Tag: Earnings

Paychex adds board members, announces quarterly dividend

Paychex Inc.’s board of directors has voted to expand the board from nine members to 10. The board has appointed Kevin Price to fill the new position.

Price is the founder and president of PartsScription, an innovative e-commerce platform that helps national and regional retailers to expand their product and parts capabilities. Prior to founding the company in 2006, Price served as customer care network vice president for Sears Holdings Corp. He brings more than 35 years of experience to the Paychex board.

“Not only is Kevin a strategic executive, but he is a successful entrepreneur whose experience building his own business is representative of many clients Paychex serves today,” said Paychex President and CEO Martin Mucci in a statement. “His insight and knowledge will make him a valuable addition to the Paychex board of directors.”

Separately, Paychex announced a quarterly dividend of 66 cents per share payable Aug. 26 to shareholders of record as of Aug. 2, 2021. Additionally, the board has authorized the purchase of up to $400 million of its common stock. The authorization expires Jan. 31, 2024.

“At Paychex, we take great pride in the company’s history of providing exceptional shareholder value,” Mucci said in a statement. “Today’s dividend and stock repurchase announcement are an illustration of that commitment and positions us to continue to make strategic investments in the long-term growth of Paychex.”

In June, the Rochester-based company reported fourth-quarter earnings of 72 cents per share, compared with 61 cents in the year-ago quarter. Adjusted net income for the quarter was $260.8 million, up from $220.6 million in the fourth quarter last year.

For the full year, sales were $4.06 billion, compared with $4.04 billion in fiscal 2020. On a per-share basis, adjusted earnings were $3.04, compared with $3 in fiscal 2020.

“We ended this year with strong momentum having navigated through a fiscal year of unprecedented challenges. Our fourth quarter results were driven by record client retention levels, record sales results and stronger checks per client, which were driven by improving macroeconomic conditions and gains in employment,” Mucci said in a statement in June. “Client base growth was strong and we ended the fiscal year with over 710,000 clients. We are proud to finish the year with positive service revenue growth which is a testament to the resiliency, innovation and commitment of our employees and the strength of our business model. Having navigated through the uncertain environment of the pandemic, we are well-positioned with the continued innovation of our technology and product suite to meet the continuing needs of businesses and help them succeed and thrive as they begin to bring employees back to work and adjust to the changes of how, where, and when work gets done.”

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Seneca Foods posts improved fiscal year bottom line

Wayne County packaged food provider Seneca Foods Corp. last week reported an improvement in sales and an increase in gross margin for fiscal 2021.

For the year ended March 31, Seneca Foods reported sales of $1.47 billion, up from $1.34 billion in fiscal 2020. Officials attributed the improvement to increased sales volume and higher selling prices. Net earnings for the year were $126.1 million, compared with $14.4 million in 2020. Diluted earnings per share were $13.72, compared with $5.58 in the previous year.

“Fiscal 2021 was a year of contrasts. While increased pandemic demand for our products led to record financial performance it was overshadowed by the suffering and loss from the virus by many of our employees, their families and our communities.” said CEO Paul Palmby. “Our results speak for themselves but it was the dedication and hard work of our plant employees who truly made the difference through these difficult times.”

Gross margin as a percentage of net sales increased from 10.6 percent in 2020 to 15.8 percent in 2021 due to higher selling prices and an improved selling mix outweighing the negative impact of a smaller-than-planned pack and incremental expenditures incurred for precautionary and safety measures taken for COVID-19, officials said.

Net sales for the quarter were $304.8 million, down from $307.9 million for the prior-year quarter. Net earnings for the fourth quarter were $14.8 million, compared with $21.2 million in the same quarter last year. On a per-share basis, earnings were $1.62, down from $2.29.

Seneca Foods is one of North America’s leading providers of packaged fruits and vegetables, with facilities located throughout the U.S. Seneca holds the largest share of the retail private label, food service and export canned vegetable markets, distributing to more than 90 countries. Products also are sold under the brands of Libby’s, Aunt Nellie’s, Green Valley, CherryMan, READ and Seneca labels, including Seneca snack chips.

Shares of company stock (Nasdaq: SENEA, SENEB) have ranged from $30.18 to 62.37 in the last 52 weeks and were $48 in light trading Monday morning.

