NEWARK, NY--(Marketwire - July 19, 2010) - IEC Electronics Corp. (
For the quarter the Company reported revenue of $26.1 million, operating profit of $2.3 million and net income of $1.2 million or $0.13 per share. This compares to revenue of $17.3 million, operating profit of $1.3 million and net income of $903,000 or $0.10 per share for the quarter ended June 26, 2009.
Earnings before interest, taxes, depreciation and amortization (EBITDA) were $2.6 million or $0.27 per share, compared to $1.6 million or $0.17 per share for the same quarter last year. The Company views EBITDA as a useful measure of its operating performance as it eliminates the aberrations produced by our net operating loss carryforward (NOL), and enables the investment community to better evaluate our long run profitability and cash being generated by the Company.
For the nine months ended June 25, 2010 IEC had revenue of $69.4 million, operating profit of $5.7 million and net income of $3 million or $0.32 per share. This compares to revenue of $49.5 million, operating profit of $3.4 million and net income of $4 million or $0.43 per share for the first nine months of fiscal 2009. In fiscal 2009, the first nine month's net income was favorably impacted by a net tax credit of $1.5 million during the second quarter. Absent that tax credit, net income for the first nine months of fiscal 2009 was $2 million or $0.23 per share.
EBITDA for the nine month period ended June 25, 2010 totaled $6.1 million or $0.63 per share, compared to $3.6 million or $0.37 per share for the same period last year.
W. Barry Gilbert, Chairman of the Board and CEO, stated, "This was an especially good quarter. Operating profit of over 8.5% of sales is unique in our industry. Sales growth of more than 50% and operating profit growth of more than 70% as compared to the third quarter of fiscal 2009 were especially gratifying. We continue to execute our growth strategy and enjoy the benefit of a favorable mix of products. Excluding the contribution from our acquisition of GTC, our sales growth from IEC Contract Manufacturing and IEC Wire and Cable was over 15% as compared to the same period of fiscal 2009. We expect to meet our forecasted full-year 2010 revenue of $96 million.
"GTC continues to perform well and its integration with IEC Electronics is moving along nicely. Likewise, GTC's backlog continues to grow as they have acquired a number of new programs from existing customers. As we observed last quarter, unlike IEC Contract Manufacturing and IEC Wire and Cable, whose backlog is shipped during the next four to nine months, GTC's backlog is weighted to 2011 and beyond.
"Consistent with past practice, we do not report our backlog during the year. However, our shareholders should be pleased to know that our current backlog is higher than the backlog reported in our Form 10-K for fiscal 2009.
"Our sector performance remains consistent with previous quarters. The military/aerospace sector remains strong and represents 59% of our sales for the first nine months of fiscal 2010 as compared to 55% of sales at the close of fiscal 2009. Our medical/other sector has increased from 8% of sales at the close of fiscal 2009 to 13% of sales for the first nine months of fiscal 2010. Our industrial sector though growing in absolute terms, declined slightly to 20% of sales for the first nine months of this year as compared to 24% of sales at the close of fiscal year end 2009. The turbulence in the economy impacts the industrial sector more than the others. However, we expect the sector to gain strength over the balance of the year and we envision modest continued improvement in fiscal 2011.
"In summary, our Company continues to move in the right direction and we are confident that we are creating future value for our shareholders and opportunity for our employees."
About IEC Electronics
IEC Electronics Corporation provides contract electronic manufacturing
services to advanced technology companies primarily in the military and
aerospace, medical, industrial and computing sectors. The Company's ultra
high reliability capabilities include: design, prototype and volume
circuit board assembly, material procurement and control, manufacturing and
test engineering support, systems build, final packaging and distribution.
As a full service EMS provider, IEC is AS9100, ISO-9001:2000, and ISO-13485
registered, and an NSA approved supplier under the COMSEC standard. The
Company is headquartered outside of Rochester, New York and also has
operations in Victor, New York and Albuquerque, New Mexico. 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, the ability of the Company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, competition and technological change, the ability of the Company to control manufacturing and operating costs, satisfactory relationships with vendors. 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 2009 Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission.
