DRI Corporation (fka TBUSQ)

[10 bagger]

TBUS.. $1.94

DRI Corporation Posts Fiscal Year 2009 Results

Business Wire - Apr 15 at 19:00

Company Symbols: NASDAQ-SMALL:TBUS


-- Diluted Earnings Per Share at 13 Cents vs. Prior Year 10 Cents
-- Revenues Up Approximately 17 Percent Over Prior Year
-- Positive Trends Indicated for Fiscal Year 2010
-- Conference Call Slated April 19, 2010, at 11 a.m. (Eastern)


DALLAS--(BUSINESS WIRE)-- DRI Corporation (NASDAQ: TBUS), a digital communications technology leader in the global surface transportation and transit security markets, announced today that it posted net sales of $82.3 million for its fiscal year ended Dec. 31, 2009 - an increase of approximately 17 percent over its fiscal year 2008 net sales of $70.6 million.

David L. Turney, the Company's Chairman and Chief Executive Officer, said: "The Company's fiscal year 2009 had a positive outcome despite delays in orders in fourth quarter 2009. Thanks in substantial part to our expanding international market position and the acquisition of our Mobitec Brazil Ltda subsidiary in Caxias do Sul, Brazil, our earnings grew to 13 cents per diluted share as compared to 10 cents per diluted share for fiscal year 2008. We are positioned to achieve significant improvements in fiscal year 2010, even while navigating the difficult slowdown in the global economic environment."

On April 15, 2010, the Company filed with the U.S. Securities and Exchange Commission (SEC) its Annual Report on Form 10-K for the period ended Dec. 31, 2009.

FOURTH QUARTER 2009 RESULTS

For the quarter ended Dec. 31, 2009, revenues were $26.0 million and the net profit applicable to common shareholders was $743 thousand, or 6 cents per diluted share. This compares to revenues of $15.6 million and a net loss applicable to common shareholders of $501 thousand, or 4 cents per diluted share, for the same period last year.

Basic and diluted weighted-average shares outstanding for fourth quarter 2009 were 11.7 million and 13.6 million, respectively, as compared to 11.5 million and 11.5 million, respectively, for the same period in fiscal year 2008.

FISCAL YEAR 2009 RESULTS

For the fiscal year ended Dec. 31, 2009, revenues were $82.3 million, as compared to revenues of $70.6 million for the same period a year ago. The full year net income applicable to common shareholders was $1.5 million, or 13 cents per basic and diluted share. This compares to a net profit of $1.2 million, or 11 cents per basic share and 10 cents per diluted share, for the same period a year ago.

Basic and diluted weighted-average shares outstanding for the fiscal year ended Dec. 31, 2009, were 11.5 million and 11.7 million, respectively, as compared to 11.3 million and 11.5 million, respectively, for the same period a year ago.

Mr. Turney said: "In November 2009, we said that we expected fiscal year 2009 revenues to approximate $82 million, based on currency exchange rates currently in effect; we posted $82.3 million in revenues for the year. We also made some progress in earnings coming in somewhat above the revised guidance of November 2009. Looking back over the last year and taking into consideration the plans we set in motion several years ago, I continue to believe that we've made the right decisions in emphasizing international business growth, as well as global margin improvements and cost reductions. Today, our international business has grown to approximately 59 percent of our total corporate revenues. Along the way, as we have grown internationally, we've encountered wide swings in currency exchange rates and, at times, stress related to our earnings and working capital. Despite such, our continuing year-over-year earnings improvements reflect success in our ongoing efforts to further increase shareholder value."

ORDER FLOW

Mr. Turney said: "We are fortunate to be in the global surface transportation market. Simply stated, people need mobility in both good times and bad times. The global economic slowdown's impact on our domestic and international served markets, as previously reported, has been confined to certain specific market sectors as opposed to being across all or even most served market sectors. Long-term market drivers for the global transit industry include traffic gridlock, environmental issues, quality of life, mobility, economic issues, and the need to provide safe and secure transportation systems - points of worldwide concern that tend to be with us everywhere each day of the year.

