GlobeNewswire Inc | Nov 16, 2020 04:30PM EST

November 16, 2020

PLYMOUTH, Mich., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Perceptron, Inc. (NASDAQ: PRCP), a leading global provider of 3D automated metrology solutions and coordinate measuring machines, today announced results for the three months ended September 30, 2020.

FISCAL FIRST QUARTER 2021 SUMMARY

-- Net sales of $13.9 million -- Operating Loss $(0.7) million -- Adjusted EBITDA1 of $(0.2) million -- Total bookings of $14.6 million -- Total backlog of $37.0 million -- Cash and cash equivalents of $12.9 million

FINANCIAL RESULTS

For the three months ended September 30, 2020, the Company generated net sales of $13.9 million, versus $17.9 million in the prior-year period. Sales in the Americas, Europe and Asia declined 42%, 3% and 19% on a year-over-year basis, respectively, in the period. Sales of Measurement Solutions, which represented 95% of total sales in the period, declined 19% in the fiscal first quarter, when compared to the prior-year period.

Total gross profit declined 38% on a year-over-year basis, or $2.6 million, to $4.4 million in the fiscal first quarter. Gross profit margin decreased 790 basis points to 32%, versus 40% in the prior-year period, primarily due to the mix of revenue and increased cost of sales.

The Company reported a net loss of $(0.4) million, or $(0.04) per share, in the fiscal first quarter, versus $0.6 million, or $0.06 per share, in the prior-year period.

Adjusted EBITDA was $(0.2) million in the fiscal first quarter of 2021, versus $1.1 million in the prior year period, driven by lower sales.

Total bookings declined 15% on a year-over-year basis to $14.6 million in the fiscal first quarter, with decreased bookings in Europe, and Americas, partially off-set by increased bookings in Asia. Total backlog declined 2% on a year-over-year basis to $37.0 million in the fiscal first quarter, as improved backlog in Asia was more than offset by a decline in the Americas and Europe. Both bookings and backlog were adversely impacted by work stoppages and shelter-in-place orders resulting from the COVID-19 pandemic.

As of September 30, 2020, the Company had cash and cash equivalents globally of $12.9 million, which includes borrowings of $4.8 million. On April 16, 2020, Perceptron entered into an unsecured loan with TCF National Bank as the lender in the aggregate principal amount of $2.5 million pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act. Perceptron intends to apply for forgiveness for this loan under the terms of this program in the second quarter of fiscal 2021.

AGREEMENT AND PLAN MERGER

Perceptron will not hold an earnings call, nor provide forward guidance for the second quarter of fiscal year 2021, due to the previously announced proposed acquisition of Perceptron by Atlas Copco.

[1]See the attached Non-GAAP Financial Measures for a Reconciliation of Net (Loss) Income to Adjusted EBITDA

ABOUT PERCEPTRON

Perceptron (NASDAQ: PRCP) develops, produces and sells a comprehensive range of automated industrial metrology products and solutions to manufacturing organizations for dimensional gauging, dimensional inspection and 3D scanning. Products include 3D machine vision solutions, robot guidance, coordinate measuring machines, laser scanning and advanced analysis software. Global automotive and other manufacturing companies rely on Perceptron's metrology solutions to assist in managing their complex manufacturing processes to improve quality, shorten product launch times and reduce costs. Headquartered in Plymouth, Michigan, Perceptron has subsidiary operations in Brazil, China, Czech Republic, France, Germany, India, Italy, Japan, Slovakia, Spain and the United Kingdom. For more information, please visit www.perceptron.com.

SAFE HARBOR STATEMENT

Certain statements in this press release may be forward-looking statements within the meaning of the Securities Exchange Act of 1934, including our expectations regarding the possible effects of the COVID-19 pandemic on general economic conditions, public health, and global automotive industry, and the Companys results of operations, liquidity, capital resources, and general performance in the future, the potential impact of COVID-19 on our customers generally and their plans for retooling projects in particular, our fiscal year 2021 and future results, operating data, new order bookings, revenue, expenses, net income and backlog levels, trends affecting our future revenue levels, the rate of new orders, and our ability to fund our fiscal year 2020 and future cash flow requirements. We may also make forward-looking statements in our press releases or other public or shareholder communications. Whenever possible, we have identified these forward-looking statements by words such as target, will, should, could, believes, expects, anticipates, estimates, prospects, outlook, guidance or similar expressions. We claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 for all of our forward-looking statements. While we believe that our forward-looking statements are reasonable, you should not place undue reliance on any such forward-looking statements, which speak only as of the date made. Because these forward-looking statements are based on estimates and assumptions that are subject to significant business, economic and competitive uncertainties, many of which are beyond our control or are subject to change, actual results could be materially different. Factors that might cause such a difference include, without limitation, the risks and uncertainties discussed from time to time in our periodic reports filed with the Securities and Exchange Commission, including those listed in Item 1A. Risk Factors of our Annual Report on Form 10-K for our fiscal year 2020. Except as required by applicable law, we do not undertake, and expressly disclaim, any obligation to publicly update or alter our statements whether as a result of new information, events or circumstances occurring after the date of this report or otherwise. The proposed merger is subject to certain conditions precedent, including regulatory approvals and approval of the Companys shareholders. The Company cannot provide any assurance that the proposed merger will be completed, nor can it give assurances as to the terms on which such proposed merger will be consummated.

