Orbit International Corp. Reports 2021 Year End Results
Orbit International Corp. (OTC PINK:ORBT) has announced a cash dividend of $0.01 per common share, payable on April 7, 2022. The company's 2021 net income surged to $3,246,000, or $0.93 per diluted share, compared to $641,000 in 2020. Despite a decrease in fourth-quarter sales to $4,956,000 from $6,420,000, gross margins improved to 39.9%. The backlog as of December 31, 2021, was $17.9 million, including acquired backlog from Simulator Products Solutions LLC. The financial outlook remains positive with a strong cash position of $9.2 million.
- 2021 net income increased to $3,246,000 from $641,000 in 2020.
- Successful gross margin improvement to 39.9% in Q4 2021 from 27.5% in Q4 2020.
- Cash and cash equivalents were approximately $9.2 million at year-end 2021.
- Quarterly dividend of $0.01 per share recommenced.
- Fourth-quarter sales declined to $4,956,000 from $6,420,000 in the previous year.
- Backlog decreased to $14.4 million, down from $17.9 million year-over-year.
COMPANY RECOMMENCES ITS QUARTERLY CASH DIVIDEND PAYMENT AND ANNOUNCES CASH DIVIDEND OF
FOR THE FIRST QUARTER OF 2022
2021 Net Income of
2021 EBITDA, As Adjusted, of
Exclusive of PPP Loan Forgiveness and Acquisition Costs Relating to the Panel Products Acquisition, 2021 Net Income was
Fourth Quarter 2021 Net Income of
Fourth Quarter 2021 EBITDA, As Adjusted, of
Exclusive of Acquisition Costs Relating to the Panel Products Acquisition, Fourth Quarter 2021 Net Income was
HAUPPAUGE, N.Y., March 10, 2022 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT) today announced results for the fourth quarter and year ended December 31, 2021. The Company also announced today that its Board of Directors has authorized the Company to recommence its quarterly cash dividend payments. The Board also declared a cash dividend of
Fourth Quarter 2021 vs. Fourth Quarter 2020
- Net sales were
$4,956,000 , as compared to$6,420,000. - Gross margin was
39.9% , as compared to27.5% . - Net income was
$204,000 ($0.06 per diluted share), as compared to a net income of$153,000 ($0.04 per diluted share). Net income for the current year quarter includes acquisition costs of$259,000 ($0.08 per diluted share). - Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liability and stock-based compensation (EBITDA, as adjusted) was
$244,000 ($0.07 per diluted share), as compared to$236,000 ($0.07 per diluted share).
Full Year 2021 vs. Full Year 2020
- Net sales were
$22,217,000 , as compared to$25,924,000. - Gross margin was
36.8% , as compared to27.4% . - Net income was
$3,246,000 ($0.93 per diluted share), as compared to net income of$641,000 ($0.18 per diluted share). Net income for the current year includes a benefit for PPP loan forgiveness of$1,618,000 ($0.47 per diluted share) and acquisition costs of$363,000 ($0.10 per diluted share). - Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liability and stock-based compensation (EBITDA, as adjusted) was
$3,499,000 ($1.01 per diluted share), as compared to$921,000 ($0.26 per diluted share). - Backlog at December 31, 2021 was
$14.4 million as compared to$16.3 million at September 30, 2021 and$17.9 at December 31, 2020. Backlog at December 31, 2021, when including the$3.5 million acquired backlog of Simulator Products Solutions LLC, was$17.9 million .
