID real-time tracking technologies for the corrections industry. TSI PRISM systems track and record the location and movement of inmates and officers, resulting in enhanced facility safety and security and significant staff productivity improvements. Utilizing proprietary Radio Frequency Identification tracking technology, TSI PRISM provides real-time inmate and officer identification, location and tracking both indoors and out, and is currently utilized in prisons in Michigan, California, Illinois, Ohio, Missouri, and Virginia. The Company also participates in the data storage industry through its wholly owned subsidiary, Excel/Meridian Data, Inc., a manufacturer of Network Attached Storage systems. Excel delivers uniquely scalable, manageable and cost-effective storage solutions for all network storage customers. Alanco Technologies Inc. has a market cap of $12.89 million; its shares were traded at around $0.4002 with and P/S ratio of 0.67.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses for the quarter
ended September 30, 2009 were $1,311,300, a $28,500, or 2.1%, decrease when
compared to the $1,339,800 reported for the comparable period of the prior year.
Corporate expenses reported for the current quarter of $160,800 represents an
increase of $158,400 compared to $2,400 reported for the quarter ended September
30, 2008. Corporate expenses in the prior year were unusually low due to an
approximate $297,000 credit from the recovery of legal fees relative to the TSIN
lawsuit that was settled during the quarter ended September 30, 2008. The
current quarter corporate expenses also included credits related to lawsuits.
During the current quarter, the Arizona Court of Appeals vacated an award of
attorney's fees and damages awarded to the Plaintiff in the Arriad Property
lawsuit resulting in the reversal of related accruals in the amount of $126,800.
If both quarters were adjusted for the unusual credits, the corporate expenses
would reflect a decrease of $11,800, or 3.9%.
(Loss) Earnings before Interest, Taxes, Dividends, Depreciation & Amortization
(EBITDA)
The Company believes that (loss) earnings before net interest expense,
income taxes, depreciation, and amortization of intangible assets, (EBITDA), is
an important measure used by management to measure performance. EBITDA may also
be used by certain investors to compare and analyze our operating results
between accounting periods. However, EBITDA should not be considered in
isolation or as a substitute for net income, cash flows or other financial
statement data prepared in accordance with US GAAP or as a measure of our
performance or liquidity. EBITDA for Alanco's 2010 fiscal year first quarter
represents a loss of ($726,300) compared to a loss of ($712,600) for the same
quarter of the prior fiscal year, a change of $13,700, or 1.9%. EBITDA from
continuing operations represents a Net Loss of ($252,500) and ($834,200) for the
quarters ended September 30, 2009 and 2008, respectively. EBITDA before
Stock-based compensation and Corporate Expense for the current quarter was
$77,100 compared to a loss of ($718,700) for the comparable quarter of the prior
year. A reconciliation of the EBITDA calculations are presented below:
Net Loss Attributable to Common Shareholders
Net Loss Attributable to Common Shareholders for the quarter ended
September 30, 2009 amounted to ($1,205,900), or ($.04) per share, a $116,800
reduction when compared to a loss of ($1,322,700), or ($.04) per share, in the
comparable quarter of the prior year. The Company anticipates improved future
operating results, however, actual results may be affected by unfavorable
economic conditions and reduced capital spending budgets. If the economic
conditions in the United States deteriorate or if a wider global economic
slowdown occurs, Alanco may experience a material adverse impact on its
operating results and business conditions.
Consolidated accounts receivable of $1,880,500 at September 30, 2009
reflects a decrease of $422,500, or 18.3%, when compared to the $2,303,000
reported as consolidated accounts receivable at June 30, 2009. The accounts
receivable balance at September 30, 2009 includes receivables from the two
business segments reported as "Assets Held for Sale" at both September 30, 2009
and June 30, 2009, as well as receivables from Wireless Asset Management
segment, the Company's continuing operation. The accounts receivable balance for
the Wireless Asset Management segment at September 30, 2009 was $1,449,900
compared to $1,484,600 at June 30, 2009, a decrease of $34,700, or 2.3%. Days'
sales in receivables for the Wireless Asset Management increased to forty-four
from forty days' sales in receivables reported at June 30, 2009.
