Henry Bros. files 2006 earnings, looks to regain AMEX compliance
FAIR LAWN, N.J.--In mid-October, national integrator Henry Bros. Electronics filed its much-delayed annual report for the year ended Dec. 31, 2006, along with quarterly reports for the first two quarters of 2006. The company expects now to regain compliance with the American Stock Exchange, where the public company's stock is listed for trade.
"Our listing is very important to us," said president and chief operating officer Brian Reach, who came into his position earlier this year. "Without it, there would not be a market for our stock to trade. Being a public company gives us an edge from the standpoint of having an alternative currency from which to fund business and to attract talent."
In the earnings reports, Henry Bros. showed sales of more than $42 million for 2006, roughly the same as 2005. However, the first two quarters of 2007 shows sales of $10.9 million and $13.5 million, which are 19 percent and 33 percent higher, respectively, than the same periods in 2006. Despite keeping sales flat, Henry Bros. reported losses of $2.3 million in 2006, vs. $1.1 million in 2005.
Reach explained: "Half of our 2006 net loss was caused by the write off of goodwill, which is a nonrecurring item," he said. "Excluding this $1.1 million goodwill write-off, our decrease in profitability versus 2005 was the result of higher selling, general and administrative costs relating in part to continued investments in our infrastructure, sales mix changes between our regions resulting in lower labor utilization, and costs associated with the move to our new offices in Fair Lawn, N.J."
The company also reported a loss of $.8 million for 1Q 2007, but showed $.2 million of net income in 2Q.