IEC Announces Solid Third Quarter Results for Fiscal 2011
NEWARK, NY-- IEC Electronics Corp. (AMEX: IEC - News)
- Q3 revenue increased by 32% compared to Q3 2010
- Q3 operating profit increased 15.7% compared to Q3 2010
- Continued progress integrating Southern California Braiding
IEC Electronics Corp. (AMEX: IEC - News) announced its results for the third quarter of fiscal 2011 ended July 1, 2011.
For the quarter ended July 1, 2011 the Company reported revenue of $34,626,000 for the quarter, operating income of $2,623,000 (7.6% of sales) and net income of $1,333,000 or $0.13 per share. This compares to revenue of $26,095,000, operating income of $2,268,000 (8.7% of sales) and net income of $1,238,000 or $0.13 per share for the quarter ended June 25, 2010.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of fiscal 2011 was $3,483,000 or $0.35 per share, compared to $2,555,000 or $0.27 per share for the same quarter last year.
IEC reported revenue of $98,355,000, operating income of $7,909,000 and net income of $4,129,000 or $0.42 per share for the first nine months of 2011. This compares to revenue of $69,387,000, operating income of $5,565,000 and net income of $3,027,000 or $0.32 per share for the first nine months of fiscal 2010.
EBITDA for the nine month period ended July 1, 2011 totaled $9,925,000 or $1.00 per share, compared to $6,067,000 or $0.63 per share for the same period last year.
"This was a solid quarter for IEC, but not without its challenges. On the positive side our organic growth was 14% as compared to the same period in fiscal 2010, which is in line with our outlook. Our backlog continues to expand in the face of some weakening broad macro-economic news both domestically and from the Far East. Southern California Braiding recently received a $5 million order from one of its military customers, and we continue to work on a number of exciting new programs, all of which will impact fiscal 2012," said W. Barry Gilbert, Chairman and Chief Executive Officer.
Mr. Gilbert continued, "Nonetheless, the revenue growth and gross margin were somewhat disappointing. Both the growth and the margin were negatively impacted by a delay in $3 million of revenue caused by unplanned downtime in certain equipment, the delay in finalizing the federal military budget, and an unusual number of customer change orders. In addition, we experienced a shift in our product mix. The product mix which was very favorable last quarter was equally unfavorable this quarter and impacted our gross profit.
"The long term view for Southern California Braiding's future is bright. Its current performance, however, has been choppy as we work our way through integration issues such as implementing new systems and expanding communication and business process tools. Nothing we have observed has diminished our enthusiasm about this acquisition, if anything we are more excited. All the programs we were planning have been approved in the defense appropriation budget and we are likely to receive additional awards.
"We strengthened our balance sheet. However, we fell short of our goal of reducing our bank debt. We believe this is a timing issue and remain confident that our bank debt will be reduced on or ahead of our internal schedule.
"We believe that we have met the challenges before us and remain most optimistic about the Company's future prospects. We are continually building a stronger company with immense capability for our customers, our employees and our shareholders."
IEC will host a conference call with investors at 10:00 a.m. Eastern time today, Monday, August 8, 2011 to discuss its financial results for the quarter ended July 1, 2011. The conference call may be accessed in the U.S. and Canada by dialing toll-free 1-877-407-9210. International callers may access the call by dialing 1-201-689-8049. To access a live webcast of the conference call, log onto the IEC website at http://www.iec-electronics.com or http://www.InvestorCalendar.com.
A replay of the teleconference will be available for 30 days after the call and may be accessed domestically by dialing 1-877-660-6853 and international callers may dial 1-201-612-7415. Callers must enter account number 286 and conference number 376007.
To access the live webcast, log onto the IEC website at http://www.iec-electronics.com. The webcast can also be accessed at http://www.InvestorCalendar.com. An online replay will be available shortly after the call.
About IEC Electronics
IEC Electronics Corporation is a premier provider of electronic manufacturing services ("EMS") to advanced technology companies primarily in the military and aerospace, medical, industrial and computing sectors. The Company specializes in the custom manufacture of high reliability, complex circuit cards, system level assemblies, a wide array of custom cable and wire harness assemblies, and precision sheet metal products. As a full service EMS provider, IEC is a world-class ISO 9001:2008, AS9100 and ISO13485 certified company. The AS9100 certification enables IEC to serve the military and commercial aerospace markets. The ISO13485 certification supports the quality requirements of medical device markets. The Company is also AC7120 Nadcap accredited for electronics manufacturing to support the most stringent quality requirements of the aerospace industry, as well as ITAR registered and NSA approved under the COMSEC standard. IEC Electronics is headquartered in Newark, NY (outside of Rochester) and also has operations in Victor, NY, Rochester, NY, Albuquerque, NM and Bell Gardens, CA. Additional information about IEC can be found on its web site at www.iec-electronics.com.
