Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - TECHPRECISION CORP | f8k111109_techprecision.htm |
EXHIBIT
99.1
|
Company
Contact:
Mr. Richard F. Fitzgerald
Chief Financial Officer
TechPrecision Corporation
Tel: 1-610-246-2116
Email: Fitzgeraldr@techprecision.com
www.techprecision.com
|
Investor Relations
Contact:
CCG
Investor Relations
Mr. Athan Dounis, Account Manager
Phone: 1-646-213-1916
Email: athan.dounis@ccgir.com
Mr. Crocker Coulson, President
Phone: 1-646-213-1915
Email: crocker.coulson@ccgir.com
Website: www.ccgir.com
|
FOR
IMMEDIATE RELEASE
TechPrecision
Corporation Reports Second Quarter Fiscal Year 2010 Results
Westminster, MA – November 11,
2009 – TechPrecision Corporation (OTC Bulletin Board: TPCS)
(“TechPrecision”, or “the Company”), a leading manufacturer of large-scale,
high-precision machined metal fabrications with customers in the alternative
energy, medical, nuclear, defense, aerospace and other commercial industries,
today reported financial results for the second quarter of fiscal year 2010,
period ended September 30, 2009.
Second Quarter of Fiscal
2010 Highlights
|
·
|
Net
sales increased 11.1% to $15.1
million
|
|
·
|
Gross
profit declined 47.2% to $2.6
million
|
|
·
|
Gross
profit margin was 17.5% vs. 36.9% in the prior
year
|
|
·
|
Operating
income was $2.0 million vs. $4.5 million in the prior
year
|
|
·
|
Income
before income taxes was $1.9 million compared to $4.3
million
|
|
·
|
Net
income was $1.3 million vs. $2.5 million in the prior
year
|
|
·
|
Net
income per common share was $0.09 basic and $0.06 diluted, versus $0.18
basic and $0.09 diluted for the second fiscal quarter of the previous
year
|
Second Quarter
Results
For the
three months ended September 30, 2009, sales increased to $15.1 million or
11.1%, from $13.6 million in the second quarter of fiscal
2009. Net sales included $8.9 million of material sales to GT
Solar that were triggered by that customer’s April 2009 cancellation of open
purchase orders. This non-recurring material transfer represents
59.3% of the net sales for the quarter.
Cost of
sales for the quarter ended September 30, 2009 increased by $3.9 million to
$12.5 million, an increase of 45.2%, from $8.6 million for the quarter ended
September 30, 2008. The increase in the cost of sales was principally due to the
impact of the non-recurring transfer of inventory to GT Solar as part of its
April 2009 order cancellation. Gross margin was 17.5% in the second
fiscal quarter of 2010 compared to a gross margin of 36.9% in the second fiscal
quarter of 2009. The gross margin decline was attributable to costs associated
with underutilized capacity, the mix of completed projects, and the lower margin
inventory transfer.
Operating
expenses for the quarter ended September 30, 2009 were $668,876 as compared to
$544,955 for quarter ended September 30, 2008, reflecting an increase in
compensation, legal costs and expenditures related to consulting fees and
insurance.
1
Net
income was $1.3 million or $0.09 per share basic and $0.06 per share diluted for
the quarter ended September 30, 2009 as compared to $2.5 million or $0.18 per
share basic and $0.09 per share diluted for the quarter ended September 30,
2008.
“Our
fiscal second quarter results reflect TechPrecision’s ability to operate
profitably in the face of a continued lower level of production from our largest
customer, GT Solar,” said Mr. Louis Winoski, Interim CEO of TechPrecision
Corporation. “We have optimized our cost structure to ensure we preserve a solid
financial position while we focus on leveraging our core competency as a
manufacturer of high-precision, large-scale metal fabrications and machined
components to win new business in our target industries.”
Financial
Condition
At
September 30, 2009, TechPrecision had working capital of $13.0 million as
compared with working capital of $11.1 million at March 31, 2009, an increase of
$1.9 million. Cash used in operations was $1.4 million for the six
months ended September 30, 2009 as compared to cash provided by operations of
$7.4 million for the six months ended September 30, 2008. The decrease in
operating cash flow was due to the net effect of a decrease in net profits,
decrease in costs incurred on uncompleted contracts and payment of accounts
payable and accrued expenses during the six months ended September 30, 2009. As
of September 30, 2009, the Company had $9.5 million in cash and equivalents.
Stockholder’s equity increased to $11.2 million compared to $10.1 million on
March 31, 2009.
Business
Outlook
Mr.
Winoski added, “We are focused on positioning TechPrecision for long-term,
sustainable growth. Albeit reduced from the high levels of last year,
we continue to maintain orders from our large solar customer. We are
also continuing to manufacturer certain key components for initial units for our
proton beam radiotherapy customer and this business has the potential to expand
provided that testing of the system continues to progress
successfully. We are also encouraged by our improved order flows from
our customers in the nuclear power industry. Furthermore, earlier
this month, we strengthened our sales and marketing team with the recently
announced hiring of William N. Hogenauer to the newly created position of
Director of Business Development. Bill is working with our entire
team on winning additional business from existing customers and attracting new
customers in our target markets of medical, alternative and nuclear energy, and
aerospace and defense. Given the long sales cycle in our business, it
could take several quarters to see the full results of the investments we are
making today; however, we are optimistic that our business will continue to
recover from the lows seen in the first half of fiscal 2010.”
Teleconference
Information
The
Company will hold a conference call at 10:00 a.m. Eastern (U.S.) time on
Thursday, November 12, 2009. To participate in the live conference call, please
dial the following number five to ten minutes prior to the scheduled conference
call time: 800-688-0796. International callers should dial
+1-617-614-4070. When prompted by the operator, mention Conference
Passcode 80080072.
If you
are unable to participate in the call at this time, a replay will be available
for 14 days starting on Thursday, November 12, 2009, at 12:00 p.m. Eastern Time.
To access the replay, dial 888-286-8010 or 617-801-6888, and enter the passcode
65385019.
About TechPrecision
Corporation
TechPrecision
Corporation, through its wholly-owned subsidiary Ranor, Inc., manufactures metal
fabricated and machined precision components and equipment. These products are
used in a variety of markets including: alternative energy, medical, nuclear,
defense, industrial, and aerospace to name a few. TechPrecision’s goal is to be
an end-to-end service provider to its customers by furnishing customized and
integrated “turn-key” solutions for completed products requiring custom
fabrication and machining, assembly, inspection and testing. To learn
more about the Company, please visit the corporate website at http://www.techprecision.com. Information
on the Company’s website or any other website does not constitute a part of this
press release.
2
Safe Harbor
Statement
This
release contains certain "forward-looking statements" relating to the business
of the Company and its subsidiary companies. These forward looking statements
are often identified by the use of forward-looking terminology such as
"believes, expects" or similar expressions. Such forward looking statements
involve known and unknown risks and uncertainties that may cause actual results
to be materially different from those described herein as anticipated, believed,
estimated or expected. Investors should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. The company’s actual results could differ materially from those
anticipated in these forward-looking statements as a result of a variety of
factors, including the Company’s ability to generate business from long-term
contracts rather than individual purchase orders, its dependence upon a limited
number of customers, its ability to successfully bid on projects, and other
risks discussed in the company’s periodic reports that are filed with the
Securities and Exchange Commission and available on its website (www.sec.gov).
All forward-looking statements attributable to the Company or to persons acting
on its behalf are expressly qualified in their entirety by these factors other
than as required under the securities laws. The Company does not assume a duty
to update these forward-looking statements.
--
Financial tables follow --
3
4
5
6