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Monro improves bottom line in Q4

Monro Inc. this week reported a fourth-quarter improvement in sales, income and earnings, beating Street estimates.

For the quarter ended March 27, the automotive undercar repair and tire services provider posted a 6.8 percent increase in revenue to $305.5 million from $286.1 million in the fourth quarter of fiscal 2020. Net income for the fourth quarter was $11.8 million, compared with a net loss of $3.8 million in the year-ago quarter. On a per-share basis, diluted earnings were 35 cents, up from a diluted loss per share of 12 cents in the same quarter last year.

Earnings beat analyst expectations by 9 cents, while sales beat Street expectations by $8.15 million.

The total sales increase for the fourth quarter of $19.4 million resulted from a comparable store sales increase of 9.4 percent for the period and an increase in sales from new stores of $5.1 million, including sales from recent acquisitions of $4.6 million. Those sales were offset partially by a decrease in sales of $5.9 million from closed stores.

Michael Broderick
Michael Broderick

“Monro’s solid fourth-quarter results capped an unprecedented and challenging year and I am proud of our team who demonstrated exceptional resilience and commitment to safely serving our customers. I am excited to build on the tremendous progress that Monro has achieved over the past year advancing its transformation initiatives, said newly-appointed President and CEO Mike Broderick. “As we enter fiscal 2022, we look forward to continuing to build on the momentum we experienced during our fourth quarter. We are well-positioned to capitalize on the strengthening demand environment, as reflected in our comparable store sales growth of approximately 53 percent in the fiscal 2022 first quarter-to-date.”

Sales for fiscal 2021 decreased 10.4 percent to $1.126 billion from $1.257 billion in fiscal 2020. Comparable store sales were down 11.1 percent, compared with a decrease of 2.3 percent in the prior year. Sales for fiscal 2021 were negatively impacted by the pandemic, officials noted.

Net income for fiscal 2021 was $34.3 million, or $1.01 per diluted share, compared with $58 million, or $1.71 per diluted share in fiscal 2020. Adjusted diluted earnings per share in fiscal 2021 were $1.14.

Monro completed the previously announced acquisition of 30 Mountain View Tire & Service retail stores located in the Los Angeles area, further expanding the company’s geographic footprint on the West Coast. The acquisition is expected to add roughly $45 million in annualized sales, representing a sales mix of 70 percent service and 30 percent tires. On a combined basis, acquisitions completed and announced in fiscal 2021 represent an expected total of $65 million in annualized sales.

Monro also said that its board of directors has approved a 2 cents per share increase in the company’s cash dividend for the first quarter of fiscal year 2022 to 24 cents per share, representing an increase of 9 percent from the 22 cents per share cash dividend paid in the first quarter of fiscal 2021. The company has increased its cash dividend 15 times during the 16 years since a cash dividend was first issued. The dividend is payable on June 21, 2021, to shareholders of record at the close of business on June 7, 2021.

“Looking ahead, our focus on operational excellence will be instrumental to unlock the full potential of our Monro.Forward initiatives. In addition, we remain well-positioned to take advantage of attractive consolidation opportunities in our fragmented industry and have successfully completed the acquisition of 30 Mountain View Tire & Service stores in California. Now with a total of 116 stores in the Western region, we are particularly excited about Monro’s growth prospects in this attractive and dynamic market,” Broderick said. “Importantly, our strategy is underpinned by a rigorous financial discipline and strong balance sheet, which we believe provide us with ample financial flexibility to execute our growth initiatives and deliver long-term sustainable value for all our stakeholders.”

Shares of company stock (Nasdaq: MNRO) were down nearly 3 percent Thursday morning to $64.14.

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Transcat shares soar on record Q4 sales

Rochester’s Transcat Inc. on Tuesday reported record sales and operating income for the fourth quarter, beating Wall Street estimates.

For the quarter ended March 27, the manufacturer reported revenue of $48.8 million, a nearly 7 percent increase from $45.8 million in the fourth quarter last year. Net income for the quarter increased nearly 29 percent from $2.5 million to $3.2 million. On a per-share basis, earnings were 42 cents, compared with 33 cents in the year-ago quarter.

Earnings beat Street estimates by 10 cents, while sales topped expectations by $2.58 million.

