TTLO has traded 75,000 by 3.25p...very unusual...top tick so far .61:
(COMTEX) B: TOROTEL INC - Higher Sales, Operating Earnings for Second Qu
B: TOROTEL INC - Higher Sales, Operating Earnings for Second Quarter, Six
Months - Extraordinary Item Increases Net Earnings
New York, New York, Dec 14, 2001 (Market News Publishing via COMTEX) --
Torotel, Inc., a manufacturer of precision magnetic components, reported higher
sales and significant improvements in earnings, even before an extraordinary
item, for the three and six months ended October 31, 2001.
Strong Operating Results for Quarter, First Half
Net sales for the second quarter were $1,017,000, up 21 percent compared with
$840,000 for last year's three months. Earnings from operations more than
doubled to $189,000 from $77,000. Earnings before the extraordinary item were
$182,000, or 7 cents per diluted share, nearly three-times higher than the
$62,000, or 2 cents per diluted share, for the second quarter last year. In
addition, the settlement with a former executive on a promissory note resulted
in a credit to earnings in the second quarter. This extraordinary item increased
net earnings to $593,000, or 21 cents per diluted share.
Net sales for the first half of fiscal 2002 were $1,962,000, up 16 percent
compared with $1,695,000 for last year's six months. Earnings from operations
more than doubled to $350,000 from $147,000. Earnings before the extraordinary
item were $336,000, or 12 cents per diluted share, nearly three-times higher
than the $113,000, or 4 cents per diluted share, for the first half last year.
For the year-to-date, three old liabilities were settled at amounts lower than
originally recorded. This extraordinary item increased net earnings to $774,000,
or 27 cents per diluted share.
Solid Quarter; Optimistic on Sales Outlook
H. James Serrone, chief financial officer and general manager, said: "Second
quarter revenues for the operating company - Torotel Products, Inc. - exceeded
the $1 million level for the first time in three years. The combination of
higher revenues and the effects of improved operating efficiencies led to
another strong earnings performance. Our earnings before interest, taxes and
depreciation (EBITD) as a percentage of sales was nearly 20 percent for the
quarter, compared with nearly 12 percent at this time last year.
"While the terrorist attack of September 11 has not affected our order bookings,
some aerospace customers have rescheduled certain existing orders for a later
shipping date. However, we are heading into the second half of fiscal 2002 with
a backlog level similar to what we saw a year ago. As a result, we remain
optimistic about the sales outlook for the rest of this fiscal year," Serrone
concluded.
Torotel, Inc. specializes in the design and manufacture of a wide range of
precision magnetic components, including transformers, inductors, reactors,
chokes and toroidal coils. These are used in commercial, industrial and military
electronics to modify and control electrical voltages and currents. Torotel's
products are sold to original equipment manufacturers for use in avionics
equipment, conventional missile guidance systems, computers, medical equipment,
telecommunications systems, and digital control devices.
This news release includes forward-looking statements, as defined by the Private
Securities Litigation Reform Act of 1995, which are subject to the safe harbor
created by that Act. These statements are based on assumptions about a number of
important factors and involve risks and uncertainties that could cause actual
results to be different from what is stated here. These risk factors include
decreased demand for products, delays in developing new products, expected
orders that do not occur, and loss of key customers. Other risk factors are
detailed from time to time in Torotel's Securities and Exchange Commission
filings.
TOROTEL, INC.
Operating Data
(In Thousands, Except per Share)
Condensed Statements of Operations
(Unaudited) (Unaudited)
Six Months Ended Three Months Ended
October 31, October 31,
2001 2000 2001 2000
Net Sales $ 1,962 $ 1,695 $ 1,017 $ 840
Gross Profit $ 855 $ 618 $ 449 $ 314
Earnings from Operations $ 350 $ 147 $ 189 $ 77
Earnings before Provision for
Taxes and Extraordinary Item $ 336 $ 113 $ 182 $ 62
Earnings before
Extraordinary Item $ 336 $ 113 $ 182 $ 62
Extraordinary Item:
Gain on settlements of debt $ 438 $ - $ 411 $ -
Net Earnings $ 774 $ 113 $ 593 $ 62
Basic and Diluted Earnings
per Share:
Earnings before
Extraordinary Item $ 0.12 $ 0.04 $ 0.07 $0.02
Extraordinary Item $ 0.15 $ - $ 0.14 $ -
$ 0.27 $ 0.04 $ 0.21 $0.02
Weighted Average
Shares Outstanding 2,811 2,811 2,811 2,811
Condensed Balance Sheet
(Unaudited) (Audited)
October 31, April 30,
2001 2001
Working Capital $ 180 $ (120)
Current Ratio 1.16:1 .90:1
Quick Ratio .77:1 .60:1
Total Assets $ 1,673 $ 1,636
Short-term Debt $ 150 $ 195
Long-term Debt $ 466 $ 1,036
Total Liabilities $ 1,570 $ 2,307
Stockholders' Equity (Deficit) $ 103 $ (671)
CONTACT: TEL: 816/761-6314, ext. 3024 Jim Serrone, Torotel, Inc.
MarketbyFax(tm) - To get the NEWS as it happens, call (604) 689-3041.
(C) 2001 Market News Publishing Inc.
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KEYWORD: New York, New York
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