Company Announces Plans to Improve Profitability and Liquidity
BEAVERTON, Ore.--(BUSINESS WIRE)--April 29, 2008--Planar Systems,
Inc. (NASDAQ:PLNR), a worldwide leader in specialty display solutions,
recorded sales of $69.8 million and a GAAP loss per share of $0.29 in
the second quarter ended March 28, 2008. On a Non-GAAP basis (see
reconciliation table), net loss per share was $0.06 in the second
quarter of fiscal 2008.
"While we saw strong performances in some of our segments, we are
obviously disappointed with our overall second quarter financial
results," said Gerry Perkel, Planar's President and Chief Executive
Officer. "We are committed to taking the necessary actions to improve
our financial performance."
SUMMARY FINANCIAL PERFORMANCE
The following table presents a breakdown of the Company's Non-GAAP
financial performance by major business unit for the second quarter of
fiscal 2008. Additional comparative segment financial information,
along with reconciliations to GAAP and information regarding the use
of Non-GAAP financial measures, are presented in supplementary tables
and notes within this release.
Business Segment MBU IBU CBU CSBU HTBU Total
----------------------------------------------------------------------
Net Sales 11,584 17,736 17,23911,953 11,335 69,847
- Y/Y Growth % 12% 27% 0% -1% 1136% 28%
- Qtr/Qtr Growth % 10% 4% -14% -33% -25% -13%
----------------------------------------------------------------------
Business Unit Operating
Income (loss) 2,340 4,771 603 (639) (2,292) 4,783
----------------------------------------------------------------------
Corporate Expense Allocation (1,033)(1,582)(703) (1,448)(1,297)(6,063)
----------------------------------------------------------------------
Non-GAAP Operating Income
(loss) 1,307 3,189 (100) (2,087)(3,589)(1,280)
----------------------------------------------------------------------
Depreciation 218 600 45 277 289 1,429
----------------------------------------------------------------------
Non-GAAP EBITDA 1,525 3,789 (55) (1,810)(3,300) 149
----------------------------------------------------------------------
- EBITDA % of Sales 13% 21% 0% -15% -29% 0%
----------------------------------------------------------------------
Notes: Corporate Expense Allocation includes primarily G&A expense
along with Corporate R&D and Sales and Marketing Expense
Sales in the Company's Industrial segment (IBU) grew 27 percent
over last year to $17.7M for the quarter, which is the largest revenue
quarter in almost two years in this segment. In addition, the
Company's Medical segment (MBU) experienced revenue growth of 12
percent compared with the second quarter a year ago. Sales in the
Commercial Business Unit (CBU) were flat compared to the previous
year. While the second quarter is historically softer for the
Company's Control Room & Signage (CSBU) and Home Theater (HTBU)
segments, revenues from these segments were weaker than anticipated
due to a combination of economic challenges and internal execution
issues, causing the Company to not meet its overall revenue goal for
the quarter.
PROFITABILITY AND LIQUIDITY IMPROVEMENT PLANS
The Company launched a new strategic direction almost two years
ago, with the goal of transforming into a larger and more profitable
specialty display provider. To achieve that goal the Company undertook
a number of growth initiatives including investing in some of its
legacy specialties businesses, launching new organic growth
initiatives, and gaining entry into complementary specialty display
markets as well as product expertise via two strategic acquisitions.
The Company believes it has allowed sufficient time for these
initiatives to show their merit and the result is that some have been
successful and some have not. Therefore the Company is entering the
next phase of its strategy to focus on those initiatives which are
performing well and fix those which are underperforming. The overall
goal of this next phase is to improve profitability at a faster rate,
increase cash flow and improve liquidity, and ultimately enhance
shareholder value.
While there are many improvement activities under evaluation, the
following priority areas have been, or are in the process of being
implemented:
Overall Workforce and Expense Adjustments:
-- With the transition of the Runco business operations from
California to Oregon complete as of the end of the second
quarter, some overlap in employment required during the move
has now been reduced. In addition, the Company has implemented
a number of other cost reduction activities, including
additional reductions in force to start the third quarter. The
result of the various workforce adjustments is a reduction of
approximately 80 full-time and temporary employees from a peak
of 788 experienced in the second quarter.
