You are aware of a 3.5 billion dollar contract? Whooooooooooooo and thanks! Have a link to that contract by chance? Somehow I missed it but that is awesome news from you and thanks for sharing! Go TEVE!!!
Southampton, PA, September 28, 2012: Environmental Tectonics Corporation ("ETC" or the "Company") (ETCC) today announced a financial restructuring, made possible by continued positive results and a strengthening balance sheet, to reduce its annual net cash payments for dividends and interest by approximately $1.5 million per year. The restructuring also reduces the number of participating preferred shares in the amount equivalent to 5,032,091 shares of Common Stock, or nearly 25% of the total outstanding common and participating shares, and is expected to have a positive impact on the Company`s earnings.
As part of this restructuring, the Company`s revolving line of credit with PNC Bank was reduced from $20 million to $15 million, while the term of the revolving line was extended twenty eight months to October 31, 2015. PNC Bank also provided a five-year term loan of $15 million. ETC used $10 million of the proceeds from the term loan to repurchase and retire 10,000 shares of 10% Preferred Stock, which was convertible to 5,032,091 shares of Common Stock. The revolving line of credit will no longer be guaranteed by H.F. Lenfest, one of the Company`s Directors and largest shareholder, and will instead be secured by substantially all of the Company`s assets. Mr. Lenfest will provide a guarantee on the new $15 million term-loan for a period of thirty months, after which his guarantee will be removed.
Following the close of the transaction, the dividends on the remaining Series E Preferred Stock will be reduced from ten percent (10%) to four percent (4%), subject to shareholder approval.
"Today`s announcement represents a major accomplishment for ETC," said William F. Mitchell, Sr., ETC`s President and CEO. "This financial restructuring, including the repurchase and retirement of the Preferred Stock, is an indication of ETC`s growing financial strength over the last few years. This restructuring benefits our common shareholders by increasing income attributable to them and by significantly reducing the dilutive effect of the Preferred Stock being retired. We are very grateful for the support we have received from Mr. Lenfest over the last decade, and for his sharing of our vision for ETC`s technologies. Without Mr. Lenfest`s support it is unlikely that ETC would now be the leader it is in motion-based flight simulation. Once we complete our restructuring, we believe we will be in an excellent position to leverage the strength of the ETC brand, our deep customer relationships, and reputation for industry leading products to take advantage of improving market conditions and global growth opportunities."
About ETC
ETC designs, manufactures and sells software driven products and services used to recreate and monitor the physiological effects of motion on humans and equipment and to control, modify, simulate and measure environmental conditions. These products include aircrew training systems (aeromedical, tactical combat and general), disaster management training systems, sterilizers (steam and gas), environmental testing products and hyperbaric chambers and other products and services that involve similar manufacturing techniques and engineering technologies. ETC`s unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. ETC is headquartered in Southampton, PA. For more information about ETC, visit http://www.etcusa.com/.
Forward-looking Statements
Discussions of some of the matters contained in this press release may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and, as such, may involve risks and uncertainties. ETC based these forward-looking statements on its current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about ETC and its subsidiaries that may cause actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. Accordingly, ETC cautions you not to place undue reliance on the forward-looking statements in this press release.
These forward-looking statements include statements with respect to the Company`s expectations, anticipations, and intentions, including, but not limited to, (i) projections of revenues, income, or loss, (ii) statements made about the benefits of the financial restructuring, future market conditions, and growth opportunities, and (iii) statements preceded by, followed by, or, that include, terminology such as `may,` `will,` `should,` `expect,` `plan,` `anticipate,` `believe,` `estimate,` `future,` `predict,` `potential,` `intend,` or `continue,` and similar expressions. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors. Some of these risks and uncertainties, in whole or in part, are beyond the Company`s control. Shareholders are urged to carefully review these risks and the risks discussed in the Company`s Annual Report on Form 10-K for the fiscal year ended February 24, 2012 under the caption `Item 1A. Risk Factors` prior to making an investment in the Company`s Common Stock. The Company cautions that the foregoing list of factors that could affect forward-looking statements by ETC is not exclusive. Except as required by federal securities law, the Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by or on behalf of the Company.
