Black Box Corporation today reported results for the first quarter of Fiscal 2019.
PITTSBURGH, PENNSYLVANIA, August 20, 2018 -
Black Box Corporation (NASDAQ:BBOX), a leading digital solutions provider dedicated to helping customers design, build, manage and secure their IT infrastructure, today reported results for the first quarter of Fiscal 2019.
First Quarter Results
- Revenues declined by $0.8 million or 0.4% to $190.8 million compared to the same period last year, while the revenue decline from the prior quarter was $3.2 million or 1.6%.
- Gross profit margin was 28.2%, up 80 basis points from 27.4% for the same period last year. This increase was primarily due to margin improvements in North America Services, including both of our commercial and federal businesses, partially offset by margin deterioration in International Services. The gross profit margin in the prior quarter was 27.3%.
- Selling, general and administrative expenses were $56.8 million, down 10.2% from $63.3 million for the same period last year and down 3.3% from $58.8 million in the prior quarter. The decrease from the comparable prior year period was primarily due to reductions of $4.1 million in restructuring expense, $2.3 million in compensation and benefits expense, $1.9 million in ERP implementation expense and $1.2 million in stock compensation expense, partially offset by an increase of $3.0 million in strategic consulting expense.
- Interest expense was $2.6 million, compared to $1.2 million in the prior year. The $1.4 million increase was due to higher rates and higher average borrowings.
- Loss before income taxes was $7.5 million, compared to a loss before income taxes of $14.2 million for the same period last year and compared to a loss before income taxes of $19.3 million in the prior quarter.
- Benefit from income taxes was $0.2 million, compared to a benefit from income taxes of $4.5 million for the same period last year and compared to a provision for income taxes of $31.7 million in the prior quarter. The variance from the statutory rate in the current quarter was principally due to valuation allowances booked against U.S. deferred tax assets.
- Net loss was $7.3 million, compared to a net loss of $9.7 million for the same period last year and compared to a net loss of $51.0 million in the prior quarter.
• Diluted loss per share was $0.48, compared to a diluted loss per share of $0.65 for the same period last year and compared to a diluted loss per share of $3.37 in the prior quarter.
- Cash flow used for operating activities was $2.3 million, compared to cash flow used for operating activities of $16.3 million for the same period last year and compared to cash flow used for operating activities of $3.5 million in the prior quarter. The variance compared to the prior quarter was principally due to lower selling, general and administrative expenses and improved working capital management.
"I am satisfied with the quarterly results as we continue to make progress on positioning the company for future profitable growth," stated Joel Trammell, President and CEO.
Federal Business Sale
On August 17, 2018, the Company executed a definitive agreement to sell its Federal IT services business to a private equity firm for $75.0 million. The transaction is expected to close by August 31, 2018. Please see the Company’s Form 8-K for further details regarding the transaction.
Earnings Conference Call
The Company will conduct a conference call beginning at 9:00 a.m. Eastern Time today, August 20, 2018. Joel Trammell, President and Chief Executive Officer, will host the call. To listen only to the live webcast, access the event at http://investor.blackbox.com/events.cfm. To participate in the teleconference, dial 877-303-3145 (USA) or 253-237-1194 (International) approximately 15 minutes prior to the starting time and ask to be connected to conference 3779195. A replay of the audio webcast will be available at http://investor.blackbox.com/events.cfm for a limited period of time.
About Black Box
Black Box is a leading digital solutions provider dedicated to helping customers design, build, manage and secure their IT infrastructure. Black Box delivers high-value products and services through its global presence and 3,228 team members. To learn more, visit the Black Box Web site at http://www.blackbox.com.
Black Box® and the Double Diamond logo are registered trademarks of BB Technologies, Inc.
For more details, view the official investor press release.
For Investor Relations Inquiries:
Black Box Corporation
David J. Russo
Senior Vice President and Chief Financial Officer
Phone: (724) 873-6788
Any forward-looking statements contained in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this release. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Although it is not possible to predict or identify all risk factors, they may include, among others, liquidity, compliance with bank covenants, our going concern qualification, the Company's arrangements with its vendors and subcontractors, levels of business activity and operating expenses, expenses relating to compliance requirements, cash flows, global economic and business conditions, the timing and costs of restructuring programs and other initiatives, such as our enterprise resource planning system initiatives, successful marketing of the Company's product and services offerings, successful implementation of the Company's integration initiatives and successful implementation of the Company's government contracting programs, as well as competition, changes in foreign, political and economic conditions, fluctuating foreign currencies compared to the U.S. dollar, rapid changes in technologies, client preferences, government budgetary constraints and various other matters, many of which are beyond the Company's control. Additional risk factors are included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2018. We can give no assurance that any goal, plan or target set forth in forward-looking statements will be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments and caution you not to unduly rely on any such forward-looking statements.