Video Display Corporation Issues Revised Guidance
27 August 2010 - 3:25PM
Video Display Corporation (Nasdaq:VIDE) today is issuing the
following "Letter to Shareholders" containing excerpts from the
8/27/2010 CEO's Address to Shareholders at the Company's Annual
Meeting in Stone Mountain, GA.
The Company will file a Report on Form 8K detailing the upward
revisions in guidance for the 2nd quarter ended August 31, 2010 and
the full year ended February 28, 2011.
Previous guidance for the 2nd quarter was issued at $0.06 per
share. Current guidance, issued today, increased the projected
level of 2nd quarter earnings to $0.13 per share.
Full year guidance had been previously increased from $0.15 to
$0.18 - $0.22 and subsequently to $0.23 - $0.25 per
share. Current guidance, issued today, increased the projected
level of full year earnings to $0.28 - $0.32 per share based upon
results of the first 5 months of operations.
DEAR SHAREHOLDERS:
TODAY'S MEETING REPRESENTS THE QUARTER CENTURY MARK,
PLUS ONE, IN VIDEO'S LIFE AS A PUBLIC COMPANY AS IT IS THE
26TH ANNUAL MEETING OF THE SHAREHOLDERS OF VIDEO DISPLAY
CORPORATION THAT I HAVE PRESIDED OVER SINCE THE COMPANY WENT
PUBLIC IN JANUARY OF 1985. IT IS VIDEO'S 36th YEAR OF
EXISTENCE AS A SPECIALTY DISPLAY COMPANY.
AT THE LAST ANNUAL MEETING, I BEGAN WITH A COMMENT THAT
FISCAL 2009 HAD BEEN AN EXCEPTIONALLY BAD YEAR; A YEAR OF NUISANCE
LAWSUITS, EXCESSIVE LEGAL FEES AND SETTLEMENT COSTS CAUSING THE
COMPANY TO BE IN VIOLATION OF BANKING COVENANTS WITH OUR
LENDERS. THOSE VIOLATIONS, IN TURN, GENERATED A DOUBLING OF
OUR INTEREST RATES ON OVER $20 MILLION OF CORPORATE DEBT ALONG WITH
NUMEROUS OTHER ASSOCIATED AND TOTALLY NON-PRODUCTIVE PROFESSIONAL
COSTS, AT THE EXPENSE OF THE FINANCIAL HEALTH AND STABILITY OF YOUR
COMPANY.
HOWEVER, SUBSEQUENT TO THE AUGUST MEETING, VDC BEGAN
SEEING THE RESULTS OF THE CONTINUAL SALES AND DEVELOPMENT EFFORTS,
BEING GENERATED AT THE DIVISIONAL LEVEL, IN THE IMPROVED FINANCIAL
RESULTS OF THE 3RD AND 4TH QUARTERS OF FISCAL 2010. THESE
IMPROVEMENTS BECAME EVEN MORE PRONOUNCED IN THE REPORTED FIRST
QUARTER OF THIS 2011 FISCAL YEAR.
THIS IS NOT TO SAY THAT ALL OF OUR "CHALLENGES" WERE
ELIMINATED, BUT... WE BECAME CURRENT WITH OUR PAYABLES, HAVE BEGUN
REDUCING OUR DEBT, ARE MOVING SUBSTANTIAL PORTIONS OF INVENTORIES
AND CONVERTING THEM BACK TO CASH GENERATING STRONG EBITDA AND CASH
FLOW. WE HAVE NOW WHAT IS PROBABLY THE STRONGEST ORDER BACKLOG
IN MANY YEARS, IF NOT ONE OF THE HIGHEST ON RECORD. OUR
DISPLAYS ARE THE "DISPLAY OF CHOICE" IN NUMEROUS PROGRAMS JUST
BEING ENACTED OR RAMPED UP BY MANY OF THE COUNTRY'S LEADING DEFENSE
CONTRACTORS AND THE US ARMED FORCES AS WELL.
