Officials from Langer Inc. reported the company’s financial results for the 3- and 9-month periods ended Sept. 30, 2007. Net sales for the third quarter were $17,409,000, an increase of 92% over the net sales for the same quarter in 2006. Twincraft and Regal contributed net sales of $7,010,000 and $1,076,000, respectively.
Consolidated gross profit as a percentage of net sales for the third quarter was 37.1%, compared with 40.8% for the same period in 2006. The decrease in gross profit margin is primarily due to the lower average gross profit margin attributable to Twincraft.
Operating expenses were $6,664,000, or 38.3% of net sales, compared with 2006 operating expenses of $4,211,000, or 46.5% of net sales, primarily due to Twincraft’s lower operating costs as a percentage of net sales and the leveraging of corporate overheads over a larger sales base.
For the third quarter of 2007, interest expense increased by $339,000, compared with the same quarter in 2006, due to the issuance in December 2006 of $28,880,000 of 5% convertible subordinated notes.
The company reported a net loss of $837,000 for the third quarter, or $.07 per share on a fully diluted basis, reflecting the inclusion in net income of $88,000 from Twincraft, compared with a net loss for the same quarter in 2006 of $553,000 or $.06 per share on a fully diluted basis.
Net sales for the first 9 months of 2007 were $49,941,000, compared with $26,604,000 for the first 9 months of 2006, an increase of $23,337,000 or 87.7%. Twincraft, acquired on Jan. 23, 2007, and Regal, acquired on Jan. 8, 2007, generated net sales of $20,691,000 and $2,741,000, respectively, which accounted for the overall increase in net sales.
Operating expenses for the first 9 months of 2007 were $18,859,000, or 37.8% of net sales, compared to operating expenses of $12,694,000, or 47.7% of net sales, for the same period in 2006, primarily due to Twincraft’s lower operating costs as a percentage of net sales and the leveraging of corporate overheads over a larger sales base. Interest expense was $1,633,000, an increase of $833,000, due to the issuance of our 5% convertible subordinated notes.
The company reported a net loss of $2,472,000 for the first 9 months of 2007, or $.22 per share on a fully diluted basis, reflecting the inclusion in net income of $922,000 from Twincraft, compared with a net loss for the first 9 months of 2006 of $2,461,000 or $.25 per share on a fully diluted basis.
