SOURCE: IEC Electronics

IEC Electronics

November 09, 2010 08:20 ET

IEC Announces Strong Results for the Fourth Quarter and Fiscal 2010

NEWARK, NY--(Marketwire - November 9, 2010) -  Electronics Corp. (NYSE Amex: IEC)

  • Revenue for Q4 fiscal 2010 increased 49 percent to $27.3 million from $18.3 million in Q4 2009

  • Operating income for Q4 fiscal 2010 increased 50 percent to $2.1 million or 7.8% of revenue as compared to $1.4 million or 7.7% for Q4 fiscal 2009

  • Revenue for fiscal 2010 increased 43 percent to $96.7 million from $67.8 million for fiscal 2009

  • Operating income for fiscal 2010 increased 60 percent to $7.7 million or 8% of revenue as compared to $4.8 million or 7% of revenue for fiscal 2009

IEC Electronics Corp. (NYSE Amex: IEC) announced its results for the fourth quarter and fiscal year ending September 30, 2010.

For the quarter, the Company reported revenue of $27.3 million and operating income of $2.1 million. This compares with revenue of $18.3 million and operating income of $1.4 million for the same quarter of fiscal 2009. Fourth quarter net income after tax was $1.6 million, or $0.17 per diluted share compared to net income after tax of $0.9 million or $0.09 per diluted share in the prior year period.

For fiscal year 2010, IEC reported revenue of $96.7 million and operating income of $7.7 million. This compares to revenue of $67.8 million and operating income of $4.8 million for fiscal 2009. Net income after tax was $4.7 million, or $0.48 per diluted share, for year end 2010 compared to net income after tax of $5.0 million or $0.52 per diluted share, for fiscal 2009. The $0.52 per diluted share included a tax benefit of $1.9 million (equivalent to $0.20 per share). Excluding the $1.9 million tax benefit, the net income after tax for 2009 would have been $3.1 million, or $0.32 per diluted share.

W. Barry Gilbert, Chairman of the Board and CEO, stated, "2010 was a strong year for us as we continue to improve our operating performance and make solid inroads into the Medical sector. Our backlog grew substantially despite continued economic turbulence. The fiscal 2010 closing backlog was over $90.0 million as compared to a fiscal 2009 closing backlog of $41.4 million. $20 million of the backlog increase was due to the General Technology and Celmet acquisitions made in December 2009 and July 2010 respectively. More than half of the increase was attributable to organic growth. Our backlog consists of two categories: orders and firm forecasted commitments."

For the fourth quarter of 2010, IEC reported earnings before interest, taxes depreciation and amortization (EBITDA) of $3.0 million or $0.31 per diluted share, compared to EBITDA of $1.5 million or $0.16 per diluted share in the fourth quarter of 2009. For the fiscal year 2010, IEC reported EBITDA of $9.1 million or $0.95 per diluted share as compared to $5.4 million or $0.56 per diluted share for fiscal 2009. The Company views EBITDA as a useful measure of its operating performance as 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 being generated by the Company. IEC has a remaining NOL for federal and state taxes of approximately $34 million.

"Our customer mix has changed somewhat during 2010," Gilbert said. "The Medical sector significantly expanded and now represents 12.6% of revenue ($12.2 million), increasing from 7.7% of revenue ($5.2 million) in fiscal 2009. The Military sector remains strong. It represents 49.0% of revenue ($47.5 million) in fiscal 2010, up from 43.4% of revenue ($29.4 million) in fiscal 2009. Sales to our Industrial customer base increased to $19.4 million, representing 20.0% of 2010 revenue, down proportionally from 24.3% of revenue ($16.5 million) in fiscal 2009. The Industrial sector is recovering slowly, and we are pleased with the results we have achieved in this sector. The Aerospace sector also decreased as a percentage of our business to 9.2% of revenue in fiscal 2010 from 12.0% of revenue in fiscal 2009, but increased in absolute dollars to $8.9 million from $8.1 million.

"Fiscal 2010 saw IEC successfully integrate the acquisitions of General Technology and Celmet," Gilbert continued. "These two acquisitions have improved the strategic position of the Company by broadening our product offerings and diversifying our customer base. We continue to look for companies that could provide a good fit with our strategic vision. Without any acquisitions, we expect revenue growth from our existing business of approximately 17% for fiscal 2011, and expect both our net income and EBITDA to grow commensurately. We believe our Military and Aerospace sectors will remain strong but anticipate that the Industrial sector is likely to remain under pressure for most of 2011. Finally, we believe we can continue to expand our presence in the Medical sector, which, as mentioned above, grew nicely between 2009 and 2010.

"As we have said previously, we firmly believe the Company is continuing to move in the right direction and we are confident that we are creating future value for our customers and shareholders and opportunity for our employees."

IEC Electronics Corporation provides contract electronics manufacturing services to advanced technology companies primarily in the military, aerospace, communications, medical, and industrial sectors. The Company's ultra high reliability capabilities include: design, prototype and volume printed circuit board assembly, material procurement and control, manufacturing and test engineering support, systems build, final packaging and distribution. As a full service EMS provider, AS9100, IEC is ISO-9001:2008 and ISO 13485 registered, and a NSA approved supplier under the COMSEC standard. The Company is headquartered outside Rochester, New York and has operations in Rochester, New York; 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 revenue 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 and 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 our most recent Form 10-Q and Annual Report and Form 10-K and in other filings with the Securities and Exchange Commission.

