National Technical Systems Announces Fiscal 2007 Second Quarter, Six Months Results.CALABASAS, Calif. -- National Technical Systems, Inc. (Nasdaq:NTSC (National TV Standards Committee) The committee that developed the television standards for the U.S, which are also used in Canada, Japan, South Korea and several Central and South American countries. Both the committee and the standard are called "NTSC. ) (NTS NTS National Technical Systems NTS National Trust for Scotland NTS Nevada Test Site NTS NT Server (Microsoft Windows) nts Not the Same NTS National Traffic System (amateur radio) ) today announced results for its fiscal 2007 second quarter and six months ended July 31, 2006. Total revenues for the second quarter of fiscal 2007 increased to $28.4 million from $26.8 million for the same period in the prior year. Total revenues for the six months ended July 31, 2006 increased to $56.6 million from $54.2 million for the same period in the prior year. Net income for the second quarter of fiscal 2007 was $247,000 as compared to $468,000 for the same period in the prior year with corresponding diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.03 in the current period compared to $0.05 for the same quarter in the prior year. Net income for the six months ended July 31, 2006 was $599,000 as compared to $1,202,000 for the same period in the prior year with corresponding diluted earnings per share of $0.06 in the current period compared to $0.13 for the same period in the prior year. Earnings for the second quarter and six months ended July 31, 2006 were primarily impacted by after-tax share-based compensation expense of $194,000 or $0.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share and $305,000 or $0.03 per diluted share, respectively. The Company adopted the provisions of SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System No. 123R at the beginning of fiscal 2007. If the Company had recognized the provisions of SFAS No. 123 in the prior year, the Company would have recorded $99,000 or $0.01 per diluted share and $217,000 or $0.03 per diluted share in after-tax share-based compensation expense in the second quarter and six months ended July 31, 2005, respectively. In addition, net income was negatively impacted by an increase in energy costs at the Company's California laboratories, an increase in acquisition and integration costs associated with the three acquisitions this year and the continued weakness in the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. and program delays at our Camden, Arkansas Camden is the county seat of Ouachita County in south Arkansas, United States.GR6. According to 2006 Census Bureau estimates, the population of the city is 12,024. facility. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. William McGinnis William McGinnis may refer to:
William "Bill" McGinnis, Ph.D. is a molecular biologist and professor of biology at the University of California, San Diego (UCSD). commented: "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the increase in energy costs at our California laboratories, increased acquisition and integration costs and the current program delays at our Camden, Arkansas facility, a number of our other facilities performed very well. The Company experienced an increase in telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. business at our Northeast and Plano, Texas Plano (IPA: /ˈpleɪnoʊ/) is a wealthy suburb of Dallas, Texas, located to the north, mainly within Collin County, but also extending into Denton County. According to the 2000 U.S. facilities and an increase in aerospace and defense business at our Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and Rustburg, Virginia Rustburg is a census-designated place (CDP) in Campbell County, Virginia, United States. The population was 1,271 at the 2000 census. It is the county seat of Campbell CountyGR6. The public high school in Rustburg is Rustburg High School. facilities. These facilities performed very well financially. We also continue to position NTS for future growth. On August 1, 2006 we acquired Dynamic Test Labs, which adds additional EMI/EMC EMI/EMC Electromagnetic Interference/Electromagnetic Compatibility capability at our Arizona laboratory and adds additional capacity at our Texas and California laboratories." Revenues from Engineering & Evaluation for the fiscal 2007 second quarter increased 11.6% to $19.2 million, compared to $17.2 million for the same period in the prior year. For the six months ended July 31, 2006, revenues increased 11.2% to $38.4 million, compared to $34.5 million for the same period in the prior year. The year-over-year increase in revenues was primarily due to additional revenues of $718,000 from the acquisition on June 9, 2006 of B&B Technologies, increases in aerospace revenues from the Santa Clarita Santa Clarita, city (1990 pop. 110,642), Los Angeles co., S Calif., suburb 30 mi (48 km) NW of downtown Los Angeles, on the Santa Clara River; inc. 1987. Situated in the Santa Clara valley and nearby canyons, Santa Clarita includes the former towns of Canyon Country, laboratory as a result of the enhanced capability and capacity at that facility and increases in overall revenues from the telecommunications, electronics and registration markets. These increases were partially offset by a decrease in the automotive testing business and defense business, particularly in the second quarter due to program delays. