ETC Announces Fiscal 2024 First Quarter Results
SOUTHAMPTON, Pa., July 17, 2023 (GLOBE NEWSWIRE) -- Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for the thirteen week period ended May 26, 2023 (the “2024 first fiscal quarter”).
Robert L. Laurent, Jr., ETC’s Chief Executive Officer and President stated, “We are pleased with the
Fiscal 2024 First Quarter Results of Operations
Net Income (Loss) Attributable to ETC
Net loss attributable to ETC was
Net Sales
Net sales in the 2024 first fiscal quarter were
Gross Profit
Gross profit for the 2024 first fiscal quarter of
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2024 first fiscal quarter were
Other Expenses (Income), Net
Other expenses, net was
Cash Flows from Operating, Investing, and Financing Activities
During the 2024 first fiscal quarter, due primarily from the increase in contract assets and decrease in contract liabilities and the net loss for the period, the Company used
Cash used for investing activities primarily relates to funds used for capital expenditures of equipment and software development as well as the purchase of the final
The Company’s financing activities provided
About ETC
ETC was incorporated in 1969 in Pennsylvania. For over five decades, we have provided our customers with products, services, and support. Innovation, continuous technological improvement and enhancement, and product quality are core values that are critical to our success. We are a significant supplier and innovator in the following areas: (i) software driven products and services used to create and monitor the physiological effects of flight, including high performance jet tactical flight simulation, fixed and rotary wing upset prevention and recovery and spatial disorientation, and both suborbital and orbital commercial human spaceflight, collectively, Aircrew Training Systems (“ATS”); (ii) altitude (hypobaric) chambers; (iii) hyperbaric chambers for multiple persons (multiplace chambers); (iv) Advanced Disaster Management Simulators (“ADMS”); (v) steam and gas (ethylene oxide) sterilizers; and (vi) environmental testing and simulation systems (“ETSS”).
We operate in two primary business segments, Aerospace Solutions (“Aerospace”) and Commercial/Industrial Systems (“CIS”). Aerospace encompasses the design, manufacture, and sale of: (i) ATS products; (ii) altitude (hypobaric) chambers; (iii) hyperbaric chambers for multiple persons (multiplace chambers); and (iv) ADMS, as well as integrated logistics support (“ILS”) for customers who purchase these products or similar products manufactured by other parties. These products and services provide customers with an offering of comprehensive solutions for improved readiness and reduced operational costs. Sales of our Aerospace products are made principally to U.S. and foreign government agencies and to civil aviation organizations. CIS encompasses the design, manufacture, and sale of: (i) steam and gas (ethylene oxide) sterilizers; and (ii) ETSS; as well as parts and service support for customers who purchase these products or similar products manufactured by other parties. Sales of our CIS products are made principally to the healthcare, pharmaceutical, and automotive industries.
ETC-PZL Aerospace Industries Sp. z o.o. (“ETC-PZL”), our
The majority of our net sales are generated from long-term contracts with U.S. and foreign government agencies (including foreign military sales (“FMS”) contracted through the U.S. Government) for the research, design, development, manufacture, integration, and sustainment of ATS products, including Chambers and the simulators manufactured and sold through ETC-PZL, collectively, ATS. The Company also enters into long-term contracts with domestic customers for the sale of sterilizers and ETSS. Net sales of ADMS are generally much shorter term in nature and vary between domestic and international customers. We generally provide our products and services under fixed-price contracts.
ETC’s unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. ETC’s headquarters is located in Southampton, PA. For more information about ETC, visit http://www.etcusa.com/. The information contained on our website is not incorporated by reference in this news release.
Forward-looking Statements
This news release contains forward-looking statements, which are based on management’s expectations and are subject to uncertainties and changes in circumstances. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements, and these statements may include words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “future”, “predict”, “potential”, “intend”, or “continue”, and similar expressions. We base our forward-looking statements on our current expectations and projections about future events or future financial performance. Our forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about ETC and its subsidiaries that may cause actual results to be materially different from any future results implied by these forward-looking statements. We caution you not to place undue reliance on these forward-looking statements. Except as required by law, we assume no obligation to update or revise any forward looking statements.
| Contact: | Tim Kennedy, CFO |
| Phone: | (215) 355-9100 x1531 |
| E-mail: | tkennedy@etcusa.com |
- Financial Table Follows -
| Table A | ||||||||||||
| ENVIRONMENTAL TECTONICS CORPORATION | ||||||||||||
| SUMMARY TABLE OF RESULTS | ||||||||||||
| (in thousands, except per share information) | ||||||||||||
| (unaudited) | ||||||||||||
| Thirteen | Thirteen | |||||||||||
| weeks ended | weeks ended | |||||||||||
| May 26, 2023 | May 27, 2022 | Variance $ | Variance % | |||||||||
| Net sales | $ | 7,667 | $ | 5,874 | $ | 1,793 | 30.5 | |||||
| Cost of goods sold | 5,833 | 4,246 | 1,587 | 37.4 | ||||||||
| Gross Profit | 1,834 | 1,628 | 206 | 12.7 | ||||||||
| Gross profit margin % | - | |||||||||||
| Operating expenses | 2,609 | 2,031 | 578 | 28.5 | ||||||||
| Operating loss | (775 | ) | (403 | ) | (372 | ) | (92.3 | ) | ||||
| Operating margin % | - | - | - | |||||||||
| Interest expense, net | 198 | 124 | (74 | ) | (59.7 | ) | ||||||
| Other expense, net | 50 | 63 | 13 | 20.6 | ||||||||
| Loss before income taxes | (1,023 | ) | (590 | ) | (433 | ) | 73.4 | |||||
| Pre-tax margin % | - | - | - | |||||||||
| Income tax provision | 40 | 20 | 20 | 100.0 | ||||||||
| Net loss | (1,063 | ) | (610 | ) | (453 | ) | ||||||
| Loss attributable to non-controlling interest | - | 11 | (11 | ) | (100.0 | ) | ||||||
| Net loss attributable to ETC | (1,063 | ) | (599 | ) | (464 | ) | ||||||
| Preferred Stock Dividends | (121 | ) | (121 | ) | - | |||||||
| Loss attributable to common and participating shareholders | $ | (1,184 | ) | $ | (720 | ) | $ | (464 | ) | |||
| Per share information: | ||||||||||||
| Basic earnings (loss) per common and participating share: | ||||||||||||
| Distributed earnings per share: | ||||||||||||
| Common | $ | - | $ | - | ||||||||
| Preferred | $ | 0.02 | $ | 0.02 | $ | - | ||||||
| Undistributed loss per share: | ||||||||||||
| Common | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.03 | ) | |||
| Preferred | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.03 | ) | |||
| Diluted loss per share | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.03 | ) | |||
| Total basic weighted average common and participating shares | 15,569 | 15,569 | ||||||||||
| Total diluted weighted average shares | 15,569 | 15,569 | ||||||||||
