Attached files
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| 8-K - TEL-INSTRUMENT ELECTRONICS CORP 8K - TEL INSTRUMENT ELECTRONICS CORP | a50346104.htm |
Exhibit 99.1
Tel-Instrument Electronics Corp Announces FY 2012 Results
CARLSTADT, N.J.--(BUSINESS WIRE)--July 18, 2012--Tel-Instrument Electronics Corp (“TIC”) (NYSE MKT: TIK) announced results for its fourth quarter and fiscal year ended March 31, 2012. The Company reported an increase in both sales and net income.
Compared to the previous fiscal year, sales for the year increased $2,968,078 (21.9%) to $16,508,678 from $13,540,600 and income from operations increased $512,237 (212.8%) to $676,008 from $163,771. Net income for the year increased to $71,016, or $0.03 per share, compared to a net loss of $127,052, or $0.05 per share, in the previous year. Fiscal year 2012 net income includes a higher tax provision by $256,644 due to a change in the New Jersey State tax law. The change in the New Jersey State tax law did not cause the Company to lose any future benefit, and the result is such that the Company will have lower New Jersey State tax expenses in the future.
Compared to the previous year, sales for the fourth quarter increased $1,402,713 (37.2%) to $5,170,878 from $3,768,165 and income from operations decreased $31,787 (11.2%) to $237,210 from $268,997. Net income decreased to a loss of $48,936, or $0.02 per share, compared to net income of $207,342, or $0.08 per share, in the previous year.
As previously reported, TIC is forecasting sharply reduced revenues and a significant loss in the first quarter of fiscal 2013 ended June 30, 2012 due mainly to a temporary hold in CRAFT 708 production shipments to correct issues discovered in prior CRAFT 719 deliveries and to incorporate the final AIMS approved software configuration which includes several product enhancements. TIC also continues to experience delays in securing a production release on the TS-4530A program from the Army. The Company is working closely with the Navy and the Army to secure production releases on the CRAFT and TS-4530A programs and is optimistic that this will occur within the short-term.
TIC is still predicting significant revenue and profitability growth for the fiscal year ending March 31, 2013.
Jeff O’Hara, President and Chief Executive Officer of Tel stated, “While we continue to be optimistic about our future, we are disappointed about the delay in achieving the growth we have been anticipating over the last year. Our backlog remains strong at approximately $39 million, and as we get through this short-term delay in shipments, we expect to begin to achieve improved results.”
We encourage everyone to read our full results of operations contained in our Form 10-K filed on July 16, 2012 at sec.gov.
About Tel-Instrument Electronics Corp
Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.
This press release includes statements that are not historical in nature and may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company’s outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company’s previous filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
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TEL-INSTRUMENT ELECTRONICS CORP |
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Consolidated Balance Sheets |
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| ASSETS |
March 31, 2012 |
March 31, 2011 |
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| Current assets: | ||||||||
| Cash | $ | 413,195 | $ | 123,955 | ||||
| Accounts receivable, net of allowance for doubtful accounts | ||||||||
| of $35,470 and $36,670, respectively | 1,694,636 | 2,585,619 | ||||||
| Unbilled government receivables | 1,780,381 | 1,466,623 | ||||||
| Inventories, net | 5,023,975 | 2,970,378 | ||||||
| Prepaid expenses and other current assets | 220,255 | 70,970 | ||||||
| Deferred debt expense | 108,321 | 108,321 | ||||||
| Deferred income tax asset | 1,288,631 | 1,131,175 | ||||||
| Total current assets | 10,529,394 | 8,457,041 | ||||||
| Equipment and leasehold improvements, net | 706,870 | 330,694 | ||||||
| Deferred debt expense – long-term | 264,784 | 373,105 | ||||||
| Deferred income tax asset – non-current | 948,489 | 1,461,664 | ||||||
| Other assets | 56,872 | 35,235 | ||||||
| Total assets | $ | 12,506,409 | $ | 10,657,739 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 542,382 | $ | 282,798 | ||||
