2013-01-07 17:40:37 -
For Immediate Release
Fiscal 2013 Third Quarter Highlights:
* Gross profit margin as a percentage of net sales of 42.9%
* Net income attributable to ETC increased 45.6% to $1.2 million
* Diluted earnings per share increased 400.0% to $0.05
* EBITDA increased 22.5% to $3.1 million
* Completed a financial restructuring that reduces annual net cash payments
for dividends and interest by approximately $1.5 million, and reduced Common
Stock equivalents by 5 million shares
SOUTHAMPTON, PA, USA, January 7, 2013 - Environmental Tectonics Corporation
(OTCQB: ETCC) ("ETC" or the "Company") today reported an increase in net
income
attributable to ETC during the 2013 third quarter ("the 2013 third quarter") to
$1.2 million, or $0.05 per diluted share, compared to net income attributable to
ETC of $0.8 million, or $0.01 per diluted share, in the 2012 third quarter ("the
2012 third quarter"). This improvement was achieved on lower net sales of $15.2
million, compared to $17.3 million in the 2012 third quarter. The 12.2%
reduction in net sales reflects decreased sales to the U.S. Government and to
International customers, offset in part, by increased sales to Domestic
customers.
Income before income taxes for the 2013 third quarter increased to $2.3 million,
a $0.5 million increase, or 25.5%, compared to $1.8 million in the 2012 third
quarter. The increase in income before income taxes was due primarily to an
increase in gross profit margin as a percentage of net sales to 42.9% in the
2013 third quarter from 32.8% in the 2012 third quarter, which was the result of
several high margin completed contract sales recognized in the 2013 third
quarter, compared to a reduced margin in the 2012 third quarter due to an
increase in costs related to a U.S. Government contract.
Net income attributable to ETC for the 2013 third quarter and the 2012 third
quarter was affected by income tax provisions of $1.1 million and $1.0 million,
respectively; as a result, net income attributable to ETC for the 2013 third
quarter was $1.2 million, or $0.05 per diluted share, compared to $0.8 million,
or, $0.01 per diluted share, in the 2012 third quarter, an increase in net
income attributable to ETC of $0.4 million, or 45.6% in dollars and 400.0% based
on diluted earnings per share. The significant increase in diluted earnings per
share was due in part to increased income and also to reduced shares outstanding
following the repurchase of 386 shares of Series D Preferred Stock, representing
all of the Company's issued and outstanding shares of Series D Preferred Stock,
and 9,614 shares of Series E Preferred Stock, representing a significant portion
of the Company's issued and outstanding Series E Preferred Stock.
William F. Mitchell, ETC's President and Chief Executive Officer, stated, "We
are very pleased that ETC achieved increased profitability and earnings per
share on lower net sales in the fiscal 2013 third quarter ended November
23, 2012, which reflects both solid operating income and the positive affect of
our financial restructuring."
Business Overview:
ETC designs, manufactures, and sells software driven products and services used
to recreate and monitor the physiological effects of motion on humans and
equipment and to control, modify, simulate, and measure environmental
conditions. We operate in two primary business segments, Aerospace Solutions
("Aerospace") and Commercial/Industrial Systems ("CIS"). Aerospace
encompasses
the design, manufacture, and sale of (1) software driven products and services
used to create and monitor the physiological effects of flight, including high
performance jet tactical flight simulation, upset recovery and spatial
disorientation, and both suborbital and orbital commercial human spaceflight;
collectively, Aircrew Training Systems ("ATS"); (2) altitude (hypobaric)
chambers; (3) hyperbaric (100% oxygen) chambers for multiple persons (multiplace
chambers); and (4) the Advanced Disaster Management Simulator ("ADMS"), as well
as integrated logistics support for customers who purchase these products.
These products and services provide customers with an offering of comprehensive
solutions for improved readiness and reduced operational costs. Sales of our
Aerospace products are made principally to U.S. and foreign government agencies.
CIS operations encompass the design, manufacture, and sale of core technologies
including: (1) steam and gas (ethylene oxide) sterilizers; (2) environmental
testing and simulation devices; (3) hyperbaric (100% oxygen) chambers for one
person (monoplace chambers); and (4) parts and service support. Sales of our
CIS products are made principally to the healthcare, pharmaceutical, and
automotive industries.