Specific Business Segment Actions:
-- In the Industrial business, the Company will look to modestly
increase some investments as it continues to see opportunities
to both grow revenues and profits in this higher operating
margin business. The Company expects that revenues in fiscal
2008 will grow over fiscal 2007 in this segment, based on the
success of the new strategic direction previously initiated.
-- In the Home Theater business, the Company has not achieved
expected financial performance in the business after the
acquisition of Runco, partially due to integration challenges
and partially due to the impact on the market of the U.S.
economic slowdown. The Company is implementing changes to
enhance the experience of its customers and improve the
financial performance of the business. Gerry Perkel will be
stepping in as General Manager as Scott Hix, Vice President
and General Manager of the Home Theater Business Unit, is
departing the Company. The Company continues to believe in
this market and will be working to rapidly improve the
performance of its Home Theater business.
-- In the Control Room and Signage segment, the Company plans to
refine its investment strategy to create improved
profitability. The integration of Clarity is now virtually
complete and the Company is experiencing gross margins between
35 and 40 percent in this segment. While the second quarter
followed its usual pattern of seasonal softness, the Company
believes it is improving the overall profitability of this
segment as evidenced in the first quarter results, and plans
to accelerate that improvement going forward through
additional specific actions.
Company Cash Flow and Liquidity Improvements:
-- The Company was within the covenants of its existing line of
credit in the second quarter. In addition, the Company is
initiating a number of actions aimed at improving cash flow
and liquidity. This effort will focus on two key areas: first,
identifying if there is an opportunity to monetize some
investments or underperforming assets and second, driving
reduced inventory levels by the end of the fiscal year.
These actions, along with others being considered, are focused at
accelerating the profitability of the Company now that a new higher
revenue base has been created. "We are very committed to improving the
profitability and liquidity of the Company, and we believe we have
opportunities to be successful," continued Perkel.
BUSINESS OUTLOOK
Looking forward, the Company expects sequential improvement in
both revenue and Non-GAAP EPS in the third quarter compared to the
second quarter and to sequentially improve further in the fourth
quarter. Also, based upon restructuring actions taken to date, the
Company expects to record a $0.6M cash charge in the third quarter. In
addition, the Company plans to continue to look for opportunities to
improve future profitability. Some of these new opportunities may
result in additional restructuring charges in the third and / or
fourth quarters of this year. At this time, the Company believes it
can incur the total of these potential restructuring charges,
associated with the actions required to improve profitability, without
violating the covenants included in its existing line of credit. The
Company expects to achieve improved profitability and liquidity in
fiscal 2009 compared to 2008.
Results of operations and the business outlook will be discussed
in a conference call today, April 29, 2008, beginning at 2:00 PM
Pacific Time. The call can be heard via the Internet through a link on
Planar's Web site, www.planar.com, or through numerous other investor
sites, and will be available for replay until May 29, 2008. The
Company intends to post on its Web site a transcript of the prepared
management commentary from the conference call shortly after the
conclusion of the call.
