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Tel-Instrument Electronics Corp. Reports Second Quarter Fiscal Year 2016 Financial Results

. Posted in About Us

Tel-Instrument Electronics Corp. Reports Second Quarter Fiscal Year 2016 Financial Results
 

Revenues for the Second Quarter 2016 increased 90% to a record $6.8 Million


Basic Earnings per Share Increases to $0.09 for the Quarter from a Loss of $0.12 Last Year


Non-GAAP EBITDA of $964,465 or $0.30 per Share
 

East Rutherford, NJ November 16, 2015 Tel-Instrument Electronics Corp. (Tel, Tel-Instrument or the Company) (NYSE MKT: TIK), a leading designer and manufacturer of avionics test and measurement solutions, today reported its financial results for the second quarter of fiscal year 2016 ended September 30, 2015.

Highlights

Revenues increased to $6.8 million, a 90% increase versus the comparable period of fiscal year 2015.

Operating income increased to $916k, a $1.2 million improvement versus second quarter of 2015.

Strong operating cash flow and significant improvement in cash balances.

Interest expense dropped 55% over the comparable period of the previous year due to new bank deal and lower balances.

Non-GAAP EBITDA of $964,465 or $0.30 per share.

? Tax accrual included in our GAAP accounting is a non-cash item due to Tels large tax NOL.

$519k warrant valuation increase due to trailing 12 months EBITDA doubling to over $2.4 million.

GAAP earnings per share of $0.06 per share, versus a loss of $0.08 per share in the comparable period of the previous year.

Revenues for the second quarter were $6,818,390, a 90% increase from $3,587,674 in the comparable period of fiscal year 2015. Gross margin for the quarter increased to $2,243,466 as compared to $869,344 for the same period last year. This gross margin improvement is primarily attributed to the increase in revenue levels and improved factory efficiency. Selling, general and administrative expenditures increased by $224k versus the comparable period ended September 30, 2014 due to profit sharing accruals and higher commission expenses. Research and development expenses decreased slightly from the comparable period ended September 30, 2014 despite continued investment in our next generation of avionics and communications test sets.


Non-GAAP adjusted earnings before interest, taxes, the change in warrant valuation, depreciation and amortization (EBITDA) for the second quarter increased to $964,465, or $0.30 per share, compared to loss of $234,847 for the second quarter of the previous fiscal year. On a GAAP basis, net income for the quarter was $199,466, or $0.06 per basic share compared to a net loss of $248,195, or $0.08 per share, in the year ago period. The net income results were significantly impacted by the $518,888 increase in the warrant liability. This increase in the warranty liability was due to our last 12 months trailing EBITDA increasing from $1,235,395 as of June 30, 2015 to $2,434,710 in the latest quarter.

Commenting on the results, Mr. Jeffrey OHara, President and CEO of Tel, stated, We are pleased to report a fourth consecutive quarter of profitability as well as record revenues and operating income in the latest quarter. In the latest quarter, the Companys cash balances increased to almost $800k despite continued reductions in accounts payable and long-term debt. Management believes that our operating results going forward will continue to benefit from increased volume and the shipment of more of the higher priced CRAFT units, as well as from the full production release of the TS-4530A SETS which are expected to begin shipping in January 2016.

With backlog at the end of the second quarter now at $19.7 million, the Company is actively working both domestic and overseas opportunities. The untapped Mode 5 market is significant, and the Company has already sold Mode 5 test equipment to 18 different foreign countries, and we expect a longer term international growth opportunity as customers look to comply with the January 1, 2020 mandate for Mode 5 installation. The Company also continues to invest in new product development with the TR-36 Nav/Comm test set being the first product to be released from these efforts. We are also actively working on next generation test sets for both commercial and military market that we believe will be extremely competitive and will expand our core markets. We also continue to investigate opportunities in other markets based upon core competencies in RF, Digital Design and Test Solutions, and we are excited about fiscal year 2016 and beyond.

We encourage everyone to read our full results of operations contained in our Quarterly Report on Form 10-Q filed with the United States Securities and Exchange Commission on November 16, 2015, which can be found at sec.gov.

Conference Call

The Company will host a conference call and webcast on Monday, November 16, 2015 at 9:00 a.m. Eastern Time to discuss the Companys fiscal first quarter results.

To access the live webcast, log onto the Tel-Instrument Electronics Corp.s website at:
https://www.telinstrument.com/learn-about-telinstrument/investor-relations.html.

To participate in the call by phone, dial (877) 407-8035 approximately five minutes prior to the scheduled start time. International callers please dial (201) 689-8035.
A replay of the teleconference will be available until December 15, 2015 and may be accessed by dialing (877) 660-6853. International callers may dial (201) 612-7415. Callers should use conference ID: 13624963.

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.
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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 Companys 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 Companys 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 Companys previous filings with the U.S. 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. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the Act) protects companies from liability for their forward-looking statements if they comply with the requirements of the Act.

Contact: Joseph P. Macaluso John Nesbett or Jennifer Belodeau
Tel-Instrument Electronics Corp. Institutional Marketing Services (IMS)
(201) 933-1600 (203) 972-9200
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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