Environmental Tectonics Corporation reported earnings results for the third quarter and nine months ended November 23, 2012. For the quarter, the company reported net income attributable to the company of $1.2 million, or $0.05 per diluted share, compared to net income attributable to the company of $0.8 million, or $0.01 per diluted share, in the 2012 third quarter. This improvement was achieved on lower net sales of $15.2 million, compared to $17.3 million in the 2012 third quarter. The 12.2% reduction in net sales reflects decreased sales to the U.S. Government and to International customers, offset in part, by increased sales to Domestic customers. Income before income taxes increased to $2.3 million, a $0.5 million increase, or 25.5%, compared to $1.8 million in the 2012 third quarter. The increase in income before income taxes was due primarily to an increase in gross profit margin as a percentage of net sales to 42.9% in the 2013 third quarter from 32.8% in the 2012 third quarter, which was the result of several high margin completed contract sales recognized in the 2013 third quarter, compared to a reduced margin in the 2012 third quarter due to an increase in costs related to a U.S. Government contract. The company reported operating income of $2.7 million compared to $2.0 million and EBITDA of $3.1 million compared to $2.5 million for the last year.

For the nine months, the company reported net income attributable to the company of $4.2 million, or $0.14 per diluted share on net sales of $47.7 million, compared to net income attributable to the company of $3.9 million, or $0.11 per diluted share on net sales of $49.4 million for the last year. The company reported operating income of $8.1 million compared to $7.6 million, income before income taxes of $7.3 million compared to $6.9 million and EBITDA of $9.4 million compared to $8.7 million for the last year.