ALTHOUGH THE COMPANY MAY HAVE BEEN AFFECTED BY THE
"FINANCIAL CRUNCH" OF 18 MONTHS OR SO AGO, MY OPINION OF THE FUTURE
PROMISE OF VIDEO DISPLAY CORPORATION REMAINED HIGH AT THE LAST
ANNUAL MEETING. BASED UPON WHAT YOU HAVE SEEN AND HEARD THIS
MORNING, MY EXPECTATIONS, WITHOUT A DOUBT, ARE EVEN HIGHER FOR 2011
AND BEYOND. I HAVE, AS HAVE OTHERS IN VDC MANAGEMENT CONTINUED
TO PURCHASE SHARES OF THE COMPANY'S COMMON STOCK IN THE OPEN
MARKET. THE COMPANY ITSELF IS RESTRICTED FROM REPURCHASING
ADDITIONAL SHARES OF COMMON STOCK UNTIL WE HAVE ATTAINED SPECIFIC
LEVELS OF PERFORMANCE SET BY OUR BANK, BUT THE BOARD HAS AUTHORIZED
ADDITIONAL PURCHASES ONCE THOSE LEVELS ARE ACHIEVED.
WE HAVE MADE NO ACQUISITIONS OF SIGNIFICANCE SINCE THE
LAST ANNUAL MEETING, BUT SEVERAL INTERESTING ONES HAVE BEEN
PRESENTED TO US RECENTLY WHICH WE CONTINUE TO REVIEW.
ALL IN ALL, THE ACCOMPLISHMENTS OF FISCAL 2010 CAN BE
SUMMED UP AS: "A YEAR OF BASE BUILDING". WE ARE MORE THAN
"STILL HERE". WE HAVE BUILT A GREAT BACKLOG OF ORDERS FOR
PRODUCTS, BOTH NEW AND LEGACY. WE HAVE ESTABLISHED NEW
SUPPLIER RELATIONSHIPS AND CUSTOMER RELATIONSHIPS THAT SHOULD STAND
US IN GOOD STEAD FOR MANY YEARS TO COME.
USING THE BEST CURRENT INFORMATION AVAILABLE TO ME, IT
APPEARS THAT VDC WILL CONTINUE TO MAKE STRONG PROGRESS THROUGHOUT
THE REMAINDER OF THIS 2011 FISCAL YEAR.
INITIALLY, WE BEGAN FISCAL 2011 WITH GUIDANCE OF
APPROXIMATELY $0.15 IN EARNINGS PER SHARE VERSUS $0.11 FOR FISCAL
2010. HOWEVER, DUE TO EXCELLENT RESULTS FROM OPERATIONS IN THE
1ST QUARTER, WE SUBSEQUENTLY RAISED GUIDANCE FOR FISCAL 2011 TO
$0.18 TO $0.22 PER SHARE AND AGAIN, AFTER FURTHER MONTHLY RESULTS
WERE COMPILED, TO A SLIGHTLY HIGHER LEVEL OF $0.23 TO $0.25 PER
SHARE FOR THE YEAR.
TODAY WE ARE ANNOUNCING THAT CURRENT GUIDANCE IS BEING
FURTHER INCREASED TO REFLECT POTENTIAL ANNUAL EARNINGS FOR FISCAL
2011 TO BE IN THE RANGE OF $0.28 TO $0.32 PER SHARE OR NEARLY 3
TIMES THAT OF FISCAL 2010. THIS UPDATED GUIDANCE IS BEING
BASED UPON THE FIRST QUARTER PREVIOUSLY REPORTED OF $0.07 PER
SHARE, THE 2ND QUARTER, WHICH WILL END TUESDAY OF NEXT WEEK, BEING
APPROXIMATELY $0.13 PER SHARE AND WITH THE THIRD AND FOURTH
QUARTERS ENDING 11/30/2010 AND 2/28/2011 EACH BEING APPROXIMATELY
$0.05 PER SHARE. THEREFORE, IF OUR TARGETS ARE
ACHIEVED, WE SHOULD BE REPORTING EARNINGS SOMEWHERE IN THE RANGE OF
$0.28 TO $0.32 PER SHARE FOR THE ENTIRE YEAR.
AS YOU CAN EASILY SEE, THE GROUNDWORK HAS BEEN
LAID. IT IS NOW UP TO US TO DELIVER THE RESULTS THAT I BELIEVE
THE FIRM AND ITS PEOPLE ARE CAPABLE OF DELIVERING.
Sincerely yours, Ronald D
Ordway CEO
CONTACT: Video Display Corporation
Ron Ordway
770-938-2080
Fax: 770-493-3903
videocrt@att.net
Video Display (PK) (USOTC:VIDE)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Video Display (PK) (USOTC:VIDE)
Historical Stock Chart
Von Jul 2023 bis Jul 2024