Lee Rudow
Lee Rudow

“Our fourth-quarter results were stronger than expected and allowed us to achieve record fourth-quarter and full-year revenue, operating income and cash flow, a remarkable achievement in the midst of the global COVID-19 pandemic,” said Transcat President and CEO Lee Rudow. “Our Service segment delivered another excellent quarter, growing revenue 15.8 percent and increasing gross margin by 500 basis points from the prior-year period. We reported double-digit organic revenue growth of 10 percent as our strategy to capture share in highly regulated end markets, including Life Sciences, continues to serve us well. Our gross margin improvement was driven by technician productivity, operating leverage on our fixed costs and strong performances from our recent acquisitions.”

Distribution segment sales continued to be impacted by the pandemic, with a nearly 5 percent drop year-over-year. Rudow, however, said Transcat was encouraged by the segment’s sales, which were the best quarterly result of fiscal 2021.

“We generated cash flow from operations of $23.6 million for the full year, a company record and double the cash we generated in fiscal 2020. We used our cash to pay down debt, fund technology investments and execute our acquisition strategy,” Rudow said. “In April 2021, we acquired Upstate Metrology, a Rochester-based calibration service provider with approximately $1 million in annual revenue. We plan to leverage our current infrastructure and consolidate the business into our main Rochester lab.”

For the full year, sales were roughly flat at $173.3 million. Net income was down roughly 3 percent to $7.8 million. Income per diluted share was $1.03, compared with $1.08 in fiscal 2020.

“I am incredibly proud of the performance and dedication of the entire Transcat team in the fourth quarter and throughout fiscal 2021 as we navigated the most challenging operating environment in recent history. We enter fiscal 2022 with a strong balance sheet, sustainable Service segment gross margins and an active M&A pipeline. We are confident that our disciplined focus on highly-regulated end markets and our new customer pipeline positions us well for continued strong organic growth,” Rudow said.

Shares of company stock (Nasdaq: TRNS) spiked early Wednesday and by midday were trading up nearly 14 percent at $54.00.

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Vuzix reports record smart glasses sales in Q1

Vuzix Corp. this week reported record sales of smart glasses in the first quarter.

Revenues for the quarter ended March 31 were $3.92 million, up significantly from $1.53 million in the year-ago quarter. The increase was driven by higher sales of the company’s smart glasses products, which rose $2.4 million, or 177 percent year-over-year.

Vuzix reported a net loss for the quarter of $6.6 million, or 12 cents per share, compared with a $5.9 million loss in the same quarter last year, or 18 cents per share.

Paul Travers
Paul Travers

“Following further warrant exercises in our first quarter and our late March equity offering, our balance sheet is now stronger with pro forma cash of roughly $145 million as of April 1, which puts us in an excellent position to not only fund projected growth and planned product development, but also to broaden our product offerings through potential strategic initiatives,” said Vuzix President and CEO Paul Travers.

Research and development expenses were $2.1 million in the first quarter, compared with $2 million in the same quarter last year. Company officials attributed the rise to salary and benefits increases, as well as stock-based compensation, largely offset by a decrease in external consulting fees related to the M400 Smart Glasses development.

“The reopening of global economies is waking up segments of our business that went dormant over the past 14 months due to COVID, specifically within logistics, warehousing, retail picking and e-commerce,” Travers said. “At the same time, we continue to see acceleration of our business across healthcare, manufacturing and field service.

“Our balance sheet is the strongest in our company’s history and we believe that we are well-positioned to continue to achieve significant year-over-year comparative revenue growth throughout the balance of 2021, thanks to the growing success of our M-Series and Vuzix Blad Smart Glasses,” he added.

Vuzix is a supplier of smart glasses and augmented reality technologies and products for the consumer and enterprise markets headquartered in West Henrietta. The company’s products include personal display and wearable computing devices that offer users a portable, high-quality viewing experience, provide solutions for mobility, wearable displays and augmented reality.

Shares of company stock (Nasdaq: VUZI) have ranged from $2.06 to $32.43 in the last 52 weeks and were trading at $15.85 Thursday morning.

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Kodak improves bottom line in first quarter

Eastman Kodak Co. this week reported a first-quarter drop in sales but a hefty improvement in its bottom line.

For the quarter ended March 31, revenues declined by $2 million to $265 million, compared with the same period in 2020. Net income for the quarter was $6 million, up from a loss of $111 million in the year-ago quarter.

