EX-99.1 2 a19-7576_1ex99d1.htm EX-99.1

Exhibit 99.1

 

 

Contact:

Connie Beck, VP & CFO

 

Nortech Systems Incorporated

 

(952) 345-2244

 

or

 

Warren Djerf

 

Brookside Communications Group

 

(952) 920-3908 or warren@brookcomm.net

 

 

April 1, 2019

 

 

Nortech Systems Reports 2018 Results

 

MINNEAPOLIS — Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), reported net sales of $113.4 million for the year ended December 31, 2018, compared with $112.3 million for fiscal 2017.

 

Operating income for fiscal 2018 was $1.2 million, which compares with an operating loss of $1.3 million for fiscal 2017, which included a year-end goodwill impairment charge of $0.9 million. Net income for fiscal 2018 was $0.2 million, or $0.06 per diluted common share. This compares with a net loss for fiscal 2017 of $2.4 million, or $0.89 per diluted common share, which included $1.4 million of unfavorable impact from tax reform and discrete tax-related adjustments.

 

For the fourth quarter of 2018, net sales were $28.8 million, compared with $25.6 million for the prior-year period. The fourth quarter operating loss was $14,000; this compares with an operating loss of $1.8 million in the prior-year period, which included the $0.9 goodwill write-off cited earlier.

 

The fourth quarter net loss of $0.2 million, or $0.07 per diluted common share, compares with a net loss of $2.5 million, or $0.90 per diluted common share, for the fourth quarter of 2017, which included the significant year-end, non-cash charges.

 

Nortech will no longer be hosting quarterly conference calls due to the low attendance. Nortech will continue its investor communications by issuing relevant news releases and SEC disclosures and responding to direct investor inquiries.

 

Nortech’s mission is to be the most trusted, innovative and nimble engineering and manufacturing services and solutions company in its chosen markets and to take great care of its employees, customers and supplier partners.

 

-more-

 


 

About Nortech Systems Incorporated

 

Nortech Systems (www.nortechsys.com), based in Maple Grove, Minn., is a full-service engineering and electronics manufacturing services (EMS) provider of complex interconnect solutions, printed circuit board assemblies, higher-level assemblies and box builds. Markets served include medical device, industrial and commercial equipment, aerospace and defense. Nortech has a range of specialized, high-tech facilities in the U.S., Latin America and Asia used for customized design, manufacture, testing and repair of its solutions. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS.

 

Forward-Looking Statements

 

This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995.  While this release is based on management’s best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply of and demand for the company’s products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company’s financial condition and results of operations; as well as risk factors listed from time to time in the company’s filings with the SEC.

 

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Condensed Consolidated Statements of Operations  (in thousands, except for share data)

 

 

 

THREE MONTHS ENDED

 

TWELVE MONTHS ENDED

 

 

 

DECEMBER 31,

 

DECEMBER 31,

 

 

 

Unaudited

 

Unaudited

 

Unaudited

 

Unaudited

 

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

Net Sales

 

$

28,827

 

$

25,573

 

$

113,370

 

$

112,335

 

 

 

 

 

 

 

 

 

 

 

Cost of Goods Sold

 

25,748

 

23,428

 

100,059

 

100,217

 

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

3,079

 

2,145

 

13,311

 

12,118

 

 

 

10.7

%

8.4

%

11.7

%

10.8

%

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

Selling Expenses

 

837

 

1,071

 

3,629

 

4,747

 

General and Administrative Expenses

 

2,256

 

1,934

 

8,433

 

8,086

 

Impairment of Goodwill

 

 

908

 

 

908

 

Gain on Sale of Property and Equipment

 

 

 

 

 

(355

)

Total Operating Expenses

 

3,093

 

3,913

 

12,062

 

13,386

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) From Operations

 

(14

)

(1,768

)

1,249

 

(1,268

)

 

 

 

 

 

 

 

 

 

 

Other Expense

 

 

 

 

 

 

 

 

 

Loss on Extinguishment of Debt

 

 

 

 

 

(175

)

Interest Expense

 

(206

)

(175

)

(757

)

(628

)

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes

 

(220

)

(1,943

)

492

 

(2,071

)

 

 

 

 

 

 

 

 

 

 

Income Tax Expense (Benefit)

 

(23

)

516

 

326

 

375

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

(197

)

$

(2,459

)

$

166

 

$

(2,446

)

 

 

 

 

 

 

 

 

 

 

Income Per Common Share - Diluted

 

$

(0.07

)

$

(0.90

)

$

0.06

 

$

(0.89

)

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding - Diluted

 

2,676,573

 

2,739,650

 

2,699,614

 

2,745,602

 

 

Condensed Consolidated Balance Sheets  (in thousands)

 

 

 

DECEMBER 31, 2018

 

DECEMBER 31, 2017

 

 

 

Unaudited

 

Audited

 

Cash

 

$

480

 

$

473

 

Restricted Cash

 

467

 

306

 

Accounts Receivable

 

20,093

 

17,417

 

Inventories

 

17,004

 

18,527

 

Contract Assets

 

6,431

 

 

Prepaid Expenses and Other Current Assets

 

1,381

 

1,044

 

Property and Other Long-term Assets

 

10,206

 

10,204

 

Goodwill and Other Intangible Assets, Net

 

3,898

 

4,114

 

Total Assets

 

$

59,960

 

$

52,085

 

 

 

 

 

 

 

Accounts Payable

 

$

18,142

 

$

11,699

 

Other Current Liabilities

 

6,750

 

6,346

 

Long Term Line of Credit

 

9,264

 

8,503

 

Long-term Debt and Other Long-term Liabilities

 

4,714

 

5,712

 

Shareholders’ Equity

 

21,090

 

19,825

 

Total Liabilities and Shareholders’ Equity

 

$

59,960

 

$

52,085

 

 

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