We presently have two foreign operating subsidiaries. ETC-PZL Aerospace
Industries SP. Z 0.0, ("ETC-PZL"), our 95%-owned subsidiary in Warsaw, Poland,
manufactures simulators for our Aerospace segment and provides software to
support our domestic products. Environmental Tectonics Corporation (Europe)
Limited ("ETC-Europe"), our 99%-owned subsidiary, functions as a sales office in
the United Kingdom.
ETC's unique ability to offer complete systems, designed and produced to high
technical standards, sets it apart from its competition. ETC is headquartered
in Southampton, PA. For more information about ETC, visit
www.etcusa.com/.
Fiscal 2013 Third Quarter Results of Operations:
Domestic sales in the 2013 third quarter were $4.3 million, an increase of $0.3
million, or 7.0%, over 2012 third quarter sales of $4.0 million. The increase
in Domestic sales is due primarily to an increase in Environmental and
Hyperbaric sales, offset in part, by decreased Sterilizer sales, within the CIS
segment. Domestic sales as a percentage of the Company's total net sales
increased to 28.4% in the 2013 third quarter compared to 23.3% in the 2012 third
quarter.
U.S. Government sales in the 2013 third quarter were $5.4 million, a decrease of
$1.4 million, or 20.9%, compared to 2012 third quarter sales of $6.8 million,
and represented 35.6% of total net sales in the 2013 third quarter compared to
39.5% for the 2012 third quarter. This decrease is the result of lower ATS
sales. Given the existing progress made on U.S. Government sales contracts in
the Company's backlog, the Company anticipates the concentration of sales to the
U.S. Government will continue to lessen in fiscal 2013.
International sales for the 2013 third quarter, including those of the Company's
foreign subsidiaries, were $5.4 million compared to $6.4 million in the 2012
third quarter, a decrease of $1.0 million, or 15.0%, and represented 36.0% of
total net sales in the 2013 third quarter compared to 37.2% in the 2012 third
quarter. The decrease in International sales reflects a decrease in ATS sales,
offset in part, by an increase in Simulation sales. International sales in the
2013 third quarter included $1.3 million in sales to the Korean government.
International sales in the 2012 third quarter included $3.7 million in sales to
the Korean government.
Segment sales
Aerospace sales were $10.6 million for the 2013 third quarter, a decrease of
$2.3 million, or 17.8%, compared to sales of $12.9 million in the 2012 third
quarter. Sales of these products accounted for 69.8% of our net sales for the
2013 third quarter, compared to 74.5% in the 2012 third quarter. CIS sales
increased $0.2 million, or 4.1%, to $4.6 million for the 2013 third quarter
compared to $4.4 million in the 2012 third quarter, and constituted 30.2% of our
net sales for the 2013 third quarter compared to 25.5% in the 2012 third
quarter.
Gross profit
Gross profit for the 2013 third quarter was $6.5 million as compared to $5.7
million in the 2012 third quarter, an increase of $0.8 million, or 14.8%. The
increase in gross profit was achieved despite a decrease in net sales, due to
the increase in gross profit margin as a percentage of net sales to 42.9% in the
2013 third quarter from 32.8% in the 2012 third quarter. The increase in gross
profit margin as a percentage of net sales was due to several high margin
completed contract sales recognized in the 2013 third quarter, compared to a
reduced margin in the 2012 third quarter due to an increase in costs related to
a U.S. Government contract.
Operating expenses
Selling and marketing expenses for the 2013 third quarter were $1.5 million, an
increase of $0.1 million, or 8.8%, compared to $1.4 million for the 2012 third
quarter. As a percentage of net sales, selling and marketing expenses increased
to 10.0% in the 2013 third quarter from 8.0% in the 2012 third quarter. The
increase is primarily the result of an increase in commission expense as there
was an increase in commission generating revenue in the 2013 third quarter
compared to the 2012 third quarter; thus, commission expense as a percentage of
net sales was higher in the 2013 third quarter compared to the 2012 third
quarter.
General and administrative expenses for the 2013 third quarter of $2.0 million
remained unchanged compared to the 2012 third quarter. As a percentage of net
sales, general and administrative expenses increased to 13.5% in the 2013 third
quarter from 11.9% in the 2012 third quarter.