Cash provided by financing activities for the three months ended
September 30, 2009 amounted to $512,400, a decrease of $871,000, or 63%,
compared to the $1,383,400 provided by financing activities for the three months
ended September 30, 2008. The decrease in financing activity was primarily due
to a $2 million proceeds from the sale of equity instruments during the previous
quarter ended September 30, 2008.
On July 18, 2003, Arraid Property L.L.C., an Arizona Limited Liability
Company ("Arraid LLC"), filed a complaint in the Arizona Superior Court in and
for Maricopa County, Arizona (case number CV 2003-13999) against the Company and
its wholly owned subsidiary, Arraid, Inc., alleging breach of lease and seeking
substantial monetary damages in excess of $3 million. The suit relates to an
expired lease agreement for property previously leased by Arraid. Following a
trial, the Court found in favor of Arraid LLC against the Company with respect
to certain factual findings resulting in damages owed by the Company in an
amount of approximately $35,000, less than one percent of the amount sought by
the plaintiff. The court determined that the plaintiff was the prevailing party,
and awarded the plaintiff approximately $95,000 in attorney's fees and costs.
The Company appealed the decision to the Arizona Court of Appeals. The Court of
Appeals vacated the award of attorney's fees against the Company as well as some
of the damages awarded to the plaintiff, awarded the Company $60,000 in appeal
legal fees and in excess of $10,000 in appeal costs, and returned the case to
the trial court to determine the final judgment and to award the successful
party its legal fees. The matter has been heard in the Superior Court and the
Company anticipates final resolution of the matter in the near future.
Read the The complete ReportALAN is in the portfolios of Robert Bruce of Bruce & Co., Inc..
Alanco Technologies, Inc./TSI PRISM is the leading provider of RFID real-time tracking technologies for the corrections industry. TSI PRISM systems track and record the location and movement of inmates and officers, resulting in enhanced facility safety and security and significant staff productivity improvements. Utilizing proprietary Radio Frequency Identification tracking technology, TSI PRISM provides real-time inmate and officer identification, location and tracking both indoors and out, and is currently utilized in prisons in Michigan, California, Illinois, Ohio, Missouri, and Virginia. The Company also participates in the data storage industry through its wholly owned subsidiary, Excel/Meridian Data, Inc., a manufacturer of Network Attached Storage systems. Excel delivers uniquely scalable, manageable and cost-effective storage solutions for all network storage customers. Alanco Technologies Inc. has a market cap of $12.89 million; its shares were traded at around $0.4002 with and P/S ratio of 0.67.
Highlight of Business Operations:
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses for the quarter
ended September 30, 2009 were $1,311,300, a $28,500, or 2.1%, decrease when
compared to the $1,339,800 reported for the comparable period of the prior year.
Corporate expenses reported for the current quarter of $160,800 represents an
increase of $158,400 compared to $2,400 reported for the quarter ended September
30, 2008. Corporate expenses in the prior year were unusually low due to an
approximate $297,000 credit from the recovery of legal fees relative to the TSIN
lawsuit that was settled during the quarter ended September 30, 2008. The
current quarter corporate expenses also included credits related to lawsuits.
During the current quarter, the Arizona Court of Appeals vacated an award of
attorney's fees and damages awarded to the Plaintiff in the Arriad Property
lawsuit resulting in the reversal of related accruals in the amount of $126,800.
If both quarters were adjusted for the unusual credits, the corporate expenses
would reflect a decrease of $11,800, or 3.9%.