The prior-year quarter net loss includes an expense of $167 million related to the increase in deferred tax valuation allowances for locations outside the U.S. and income of $53 million related to the change in fair value of embedded derivatives in the Series A Preferred Stock and Convertible Notes.

Eastman Kodak Co. Executive Chairman Jim Continenza
Eastman Kodak Co. Executive Chairman Jim Continenza

“The steps we have taken in the last two years — strengthening our balance sheet, establishing a customer-first approach and continuing to invest in innovation — have created the foundation for growth,” said Kodak’s Executive Chairman and CEO Jim Continenza. “We will continue to execute on those strategies to create long-term value for our shareholders and our employees.”

Kodak ended the first quarter with a cash balance of $401 million, up from the Dec. 31 cash balance of $196 million.

“We continued to see improved cash performance during the first quarter, including an improvement in working capital and an increase in our cash balance through several financing transactions that closed during the quarter,” said David Bullwinkle, Kodak’s CFO. “During the first quarter, we returned to growth in our key product areas, including SONORA Process Free Plates volume and PROSPER annuities which were up 8 and 12 percent respectively compared with the first quarter of 2020. We will continue to evaluate strategies for investing the capital raised through financing activities to generate additional growth.”

Shares of company stock (NYSE: KODK) Thursday morning were trading up slightly at $6.83.

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Ambrell parent company posts 74 percent increase in Q1 sales

InTEST Corp., the parent company of Rochester’s Ambrell Corp., has reported first-quarter sales that dwarfed year-ago revenues and net earnings that were nearly triple those reported in the first quarter last year.

For the quarter ended March 31, inTEST reported sales of $19.6 million, up 74 percent from $11.2 million in the year-ago quarter. Adjusted income was $2.51 million for the quarter, compared with an $836 million loss in the same quarter last year. On a per-share basis, adjusted earnings were 24 cents, compared with an 8-cent loss in the first quarter last year.

“InTEST delivered solid financial results for the first quarter, driven predominantly by continued semiconductor demand,” said inTEST President and CEO Nick Grant in a statement. “Momentum has continued unabated, with strong demand for our innovative test and process technology solutions across a diverse set of end applications.”

Grant noted that bookings have been on a steady increase during the last year and in the first quarter were up 83 percent to $25.2 million.

“We continue to make progress developing vertical growth markets and segments outside of the semiconductor market which will serve to lessen our dependency on this cyclical industry,” Grant added. “However, at the present time the semi market is a considerable driver of our growth, given the strong industry tailwinds and broad end-market demand for semiconductors, compounded by industry-wide chip shortages.”

During an earnings presentation, inTEST noted that Ambrell achieved its highest bookings quarter in its 30-year history, beating its prior record by 34 percent. Ambrell received a major order for a new electric vehicle manufacturing facility in North America and continues to receive robust orders from other OEMs and EV integrators, according to the presentation.

The Rochester manufacturer has a new product, the Ambrell EKOHEAT Compact Series. The first two units are functional, with positive feedback, officials said. The company has received an order for three additional units from a new OEM in Europe. Ambrell expects to fully release the new product this quarter.

The earnings presentation also noted that Ambrell has added a full-time sales professional in Mexico and has initiated plans to set up an application lab there and add an application engineer to support opportunity development within the region.

Company officials expect inTEST revenues for the second quarter to be in the range of $20 million to $21 million, with earnings per diluted share in the range of 20 to 24 cents. Adjusted earnings are expected to be in the range of 23 to 27 cents per share.

“We are laser-focused on capturing growth and driving investments that will position us well long-term and I am pleased with the progress we are making,” Grant said in the earnings statement. “We are setting the stage for our long-term growth and diversification, in line with our strategic plan.”

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IEC posts loss in second quarter

IEC Electronics Corp. last week reported a nearly 3 percent increase in sales in the second quarter, but a loss in the bottom line.

For the quarter ended April 2, the Wayne County manufacturer reported revenues of $45.4 million, a 2.7 percent increase from $44.2 million in the second quarter last year. The company reported a net loss of $300,000 in the second quarter, or 3 cents per basic and diluted share. That compares with net income of $1.5 million, or 15 cents per share, in the year-ago quarter.