"In the domestic market, we presently have some concern about the latter part of fiscal year 2010 and first half of fiscal year 2011. The U.S. transit market may ultimately be impacted by the inability of the U.S. Congress and the Obama administration to pass replacement legislation for the now expired Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) legislation. Although SAFETEA-LU has been extended to Dec. 31, 2010, the uncertainty over the lack of passage of new, long-term (six-year) legislation potentially may have a slight impact on the Company after second quarter 2010. We are focused on offsetting this, if it materializes, through international market opportunities.

"In fiscal year 2009, the Company's international operations witnessed some significant customer procurement plan revisions, including rescheduling of delivery dates and some scale-back that we believe, in the rescheduling context, may have been partially related to the economic slowdown in certain specific international market sectors. However, those specific instances of possible economic-related slowdown have since recovered. To a large extent, the delays and related revenue-reduction pressure, which tended to impact higher margin business, was replaced by revenues in lower margin international market sectors where growth accelerated. Overall, our international business continued to grow in revenue and profits in fiscal year 2009; our forecast indicates it will likely do the same in fiscal year 2010, although we are not yet totally certain as to exactly when the full extent of the orders delayed from last year will fully roll out this year."

BACKLOG

"The Company's backlog was $26.3 million at Dec. 31, 2009, as compared to $9.9 million at Dec. 31, 2008. The difference here can primarily be attributed to growth in the international market," Mr. Turney said.

OUTLOOK

Mr. Turney said: "In November 2009, when we announced our third quarter results, we said that we would further study our preliminary fiscal year 2010 earnings outlook and comment when filing our fiscal year 2009 results. Based on current exchange rates, we continue to expect that fiscal year 2010 revenue will approximate $100 million, which represents growth of more than 20 percent over fiscal year 2009. Even while taking into consideration the domestic market's possible federal legislation-induced slowdown during the last half of the year - and the unfolding effect of our rapid acceleration in high-growth market sectors - we believe that we should now express our earnings outlook in the range of 22 cents to 26 cents. As the year progresses, we will fine-tune that range.

"Further, we expect revenues for first quarter 2010 to exceed the revenues of first quarter 2009. We also expect to see bottom-line results similar or favorable to first quarter 2009 results. This is due, in part, to the accelerated growth of lower-margin business filling in for higher-margin business in first quarter 2010. However, we do expect to see more recovery of higher-margin business in subsequent quarters as fiscal year 2010 unfolds.

"Additionally, our revenue run rate projections for the end of fiscal year 2012 remain at approximately $140 million, based on current exchange rates; this represents a 69 percent increase over actual fiscal year 2009 revenues and a 40 percent increase over projected fiscal year 2010 revenues. As demonstrated in recent news releases, we have already taken some organizational steps toward configuring for continued growth. We will be intensely focused in that direction throughout fiscal year 2010."

RECENT NEWS

-- On March 31, 2010, the Company announced that Oliver Wels was appointed
President of DRI Corporation, effective March 25, 2010, as recommended
by Mr. Turney and approved by the Company's Board of Directors. Mr. Wels
assumes full responsibility for the Company's global operations in
anticipation of management's accelerated growth plans. Mr. Turney
continues as the Company's Chairman of the Board and Chief Executive
Officer.
-- On March 30, 2010, the Company announced that Veronica B. Marks was
named Vice President of Corporate Communications and Administration,
effective March 25, 2010. She continues in her role as the Company's
Assistant Secretary.
-- On Dec. 1, 2009, the Company announced that its acquisition of the
remaining 50 percent interest in the Mobitec Brazil Ltda joint venture
had officially been registered with the Brazilian government. The
Company's 100 percent ownership of the Mobitec Brazil Ltda subsidiary
was established July 1, 2009. Acquisition details are available via a
Form 8-K filed July 27, 2009 with the SEC.


CONFERENCE CALL INFORMATION

Management will discuss fourth quarter and fiscal year 2009 results during an investors' conference call on Monday, April 19, 2010, at 11 a.m. (Eastern).

-- To participate in the live conference call, dial one of the following
telephone numbers approximately five minutes prior to the start time:
domestic, [phone]; or international, [phone]. The
confirmation code is "DRI."
-- Telephone replay will be available through May 17, 2010, via the
following telephone numbers: domestic, [phone]; or international,
[phone]. The replay passcode is 61070655.
-- To participate via webcast, go to
http://viavid.net/dce.aspx?sid=00007301. The webcast will be archived
for one year.