Mitchell Binder, President and CEO of Orbit International Corp. commented, “I am pleased to report that our fourth quarter performance completed a successful year for our Company. Our net income for the year ended December 31, 2021, was
Mr. Binder added, “Our net income for the three-month period ended December 31, 2021, was
Mr. Binder added, “Our sales for the three months ended December 31, 2021, decreased to
Mr. Binder further added, “Our gross margin for the three months ended December 31, 2021, increased to
Mr. Binder continued, “Our backlog at December 31, 2021, was approximately
David Goldman, Chief Financial Officer, noted, “At December 31, 2021, our cash and cash equivalents aggregated approximately
Mr. Binder concluded, “Because our revenues are tied to our delivery schedules specified in our contracts, it is often difficult to judge our performance on a quarterly basis. As previously mentioned, we completed a firm year of operating results due to improved gross margins, and also as a result of tight controls on our overall operating costs. During the second quarter of 2021, based on the stability of our financial condition and on our improved business outlook as the effect of the COVID-19 pandemic lessened, our Board of Directors authorized the Company to recommence our share repurchase program. Through March 8, 2022, we have purchased approximately 64,550 shares under the program. In addition, as previously mentioned, as a result of our 2021 financial performance and our financial condition, our Board of Directors has now also authorized the recommencement of our quarterly dividend program. We remain confident in our operating performance of our legacy businesses as we move into 2022, although supply chain issues remain a concern and could impact the timing of deliveries in 2022. Our operating team continues to work on potential solutions whenever receipt of components are delayed. However, with the addition of SPS, we remain confident that our operating results should further improve in the coming year.”
In January 2022, Orbit announced that its newly formed subsidiary, SPS, had completed its previously announced acquisition of the assets and business of Panel Products, Inc. (“Panel”), a Carson, CA based company founded by Nabil Radi in 1999. The transaction valued Panel at approximately
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 facility in Hauppauge, New York. 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
Orbit International Corp.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended | Year Ended | ||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net sales | $ | 4,956 | $ | 6,420 | $ | 22,217 | $ | 25,924 | |||||||||||||||
Cost of sales | 2,978 | 4,653 | 14,036 | 18,833 | |||||||||||||||||||
Gross profit | 1,978 | 1,767 | 8,181 | 7,091 | |||||||||||||||||||
Selling general and administrative | 1,520 | 1,559 | 6,122 | 6,276 | |||||||||||||||||||
expenses | |||||||||||||||||||||||
Acquisition costs | 259 | - | 363 | - | |||||||||||||||||||
PPP loan forgiveness | - | - | (1,618) | - | |||||||||||||||||||
Interest expense | - | 4 | - | 11 | |||||||||||||||||||
Investment and other (income) expense | (19) | 44 | 5 | 142 | |||||||||||||||||||
Income before income taxes | 218 | 160 | 3,309 | 662 | |||||||||||||||||||
Income tax provision | 14 | 7 | 63 | 21 | |||||||||||||||||||
Net income | $ | 204 | $ | 153 | $ | 3,246 | $ | 641 | |||||||||||||||
Basic earnings per share | $ | 0.06 | $ | 0.04 | $ | 0.93 | $ | 0.18 | |||||||||||||||
Diluted earnings per share | $ | 0.06 | $ | 0.04 | $ | 0.93 | $ | 0.18 | |||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||
Basic | 3,447 | 3,511 | 3,478 | 3,514 | |||||||||||||||||||
Diluted | 3,447 | 3,511 | 3,478 | 3,514 |
Orbit International Corp.
