Hi-Shear Reports 2002 Year-End Results
4:34pm ET (BusinessWire)
Hi-Shear Technology Corporation, Torrance, CA (AMEX:HSR) today announced results for its fiscal year ending May 31, 2002. Net Income of $1,121,000 or $0.17 per share was reported as compared to net loss of $988,000 or $0.15 per share reported for fiscal year 2001. Revenue for the year was $15,372,000 as compared to $12,065,000 for the same period last year.
A consistent quarterly revenue flow during the year supported by increased customer requirements for Hi-Shear military, satellite and launch vehicle components resulted in a 27% revenue growth over fiscal 2001. Productivity improvements and production efficiencies also contributed to both the increase in revenues and lower costs. Gross Margin increased to $4,034,000 or 26% of revenues as compared to $2,672,000 or 22% of revenues in fiscal year 2001. Net Income of $1,121,000 reflected the higher volume of product revenue, lower interest costs and the write off of unamortized negative goodwill.
Mr. George W. Trahan, President & CEO, commented, "We are pleased to note that space and defense activity has increased during the year and a resurgence of demand was evident through growing orders received. The strength of our aerospace and defense related business, bolstered by the nation's renewed focus on defense and homeland security, remains the nucleus for future growth in revenues and profits."
Hi-Shear Technology Corporation provides aerospace and defense products in applications where safety, performance and high reliability are essential. It develops and produces advanced systems and products that are primarily used worldwide in space satellites, launch vehicles, and government programs.
This release, as it relates to product announcements and other Company matters, contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks related to market acceptance of and demand for the Company's new products, dependence on the uncertainty of government budgetary issues, primary government contracts, and intellectual property rights.
The Company's Form 10-KSB will be filed with the Securities and Exchange Commission on or about August 29, 2002. After filing, it will be available through Edgar and for download through Hi-Shear's website, www.hstc.com. For further information regarding this release, please contact Ms. Linda A. Nespole at (310) 784-7821. BALANCE SHEET
May 31, 2002
ASSETS
Current Assets
Cash and cash equivalents $ 113,000
Accounts receivable 7,862,000
Claims receivable 364,000
Inventories 2,647,000
Deferred income taxes 700,000
Prepaid expenses and other current assets 177,000
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Total current assets 11,863,000
Land 846,000
Equipment, net 2,174,000
Deferred income taxes 901,000
Intangible assets, net 66,000
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$15,850,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Bank line of credit $ 3,371,000
Current portion of long-term notes payable 430,000
Trade accounts payable 1,353,000
Accrued payroll and related costs 638,000
Deferred revenue 89,000
Other accrued liabilities 434,000
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Total current liabilities 6,315,000
Long-Term Notes Payable, less current portion 69,000
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Total liabilities 6,384,000
Stockholders' Equity
Preferred stock $1.00 par value; 500,000 shares
authorized; no shares issued --
Common stock, $.001 par value; 25,000,000 shares
authorized; 6,670,000 shares issued and outstanding 7,000
Additional paid-in capital 7,193,000
Retained earnings 2,266,000
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Total stockholders' equity 9,466,000
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$15,850,000
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STATEMENTS OF OPERATIONS
Year Ended May 31
2002 2001
Revenues $15,372,000 $12,065,000
Cost of Revenues 11,338,000 9,393,000
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Gross Margin 4,034,000 2,672,000
Selling, General and Administrative Expenses 2,830,000 2,793,000
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Operating Income (Loss) 1,204,000 (121,000)
Interest Expense 359,000 617,000
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Income (Loss) before Income Tax Expense and
Cumulative Effect of Accounting Change 845,000 (738,000)
Income Tax Expense (Benefit) 0 250,000
----------- -----------
Income (Loss) before Cumulative Effect of
Accounting Change 845,000 (988,000)
Cumulative Effect of Accounting Change 276,000 0
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Net Income (Loss) $ 1,121,000 $ (988,000)
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Basic Earnings (Loss) per Common Share and
Per Common Share Assuming Dilution:
Income (Loss) before Cumulative Effect of
Accounting Change $ 0.13 $ (0.15)
Cumulative Effect of Accounting Change 0.04 --
----------- -----------
Net Income (Loss) $ 0.17 $ (0.15)
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Weighted Number of Common Shares Outstanding:
Basic 6,670,000 6,670,000
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Diluted 6,673,000 6,670,000
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Hi-Shear Technology Corporation, Torrance
Linda A. Nespole, 310/784-7821
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