$BBOX,,I can understand the huge cliff caused by the company. Not a good Earnings picture at all. Hopefully the cost of Centralizing the Supply Chain can be mostly blamed on the Net Loss and Operating Net Loss,,,What say you COO? However, this would not explain the $27,000,000 loss in revenues from the same period the year before. Did the revenues creep down slowly during the quarter, or did revenues drop off quickly due to some new widget coming out from a competitor? I will try to find that out. Anyway, below is the summary of the 1st quarter results.
Black Box Corporation Reports First Quarter of Fiscal 2018 Results and Amendment to Senior Secured Credit Agreement
PITTSBURGH, Aug. 10, 2017 (GLOBE NEWSWIRE) -- 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 2018. Items marked with an asterisk are non-GAAP financial measures.
1Q18 Results
Revenues were $191.6 million, down 12% from $218.5 million for the same period last year and down 8% from $208.1 million in the sequential period.
Benefit from income taxes was $4.5 million, compared to a provision for income taxes of $2.3 million for the same period last year and compared to a provision for income taxes of $0.6 million in the sequential period.
Net loss was $9.7 million, compared to $0.5 million for the same period last year and $1.8 million in the sequential period.
Diluted loss per share was $0.65, compared to $0.03 for the same period last year and $0.12 in the sequential period.
Operating net loss* was $5.0 million, compared to operating net income* of $2.0 million for the same period last year and compared to operating net income* of $1.1 million in the sequential period.
Operating EPS* was $(0.33), compared to $0.13 for the same period last year and $0.07 in the sequential period.
Cash flow used for operations was $16.3 million, compared to cash flow provided by operations of $10.9 million for the same period last year and compared to cash flow provided by operations of $15.2 million in the sequential period.
We agreed with our bank group to an amendment to the Company's credit agreement intended to provide additional operating flexibility for the Company to manage through the transformational changes we are implementing.
* See the information under the caption "Non-GAAP Financial Measures" below for a discussion regarding the usefulness of the non-GAAP financial measures contained in this release, definitions of those non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures.
CEO Comment
E.C. Sykes, President and CEO of Black Box said, "First quarter results are disappointing and were impacted by the following: disruptions, now largely resolved, resulting from our centralization, to create efficiencies, of the supply chain and back office functions from 13 European countries into a single site; a delay of the implementation phase of our ERP project which required those costs to be expensed in the period rather than deferred; and lower revenues in our Commercial Services business due to less product shipments and less short duration projects."
Credit Agreement Amendment
As discussed in the Form 8-K to which this press release is furnished, the Company executed an amendment to its credit agreement that, among other items, allows for a reduction of the facility from $200 million to $170 million, which includes a $50 million term loan with an amortization feature that will require payments of $1.25 million for the first four quarters and then $2.5 million per quarter thereafter; the elimination of the leverage ratio through the first quarter of Fiscal 2019; the creation of a Minimum EBITDA (as defined) covenant which gradually increases through the first quarter of Fiscal 2019, after which, it is eliminated; the creation of a Fixed Charge Coverage Ratio in the second quarter of Fiscal 2019 of 1.0 to 1.0 for the second and third quarters of Fiscal 2019 and then steps up to 1.10 to 1.0 thereafter; and a quarterly capital expenditure limitation beginning in the second quarter of Fiscal 2018 through the first quarter of Fiscal 2019. Additionally, the ability of the Company to declare or pay dividends or other distributions (including stock repurchases other than up to a limited dollar amount for tax payments from vested equity awards) has been eliminated.
The foregoing description of the amendment to credit agreement is qualified in its entirety by the disclosure and documents in the Form 8-K.
Black Box Corporation Reports First Quarter of Fiscal 2018 Results and Amendment to Senior Secured Credit Agreement
PITTSBURGH, Aug. 10, 2017 (GLOBE NEWSWIRE) -- 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 2018. Items marked with an asterisk are non-GAAP financial measures.
1Q18 Results
Revenues were $191.6 million, down 12% from $218.5 million for the same period last year and down 8% from $208.1 million in the sequential period.
Benefit from income taxes was $4.5 million, compared to a provision for income taxes of $2.3 million for the same period last year and compared to a provision for income taxes of $0.6 million in the sequential period.
Net loss was $9.7 million, compared to $0.5 million for the same period last year and $1.8 million in the sequential period.
Diluted loss per share was $0.65, compared to $0.03 for the same period last year and $0.12 in the sequential period.
Operating net loss* was $5.0 million, compared to operating net income* of $2.0 million for the same period last year and compared to operating net income* of $1.1 million in the sequential period.
Operating EPS* was $(0.33), compared to $0.13 for the same period last year and $0.07 in the sequential period.
Cash flow used for operations was $16.3 million, compared to cash flow provided by operations of $10.9 million for the same period last year and compared to cash flow provided by operations of $15.2 million in the sequential period.
We agreed with our bank group to an amendment to the Company's credit agreement intended to provide additional operating flexibility for the Company to manage through the transformational changes we are implementing.
* See the information under the caption "Non-GAAP Financial Measures" below for a discussion regarding the usefulness of the non-GAAP financial measures contained in this release, definitions of those non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures.
CEO Comment
E.C. Sykes, President and CEO of Black Box said, "First quarter results are disappointing and were impacted by the following: disruptions, now largely resolved, resulting from our centralization, to create efficiencies, of the supply chain and back office functions from 13 European countries into a single site; a delay of the implementation phase of our ERP project which required those costs to be expensed in the period rather than deferred; and lower revenues in our Commercial Services business due to less product shipments and less short duration projects."
Credit Agreement Amendment
As discussed in the Form 8-K to which this press release is furnished, the Company executed an amendment to its credit agreement that, among other items, allows for a reduction of the facility from $200 million to $170 million, which includes a $50 million term loan with an amortization feature that will require payments of $1.25 million for the first four quarters and then $2.5 million per quarter thereafter; the elimination of the leverage ratio through the first quarter of Fiscal 2019; the creation of a Minimum EBITDA (as defined) covenant which gradually increases through the first quarter of Fiscal 2019, after which, it is eliminated; the creation of a Fixed Charge Coverage Ratio in the second quarter of Fiscal 2019 of 1.0 to 1.0 for the second and third quarters of Fiscal 2019 and then steps up to 1.10 to 1.0 thereafter; and a quarterly capital expenditure limitation beginning in the second quarter of Fiscal 2018 through the first quarter of Fiscal 2019. Additionally, the ability of the Company to declare or pay dividends or other distributions (including stock repurchases other than up to a limited dollar amount for tax payments from vested equity awards) has been eliminated.
The foregoing description of the amendment to credit agreement is qualified in its entirety by the disclosure and documents in the Form 8-K.
'Everything works out in the end,,,If it hasn't worked out,,it's not the end'
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