ETC Announces Fiscal 2016 First Quarter Results
(Thomson Reuters ONE) -
For Immediate Release
SOUTHAMPTON, PA, USA, July 13, 2015 - Environmental Tectonics Corporation (OTC
Pink: ETCC) ("ETC" or the "Company") today reported its financial results for
the thirteen week period ended May 29, 2015 (the "2016 first quarter").
Fiscal 2016 First Quarter Results of Operations
Sales Backlog
The 2016 first quarter results of operations only include a small percentage of
the recently awarded International contracts totaling $45.4 million as our sales
backlog as of May 29, 2015, for work to be performed and revenue to be
recognized under written agreements after such date, was $66.2 million compared
to $32.5 million as of February 28, 2015.
Net Loss Attributable to ETC
Net loss attributable to ETC was $240 thousand in the 2016 first quarter
compared to $197 thousand during the 2015 first quarter, both of which equated
to $0.02 diluted loss per share. The $43 thousand variance reflects a decrease
in income before income taxes of $73 thousand due to a $266 thousand increase in
operating expenses and a $71 thousand increase in interest expense, offset in
part, by a $228 thousand increase in gross profit that was achieved despite a
10.7% decrease in net sales and a $36 thousand decrease in other expense. The
$73 thousand decrease in income before income taxes was offset, in part, by a
$28 thousand increase in the income tax benefit recorded in the 2016 first
quarter compared to the 2015 first quarter and a $2 thousand decrease in income
attributable to non-controlling interest.
Net Sales
Net sales in the 2016 first quarter were $9.5 million, a decrease of $1.2
million, or 10.7%, compared to 2015 first quarter net sales of $10.7 million.
The reduction reflects decreased Sterilizers and Environmental sales to Domestic
customers, offset in part, by increased ATS sales to International customers.
Given the current progress made on U.S. Government contracts in the Company's
sales backlog, coupled with significant fiscal 2015 International bookings and
the recent award of multiple International contracts totaling $45.4 million, the
Company anticipates that although sales to the U.S. Government will remain
steady, the concentration of sales to the U.S. Government will continue to
lessen in fiscal 2016.
Gross Profit
Gross profit for the 2016 first quarter was $3.0 million compared to $2.8
million in the 2015 first quarter, an increase of $0.2 million, or 8.1%. The
increase in gross profit was achieved despite a 10.7% decrease in net sales due
primarily to the combination of a reduction in the amount of additional work
required on several contracts and a higher concentration of net sales from more
off-the-shelf type products. Gross profit margin as a percentage of net sales
increased to 32.0% for the 2016 first quarter compared to 26.4% for the 2015
first quarter.
Operating Expenses
Operating expenses, including sales and marketing, general and administrative,
and research and development, for the 2016 first quarter were $3.2 million, an
increase of $0.3 million, or 9.1%, compared to $2.9 million for the 2015 first
quarter. The increase is due primarily to an increase in commissions expense
directly related to a higher concentration of ATS sales to International
customers.
Interest Expense, Net
Interest expense, net, for the 2016 first quarter was $220 thousand compared to
$149 thousand in the 2015 first quarter, an increase of $71 thousand, or 47.7%,
due to the combination of a higher level of bank borrowing and an increased
interest rate.
Cash Flows from Operating, Investing, and Financing Activities
During the 2016 first quarter, as a result of an increase in billings in excess
of costs and estimated earnings on uncompleted long-term percentage of
completion ("POC") contracts, offset in part, by an increase in accounts
receivable and costs and estimated earnings in excess of billings on uncompleted
long-term POC contracts, the Company generated $0.2 million of cash from
operating activities compared to $5.1 million of cash used in operating
activities during the 2015 first quarter. Under POC revenue recognition, these
accounts represent the timing differences of spending on production activities
versus the billing and collecting of customer payments.
