Autoscope Technologies Corporation Announces Financial Results Dividend Declaration
Autoscope Technologies Corporation (AATC) reported its Q2 2022 results, revealing a revenue decline to $2.8 million from $3.8 million year-over-year, driven by a decrease in royalties from $2.5 million to $1.4 million. The company declared a quarterly dividend of $0.12 per share, payable on August 31, 2022. Net income for Q2 2022 stands at $74,000, significantly down from $752,000 in Q2 2021. Operating expenses reduced by 10% to $1.9 million. Despite challenges from global supply chain disruptions, product sales showed a 10% increase. As of June 30, 2022, total cash and equivalents were $6.1 million.
- Product sales increased by 10% year-over-year to $1.4 million in Q2 2022.
- Operating expenses decreased by 10% year-over-year to $1.9 million in Q2 2022.
- The company declared a quarterly cash dividend of $0.12 per share.
- Net income decreased by 90% year-over-year to $74,000 in Q2 2022.
- Royalties for Q2 2022 fell to $1.4 million, a decrease of 44% from $2.5 million in Q2 2021.
- Total revenue for H1 2022 decreased by 18% to $5.6 million compared to H1 2021.
MINNEAPOLIS, Aug. 11, 2022 (GLOBE NEWSWIRE) -- Autoscope Technologies Corporation (Nasdaq: AATC) today announced results for its quarter and six months ended June 30, 2022 and its Board of Directors has authorized and declared a quarterly cash dividend of
Second Quarter 2022 Financial Summary
- Second quarter royalties decreased to
$1.4 million compared to$2.5 million in the same period in the prior year due to global supply chain disruptions. - Second quarter product sales were
$1.4 million , an increase of 10 percent from the same period in the prior year due to the continued adoption of Image Sensing Systems, Inc. RTMS Echo product line. - Operating expenses totaled
$1.9 million in the second quarter of 2022, a decrease of 10 percent from the prior year period. - Net income for the second quarter of 2022 totaled
$74,000 , a decrease of$722,000 when compared to a net income of$752,000 for the same period in the prior year.
First Half 2022 Financial Summary
- Royalties for the first half of 2022 decreased to
$3.2 million compared to$4.3 million the same period in the prior year due to global supply chain disruptions. - Product sales for the first half of 2022 were
$2.4 million , a decrease of 4 percent from the same period in the prior year due to labor shortages and project delays. - Operating expenses totaled
$4.0 million in the first half of 2022, an increase of 1 percent from the prior year period. - Capitalized software costs in the first half of 2022 were
$534,000 compared to$178,000 in the prior year period. - The Company recognized other income of
$931,000 for the forgiveness of the Paycheck Protection Program loan during the first half of 2021, and there were no comparable items in the same period in 2022. - Net income for the first half of 2022 totaled
$92,000 compared to net income of$1.9 million for the same period in the prior year. - To generate a greater return on our cash position, the company purchased various securities during the first six months of 2022, totaling
$4.3 million . The Company also paid out$1.3 million to shareholders compared to$644,000 during the first six months of 2021. This resulted in a decreased cash balance of$1.9 million at June 30, 2022, compared to$8.3 million at December 31, 2021. - Cash & cash equivalents and investment in debt and equity securities totaling
$6.1 million as of June 30, 2022, are readily available and will satisfy our projected working capital needs, investing activities, and other cash requirements for at lease one year from June 30, 2022.
Second-Quarter Results:
Second quarter 2022 revenue for Autoscope Technologies Corporation ("AATC," the "Company," "us," "we," or "our"), which includes the results of Image Sensing Systems, Inc., a wholly-owned subsidiary of AATC ("ISS"), was
Gross margin for the second quarter of 2022 was 71 percent, a 10 percent or 7 percentage point decrease from a gross margin of 78 percent for the same period in 2021. Gross margin from royalties decreased to 92 percent in the second quarter of 2022 compared to 96 percent in the second quarter of 2021. The decrease in gross margin from royalties was primarily due to lower sales of Autoscope Vision and higher component costs. Product sales gross margin for the second quarter of 2022 was 50 percent compared to 44 percent in the prior year period. The increase in the gross margin percent was primarily the result of increased total product sales and a significant increase in warranty expense in 2021 with no comparable items in 2022.
The 2022 second quarter net income includes operating expenses of
On a non-GAAP basis, excluding the amortization of intangible assets and depreciation for the applicable periods, operating income for the second quarter of 2022 was
Year-to-Date Results:
AATC’s revenue for the first six months of 2022 was
The first six months of revenue for 2022 included Autoscope video product sales and royalties of
The Company’s net income for the first six months of 2022 was
On a non-GAAP basis, excluding the amortization of intangible assets and depreciation for the applicable periods, operating income for the second quarter of 2022 was
“Our results for the quarter reflect the challenging operating environment that ISS and our partners are facing. Although product order demand remained solid, global supply chain disruptions led to component shortages and reduced royalties. I am pleased with our team's efforts to work with our partners to secure necessary critical components to meet our Autoscope Vision customer's needs. I am also pleased with the rebound of our direct product sales due to expanding market acceptance of our Echo product line,” said Andrew Berger, CEO of Autoscope Technologies Corporation. “For the remainder of the year, ISS gross margins will be lower than in recent years due to continuing supply chain component issues and inflationary pressures that will not be recovered through previously announced price increases. While difficult market conditions are expected to continue in the near term, we remain focused on launching our new video detection product line which will drive growth, continued investment in critical components to ensure stability of our supply chain, and continued cost management,” concluded Mr. Berger.
