ETC Announces Fiscal 2018 First Quarter Results
(Thomson Reuters ONE) -
For Immediate Release
Financial Statement Highlights from the Fiscal 2018 First Quarter:
* Gross profit increased 22.5% to $3.6 million
* Net income attributable to ETC increased $0.6 million
SOUTHAMPTON, PA, USA, July 10, 2017 - Environmental Tectonics Corporation (OTC
Pink: ETCC) ("ETC" or the "Company") today reported its financial results for
the thirteen week period ended May 26, 2017 (the "2018 first quarter").
Robert L. Laurent, Jr., ETC's Chief Executive Officer and President stated, "We
are pleased with the continued improvement in gross profit margins, the largest
contributing factor in making this quarter the third consecutive quarter of net
income attributable to ETC and a solid start to fiscal 2018."
Fiscal 2018 First Quarter Results of Operations
Net Income (Loss) Attributable to ETC
Net income attributable to ETC was $0.1 million, or $0.00 diluted earnings per
share, in the 2018 first quarter, compared to a net loss attributable to ETC of
$0.5 million during the 2017 first quarter, equating to $0.04 diluted loss per
share. The $0.6 million variance is due to the combined effect of a $0.7
million increase in gross profit, a $0.2 million favorable variance in other
(income) expense, net, and a $41 thousand decrease in interest expense, offset,
in part, by a $0.4 million increase in operating expenses.
Net Sales
Net sales in the 2018 first quarter were $11.5 million, an increase of $0.8
million, or 7.1%, compared to 2017 first quarter net sales of $10.7 million.
The increase reflects higher sales of Environmental Testing and Simulation
Systems within our CIS segment and higher sales related to ATS products within
our Aerospace segment to Domestic customers, offset, in part, by a decrease in
sales related to ATS products within our Aerospace segment to International
customers and an overall decrease in sales of monoplace chambers within the
Hyperbaric Chambers business unit of our CIS segment.
Gross Profit
Gross profit for the 2018 first quarter was $3.6 million compared to $2.9
million in the 2017 first quarter, an increase of $0.7 million, or 22.5%. The
increase in gross profit was due to both higher net sales and a higher blended
gross profit margin as a percentage of net sales, which increased to 31.3% for
the 2018 first quarter compared to 27.4% for the 2017 first quarter. The
increase in gross profit margin as a percentage of net sales was due to the
combination of a reduction in the amount of additional work required on three
contracts and a higher concentration of net sales from more off-the-shelf type
products requiring less initial design and engineering work.
Operating Expenses
Operating expenses, including sales and marketing, general and administrative,
and research and development, for the 2018 first quarter were $3.3 million, an
increase of $0.4 million, or 11.9%, compared to $2.9 million for the 2017 first
quarter. The most significant component of which was the non-cash expense
associated with the issuance of Common Stock awards.
Other (Income) Expense, Net
Other income, net for the 2018 first quarter was $21 thousand compared to $0.2
million of other expense, net in the 2017 first quarter, a variance of $0.2
million due to the combination of a net realized foreign currency exchange gain
in the 2018 first quarter compared to a net realized foreign currency exchange
loss in the 2017 first quarter and a decrease in letter of credit fees.
Cash Flows from Operating, Investing, and Financing Activities
During the 2018 first quarter, as a result of an increase in costs and estimated
earnings in excess of billings on uncompleted long-term contracts and an
increase in accounts receivable, offset, in part by an increase in billings in
excess of costs and estimated earnings on uncompleted long-term contracts and an
increase in accounts payable, the Company used $1.4 million of cash for
operating activities compared to $0.2 million of cash provided by operating
activities during the 2017 first quarter. Under percentage-of-completion
("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 $0.2 million in both the 2018 first quarter and the 2017 first
quarter.
The Company's financing activities provided $1.6 million of cash in the 2018
first quarter from borrowings under the Company's various lines of credit. In
the 2017 first quarter, the Company's financing activities used $0.3 million of
cash on repayments under the Company's various lines of credit, 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, services, 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 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) ATS products; (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. 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 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, which we are winding
down, functioned 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 words 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
------------------------ ------------------
26-May-17 27-May-16 $ %
----------- ------------ ---------- -------
Net sales $ 11,489 $ 10,723 $ 766 7.1
Cost of goods sold 7,888 7,783 105 1.3
----------- ------------ ---------- -------
Gross profit 3,601 2,940 661 22.5
Gross profit margin % 31.3% 27.4% 3.9% 14.2%
Operating expenses 3,285 2,935 350 11.9
----------- ------------ ---------- -------
Operating income 316 5 311 6220.0
Operating margin % 2.8% 0.0% 2.8%
Interest expense, net 197 238 (41) -17.2
Other (income) expense, net (21) 222 (243)
----------- ------------ ---------- -------
Income (loss) before income taxes 140 (455) 595
Pre-tax margin % 1.2% -4.2% 5.4%
Income tax provision 18 24 (6) -25.0
----------- ------------ ---------- -------
Net income (loss) 122 (479) 601
(Income) loss attributable to non-
controlling interest (1) 1 (2)
----------- ------------ ---------- -------
Net income (loss) attributable to ETC 121 (478) 599
Preferred Stock dividends (121) (121) - 0.0
----------- ------------ ---------- -------
Income (loss) attributable to common
and
participating shareholders $ - $ (599) $ 599
----------- ------------ ---------- -------
Per share information:
Basic earnings (loss) per common and
participating share:
Distributed earnings per share:
Common $ - $ - $ -
----------- ------------ ---------- -------
Preferred $ 0.02 $ 0.02 $ - 0.0
----------- ------------ ---------- -------
Undistributed earnings (loss) per
share:
Common $ - $ (0.04) $ 0.04
----------- ------------ ---------- -------
Preferred $ - $ (0.04) $ 0.04
----------- ------------ ---------- -------
Diluted earnings (loss) per share $ - $ (0.04) $ 0.04
----------- ------------ ---------- -------
Total basic weighted average common
and
participating shares 15,427 15,248
Total diluted weighted average shares 15,427 15,248
Table B
ENVIRONMENTAL TECTONICS CORPORATION
OTHER SELECTED FINANCIAL HIGHLIGHTS
(amounts in thousands)
Thirteen weeks ended
-------------------------------
26-May-17 27-May-16
-------------- --------------
EBITDA * $ 712 $ 149
As of
-------------------------------
26-May-17 24-Feb-17
-------------- --------------
Working capital $ 15,229 $ 13,242
Total shareholders' equity $ 8,055 $ 7,976
* In addition to disclosing financial results that are determined in accordance
with accounting principles generally accepted in the United States of America
("U.S. GAAP"), we also disclose Earnings Before Income Taxes, Depreciation, and
Amortization ("EBITDA"). The presentation of a non-U.S. GAAP financial measure
such as EBITDA is intended to enhance the usefulness of financial information by
providing a measure that management uses internally to evaluate our expenses and
operating performance and factors into several of our financial covenant
calculations.
A reader may find this item important in evaluating our performance. Management
compensates for the limitations of using non-U.S. GAAP financial measures by
using them only to supplement our U.S. GAAP results to provide a more complete
understanding of the factors and trends affecting our business.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ETC via GlobeNewswire
Datum: 10.07.2017 - 14:46 Uhr
Sprache: Deutsch
News-ID 551640
Anzahl Zeichen: 16964
contact information:
Town:
Southampton
Kategorie:
Business News
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