| Capital lease obligations | 64,675 | 15,685 | ||||||
| Accounts payable | 2,850,432 | 1,517,326 | ||||||
| Accounts payable – related party | - | 81,353 | ||||||
| Progress billings | - | 424,202 | ||||||
| Deferred revenues – current portion | 34,767 | 28,382 | ||||||
| Accrued expenses - vacation pay, payroll and payroll withholdings | 440,116 | 445,738 | ||||||
| Accrued expenses - related parties | 68,777 | 58,372 | ||||||
| Accrued expenses – other | 2,006,134 | 1,228,662 | ||||||
| Total current liabilities | 6,007,283 | 4,082,518 | ||||||
| Subordinated notes payable – related parties | 250,000 | 250,000 | ||||||
| Capital lease obligations – long-term | 149,582 | - | ||||||
| Long-term debt, net of debt discount | 1,490,302 | 1,979,114 | ||||||
| Warrant liability | 355,290 | 366,137 | ||||||
| Deferred revenues – long-term | 4,637 | 15,381 | ||||||
| Total liabilities | 8,257,094 | 6,693,150 | ||||||
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Commitments and contingencies
Stockholders’ equity |
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| Common stock, 4,000,000 shares authorized, par value $.10 per | ||||||||
| share, 2,684,215 and 2,646,215 shares issued and outstanding, | ||||||||
| respectively | 268,421 | 264,621 | ||||||
| Additional paid-in capital | 5,921,441 | 5,711,531 | ||||||
| Accumulated deficit | (1,940,547 | ) | (2,011,563 | ) | ||||
| Total stockholders’ equity | 4,249,315 | 3,964,589 | ||||||
| Total liabilities and stockholders’ equity | $ | 12,506,409 | $ | 10,657,739 | ||||
| TEL-INSTRUMENT ELECTRONICS CORP | ||||||||||||||||
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Consolidated Statements of Operations |
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For the quarters ended |
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For the years ended March 31, |
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2012 |
2011 |
2012 |
2011 |
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| Net sales | $ | 5,170,878 | $ | 3,768,165 | $ | 16,508,678 | $ | 13,540,600 | ||||||||
| Cost of sales | 3,520,673 | 1,863,961 | 10,068,236 | 7,218,765 | ||||||||||||
| Gross margin | 1,650,205 | 1,904,204 | 6,440,442 | 6,321,835 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 778,624 | 764,703 | 2,969,956 | 2,901,758 | ||||||||||||
| Engineering, research and development | 634,371 | 870,504 | 2,794,478 | 3,256,306 | ||||||||||||
| Total operating expenses | 1,412,995 | 1,635,207 | 5,764,434 | 6,158,064 | ||||||||||||
| Income from operations | 237,210 | 268,997 | 676,008 | 163,771 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Amortization of debt discount | (13,393 | ) | (19,159 | ) | (53,570 | ) | (52,837 | ) | ||||||||
| Amortization of debt expense | (27,080 | ) | (27,080 | ) | (108,321 | ) | (60,178 | ) | ||||||||
| Change in fair value of common stock warrants | (55,891 | ) | 45,203 | 10,847 | (84,481 | ) | ||||||||||
| Gain on sales of capital asset | - | - | 500 | 3,600 | ||||||||||||
| Proceeds from life insurance policy | - | - | 300,029 | - | ||||||||||||
| Interest income | 198 | 330 | 616 | 549 | ||||||||||||
| Interest expense | (95,809 | ) | (104,121 | ) | (367,410 | ) | (248,800 | ) | ||||||||
| Interest expense - related parties | - | - | (31,964 | ) | (28,036 | ) | ||||||||||
| Total other expense | (192,975 | ) | (104,827 | ) | (249,273 | ) | (470,183 | ) | ||||||||
| Income (loss) before income taxes | 44,235 | 164,170 | 426,735 | (306,412 | ) | |||||||||||
| Provision (benefit) for income taxes | 93,171 | (43,172 | ) | 355,719 | (179,360 | ) | ||||||||||
| Net income (loss) | $ | (48,936 | ) | $ | 207,342 | $ | 71,016 | $ | (127,052 | ) | ||||||
| Basic income (loss) per common share | $ | (0.02 | ) | $ | 0.08 | $ | 0.03 | $ | (0.05 | ) | ||||||
| Diluted income (loss) per common share | $ | (0.02 | ) | $ | 0.08 | $ | 0.02 | $ | (0.05 | ) | ||||||
| Weighted average number of shares outstanding | ||||||||||||||||
| Basic | 2,679,179 | 2,638,263 | 2,657,279 | 2,626,163 | ||||||||||||
| Diluted | 2,679.179 | 2,638,263 | 2,717,820 | 2,626,163 | ||||||||||||
CONTACT:
Tel-Instrument Electronics Corp
Joseph P. Macaluso,
201-933-1600
or
Institutional Marketing Services (IMS)
John
Nesbett or Jennifer Belodeau
203-972-9200
jnesbett@institutionalms.com