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the Engineering & Evaluation group decreased to $774,000 in the current quarter, compared to $1,114,000 for the same period in the prior year. For the six months ended July 31, 2006, operating income decreased to $1,715,000, compared to $2,557,000 for the same period in the prior year. Revenues from Technical Solutions for the fiscal 2007 second quarter decreased 3.3% to $9.2 million compared to $9.5 million for the year-earlier period. For the six months ended July 31, 2006, revenues decreased 7.4% to $18.2 million, compared to $19.7 million for the same period in the prior year. Operating income in the Technical Solutions group increased to $118,000 in the current quarter compared to $6,000 for the year-earlier period. For the six months ended July 31, 2006, operating income was $80,000 compared to $57,000 for the same period in the prior year. Conference Call NTS is conducting a conference call to review the financial results today, September 14th, at 10:00 AM Pacific Time (11:00 AM Mountain Time, 12:00 PM Central Time, 1:00 PM Eastern Time). The dial-in number for the call is 800-366-7449. A live web cast of the call can be accessed at www.ntscorp.com About National Technical Systems, Inc. National Technical Systems, Inc. is a business-to-business services company providing organizations in the aerospace, defense, information technology (IT) and high technology markets integrated testing, certification, quality registration, systems evaluation and engineering solutions. For additional information about National Technical Systems, visit its web site at www.ntscorp.com. Cautionary Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : The statements in this press release that relate to future plans, events or performance, are forward-looking statements that involve risks and uncertainties, including risks associated with uncertainties pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to customer orders, demand for services and products, development of markets for the companies' services and products and other risks identified in the companies' SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . The companies undertake no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date hereof or to reflect the occurrence of unanticipated events.
NATIONAL TECHNICAL SYSTEMS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated
Statements of Income
Three Months Ended Six Months Ended
July 31, July 31,
2006 2005 2006 2005
----------- ----------- ----------- -----------
Net revenues $28,438,000 $26,755,000 $56,589,000 $54,199,000
Cost of sales 21,859,000 20,516,000 43,772,000 41,362,000
----------- ----------- ----------- -----------
Gross profit 6,579,000 6,239,000 12,817,000 12,837,000
Selling, general
and
administrative
expense 5,747,000 5,120,000 11,157,000 10,335,000
Equity income
from non-
consolidated
subsidiary (60,000) (35,000) (135,000) (112,000)
----------- ----------- ----------- -----------
Operating
income 892,000 1,154,000 1,795,000 2,614,000
Other income
(expense):
Interest
expense, net (451,000) (329,000) (812,000) (647,000)
Other income,
net 123,000 16,000 129,000 16,000
----------- ----------- ----------- -----------
Total other
expense, net (328,000) (313,000) (683,000) (631,000)
Income before
income taxes and
minority
interest 564,000 841,000 1,112,000 1,983,000
Income taxes 270,000 335,000 474,000 735,000
----------- ----------- ----------- -----------
Income before
minority
interest 294,000 506,000 638,000 1,248,000
Minority interest (47,000) (38,000) (39,000) (46,000)
----------- ----------- ----------- -----------
Net Income $ 247,000 $ 468,000 $ 599,000 $ 1,202,000
=========== =========== =========== ===========
Net income per
common share:
Basic $ 0.03 $ 0.05 $ 0.07 $ 0.13
=========== =========== =========== ===========
Diluted $ 0.03 $ 0.05 $ 0.06 $ 0.13
=========== =========== =========== ===========
Weighted average
common shares
outstanding 8,544,000 9,106,000 8,718,000 9,079,000
Dilutive effect
of stock options 899,000 541,000 799,000 516,000
----------- ----------- ----------- -----------
Weighted average
common shares
outstanding,
assuming
dilution 9,443,000 9,647,000 9,517,000 9,595,000
=========== =========== =========== ===========
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