EX-99.1 2 a19-9919_2ex99d1.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

 

May 15, 2019

 

Nortech Systems Reports First Quarter Results

 

MINNEAPOLIS — Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of design and manufacturing solutions for complex electromechanical products, reported net sales of $28.2 million for the first quarter ended March 31, 2019, compared with $26.4 million for the first quarter of 2018.

 

Operating loss for the first quarter of 2019 was $104,000, which compares with an operating loss of $120,000 for the first quarter of 2018. Net loss for the first quarter of 2019 was $363,000, or $0.14 per diluted common share. This compares with a net loss for first quarter of 2018 of $391,000, or $0.14 per diluted common share.

 

The mission of Nortech Systems is to be the most trusted, innovative, and nimble design and manufacturing services and solutions provider, while taking great care of its employees, customers, and supplier partners.

 

About Nortech Systems Incorporated

 

Nortech Systems is a leading provider of design and manufacturing solutions for complex electromechanical systems, assemblies, and components. Nortech Systems primarily serves the medical, aerospace & defense, and industrial markets.  Its design services span concept development to commercial design, and include software, electrical, mechanical, and biomedical engineering.  Its manufacturing and supply chain capabilities are vertically integrated around wire/cable/interconnect assemblies, printed circuit board assemblies, as well as system-level assembly, integration, and final test. Headquartered in Maple Grove, Minn., Nortech currently has seven manufacturing locations and design centers across the U.S., Latin America, and Asia.  Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS.  Nortech’s website is www.nortechsys.com.

 

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.

 

Condensed Consolidated Statements of Operations

(in thousands, except for share data)

 

 

 

THREE MONTHS ENDED

 

 

 

MARCH 31,

 

 

 

Unaudited

 

Unaudited

 

 

 

2019

 

2018

 

 

 

 

 

 

 

Net Sales

 

$

28,165

 

$

26,447

 

 

 

 

 

 

 

Cost of Goods Sold

 

25,204

 

23,419

 

 

 

 

 

 

 

Gross Profit

 

2,961

 

3,028

 

 

 

10.5

%

11.4

%

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

Selling Expenses

 

761

 

1,039

 

General and Administrative Expenses

 

2,304

 

2,109

 

Total Operating Expenses

 

3,065

 

3,148

 

 

 

 

 

 

 

Loss From Operations

 

(104

)

(120

)

 

 

 

 

 

 

Other Expense

 

 

 

 

 

Interest Expense

 

(245

)

(172

)

 

 

 

 

 

 

Loss Before Income Taxes

 

(349

)

(292

)

 

 

 

 

 

 

Income Tax Expense

 

14

 

99

 

 

 

 

 

 

 

Net Loss

 

$

(363

)

$

(391

)

 

 

 

 

 

 

Loss Per Common Share - Diluted

 

$

(0.14

)

$

(0.14

)

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding - Diluted

 

2,659,859

 

2,720,609

 

 

Condensed Consolidated Balance Sheets

(in thousands)

 

 

 

MARCH 31, 2019

 

DECEMBER 31, 2018

 

 

 

Unaudited

 

Audited

 

Cash

 

$

310

 

$

480

 

Restricted Cash

 

427

 

467

 

Accounts Receivable

 

23,092

 

20,093

 

Inventories

 

15,984

 

17,004

 

Contract Assets

 

8,584

 

6,431

 

Prepaid Expenses and Other Current Assets

 

2,133

 

1,381

 

Property and Other Long-term Assets

 

9,886

 

10,178

 

Goodwill and Other Long-term Assets, Net

 

9,260

 

3,926

 

Total Assets

 

$

69,676

 

$

59,960

 

 

 

 

 

 

 

Accounts Payable

 

$

21,140

 

$

18,142

 

Other Current Liabilities

 

7,004

 

6,750

 

Long Term Line of Credit

 

11,294

 

9,264

 

Long-term Debt and Other Long-term Liabilities

 

9,308

 

4,714

 

Shareholders’ Equity

 

20,930

 

21,090

 

Total Liabilities and Shareholders’ Equity

 

$

69,676

 

$

59,960