Contact: Bob Laurent, CFO Phone: 215-355-9100 (Ext. 1550) E-mail: rlaurent@etcusa.com
###
- Financial Statements Follow -
Pro Forma Financial Statements
Following are a pro forma summary of results for fiscal 2012 and fiscal 2013 first quarter, and a pro forma balance sheet as of May 25, 2012. The pro forma results for fiscal 2012 and fiscal 2013 Q1 are presented as though the refinancing and stock purchase transactions took place on February 26, 2011. The pro forma balance sheet is presented as though the transactions occurred on May 25, 2012.
Table A ENVIRONMENTAL TECTONICS CORPORATION SUMMARY TABLE OF RESULTS (amounts in thousands, except per share information)
Fiscal 2012 Fiscal 2013 Q1 As reported Pro forma As reported Pro forma Net sales $ 66,294 $ 66,294 $ 16,070 $ 16,070 Cost of goods sold 42,763 42,763 9,622 9,622 Gross profit $ 23,531 $ 23,531 $ 6,448 $ 6,448 Gross profit margin % 35.5% 35.5% 40.1% 40.1% Selling and marketing expenses 5,481 5,481 1,340 1,340 General and administrative expenses 8,513 8,513 1,883 1,883 Research and development expenses 1,400 1,400 310 310 Operating expenses 15,394 15,394 3,533 3,533 Operating income $ 8,137 $ 8,137 $ 2,915 $ 2,915 Operating margin % 12.3% 12.3% 18.1% 18.1% Interest expense, net 734 954 214 269 Other (income) expense, net (85) (85) (3) (3) Income before income taxes $ 7,488 $ 7,268 $ 2,704 $ 2,649 Pre-tax income margin % 11.3% 11.0% 16.8% 16.5% Provision for income taxes 2,620 2,543 1,014 993 Net income $ 4,868 $ 4,725 $ 1,690 $ 1,656 Expense (income) attributable to non-controlling interest 5 5 5 5 Net income attributable to ETC $ 4,873 $ 4,730 $ 1,695 $ 1,661 Preferred Stock dividend (2,208) (484) (552) (121) Income applicable to common and participating shareholders $ 2,665 $ 4,246 $ 1,143 $ 1,540
Basic earnings per common and participating share: Distributed earnings per share: Common $ - $ - $ - $ - Preferred $ 0.20 $ 0.08 $ 0.05 $ 0.02 Undistributed earnings per share: Common $ 0.13 $ 0.28 $ 0.06 $ 0.10 Preferred $ 0.13 $ 0.28 $ 0.06 $ 0.10
Total basic weighted average common and participating shares 20,209 15,177 20,231 15,199
Total diluted weighted average shares 20,497 15,465 20,381 15,349
The pro forma results reflect increased interest expense related to the new financing, offset in part, by lower fees paid on collateral and reduced taxes. They also reflect lower dividends as a result of fewer participating preferred shares outstanding and a reduction of dividends from 10% to 4% on the remaining participating preferred shares outstanding.
