Orbit International Corp. Reports Fourth Quarter and Year End Results
biz.yahoo.com
Thursday March 9, 8:40 am ET
2005 EBITDA Increases by 89% on 35% Increase in Sales
Year End Backlog up 20%
January Backlog up 39%
Issues Guidance for 2006
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--March 9, 2006--Orbit International Corp. (NASDAQ:ORBT), an electronics manufacturer and supplier, today announced results for the fourth quarter and year ended December 31, 2005. The results of operations of Orbit's acquisition, Tulip Development Laboratory, Inc. and its manufacturing affiliate, TDL Manufacturing, Inc. ("Tulip") are included as of April 4, 2005, the date the transaction was consummated.
Year End 2005(1) vs. Year End 2004(1)
Net sales increased 34.7% to $24,254,000 from $18,012,000; exclusive of Tulip, sales increased by 4.0%;
Gross margin rose to 44.7% compared to 43.0%;
Earnings before interest, taxes, depreciation and amortization, and amortization of unearned compensation (EBITDA) increased by 88.6% to $3,710,000 ($.83 per diluted share) compared to $1,967,000 ($.50 per diluted share);
Pre tax income rose 47.7% to $2,714,000 compared with $1,837,000;
Net income increased to $2,684,000, or $.60 per diluted share from $1,937,000, or $.50 per diluted share, which included a $100,000 income tax benefit in the prior year; and,
Backlog increased by 20.0% to approximately $13.1 million compared to $10.9 million.
Fourth Quarter 2005(1) vs. Fourth Quarter 2004(1)
Net sales increased 21.9% to $5,625,000 from $4,614,000;
Gross margin rose to 45.0% compared to 41.5%;
EBITDA increased by 65.2% to $793,000 ($.17 per diluted share) compared to $480,000 ($.12 per diluted share); and,
Net income totaled $459,000, or $.10 per diluted share as compared to $420,000 or $.11 per diluted share.
(1) Per share amounts have been adjusted for the 25% stock dividend effective July 18, 2005.
**Per share calculations for the 2005 three and twelve month periods are based upon 18.3% and 14.6% more shares than in the corresponding periods of 2004.
Dennis Sunshine, President and Chief Executive Officer, commented, "We are very proud of our operating performance and financial results for the fourth quarter and year ended December 31, 2005, which again demonstrates the operating leverage inherent in our business. We closed the year with a 20% increase in our backlog compared to one year earlier. By the end of January, our backlog was $15.8 million, 39% ahead of January 31, 2005. Our backlog includes follow-on orders for existing programs as well as orders for new programs. We have successfully imbedded our hardware on a number of new airborne, shipboard and GPS programs, as well as a significant number of legacy retrofit programs. We expect our strong operating results to continue in 2006 and we continue to aggressively pursue strategic, accretive acquisitions that will further enhance the growth of our Company."
Mitchell Binder, Chief Financial Officer, also commented, "We have a strong balance sheet to support continued growth, supplemented by $2,900,000 in operating cash flow generated in 2005. At December 31, 2005, total current assets were $18,609,000 versus total current liabilities of $3,770,000, a 4.9 to 1 current ratio. We entered 2006 with approximately $25 million in net operating loss carryforwards to shield profits from federal and state taxes and enhance future cash flow."
Mr. Binder added, "We met or exceeded our guidance for 2005 with the exception of diluted earnings per share due to a larger than projected amount of weighted shares outstanding. This increase was principally due to a large number of stock option exercises during the year and the dilutive effect of the increase in our share price on the weighted shares outstanding."
Discussing the outlook for 2006, he noted, "For the year ending December 31, 2006, we expect net sales to be in the range of $25.8 million to $26.4 million, up from $24.3 million in 2005. Earnings before interest, taxes, depreciation and amortization, and amortization of unearned compensation (EBITDA) are expected to be between $4,100,000 and $4,400,000, as compared to $3,710,000 in 2005. Net income is expected to be between $3,000,000 and $3,300,000, equal to between $.64 and $.70 per diluted share and assumes a 6% increase in the weighted shares outstanding. In 2005, net income was $2,684,000 or $.60 per diluted share." |
