Tel-Instrument Electronics Corp. Reports First Quarter Fiscal Year 2016 Financial Results - Condensed Balance Sheets
| Article Index |
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| Tel-Instrument Electronics Corp. Reports First Quarter Fiscal Year 2016 Financial Results |
| Condensed Balance Sheets |
| All Pages |
Page 2 of 2
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June 30, 2015 |
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March 31, 2015 |
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(unaudited) |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
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$ |
178,023 |
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185,932 |
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| Accounts receivable, net |
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1,856,985 |
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1,625,171 |
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| Inventories, net |
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4,523,832 |
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4,032,074 |
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| Prepaid expenses and other current assets |
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328,720 |
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281,002 |
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| Deferred financing costs |
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5,429 |
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5,429 |
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| Deferred income tax asset |
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1,064,395 |
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1,064,395 |
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| Total current assets |
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7,957,384 |
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7,194,003 |
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| Equipment and leasehold improvements, net |
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234,252 |
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270,792 |
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| Deferred financing costs long-term |
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7,435 |
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8,792 |
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| Deferred income tax asset non-current |
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2,162,405 |
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2,377,583 |
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| Other long-term assets |
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32,317 |
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32,317 |
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| Total assets |
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10,393,793 |
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9,883,487 |
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| LIABILITIES & STOCKHOLDERS EQUITY |
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| Current liabilities: |
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| Current portion of long-term debt, net of debt discount |
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393,846 |
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387,839 |
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| Capital lease obligations current portion |
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17,345 |
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16,758 |
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| Accounts payable and accrued liabilities |
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3,903,312 |
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3,577,566 |
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| Deferred revenues current portion |
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8,167 |
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18,609 |
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| Accrued payroll, vacation pay and payroll taxes |
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676,288 |
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594,114 |
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| Total current liabilities |
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4,998,958 |
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4,594,886 |
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| Subordinated notes payable - related parties |
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250,000 |
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250,000 |
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| Capital lease obligations long-term |
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- |
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4,561 |
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| Long-term debt |
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607,927 |
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708,604 |
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| Deferred revenues long-term |
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133,650 |
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133,650 |
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| Warrant liability |
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451,202 |
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518,962 |
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| Other long-term liabilities |
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26,700 |
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33,000 |
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| Total liabilities |
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6,468,437 |
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6,243,663 |
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| Commitments |
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| Stockholders' equity: |
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| Common stock, 4,000,000 shares authorized, par value $0.10 per share, 3,256,887 and 3,256,887 shares issued and outstanding, respectively |
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325,686 |
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325,686 |
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| Additional paid-in capital |
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8,052,634 |
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8,046,168 |
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| Accumulated deficit |
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(4,452,964 |
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(4,732,030 |
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| Total stockholders' equity |
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3,925,356 |
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3,639,824 |
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| Total liabilities and stockholders' equity |
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$ |
10,393,793 |
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$ |
9,883,487 |
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Three Months Ended |
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June 30, 2015 |
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June 30, 2014 |
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| Net sales |
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$ |
5,845,919 |
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$ |
3,129,076 |
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| Cost of sales |
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4,030,624 |
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2,008,859 |
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| Gross margin |
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1,815,295 |
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1,120,217 |
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| Operating expenses: |
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| Selling, general and administrative |
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865,688 |
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879,193 |
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| Engineering, research and development |
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492,132 |
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483,896 |
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| Total operating expenses |
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1,357,820 |
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1,363,089 |
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| Income (loss) from operations |
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457,475 |
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(242,872 |
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| Other income (expense): |
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| Amortization of debt discount |
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- |
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(30,874 |
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| Amortization of deferred financing costs |
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(1,357 |
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(27,080 |
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| Change in fair value of common stock warrants |
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67,760 |
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(133,881 |
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| Interest expense |
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(29,634 |
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(62,480 |
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| Total other income (expense) |
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36,769 |
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(254,315 |
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| Income (loss) before income taxes |
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494,244 |
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(497,187 |
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| Income tax provision (benefit) |
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215,178 |
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(113,182 |
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| Net income (loss) |
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$ |
279,066 |
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$ |
(384,005 |
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| Net income (loss) per share: |
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| Basic income (loss) per common share |
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$ |
0.09 |
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$ |
(0.12 |
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| Diluted income (loss) per common share |
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$ |
0.02 |
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$ |
(0.12 |
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| Weighted average shares outstanding: |
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| Basic |
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3,256,887 |
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3,251,387 |
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| Diluted |
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3,320,442 |
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3,251,387 |
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TEL-INSTRUMENT ELECTRONICS CORP.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(Unaudited)
| Three Months |
Three Months |
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| Ended |
Ended |
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| June 30, |
June 30, |
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| 2015 |
2014 |
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| Net income (loss) |
$ 279,066 |
$ (384,005) |
| Income tax provision (benefit) |
215,178 |
(113,182) |
| Depreciation and amortization |
42,413 |
45,062 |
| Amortization of debt discount |
- |
30,874 |
| Amortization of deferred financing costs |
1,357 |
27,080 |
| Change on fair value of common stock warrants |
(67,760) |
133,881 |
| Interest, net |
29,634 |
62,480 |
| Non-cash stock-based compensation |
6,466 |
12,063 |
| Non-GAAP EBITDA |
$ 506,354 |
$ (185,747) |
| Non-GAAP EBITDA per common share |
$ 0.16 |
$ (0.06) |
| Basic weighted average shares outstanding |
3,256,887 |
3,251,387 |
The term EBITDA consists of net income (loss) plus interest, taxes, depreciation and amortization, amortization of debt
discount and deferred financing charges, change in fair value of warrants, non-cash interest, and non-cash stock-based compensation.
EBITDA is not a measure of financial performance under generally accepted accounting principles, and should not be considered in isolation from, or as a substitute for net income or cash flow measures prepared in accordance with generally accepted accounting principles, or as a measure of profitability or liquidity. Additionally,
EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA
as a supplemental disclosure because its management believes that EBITDA provides useful information regarding our ability
to service debt, and to fund capital expenditures, and provides investors a helpful measure for analyzing its operating performance.
The table above sets forth a reconciliation of EBITDA to net income (loss), which is the most directly comparable measure of
financial performance, calculated under generally accepted accounting principles. Non-GAAP EBITDA per common share is calculated by dividing Non-GAAP EBITDA by basic weighted average shares outstanding.