For the first six months of fiscal 2021, the company reported revenues of $92.8 million, an increase of 4.4 percent, compared with revenues of $88.9 million for the first six months of fiscal 2020. Operating profit was $2.0 million for the first six months of fiscal 2021, compared with $4.2 million for the same period in the prior year. Due primarily to the investments in both IEC’s new headquarters facility and incremental manufacturing equipment, operating profit for the first six months of fiscal 2021 included $1 million of additional depreciation expense.

The company reported net income of $1.2 million, or 11 cents per basic and diluted share for the first six months of fiscal 2021, compared with net income of $2.7 million, or 26 cents per basic and 25 cents per diluted share in the first six months of fiscal 2020.

IEC President and CEO Jeffrey Schlarbaum
IEC President and CEO Jeffrey Schlarbaum

“Second fiscal quarter results came in below expectations due to delays in ramping two high-value programs. We believe we have built an infrastructure to support the conversion of much higher revenue levels that have now shifted into the second half of the fiscal year. These complex programs, which are anticipated to provide considerable long-term revenue opportunity for IEC, experienced unusual technical challenges and supply chain delays that slowed the ramp to steady production, impacting revenue and profitability for the quarter,” said IEC President and CEO Jeffrey Schlarbaum in a statement.

The company views this as a timing issue, Schlarbaum said, as demand for IEC’s technical and complex manufacturing capabilities remains strong.

“As we have often discussed, we are a manufacturing partner for high complexity, life-saving and mission-critical industries, where there is no compromise for exact technical precision and product quality,” Schlarbaum added. “We are working closely with our customers to manage through the ramp-up challenges experienced in the second quarter and believe our partnerships have been strengthened by IEC’s technical capability, matched with a remediation know-how for complex issues like the ones encountered in the fiscal second quarter.”

On April 2, IEC reported current assets of $103 million, up from $92.6 million six months ago. The company reported cash of $391,000, compared with no reportable cash in the year-ago quarter.

“With our visibility today, we remain confident and believe we are well-positioned to drive double-digit organic growth for the balance of fiscal 2021,” Schlarbaum said. “As a 100 percent U.S.-based manufacturer with a full portfolio of vertically integrated production services, IEC is an attractive partner for companies across several regulated industries who are looking for the highest levels of intellectual property protection and supply chain management. We are focused on growing our leadership position and we are energized by the opportunities we’re seeing in the marketplace to add new customers and programs.”

Shares of company stock (Nasdaq: IEC) have ranged from $7.35 to $17.98 in the last 52 weeks and opened Monday at $11.57.

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Tompkins Financial reports record income, earnings in Q1

Tompkins Financial Corp., the parent company of Tompkins Bank of Castile and a number of other financial institutions, on Friday reported a more than 220 percent increase in earnings in the first quarter of 2021.

For the quarter ended March 31, Tompkins reported net income of $25.6 million, up from $7.9 million in the same quarter last year. On a per-share basis, diluted earnings were $1.72 in the quarter, up from 53 cents in the first quarter a year ago.

“We are extremely pleased to start off 2021 with record quarterly earnings. Results for the quarter, when compared to the same period last year, reflected favorable revenue trends for all three business lines, including increased net interest income, increased insurance commissions and increased investment services fees. At the same time, expenses for the quarter were down from the same quarter last year,” said Tompkins President and CEO Stephen Romaine. “Growth comparisons to the previous year are significantly impacted by the change in provision for credit losses from a $16.3 million expense in the first quarter of 2020, compared to a $2.5 million credit in the first quarter of 2021. The provision for the first quarter of 2020 reflected the highly uncertain economic conditions related to the onset of the COVID-19 pandemic and economic forecasts and other model assumptions relied upon by management in determining the allowance.”

Total loans of $5.3 billion as of March 31 were up $355 million, or 7.2 percent, from March 31, 2020. Loan growth includes a $370 million increase related to loans originated under the Small Business Association Paycheck Protection Program.

Total deposits of $6.9 billion as of March 31 were up more than 28 percent from March 31, 2020, officials noted.

Net interest income was $55 million for the first quarter of 2021, up from $53 million in the year-ago quarter, but down from $57.8 million in the fourth quarter of 2020. Average loans for the quarter were up $377.3 million compared with the same period in 2020.

Average total deposits were up $1.3 billion in the first quarter and average noninterest-bearing deposits were up $540 million for the quarter.

