New Jersey
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001-31990
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22-1441806
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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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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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TEL-INSTRUMENT ELECTRONICS CORP.
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|||
Date: June 26, 2015
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By:
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/s/ Joseph P. Macaluso
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|
Name: Joseph P. Macaluso
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|||
Title: Principal Accounting Officer
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·
|
Revenues increased to $6.4 million, a 43% increase versus the same quarter in the previous year.
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·
|
Reduction in SG&A expenses despite high legal costs associated with the Aeroflex litigation.
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·
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Return to solid profitability with EPS of $0.11 and non-GAAP Adjusted EBITDA of $0.21 in the fourth quarter.
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·
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15% increase in revenues to $18.2 million with sales for the second half of the year of $11.5 million.
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·
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Stable operating expenses despite higher revenues and legal costs.
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·
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The Company reported a loss of $280k for the year which included $500k of non cash charges.
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·
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Non-GAAP Adjusted EBITDA of $541k or $0.17 per share.
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·
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Backlog remains solid at $28.7 million.
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Contact:
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Joseph P. Macaluso
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John Nesbett or Jennifer Belodeau
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Tel-Instrument Electronics Corp.
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Institutional Marketing Services (IMS)
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(201) 933-1600
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(203) 972-9200
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jnesbett@institutionalms.com
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ASSETS
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March 31, 2015
|
March 31, 2014
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||||||
Current assets:
|
||||||||
Cash
|
$
|
185,932
|
$
|
232,118
|
||||
Accounts receivable, net of allowance for doubtful accounts
of $24,795 and $27,282, respectively
|
1,625,171
|
2,095,640
|
||||||
Inventories, net
|
4,032,074
|
4,025,391
|
||||||
Prepaid expenses and other current assets
|
281,002
|
263,592
|
||||||
Deferred financing costs
|
5,429
|
108,321
|
||||||
Deferred tax asset
|
1,064,395
|
1,089,538
|
||||||
Total current assets
|
7,194,003
|
7,814,600
|
||||||
Equipment and leasehold improvements, net
|
270,792
|
450,873
|
||||||
Deferred financing costs – long-term
|
8,792
|
48,142
|
||||||
Deferred tax asset – non-current
|
2,377,583
|
2,273,068
|
||||||
Other assets
|
32,317
|
47,670
|
||||||
Total assets
|
$
|
9,883,487
|
$
|
10,634,353
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$
|
387,839
|
$
|
718,848
|
||||
Capital lease obligations – current portion
|
16,758
|
53,608
|
||||||
Accounts payable
|
2,811,781
|
2,289,858
|
||||||
Progress billings
|
-
|
775,475
|
||||||
Deferred revenues – current portion
|
18,609
|
37,452
|
||||||
Accrued expenses - vacation pay, payroll and payroll withholdings
|
594,114
|
444,238
|
||||||
Accrued expenses - related parties
|
170,348
|
123,036
|
||||||
Accrued expenses – other
|
595,437
|
919,287
|
||||||
Total current liabilities
|
4,594,886
|
