Espey Mfg. & Electronics Corp. reports first quarter results

Rhea-AI Summary

Espey Mfg. & Electronics Corp. (NYSE American: ESP) reported its fiscal Q1 2022 results, showing net sales of $7,545,432 compared to $7,265,515 in Q1 2021. The net income rose to $306,061, or $0.13 per diluted share, up from $189,824 or $0.08 per diluted share year-over-year. The company’s backlog increased to approximately $75.2 million from $62 million. New orders totaled $17.1 million, up from $14.3 million in the same quarter last year. CEO Patrick Enright noted ongoing challenges due to the COVID-19 pandemic but expressed commitment to stabilizing operations.

Positive

• Net sales increased by 3.84% year-over-year, from $7.27 million to $7.55 million.
• Net income rose significantly to $306,061, improving from $189,824 year-over-year.
• Backlog increased to approximately $75.2 million, indicating strong future demand.
• New orders grew to $17.1 million, surpassing last year's $14.3 million.

Negative

• Ongoing COVID-19 pandemic impacts may hinder revenue recognition and supply chain performance.
• Potential future surges in COVID-19 could disrupt operations further.

SARATOGA SPRINGS, N.Y., Nov. 15, 2021 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces results for the first three months of fiscal year 2022.

Net sales for the first quarter of fiscal year 2022, July 1 to September 30, 2021, were $7,545,432, compared with last year's first quarter net sales of $7,265,515. Net income for the quarter was $306,061, $0.13 per diluted share, as compared to net income of $189,824, $0.08 per diluted share for the same quarter last year.

The backlog for the Company was approximately $75.2 million at September 30, 2021, compared with last year's backlog of $62 million at September 30, 2020. New orders in the first three months of fiscal year 2022 were approximately $17.1 million, compared with new orders in the first three months of fiscal year 2021 of $14.3 million.

Mr. Patrick Enright, President and CEO, commented,

A strong start of $17 million in new orders during the first quarter of fiscal year 2022 provides the company with a stable base of over $75 million in backlog, with contracted delivery dates spanning the next few years. The slight uptick in net sales translated into a commensurate increase in net income as compared to the same period last fiscal year. These results indicate that although the effects of the COVID pandemic remain a key driver in revenue recognition moving into future quarters, the company and our supply base are working to stabilize operations in this challenging environment.

The company’s ability to turn work-in-process and inventory into revenue will continue to follow the ebbs and flows of the pandemic’s impact on our extended community. As an example, the surge attributed to the Delta variant of COVID 19 slowed the acceleration of improvement seen in the last month of fiscal year 2021 and the first month of this fiscal year. A similar surge as winter hits our region could further slow the improvement we are seeing in the performance of our suppliers as well as our in-house operations. Regardless of the impacts levied by the pandemic, the Espey team will continue to find innovative ways to execute on our backlog and strive to increase our sales revenue in the coming quarters. As always, I appreciate the continued support shown by all the stakeholders of Espey’s success.

Espey's primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the Internet at www.espey.com.

For further information, contact Mr. David O’Neil (518)245-4400.

This press release may contain certain statements that are "forward-looking statements" and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company's current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.

FAQ

What were Espey Mfg. & Electronics Corp.'s Q1 2022 net sales?

Espey Mfg. & Electronics Corp. reported net sales of $7,545,432 for Q1 2022.

How much was Espey Mfg. & Electronics Corp.'s net income for Q1 2022?

The net income for Q1 2022 was $306,061, which equates to $0.13 per diluted share.

What was the backlog for Espey Mfg. & Electronics Corp. as of September 30, 2021?

The backlog was approximately $75.2 million as of September 30, 2021.

How do new orders in Q1 2022 compare to last year for Espey Mfg. & Electronics Corp.?

New orders in Q1 2022 were approximately $17.1 million, compared to $14.3 million in Q1 2021.

What challenges is Espey Mfg. & Electronics Corp. facing due to the COVID-19 pandemic?

The COVID-19 pandemic may impede revenue recognition and disrupt operations, particularly with future surges.