Cash used for investing activities primarily relates to funds used for capital
expenditures of equipment and software development. The Company's investing
activities used $0.4 million in both the 2016 first quarter and the 2015 first
quarter.
The Company's financing activities used $0.1 million of cash in the 2016 first
quarter on repayments under the Company's various lines of credit. In the 2015
first quarter, the Company's financing activities used $4.8 million of cash,
which primarily reflected repayments under the Company's various lines of credit
and payments on the Term Loan, and was offset, in part, by a decrease in
restricted cash.
About ETC
ETC was incorporated in 1969 in Pennsylvania. For over four decades, we have
provided our customers with products, service, and support. Innovation,
continuous technological improvement and enhancement, and product quality are
core values that are critical to our success. We are a significant supplier and
innovator in the following product areas: (i) software driven products and
services used to create and monitor the physiological effects of flight,
including high performance jet tactical flight simulation, upset recovery and
spatial disorientation, and both suborbital and orbital commercial human
spaceflight; collectively, Aircrew Training Systems ("ATS"); (ii) altitude
(hypobaric) chambers; (iii) hyperbaric chambers for multiple persons (multiplace
chambers); (iv) Advanced Disaster Management Simulators ("ADMS"); (v) steam and
gas (ethylene oxide) sterilizers; (vi) environmental testing and simulation
devices; and (vii) hyperbaric (100% oxygen) chambers for one person (monoplace
chambers). We operate in two primary business segments, Aerospace Solutions
("Aerospace") and Commercial/Industrial Systems ("CIS").
Aerospace encompasses the design, manufacture, and sale of: (i) Aircrew Training
Systems; (ii) altitude (hypobaric) chambers; (iii) hyperbaric chambers for
multiple persons (multiplace chambers); and (iv) ADMS, as well as integrated
logistics support ("ILS") for customers who purchase these products or similar
products manufactured by other parties. These products and services provide
customers with an offering of comprehensive solutions for improved readiness and
reduced operational costs. Sales of our Aerospace products are made principally
to U.S. and foreign government agencies and to civil aviation organizations. We
offer integrated Aircrew Training Systems to commercial, governmental, and
military defense agencies, and training devices, including altitude (hypobaric)
and multiplace chambers ("Chambers"), to governmental and military defense
agencies and civil aviation organizations both in the United States and
internationally. We sell our ADMS line of products to state and local
governments, fire and emergency training schools, and airports. We also provide
integrated logistics support for customers who purchase these products or
similar products manufactured by other parties.
CIS encompasses the design, manufacture, and sale of: (i) steam and gas
(ethylene oxide) sterilizers; (ii) environmental testing and simulation devices;
and (iii) hyperbaric (100% oxygen) chambers for one person (monoplace chambers),
as well as parts and service support for customers who purchase these products
or similar products manufactured by other parties. Sales of our CIS products
are made principally to the healthcare, pharmaceutical, and automotive
industries. We sell our sterilizers to pharmaceutical and medical device
manufacturers. We sell our environmental testing and simulation devices
primarily to commercial automobile and heating, ventilation, and air
conditioning ("HVAC") manufacturers. We sell our hyperbaric products (primarily
"monoplace" chambers) to hospitals and wound care clinics. We also provide
upgrade, maintenance, and repair services for our products and similar products
manufactured by other parties.
We presently have two operating subsidiaries. ETC-PZL Aerospace Industries Sp.
z o.o. ("ETC-PZL"), our 95%-owned subsidiary in Warsaw, Poland, manufactures
certain simulators and provides software to support products manufactured
domestically within our Aerospace segment. Environmental Tectonics Corporation
(Europe) Limited ("ETC-Europe"), our 99%-owned subsidiary, functions as a sales
office in the United Kingdom.
ETC's unique ability to offer complete systems, designed and produced to high
technical standards, sets it apart from its competition. ETC is headquartered
in Southampton, PA. For more information about ETC, visit
http://www.etcusa.com/.