MARK YOUR CALENDAR

-- On or about May 17, 2010, the Company plans to file with the SEC a Form
10-Q for the quarter ended March 31, 2010.
-- On or about May 18, 2010, management plans to review first quarter 2010
results during an investors' conference call.
-- The Company's Annual Meeting of Shareholders will take place May 27,
2010, at The Westin Galleria Dallas, 13340 Dallas Parkway, Dallas, Texas
75240. Registration will begin at 8:30 a.m. (Central) and the business
meeting will commence at 9 a.m. (Central). Shareholders of record at the
close of business on April 7, 2010, are entitled to receive notice of,
and to vote at, the Annual Meeting and any adjournment thereof.


ABOUT THE COMPANY

DRI Corporation is a digital communications technology leader in the global surface transportation and transit security markets. Our products include: TwinVision(R) and Mobitec(R) electronic destination sign systems, Talking Bus(R) voice announcement systems, Digital Recorders(R) Internet-based passenger information and automatic vehicle location/monitoring systems, and VacTell(R) video actionable intelligence systems. Our products help increase the mobility, flow, safety, and security of people who rely upon transportation infrastructure around the globe. Using proprietary hardware and software applications, our products provide easy-to-understand, real-time information that assists users and operators of transit bus and rail vehicles in locating, identifying, boarding, tracking, scheduling, and managing those vehicles. Our products also aid transit vehicle operators in their quest to increase ridership and reduce fuel consumption, as well as to identify and mitigate security risks on transit vehicles. Positioned not only to serve and address mobility, energy conservation, and environmental concerns, our products also serve the growing U.S. Homeland Security market. For more information about the Company and its operations worldwide, go to www.digrec.com.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, statements concerning the timing or amount of future revenues, expectations of profitability, expected business and revenue growth trends, future annualized revenue run rates, anticipated increases in shareholder value, and expectations regarding the Company's ongoing business plan, expectations for transit industry support for the Company; as well as any statement, express or implied, concerning future events or expectations or which use words such as "suggest," "expect," "fully expect," "expected," "appears," "believe," "plan," "anticipate," "would," "goal," "potential," "potentially," "range," "pursuit," "run rate," "stronger," "preliminarily," "guidance," "may," etc., is a forward-looking statement. These forward-looking statements are subject to risks and uncertainties, including risks and uncertainties that the forecasted timing or amount of future revenues, that our expectations as to future business and revenue growth trends, future annualized run rates, increases in shareholder value, and expectations regarding the Company's ongoing business plan may not prove accurate over time, or that the transit industry does not provide the expected support we anticipate, as well as other risks and uncertainties set forth in our Annual Report on Form 10-K filed March 31, 2010, particularly those identified in Risk Factors Affecting Our Business. There can be no assurance that any expectation, express or implied, in a forward-looking statement will prove correct or that the contemplated event or result will occur as anticipated.


DRI CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except shares and per share amounts)

December 31,

2009 2008

ASSETS

Current Assets

Cash and cash equivalents $ 1,800 $ 598

Trade accounts receivable, net 18,192 12,403

Current portion of note receivable 86 86

Stock subscription receivable 670 -

Other receivables 1,645 431

Inventories, net 13,042 10,662

Prepaids and other current assets 1,844 427

Deferred tax assets, net 250 94

Total current assets 37,529 24,701

Property and equipment, net 5,266 3,607

Long-term portion of note receivable 86 172

Goodwill 9,793 9,034

Intangible assets, net 728 790

Other assets 890 1,157

Total assets $ 54,292 $ 39,461

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Lines of credit $ 7,200 $ 3,743

Loans payable 463 719

Current portion of long-term debt 960 193

Current portion of foreign tax settlement 561 386

Accounts payable 10,099 5,347

Accrued expenses and other current liabilities 6,459 4,359

Preferred stock dividends payable 20 16

Total current liabilities 25,762 14,763

Long-term debt and capital leases, net 6,572 5,149

Foreign tax settlement, long-term 294 528

Deferred tax liabilities, net 338 137

Liability for uncertain tax positions 380 300

Commitments and contingencies

Shareholders' Equity

Series K Redeemable, Convertible Preferred Stock, $.10
par value,

liquidation preference of $5,000 per share; 325 shares

authorized; 299 and 0 shares issued and outstanding at

December 31, 2009, and December 31, 2008,
respectively;

redeemable at the discretion of the Company at any 1,341 -
time.