(Loss) Earnings before Interest, Taxes, Dividends, Depreciation & Amortization
(EBITDA)
The Company believes that (loss) earnings before net interest expense,
income taxes, depreciation, and amortization of intangible assets, (EBITDA), is
an important measure used by management to measure performance. EBITDA may also
be used by certain investors to compare and analyze our operating results
between accounting periods. However, EBITDA should not be considered in
isolation or as a substitute for net income, cash flows or other financial
statement data prepared in accordance with US GAAP or as a measure of our
performance or liquidity. EBITDA for Alanco's 2010 fiscal year first quarter
represents a loss of ($726,300) compared to a loss of ($712,600) for the same
quarter of the prior fiscal year, a change of $13,700, or 1.9%. EBITDA from
continuing operations represents a Net Loss of ($252,500) and ($834,200) for the
quarters ended September 30, 2009 and 2008, respectively. EBITDA before
Stock-based compensation and Corporate Expense for the current quarter was
$77,100 compared to a loss of ($718,700) for the comparable quarter of the prior
year. A reconciliation of the EBITDA calculations are presented below:
Net Loss Attributable to Common Shareholders
Net Loss Attributable to Common Shareholders for the quarter ended
September 30, 2009 amounted to ($1,205,900), or ($.04) per share, a $116,800
reduction when compared to a loss of ($1,322,700), or ($.04) per share, in the
comparable quarter of the prior year. The Company anticipates improved future
operating results, however, actual results may be affected by unfavorable
economic conditions and reduced capital spending budgets. If the economic
conditions in the United States deteriorate or if a wider global economic
slowdown occurs, Alanco may experience a material adverse impact on its
operating results and business conditions.
Consolidated accounts receivable of $1,880,500 at September 30, 2009
reflects a decrease of $422,500, or 18.3%, when compared to the $2,303,000
reported as consolidated accounts receivable at June 30, 2009. The accounts
receivable balance at September 30, 2009 includes receivables from the two
business segments reported as "Assets Held for Sale" at both September 30, 2009
and June 30, 2009, as well as receivables from Wireless Asset Management
segment, the Company's continuing operation. The accounts receivable balance for
the Wireless Asset Management segment at September 30, 2009 was $1,449,900
compared to $1,484,600 at June 30, 2009, a decrease of $34,700, or 2.3%. Days'
sales in receivables for the Wireless Asset Management increased to forty-four
from forty days' sales in receivables reported at June 30, 2009.
Cash provided by financing activities for the three months ended
September 30, 2009 amounted to $512,400, a decrease of $871,000, or 63%,
compared to the $1,383,400 provided by financing activities for the three months
ended September 30, 2008. The decrease in financing activity was primarily due
to a $2 million proceeds from the sale of equity instruments during the previous
quarter ended September 30, 2008.
On July 18, 2003, Arraid Property L.L.C., an Arizona Limited Liability
Company ("Arraid LLC"), filed a complaint in the Arizona Superior Court in and
for Maricopa County, Arizona (case number CV 2003-13999) against the Company and
its wholly owned subsidiary, Arraid, Inc., alleging breach of lease and seeking
substantial monetary damages in excess of $3 million. The suit relates to an
expired lease agreement for property previously leased by Arraid. Following a
trial, the Court found in favor of Arraid LLC against the Company with respect
to certain factual findings resulting in damages owed by the Company in an
amount of approximately $35,000, less than one percent of the amount sought by
the plaintiff. The court determined that the plaintiff was the prevailing party,
and awarded the plaintiff approximately $95,000 in attorney's fees and costs.
The Company appealed the decision to the Arizona Court of Appeals. The Court of
Appeals vacated the award of attorney's fees against the Company as well as some
of the damages awarded to the plaintiff, awarded the Company $60,000 in appeal
legal fees and in excess of $10,000 in appeal costs, and returned the case to
the trial court to determine the final judgment and to award the successful
party its legal fees. The matter has been heard in the Superior Court and the
Company anticipates final resolution of the matter in the near future.
Read the The complete ReportALAN is in the portfolios of Robert Bruce of Bruce & Co., Inc..