Research and development expenses include spending for potential new products
and technologies, and internationally, work performed under government grant
programs. This spending, net of grant payments from the Polish and Turkish
governments, totaled $0.3 million for the 2013 third quarter compared to $0.2
million for the 2012 third quarter, an increase of $0.1 million. The increase
was a result of less research and development employees being assigned to
specific contracts; thus, expenses related to these employees were included in
research and development expenses in the 2013 third quarter. Most of the
Company's research efforts, which were and continue to be a significant cost of
its business, are included in cost of sales for applied research for specific
contracts, as well as research for feasibility and technology updates. As a
percentage of sales, research and development expenses were 1.7% in the 2013
third quarter compared to 1.0% in the 2012 third quarter.
Operating income
Operating income increased by $0.7 million, or 32.0%, to $2.7 million for the
2013 third quarter compared to $2.0 million in the 2012 third quarter.
Operating income as a percentage of net sales increased to 17.7% from 11.8% in
the 2012 third quarter. On a segment basis, Aerospace had operating income of
$2.9 million for the 2013 third quarter, a $1.1 million increase from operating
income of $1.8 million in the 2012 third quarter. CIS had operating income of
$0.7 million in the 2013 third quarter, a $0.2 million decrease from operating
income of $0.9 million in the 2012 third quarter. These segment operating
results were offset, in part, by unallocated corporate expenses of $0.9 million
and $0.7 million in the 2013 third quarter and the 2012 third quarter,
respectively.
Interest expense, other expense, and taxes
Interest expense, net, for the 2013 third quarter was $0.3 million compared to
$0.2 million in the 2012 third quarter, representing a higher level of bank
borrowing that now includes the recently entered into Term Loan.
The Company has a net deferred tax asset related primarily to its federal net
operating loss carryforwards of $5.5 million as of November 23, 2012. Income
tax provisions of $1.1 million and $1.0 million were recorded in the 2013 third
quarter and the 2012 third quarter, respectively.
As of November 23, 2012, the Company had approximately $15.7 million of federal
net loss carryforwards available to offset future income tax liabilities, which
begin to expire in 2025. In addition, the Company has the ability to offset
deferred tax assets against deferred tax liabilities created for such items as
depreciation and amortization.
Net income attributable to ETC
Net income attributable to ETC was $1.2 million, or $0.05 diluted earnings per
share, in the 2013 third quarter, compared to $0.8 million or $0.01 diluted
earnings per share, during the 2012 third quarter, representing an increase of
$0.4 million, or 45.6% in dollars and 400.0% based on diluted earnings per
share. The increase in net income attributable to ETC reflects an increase in
income before income taxes of $462 thousand, a result of an $838 thousand
increase in gross profit, which was offset by a $187 thousand increase in
operating expenses, a $124 thousand increase in interest expense, a $65 thousand
increase in other expense, and a $78 increase in the provision for income taxes.
The significant increase in diluted earnings per share was due in part to
increased income and also to reduced shares outstanding following the repurchase
of 386 shares of Series D Preferred Stock, representing all of the Company's
issued and outstanding shares of Series D Preferred Stock, and 9,614 shares of
Series E Preferred Stock, representing a significant portion of the Company's
issued and outstanding Series E Preferred Stock.
Fiscal 2013 First Three Quarters Results of Operations:
Domestic sales for the 2013 first three quarters were $14.8 million, an increase
of $3.7 million, or 33.6%, over 2012 first three quarters sales of $11.1
million. The increase in Domestic sales is due primarily to an increase in
Environmental, Sterilizer, and Hyperbaric sales within the CIS segment, offset
in part, by a decrease in Simulation and ATS sales within the Aerospace segment.
Domestic sales represented 31.0% of the Company's total net sales in the 2013
first three quarters compared to 22.4% of the Company's total net sales in the
2012 first three quarters.
U.S. Government sales for the 2013 first three quarters were $18.5 million, a
decrease of $4.4 million, or 19.3%, compared to sales in the 2012 first three
quarters of $22.9 million, and represented 38.8% of total net sales in the 2013
first three quarters compared to 46.4% for the 2012 first three quarters. This
decrease is the result of lower ATS sales, offset in part, by an increase in
sales related to a suite of research altitude chambers. Given the existing
progress made on U.S. Government sales contracts in the Company's backlog, the
Company anticipates the concentration of sales to the U.S. Government will
continue to lessen in fiscal 2013.
