National Patent Development Corporation Reports First Quarter Operating Results
May 15, 2009 9:59:00 AM
Copyright Business Wire 2009
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View Additional ProfilesNEW YORK--(BUSINESS WIRE)-- National Patent Development Corporation (OTC Bulletin Board: NPDV.OB) today reported a net loss of $(716,000), or $(0.04) per basic and diluted share, for the three months ended March 31, 2009, compared to a net loss of $(1,377,000) or $(0.08) per basic share, for the three months ended March 31, 2008.
The results for the three months ended March 31, 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. The Company's operating loss excluding the above item was $(395,000) and $(208,000) for the three months ended March 31, 2009 and 2008, respectively.
The increase in adjusted operating loss was primarily attributable to the decline in operating profits of Five Star, National Patent's wholly owned subsidiary, during 2009 due to the overall weakness in the economy and its marketplace. The results were positively affected by tight cost controls at Five Star, and a significant reduction of overhead at the corporate level.
About National Patent Development Corporation
National Patent Development Corporation (OTC Bulletin Board: NPDV.OB), 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.
NATIONAL PATENT DEVELOPMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(Unaudited)
(in thousands, except per share data)
Three Months Ended
March 31,
2009 2008
Sales $ 25,130 $ 31,469
Cost of sales 21,140 26,293
Gross margin 3,990 5,176
Selling, general and administrative expenses (4,385 ) (5,384 )
Charge related to resignation of Chairman of Five Star (1,096 )
Operating loss (395 ) (1,304 )
Interest expense (330 ) (302 )
Investment and other income, net 13 94
Loss from continuing operations before income taxes (712 ) (1,512 )
Income tax expense (4 ) (14 )
Loss from continuing operations (716 ) (1,526 )
Income from discontinued operations 136
Consolidated net loss (716 ) (1,390 )
Less: Net loss attributable to noncontrolling interest 13
Net loss attributable to National Patent Development $ (716 ) $ (1,377 )
Corporation
Basic and diluted income / (loss) per share
attributable to National Patent Development
Corporation:
Continuing operations $ (0.04 ) $ (0.09 )
Discontinued operations 0.01
Net loss $ (0.04 ) $ (0.08 )
NATIONAL PATENT DEVELOPMENT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS DATA
(in thousands)
March 31, December 31,
2009 2008
(unaudited)
Assets
Current assets
Cash and cash equivalents $ 12,612 $ 13,089
Accounts and other receivables, less allowance for 15,278 9,814
doubtful accounts of $383 and $420
Inventories (finished goods) 24,740 23,045
Deferred tax asset 121 132
Prepaid expenses and other current assets 1,315 1,334
Total current assets 54,066 47,414
Property, plant and equipment, net 826 912
Intangible assets, net 567 599
Deferred tax asset 1,541 1,537
Other assets 3,209 3,209
Total assets $ 60,209 $ 53,671
Liabilities and stockholders' equity
Current liabilities
Short term borrowings $ 19,770 $ 18,375
Accounts payable and accrued expenses 13,861 8,236
Total current liabilities 33,631 26,611
Liability related to interest rate swap 1,104 1,111
Stockholders' equity
Common stock 181 181
Additional paid-in capital 28,879 28,642
Deficit (1,565 ) (849 )
Treasury stock, at cost (1,358 ) (1,358 )
Accumulated other comprehensive loss (663 ) (667 )
Total stockholders' equity 25,474 25,949
Total liabilities and stockholders' equity $ 60,209 $ 53,671
Source: National Patent Development Corporation
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National Patent Development Corporation
John Belknap
973-428-4600 (x167)
AI