Non-GAAP Financial Measures:
We provide certain non-GAAP financial information as supplemental information to financial measures calculated and presented in accordance with GAAP (Generally Accepted Accounting Principles in the United States). This non-GAAP information excludes the impact of amortizing intangible assets and depreciation and may exclude other non-recurring items. Management believes that this presentation facilitates the comparison of our current operating results to historical operating results. Management uses this non-GAAP information to evaluate short-term and long-term operating trends in our core operations. Non-GAAP information is not prepared in accordance with GAAP and should not be considered a substitute for or an alternative to GAAP financial measures and may not be computed the same as similarly titled measures used by other companies.
About Autoscope Technologies Corporation
Autoscope Technologies Corporation is a global company dedicated to helping improve safety and efficiency for cities and highways by developing and delivering above-ground detection technology, applications, and solutions. We give Intelligent Transportation Systems (ITS) professionals more precise and accurate information – including real-time reaction capabilities and in-depth analytics – to make more confident and proactive decisions. We are headquartered in Minneapolis, Minnesota. Visit us on the web at imagesensing.com.
Safe Harbor Statement: Statements made in this release concerning the Company’s or management’s intentions, expectations, or predictions about future results or events are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management’s current expectations or beliefs, and are subject to risks and uncertainties that could cause actual results or events to vary from stated expectations, which variations could be material and adverse. Factors that could produce such a variation include, but are not limited to, the following: the inherent unreliability of earnings, revenue and cash flow predictions due to numerous factors, many of which are beyond the Company’s control; developments in the demand for the Company’s products and services; relationships with the Company’s major customers and suppliers; the mix of and margins on the products we sell; unanticipated delays, costs and expenses inherent in the development and marketing of new products and services; adverse weather conditions in our markets; the impact of governmental laws, regulations, and orders, including as a result of the COVID-19 pandemic caused by the coronavirus; international presence; tariffs and other trade barriers; our success in integrating any acquisitions; potential disruptions to our supply chains (including disruptions caused by geopolitical events, military actions, work stoppages, nature disasters, or international health emergencies, such as the COVID-19 pandemic); and competitive factors. Our forward-looking statements speak only as of the time made, and we assume no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the Company’s current expectations are contained in the Company’s reports and other documents filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021 filed on March 22, 2022.
Contact: Frank Hallowell, Chief Financial Officer |
Autoscope Technologies Corporation Phone: 612.438.2363 |
Autoscope Technologies Corporation
Condensed Consolidated Statements of Operations
(in thousands, except per share information)
(unaudited)
Three-Month Periods Ended June 30, | Six-Month Period Ended June 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Revenue | |||||||||||||||
Product sales | $ | 1,432 | $ | 1,305 | $ | 2,366 | $ | 2,468 | |||||||
Royalties | 1,387 | 2,483 | 3,205 | 4,299 | |||||||||||
2,819 | 3,788 | 5,571 | 6,767 | ||||||||||||
Cost of revenue | 824 | 827 | 1,440 | 1,533 | |||||||||||
Gross profit | 1,995 | 2,961 | 4,131 | 5,234 | |||||||||||
Operating expenses | |||||||||||||||
Selling, general and administrative | 1,324 | 1,516 | 3,009 | 2,882 | |||||||||||
Research and development | 526 | 541 | 954 | 1,037 | |||||||||||
1,850 | 2,057 | 3,963 | 3,919 | ||||||||||||
Income from operations | 145 | 904 | 168 | 1,315 | |||||||||||
Investment loss | (30 | ) | - | (25 | ) | - | |||||||||
Interest expense | (18 | ) | - | (36 | ) | - | |||||||||
Other income | 10 | - | 21 | 925 | |||||||||||
Income from operations before income taxes | 107 | 904 | 128 | 2,240 | |||||||||||
Income tax expense | 33 | 152 | 36 | 357 | |||||||||||
Net income | $ | 74 | $ | 752 | $ | 92 | $ | 1,883 | |||||||
Basic net income per share | $ | 0.01 | $ | 0.14 | $ | 0.02 | $ | 0.35 | |||||||
Diluted net income per share | $ | 0.01 | $ | 0.14 | $ | 0.02 | $ | 0.35 | |||||||
Weighted shares - basic | 5,381 | 5,341 | 5,371 | 5,332 | |||||||||||
