UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): December 30, 2002
ADDvantage Technologies Group, Inc.
(Exact name of Registrant as specified in its charter)
Oklahoma 1-10799 73-1351610
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(State or other (Commission (I.R.S.
jurisdiction of File Employer
incorporation) Number) Identification
No.)
1605 E. Iola
Broken Arrow, Oklahoma
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(Address of principal executive offices)
74012
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(Zip code)
(918) 251-9121
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(Registrant's telephone number, including area code)
Item 7. Financial Statements And Exhibits
(c) Exhibits
99.1 Press Release Announcing Year-End Financial Results
Item 9. Regulation FD Disclosure
On December 30, 2002, ADDvantage Technologies Group, Inc.
issued a press release announcing the financial results for
fiscal year 2002. A copy of the press release is filed as an
exhibit to this report and is incorporated by reference
herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
ADDvantage Technologies Group, Inc.
Dated: December 30, 2002 By: /s/ Kenneth A. Chymiak
Kenneth A. Chymiak, President
FD DISCLOSURE SCHEDULE
ADDvantage Technologies Group, Inc.
Reports Year-End Results
Broken Arrow, Oklahoma, December 30, 2002--ADDvantage
Technologies Group, Inc. (OTCBB:ADDM) today announced its
financial results for the fourth quarter and fiscal year ended
September 30, 2002. During the quarter, the company recorded an
inventory write-down of $1,443,000, which resulted in a reduction
of net income for the fourth quarter and year of $918,000. The
write-down was necessary due to a reduction of market prices on
certain items of used and new inventory. Including the
inventory write-down, ADDvantage Technologies reported a loss of
($.02) per share in the fourth quarter and net income of $.10 for
the year. Due to the delays involved in determining the need
for and amount of the inventory write-down, the company has
obtained an extension of the time within which it is required to
file its annual report on Form 10-KSB. It is expected that this
report will be filed with the Securities and Exchange Commission
on Wednesday, January 8, 2003.
Fourth Quarter Results
Revenues for the fourth quarter ended September 30, 2002
increased $1.4 million, or 24.1%, to $7.2 million compared with
$5.8 million in the same period in 2001. This increase was a
result of the company's new distributorship relationship with
Scientific Atlanta, coupled with the initiative to aggressively
market products and services to the larger multiple system
operators (MSOs).
Because of the inventory write-down, gross margin for the
fourth quarter fell to 26.4% of sales, as compared with 44.7%
from the same period of the previous year.
Net loss applicable to Common Stock for the current quarter
was $420,000, or ($.04) per share as compared to net income of
$201,000, or $.02 per share for the same period last year.
Fiscal Year Results
Revenues for fiscal 2002 increased 11.0% to a record $25.4
million from $22.9 million for fiscal 2001. Net income
applicable to Common Stock for the current year was $951,000, or
$.10 per share, as compared to $1.6 million, or $.16 per share in
the prior period.
"Our record revenues were achieved despite a challenging
business environment in the cable television industry, with
credit remaining tight for the small cable operators and several
bankruptcy filings by our customers." said Ken Chymiak, President
and CEO of ADDvantage Technologies Group. He added, "In this
volatile environment, we continue to out-perform a majority of
our peers by utilizing the synergies from recent acquisitions,
expanding our product coverage, and providing diverse products
and quality services to meet the demands of our customers."
Outlook
Preliminary results for fiscal 2003 are positive, as
revenues for the first two months have increased approximately
$1.7 million, or 40.8%, to $5.4 million compared to the same two-
month period a year ago. In addition, gross profit rose by
approximately $710,000, or 38.5% to $2.7 million compared to the
same two-month period in fiscal 2002.
ADDVANTAGE TECHNOLOGIES GROUP, INC. and its subsidiaries, TULSAT,
LEE CATV Corporation, NCS Industries, Comtech Services, TULSAT -
Texas, and TULSAT-Atlanta comprise an organization involved in
the re-manufacture, repair and sale of previously owned cable
television ("CATV") equipment and the distribution of new and
surplus equipment to CATV operators. For more information,
please visit the corporate web site at www.addvantagetech.com or
contact the company directly at 918-251-9121.
The information in this announcement may include forward-looking
statements. All statements, other statements of historical
facts, which address activities, events or developments that the
Company expects or anticipates will or may occur in the future
are forward-looking statements. These statements are subject to
risks and uncertainties which could cause actual results and
developments to differ materially from these statements. A
complete discussion of these risks and uncertainties is contained
in the Company's reports and documents filed from time to time
with the Securities and Exchange Commission.
ADDvantage Technologies Group, Inc.
Statement of Operations
(Unaudited)
Year Ended Three Months Ended
September 30 September 30
2002 2001 2002 2001
Revenues $25,408,931 $22,884,566 $ 7,153,025 $ 5,762,453
Operating Income $ 3,539,580 $ 4,855,182 ($ 239,987) $ 806,874
Net Income Applicable
to Common Stock $ 951,234 $ 1,611,430 ($ 419,795) $ 200,892
Net Income Per Share
of Common Stock
Basic $ .10 $ .16 ($ .04) $ .02
Diluted $ .10 $ .16 ($ .04) $ .02
Shares Used in Computing
Net Income Per Share:
Basic 9,991,716 9,991,716 9,991,716 9,991,716
Diluted 11,991,716 11,991,716 11,991,716 11,991,716
For further information:
Company Contact:
Ken Chymiak (9l8) 25l-2887
David Chymiak (9l8) 25l-2887
Adam Havig (9l8) 25l-9l2l