American Locker Group Reports First Quarter 2013 Results

American Locker Group Reports First Quarter 2013 Results

DFW AIRPORT, Texas--(BUSINESS WIRE)-- American Locker Group Incorporated (OTCQB: ALGI), a recognized leader in secure storage solutions, today reported its first quarter results for the period ended March 31, 2013. The Company reported first quarter net sales of approximately $3.2 million and net loss of approximately $1.0 million, or $(0.60) per share.

  First Quarter 2013 Results
Q1 2013  Q1 2012  Vs. Q1 2012
Net sales$3.15 million$3.27 million(3.4)%
Net loss$(1.01 million)$(85,218)
Adjusted EBITDA$(345,565)$67,636
Earnings per share$(0.60)$(0.05)

Net sales decreased approximately $113,000, or 3.4%, from $3.27 million to $3.15 million. The decrease in revenue was primarily driven by decreased locker sales partially offset by increased mailbox sales. Contract manufacturing sales and concession revenues remained relatively flat as compared to the first quarter of the prior year.

The Company reported a net loss of approximately $1.01 million in the first quarter of 2013. Contributing to the increased net loss were one-time, nonrecurring legal settlement expenses of approximately $442,000 and legal fees incurred related to the litigation and the settlements, which were approximately $120,000 higher than in the first quarter of 2012. Also contributing to the increased loss in the first quarter of 2013 were lower gross profits resulting from the fulfillment of two large sales orders at competitive, lower-margin pricing.

"The new executive team of American Locker Group has worked very aggressively in the last 45 days to identify and remedy all outstanding managerial, operational and legal issues that have impeded the Company's progress and profitable growth," said Anthony Johnston, Chairman and CEO of the Company. "Although our first quarter results were negatively impacted by these issues, I am extremely pleased with the progress made to date, and I would like to personally thank our financial, customer and supplier partners for their tremendous support as we work through this transition."

Use of Non-GAAP Financial Measure: Adjusted EBITDA

To provide investors with additional information regarding the Company's financial results, this press release presents Adjusted EBITDA, a non-GAAP financial measure. The Company has provided below a reconciliation of net loss to adjusted EBITDA, the most directly comparable GAAP financial measure.

Adjusted EBITDA is a key metric used by the Company's management to monitor and evaluate the performance of the business and believes the presentation of this measure will enhance investors' ability to analyze trends in the Company's business, evaluate the Company's performance relative to other companies, and evaluate the Company's ability to service debt.

Adjusted EBITDA is not a presentation made in accordance with GAAP and the Company's computation of Adjusted EBITDA may vary from other companies' computation. Adjusted EBITDA should not be considered as an alternative to operating earnings or net income as a measure of operating performance. In addition, Adjusted EBITDA is not presented as, and should not be considered as, an alternative to cash flows as a measure of liquidity. Adjusted EBITDA has important limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP.

Because of these limitations, Adjusted EBITDA should be considered alongside other financial performance measures, including various cash flow metrics, net loss and the Company's other GAAP results.

Reconciliation of Adjusted EBITDA Calculation for the three-month period ended March 31:

  Three Months Ended March 31,
2013  2012
Net Loss$(1,013,630)$(85,218)
Income tax expense (benefit)3,940(63,163)
Interest expense26,72328,760
Depreciation and amortization expense195,819181,757
Legal settlements441,583-
Equity based compensation -  5,500 
Adjusted EBITDA$(345,565)$67,636

Forward-Looking Statements

In the interest of providing Company stockholders and potential investors with information regarding the Company, including the Company's assessment of its future plans and operations, certain statements included in this press release may constitute forward-looking information or forward-looking statements (collectively, "forward-looking statements"). All statements contained herein that are not clearly historical in nature are forward-looking, and the words "anticipate," "believe," "expect," "estimate" and similar expressions are generally intended to identify forward-looking statements. Actual events or results may differ materially. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company and the foregoing list of important factors is not exhaustive. These forward-looking statements made as of the date hereof disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Company stockholders and potential investors should carefully consider the information contained in the Company's filings with United States securities administrators at before making investment decisions with regard to the Company.

About American Locker Group Incorporated

American Locker is a premier metal fabricator of secure storage solutions under the American Locker and Canadian Locker brands. The Company is best known for manufacturing and servicing the widely-utilized key and lock system with the iconic plastic orange cap. The Company also has a growing precision sheet metal fabrication business. Its Security Manufacturing Corporation subsidiary is a leading provider of multi-tenant mailboxes.

Further information about American Locker and its subsidiaries is available at:

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American Locker Group Incorporated
Stephen P. Slay, 817-329-1600
Chief Financial Officer

KEYWORDS:   United States  North America  Texas


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