During 2020 and 2021, overall credit quality has been supported by several plans initiated by the company in response to the pandemic. Tompkins initiated and participated in a number of credit initiatives to support customers who have been impacted by the economic conditions associated with COVID-19 including a payment deferral program to help consumer and business borrower that may be experiencing financial hardship. Total loans that continued in a deferral status amounted to roughly $195.6 million as of March 31.

Separately, Tompkins on Friday announced that its board of directors had approved a regular quarterly cash dividend of 54 cents per share, payable on May 17 to common shareholders of record on May 11, 2021.

Shares of company stock (NYSE: TMP) dipped early Friday but rebounded sharply to open Monday at $80. Tompkins 52-week range was between $ 53.32 and $92.80.

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Parker Hannifin reports record Q3 results

Parker Hannifin Corp. on Thursday reported record third-quarter income, beating Street estimates.

For the quarter ended March 31, the Cleveland-based manufacturer reported revenue of $3.75 billion, up from $3.7 billion in the same quarter last year. Net income for the quarter was $471.7 million, compared with $367.4 million in the third quarter last year. On a per-share basis, adjusted diluted earnings were $4.11, up from $3.39 in the year-ago quarter.

Parker Hannifin, a global leader in motion and control technologies, has three facilities in the Rochester area, including two in Wayne County — its Engineered Polymer Systems and its Aerospace Group — and its Chomerics Division in Fairport.

“In the third quarter, we delivered all-time quarterly records for net income, EPS and segment operating margins,” said Chairman and CEO Tom Williams in a statement. “We also generated record year-to-date cash from operations and continued to accelerate the paydown of available debt, putting us in a very strong financial position.

“Our results reflect sustainable performance improvements across our business. These include strengthening our portfolio through the effective integration and accelerated synergies from our acquisitions,” he added. “Broad-based execution of the Win Strategy continues to drive improved profitability and cash flow. Order rates increased by 6 percent in the third quarter, reinforcing our view that demand is at a positive inflection point.”

During the third quarter, the company made debt repayments of $426 million, bringing the cumulative debt reduction to roughly $3.2 billion over the last 17 months. Also during the quarter, the company made share repurchases of $50 million under its 10b5-1 share repurchase program. Last week the company said it would increase its quarterly cash dividend by 17 percent.

Third-quarter sales for the company’s Aerospace Systems Segment decreased 20 percent to $598.9 million, and operating income was $102.3 million, compared with $127.4 million in the same period a year ago.

For the fiscal year ending June 30, 2021, the company has increased guidance for earnings per share to the range of $12.96 to $13.26, or $14.65 to $14.95 on an adjusted basis.

“Our increased guidance reflects strong year-to-date performance and a positive outlook for macroeconomic conditions as we enter the fourth quarter of this fiscal year,” Williams said. “My thanks to our global team as they continue to execute the Win Strategy and progress towards achieving our long-term financial targets, positioning us among the top-quartile of our peer group of diversified industrial companies.”

Shares of company stock (NYSE: PH) were down more than 2 percent to $312.29 in morning trading Thursday.

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Ultralife reports decline in Q1 income

Ultralife Corp. on Thursday reported a first-quarter drop in income, falling short of Street expectations.

For the quarter ended March 31, the Newark power and communication systems company reported revenues of $25.97 million, compared with $25.8 million in the first quarter last year. Net income was $700,000, or 4 cents per diluted share, compared with net income of $1.1 million, or 7 cents per diluted share for the first quarter of 2020. Adjusted EPS was 5 cents on a diluted basis for the first quarter of 2021, compared with 8 cents for the 2020 period.

Analysts had expected non-GAAP earnings of 5 cents and GAAP earnings of 6 cents on revenues of $26.7 million.

Battery & Energy Products revenues increased 6.5 percent to $22.1 million, compared with $20.8 million last year, as a 32.2 percent increase in medical device battery sales and a 30.3 percent increase in government/defense sales were partially offset by a 30 percent decline in oil and gas market sales, officials said in a statement Thursday.

Michael D. Popielec
Michael D. Popielec

“Profitability for the quarter reflected our continuing start-up costs to transition several new products to high volume manufacturing and investments in engineering and sales resources for new product development and market launches to support organic growth initiatives,” Ultralife President and CEO Michael Popielec said in a statement. “As we continue to work on completing new products and identify new targets in emerging markets, we are steadily expanding our long-term opportunities to scale the business and realize the operating leverage inherent in our profitable business model.”