International sales for the 2013 first three quarters, including those of the
Company's foreign subsidiaries, were $14.4 million a decrease of $1.0 million,
or 6.3%, compared to sales in the 2012 first three quarters of $15.4 million,
and represented 30.2% of total net sales in the 2013 first three quarters
compared to 31.2% in the 2012 first three quarters. This decrease is primarily
the result of lower Chambers and Hyperbaric sales, offset in part, by an
increase in Simulation sales. International sales in the 2013 first three
quarters included $5.9 million in sales to the Korean government. International
sales in the 2012 first three quarters included $7.6 million in sales to the
Korean government.
Segment sales
Aerospace sales were $32.2 million for the 2013 first three quarters, a decrease
of $5.2 million, or 14.0%, compared to sales of $37.4 million in the 2012 first
three quarters. Sales of these products accounted for 67.4% of our net sales
for the 2013 first three quarters compared to 75.8% in the 2012 first three
quarters. CIS sales increased $3.6 million, or 29.9%, to $15.5 million for the
2013 first three quarters compared to $11.9 million in the 2012 first three
quarters, and constituted 32.6% of our net sales for the 2013 first three
quarters compared to 24.2% in the 2012 first three quarters.
Gross profit
Gross profit for the 2013 first three quarters was $19.0 million compared to
$18.1 million in the 2012 first three quarters, an increase of $0.9 million, or
5.3%. The increase in gross profit was achieved despite a decrease in net
sales, due to the increase in gross profit margin as a percentage of net sales
to 39.9% in the 2013 first three quarters from 36.6% in the 2012 first three
quarters. The increase in gross profit margin as a percentage of net sales was
due to several high margin completed contract sales recognized primarily in the
2013 third quarter, compared to a reduced margin in the 2012 first three
quarters due to an increase in costs related to a U.S. Government contract.
Operating expenses
Selling and marketing expenses for the 2013 first three quarters were $4.1
million, an increase of $0.1 million, or 2.8%, compared to $4.0 million for the
2012 first three quarters. As a percentage of net sales, selling and marketing
expenses increased to 8.6% in the 2013 first three quarters from 8.1% in the
2012 first three quarters. The increase is primarily the result of salaries and
benefits related to an increase in headcount of sales and marketing employees.
General and administrative expenses for the 2013 first three quarters of $5.9
million remained unchanged compared to the 2012 first three quarters. As a
percentage of net sales, general and administrative expenses increased to 12.5%
in the 2013 first three quarters from 12.0% in the 2012 first three quarters.
Although the dollar amount of general and administrative expenses did not
change, there was an increase in expenses related to our foreign operating
subsidiaries, offset by a decrease in consulting expenses and the absence of a
one-time charge to vacation expense in the 2012 first three quarters.
Research and development expenses include spending for potential new products
and technologies, and internationally, work performed under government grant
programs. This spending, net of grant payments from the Polish and Turkish
governments, totaled $0.9 million for the 2013 first three quarters compared to
$0.6 million for the 2012 first three quarters, an increase of $0.3 million, or
63.9%. The increase was a result of less research and development employees
being assigned to specific contracts; thus, expenses related to these employees
were included in research and development expenses in the 2013 first three
quarters. Most of the Company's research efforts, which were and continue to be
a significant cost of its business, are included in cost of sales for applied
research for specific contracts, as well as research for feasibility and
technology updates. As a percentage of sales, research and development expenses
were 1.9% in the 2013 first three quarters compared to 1.1 % in the 2012 first
three quarters.
Operating income
Operating income increased by $0.5 million, or 6.5%, to $8.1 million for the
2013 first three quarters compared to $7.6 million in the 2012 first three
quarters. Operating income as a percentage of net sales increased to 16.9% in
the 2013 first three quarters from 15.3% in the 2012 first three quarters. On a
segment basis, Aerospace had operating income of $6.9 million for the 2013 first
three quarters, a $0.1 million increase from operating income of $6.8 million in
the 2012 first three quarters. CIS had operating income of $3.4 million in the
2013 first three quarters, a $0.5 million increase from operating income of $2.9
million in the 2012 first three quarters. These segment operating results were
offset, in part, by unallocated corporate expenses of $2.2 million and $2.1
million in the 2013 first three quarters and the 2012 first three quarters,
respectively.
Interest expense, other expense, and taxes
Interest expense, net, for the 2013 first three quarters was $0.8 million as
compared to $0.6 million in the 2012 first three quarters, representing a higher
level of bank borrowing that now includes the recently entered into Term Loan.
