IEC Electronics Corp. (IEC)

[Knowledge is King]

IEC reports Q4 $.17 vs $.09



(COMTEX) B: IEC Announces Strong Results for the Fourth Quarter and Fiscal
2010 ( Marketwire )

NEWARK, NY, Nov 09, 2010 (MARKETWIRE via COMTEX) --
Electronics Corp. (NYSE Amex: IEC)
-- Revenue for Q4 fiscal 2010 increased 49 percent to $27.3 million from
$18.3 million in Q4 2009
-- Operating income for Q4 fiscal 2010 increased 50 percent to $2.1
million or 7.8% of revenue as compared to $1.4 million or 7.7% for Q4
fiscal 2009
-- Revenue for fiscal 2010 increased 43 percent to $96.7 million from
$67.8 million for fiscal 2009
-- Operating income for fiscal 2010 increased 60 percent to $7.7 million
or 8% of revenue as compared to $4.8 million or 7% of revenue for
fiscal 2009

IEC Electronics Corp. (NYSE Amex: IEC) announced its results for the
fourth quarter and fiscal year ending September 30, 2010.

For the quarter, the Company reported revenue of $27.3 million and
operating income of $2.1 million. This compares with revenue of $18.3
million and operating income of $1.4 million for the same quarter of
fiscal 2009. Fourth quarter net income after tax was $1.6 million, or
$0.17 per diluted share compared to net income after tax of $0.9
million or $0.09 per diluted share in the prior year period.

For fiscal year 2010, IEC reported revenue of $96.7 million and
operating income of $7.7 million. This compares to revenue of $67.8
million and operating income of $4.8 million for fiscal 2009. Net
income after tax was $4.7 million, or $0.48 per diluted share, for
year end 2010 compared to net income after tax of $5.0 million or
$0.52 per diluted share, for fiscal 2009. The $0.52 per diluted share
included a tax benefit of $1.9 million (equivalent to $0.20 per
share). Excluding the $1.9 million tax benefit, the net income after
tax for 2009 would have been $3.1 million, or $0.32 per diluted
share.

W. Barry Gilbert, Chairman of the Board and CEO, stated, "2010 was a
strong year for us as we continue to improve our operating
performance and make solid inroads into the Medical sector. Our
backlog grew substantially despite continued economic turbulence. The
fiscal 2010 closing backlog was over $90.0 million as compared to a
fiscal 2009 closing backlog of $41.4 million. $20 million of the
backlog increase was due to the General Technology and Celmet
acquisitions made in December 2009 and July 2010 respectively. More
than half of the increase was attributable to organic growth. Our
backlog consists of two categories: orders and firm forecasted
commitments."

For the fourth quarter of 2010, IEC reported earnings before
interest, taxes depreciation and amortization (EBITDA) of $3.0
million or $0.31 per diluted share, compared to EBITDA of $1.5
million or $0.16 per diluted share in the fourth quarter of 2009. For
the fiscal year 2010, IEC reported EBITDA of $9.1 million or $0.95
per diluted share as compared to $5.4 million or $0.56 per diluted
share for fiscal 2009. The Company views EBITDA as a useful measure
of its operating performance as it eliminates the aberrations
produced by its net operating loss carryforward (NOL), and enables
the investment community to better evaluate long-term profitability
and cash being generated by the Company. IEC has a remaining NOL for
federal and state taxes of approximately $34 million.

"Our customer mix has changed somewhat during 2010," Gilbert said.
"The Medical sector significantly expanded and now represents 12.6%
of revenue ($12.2 million), increasing from 7.7% of revenue ($5.2
million) in fiscal 2009. The Military sector remains strong. It
represents 49.0% of revenue ($47.5 million) in fiscal 2010, up from
43.4% of revenue ($29.4 million) in fiscal 2009. Sales to our
Industrial customer base increased to $19.4 million, representing
20.0% of 2010 revenue, down proportionally from 24.3% of revenue
($16.5 million) in fiscal 2009. The Industrial sector is recovering
slowly, and we are pleased with the results we have achieved in this
sector. The Aerospace sector also decreased as a percentage of our
business to 9.2% of revenue in fiscal 2010 from 12.0% of revenue in
fiscal 2009, but increased in absolute dollars to $8.9 million from
$8.1 million.

"Fiscal 2010 saw IEC successfully integrate the acquisitions of
General Technology and Celmet," Gilbert continued. "These two
acquisitions have improved the strategic position of the Company by
broadening our product offerings and diversifying our customer base.
We continue to look for companies that could provide a good fit with
our strategic vision. Without any acquisitions, we expect revenue
growth from our existing business of approximately 17% for fiscal
2011, and expect both our net income and EBITDA to grow
commensurately. We believe our Military and Aerospace sectors will
remain strong but anticipate that the Industrial sector is likely to
remain under pressure for most of 2011. Finally, we believe we can
continue to expand our presence in the Medical sector, which, as
mentioned above, grew nicely between 2009 and 2010.

"As we have said previously, we firmly believe the Company is
continuing to move in the right direction and we are confident that
we are creating future value for our customers and shareholders and
opportunity for our employees."

IEC Electronics Corporation provides contract electronics
manufacturing services to advanced technology companies primarily in
the military, aerospace, communications, medical, and industrial
sectors. The Company's ultra high reliability capabilities include:
design, prototype and volume printed circuit board assembly, material
procurement and control, manufacturing and test engineering support,
systems build, final packaging and distribution. As a full service
EMS provider, AS9100, IEC is ISO-9001:2008 and ISO 13485 registered,
and a NSA approved supplier under the COMSEC standard. The Company is
headquartered outside Rochester, New York and has operations in
Rochester, New York; Victor, New York; and Albuquerque, New Mexico.
Additional information about IEC can be found on its web site at
www.iec-electronics.com.