5,361,802
|
||||||
Subordinated notes payable – related parties
|
250,000
|
250,000
|
||||||
Capital lease obligations – long-term
|
4,561
|
21,320
|
||||||
Long-term debt, net of debt discount
|
708,604
|
596,526
|
||||||
Warrant liability
|
518,962
|
354,309
|
||||||
Deferred revenues – long-term
|
133,650
|
133,650
|
||||||
Other long-term liabilities
|
33,000
|
56,100
|
||||||
Total liabilities
|
6,243,663
|
6,773,707
|
||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity
|
||||||||
Common stock, 4,000,000 shares authorized, par value $.10 per share,
3,256,887 and 3,251,387 shares issued and outstanding, respectively
|
325,686
|
325,136
|
||||||
Additional paid-in capital
|
8,046,168
|
7,987,100
|
||||||
Accumulated deficit
|
(4,732,030
|
)
|
(4,451,590
|
)
|
||||
Total stockholders’ equity
|
3,639,824
|
3,860,646
|
||||||
Total liabilities and stockholders’ equity
|
$
|
9,883,487
|
$
|
10,634,353
|
Three Months Ended
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Year Ended
|
|||||||||||||||
March 31,
2015
|
March 31,
2014
|
March 31,
2015
|
March 31,
2014
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Net sales
|
$
|
6,449,125
|
$
|
4,504,706
|
18,195,972
|
$
|
15,828,291
|
|||||||||
Cost of sales
|
4,543,781
|
1,998,413
|
12,755,280
|
9,464,404
|
||||||||||||
Gross margin
|
1,905,344
|
2,506,293
|
5,440,692
|
6,363,887
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Selling, general and administrative
|
784,543
|
1,124,068
|
3,149,031
|
3,146,647
|
||||||||||||
Engineering, research and development
|
484,932
|
474,912
|
1,961,275
|
1,853,338
|
||||||||||||
Total operating expenses
|
1,269,475
|
1,598,980
|
5,110,306
|
4,999,985
|
||||||||||||
Income from operations
|
635,869
|
907,313
|
330,386
|
1,363,902
|
||||||||||||
Other income (expense):
|
||||||||||||||||
Amortization of debt discount
|
-
|
(28,937
|
)
|
(75,308
|
)
|
(104,644
|
)
|
|||||||||
Loss on extinguishment of debt
|
-
|
|
-
|
(188,102
|
)
|
(26,600
|
)
|
|||||||||
Amortization of deferred financing costs
|
(1,357
|
)
|
(26,334
|
)
|
(69,165
|
)
|
(108,321
|
)
|
||||||||
Change in fair value of common stock warrants
|
(95,903
|
)
|
157,630
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(164,653
|
)
|
(114,869
|
)
|
|||||||||
Interest income
|
-
|
63
|
-
|
226
|
||||||||||||
Interest expense
|
(33,966
|
)
|
(53,026
|
)
|
(192,970
|
)
|
(305,321
|
)
|
||||||||
Total other income (expense)
|
(131,226
|
)
|
49,396
|
(690,198
|
)
|
(659,529
|
)
|
|||||||||
Income (loss) before income taxes
|
504,643
|
956,709
|
(359,812
|
)
|
704,373
|
|||||||||||
Income tax expense (benefit)
|
131,939
|
391,002
|
(79,372
|
)
|
442,845
|
|||||||||||
Net income (loss)
|
$
|
372,704
|
$
|
565,707
|
$
|
(280,440
|
)
|
$
|
261,528
|
|||||||
Basic income (loss) per common share
|
$
|
0.11
|
$
|
0.17
|
$
|
(0.09
|
)
|
$
|
0.08
|
|||||||
Diluted income (loss) per common share
|
$
|
0.11
|
$
|
0.14
|
$
|
(0.09
|
)
|
$
|
0.10
|
|||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
3,255,028
|
3,249,354
|
3,253,992
|
3,204,028
|
||||||||||||
Diluted
|
3,255,028
|
3,274,220
|
3,253,992
|
3,228,894
|
Three Months
|
Three Months
|
Fiscal
Year
|
Fiscal
Year
|
|||||||||||||
Ended
|
Ended
|
Ended
|
Ended
|
|||||||||||||
March 31,
|
March 31,
|
March 31,
|
March 31,
|
|||||||||||||
2015
|
2014
|
2015
|
2014
|
|||||||||||||
Net income (loss)
|
$ | 372,704 | $ | 565,707 | $ | (280,440 | ) | $ | 261,582 | |||||||
Income tax provision (benefit)
|
131,939 | 391,002 | (79,372 | ) | 442,845 | |||||||||||
Non-recurring gain on discharge of liability
|
- | (790,535 | ) | - | (790,535 | ) | ||||||||||
Depreciation and amortization
|
42,454 | 49,118 | 177,291 | 202,936 | ||||||||||||
Amortization of debt discount
|
- | 28,937 | 75,308 | 104,644 | ||||||||||||
Loss on extinguishment of debt
|
- | - | 188,102 | 26,600 | ||||||||||||
Amortization of deferred financing costs
|
1,357 | 26,334 | 69,165 | 108,321 | ||||||||||||
Change on fair value of common stock warrants
|
95,903 | (157,630 | ) | 164,653 | 114,869 | |||||||||||
Interest, net
|
33,966 | 52,963 | 192,970 | 305,095 | ||||||||||||
Non-cash stock-based compensation
|
3,275 | 36,223 | 33,008 | 84,742 | ||||||||||||
Adjusted Non-GAAP EBITDA
|
$ | 681,598 | $ | 202,119 | $ | 540,685 | $ | 861,099 | ||||||||
Diluted Adjusted Non-GAAP EBITA per common share
|
$ | 0.21 | $ | 0.06 | $ | 0.17 | $ | 0.27 |