NEWARK, NY--(Marketwire - February 3, 2011) - IEC Electronics Corp. (
Compared to Q1 2010...
-- Revenue increased by more than 50% -- Operating Income increased by more than 45% -- EBITDA increased by more than 70%
IEC Electronics Corp. (
The Company reported revenue of $28.7 million for the quarter, operating income of $1,963,000 and net income of $1,049,000 or $0.11 per diluted share. This compares to revenue in the prior year first quarter of $18.1 million, operating income of $1,313,000 and net income of $754,000 or $.08 per diluted share.
W. Barry Gilbert, Chairman of the Board and CEO, stated, "As previously announced, we acquired Southern California Braiding, Inc. ("SCB") on December 17, 2010. Between December 17 and our quarter end, we incurred approximately $70,000 of transitional start-up expenses. The more time we spend with SCB the more excited we become with the prospects for this acquisition and cross selling opportunities. As it was so near the end of the reporting period, the acquisition had almost no impact on our first quarter results. We enjoyed a strong quarter with continued sales, earnings and cash flow growth. During the quarter, we also experienced some challenges introducing a number of new projects while also managing an unusual level of product mix variations, resulting in some temporary inefficiencies amounting to approximately $200,000. With these first quarter inefficiencies behind us we remain confident in our outlook for 2011."
For the first quarter of 2011, IEC reported earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.4 million or $0.25 per diluted share, compared to EBITDA of $1.4 million or $0.15 per diluted share in the first quarter of 2010. As mentioned in the past, the Company views EBITDA as a useful measure of its operating performance because it eliminates the aberrations produced by its net operating loss carryforward (NOL), and enables the investment community to better evaluate long-term profitability and cash flow being generated by the Company. IEC's remaining NOL for federal and state taxes is approximately $33.2 million.
Gilbert also observed, "Some of our customers who were experiencing difficulty during the recession have begun to recover. Their commercial outlook is substantially brighter and we expect to reap the benefit of that growth, in addition to the market share gains we have made. We believe our increased market share is a result of the continued high level of commitment our employees have to deliver for our customers... Absolutely, Positively Perfect and On Time(SM)."
Conference Call
IEC will host a conference call with investors at 10:00 a.m. Eastern time today, February 3, 2011 to discuss its financial results for the quarter ended December 31, 2010. The 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 366229.
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 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, and 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 DEC 31, 2010 AND SEP 30, 2010 (In Thousands) DEC 31, 2010 SEP 30, 2010 ASSETS CURRENT ASSETS Cash 0 0 Accounts Receivable 18,855 16,315 Inventories 18,841 12,068 Deferred Income Taxes 4,329 3,359 Other Current Assets 1,156 234 ---------- ---------- Total Current Assets 43,181 31,976 ---------- ---------- NET FIXED ASSETS 14,832 13,098 NON-CURRENT ASSETS Goodwill 21,147 58 Intangible Assets 420 331 Deferred Income Taxes 8,679 10,113 Other Non-Current Assets 221 106 ----------- ---------- TOTAL ASSETS 88,480 55,682 =========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Short Term Borrowings 6,905 2,899 Accounts Payable 10,105 8,145 Accrued Payroll and Related Taxes 1,591 2,279 Other Accrued Expenses 1,186 941 Other Current Liabilities 1,093 0 ---------- ---------- Total Current Liabilities 20,880 14,264 ---------- ---------- LONG TERM DEBT 40,392 15,999 ---------- ---------- TOTAL LIABILITIES 61,272 30,263 SHAREHOLDER'S EQUITY Authorized - 50,000,000 shares Issued - 10,359,057, Outstanding - 9,346,184 Common stock, par value $.01 per share 103 101 Treasury Shares at Cost - 1,012,873 shares (1,413) (1,413) Additional Paid-in Capital 41,876 41,138 Retained Earnings (13,358) (14,407) ---------- ---------- TOTAL SHAREHOLDER'S EQUITY 27,208 25,419 ---------- ---------- TOTAL LIABILITIES & EQUITY 88,480 55,682 ========== ========== IEC ELECTRONICS CORP - CONSOLIDATED STATEMENT OF INCOME FOR QUARTER END & YTD DEC 31, 2010 AND DEC 25, 2009 (In Thousands) ACTUAL PRIOR ACTUAL PRIOR QUARTER QUARTER YTD YTD DEC 31, 2010 DEC 25, 2009 DEC 31, 2010 DEC 25, 2009 Sales 28,644 18,060 28,644 18,060 Cost of Sales 24,061 15,247 24,061 15,247 -------- -------- -------- -------- Gross Profit 4,583 2,813 4,583 2,813 Less: Operating Expenses Selling & G&A 2,620 1,500 2,620 1,500 Other 0 0 0 0 -------- -------- -------- -------- Total Operating Expenses 2,620 1,500 2,620 1,500 -------- -------- -------- -------- Operating Profit 1,963 1,313 1,963 1,313 Interest and Financing Expense 244 95 244 95 Other Expense/(Income) 13 58 13 58 -------- -------- -------- -------- Net Income before Income Taxes 1,706 1,160 1,706 1,160 Provision for / (benefit from)Income Tax 657 406 657 406 -------- -------- -------- -------- Net Income 1,049 754 1,049 754 ======== ======== ======== ======== Basic Earnings Per Share $0.11 $0.09 $0.11 $0.09 Diluted Earnings Per Share $0.11 $0.08 $0.11 $0.08 Basic Shares 9,224,877 8,828,604 9,224,877 8,828,604 Diluted Shares 9,766,022 9,526,342 9,766,022 9,526,342 IEC ELECTRONICS CORP - CONSOLIDATED RECONCILIATION OF NET INCOME TO EBITDA FOR QUARTER END & YTD DEC 31, 2010 AND DEC 25, 2009 (In Thousands) ACTUAL PRIOR ACTUAL PRIOR QUARTER QUARTER YTD YTD DEC 31, 2010 DEC 25, 2009 DEC 31, 2010 DEC 25, 2009 Net Income 1,049 754 1,049 754 Provision for / (benefit from) Income Tax 657 406 657 406 Depreciation and Amortization Expense 489 137 489 137 Net Interest Expense / (Income) 244 95 244 95 -------- -------- -------- -------- EBITDA 2,439 1,392 2,439 1,392 -------- -------- -------- -------- Basic Earnings Per Share $0.26 $0.16 $0.26 $0.16 Diluted Earnings Per Share $0.25 $0.15 $0.25 $0.15 Basic Shares 9,224,877 8,828,604 9,224,877 8,828,408 Diluted Shares 9,766,022 9,526,342 9,766,022 9,526,342
Contact Information: Contact: Susan E. Topel-Samek Vice President & CFO IEC Electronics Corp. (315)332-4308 John Nesbett or Jennifer Belodeau Institutional Marketing Services (203)972-9200