The foregoing, including any discussion regarding the Company's
future prospects, contains certain forward-looking statements that
involve risks and uncertainties, including uncertainties associated
with economic conditions in the electronics industry, particularly in
the principal industry sectors served by the Company, changes in
customer requirements and in the volume of revenue to principal
customers, the ability of the Company to assimilate acquired
businesses and to achieve the anticipated benefits of such
acquisitions, competition and technological change, the ability of
the Company to control manufacturing and operating costs and
satisfactory relationships with vendors.

The Company's actual results of operations may differ significantly
from those contemplated by any forward-looking statements as a result
of these and other factors, including factors set forth in our most
recent Form 10-Q and Annual Report and Form 10-K and in other filings
with the Securities and Exchange Commission.
IEC ELECTRONICS CORP - CONSOLIDATED
BALANCE SHEET
SEP 30, 2010 AND SEP 30, 2009
(In Thousands)
SEP 30, 2010 SEP 30, 2009
ASSETS
CURRENT ASSETS
Cash 0 0
Accounts Receivable 16,315 10,354
Inventories 12,068 6,491
Deferred Income Taxes 3,359 2,050
Other Current Assets 234 110
------------ ------------
Total Current Assets 31,976 19,005
------------ ------------
NET FIXED ASSETS 13,098 2,391
NON-CURRENT ASSETS
Intangible Asset 331 0
Deferred Income Taxes 10,113 13,026
Other Non-Current Assets 164 47
------------ ------------
TOTAL ASSETS 55,682 34,469
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Short Term Borrowings 2,899 1,147
Accounts Payable 8,145 4,183
Accrued Payroll and Related Taxes 2,279 1,564
Other Accrued Expenses 941 531
Other Current Liabilities 0 190
------------ ------------
Total Current Liabilities 14,264 7,615
------------ ------------
LONG TERM DEBT 15,999 6,600
------------ ------------
TOTAL LIABILITIES 30,263 14,215
SHAREHOLDER'S EQUITY
Authorized - 50,000,000 shares
Issued - 10,100,589, Outstanding - 9,087,716
Common stock, par value $.01 per share 101 97
Treasury Shares at Cost - 1,012,873 shares (1,413) (1,413)
Additional Paid-in Capital 41,138 40,632
Retained Earnings (14,407) (19,062)
------------ ------------
TOTAL SHAREHOLDER'S EQUITY 25,419 20,254
------------ ------------
TOTAL LIABILITIES & EQUITY 55,682 34,469
============ ============
IEC ELECTRONICS CORP - CONSOLIDATED
STATEMENT OF INCOME
FOR QUARTER END & YTD SEP 30, 2010 AND SEP 30, 2009
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
SEP 30, 2010 SEP 30, 2009 SEP 30, 2010 SEP 30, 2009
Sales 27,287 18,273 96,674 67,811
Cost of Sales 22,511 15,077 80,411 56,985
------------- ------------- ------------- -------------
Gross Profit 4,776 3,196 16,263 10,826
Less: Operating
Expenses
Selling & G&A 2,654 1,792 8,576 6,006
Other 0 0 0 0
------------- ------------- ------------- -------------
Total Operating
Expenses 2,654 1,792 8,576 6,006
------------- ------------- ------------- -------------
Operating Profit 2,122 1,404 7,687 4,820
Interest and
Financing
Other
Expense/(Income) (387) (70) (182) (287)
------------- ------------- ------------- -------------
Net Income before
Income Taxes 2,289 1,389 7,055 4,718
Provision for
/(benefit
from)Income
Tax 661 486 2,400 (238)
------------- ------------- ------------- -------------
Net Income 1,628 903 4,655 4,956
============= ============= ============= =============
Basic Earnings
Per Share $ 0.18 $ 0.10 $ 0.52 $ 0.57
Diluted Earnings
Per Share $ 0.17 $ 0.09 $ 0.48 $ 0.52
Basic Shares 9,086,793 8,683,226 8,990,180 8,728,930
Diluted Shares 9,599,377 9,621,288 9,608,174 9,553,526
IEC ELECTRONICS CORP - CONSOLIDATED
RECONCILIATION OF NET INCOME TO EBITDA
FOR QUARTER END & YTD SEP 30, 2010 AND SEP 30, 2009
(In Thousands)
ACTUAL PRIOR ACTUAL PRIOR
QUARTER QUARTER YTD YTD
SEP 30, 2010 SEP 30, 2009 SEP 30, 2010 SEP 30, 2009
Net Income 1,628 903 4,655 4,956
Provision for /
(benefit from)
Income Tax 661 486 2,400 (238)
Depreciation and
Amortization
Expense 499 67 1,224 282
Net Interest
Expense / (Income) 220 85 814 389
------------ ------------ ------------ ------------
EBITDA 3,008 1,541 9,093 5,389
------------ ------------ ------------ ------------
Basic Earnings Per
Share $ 0.33 $ 0.18 $ 1.01 $ 0.62
Diluted Earnings
Per Share $ 0.31 $ 0.16 $ 0.95 $ 0.56
Basic Shares 9,086,793 8,683,226 8,990,180 8,728,930
Diluted Shares 9,599,377 9,621,288 9,608,174 9,553,526
Contact:
Heather Keenan
IEC Electronics Corp.
[phone]
Email Contact
John Nesbett/Jennifer Belodeau
Institutional Marketing Services
[phone]
Email Contact

SOURCE: IEC Electronics
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