Tel-Instrument Electronics Corp. Reports Financial Results For First Quarter FY 2024
- None.
- None.
Notes On First Quarter:
-
Revenues for the first quarter were
, a$2.9 million 27% increase from in the year-ago quarter.$2.3 million -
The gross margin percentage increased to
45% versus37% in the year-ago quarter. -
Operating expenses decreased by
, a$205 K19% decline versus the year ago level as a result of funded engineering projects. -
Operating income was
as compared to an operating loss of$420 K in the year ago quarter.$244 K -
Net income was
or$295 K per share, compared to net loss of$0.07 or$233 K per share in the year-ago quarter.$(0.10) -
The Company recorded
in positive cash-flow from operating activities for the quarter with cash balances improving to$706 K .$6.5 million -
Backlog decreased to
at the end of the first quarter, a$5.3 million decrease from the prior quarter-end.$1.2 million
Additionally, the Kansas Appellate Court denied our appeal motion on July 21, 2023. We continue to explore available options for next steps, including filing a further appeal.
Mr. Jeffrey O’Hara, Tel-Instrument’s President and CEO commented: “We were extremely disappointed with the decision of the Kansas Appellate Court and are currently evaluating whether to pay the full judgment amount or appeal the decision to the Kansas Supreme Court. We were pleased with the revenue growth and profitability for the first quarter, although parts availability and lead times continue to hamper production. We are predicting solid growth for the remainder of this fiscal year. Notable orders received in the second quarter include a
From a cash perspective, we have sufficient liquidity to pay the Aeroflex judgment amount in full if we elect not to appeal. TIC’s Board has also indicated its willingness to invest additional capital if needed to support our growth plans.
About Tel-Instrument Electronics Corp.
Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.
This press release includes statements that are not historical in nature and may be characterized as “forward-looking statements,” including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company’s outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially. Among the factors which could cause a difference are: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances. A number of these factors are discussed in the Company’s previous filings with the
TEL-INSTRUMENT ELECTRONICS CORP. CONDENSED CONSOLIDATED BALANCE SHEETS |
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June 30, 2023 |
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March 31, 2023 |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash |
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$ |
4,531,637 |
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$ |
3,839,398 |
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Accounts receivable, net |
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1,237,544 |
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900,881 |
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Inventories, net |
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3,606,661 |
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3,586,065 |
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Restricted cash to support appeal bond |
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2,011,133 |
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2,011,083 |
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Prepaid expenses and other current assets |
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244,448 |
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817,625 |
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Total current assets |
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11,631,423 |
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11,155,052 |
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Equipment and leasehold improvements, net |
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86,876 |
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85,167 |
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Operating lease right-of-use assets |
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1,476,765 |
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1,526,551 |
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Deferred tax asset, net |
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2,547,388 |
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2,627,935 |
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Other long-term assets |
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35,109 |
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35,109 |
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Total assets |
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$ |
15,777,561 |
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$ |
15,429,814 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Line of credit |
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$ |
690,000 |
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$ |
690,000 |
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Operating lease liabilities – current portion |
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204,065 |
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202,087 |
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Accounts payable |
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313,222 |
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322,582 |
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Deferred revenues - current portion |
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107,296 |
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123,117 |
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Accrued expenses ‐vacation pay, payroll and payroll withholdings |
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304,450 |
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240,034 |
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Accrued legal damages |
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6,430,943 |
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6,360,698 |
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Accrued expenses - other |
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166,046 |
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157,896 |
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Total current liabilities |
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8,216,022 |
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8,096,414 |
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Operating lease liabilities – long-term |
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1,272,700 |
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1,324,464 |
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Other long term liabilities |
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51,438 |
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53,416 |
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Deferred revenues – long-term |
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157,203 |
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173,883 |
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Total liabilities |
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9,697,363 |
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9,648,177 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock, 1,000,000 shares authorized, par value |
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Preferred stock, 500,000 shares |
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Preferred |
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authorized, issued and outstanding, par value |
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3,935,998 |
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3,875,998 |
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Preferred stock, 166,667 shares |
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Preferred |
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authorized, issued and outstanding, par value |
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1,227,367 |
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1,207,367 |
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Common stock, 7,000,000 shares authorized, par value |
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325,586 |
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325,586 |
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Additional paid-in capital |
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6,644,804 |
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6,721,535 |
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Accumulated deficit |
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(6,053,557 |
) |
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(6,348,849 |
) |
Total stockholders’ equity |
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6,080,198 |
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5,781,637 |
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Total liabilities and stockholders’ equity |
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$ |
15,777,561 |
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$ |
15,429,814 |
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TEL-INSTRUMENT ELECTRONICS CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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Three Months Ended |
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June 30, 2023 |
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June 30, 2022 |
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Net sales |
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$ |
2,866,929 |
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$ |
2,253,757 |
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Cost of sales |
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1,572,380 |
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1,418,572 |
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Gross margin |
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1,294,549 |
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835,185 |
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Operating expenses: |
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Selling, general and administrative |
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584,858 |
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556,933 |
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Engineering, research, and development |
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289,441 |
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522,103 |
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Total operating expenses |
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874,299 |
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1,079,036 |
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Income (loss) from operations |
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420,250 |
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(243,851 |
) |
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Other (expense) income: |
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Interest income |
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39,289 |
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986 |
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Interest expense – other |
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(13,455 |
) |
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- |
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Interest expense – judgement |
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(70,245 |
) |
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(51,920 |
) |
Total other net expense |
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(44,411 |
) |
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(50,934 |
) |
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Income (loss) before income taxes |
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375,839 |
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(294,785 |
) |
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Income tax expense (benefit) |
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80,547 |
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(61,916 |
) |
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Net income (loss) |
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295,292 |
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(232,869 |
) |
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Preferred dividends |
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(80,000 |
) |
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(80,000 |
) |
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Net income (loss) attributable to common shareholders |
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$ |
215,292 |
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$ |
(312,869 |
) |
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Basic net income (loss) per common share |
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$ |
0.07 |
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$ |
(0.10 |
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Diluted net income (loss) per common share |
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$ |
0.06 |
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$ |
(0.10 |
) |
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Weighted average shares outstanding: |
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Basic |
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3,255,887 |
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3,255,887 |
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Diluted |
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5,215,665 |
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3,255,887 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230811874055/en/
Pauline Romeo
Tel-Instrument Electronics Corp.
(201) 933-1600 (Ext 309)
Source: Tel-Instrument Electronics Corp.
FAQ
What was Tel-Instrument Electronics Corp.'s net income for the first quarter of the 2024 fiscal year?
What were the revenues for the first quarter of the 2024 fiscal year?
What was the percentage increase in revenues compared to the year-ago quarter?
What was the gross margin percentage for the first quarter of the 2024 fiscal year?
What was the operating income for the first quarter of the 2024 fiscal year?
What was the cash balance at the end of the first quarter of the 2024 fiscal year?
What was the backlog at the end of the first quarter of the 2024 fiscal year?
What was the decision of the Kansas Appellate Court?