Tel-Instrument Electronics Corp (“TIC”) (NYSE MKT:TIK) announced results
for its fourth quarter and fiscal year ended March 31, 2014. The Company
reported a 102% increase in annual revenues to $15,828,291 for the year
ended March 31, 2014, and net income before taxes of $704,373. For the
quarter ended March 31, 2014, the Company reported an increase in sales
to $4,504,706 and net income before taxes of $956,709. For the year
ended March 31, 2014, operating income increased to $1,363,902 and net
income increased to $261,528.
This increase in FY 2014 sales is mostly attributed to the shipment of
SETS and KITS for the TS-4530A program against a partial release from
the U.S. Army, an increase in revenues for the Company’s legacy
products, as well as increase in revenues on the CRAFT program. The year
and quarter were also favorably impacted by a contract modification for
the ITATS program that entailed the sale of certain Intellectual
Property (“IP”) to the U.S. Navy, reimbursement of engineering expenses
for product enhancements as well as the discharge of an $800k existing
liability.
The Company also announced the receipt of full rate production approval
for the U.S. Army TS-4530A KITS with deliveries of about $400k per month
to begin in July 2014. The U.S. Army is still working to secure
production approval for the complete SETS and this could take several
additional months. The Company also plans to start shipping the first
Navy ITATS production units starting next week with scheduled deliveries
of about $250k per month. The Company continues to ship the AN/USM-708
CRAFT test sets and should complete the shipment of all of the Ship In
Place units by August. The commencement of TS-4530A and ITATS volume
shipments will augment the Company’s liquidity position as the Company
has a substantial amount of the material in-house to commence production.
The Company currently has approximately $10.0 million of existing orders
on the CRAFT program, and an option to purchase up to $5.4 million of
additional units. The backlog on the TS-4530A program is $19.7 million
and $5.6 million on the ITATS program.
As previously announced, the Company is not currently in compliance with
certain NYSE-MKT’s (the “Exchange”) listing standards. Based on the
information provided by the Company, the Exchange has determined, based
on the information provided, and the improved results that the Company
had made a reasonable demonstration of its ability to regain
compliance. As such, the Company listing is being continued pursuant to
an extension and will continue to be monitored against this plan.
Jeff O’Hara, President and Chief Executive Officer of Tel stated, “We
are pleased to have made solid progress this last year, with strong
revenue growth, a return to modest profitability, and an improved
balance sheet. Completing the CRAFT ship in place units this summer will
allow us to increase CRAFT shipments including some of the higher priced
new orders. While first quarter FY 15 revenues will approximate the year
ago levels, we are anticipating further improvements in revenue and
profitability for FY 2015 due to the two new programs coming on line
next month.”
Investor Conference Call Today at 5 p.m
The Company will host a conference call and webcast today, June 30, 2014
at 5:00 p.m. Eastern Time to discuss the Company’s fiscal fourth quarter
and year end 2014 results.
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.
To access the live webcast, log onto the Tel-Instrument Electronics’
website at https://www.telinstrument.com/learn-about-telinsturment/investor-relations.html.
A replay of the teleconference will be available until July 30, 2014 and
may be accessed by dialing (877) 660-6853. International callers may
dial (201) 612-7415. Callers should use conference ID: 13585727.
We encourage everyone to read our full results of operations contained
in our Form 10-K filed on June 30, 2014 at sec.gov.
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.
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 Company’s 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 Company’s 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 Company’s previous filings with the
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.
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TEL-INSTRUMENT ELECTRONICS CORP
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Consolidated Balance Sheets
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ASSETS
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March 31,
2014
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March 31,
2013
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Current assets:
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|
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Cash
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$
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232,118
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$
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310,297
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Accounts receivable, net of allowance for doubtful accounts of
$27,282 and $18,940, respectively
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2,095,640
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557,879
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Inventories, net
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4,025,391
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6,241,181
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Prepaid expenses and other current assets
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263,592
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|
|
115,852
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Deferred financing costs
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|
108,321
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|
|
|
108,321
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Deferred tax asset
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1,089,538
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1,238,421
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Total current assets
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7,814,600
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8,571,951
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Equipment and leasehold improvements, net
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450,873
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587,958
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Deferred financing costs – long-term
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48,142
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156,463
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Deferred tax asset – non-current
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2,273,068
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2,546,190
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Other assets
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47,670
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56,872
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Total assets
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$
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10,634,353
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$
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11,919,434
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Current portion of long-term debt
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$
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718,848
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$
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1,229,643
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Capital lease obligations – current portion
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53,608
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74,508
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Accounts payable
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2,289,858
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4,272,431
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Progress billings
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775,475
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-
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Deferred revenues – current portion
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37,452
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18,460
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Accrued expenses - vacation pay, payroll and payroll withholdings
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444,238
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442,522
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Accrued expenses - related parties
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123,036
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100,536
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Accrued expenses – other
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919,287
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1,425,002
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Total current liabilities
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5,361,802
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7,563,102
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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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21,320
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76,055
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Long-term debt, net of debt discount
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596,526
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1,134,549
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Warrant liability
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354,309
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|
|
198,330
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Deferred revenues – long-term
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133,650
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1,045
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Other long-term liabilities
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56,100
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-
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Total liabilities
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6,773,707
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9,223,081
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Commitments and contingencies
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Stockholders’ equity
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Common stock, 4,000,000 shares authorized, par value $.10 per
share, 3,251,387 and 3,011,739 shares issued and outstanding,
respectively
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325,136
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301,171
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Additional paid-in capital
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7,987,100
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7,108,300
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Accumulated deficit
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(4,451,590
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)
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(4,713,118
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)
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Total stockholders’ equity
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3,860,646
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2,696,353
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Total liabilities and stockholders’ equity
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$
|
10,634,353
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$
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11,919,434
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TEL-INSTRUMENT ELECTRONICS CORP
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Consolidated Statements of Operations
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For the years ended March 31,
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2014
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2013
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Net sales
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$
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15,828,291
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$
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7,827,258
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Cost of sales
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9,464,404
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6,866,036
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Gross margin
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6,363,887
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961,222
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Operating expenses:
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Selling, general and administrative
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3,146,647
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2,564,637
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Engineering, research and development
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1,853,338
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2,149,591
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Total operating expenses
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4,999,985
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4,714,228
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Income (loss) from operations
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1,363,902
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(3,753,006
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)
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Other income (expense):
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Amortization of debt discount
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(104,644
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)
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(129,763
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)
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Amortization of deferred financing costs
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(108,321
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)
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(219,662
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)
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Change in fair value of common stock warrants
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(114,869
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)
|
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294,785
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Loss on extinguishment of debt
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(26,600
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)
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-
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Interest income
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|
|
226
|
|
|
|
434
|
|
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Interest expense
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|
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(275,321
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)
|
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(478,939
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)
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Interest expense - related parties
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(30,000
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)
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(30,000
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)
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Total other expense
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(659,529
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)
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(563,145
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)
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Income (loss) before income taxes
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704,373
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(4,316,151
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)
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Provision (benefit) for income taxes
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442,845
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(1,543,580
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)
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Net income (loss)
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$
|
261,528
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$
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(2,772,571
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)
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Basic income (loss) per common share
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$
|
0.08
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$
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(0.98
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)
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Diluted income (loss) per common share
|
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$
|
0.10
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$
|
(0.98
|
)
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|
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Weighted average number of shares outstanding
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|
|
|
|
|
|
|
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Basic
|
|
|
3,204,028
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|
|
|
2,834,257
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Diluted
|
|
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3,228,894
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2,834,257
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Copyright Business Wire 2014