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
EBITDA (as adjusted) Reconciliation | ||||||||||||||||
Net income | $ | 204 | $ | 153 | $ | 3,246 | $ | 641 | ||||||||
Interest expense | - | 4 | - | 11 | ||||||||||||
Income tax expense | 14 | 7 | 63 | 21 | ||||||||||||
Depreciation and amortization | 26 | 21 | 107 | 90 | ||||||||||||
Fair value adj-contingent liability | (21) | 51 | 6 | 158 | ||||||||||||
Stock-based compensation | 21 | - | 77 | - | ||||||||||||
EBITDA (as adjusted)(1) | $ | 244 | $ | 236 | $ | 3,499 | $ | 921 | ||||||||
EBITDA (as adjusted) Per Diluted Share Reconciliation | ||||||||||||||||
Net income | $ | 0.06 | $ | 0.04 | $ | 0.93 | $ | 0.18 | ||||||||
Interest expense | 0.00 | 0.00 | 0.00 | 0.00 | ||||||||||||
Income tax expense | 0.00 | 0.00 | 0.02 | 0.01 | ||||||||||||
Depreciation and amortization | 0.01 | 0.01 | 0.03 | 0.03 | ||||||||||||
Fair value adj-contingent liability | (0.01) | 0.02 | 0.00 | 0.04 | ||||||||||||
Stock-based compensation | 0.01 | 0.00 | 0.03 | 0.00 | ||||||||||||
EBITDA (as adjusted), per diluted share(1) | $ | 0.07 | $ | 0.07 | $ | 1.01 | $ | 0.26 | ||||||||
(1) The EBITDA (as adjusted) tables presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses EBITDA (as adjusted) to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA (as adjusted) is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity's profitability because it does not include costs and expenses for interest, depreciation and amortization, income taxes, fair value adjustment-contingent liability and stock-based compensation. EBITDA (as adjusted) as presented herein may not be comparable to similarly named measures reported by other companies.
Year Ended December 31, | ||||||||
Reconciliation of EBITDA, as adjusted, to cash flows provided by operating activities(1) | 2021 | 2020 | ||||||
EBITDA (as adjusted) | $ | 3,499 | $ | 921 | ||||
Interest expense | - | (11) | ||||||
Income tax expense | (63) | (21) | ||||||
Stock-based compensation | (77) | - | ||||||
Gain on forgiveness of PPP Loan | (1,618) | - | ||||||
Fair value adj-contingent liability | (6) | (158) | ||||||
Net change in operating assets and liabilities | 383 | 2,162 | ||||||
Cash flows provided by operating activities | $ | 2,118 | $ | 2,893 | ||||
Orbit International Corp.
Consolidated Balance Sheets
December 31, 2021 (unaudited) | December 31, 2020 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 9,215,000 | $ | 7,501,000 | |||
Accounts receivable, less allowance for doubtful accounts | 2,438,000 | 2,751,000 | |||||
Inventories | 8,540,000 | 9,396,000 | |||||
Contract assets | 648,000 | 403,000 | |||||
Income tax receivable | - | 290,000 | |||||
Other current assets | 416,000 | 301,000 | |||||
Total current assets | 21,257,000 | 20,642,000 | |||||
Property and equipment, net | 265,000 | 351,000 | |||||
Right of use assets, operating leases | 3,013,000 | 501,000 | |||||
Goodwill | 901,000 | 901,000 | |||||
Deferred tax asset | 545,000 | 545,000 | |||||
Other assets | 30,000 | 30,000 | |||||
Total assets | $ | 26,011,000 | $ | 22,970,000 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 504,000 | $ | 1,779,000 | |||
Accrued expenses | 1,014,000 | 934,000 | |||||
Lease liabilities, operating leases Contingent liability | 473,000 96,000 | 478,000 256,000 | |||||
Customer advances | 866,000 | 155,000 | |||||
Total current liabilities | 2,953,000 | 3,602,000 | |||||
Notes payable, PPP loan, net of current portion | - | 1,606,000 | |||||
Contingent liability, net of current portion Lease liabilities, operating leases | 208,000 2,596,000 | 318,000 53,000 | |||||
Total liabilities | 5,757,000 | 5,579,000 | |||||
Stockholders’ Equity | |||||||
Common stock | 351,000 | 361,000 | |||||
Additional paid-in capital | 17,109,000 | 17,667,000 | |||||
Treasury stock | (384,000) | (569,000) | |||||
Retained earnings (accumulated deficit) | 3,178,000 | (68,000) | |||||
Stockholders’ equity | 20,254,000 | 17,391,000 | |||||
Total liabilities and stockholders’ equity | $ | 26,011,000 | $ | 22,970,000 | |||
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