ABOUT PLANAR
Planar Systems, Inc (NASDAQ:PLNR) is a global leader of specialty
display technology providing hardware and software solutions for the
world's most demanding environments. Hospitals, space and military
programs, utility and transportation hubs, shopping centers, banks,
government agencies, businesses, and home theater enthusiasts all
depend on Planar to provide superior performance when image experience
is of the highest importance. Founded in 1983, Planar is headquartered
in Oregon, USA, with offices, manufacturing partners, and customers
worldwide. For more information, visit www.planar.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995:
This release contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995
relating to Planar's business operations and prospects, including
statements relating to driving improved profitability, liquidity and
shareholder value and the statements made under the heading "Business
Outlook." These statements are made pursuant to the safe harbor
provisions of the federal securities laws. These and other
forward-looking statements, which may be identified by the inclusion
of words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "goal" and variations of such words
and other similar expressions, are based on current expectations,
estimates, assumptions and projections that are subject to change, and
actual results may differ materially from the forward-looking
statements. These statements are not guarantees of future performance
and involve certain risks and uncertainties that are difficult to
predict. Many factors, including the following, could cause actual
results to differ materially from the forward-looking statements: the
possibility that the acquisitions of Clarity Visual Systems and Runco
International will not be effectively integrated with the Company's
other business operations or that other difficulties will arise in
connection with the integration of the operations, employees,
strategies, and technologies; changes or slower growth in the digital
signage and/or command and control display markets; the potential
inability to realize expected benefits and synergies of the Clarity
and Runco acquisitions; domestic and international business and
economic conditions; any reduction in or delay in the timing of
customer orders or the Company's ability to ship product upon receipt
of a customer order; adverse impacts on the Company or its operations
relating to or arising from the Company's indebtedness including
difficulties in obtaining financing for the companies growth
initiatives, changes in the flat-panel monitor industry; changes in
customer demand or ordering patterns; changes in the competitive
environment including pricing pressures or technological changes;
technological advances; shortages of manufacturing capacity from the
Company's third-party manufacturing partners; final settlement of
contractual liabilities; balance sheet changes related to updating
certain estimates required for the purchase accounting treatment of
the Clarity and Runco acquisitions; future production variables
impacting excess inventory and other risk factors listed from time to
time in the Company's Securities and Exchange Commission (SEC)
filings. The forward-looking statements contained in this press
release speak only as of the date on which they are made, and the
Company does not undertake any obligation to update any
forward-looking statement to reflect events or circumstances after the
date of this press release.
Planar Systems, Inc.
Consolidated Statement of Operations
(In thousands, except per share amounts)
(unaudited)
Three months Six months ended
ended
March March 30, March 28, March 30,
28, 2007 2008 2007
2008
------------------ -------------------
Sales $69,847 $54,589 $150,411 $119,498
Cost of Sales 51,859 41,740 112,182 88,232
----------------- -------------------
Gross Profit 17,988 12,849 38,229 31,266
Operating Expenses:
Research and development, net 3,294 3,897 6,737 7,040
Sales and marketing 11,063 8,712 22,070 17,964
General and administrative 5,957 4,746 12,005 10,158
Amortization of intangible
assets 1,888 1,650 3,889 3,300
Acquisition related costs 624 417 1,429 739
Impairment and restructuring - - (637) 1,625
----------------- -------------------
Total Operating Expenses 22,826 19,422 45,493 40,826
Income (loss) from operations (4,838) (6,573) (7,264) (9,560)
Non-operating income (expense):
Interest, net (412) 368 (901) 967
Foreign exchange, net 42 (10) (75) 179
Other, net 3 (5) (108) (24)
----------------- -------------------
Net non-operating income
(expense) (367) 353 (1,084) 1,122
Income (loss) before taxes (5,205) (6,220) (8,348) (8,438)
Provision (benefit) for income
taxes 33 (2,333) 379 (3,165)
----------------- -------------------
Net income (loss) $(5,238) $(3,887) $ (8,727) $ (5,273)
================= ===================
Basic net income (loss) per
share ($0.29) ($0.22) ($0.49) ($0.31)
Average shares outstanding -
basic 17,768 17,336 17,716 17,234
Diluted net income (loss) per
share ($0.29) ($0.22) ($0.49) ($0.31)
Average shares outstanding -
diluted 17,768 17,336 17,716 17,234
Planar Systems, Inc.
