Espey Mfg. & Electronics Corp. reports third quarter results

Rhea-AI Summary

Espey Mfg. & Electronics Corp. (NYSE American: ESP) reported financial results for the first nine months of fiscal year 2020. Net sales for Q3 2020 were $6.19 million, down from $9.22 million in Q3 2019, resulting in a net loss of $(103,765) compared to a net income of $922,456 last year. For the first nine months, net sales totaled $19.4 million, a decline from $24.9 million in the previous year, with net income at $206,975 versus $1.2 million last year. The sales order backlog increased to $59.8 million from $45.4 million year-over-year, with new orders rising to $33.6 million.

Positive

• Sales order backlog increased to $59.8 million from $45.4 million year-over-year.
• New orders for the first nine months rose to $33.6 million from $22.2 million in the prior year.

Negative

• Q3 2020 net sales dropped to $6.19 million from $9.22 million in Q3 2019.
• Net loss of $(103,765) in Q3 2020 compared to net income of $922,456 in Q3 2019.
• Total net sales for the first nine months fell to $19.4 million from $24.9 million in the previous year.
• Net income for the first nine months decreased to $206,975 from $1,201,886 in the same period last year.

SARATOGA SPRINGS, N.Y., May 14, 2020 (GLOBE NEWSWIRE) -- Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces results for the first nine months of fiscal year 2020.

Net sales for the third quarter of fiscal year 2020, January 1 to March 31, 2020, were $6,191,300, compared with last year's third quarter net sales of $9,218,141.  Net loss for the quarter was $(103,765), $(0.04) per diluted share, as compared to net income of $922,456, $0.39 per diluted share for the same quarter last year.

For the first nine months of fiscal year 2020, July 1 to March 31, 2020, net sales were $19.4 million, compared with $24.9 million for the first nine months of fiscal year 2019.  Net income for the period was $206,975 $0.09 per diluted share, compared with net income of $1,201,886, $0.50 per diluted share, for the same period last year.

The sales order backlog for the Company was $59.8 million at March 31, 2020, compared with last year's sales order backlog of $45.4 million at March 31, 2019. New orders in the first nine months of fiscal year 2020 were $33.6 million, compared with new orders in the first nine months of fiscal year 2019 of $22.2 million.

Mr. Patrick Enright, President and CEO, commented,

This quarter was very challenging. We did not reach our net sales goal which, in turn, negatively impacted earnings.  We experienced cost overruns on two new build to print orders, primarily due to higher than expected supplier costs, and experienced engineering design complications on certain development and repeat production orders. Collectively, these factors caused a net loss for the three months ended March 31, 2020.  We are continuing to work with our vendor base, our customers and with our internal production team to improve our end-to-end efficiency as we address the issues confronting first-time build and qualification of the products that comprise our robust backlog.

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.'s Q3 2020 sales figures?

Espey Mfg. reported Q3 2020 net sales of $6.19 million, down from $9.22 million in Q3 2019.

How did Espey's net income change in Q3 2020?

The net income for Q3 2020 was $(103,765), a decrease from the net income of $922,456 in Q3 2019.

What is the sales order backlog for Espey as of March 31, 2020?

As of March 31, 2020, Espey's sales order backlog was $59.8 million, up from $45.4 million a year earlier.

How do the first nine months of fiscal 2020 sales compare to fiscal 2019 for Espey?

For the first nine months of fiscal 2020, net sales were $19.4 million, compared to $24.9 million for the same period in fiscal 2019.

What was the net income for Espey Mfg. in the first nine months of 2020?

Espey Mfg. reported a net income of $206,975 for the first nine months of 2020, down from $1,201,886 in the prior year.