-- Financial Tables Follow --

PERCEPTRON, INC.SELECTED FINANCIAL DATA(Unaudited, In Thousands Except Per Share Amounts) Condensed Income Statements Three Months Ended September 30, 2020 2019 Net Sales $ 13,933 $ 17,850 Cost of Sales 9,537 10,808 Gross Profit 4,396 7,042 Operating Expenses Selling, General and Administrative 3,769 4,243 Engineering, Research and Development 1,324 1,828 Operating (Loss) Income (697 ) 971 Other Income and (Expenses), net Interest Expense, net (42 ) (24 )Foreign Currency and Other, net 177 (178 )(Loss) Income Before Income Taxes (562 ) 769 Income Tax (Expense) Benefit 155 (143 ) Net (Loss) Income $ (407 ) $ 626 (Loss) Income Per Common Share Basic and Diluted ($ 0.04 ) $ 0.06 Weighted Average Common Shares Outstanding Basic 9,750 9,661 Diluted 9,750 9,664

PERCEPTRON, INC. SELECTED FINANCIAL DATA (Unaudited, In Thousands) Condensed Balance Sheets September30, June30, 2020 2020 Cash and Cash Equivalents $ 12,868 $ 10,621 Short-Term Investments 427 355 Receivables, net 28,893 30,653 Inventories, net 10,280 10,387 Other Current Assets 3,355 1,854 Total Current Assets 55,823 53,870 Property and Equipment, net 5,677 5,750 Goodwill and Other Intangible Assets, net 978 1,100 Right of Use Assets 3,823 3,668 Long-Term Investments 725 725 Long-Term Deferred Income Tax Assets 595 469 Total Non-Current Assets 11,798 11,712 Total Assets $ 67,621 $ 65,582 Lines of Credit and current portion of long-term $ 3,083 $ 2,808 debtAccounts Payable 6,337 6,667 Deferred Revenue 7,294 6,032 Reserves for Severance, Impairment and Other 59 148 ChargesShort-Term Operating Lease Liability 500 475 Other Current Liabilities 5,797 5,257 Total Current Liabilities 23,070 21,387 Long-Term Deferred Income Tax Liability 10 3 Long-Term Operating Lease Liability 3,376 3,245 Long-Term Deferred Revenue 181 214 Long-Term Debt, Less Current Portion 1,701 1,983 Other Long-Term Liabilities 443 449 Total Long-Term Liabilities 5,711 5,894 Total Liabilities 28,781 27,281 Shareholders' Equity 38,840 38,301 Total Liabilities and Shareholders' Equity $ 67,621 $ 65,582

PERCEPTRON, INC.NON-GAAP FINANCIAL MEASURES

While Perceptrons results under Generally Accepted Accounting Principles in the United States of America (U.S. GAAP) provide significant insight into our operations and financial position, Perceptrons management supplements its analysis of the business using Adjusted EBITDA. These are non-GAAP financial measures. Management believes these non-GAAP financial measures, when taken together with the corresponding GAAP measures, provide incremental insight into the underlying factors and trends affecting our performance because it excludes the effects of financing, investment, and other non-operating activities that management believes are not representative of our core business. However, it should be viewed as supplemental data, rather than as a substitute or an alternative to the comparable GAAP measure. The tables below present a reconciliation of the non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP.

PERCEPTRON, INC. RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED EBITDA (Unaudited, In Thousands) Three Months Ended September30, 2020 2019 Net (Loss) Income $ (407 ) $ 626 Interest Expense, net 42 24 Income Tax (Benefit) Expense (155 ) 143 Depreciation and amortization expense 350 336 Adjusted EBITDA $ (170 ) $ 1,129 Fully diluted shares outstanding 9,750 9,661 Adjusted Net (Loss) Income Per Share $ (0.04 ) $ 0.06

Adjusted EBITDA, for the periods presented, represents net (loss) income before interest expense, net; income tax (benefit) expense; and depreciation and amortization expense, severance costs, impairment charges and litigation settlements. Adjusted EBITDA does not represent net income, as that term is defined under GAAP, and should not be considered as an alternative to net income as an indicator of our operating performance. Adjusted EBITDA is not intended to be a measure of free cash flow available for management and discretionary use of such measures do not consider certain cash requirements such as capital expenditures, tax payments and debt service requirements.

Contact:

Investor Relationsinvestors@perceptron.com