   
   
   
   
IEC ELECTRONICS CORP - CONSOLIDATED  
BALANCE SHEET  
SEP 30, 2010 AND SEP 30, 2009  
(In Thousands)  
   
  SEP 30, 2010     SEP 30, 2009  
ASSETS          
           
CURRENT ASSETS          
  Cash 0     0  
  Accounts Receivable 16,315     10,354  
  Inventories 12,068     6,491  
  Deferred Income Taxes 3,359     2,050  
  Other Current Assets 234     110  
             
    Total Current Assets 31,976     19,005  
           
NET FIXED ASSETS 13,098     2,391  
           
NON-CURRENT ASSETS          
  Intangible Asset 331     0  
  Deferred Income Taxes 10,113     13,026  
  Other Non-Current Assets 164     47  
           
TOTAL ASSETS 55,682     34,469  
           
LIABILITIES AND SHAREHOLDERS' EQUITY          
           
CURRENT LIABILITIES          
  Short Term Borrowings 2,899     1,147  
  Accounts Payable 8,145     4,183  
  Accrued Payroll and Related Taxes 2,279     1,564  
  Other Accrued Expenses 941     531  
  Other Current Liabilities 0     190  
             
    Total Current Liabilities 14,264     7,615  
           
LONG TERM DEBT 15,999     6,600  
           
TOTAL LIABILITIES 30,263     14,215  
           
SHAREHOLDER'S EQUITY          
    Authorized - 50,000,000 shares          
    Issued - 10,100,589, Outstanding - 9,087,716          
  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 41,138     40,632  
  Retained Earnings (14,407 )   (19,062 )
           
TOTAL SHAREHOLDER'S EQUITY 25,419     20,254  
           
TOTAL LIABILITIES & EQUITY 55,682     34,469  
   
   
   
   
   
IEC ELECTRONICS CORP - CONSOLIDATED  
STATEMENT OF INCOME  
FOR QUARTER END & YTD SEP 30, 2010 AND SEP 30, 2009  
(In Thousands)  
   
  ACTUAL     PRIOR     ACTUAL     PRIOR  
  QUARTER     QUARTER     YTD     YTD  
  SEP 30, 2010     SEP 30, 2009     SEP 30, 2010     SEP 30, 2009  
                               
Sales   27,287       18,273       96,674       67,811  
Cost of Sales   22,511       15,077       80,411       56,985  
                               
Gross Profit   4,776       3,196       16,263       10,826  
                               
Less: Operating Expenses                              
  Selling & G&A   2,654       1,792       8,576       6,006  
  Other   0       0       0       0  
                               
Total Operating Expenses   2,654       1,792       8,576       6,006  
                               
Operating Profit   2,122       1,404       7,687       4,820  
                               
Interest and Financing Expense   220       85       814       389  
Other Expense/(Income)   (387 )     (70 )     (182 )     (287 )
                               
Net Income before Income Taxes   2,289       1,389       7,055       4,718  
                               
  Provision for /(benefit from)Income Tax   661       486       2,400       (238 )
                               
Net Income     1,628         903         4,655         4,956  
                               
                               
Basic Earnings Per Share $ 0.18     $ 0.10     $ 0.52     $ 0.57  
Diluted Earnings Per Share $ 0.17     $ 0.09     $ 0.48     $ 0.52  
                               
                               
Basic Shares   9,086,793       8,683,226       8,990,180       8,728,930  
Diluted Shares   9,599,377       9,621,288       9,608,174       9,553,526  
   
   
   
   
   
IEC ELECTRONICS CORP - CONSOLIDATED  
RECONCILIATION OF NET INCOME TO EBITDA  
FOR QUARTER END & YTD SEP 30, 2010 AND SEP 30, 2009  
(In Thousands)  
   
    ACTUAL   PRIOR   ACTUAL   PRIOR  
    QUARTER   QUARTER   YTD   YTD  
    SEP 30, 2010   SEP 30, 2009   SEP 30, 2010   SEP 30, 2009  
                           
Net Income     1,628     903     4,655     4,956  
                           
Provision for / (benefit from) Income Tax     661     486     2,400     (238 )
                           
Depreciation and Amortization Expense     499     67     1,224     282  
                           
Net Interest Expense / (Income)     220     85     814     389  
                           
EBITDA     3,008     1,541     9,093     5,389  
                           
                           
Basic Earnings Per Share   $ 0.33   $ 0.18   $ 1.01   $ 0.62  
Diluted Earnings Per Share   $ 0.31   $ 0.16   $ 0.95   $ 0.56  
                           
                           
Basic Shares     9,086,793     8,683,226     8,990,180     8,728,930  
Diluted Shares     9,599,377     9,621,288     9,608,174     9,553,526  

Contact Information

  • Contact:
    Heather Keenan
    IEC Electronics Corp.
    (315) 332-4262
    Email Contact

    John Nesbett/Jennifer Belodeau
    Institutional Marketing Services
    (203) 972-9200
    Email Contact