IEC ELECTRONICS CORP - CONSOLIDATED
BALANCE SHEET
JUN 25, 2010 AND SEP 30, 2009
(In Thousands)
JUN 25, 2010 SEP 30, 2009
ASSETS
CURRENT ASSETS
Cash 1,274 0
Accounts Receivable 16,070 10,354
Inventories 10,281 6,491
Deferred Income Taxes 2,050 2,050
Other Current Assets 273 110
------------ ------------
Total Current Assets 29,948 19,005
------------ ------------
NET FIXED ASSETS 11,368 2,391
NON-CURRENT ASSETS
Intangible Asset 340 0
Deferred Income Taxes 11,473 13,026
Other Non-Current Assets 104 47
------------ ------------
TOTAL ASSETS 53,233 34,469
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Borrowings 2,494 1,147
Accounts Payable 6,495 4,183
Accrued Payroll and Related Taxes 1,926 1,564
Other Accrued Expenses 1,245 531
Other Current Liabilities 115 190
------------ ------------
Total Current Liabilities 12,275 7,615
------------ ------------
LONG TERM DEBT 17,278 6,600
------------ ------------
TOTAL LIABILITIES 29,553 14,215
SHAREHOLDER'S EQUITY
Authorized - 50,000,000 shares
Issued - 10,103,759, Outstanding - 9,090,886
Common stock, par value $.01 per share 101 97
Treasury Shares at Cost - 1,012,873 shares (1,413) (1,413)
Additional Paid-in Capital 41,027 40,632
Retained Earnings (16,035) (19,062)
------------ ------------
TOTAL SHAREHOLDER'S EQUITY 23,680 20,254
------------ ------------
TOTAL LIABILITIES & EQUITY 53,233 34,469
============ ============
IEC ELECTRONICS CORP - CONSOLIDATED
STATEMENT OF INCOME
FOR QUARTER END & YTD JUN 25, 2010 AND JUN 26, 2009
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
JUN 25, 2010 JUN 26, 2009 JUN 25, 2010 JUN 26, 2009
Sales 26,095 17,346 69,387 49,538
Cost of Sales 21,439 14,556 57,900 41,908
------------ ------------ ------------ ------------
Gross Profit 4,656 2,790 11,487 7,630
Less: Operating
Expenses
Selling & G&A 2,388 1,463 5,922 4,214
Restructuring 0 0 0 0
------------ ------------ ------------ ------------
Total Operating
Expenses 2,388 1,463 5,922 4,214
------------ ------------ ------------ ------------
Operating Profit 2,268 1,327 5,565 3,416
Interest and
Financing
Expense 238 90 594 304
Other Expense/
(Income) 17 (151) 205 (217)
------------ ------------ ------------ ------------
Net Income before
Income Taxes 2,013 1,388 4,766 3,329
Provision for/
(benefit from)
Income Tax 775 485 1,739 (724)
------------ ------------ ------------ ------------
Net Income 1,238 903 3,027 4,053
============ ============ ============ ============
Basic Earnings
Per Share $ 0.14 $ 0.11 $ 0.34 $ 0.46
Diluted Earnings
Per Share $ 0.13 $ 0.10 $ 0.32 $ 0.43
Basic Shares 9,055,280 8,524,317 8,955,212 8,745,240
Diluted Shares 9,629,326 9,322,368 9,608,748 9,386,616
IEC ELECTRONICS CORP - CONSOLIDATED
RECONCILIATION OF NET INCOME TO EBITDA
FOR QUARTER END & YTD JUN 25, 2010 AND JUN 26, 2009
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
JUN 25, 2010 JUN 26, 2009 JUN 25, 2010 JUN 26, 2009
Net Income 1,238 903 3,027 4,053
Provision for/
(benefit from)
Income Tax 775 485 1,739 (724)
Depreciation and
Amortization
Expense 312 93 725 215
Net Interest
Expense/(Income) 238 90 594 304
------------ ------------ ------------ ------------
EBITDA 2,563 1,571 6,085 3,848
------------ ------------ ------------ ------------
Basic Earnings
Per Share $ 0.28 $ 0.18 $ 0.68 $ 0.44
Diluted Earnings
Per Share $ 0.27 $ 0.17 $ 0.63 $ 0.41
Basic Shares 9,055,280 8,524,317 8,955,212 8,745,240
Diluted Shares 9,629,326 9,322,368 9,608,748 9,386,616
Contact Information: Contact: Heather Keenan IEC Electronics Corp. (315) 332-4262 John Nesbett/Jennifer Belodeau Institutional Marketing Services (203) 972-9200