National Technical Systems Announces Fiscal 2010 Second Quarter and Six Months Results
- Press Release
- Source: National Technical Systems, Inc.
- On 7:30 am EDT, Monday September 14, 2009
CALABASAS, Calif.--(BUSINESS WIRE)--National Technical Systems, Inc. (Nasdaq: NTSC - News) (NTS) today announced results for its fiscal 2010 second quarter and six months ended July 31, 2009.
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| Symbol | Price | Change |
|---|---|---|
| NTSC | 5.40 | 0.00 |
Total revenues for the second quarter decreased 6.2% to $28,736,000, compared to $30,625,000 for the same period in the prior year. Total revenues for the six months ended July 31, 2009 increased 0.4% to $57,428,000, compared to $57,185,000 for the same period in the prior year. Net income from continuing operations for the quarter decreased 16.4% to $852,000 as compared to $1,019,000 for the same period in the prior year with corresponding diluted earnings per share of $0.09 in the current period compared to $0.11 for the same quarter in the prior year. Net income from continuing operations for the six months ended July 31, 2009 decreased 20.6% to $1,392,000 as compared to $1,754,000 for the same period in the prior year with corresponding diluted earnings per share of $0.15 in the current period compared to $0.18 for the same period in the prior year.
CEO William C. McGinnis commented, “I’m encouraged by our second quarter results, considering the challenging economic environment. New orders booked on average have increased 10% compared to the same period last year. Aerospace and defense orders continue to show strong growth while offset slightly by a moderate decline in orders in the automotive, power products and telecommunications markets. Backlog remains strong with a 6.6% increase compared to the same period last year. Additional revenues from our acquisition of Elliott Laboratories were $2,145,000 for the six months period in the current year. We believe we are increasing our market share by continuing to invest in additional capabilities and improving our internal processes.”
Mr. McGinnis added: “Our current year results include significant costs that will help improve our Company’s competitive advantage and future growth. The addition of new business development talent will increase our capability of providing product design, product development and product prototyping services as part of our overall integrated engineering services offering. Our investment in a new Enterprise Resource Planning (ERP) system will improve our internal processes and efficiencies. I believe we are well positioned to grow our Company both organically and through acquisitions.”
About National Technical Systems, Inc.
National Technical Systems, Inc. is a leading provider of integrated engineering services to the defense, aerospace, telecommunications, automotive and high technology markets. Through a world-wide network of resources, NTS provides full product life-cycle support, offering world class design engineering, compliance, testing, certification, quality registration and program management. For additional information about NTS, visit our website at www.ntscorp.com or call 800-270-2516.
Cautionary Note Regarding Forward-Looking Statements:
The statements in this press release that relate to future plans, events or performance, are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining to customer orders, demand for services and products, development of markets for the company’s services and products and other risks identified in the company’s SEC filings, and in particular its Annual Report on Form 10-K. Actual results, events and performance may differ materially, including the results of the balance of fiscal year 2010. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding National Technical Systems' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
| NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES | |||||||||||||
| Unaudited Condensed Consolidated Statements of Income | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| July 31, | July 31, | ||||||||||||
| 2009 | 2008 | 2009 | 2008 | ||||||||||
| Net revenues | $ | 28,736,000 | $ | 30,625,000 | $ | 57,428,000 | $ | 57,185,000 | |||||
| Cost of sales | 20,600,000 | 21,855,000 | 41,886,000 | 41,663,000 | |||||||||
| Gross profit | 8,136,000 | 8,770,000 | 15,542,000 | 15,522,000 | |||||||||
| Selling, general and administrative expense | 6,440,000 | 6,462,000 | 12,533,000 | 11,635,000 | |||||||||
| Equity (income) loss from non-consolidated subsidiary | 4,000 | (28,000 | ) | 35,000 | 4,000 | ||||||||
| Operating income | 1,692,000 | 2,336,000 | 2,974,000 | 3,883,000 | |||||||||
| Other income (expense): | |||||||||||||
| Interest expense, net | (327,000 | ) | (575,000 | ) | (723,000 | ) | (1,098,000 | ) | |||||
| Other income, net | 204,000 | 34,000 | 135,000 | 235,000 | |||||||||
| Total other expense, net | (123,000 | ) | (541,000 | ) | (588,000 | ) | (863,000 | ) | |||||
| Income before income taxes and noncontrolling interests | 1,569,000 | 1,795,000 | 2,386,000 | 3,020,000 | |||||||||
| Income taxes | 638,000 | 744,000 | 966,000 | 1,239,000 | |||||||||
| Income before noncontrolling interests | 931,000 | 1,051,000 | 1,420,000 | 1,781,000 | |||||||||
| Net income attributable to noncontrolling interests | (79,000 | ) | (32,000 | ) | (28,000 | ) | (27,000 | ) | |||||
| Income from continuing operations | 852,000 | 1,019,000 | 1,392,000 | 1,754,000 | |||||||||
| Income from discontinued operations, net of tax | - | 111,000 | - | 104,000 | |||||||||
| Net income | $ | 852,000 | $ | 1,130,000 | $ | 1,392,000 | $ | 1,858,000 | |||||
| Basic earnings per common share | |||||||||||||
| Income from continuing operations | $ | 0.09 | $ | 0.11 | $ | 0.15 | $ | 0.20 | |||||
| Income from discontinuing operations | - | 0.01 | - | 0.01 | |||||||||
| Net income | $ | 0.09 | $ | 0.12 | $ | 0.15 | $ | 0.21 | |||||
| Diluted earnings per common share | |||||||||||||
| Income from continuing operations | $ | 0.09 | $ | 0.11 | $ | 0.15 | $ | 0.18 | |||||
| Income from discontinuing operations | - | 0.01 | - | 0.01 | |||||||||
| Net income | $ | 0.09 | $ | 0.12 | $ | 0.15 | $ | 0.19 | |||||
| Weighted average common shares outstanding | 9,303,000 | 9,118,000 | 9,301,000 | 8,993,000 | |||||||||
| Dilutive effect of stock options and nonvested shares | 303,000 | 465,000 | 285,000 | 522,000 | |||||||||
| Weighted average common shares outstanding, | |||||||||||||
| assuming dilution | 9,606,000 | 9,583,000 | 9,586,000 | 9,515,000 | |||||||||
Contact:
Financial information:
National Technical Systems
Raffy Lorentzian
Chief Financial Officer
818-591-0776
or
Company information:
National Technical Systems
Aaron Cohen
Vice-Chairman of the Board
818-591-0776
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