FIX and REPLACE Tel-Instrument Electronics Corp. Reports Second Quarter 2022 Net Income of $ 1.0 Million

0


EAST RUTHERFORD, NJ, November 15, 2021– (BUSINESS WIRE) – Please replace version with the following corrected version due to multiple revisions.

The updated version reads as follows:

TEL-INSTRUMENT ELECTRONICS CORP. ANNOUNCES NET EARNINGS OF $ 1.0 MILLION FOR THE SECOND QUARTER OF 2022

Tel-Instrument Electronics Corp. (“Such” or the “Company”) (OTCQB: TIKK), a leading designer and manufacturer of avionics test and measurement solutions, today reported net income of $ 1.0 million (0 , $ 28 per common share) on income of $ 3.6 million for the second quarter of fiscal 2022 ended September 30, 2021.

Highlights include:

  • Second quarter revenue increased to $ 3.6 million, an 8% increase from the prior year quarter.

  • Gross margin percentages improved by 46.2% due to manufacturing efficiency, tight cost controls and product line pricing.

  • Quarterly operating expenses increased 25% to $ 1.3 million due to higher engineering and profit sharing expenses.

  • Operating income increased to $ 385,000 for the current quarter, compared to $ 342,000 in the quarter last year.

  • Six-month operating profit increased to $ 1,151,000 from $ 551,000 in the prior year period.

  • The Company obtained a total loan forgiveness on the second PPP loan of $ 722,000.

  • Net income increased to $ 1.0 million, or $ 0.28 per common share and $ 0.20 per share on a fully diluted basis.

  • Cash balances improved to $ 6.8 million from $ 5.5 million at the start of the year.

  • Net worth improved to $ 6.6 million from $ 5.2 million at the start of the year.

Mr. Jeffrey O’Hara, President and CEO of Tel-Instrument commented, “The company had a profitable second quarter despite continued supply chain disruptions that hampered our production. With the recent cancellation of the PPP loan, we now have no debt and a growing cash balance which has allowed us to continue our aggressive engineering programs such as SDR / OMNI. We have started marketing this product to key customers whose production and deliveries are expected to begin in the first quarter of calendar year 2022. We believe it will be a strong competitor in the commercial and military markets. We were informed this week that Lockheed Martin has lifted the stop work order on the MADL program. This will generate one-time engineering revenue over the next two quarters and is expected to translate into production revenue in what is essentially a new market for TIC. We are also actively working with the US Navy on a “mid-life” update to our CRAFT test sets that would generate significant revenue over the next five to ten years. We also continue to invest in our market-leading Mode 5 products and have successfully demonstrated new Mode 5 Level 2B testing capabilities at an international military testing event. This new Mode 5 capability could potentially lead to future software upgrades of all of our Mode 5 test sets in the field.

“With respect to the Aeroflex litigation, we continue to believe that we have strong grounds for the price to be waived or reduced. The appeal process has been delayed due to the COVID-19 pandemic, but we expect a decision within the next 12 months. “

About Tel-Instrument Electronics Corp.

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation and aerospace and government / military defense markets. Tel-Instrument provides instruments for testing, measuring, calibrating and repairing a wide range of airborne navigation and communication equipment. For more information, please visit our website at www.telinstrument.com.

This press release includes statements which are not historical in nature and may be qualified as “forward-looking statements”, including those relating to future financial and operational results, benefits and synergies of the combined companies, statements regarding the prospects of the company, pricing trends, and strengths within the industry, completion dates of investment projects, expected sales growth, cost reduction strategies and their results, long term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions relating to matters which are not historical facts. All forecasts of future results contain a measure of uncertainty and, therefore, actual results could differ materially. Factors that may make a difference include: changes in the general economy; changes in demand for the Company’s products or in the cost and availability of its raw materials; the actions of its competitors; the success of our clients; technological change; changes in employee relations; government regulations; the dispute, including its inherent uncertainty; difficulties in plant operations and materials; transport, environmental issues; and other unforeseen circumstances. A number of these factors are discussed in previous filings by the Company with the United States Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release. The Safe Harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 (the “Act”) protects companies from any liability for their forward-looking statements if they comply with the requirements of the Act.

TEL-INSTRUMENT ELECTRONICS CORP.

