National Technical Systems Reports Third Quarter and Nine-Month Results; Third Consecutive Quarter of Record Earnings; Net Income Up Over 91 Percent.CALABASAS, Calif.--(BUSINESS WIRE)--Dec. 3, 1997--National Technical Systems Inc. (NASDAQ NASDAQin full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM: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. ) Wednesday announced record net income for its fiscal third-quarter and nine months ended Oct. 31, 1997, with net income for both periods, when compared with the prior-year periods, increasing more than 91 percent. In comparison to the same periods last year, revenue for this year's third quarter and nine months, as previously reported, also reached record levels, increasing over 19 percent and 21 percent, respectively. Gross margins for the third quarter and nine months increased to over 27 percent for both periods, compared with 24 percent for the year earlier periods. Revenues in the company's core business -- technical services -- grew strongly during the quarter and nine months, with several facilities realizing the best quarterly revenues and profits in the company's history. For this year's third quarter, revenue was $15 million, with net income of $681,000 or $0.10 per share, versus revenue of $12.3 million, with net income of $355,000, or $0.05 per share for the year earlier period. For the first nine months of this year, revenue was $41.7 million, with net income of $2 million, or $0.29 per share, compared with the previous year's nine-month revenue of $34.9 million and net income of $1 million, or $0.16 per share. National Technical Systems President and Chief Executive Officer Jack Lin commented: "Each of our operating divisions was profitable this quarter, and revenue rose in double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. for each of our three businesses. Revenue in Technical Staffing rose 66.1 percent to $3.2 million from $1.9 million with the major increase coming from IT staffing, revenue in Technical Services rose 11.9 percent to $10.9 million from $9.8 million and revenue in Registration Services rose to 38 percent to $901,000 from $653,000. "The substantial increase in our Staffing Division illustrates our commitment to grow in this rapidly expanding and profitable field," Lin continued. "Additionally, the strong revenue increase in our Registration Services Division demonstrates the continued confidence by major government and aerospace organizations in our ability to provide superior registration and audit services. "Examples include being selected by NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. to provide ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 Registration for Johnson Space Center and Marshall Space Flight Centers The George C. Marshall Space Flight Center (MSFC), the original home of NASA, is a lead center for propulsion, Space Shuttle propulsion, Shuttle external fuel tank, crew training and payloads, International Space Station (ISS) design and construction, for computers, networks, and , and McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. , which chose us to provide ISO 9001 Registration for six of its divisions. "Our technical services' business revenue has grown as a result of substantial increases in business at existing, as well as new facilities," he said. "In addition, the continued corporate and government downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing trend has enabled us to win several major contracts during the third quarter. This trend has resulted in a significant increase in outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. by our customers, and is apparent in the strong growth throughout our Technical Services Division. "This has been especially visible in our Electromagnetic Interference See EMI. testing programs, which have demonstrated significant revenue and net income growth." National Technical Systems is a premier diversified diversified (di·verˑ·s technology services company with business in technical services (engineering and evaluation), technical staffing and registration services. -0- The statements in this news release that relate to future plans, events or performance are 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. 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 operating new facilities, customer orders, demand for products and services, development of markets for the company's products and services and other risks identified in the company's 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 company undertakes 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. -0-
NATIONAL TECHNICAL SYSTEMS INC. AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited)
Three Months Ended Nine Months Ended
Oct. 31, Oct. 31,
1997 1996 1997 1996
Revenues $14,970,000 $12,308,000 $41,664,000 $34,857,000
Cost of
sales 10,901,000 9,262,000 30,387,000 26,290,000
Gross
profit 4,069,000 3,046,000 11,277,000 8,567,000
Selling,
general and
administrative
expense 2,495,000 1,882,000 6,772,000 5,566,000
Operating
income 1,574,000 1,164,000 4,505,000 3,001,000
Other income
(expense):
Interest
expense, net (320,000) (261,000) (868,000) (778,000)
Other 4,000 2,000 2,000 28,000
Total other
expense (316,000) (259,000) (866,000) (750,000)
Income before
income taxes,
minority interest
and discontinued
operations 1,258,000 905,000 3,639,000 2,251,000
Income taxes 568,000 407,000 1,637,000 1,014,000
Income before
minority interest
and discontinued
operations 690,000 498,000 2,002,000 1,237,000
Minority interest (9,000) 2,000 (10,000) 11,000
Net income from
continuing
operations $ 681,000 $ 500,000 $ 1,992,000 $ 1,248,000
Loss
from
discontinued
operations 0 (145,000) 0 (209,000)
Net income $ 681,000 $ 355,000 $ 1,992,000 $ 1,039,000
Primary and fully diluted net income per common share
Continuing
Operations 0.10 0.07 0.29 0.19
Discontinued
operations 0.00 (0.02) 0.00 (0.03)
Total $ 0.10 $ 0.05 $ 0.29 $ 0.16
Weighted average number
of common shares and
common stock
equivalents
outstanding 6,946,000 6,710,000 6,827,000 6,697,000
CONTACT: Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. & Caron Inc Damon Wright (investors) Owen Daley (media) 714/252-8440 or National Technical Systems Inc. Lloyd Blonder, 818/591-0776 |
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