Operating income was $1 million, compared with $1.5 million last year, and operating margin was 3.7 percent, compared with 5.7 percent in the year-ago quarter. The net adverse impact of COVID-19 on operating income for the 2021 first quarter was roughly $900,000.

During the first quarter of 2021, Ultralife’s cash-on-hand increased by 28 percent to $13.7 million and debt was reduced by 27 percent to $1.1 million, officials noted.

Shares of company stock (Nasdaq: ULBI) opened Thursday at $8.15 and were down slightly to $7.95 in early trading.

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Wage gap analyses show Rochester trails cities statewide, women earn less in nearly all occupations

Equal Pay Day has come and gone, but the fact remains that women nationwide earn less than their male counterparts.

MoneyGeek has analyzed equal pay by city, looking at data from more than 625 cities, and found that the cities where women earn the highest incomes are more likely to have pay gaps wider than the national average. Nearly 70 percent of the cities with the top 10 percent for women’s total earnings have pay gaps wider than the national average, supporting studies showing that wage inequality is larger at higher income brackets.

In Rochester, equal pay day — the day women must work until to earn the same amount that men earned in the previous year — was Feb. 16. That compares with Jan. 31 in Syracuse and New York City and Jan. 17 in Buffalo. In other words, women’s income as a percentage of men’s is lower in Rochester than in Buffalo, Syracuse and New York City. The MoneyGeek analysis showed that women’s income as a percent of men’s here is 88.4 percent, better than just two other cities analyzed for the report.

The report shows that equal pay day in large cities comes earlier than one might think and that tech hubs like Silicon Valley and Seattle have pay gaps larger than the national average. The five cities with the largest pay gaps are in southern and western states including Texas, Georgia, Utah and California.

The Institute for Women’s Policy Research in March released an analysis of the gender wage gap by occupation, race and ethnicity for 2020, finding that women earned less than men in almost all occupations, including in all of the most common occupations for women and all of the most common occupations for men.

Of 120 occupations with enough data for calculating the gender wage gap, just five had higher earnings for women than men, and those differences were marginal.

“Women’s median weekly earnings in six of the largest 20 occupations for women leave a family of three near poverty,” said IWPR Senior Research Fellow Ariane Hegewisch. “Latinas in service occupations — including many essential occupations during COVID — earn only 67 cents on the dollar made by white men in these jobs, and Black women just 69 cents. Even in these very low-paid jobs there is a substantial wage gap.”

IWPR surveyed more than 1,400 women in March and found that more than 70 percent say the government should do more to tackle the wage gap. Seventy-five percent think the government should require all companies with 100 or more employees to report gender and pay information, and eight out of 10 women want the government to require companies to include a wage or salary range in job postings. Two-thirds of the women surveyed want employers prohibited from asking job applicants about previous pay, a practice that has been banned in New York state.

“Black women and Latinas deserve more opportunities to move into work that pays higher wages,” said IWPR’s President and CEO Nicole Mason. “There is no good reason for gender differences in earnings. The wage gap is a fixable problem.”

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Xerox reports improvement in bottom line

Xerox Holding Corp. on Tuesday reported mixed results, including an 8 percent decline in first-quarter sales and a 21-cent improvement in earnings.

For the quarter ended March 31, the document company reported revenues of $1.71 billion, down from $1.86 billion in the year-ago quarter. Net income for the quarter was $39 million, compared with a net loss of $2 million in the first quarter of 2020. On a per-share basis, diluted earnings were 18 cents, compared with a loss of 3 cents in the first quarter last year.

Adjusted income for the quarter was $47 million, with non-GAAP earnings at 22 cents.

Analysts had expected non-GAAP earnings of 29 cents on revenue of $1.59 billion.

John Visentin
John Visentin

“In the first quarter, in an environment where many offices remained closed, we grew equipment sales and IT Services revenue year-over-year. I am proud of how our employees have continued to deliver for our customers during the pandemic. We made progress toward standing up XFS, Xerox Software and PARC Innovation as separate businesses, which we now expect to complete in calendar year 2021,” said Xerox Vice Chairman and CEO John Visentin. “With small and medium-sized business and enterprise clients planning to return more employees to the office, our differentiated offerings are well-positioned to serve their growing needs. The strength of our performance, portfolio and strategy give us confidence we will return Xerox to growth in 2021.”

