Delaware
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0-3936
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11-1826363
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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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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·
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Net sales increased to $6,447,000 from $6,162,000;
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·
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Gross margin was 38.6% as compared to 38.7%;
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·
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Net loss was $80,000 ($0.02 loss per share) as compared to a net loss of $1,375,000 ($0.30 loss per share). The net loss for the 2012 first quarter included a charge of $1,194,000 in connection with employment contract provisions of a departing senior officer. Excluding this charge, the net loss for the 2012 first quarter was $181,000 ($0.04 loss per share);
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·
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Earnings before interest, taxes, depreciation and amortization, and stock based compensation (EBITDA, as adjusted) was $59,000 ($0.01 per diluted share) as compared to a loss of $1,193,000 ($0.26 loss per share). First quarter 2012’s amount included the charge of $1,194,000; and,
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·
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Backlog at March 31, 2013 was $14.7 million as compared to $20.6 million one year ago.
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·
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TDL’s sales and margins were adversely affected by contract delays. We expect net sales at TDL to improve in the next two quarters as shipments commence for its displays for a major helicopter program booked at the end of 2012. In addition to lower revenue, TDL’s margins were adversely affected by higher material costs in connection with a prototype order shipped during the quarter. It is expected that this prototype order will transition into production orders at normal margins later this year or early next year.
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·
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Despite cost cutting measures taken at ICS at the end of 2012, ICS incurred an operating loss for the current first quarter due to an increase in estimated costs needed to complete two prototype units for the Signal Data Converter. These prototype units are expected to be shipped in the second quarter. This revision in estimated costs lowered the amount of revenue recorded in the first quarter under the percentage of completion method and also adversely affected ICS’s gross margin.”
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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
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President & Chief Executive Officer
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212-836-9611
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631-435-8300
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The Equity Group Inc.
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Three Months Ended
March 31,
(unaudited)
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||||||||
2013
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2012
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Net sales
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$ | 6,447 | $ | 6,162 | ||||
Cost of sales
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3,956 | 3,775 | ||||||
Gross profit
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2,491 | 2,387 | ||||||
Selling general and administrative expenses
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2,531 | 2,597 | ||||||
Costs related to non-renewal of chief operating officer contract
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- | 1,194 | ||||||
Interest expense
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17 | 34 | ||||||
Investment and other (income)
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(3 | ) | (93 | ) | ||||
Loss before income taxes
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(54 | ) | (1,345 | ) | ||||
Income taxes
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26 | 30 | ||||||
Net loss
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$ | (80 | ) | $ | (1,375 | ) | ||
Basic loss per share
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$ | (0.02 | ) | $ | (0.30 | ) | ||
Diluted loss per share
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$ | (0.02 | ) | $ | (0.30 | ) | ||
Weighted average number of shares outstanding:
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Basic
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4,487 | 4,646 | ||||||
Diluted
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4,487 | 4,646 |
Three Months Ended
March 31,
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2013
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2012
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EBITDA (as adjusted) Reconciliation
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Net loss
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$ | (80 | ) | $ | (1,375 | ) | ||
Interest expense
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17 | 34 | ||||||
Income tax expense
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26 | 30 | ||||||
Depreciation and amortization
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68 | 66 | ||||||
Stock based compensation
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28 | 52 | ||||||
EBITDA (as adjusted) (1)
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$ | 59 | $ | ( 1,193 | ) | |||
EBITDA (as adjusted) Per Basic and Diluted Share Reconciliation
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||||||||
Net loss
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$ | (0.02 | ) | $ | (0.30 | ) | ||
Interest expense
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0.00 | 0.01 | ||||||
Income tax expense
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0.01 | 0.01 | ||||||
Depreciation and amortization
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0.01 | 0.01 | ||||||
Stock based compensation
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0.01 | 0.01 | ||||||
EBITDA (as adjusted) per basic and diluted share (1)
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$ | 0.01 | $ | ( 0.26 | ) |
(1)
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The EBITDA (as adjusted) tables presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses EBITDA (as adjusted) 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 (as adjusted) 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. EBITDA (as adjusted) 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 provided by (used in) operating activities (1)
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2013
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2012
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EBITDA (as adjusted)
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$ | 59 | $ | (1,193 | ) ) | |||
Interest expense
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(17 | ) | (34 | ) | ||||
Income tax expense
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(26 | ) | (30 | ) | ||||
Bond amortization
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1 | 1 | ||||||
Loss on sale of marketable securities
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2 | - | ||||||
Net change in operating assets and liabilities
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1,372 | 718 | ||||||
Cash flows provided by (used in) operating activities
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$ | 1,391 | $ | (538 | ) |
March 31, 2013
(unaudited)
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December 31, 2012
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 1,179,000 | $ | 610,000 | ||||
Investments in marketable securities
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261,000 | 251,000 | ||||||
Accounts receivable, less allowance for doubtful accounts
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4,067,000 | 5,372,000 | ||||||
Inventories
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12,928,000 | 13,271,000 | ||||||
Costs and estimated earnings in excess of billings on uncompleted contracts
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884,000 | 875,000 | ||||||
Deferred tax asset
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647,000 | 447,000 | ||||||
Other current assets
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234,000 | 252,000 | ||||||
Total current assets
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20,200,000 | 21,078,000 | ||||||
Property and equipment, net
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1,159,000 | 1,099,000 | ||||||
Goodwill
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868,000 | 868,000 | ||||||
Deferred tax asset
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1,603,000 | 1,806,000 | ||||||
Other assets
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111,000 | 125,000 | ||||||
Total assets
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$ | 23,941,000 | $ | 24,976,000 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Current portion of long term debt
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$ | 33,000 | $ | 33,000 | ||||
Note payable-bank
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2,700,000 | 3,324,000 | ||||||
Accounts payable
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782,000 | 741,000 | ||||||
Liability associated with non-renewal of senior officer contract
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563,000 | 661,000 | ||||||
Accrued expenses
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1,129,000 | 1,294,000 | ||||||
Income tax payable
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4,000 | 2,000 | ||||||
Customer advances
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17,000 | 88,000 | ||||||
Total current liabilities
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5,228,000 | 6,143,000 | ||||||
Liability associated with non-renewal of senior officer contract, net of current portion
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33,000 | 41,000 | ||||||
Long-term debt, net of current portion
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- | 8,000 | ||||||
Total liabilities
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5,261,000 | 6,192,000 | ||||||
Stockholders’ Equity
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Common stock
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523,000 | 510,000 | ||||||
Additional paid-in capital
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22,741,000 | 22,726,000 | ||||||
Treasury stock
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(1,756,000 | ) | (1,700,000 | ) | ||||
Accumulated other comprehensive gain (loss)
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1,000 | (3,000 | ) | |||||
Accumulated deficit
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(2,829,000 | ) | (2,749,000 | ) | ||||
Stockholders’ equity
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18,680,000 | 18,784,000 | ||||||
Total liabilities and stockholders’ equity
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$ | 23,941,000 | $ | 24,976,000 |