Consolidated Balance Sheets
(In thousands)
March 28, Sept. 28,
2008 2007
----------- ---------
ASSETS (unaudited)
Cash and cash equivalents 9,763 $ 15,287
Accounts receivable, net 41,279 42,915
Inventories 62,036 59,028
Other current assets 17,095 13,480
----------- ---------
Total current assets 130,173 130,710
Property, plant and equipment, net 14,378 14,918
Goodwill 63,332 67,429
Intangible assets 40,384 44,278
Other assets 5,642 5,809
----------- ---------
$253,909 $263,144
=========== =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable 27,216 $ 31,712
Note payable 26,000 -
Current portion of capital leases 298 324
Deferred revenue 5,763 4,888
Other current liabilities 30,524 36,584
----------- ---------
Total current liabilities 89,801 73,508
Note payable - 23,000
Capital leases, net of current portion 71 152
Other long-term liabilities 12,646 12,597
----------- ---------
Total liabilities 102,518 109,257
Common stock 170,832 167,967
Retained earnings (22,383) (13,450)
Accumulated other comprehensive income (loss) 2,942 (630)
----------- ---------
Total shareholders' equity 151,391 153,887
----------- ---------
$253,909 $263,144
=========== =========
Planar Systems, Inc.
Reconciliation of GAAP to Non-GAAP Results of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended March 28, 2008
Adjustments
Clarity Share-
/Runco based
GAAP Acquisitions Comp. Other Non-GAAP
----------------------------------------------
Sales $69,847 $69,847
Cost of Sales 51,859 (96) 51,763
-------- ----------- ------- ------ --------
Gross Profit 17,988 - 96 - 18,084
Operating Expenses:
Research and
development, net 3,294 (107) 3,187
Sales and marketing 11,063 (278) 10,785
General and
administrative 5,957 (565) 5,392
Amortization of
intangible assets 1,888 (1,741) (147) -
Acquisition related
cost 624 (624) -
Impairment and
restructuring - -
-------- ----------- ------- ------ --------
Total Operating Expenses 22,826 (2,365) (950) (147) 19,364
Income (loss) from
operations (4,838) 2,365 1,046 147 (1,280)
Non-operating income
(expense):
Interest, net (412) (412)
Foreign exchange, net 42 42
Other, net 3 3
-------- ----------- ------- ------ --------
Net non-operating
income (expense) (367) (367)
Income (loss) before
taxes (5,205) 2,365 1,046 147 (1,647)
Provision (benefit) for
income taxes 33 (15) (7) (629)(a) (618)
-------- ----------- ------- ------ --------
Net income (loss) $(5,238) $ 2,380 $1,053 $ 776 $(1,029)
======== =========== ======= ====== ========
Basic net income (loss)
per share ($0.29) ($0.06)
Average shares
outstanding - basic 17,768 17,768
Diluted net income
(loss) per share ($0.29) ($0.06)
Average shares
outstanding - diluted 17,768 17,768
(a) Assumes a 37.5% tax rate when the Company is no longer required to
provide a valuation allowance against deferred tax assets.
Refer to the "Note Regarding the Use of Non-GAAP Financial Measures"
Planar Systems, Inc.
Reconciliation of GAAP to Non-GAAP Results of Operations
(In thousands, except per share amounts)
(unaudited)
Three months ended March 30, 2007
Adjustments
Clarity Share-based
GAAP Acquisition Comp. Other Non-GAAP
-------------------------------------------
Sales $54,589 34 (a) $54,623
Cost of Sales 41,740 (93) 41,647
-------- -------- ------- ------ --------
Gross Profit 12,849 34 93 - 12,976
Operating Expenses:
Research and
development, net 3,897 (105) 3,792
Sales and marketing 8,712 (458) 8,254
General and
administrative 4,746 (410) 4,336
Amortization of
intangible assets 1,650 (1,503) (147) -
Acquisition related cost 417 (417) -
Impairment and
restructuring - -
-------- -------- ------- ------ --------
Total Operating Expenses 19,422 (1,920) (973) (147) 16,382
Income (loss) from
operations (6,573) 1,954 1,066 147 (3,406)
Non-operating income
(expense):
Interest, net 368 368
Foreign exchange, net (10) (10)
Other, net (5) (5)
-------- -------- ------- ------ --------
Net non-operating
income (expense) 353 353
Income (loss) before taxes (6,220) 1,954 1,066 147 (3,053)
Provision (benefit) for
income taxes (2,333) 733 400 55 (1,145)
-------- -------- ------- ---------------
Net income (loss) $(3,887) $ 1,221 $ 666 $ 92 $(1,908)
======== ======== ======= ====== ========
Basic net income (loss) per
share ($0.22) ($0.11)
Average shares outstanding
- basic 17,336 17,336
Diluted net income (loss)
per share before ($0.22) ($0.11)
Average shares outstanding
- diluted 17,336 17,336
(a)Non-cash effect for mark down of Clarity deferred revenue to fair
value
Refer to the "Note Regarding the Use of Non-GAAP Financial Measures"
Planar Systems, Inc.
