TTLO (OTC BB .65 up .33 today...top tick 1.01) 2.8m shares outstanding. Here is brief overview along w/1st qtr. Also last year...note earnings up by 6x to $317,000 or 11 cents for year on rise in rev (close matchw/prior year on final income figure due to extraordinary gain prior year). Given guidance last year and 1st qtr results just out it appears they are booking and achieving greater margins than they may have expected-opinion....straight earn for 1st qtr was 5 cents a share w/rise in rev. Note 1st qtr ref to ongoing Hellfire Missle system components and the upcoming extraordinary gain in this qtr of approx $411k. Point is I have been following them for a long time and things seem very well turned around
with a good forecast coming up and potential add ons from the military side.
TOROTEL PRODUCTS
Products
Torotel Products designs and manufactures a wide variety of magnetic
components for use in military, aerospace and industrial electronic
applications. These magnetic components, which consist of transformers,
inductors, reactors, chokes, and toroidal coils, are used to modify and control
electrical voltages and currents in electronic devices. For example, if
equipment containing one of these components receives an electrical voltage or
current which is too high for proper operation of the equipment, the component
would modify and control the electrical voltage or current to allow proper
operation of the equipment. While Torotel Products primarily manufactures the
components in
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accordance with pre-developed mechanical and electrical requirements, in some
cases it will be responsible for both the overall design and manufacture of the
components. The magnetic components are sold to manufacturers who incorporate
them into an end-product. The major applications include aircraft navigational
equipment, voice and data secure communications, medical equipment, telephone
and avionics equipment, and conventional missile guidance systems.
KANSAS CITY, Mo.--(BUSINESS WIRE)--July 19, 2001--Torotel, Inc. (OTC:TTLO - news), a manufacturer of precision magnetic components, today reported a continued turnaround in operating earnings on higher sales for the fourth quarter and year ended April 30, 2001.
Higher Sales, Productivity Gains Boost Results for Quarter and Year
Net sales for the fourth quarter were $943,000, up 12 percent compared with $839,000 for last year's three months. Earnings from operations doubled to $138,000 from $66,000. Net earnings were $120,000, or 4 cents per diluted share, compared with $431,000, or 15 cents per diluted share, for the fourth quarter of fiscal 2000. The prior-year period included a gain from the settlement with the U.S. government of $386,000, or 15 cents per diluted share.
For fiscal 2001, net sales were $3.48 million, up 5 percent compared with $3.32 million last year. Earnings from operations were nearly six times higher, at $382,000 from $66,000 a year ago. This was due to higher gross profit resulting from (1) increased sales volume; (2) lower material and labor costs associated with the product mix, and (3) improved labor productivity, reflecting ongoing efforts to increase throughput and reduce cycle times. Net earnings were $317,000, or 11 cents per diluted share, compared with $375,000, or 13 cents per diluted share, for the prior year. The fiscal 2000 figure included a gain from the settlement mentioned above of $386,000, equal to 15 cents per diluted share.
Higher Bookings, Improved Liquidity
H. James Serrone, chief financial officer and general manager, said: ``Order bookings grew 26 percent during fiscal 2001, which contributed to a 53 percent increase in our magnetics backlog. Our higher earnings -- combined with an eight-day reduction in our operating cycle -- improved liquidity, as shown by the 76 percent increase in our quick ratio.
Torotel Reports Higher Sales, Operating Earnings for First Quarter
Extraordinary Item Adds $27,000 to Earnings
KANSAS CITY, Mo.--(BUSINESS WIRE)--Sept. 14, 2001--Torotel, Inc. (OTC:TTLO - news), a manufacturer of precision magnetic components, today reported higher sales and significant improvements in earnings for the first quarter ended July 31, 2001, even before an extraordinary item.
Strong Operating Results
Net sales for the first quarter were $945,000, up nearly 11 percent compared with $855,000 for last year's three months. Earnings from operations more than doubled to $161,000 from $70,000. Earnings before the extraordinary item were $154,000, or 5 cents per diluted share, three times higher than the $51,000, or 2 cents per diluted share, for the first quarter last year. During the current quarter, two old liabilities were settled at amounts lower than originally recorded. This extraordinary item increased net earnings to $181,000, or 6 cents per diluted share.
Gain on Settlement with Former Executive Deferred to Second
Quarter
In late August, Torotel announced it would record a $411,000 gain in the first quarter as a result of a settlement with a former executive on a promissory note. While the aggregate amount due under the note had been ``in suspense'' since 1997, it was determined that the measurement date for recording the gain is the actual date of the settlement. Since the agreement was finalized in August, the credit to earnings has been deferred until the second quarter ending October 31, 2001.
Solid Quarter; Positive Outlook
H. James Serrone, chief financial officer and general manager, said: ``First quarter revenues increased because we had a higher shippable backlog. The progress we made in the last year to improve throughput - plus greater emphasis in the first quarter on improving our first-pass yields - were key contributors to stronger operating earnings. As a result, our EBITD as a percentage of sales in the first quarter was nearly 19 percent compared with 11 percent for last year's quarter.
``Late in the first quarter, we began to see a slowdown in new orders for our magnetics products, reflecting the soft U.S. economy. This situation was offset by a $177,000 order for the potted coil assembly for the Hellfire II missile system, which will be shipped during the second and third quarters of this fiscal year. As a result, our magnetics backlog remains 32 percent higher than a year ago, which means we still anticipate a slight increase in sales for fiscal 2002,'' Serrone concluded. |