Series E Redeemable, Nonvoting, Convertible Preferred
Stock, $.10 par value,

liquidation preference of $5,000 per share; 500 shares
authorized; 80

shares issued and outstanding at December 31, 2009,
and December 31,

2008; redeemable at the discretion of the Company at 337 337
any time.

Series G Redeemable, Convertible Preferred Stock, $.10
par value,

liquidation preference of $5,000 per share; 600 shares
authorized; 480

and 444 shares issued and outstanding at December 31,
2009, and December

31, 2008, respectively; redeemable at the discretion
of the Company

after five years from date of issuance. 2,118 1,938

Series H Redeemable, Convertible Preferred Stock, $.10
par value,

liquidation preference of $5,000 per share; 600 shares
authorized; 69 and

64 shares issued and outstanding at December 31, 2009,
and December 31,

2008, respectively; redeemable at the discretion of
the Company after

five years from date of issuance. 297 272

Series J Redeemable, Convertible Preferred Stock, $.10
par value,

liquidation preference of $5,000 per share; 250 shares
authorized; 0 and

90 shares issued and outstanding at December 31, 2009,
and December 31,

2008, respectively; redeemable at the discretion of
the Company at any

time. - 388

Series AAA Redeemable, Nonvoting, Convertible
Preferred Stock, $.10 par value,

liquidation preference of $5,000 per share; 20,000
shares authorized; 166

shares issued and outstanding at December 31, 2009,
and December 31, 2008;

redeemable at the discretion of the Company at any 830 830
time.

Common stock, $.10 par value, 25,000,000 shares
authorized; 11,746,327 and

11,466,606 shares issued and outstanding at December
31, 2009 and December

31, 2008, respectively. 1,175 1,147

Additional paid-in capital 30,393 32,706

Accumulated other comprehensive income - foreign 1,976 512
currency translation

Accumulated deficit (18,276 ) (20,398 )

Total DRI shareholders' equity 20,191 17,732

Noncontrolling interests

Noncontrolling interests - Mobitec Brazil Ltda. - 596

Noncontrolling interests - Castmaster Mobitec India 755 256
Private Limited

Total noncontrolling interests 755 852

Total shareholders' equity 20,946 18,584

Total liabilities and shareholders' equity $ 54,292 $ 39,461






DRI CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

Year Ended December 31,

2009 2008 2007

Net sales $ 82,285 $ 70,559 $ 57,932

Cost of sales 57,489 46,671 39,311

Gross profit 24,796 23,888 18,621

Operating expenses

Selling, general and 20,402 19,000 15,216
administrative

Research and development 552 974 1,149

Total operating expenses 20,954 19,974 16,365

Operating income 3,842 3,914 2,256

Other income (loss) (101 ) 188 103

Foreign currency gain 531 558 210

Interest expense (1,460 ) (1,433 ) (1,197 )

Total other income and expense (1,030 ) (687 ) (884 )

Income from continuing
operations before income tax 2,812 3,227 1,372
expense

Income tax expense (836 ) (1,096 ) (291 )

Income from continuing 1,976 2,131 1,081
operations, net of tax

Loss from discontinued - - (219 )
operations

Net income 1,976 2,131 862

Less: Net income attributable to
noncontrolling interests, net of (146) (635 ) (188 )
tax

Net income attributable to DRI 1,830 1,496 674
Corporation

Provision for preferred stock (319 ) (303 ) (294 )
dividends

Net income applicable to common $ 1,511 $ 1,193 $ 380
shareholders of DRI Corporation

Net income (loss) per share -
basic

Continuing operations $ 0.13 $ 0.11 $ 0.06

Discontinued operations $ 0.00 $ 0.00 $ (0.02 )

Income per share applicable to $ 0.13 $ 0.11 $ 0.04
common shareholders

Net income (loss) per share -
diluted

Continuing operations $ 0.13 $ 0.10 $ 0.05

Discontinued operations $ 0.00 $ 0.00 $ (0.02 )

Income per share applicable to $ 0.13 $ 0.10 $ 0.03
common shareholders

Weighted average number of
common shares and common

share equivalent outstanding

Basic 11,548,403 11,333,984 10,751,220

Diluted 11,715,807 11,492,473 11,146,107







Source: DRI Corporation


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