Delaware
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0-3936
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11-1826363
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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80 Cabot Court
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Hauppauge, New York
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11788
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(Address of principal executive offices)
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(Zip Code)
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Not Applicable
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(Former name or former address, if changed since last report)
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230-425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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Orbit International Corp.
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By:
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/s/ Mitchell Binder
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Mitchell Binder
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Chief Executive Officer and President
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CONTACT
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or
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Investor Relations Counsel
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Mitchell Binder
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Lena Cati, 212-836-9611
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President & Chief Executive Officer
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Linda Latman, 212-836-9609
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631-435-8300
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The Equity Group Inc.
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·
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Net sales decreased to $6,162,000 compared to $6,812,000;
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·
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Gross margin was 38.7% compared to 43.0%;
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·
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Net loss was $1,375,000 ($0.30 loss per share) compared to net income of $524,000 ($0.11 income per diluted share). The net loss for the 2012 first quarter included a non-recurring charge of $1,194,000 in connection with employment contract provisions of a departing senior officer. Excluding this charge, the net loss for the current first quarter was $181,000 ($0.04 loss per share); and,
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·
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Earnings before interest, taxes, depreciation and amortization, and stock based compensation (EBITDA, as adjusted) was a loss of $1,193,000 ($0.26 loss per share) compared to earnings of $702,000 ($0.15 per diluted share). The current year’s amount includes the non-recurring charge of $1,194,000.
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·
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Backlog at March 31, 2012 increased by 37% to $21.2 million as compared to $15.5 million at December 31, 2011 and was equal to the backlog reported at March 31, 2011.
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·
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Backlog at April 30, 2012 further increased to $21.5 million due to the approximately $1.1 million funded task order for the MK 110 Serial Data Converter (SDC). Inclusive of the entire $5.8 million SDC base contract order, backlog at April 30, 2012 was $26.2 million, an increase of 69% from year-end.
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Three Months Ended
March 31,
(unaudited)
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2012
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2011
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Net sales
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$ | 6,162 | $ | 6,812 | ||||
Cost of sales
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3,775 | 3,885 | ||||||
Gross profit
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2,387 | 2,927 | ||||||
Selling general and administrative expenses
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2,597 | 2,368 | ||||||
Costs related to non-renewal of chief operating officer contract
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1,194 | - | ||||||
Interest expense
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34 | 53 | ||||||
Investment and other (income)
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(93 | ) | (34 | ) | ||||
Net (loss) income before taxes
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(1,345 | ) | 540 | |||||
Income taxes
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30 | 16 | ||||||
Net (loss) income
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$ | (1,375 | ) | $ | 524 | |||
Basic (loss) earnings per share
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$ | (0.30 | ) | $ | 0.11 | |||
Diluted (loss) earnings per share
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$ | (0.30 | ) | $ | 0.11 | |||
Weighted average number of shares outstanding:
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Basic
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4,646 | 4,638 | ||||||
Diluted
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4,646 | 4,662 |
Three Months Ended
March 31,
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2012
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2011
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EBITDA Reconciliation (as adjusted)
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Net (loss) income
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$ | (1,375 | ) | $ | 524 | |||
Interest expense
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34 | 53 | ||||||
Income tax expense
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30 | 16 | ||||||
Depreciation and amortization
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66 | 69 | ||||||
Stock based compensation
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52 | 40 | ||||||
EBITDA (1)
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$ | (1,193 | ) | $ | 702 | |||
Adjusted EBITDA Per Basic and Diluted Share Reconciliation
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Net (loss) income
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$ | (0.30 | ) | $ | 0.11 | |||
Interest expense
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0.01 | 0.01 | ||||||
Income tax expense
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0.01 | 0.00 | ||||||
Depreciation and amortization
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0.01 | 0.02 | ||||||
Stock based compensation
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0.01 | 0.01 | ||||||
EBITDA per basic and diluted share (1)
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$ | (0.26 | ) | $ | 0.15 |
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(1)
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The EBITDA tables (as adjusted) presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses adjusted EBITDA to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity's profitability because it does not include costs and expenses for interest, depreciation and amortization, income taxes and stock based compensation. Adjusted EBITDA as presented herein may not be comparable to similarly named measures reported by other companies.
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Three Months Ended
March 31,
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||||||||
Reconciliation of EBITDA, as adjusted, to cash flows used in operating activities (1)
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2012
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2011
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EBITDA (as adjusted)
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$ | (1,193 | ) | $ | 702 | |||
Interest expense
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(34 | ) | (53 | ) | ||||
Income tax expense
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(30 | ) | (16 | ) | ||||
Bond amortization
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1 | - | ||||||
(Gain) loss on sale of marketable securities
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- | (5 | ) | |||||
Deferred income
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- | (22 | ) | |||||
Net change in operating assets and liabilities
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718 | (2,102 | ) | |||||
Cash flows used in operating activities
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$ | (538 | ) | $ | (1,496 | ) |
March 31, 2012
(unaudited)
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December 31, 2011
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 450,000 | $ | 1,709,000 | ||||
Restricted cash
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672,000 | 671,000 | ||||||
Investments in marketable securities
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256,000 | 228,000 | ||||||
Accounts receivable, less allowance for doubtful accounts
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3,686,000 | 4,941,000 | ||||||
Inventories
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14,041,000 | 12,550,000 | ||||||
Income tax receivable
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8,000 | - | ||||||
Deferred tax asset
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942,000 | 527,000 | ||||||
Other current assets
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219,000 | 250,000 | ||||||
Total current assets
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20,274,000 | 20,876,000 | ||||||
Property and equipment, net
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1,095,000 | 1,014,000 | ||||||
Goodwill
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1,688,000 | 1,688,000 | ||||||
Deferred tax asset
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1,309,000 | 1,734,000 | ||||||
Other assets
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97,000 | 99,000 | ||||||
Total assets
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$ | 24,463,000 | $ | 25,411,000 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Current portion of long term debt
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$ | 964,000 | $ | 931,000 | ||||
Accounts payable
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1,353,000 | 804,000 | ||||||
Liability associated with non-renewal of senior officers’ contracts
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756,000 | 623,000 | ||||||
Accrued expenses
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1,104,000 | 1,435,000 | ||||||
Income tax payable
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- | 30,000 | ||||||
Customer advances
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26,000 | 15,000 | ||||||
Total current liabilities
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4,203,000 | 3,838,000 | ||||||
Liability associated with non-renewal of senior officers’ contracts, net of current portion
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597,000 | - | ||||||
Long-term debt, net of current portion
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1,895,000 | 2,095,000 | ||||||
Total liabilities
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6,695,000 | 5,933,000 | ||||||
Stockholders’ Equity
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Common stock
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510,000 | 510,000 | ||||||
Additional paid-in capital
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22,567,000 | 22,515,000 | ||||||
Treasury stock
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(1,317,000 | ) | (915,000 | ) | ||||
Accumulated other comprehensive loss
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(3,000 | ) | (18,000 | ) | ||||
Accumulated deficit
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(3,989,000 | ) | (2,614,000 | ) | ||||
Stockholders’ equity
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17,768,000 | 19,478,000 | ||||||
Total liabilities and stockholders’ equity
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$ | 24,463,000 | $ | 25,411,000 |