Weighted shares - diluted | 5,387 | 5,350 | 5,373 | 5,343 | |||||||||||
Autoscope Technologies Corporation
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
June 30, 2022 | December 31, 2021 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 1,933 | $ | 8,229 | |
Receivables, net | 2,762 | 2,369 | |||
Inventories | 1,475 | 1,429 | |||
Short-term investments in available-for-sale debt securities | 425 | - | |||
Investments in equity securities | 247 | - | |||
Due from broker | 481 | - | |||
Prepaid expenses and other current assets | 913 | 355 | |||
8,236 | 12,382 | ||||
Property and equipment, net | 2,176 | 2,237 | |||
Operating lease asset, net | 9 | 58 | |||
Intangible assets, net | 2,996 | 2,866 | |||
Deferred income taxes | 4,811 | 4,824 | |||
Long-term investments in available-for-sale debt securities | 3,011 | - | |||
$ | 21,239 | $ | 22,367 | ||
Liabilities and Shareholders’ Equity | |||||
Current liabilities | |||||
Accounts payable | $ | 479 | $ | 236 | |
Short-term debt | 57 | 56 | |||
Warranty and other current liabilities | 433 | 607 | |||
969 | 899 | ||||
Non-current liabilities | |||||
Long-term debt | 1,645 | 1,674 | |||
1,645 | 1,674 | ||||
Shareholders’ equity | 18,625 | 19,794 | |||
$ | 21,239 | $ | 22,367 |
Autoscope Technologies Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six-Month Periods Ended June 30, | |||||||
2022 | 2021 | ||||||
Operating activities | |||||||
Net income | $ | 92 | $ | 1,883 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 499 | 462 | |||||
Amortization of deferred finance fees | 1 | - | |||||
Stock option expense | 268 | 107 | |||||
Deferred income tax expense | 30 | 348 | |||||
Forgiveness income from PPP Loan | - | (931 | ) | ||||
Loss on disposal of assets | 5 | 1 | |||||
Realized loss of sale of equity investments | 53 | - | |||||
Unrealized gain on equity investments | 3 | - | |||||
Investment loss | 6 | - | |||||
Changes in operating assets and liabilities | (878 | ) | (1,161 | ) | |||
Net cash used for operating activities | 79 | 709 | |||||
Investing activities | |||||||
Capitalized software development costs | (534 | ) | (178 | ) | |||
Purchases of property and equipment | (41 | ) | (8 | ) | |||
Purchase of equity securities | (795 | ) | - | ||||
Sale of equity securities | 10 | - | |||||
Purchase of debt securities | (3,521 | ) | - | ||||
Net cash used for investing activities | (4,881 | ) | (186 | ) | |||
Financing activities | |||||||
Stock for tax withholding | (15 | ) | (35 | ) | |||
Dividends paid | (1,291 | ) | (644 | ) | |||
Proceeds from exercise of stock options | 32 | 8 | |||||
Proceeds from PPP Loan | (29 | ) | - | ||||
Net cash used for financing activities | (1,303 | ) | (671 | ) | |||
Effect of exchange rate changes on cash | (191 | ) | (30 | ) | |||
Decrease in cash and cash equivalents | (6,296 | ) | (178 | ) | |||
Cash and cash equivalents at beginning of period | 8,229 | 8,605 | |||||
Cash and cash equivalents at end of period | $ | 1,933 | $ | 8,427 | |||
Non-Cash investing and financing activities: | |||||||
Sale of equity securities included in due from broker | 481 | - |
Autoscope Technologies Corporation
Non-GAAP Income from Continuing Operations
(in thousands)
(unaudited)
We define non-GAAP income from operations as income from operations before amortization of intangible assets and depreciation for the applicable periods. Management believes non-GAAP income from operations is a useful indicator of our financial performance and our ability to generate cash flows from operations. Our definition of non-GAAP income from operations may not be comparable to similarly titled definitions used by other companies. The table below reconciles non-GAAP income from operations, which is a non-GAAP financial measure, to comparable GAAP financial measures:
Three-Month Periods Ended June 30, | Six-Month Periods Ended June 30, | |||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||
Income from operations | $ | 145 | $ | 904 | $ | 168 | $ | 1,315 | ||||
Amortization of intangible assets | 204 | 195 | 404 | 382 | ||||||||
Depreciation | 46 | 40 | 95 | 80 | ||||||||
Non-GAAP income from operations | $ | 395 | $ | 1,139 | $ | 667 | $ | 1,777 | ||||
Note – Our calculation of non-GAAP income from operations is considered a non-GAAP financial measure and is not in accordance with, or preferable to, “as reported”, or GAAP financial data. However, we are providing this information, as we believe it facilitates analysis of the Company’s financial performance by investors and financial analysts.
FAQ
What were Autoscope Technologies' earnings results for Q2 2022?
What is the revenue for Autoscope Technologies for the first half of 2022?
What impacts did global supply chain disruptions have on Autoscope Technologies?