LaBarge, Inc. achieves strong results for Fiscal 2008 Q1

Net sales grow 19% , Net earnings increase 5%, bookings set new quarterly record and backlog up 19% to new high

LaBarge, Inc. (AMEX: LB) reported financial results for the fiscal 2008 first quarter ended September 30, 2007.

Fiscal 2008 first-quarter net sales rose 19 percent to $59,190,000 from $49,900,000 in the fiscal 2007 first quarter. Net earnings in the fiscal 2008 first quarter were $2,520,000, or $0.16 per diluted share, up 5 percent from $2,411,000, or $0.15 per diluted share, in the first quarter of fiscal 2007.

Gross margin in the fiscal 2008 first quarter was 19.2 percent, compared with 18.0 percent in the fiscal 2007 fourth quarter and 21.4 percent in the fiscal 2007 first quarter. Operating income as a percentage of sales in the fiscal 2008 first quarter was 7.5 percent, compared with 7.6 percent in the fiscal 2007 fourth quarter and 9.4 percent in the fiscal 2007 first quarter.

Selling, general and administrative expense (SG&A) as a percentage of sales was 12 percent in both the fiscal 2008 and 2007 first quarters. In actual dollars, fiscal 2008 first-quarter SG&A increased 16 percent from the previous first quarter, in contrast to the 19 percent growth in sales volume. The increase was primarily attributable to higher compensation costs and professional services expenses.

Interest expense in the fiscal 2008 first quarter was $427,000, compared with $651,000 in the fiscal 2007 first quarter, reflecting lower average debt levels during the 2008 period.

Net cash provided by operating activities was $5,086,000 in the fiscal 2008 first quarter, compared with $1,042,000 in the fiscal 2007 fourth quarter and $10,360,000 in the 2007 first quarter. Total debt at September 30, 2007 was $23,457,000, down 11 percent from $26,256,000 at July 1, 2007, and down 31 percent from $33,809,000 at October 1, 2006. Stockholders' equity at September 30, 2007 was $79,623,000, up 4 percent from $76,410,000 at July 1, 2007, and up 18 percent from $67,635,000 at October 1, 2006.

Bookings of new business were extremely strong during the fiscal 2008 first quarter, exceeding $100 million, a new quarterly booking record for the Company. The largest contributions to first-quarter bookings came from the defense, natural resources and industrial market sectors. Backlog at September 30, 2007 reached a new high of $245,535,000, up 19 percent from $206,209,000 at July 1, 2007, and up 16 percent from $211,770,000 at October 1, 2006.