______________
Forward-looking Statements
This news release contains forward-looking statements, which are based on
management's expectations and are subject to uncertainties and changes in
circumstances. Words and expressions reflecting something other than historical
fact are intended to identify forward-looking statements, and these statements
may include terminology such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "future", "predict", "potential", "intend",
or "continue", and similar expressions. We base our forward-looking statements
on our current expectations and projections about future events or future
financial performance. Our forward-looking statements are subject to known and
unknown risks, uncertainties and assumptions about ETC and its subsidiaries that
may cause actual results to be materially different from any future results
implied by these forward-looking statements. We caution you not to place undue
reliance on these forward-looking statements.
Contact: Mark Prudenti, CFO
Phone: (215) 355-9100 x1531
E-mail: mprudenti(at)etcusa.com
###
- Financial Tables Follow -
Table A
ENVIRONMENTAL TECTONICS CORPORATION
SUMMARY TABLE OF RESULTS
(in thousands, except per share information)
Thirteen weeks ended Variance
--------------------------- --------------------
29-May-15 30-May-14 $ %
------------- ------------- ------------ -------
Net sales $ 9,539 $ 10,685 $ (1,146) -10.7
Cost of goods sold 6,489 7,863 (1,374) -17.5
------------- ------------- ------------ -------
Gross profit 3,050 2,822 228 8.1
Gross profit margin % 32.0% 26.4% 5.6% 21.2%
Operating expenses 3,198 2,932 266 9.1
------------- ------------- ------------ -------
Operating loss (148) (110) (38) -34.5
Operating margin % -1.6% -1.0% -0.6% -60.0%
Interest expense, net 220 149 71 47.7
Other expense, net 31 67 (36) -53.7
------------- ------------- ------------ -------
Loss before income taxes (399) (326) (73) -22.4
Pre-tax margin % -4.2% -3.1% -1.1% -35.5%
Income tax benefit (160) (132) (28) 21.2
------------- ------------- ------------ -------
Net loss (239) (194) (45) -23.2
Income attributable to non-
controlling interest (1) (3) 2 -66.7
------------- ------------- ------------ -------
Net loss attributable to ETC (240) (197) (43) -21.8
Preferred Stock dividends (121) (121) - 0.0
------------- ------------- ------------ -------
Loss attributable to common
and
participating shareholders $ (361) $ (318) $ (43) -13.5
------------- ------------- ------------ -------
Per share information:
Basic earnings (loss) per
common and
participating share:
Distributed earnings per
share:
Common $ - $ - $ -
------------- ------------- ------------ -------
Preferred $ 0.02 $ 0.02 $ - 0.0
------------- ------------- ------------ -------
Undistributed loss per
share:
Common $ (0.02) $ (0.02) $ - 0.0
------------- ------------- ------------ -------
Preferred $ (0.02) $ (0.02) $ - 0.0
------------- ------------- ------------ -------
Diluted loss per share $ (0.02) $ (0.02) $ - 0.0
------------- ------------- ------------ -------
Total basic weighted average
common and
participating shares 15,248 15,248
Total diluted weighted average
shares 15,318 15,511
Table B
ENVIRONMENTAL TECTONICS CORPORATION
OTHER SELECTED FINANCIAL HIGHLIGHTS
(amounts in thousands)
Thirteen weeks ended
-----------------------------
29-May-15 30-May-14
------------- -------------
EBITDA $ 278 $ 308
As of
-----------------------------
29-May-15 28-Feb-14
------------- -------------
Working capital $ 8,979 $ 8,029
Total shareholders' equity $ 19,916 $ 20,253
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ETC via GlobeNewswire
[HUG#1938081]
Datum: 13.07.2015 - 22:17 Uhr
Sprache: Deutsch
News-ID 406465
Anzahl Zeichen: 17524
contact information:
Town:
Southampton
Kategorie:
Business News
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