The foregoing, including any discussion regarding the Company's future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the Company, changes in customer requirements and in the volume of sales to principal customers, competition and technological change, the ability of the Company to control manufacturing and operating costs, the ability of the Company to develop and maintain satisfactory relationships with vendors, and the ability of the Company to efficiently integrate acquired companies into its business. The Company's actual results of operations may differ significantly from those contemplated by any forward-looking statements as a result of these and other factors, including factors set forth in the Company's 2010 Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.
IEC ELECTRONICS CORP - CONSOLIDATED
BALANCE SHEET
JUL 01, 2011 AND SEP 30, 2010
(In Thousands)
JUL 01, 2011 SEP 30, 2010
ASSETS
CURRENT ASSETS
Cash 0 0
Accounts Receivable 20,303 16,315
Inventories 17,481 12,068
Deferred Income Taxes 3,940 3,359
Other Current Assets 356 234
------------ ------------
Total Current Assets 42,080 31,976
------------ ------------
NET FIXED ASSETS 18,195 13,098
NON-CURRENT ASSETS
Goodwill 13,810 58
Intangible Assets 6,077 331
Deferred Income Taxes 7,430 10,113
Other Non-Current Assets 192 106
------------ ------------
TOTAL ASSETS 87,784 55,682
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Borrowings 6,939 2,899
Accounts Payable 7,766 8,145
Accrued Payroll and Related Taxes 2,212 2,279
Other Accrued Expenses 1,155 941
Other Current Liabilities 406 0
------------ ------------
Total Current Liabilities 18,478 14,264
------------ ------------
LONG TERM DEBT 38,438 15,999
------------ ------------
TOTAL LIABILITIES 56,916 30,263
SHAREHOLDER'S EQUITY
Authorized - 50,000,000 shares
Issued - 10,811,188, Outstanding - 9,795,730
Common stock, par value $.01 per share 108 101
Treasury Shares at Cost - 1,015,458 shares (1,435) (1,413)
Additional Paid-in Capital 42,473 41,138
Retained Earnings (10,278) (14,407)
------------ ------------
TOTAL SHAREHOLDER'S EQUITY 30,868 25,419
------------ ------------
TOTAL LIABILITIES & EQUITY 87,784 55,682
============ ============
IEC ELECTRONICS CORP - CONSOLIDATED
STATEMENT OF INCOME
FOR QUARTER END & YTD JUL 01, 2011 AND JUN 25, 2010
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
JUL 01, 2011 JUN 25, 2010 JUL 01, 2011 JUN 25, 2010
Sales 34,626 26,095 98,355 69,387
Cost of Sales 28,470 21,439 80,672 57,900
------------ ------------ ------------ ------------
Gross Profit 6,156 4,656 17,683 11,487
Less: Operating Expenses
Selling & G&A 3,533 2,388 9,774 5,922
Other 0 0 0 0
------------ ------------ ------------ ------------
Total Operating Expenses 3,533 2,388 9,774 5,922
------------ ------------ ------------ ------------
Operating Profit 2,623 2,268 7,909 5,565
Interest and Financing
Expense 491 238 1,214 594
Other Expense/(Income) 4 17 134 205
------------ ------------ ------------ ------------
Net Income before Income
Taxes 2,128 2,013 6,561 4,766
Provision for
/(benefit from)Income
Tax 795 775 2,432 1,739
------------ ------------ ------------ ------------
Net Income 1,333 1,238 4,129 3,027
============ ============ ============ ============
Basic Earnings Per Share $ 0.14 $ 0.14 $ 0.43 $ 0.34
Diluted Earnings Per
Share $ 0.13 $ 0.13 $ 0.42 $ 0.32
Basic Shares 9,776,888 9,055,280 9,524,874 8,955,212
Diluted Shares 10,021,932 9,629,326 9,932,446 9,606,748
IEC ELECTRONICS CORP - CONSOLIDATED
RECONCILIATION OF NET INCOME TO EBITDA
FOR QUARTER END & YTD JUL 01, 2011 AND JUN 25, 2010
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
JUL 01, 2011 JUN 25, 2010 JUL 01, 2011 JUN 25, 2010
Net Income 1,333 1,238 4,129 3,027
Provision for /(benefit
from) Income Tax 795 775 2,432 1,739
Depreciation and
Amortization Expense 864 304 2,150 707
Net Interest Expense /
(Income) 491 238 1,214 594
------------ ------------ ------------ ------------
EBITDA 3,483 2,555 9,925 6,067
------------ ------------ ------------ ------------
Basic Earnings Per Share $ 0.36 $ 0.28 $ 1.04 $ 0.68
Diluted Earnings Per
Share $ 0.35 $ 0.27 $ 1.00 $ 0.63
Basic Shares 9,776,888 9,055,280 9,524,874 8,955,212
Diluted Shares 10,021,932 9,629,326 9,932,446 9,606,748
|