Reconciliation of GAAP Operating Income (loss) to Non-GAAP EBITDA by
Business Segment
For the three months ended March 28, 2008
(in thousands, unaudited)
Business MBU IBU CBU CSBU HTBU Corporate Total
Segment
----------------------------------------------------------------------
GAAP Operating
Income (loss) 2,340 4,771 603 (639) (2,292) (9,621) (4,838)
Corporate
Expenses 6,063 6,063
Intangibles
Amortization 1,888 1,888
Share-based
Compensation 1,046 1,046
Integration
Expenses 624 624
----------------------------------------------------------------------
Business Unit
Operating
Income (loss) 2,340 4,771 603 (639) (2,292) 0 4,783
Corporate
Expense
Allocation (1,033) (1,582) (703) (1,448) (1,297) 0 (6,063)
----------------------------------------------------------------------
Non-GAAP
Operating
Income (loss) 1,307 3,189 (100) (2,087) (3,589) 0 (1,280)
Depreciation 218 600 45 277 289 0 1,429
----------------------------------------------------------------------
Non-GAAP EBITDA 1,525 3,789 (55) (1,810) (3,300) 0 149
======================================================================
Planar Systems, Inc.
Non-GAAP EBITDA by Business Segment
For the three months ended March 30, 2007
(in thousands, unaudited)
----------------------------------------------------------------------
Business Segment MBU IBU CBU CSBU HTBU Total
----------------------------------------------------------------------
Net Sales 10,360 14,011 17,217 12,118 917 54,623
- Y/Y Growth % -2% -37% -15% N/A N/A 3%
- Qtr/Qtr Growth % 0% -15% -5% -36% -23% -16%
----------------------------------------------------------------------
Business Unit Operating
Income (loss) 599 3,509 151 (1,293) (1,385) 1,581
----------------------------------------------------------------------
Corporate Expense
Allocation (1,034) (1,400) (822) (1,475) (256) (4,987)
----------------------------------------------------------------------
Non-GAAP Operating
Income (loss) (435) 2,109 (671) (2,768) (1,641) (3,406)
----------------------------------------------------------------------
Depreciation 217 509 20 213 139 1,098
----------------------------------------------------------------------
Non-GAAP EBITDA (218) 2,618 (651) (2,555) (1,502) (2,308)
----------------------------------------------------------------------
- EBITDA % of Sales -2% 19% -4% -21% -164% -4%
----------------------------------------------------------------------
Refer to the "Note Regarding the Use of Non-GAAP Financial Measures"
Planar Systems, Inc.
