TTLO OTC BB .45 is a tough spread becasue there are only 2.8m outstanding BUT they are a Hellfire Missle supplier and they have a gain coming next qtr of around $440k...plus making a nickel this past qtr below...they are longtime defense supplier:
(BSNS WIRE) Torotel Reports Higher Sales, Operating Earnings for First Quar
Torotel Reports Higher Sales, Operating Earnings for First Quarter;
Extraordinary Item Adds $27,000 to Earnings
Business Editors
KANSAS CITY, Mo.--(BUSINESS WIRE)--Sept. 14, 2001--Torotel, Inc.
(OTC:TTLO), 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.
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.
-0-
*T
TOROTEL, INC.
Operating Data
(In Thousands, Except per Share)
Condensed Statements of Operations
(Unaudited)
Three Months Ended
July 31,
2001 2000
---- ----
Net Sales $ 945 $ 855
Gross Profit $ 406 $ 304
Earnings from Operations $ 161 $ 70
Earnings before Provision for Taxes
and Extraordinary Item $ 154 $ 51
Earnings before Extraordinary Item $ 154 $ 51
Extraordinary Item:
Gain on settlements of debt $ 27 $ -
----- -----
Net Earnings $ 181 $ 51
===== =====
Basic and Diluted Earnings per Share:
Earnings before Extraordinary Item $0.05 $0.02
Extraordinary Item $0.01 $ -
----- -----
$0.06 $0.02
===== =====
Weighted Average Shares Outstanding 2,811 2,811
===== =====
Condensed Balance Sheet
(Unaudited) (Audited)
July 31, April 30,
2001 2001
---- ----
Working Capital $ (477) $ (120)
Current Ratio .72:1 .90:1
Quick Ratio .47:1 .60:1
Total Assets $1,690 $1,636
Short-term Debt $ 294 $ 195
Long-term Debt $ 446 $1,036
Total Liabilities $2,180 $2,307
Stockholders' Deficit $ (490) $ (671)
*T
--30--djm/dx*
CONTACT: Torotel, Inc.
Jim Serrone, 816/761-6314, ext. 3024
KEYWORD: MISSOURI
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS MANUFACTURING
TELECOMMUNICATIONS EARNINGS
SOURCE: Torotel, Inc.
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