The Company has a net deferred tax asset related primarily to its federal net
operating loss carryforwards of $5.5 million as of November 23, 2012. Income
tax provisions of $3.1 million and $2.9 million were recorded in the 2013 first
three quarters and the 2012 first three quarters, respectively.
As of November 23, 2012, the Company had approximately $15.7 million of federal
net loss carryforwards available to offset future income tax liabilities, which
begin to expire in 2025. In addition, the Company has the ability to offset
deferred tax assets against deferred tax liabilities created for such items as
depreciation and amortization.
Net income attributable to ETC
Net income attributable to ETC was $4.2 million, or $0.14 diluted earnings per
share, in the 2013 first three quarters, compared to $3.9 million or $0.11
diluted earnings per share, during the 2012 first three quarters, representing
an increase of $231 thousand, or 5.9% in dollars and 27.3% based on diluted
earnings per share. The increase in net income attributable to ETC reflects an
increase in income before income taxes of $364 thousand, a result of a $966
thousand increase in gross profit, which was offset by a $473 thousand increase
in operating expenses and a $212 thousand increase in interest expense, offset
by a $142 thousand increase in the provision for income taxes. The significant
increase in diluted earnings per share was due in part to increased income and
also to reduced shares outstanding following the repurchase of 386 shares of
Series D Preferred Stock, representing all of the Company's issued and
outstanding shares of Series D Preferred Stock, and 9,614 shares of Series E
Preferred Stock, representing a significant portion of the Company's issued and
outstanding Series E Preferred Stock.
Liquidity and capital resources
As a result of the financial restructuring, the Company reduced the amount
outstanding on its line of credit during the 2013 first three quarters. The
Company's availability under its line of credit with PNC Bank at November
23, 2012 was $1.2 million which has increased to $7.7 million at January
3, 2013. The Company expects the availability to increase as several of our
long-term contracts with back loaded cash receipts continue to wind down.
Working capital, or current assets less current liabilities, was $31.6 million
at November 23, 2012 compared with $27.8 million at February 24, 2012. The
increase in working capital was primarily the result of an increase in accounts
receivable, which increased due to certain milestones on long-term contracts
becoming billable, offset in part, by an increase in the current portion of
long-term debt obligations due to the recently entered into Term Loan. The
Company's current ratio, current assets divided by current liabilities, improved
to 2.7:1 at November 23, 2012 from 2.4:1 at February 24, 2012.
______________
Forward-looking Statements:
This press release contains forward-looking statements, which are based on
management's current expectations and are subject to uncertainties and changes
in circumstances. Words and expressions reflecting something other than
historical fact are intended to identify forward-looking statements, but are not
the exclusive means of identifying such statements. The Company's actual
results could differ materially from those anticipated in forward-looking
statements as a result of a variety of factors, including those discussed in
"Risk Factors" included in the Company's most-recent Annual Report on Form
10-K
and Quarterly Report on Form 10-Q filed with the United States Securities and
Exchange Commission. We caution you not to place undue reliance on these
forward-looking statements.
Contact: Bob Laurent, CFO
Phone: 215-355-9100 (Ext. 1550)
E-mail:
rlaurent@etcusa.com
###
- Financial Tables Follow -
Table A
ENVIRONMENTAL TECTONICS CORPORATION
SUMMARY TABLE OF RESULTS
(amounts in thousands, except per share information)
Thirteen weeks ended Variance
------------------------------- ------------------------
23-Nov-12 25-Nov-11 $ %
--------------- --------------- ----------------- ------
Net sales $ 15,148 $ 17,259 $ (2,111) -12.2
Cost of goods sold 8,657 11,606 (2,949) -25.4