Reconciliation of GAAP Operating Income (loss) to Non-GAAP EBITDA by
Business Segment
For the three months ended March 30, 2007
(in thousands, unaudited)
Business MBU IBU CBU CSBU HTBU Corporate Total
Segment
----------------------------------------------------------------------
GAAP Operating
Income (loss) 599 3,509 151 (1,327) (1,385) (8,120) (6,573)
Corporate
Expenses 4,987 4,987
Deferred
revenue
adjustment to
fair value 34 34
Intangibles
Amortization 1,650 1,650
Share-based
Compensation 1,066 1,066
Integration
Expenses 417 417
----------------------------------------------------------------------
Business Unit
Operating
Income (loss) 599 3,509 151 (1,293) (1,385) 0 1,581
Corporate
Expense
Allocation (1,034) (1,400) (822) (1,475) (256) 0 (4,987)
----------------------------------------------------------------------
Non-GAAP
Operating
Income (loss) (435) 2,109 (671) (2,768) (1,641) 0 (3,406)
Depreciation 217 509 20 213 139 0 1,098
----------------------------------------------------------------------
Non-GAAP EBITDA (218) 2,618 (651) (2,555) (1,502) 0 (2,308)
======================================================================
Planar Systems, Inc.
Non-GAAP EBITDA by Business Segment
For the six months ended March 28, 2008
(in thousands, unaudited)
----------------------------------------------------------------------
Business Segment MBU IBU CBU CSBU HTBU Total
----------------------------------------------------------------------
Net Sales 22,119 34,832 37,255 29,802 26,403 150,411
- Y/Y Growth % 7% 14% 6% -4% 1157% 26%
----------------------------------------------------------------------
Business Unit
Operating Income
(loss) 2,621 7,992 1,612 2,200 (2,899) 11,526
----------------------------------------------------------------------
Corporate Expense
Allocation (1,818) (2,851) (1,221) (3,126) (2,746) (11,762)
----------------------------------------------------------------------
Non-GAAP Operating
Income (loss) 803 5,141 391 (926) (5,645) (236)
----------------------------------------------------------------------
Depreciation 443 1,195 92 574 632 2,936
----------------------------------------------------------------------
Non-GAAP EBITDA 1,246 6,336 483 (352) (5,013) 2,700
----------------------------------------------------------------------
- EBITDA % of Sales 6% 18% 1% -1% -19% 2%
----------------------------------------------------------------------
Refer to the "Note Regarding the Use of Non-GAAP Financial Measures"
Planar Systems, Inc.
Reconciliation of GAAP Operating Income (loss) to Non-GAAP EBITDA by
Business Segment
For the six months ended March 28, 2008
(in thousands, unaudited)
Business MBU IBU CBU CSBU HTBU Corporate Total
Segment
----------------------------------------------------------------------
GAAP
Operating
Income
(loss) 2,621 7,992 1,612 2,200 (2,899)(18,790) (7,264)
Corporate
Expenses 11,762 11,762
Restructuring (637) (637)
Intangibles
Amortization 3,889 3,889
Share-based
Compensation 2,347 2,347
Integration
Expenses 1,429 1,429
----------------------------------------------------------------------
Business Unit
Operating
Income
(loss) 2,621 7,992 1,612 2,200 (2,899) 0 11,526
Corporate
Expense
Allocation (1,818) (2,851) (1,221) (3,126) (2,746) 0 (11,762)
----------------------------------------------------------------------
Non-GAAP
Operating
Income
(loss) 803 5,141 391 (926) (5,645) 0 (236)
Depreciation 443 1,195 92 574 632 0 2,936
----------------------------------------------------------------------
Non-GAAP
EBITDA 1,246 6,336 483 (352) (5,013) 0 2,700
======================================================================
Planar Systems, Inc.
Non-GAAP EBITDA by Business Segment
For the six months ended March 30, 2007
(in thousands, unaudited)
----------------------------------------------------------------------
Business Segment MBU IBU CBU CSBU HTBU Total
----------------------------------------------------------------------
Net Sales 20,692 30,521 35,263 30,989 2,101 119,566
- Y/Y Growth % -6% -28% -23% N/A N/A 9%
----------------------------------------------------------------------
Business Unit
Operating Income
(loss) 2,109 8,133 922 30 (2,294) 8,900
----------------------------------------------------------------------
Corporate Expense
Allocation (1,928) (2,851) (1,582) (3,501) (452) (10,314)
----------------------------------------------------------------------
Non-GAAP Operating
Income (loss) 181 5,282 (660) (3,471) (2,746) (1,414)
----------------------------------------------------------------------
Depreciation 467 1,062 51 551 334 2,465
----------------------------------------------------------------------
Non-GAAP EBITDA 648 6,344 (609) (2,920) (2,412) 1,051
----------------------------------------------------------------------
- EBITDA % of Sales 3% 21% -2% -9% -115% 1%
----------------------------------------------------------------------
Refer to the "Note Regarding the Use of Non-GAAP Financial Measures"
Planar Systems, Inc.