Table B ENVIRONMENTAL TECTONICS CORPORATION CONSOLIDATED BALANCE SHEETS (amounts in thousands, except share information)
May 25, 2012 (As reported) May 25, 2012 (Pro forma) ASSETS Current assets: Cash and cash equivalents $ 3,344 $ 3,344 Restricted cash 6,158 6,158 Accounts receivable, net 6,124 6,124 Costs and estimated earnings in excess of billings on uncompleted long-term contracts 23,247 23,247 Inventories, net 5,517 5,517 Deferred tax assets, current 4,206 4,206 Prepaid expenses and other current assets 1,121 1,121 Total current assets 49,717 49,717
Property, plant, and equipment, net 14,967 14,967 Capitalized software development costs, net 609 609 Deferred tax assets, non-current, net 3,194 3,194 Other assets 14 14 Total assets $ 68,501 $ 68,501
LIABILITIES AND SHAREHOLDERS` EQUITY Current liabilities: Current portion of long-term debt obligations $ 108 $ 3,108 Accounts payable, trade 5,151 5,151 Billings in excess of costs and estimated earnings on uncompleted long-term contracts 3,399 3,399 Customer deposits 4,526 4,526 Accrued taxes 394 394 Accrued interest and dividends 997 647 Other accrued liabilities 3,630 3,630 Total current liabilities 18,205 20,855
Long-term debt obligations, less current portion: Credit facility payable to bank 18,141 13,491 Other long-term debt - 12,000 Total long-term debt obligations, less current portion 18,141 25,491
Total liabilities 36,346 46,346
Commitments and contingencies
Shareholders` equity: Cumulative convertible participating Preferred Stock, Series D, $0.05 par value, 11,000 shares authorized; 386 and 0 shares outstanding as reported and pro forma, respectively 386 - Cumulative convertible participating Preferred Stock, Series E, $0.05 par value, 25,000 shares authorized; 21,741 and 12,127 shares outstanding as reported and pro forma, respectively 21,741 12,127 Common Stock, $0.05 par value, 50,000,000 shares authorized; 9,142,296 shares issued and outstanding as reported and pro forma 457 457 Additional paid-in capital 9,884 9,884 Accumulated other comprehensive loss (349) (349) Retained earnings - - Total shareholders` equity before non-controlling interest 32,119 22,119 Non-controlling interest 36 36 Total shareholders` equity 32,155 22,155 Total liabilities and shareholders` equity $ 68,501 $ 68,501
Pro forma balance sheet adjustments include (a) reduced borrowings under revolving credit facility by $5 million, (b) increasing debt ($3 million current and $12 million long-term) to reflect the new term loan, and (c) a reduction of Preferred Stock by $10 million.
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ETC via Thomson Reuters ONE HUG#1644695 . ...@yahoofinance on Twitter, become a fan on Facebook .....RELATED HEADLINES BY TICKER. ..ETC Announces Financial Restructuring to Improve Earnings and Cash Flow - Thomson Reuters ONE ETC SIMULATION TO SPONSOR ADMS TRAINING DAY TO BENEFIT FLORIDA FIRST RESPONDERS - Thomson Reuters ONE ETC Simulation Awarded Contract to Deliver ADMS Training Simulator to Special Forces in Asia - Thomson Reuters ONE ENVIRONMENTAL TECTONICS CORP Financials - EDGAR Online Financials ENVIRONMENTAL TECTONICS CORP Files SEC form 8-K, Results of Operations and Financial Condition, Financial Statements - EDGAR Online ..... There are no comments yet ....Top Stories ». ...The Great Disconnect: Awful Earnings vs. a Hot Stock Market Breakout More than 80% of Q3 earnings pre-announcements have been negative, a rate that LPL Financial's Jeff Kleintop says … .. .JPMorgan Suit a Model For Future Cases?CNBC.. .Spain Ready for Bailout, Germany Signals 'Wait' SourcesReuters.. .The 'Fiscal Cliff' OpportunityNew York Times...Samsung Allowed to Sell Galaxy Tab in U.S. as Court Lifts BanReuters.........Recent QuotesPortfolios Recent Quotes Symbol Price Change % Chg ETCC 1.80 0.00 0.00% Environmental Tectonics Corp.
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module. You need to enable your browser cookies to view your most recent quotes. Search for share prices .Save List to Portfolio » Loading portfolios.......Trading Center .......Powerful Technology to Make Investing Easy. ..Trade Free for 60 Days + Get up to $600 cash. .....Compare Brokers » ....Featured Content. .Wall Street Secretly Loves Obama: Bleier Breakout - 22 hours agoWal-Mart Veteran 'Loves the Company' but Agitates for Change Daily Ticker - 20 hours agoEverybody Hates QE3: Bernanke Responds to Critics Daily Ticker - 22 hours ago.......Yahoo! Finance on Facebook ...... YAHOO! FINANCE ON TWITTER. ....POLL. It’s the first day of the fourth quarter. What best describes your game plan for stocks in Q4?
.Poll Choice Options Keep investing and ride the rally Take some back as correction protection Hold tight and see what happens . Vote See results .7 hours remaining
Fundamental company data provided by Capital IQ. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data and daily updates provided by Morningstar, Inc.
News 
Market Data 
Discover 