--------------- --------------- ----------------- ------
Gross profit $ 6,491 $ 5,653 $ 838 14.8
Gross profit
margin % 42.9% 32.8% 10.1% 30.8%
Selling and marketing
expenses 1,508 1,386 122 8.8
General and
administrative
expenses 2,038 2,060 (22) -1.1
Research and
development expenses 258 171 87 50.9
--------------- --------------- ----------------- ------
Operating expenses 3,804 3,617 187 5.2
--------------- --------------- ----------------- ------
Operating income $ 2,687 $ 2,036 $ 651 32.0
Operating margin
% 17.7% 11.8% 5.9% 50.0%
Interest expense, net 319 195 124 63.6
Other expense, net 91 26 65 250.0
--------------- --------------- ----------------- ------
Income before income
taxes $ 2,277 $ 1,815 $ 462 25.5
Pre-tax income
margin % 15.0% 10.5% 4.5% 42.9%
Provision for income
taxes 1,074 996 78 7.8
--------------- --------------- ----------------- ------
$
Net income $ 1,203 819 $ 384 46.9
Income attributable to
non-controlling
interest (25) (10) (15) 150.0
--------------- --------------- ----------------- ------
Net income $
attributable to ETC $ 1,178 809 $ 369 45.6
Preferred Stock
dividend (286) (552) 266 -48.2
--------------- --------------- ----------------- ------
Income applicable to
common and
participating $ $
shareholders 892 257 $ 635 247.1
--------------- --------------- ----------------- ------
Basic earnings per
common and
participating
share:
Distributed
earnings per share:
$ $ $
Common - - -
--------------- --------------- ----------------- ------
$ $ $
Preferred 0.04 0.05 (0.01) -20.0
--------------- --------------- ----------------- ------
Undistributed
earnings per share:
$ $
Common 0.05 0.01 $ 0.04 400.0
--------------- --------------- ----------------- ------
$ $
Preferred 0.05 0.01 $ 0.04 400.0
--------------- --------------- ----------------- ------
Diluted earnings per $ $
share 0.05 0.01 $ 0.04 400.0
--------------- --------------- ----------------- ------
Total basic weighted
average common and
participating shares 17,151 20,213
Total diluted weighted
average shares 17,317 20,500
Table B
ENVIRONMENTAL TECTONICS CORPORATION
SUMMARY TABLE OF RESULTS
(amounts in thousands, except per share information)
Thirty-nine weeks ended Variance
--------------------------------- -----------------------
23-Nov-12 25-Nov-11 $ %
---------------- ---------------- ---------------- ------
Net sales $ 47,720 $ 49,384 $ (1,664) -3.4
Cost of goods sold 28,684 31,314 (2,630) -8.4
---------------- ---------------- ---------------- ------
Gross profit $ 19,036 $ 18,070 $ 966 5.3
Gross profit
margin % 39.9% 36.6% 3.3% 9.0%
Selling and marketing
expenses 4,125 4,013 112 2.8
General and
administrative
expenses 5,943 5,935 8 0.1
Research and
development expenses 905 552 353 63.9
---------------- ---------------- ---------------- ------
Operating expenses 10,973 10,500 473 4.5
---------------- ---------------- ---------------- ------
Operating income $ 8,063 $ 7,570 $ 493 6.5
Operating margin
% 16.9% 15.3% 1.6% 10.5%
Interest expense, net 764 552 212 38.4
Other expense, net 27 110 (83) -75.5
---------------- ---------------- ---------------- ------
Income before income
taxes $ 7,272 $ 6,908 $ 364 5.3
Pre-tax income
margin % 15.2% 14.0% 1.2% 8.6%
Provision for income
taxes 3,082 2,940 142 4.8
---------------- ---------------- ---------------- ------
Net income $ 4,190 $ 3,968 $ 222 5.6
Income attributable
to non-controlling
interest (19) (28) 9 -32.1
---------------- ---------------- ---------------- ------
Net income
attributable to ETC $ 4,171 $ 3,940 $ 231 5.9
Preferred Stock
dividend (1,390) (1,656) 266 -16.1
---------------- ---------------- ---------------- ------
Income applicable to
common and
participating
shareholders $ 2,781 $ 2,284 $ 497 21.8
---------------- ---------------- ---------------- ------
Basic earnings per
common and
participating
share:
Distributed
earnings per share:
$ $ $
Common - - -
---------------- ---------------- ---------------- ------
$
Preferred $ 0.14 $ 0.15 (0.01) -6.7
---------------- ---------------- ---------------- ------
Undistributed
earnings per share:
$
Common $ 0.14 $ 0.11 0.03 27.3
---------------- ---------------- ---------------- ------
$
Preferred $ 0.14 $ 0.11 0.03 27.3
