Environmental Tectonics Corporation Reports Earnings Results for the Thirteen Weeks and Fifty Two Weeks Ended February 26, 2016
June 15, 2016 at 02:31 am IST
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Environmental Tectonics Corporation reported earnings results for the thirteen weeks and fifty two weeks ended February 26, 2016. For the fifty two weeks, net sales were $39.632 million compared to $37.340 million a year ago. The increase reflects increased sales related to ATS products including Chambers and ETC-PZL and other sales within Aerospace segment to International customers, increased sales of ADMS line of products to the U.S. Government, and overall increased sales of monoplace chambers, offset in part, by decreased sales of Sterilization Systems, Environmental Testing and Simulation Systems, and ADMS line of products to Domestic customers and decreased sales related to ATS products including Chambers within Aerospace segment to the U.S. Government. Operating loss was $2.375 million compared to $4.837 million a year ago. Loss before income taxes was $4.140 million compared to $6.021 million a year ago. Net loss was $10.760 million compared to $3.728 million a year ago. Net loss attributable to the company was $10.783 million compared to $3.715 million a year ago. The $7.1 million variance reflects a decrease in loss before income taxes of $1.8 million due to the combined effect of a $3.7 million increase in gross profit, offset in part, by a $1.3 million increase in operating expenses, a $0.4 million increase in other expense, and a $0.2 million increase in interest expense. The $1.8 million decrease in loss before income taxes was offset by a $8.9 million variance between the $6.6 million income tax provision recorded in fiscal 2016 compared to the $2.3 million income tax benefit recorded in fiscal 2015. Loss attributable to common and participating shareholders was $11.267 million compared to $4.199 million a year ago. Diluted loss per share was $0.74 compared to $0.27 million a year ago. LBITDA was $1.428 million compared to $3.431 million a year ago. Despite the significant net loss, and due primarily from the increase in billings in excess of costs and estimated earnings on uncompleted long-term contracts and a decrease in both costs and estimated earnings in excess of billings on uncompleted long-term contracts and accounts receivable, the company generated $6.5 million of cash from operating activities compared to $0.5 million of cash used in operating activities in fiscal 2015. Cash used for investing activities primarily relates to funds used for capital expenditures in property, plant, and equipment and software development. The company`s fiscal 2016 investing activities used $1.2 million, which consisted primarily of equipment and software enhancements for Authentic Tactical Fighting System ("ATFS") and ADMS technologies and Upset Prevention and Recovery Training ("UPRT") capabilities, and costs to upgrade existing information technology systems. This is a decrease of $0.3 million from cash used in investing activities in fiscal 2015.
For the thirteen weeks, net sales were $8.246 million compared to $9.354 million a year ago. Operating loss was $1.873 million compared to $0.811 million a year ago. Loss before income taxes was $2.455 million compared to $1.232 million a year ago. Net loss was $9.749 million compared to $0.879 million a year ago. Net loss attributable to the company was $9.745 million compared to $0.837 million a year ago. Loss attributable to common and participating shareholders was $9.866 million compared to $0.958 million a year ago. Diluted loss per share was $0.65 compared to $0.06 million a year ago. LBITDA was $1.756 million compared to $0.488 million a year ago.
Environmental Tectonics Corporation provides engineering solutions to its customers with products, service and support. Its segments include Aerospace Solutions (Aerospace) and Commercial/Industrial Systems (CIS). The Aerospace segment encompasses the design, manufacture, and sale of ATS products; altitude (hypobaric) chambers; hyperbaric chambers for multiple persons (multiplace chambers), and ADMS, as well as integrated logistics support for customers who purchase these products or similar products manufactured by other parties. The CIS segment encompasses the design, manufacture, and sale of steam and gas (ethylene oxide) sterilizers and ETSS, as well as parts and service support for customers who purchase these products or similar products manufactured by other parties. Sales of its CIS products are made principally to the healthcare, pharmaceutical, and automotive industries. It sells its sterilizers to medical device manufacturers, pharmaceutical manufacturers, and universities.