Orbit International Corp. Reports First Quarter Results
biz.yahoo.com
Thursday May 5, 8:30 am ET
Sales Increase by 20%
Earnings Increase by 29%
Results Do Not Include New Tulip Subsidiary
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 5, 2005--Orbit International Corp.
Backlog Up 56% from the Prior Year Inclusive of New Tulip Acquisition
Reiterates 2005 Guidance Without Change
Orbit International Corp., a supplier of military and defense electronics, today announced results for the first quarter ended March 31, 2005.
The results for the first quarter do not include the operations of Orbit's recent acquisition, Tulip Development Laboratory, Inc and its manufacturing affiliate, TDL Manufacturing, Inc. ("Tulip") that was completed on April 4, 2005.
First Quarter 2005 vs. First Quarter 2004
Net sales increased 20% to $5,403,000 from $4,498,000;
Gross margin was 43.8% compared to 44.6%;
Earnings before interest, taxes, depreciation and amortization, and amortization of unearned compensation (EBITDA) increased by 35% to $692,000 ($.22 per diluted share) compared to $512,000 ($.16 per diluted share);
Net income increased by 29% to $629,000, or $.20 per diluted share, compared to $489,000, or $.16 per diluted share.
During the quarter, selling, general and administrative expenses increased by $230,000 from the prior year, of which $140,000 was for compliance costs associated with the internal controls and procedures requirements of the Sarbanes-Oxley Act of 2002. The Company expects lower compliance costs for the remaining quarters of 2005.
Backlog at March 31, 2005, inclusive of Tulip's $4.5 million, increased by 56% to approximately $15.2 million compared to $9.7 million a year ago principally due to the timing of the receipt of several large contracts. Excluding Tulip, backlog increased by approximately 10% from the prior year.
The Company's balance sheet remains strong. At March 31, 2005, total current assets were $14.2 million versus total current liabilities of $2.7 million for a 5.2 to 1 current ratio.
In addition, the Company reaffirmed its guidance for the 2005 year as stated in its press release of April 5, 2005.
Dennis Sunshine, President and Chief Executive Officer, commented, "Exclusive of our compliance costs related to Sarbanes-Oxley, our net income would have increased by 57% from the prior year as we continue to attain significant operating leverage from our increase in sales. These excellent operating results were principally due to significantly higher sales from our Power Units Segment."
Sunshine continued, "The results for the quarter do not include the operations of Tulip which was acquired in April 2005. With the consolidation of their results for the remainder of 2005 and with the increased backlogs from our core businesses, we are confident that operating results for 2005 will be extremely strong." |