---------------- ---------------- ---------------- ------
Diluted earnings per $
share $ 0.14 $ 0.11 0.03 27.3
---------------- ---------------- ---------------- ------
Total basic weighted
average common and
participating shares 19,206 20,206
Total diluted
weighted average
shares 19,363 20,508
Table C
ENVIRONMENTAL TECTONICS CORPORATION
SEGMENT DATA
(amounts in thousands)
Thirteen weeks ended Variance
---------------------------- ----------------------
23-Nov-12 25-Nov-11 $ %
-------------- ------------- --------------- ------
Net sales:
Aerospace Solutions
$ $ $
Domestic 543 583 (40) -6.9
U.S. Government 5,390 6,818 (1,428) -20.9
International 4,636 5,459 (823) -15.1
-------------- ------------- --------------- ------
$
Subtotal $ 10,569 12,860 $ (2,291) -17.8
-------------- ------------- --------------- ------
Commercial/Industrial
Systems
$ $ $
Domestic 3,762 3,441 321 9.3
U.S. Government - - -
International 817 958 (141) -14.7
-------------- ------------- --------------- ------
$ $ $
Subtotal 4,579 4,399 180 4.1
-------------- ------------- --------------- ------
-------------- ------------- --------------- ------
$
Total net sales $ 15,148 17,259 $ (2,111) -12.2
-------------- ------------- --------------- ------
Operating income:
$ $
Aerospace Solutions 2,887 1,848 $ 1,039 56.2
Commercial/Industrial
Systems 718 884 (166) -18.8
Corporate (918) (696) (222) 31.9
-------------- ------------- --------------- ------
$ $ $
Total 2,687 2,036 651 32.0
-------------- ------------- --------------- ------
Operating margin:
Aerospace Solutions 27.3% 14.4%
Commercial/Industrial
Systems 15.7% 20.1%
Corporate -6.1% -4.0%
Total 17.7% 11.8%
Depreciation and
amortization:
$ $ $
Aerospace Solutions 341 339 2 0.6
Commercial/Industrial
Systems 109 110 (1) -0.9
Corporate 11 37 (26) -70.3
-------------- ------------- --------------- ------
$ $ $
Total 461 486 (25) -5.1
-------------- ------------- --------------- ------
Table D
ENVIRONMENTAL TECTONICS CORPORATION
SEGMENT DATA
(amounts in thousands)
Thirty-nine weeks ended Variance
----------------------------- ----------------------
23-Nov-12 25-Nov-11 $ %
-------------- -------------- --------------- ------
Net sales:
Aerospace Solutions
$ $
Domestic 1,193 1,896 $ (703) -37.1
U.S. Government 18,520 22,935 (4,415) -19.3
International 12,473 12,590 (117) -0.9
-------------- -------------- --------------- ------
Subtotal $ 32,186 $ 37,421 $ (5,235) -14.0
-------------- -------------- --------------- ------
Commercial/Industrial
Systems
$
Domestic $ 13,581 9,159 $ 4,422 48.3
U.S. Government - - -
International 1,953 2,804 (851) -30.3
-------------- -------------- --------------- ------
Subtotal $ 15,534 $ 11,963 $ 3,571 29.9
-------------- -------------- --------------- ------
-------------- -------------- --------------- ------
Total net sales $ 47,720 $ 49,384 $ (1,664) -3.4
-------------- -------------- --------------- ------
Operating income:
$ $ $
Aerospace Solutions 6,899 6,800 99 1.5
Commercial/Industrial
Systems 3,385 2,932 453 15.5
Corporate (2,221) (2,162) (59) 2.7
-------------- -------------- --------------- ------
$ $ $
Total 8,063 7,570 493 6.5
-------------- -------------- --------------- ------
Operating margin:
Aerospace Solutions 21.4% 18.2%
Commercial/Industrial
Systems 21.8% 24.5%
Corporate -4.7% -4.4%
Total 16.9% 15.3%
Depreciation and
amortization:
$ $ $
Aerospace Solutions 921 924 (3) -0.3
Commercial/Industrial
Systems 415 283 132 46.6
Corporate 39 49 (10) -20.4
-------------- -------------- --------------- ------
$ $
Total 1,375 1,256 $ 119 9.5
-------------- -------------- --------------- ------
Table E
ENVIRONMENTAL TECTONICS CORPORATION
OTHER SELECTED FINANCIAL HIGHLIGHTS
(amounts in thousands)
Thirteen weeks ended Thirty-nine weeks ended
------------------------------- --------------------------
23-Nov-12 25-Nov-11 23-Nov-12 25-Nov-11
--------------- --------------- ------------- ------------
$ $
EBITDA $ 3,057 $ 2,496 9,411 8,716
As of
-------------------------------
23-Nov-12 24-Feb-12
--------------- ---------------
Working capital $ 31,588 $ 27,786
Total shareholders' $ 23,655 $ 30,825
equity
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