CONDENSED CONSOLIDATED BALANCE SHEET

September 30

2021

March, 31st,

2021

(unaudited)

ASSETS

Current assets:

Cash

$

4,808,457

$

3 485 275

Accounts receivable, net

1,530,060

1 933 321

Net stocks

2 910 721

3,437,989

Restricted cash to support the call bond

2,011,050

2,011,050

Prepaid expenses and other current assets

188,127

263,067

Total current assets

11 448 415

11,130,702

Equipment and leasehold improvements, net

142,277

200 769

Operating right of use assets

1,815,304

1 922 805

Deferred tax asset, net

2,443,042

2,675,040

Other long-term assets

35 109

35 110

Total assets

$

15 884 147

$

15,964,426

LIABILITIES & EQUITY

Current liabilities :

Operating lease debts – current portion

$

190 622

$

201 883

Accounts payable

391,247

906,149

Deferred revenue – current portion

149 223

150,709

Accrued expenses – paid vacation, payroll and payroll deductions

342 170

457,232

Accrued damages

5,993,433

5 889 023

Accrued charges – other

235 310

365 975

Total current liabilities

7,302,005

7 970 971

Operating lease debts – long term

1,624,682

1,720,921

Long-term debt – PPP

722,577

Deferred revenue – long term

312,420

332,428

Total responsibilities

9 239 107

10,746,897

Commitments and contingencies

Equity:

Preferred shares, 1,000,000 authorized shares, par value $ 0.10 per share

Preferred shares, 500,000 shares 8% Cumulative Series A Convertible Preferred

issued and outstanding, par value $ 0.10 per share

3,695,998

3,695,998

Preferred shares, 166,667 shares 8% Cumulative Series B Convertible Preferred

issued and outstanding, par value $ 0.10 per share

1,147,367

1,147,367

Common shares, 7,000,000 authorized shares, par value $ 0.10 per share,

3,255,887 shares issued and outstanding, respectively

325,586

325,586

Premium

7 170 954

7 318 620

Accumulated deficit

(5,694,865

)

(7,270,042

)

Total equity for shareholders

6 645 040

5,217,529

Total liabilities and equity

$

15 884 147

$

15,964,426

TEL-INSTRUMENT ELECTRONICS CORP.

SUMMARY CONSOLIDATED EARNINGS STATEMENTS

(Unaudited)

Three months ended

Six months ended

September 30

2021

September 30

2020

September 30

2021

September 30

2020

Net sales

$

3,610,863

$

3,336,396

$

7 743 256

$

6,275,833

Cost of sales

1 942 956

1 969 573

4,060,602

3,404,399

Gross margin

1,667,907

1,366,823

3,682,654

2,871,434

Operating costs :

Selling, general and administrative expenses

596,618

464,809

1,150,651

1,126,060

Litigation costs

3,220

5 514

4,400

8,210

Engineering, research and development

682 852

554 555

1,376,427

1,186,508

Total operating expenses

1,282,690

1,024,878

2,531,478

2,320,778

Income from operations

385,217

341 945

1,151,176

550 656

Other income (expenses):

Interest income

995

1,879

1 980

4 725

Other income

22,260

35 853

13 854

Gain on PPP loan forgiveness

722,577

722,577

Interest expense – judgment

(52,490

)

(52,490

)

(104,410

)

(127,634

)

Interest charges

(9,380)

)

(19,160

)

Total other net income, (expenses)

693 342

(59,991

)

656,000

(128 215

)

Income before taxes

1,078,559

281 954

1,807,176

422,441

Income tax expense

78 883

59,206

231,999

88 713

Net revenue

999 676

222,748

1,575,177

333 728

Privileged dividends

80,000

80,000

160,000

160,000

Net income attributable to common shareholders

$

919 676

$

142,748

$

1,415,177

$

173,728

Basic income per common share

$

0.28

$

0.04

$

0.43

$

0.05

Diluted earnings per common share

$

0.20

$

0.04

$

0.31

$

0.05

Weighted average of shares outstanding:

Basic

3,255,887

3,255,887

3,255,887

3,255,887

Diluted

5,095,665

5,068,949

5,095,665

3,255,887

See the source version on businesswire.com: https://www.businesswire.com/news/home/202111115005425/en/

Contacts

Pauline Romeo
Tel-Instrument Electronics Corp.
(201) 933-1600


Share.

Comments are closed.