249 0 Kommentare Nortech Systems Reports Third Quarter Results

Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of engineering and manufacturing solutions for complex electromechanical products, reported net sales of $30.1 million for the third quarter ended September 30, 2019, compared with $29.6 million for the third quarter of 2018.

Operating income for the third quarter of 2019 was $713,000, which is a 10% increase compared to operating income of $649,000 for the third quarter of 2018. Net income for the third quarter of 2019 was $413,000, or $0.16 per diluted common share. This is a 13% increase compared to net income for third quarter of 2018 of $364,000, or $0.14 per diluted common share. September 30, 2019 backlog was $58.1 million vs. $43.1 million on September 30, 2018.

“We are pleased with our third quarter improvements in margin and operating income. Revenue met our expectations and our margins were positively impacted by the continuation of strategic operational efficiencies while we manage through component shortages,” said Jay D. Miller, president and CEO. “We continue to expect to deliver on our backlog for the remainder of the year, which is amongst the highest Nortech backlog in 10 years.”

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
		September 30,
		Unaudited			Unaudited
		2019			2018

Net Sales	$	30,058		$	29,558

Cost of Goods Sold		26,423			26,171

Gross Profit		3,635			3,387
		12.1	%		11.5	%

Operating Expenses
Selling Expenses		589			717
General and Administrative Expenses		2,333			2,021
Total Operating Expenses		2,922			2,738

Income From Operations		713			649

Other Expense
Interest Expense		(256	)		(170	)

Income Before Income Taxes		457			479

Income Tax Expense		44			115

Net Income	$	413		$	364

Income Per Common Share - Diluted	$	0.16		$	0.14

Weighted Average Number of Common Shares Outstanding - Diluted		2,657,911			2,682,901

Condensed Consolidated Balance Sheets (in thousands)

		September 30, 2019		December 31, 2018
		Unaudited		Audited
Cash	$	160	$	480
Restricted Cash		1,794		467
Accounts Receivable		20,135		20,093
Inventories		16,941		17,004
Contract Assets		7,211		6,431
Prepaid Expenses and Other Current Assets		2,019		1,381
Property and Other Long-term Assets		14,747		10,178
Goodwill and Other Long-term Assets, Net		3,772		3,926
Total Assets	$	66,779	$	59,960

Accounts Payable	$	18,384	$	18,142
Current Portion of Lease Obligation		476		337
Other Current Liabilities		6,756		6,413
Long Term Line of Credit		12,430		9,264
Long-term Debt and Other Long-term Liabilities		4,581		4,714
Long Term Operating Lease Obligation, Net		4,517		-
Shareholders’ Equity		19,635		21,090
Total Liabilities and Shareholders’ Equity	$	66,779	$	59,960