Services, maintenance and rentals made up the bulk of Xerox’s revenues for the quarter at $1.05 billion. Sales were $602 million, while financing was $55 million.

The company reported cash on hand of $2.38 billion at the end of the first quarter, down from $2.63 billion at the end of the fourth quarter of 2020. Total assets for the quarter were down nearly $500 million to $14.27 billion.

Shares of company stock (NYSE: XRX) were down more than 3 percent to $24.51 in morning trading.

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Paychex revenues, income down in Q3

Paychex Inc. this week reported third-quarter sales and earnings that fell short of 2020 numbers.

For the quarter ended Feb. 28, the Rochester company reported total revenue of $1.1 billion, down 3 percent from $1.16 billion in the year-ago quarter. Net income for the quarter was $834.5 million, down 5 percent from $877.4 million a year ago. Adjusted net income for the third quarter was $841.6 million, compared with $862.6 million in the same quarter last year.

On a per-share basis, diluted earnings were 97 cents, down 1 percent from a year ago. Adjusted earnings were 96 cents per share.

Martin Mucci
Martin Mucci

“Client retention remains strong and at record levels, and our results for the third quarter show that our resilient business model has helped us navigate the uncertainties created by COVID-19,” said Paychex President and CEO Martin Mucci in a statement. “We continue to see progress in our key indicators and remain committed to providing our clients the flexibility, technology and resources they need to respond and adapt to the uncertainties of the COVID-19 environment.”

Company officials said results of operations continue to be impacted by the pandemic, but noted that client retention remains strong and at record levels.

“We’re anticipating client needs with solutions that prepare them for what’s next. Our sales, support, product development and marketing teams carefully listen to customer feedback — bringing to market new tools and technology designed to efficiently manage payroll, staffing, time tracking and scheduling,” Mucci said.

Paychex updated its full-year guidance, expecting revenues to be flat to decrease by 2 percent. Adjusted diluted earnings per share is expected to be in the range of flat to decrease by 2 percent.

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Kodak reports full-year net loss

Eastman Kodak Co. after the bell on Tuesday reported full-year financial results that include a steep decline in revenues and a net loss of $196 million for the year.

For the full year ended Dec. 31, the Rochester company reported consolidated revenues of $1 billion, compared with $1.2 billion in 2019. Kodak reported a net loss of $541 million, compared with earnings of $116 million in the prior year.

Kodak reported a cash balance of $196 million at year-end.

On March 1, 2021, the company announced a series of financial transactions that provide access to new capital, address maturing obligations and strengthen the company’s ability to invest in strategic growth opportunities in its core businesses. Included in those transactions is a $100 million investment by Grand Oaks Capital, an investment firm started by Paychex founder Tom Golisano. Kodak officials said the additional liquidity provided by the financial transactions “eliminates the substantial doubt about Kodak’s ability to continue as a going concern.”

“Kodak successfully managed through 2020 despite the challenges of the pandemic,” said Kodak CEO and Executive Chairman Jim Continenza. “We mitigated the impact of COVID with cost-saving initiatives, launched several innovative print-business products and generated cash in the third and fourth quarters. More recently, we announced a series of financial transactions which significantly strengthened our balance sheet and set the stage for growth through investments in our core businesses in print and advanced materials and chemicals, and new initiatives.”

The company’s loss for the year included a charge of $416 million to reflect the increased value of the derivative liability embedded in the convertible notes immediately prior to conversion during the third quarter 2020, as well as expenses of $167 million related to the increase in deferred tax valuation allowances for locations outside the U.S. during the first quarter of 2020. Operational EBITDA was negative $1 million for the year, compared with $13 million in 2019.

“Kodak increased its cash balance in the third and fourth quarters by $16 million and ended the year at $196 million in cash,” said CFO David Bullwinkle. “During 2020 the company improved its financial health by removing legacy liabilities and reducing costs, and the recently announced transactions put Kodak in a strong financial position and provide incremental liquidity to drive growth.”

Shares of company stock (NYSE: KODK) closed Tuesday at $8.75 and were down more than 5 percent midday Wednesday to $8.24.

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