Orbit International Corp. Announces Delay in Filing Its 2022 Annual Report

Rhea-AI Summary

Orbit International Corp. announced a delay in filing its 2022 Annual Report due to the ongoing audit of its recently acquired subsidiary, Simulator Product Solutions LLC (SPS). The audit is necessary to finalize inventory valuations that are integral to the financial statements. CEO Mitchell Binder indicated that sales for Q4 2022 are projected between $7 million and $7.5 million, with net income estimated at $450,000 to $600,000. For the year ending December 31, 2022, sales are expected to be around $25.6 million to $26.1 million, with net income likely between $200,000 and $350,000. The backlog has increased by 9% to $19.4 million. The company also continues its share repurchase program and has declared a $0.01 quarterly dividend and $0.03 special dividend.

Positive

• Sales for Q4 2022 expected to be in the range of $7M to $7.5M.
• Net income projected between $450K ($0.13 per diluted share) and $600K ($0.18 per diluted share) for Q4 2022.
• Sales for the full year 2022 expected to be approximately $25.6M to $26.1M.
• Net income expected for the year between $200K ($0.06 per diluted share) and $350K ($0.10 per diluted share).
• Backlog increased by 9% to $19.4M compared to the previous year.
• Continuing share repurchase program; 180,685 shares purchased since commencement.
• Declared $0.01 quarterly dividend and $0.03 special dividend.

Negative

• Delay in filing 2022 Annual Report due to ongoing audit; uncertainty may impact investor confidence.

Company Provides Range of Sales and Net Income for the Fourth Quarter and Year Ended December 31, 2022

Backlog at December 31, 2022 Increased 9% to $19.4 Million as Compared to $17.8 Million at December 31, 2021

HAUPPAUGE, N.Y., April 18, 2023 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, announced today that the filing of its 2022 Annual Report with the OTC has been delayed beyond its extended due date of April 17, 2023, as additional time is needed to complete the audit of the acquired and ending inventory of its recently acquired Simulator Product Solutions LLC subsidiary (“SPS”) and the preparation of the 2022 Annual Report.

Mitchell Binder, President and CEO commented, “Some additional time is needed to complete our filing as our auditors complete their audit of the acquired inventory of SPS on January 3, 2022, as well as its ending inventory at December 31, 2022. Because the acquired inventory comprised a part of the purchase price of SPS, any one-time adjustments should have no material effect on the financial statements of Orbit. Furthermore, we do not expect any adjustments to SPS’ ending inventory to have any material effect on the financial statements of the Company. Based on the amount of work expected to be completed by the Company and its auditors, we anticipate filing our 2022 Annual Report in approximately two to three weeks.”

Binder continued, “Although our final financial results are subject to the completion of our audit, our sales for the fourth quarter are expected to be in the range of $7,000,000 to $7,500,000 and our net income is expected to be in the range of approximately $450,000 ($0.13 per diluted share) to approximately $600,000 ($0.18 per diluted share). Our sales for the year ended December 31, 2022, are expected to be in the range of approximately $25,600,000 to $26,100,000, and our net income for the year is expected to be in the range of approximately $200,000 ($0.06 per diluted share) to approximately $350,000 ($0.10 per diluted share). Our backlog at December 31, 2022 was approximately $19,400,000, an increase of 9% from the prior year.”

Binder concluded, “Our financial position continues to be strong. As previously reported, we recommenced our share repurchase program in the second quarter of 2021. We continue to purchase shares under the program and have purchased 180,685 shares since the commencement of the program. As previously reported in March 2023, our Company declared a quarterly $0.01 per common share dividend and a $0.03 per common share special dividend payable at the end of this current month.”

Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, NY and Carson, CA. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

CONTACT
David Goldman
Chief Financial Officer
631-435-8300

FAQ

What are the expected sales for Orbit International in Q4 2022?

Orbit International expects sales for Q4 2022 to be between $7 million and $7.5 million.

What is the projected net income for Orbit International for the fourth quarter of 2022?

The projected net income for Q4 2022 is approximately $450,000 to $600,000.

How much did Orbit International's backlog increase by at the end of 2022?

Orbit International's backlog increased by 9% to $19.4 million at the end of 2022.

What dividends has Orbit International declared for shareholders?

Orbit International declared a $0.01 quarterly dividend and a $0.03 special dividend payable at the end of the month.

Why was the 2022 Annual Report for Orbit International delayed?

The 2022 Annual Report for Orbit International was delayed due to the need for additional time to complete the audit of acquired inventory.