Reconciliation of GAAP Operating Income (loss) to Non-GAAP EBITDA by
Business Segment
For the six months ended March 30, 2007
(in thousands, unaudited)
Business MBU IBU CBU CSBU HTBU Corporate Total
Segment
----------------------------------------------------------------------
GAAP
Operating
Income
(loss) 2,109 8,133 922 (272) (2,294) (18,159) (9,561)
Corporate
Expenses 10,314 10,314
Deferred
revenue
adjustment
to fair
value 68 68
Inventory
step-up
adjustment
to fair
value 234 234
Restructuring 1,625 1,625
Intangibles
Amortization 3,300 3,300
Share-based
Compensation 2,181 2,181
Integration
Expenses 739 739
----------------------------------------------------------------------
Business Unit
Operating
Income
(loss) 2,109 8,133 922 30 (2,294) 0 8,900
Corporate
Expense
Allocation (1,928) (2,851) (1,582) (3,501) (452) 0 (10,314)
----------------------------------------------------------------------
Non-GAAP
Operating
Income
(loss) 181 5,282 (660) (3,471) (2,746) 0 (1,414)
Depreciation 467 1,062 51 551 334 0 2,465
----------------------------------------------------------------------
Non-GAAP
EBITDA 648 6,344 (609) (2,920) (2,412) 0 1,051
======================================================================
Note Regarding the Use of Non-GAAP Financial Measures:
In addition to disclosing financial results calculated in
accordance with U.S. generally accepted accounting principles (GAAP),
the Company's earnings release contains Non-GAAP financial measures
that exclude the income statement effects of the acquisitions of
Clarity Visual Systems and Runco International, share-based
compensation and the requirements of SFAS No. 123R, "Share-based
Payment" ("123R"). The Non-GAAP financial measures also exclude
impairment and restructuring charges, the amortization of intangible
assets related to previous acquisitions, and various tax charges
including the valuation allowance against deferred tax assets. The
earnings release also contains a calculation of Non-GAAP earnings
before interest, taxes, depreciation, and amortization (Non-GAAP
EBITDA), which, in addition to excluding the effects of the Clarity
and Runco acquisitions, share based compensation, and other
adjustments, includes an allocation of Corporate expenses to the
Company's business segments in order to calculate Non-GAAP EBITDA by
business segment. Such corporate expenses include Corporate General
and Administrative (primarily), Research and Development, and Sales
and Marketing which are not specifically identified as related to each
business segment in the information provided to the Chief Operating
Decision Maker, rather are estimated for the purpose of presenting
fully burdened lines of business. The Non-GAAP financial measures
disclosed by the Company should not be considered a substitute for, or
superior to, financial measures calculated in accordance with GAAP,
and the financial results calculated in accordance with GAAP and
reconciliations to those financial statements should be carefully
evaluated. The Non-GAAP financial measures used by the Company may be
calculated differently from, and therefore may not be comparable to,
similarly titled measures used by other companies. The Company has
provided reconciliations of the non-GAAP financial measures to the
most directly comparable GAAP financial measures.
CONTACT: MEDIA CONTACTS
Planar Systems, Inc.
Pippa Edelen, 503-748-6983
pippa.edelen@planar.com
or
GolinHarris
Chase Perrin, 213-438-8788
cperrin@golinharris.com
or
INVESTOR CONTACTS
Planar Systems, Inc.
Ryan Gray, 503-748-8911
ryan.gray@planar.com
SOURCE: Planar Systems, Inc.
