Exhibit 99.1 |
NEWS RELEASE
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846 N. Mart-Way Court, Olathe, Kansas 66061 Phone: 913-647-0158 Fax: 913-647-0132
investorrelations@elecsyscorp.com
FOR IMMEDIATE RELEASE:
Contact: Karl B. Gemperli
(913) 647-0158, Phone
(913) 647-0132, Fax
investorrelations@elecsyscorp.com
ELECSYS CORPORATION REPORTS FOURTH QUARTER AND YEAR END
FINANCIAL RESULTS
Olathe, Kansas (July 16, 2007) - Elecsys Corporation (AMEX: ASY), today
announced its financial results for the fourth quarter and fiscal year ended
April 30, 2007.
Sales for the quarter were $5,178,000, an increase of $1,163,000, or 29%, from
the comparable period of fiscal 2006. For the fiscal year ended April 30, 2007,
sales were $19,809,000, an increase of $5,117,000, or 35%, from the fiscal year
ended April 30, 2006. Total consolidated backlog at April 30, 2007 was
$10,403,000, a decrease of $140,000, or 1%, from a total backlog of $10,543,000
on April 30, 2006 and an increase of $594,000 from a total backlog of $9,809,000
on January 31, 2007.
Gross margin was approximately 28% of sales, or $1,429,000, for the quarter as
compared to 32% of sales, or $1,305,000, for the fourth quarter ended April 30,
2006. For the fiscal year ended 2007, gross margin was 30%, or $5,851,000,
compared to 32%, or $4,678,000, for the 2006 fiscal year.
Operating income for the quarter was $408,000, an increase of 32% as compared to
$308,000 for the same quarter in the prior year. For the fiscal year ended April
30, 2007, operating income was $1,528,000, approximately 50% higher than the
$1,019,000 reported in fiscal 2006.
During the last six months of the fiscal year, the Company recognized a $324,000
gain, net of selling expenses, on the sale of our Lenexa facility. In the fiscal
year ended April 30, 2006, the Company incurred a loss on debt retirement of
$124,000 as a result of the early retirement of the tax-exempt Industrial
Revenue Bonds on the Company's former Lenexa facility.
Income tax expense of $507,000 was recorded in fiscal 2007 compared with an
income tax benefit of $916,000 in fiscal 2006. In the previous fiscal year we
recognized a deferred tax asset of $930,000 in the fourth quarter as a result of
our continued
profitability and recorded minimal income tax expense during the year as a
result of our net operating loss carryforwards from previous years.
As a result of the above, net income was $326,000, or $0.09 per diluted share,
for the quarter ended April 30, 2007. For the quarter ended April 30, 2006 net
income was $1,196,000, or $0.35 per diluted share. For the fiscal year ended
April 30, 2007, net income was $1,046,000, or $0.31 per fully diluted share, as
compared to $1,667,000, or $0.49 per fully diluted share for the fiscal year
ended April 30, 2006.
The increase in sales for the quarter was due to both new and existing customer
orders at DCI which increased approximately $5,117,000 or 35% for the current
fiscal year as compared to the previous year. Sales volumes at NTG decreased
approximately 9% in the 2007 fiscal year as a result of fewer unit shipments
which were slightly offset by a large increase in recurring messaging services
revenue, which grew by 92% over the prior fiscal year. Our ovrall improvement in
gross margin dollars resulted from the increase in sales volumes while overall
product mix led to a slight decrease in gross margin percentage. The increase in
operating expenses was primarily driven by moving and relocation expenses,
support engineering and related customer support expenses as well as increases
in personnel and personnel-related expenses resulting from our growth. Due to
the shipments scheduled from our backlog, we expect sales volumes at DCI in the
first half of fiscal year 2008 to be similar to sales volumes achieved during
the last few quarters. Sales at NTG are expected to be higher over the next few
quarters based on their current backlog of orders in addition to sales of their
new satellite-and digital cellular-based products.
Karl B. Gemperli, Chief Executive Officer, remarked, "This was an outstanding
year for the Company, thanks mainly to the efforts of the many dedicated Elecsys
people who are committed to our success. Once again, we increased sales and
operating income and our business model, focused on excellent service and
efficient execution, continued to deliver positive and consistent performance
for our customers and our stockholders. We successfully completed a number of
important initiatives during the past year that further strengthen our platform
for continued growth. With several tax changes and one-time events making a
direct year over year net earnings comparison difficult, operating income, which
was up 50% from fiscal 2006, is a better indicator of our true performance in
fiscal 2007."
Elecsys Corporation is a publicly traded holding company with two wholly owned
subsidiaries, DCI, Inc. and NTG, Inc. DCI designs, manufactures, and integrates
custom electronic interface solutions for original equipment manufacturers in
the aerospace, medical, communications, safety, transportation and other
industrial product industries. DCI has specialized capabilities to design and
efficiently manufacture custom electronic assemblies which integrate a variety
of interface technologies, such as custom liquid crystal displays, light
emitting diode displays, and keypads, with circuit boards and other electronic
components. NTG designs, markets, and provides remote monitoring solutions for
the gas and oil pipeline industry as well as other industries requiring remote
monitoring solutions. For more information, visit our website at
www.elecsyscorp.com.
Safe-Harbor statement: The discussions set forth in this press release may
contain forward-looking comments based on current expectations that involve a
number of risks and uncertainties. Actual results could differ materially from
those projected or suggested in the forward-looking comments. The difference
could be caused by a number of factors, including, but not limited to the
factors and conditions that are described in Elecsys Corporation's SEC filings,
including the Form 10-KSB for the year ended April 30, 2007. The reader is
cautioned that Elecsys Corporation does not have a policy of updating or
revising forward-looking statements and thus he or she should not assume that
silence by management of Elecsys Corporation over time means that actual events
are bearing out as estimated in such forward-looking statements.
Elecsys Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Year Ended
April 30, April 30,
2007 2006 2007 2006
---- ---- ---- ----
Sales $5,178 $4,015 $19,809 $14,692
Cost of products sold 3,749 2,710 13,958 10,014
----------------- ------------------ ------------------ -------------------
Gross margin 1,429 1,305 5,851 4,678
Selling, general and administrative
expenses 1,021 997 4,323 3,659
----------------- ------------------ ------------------ -------------------
Operating income 408 308 1,528 1,019
Financial income (expense):
Interest expense (86) (41) (310) (149)
Loss on debt retirement -- -- -- (124)
Gain on sale of Lenexa facility -- -- 324 --
Interest income 2 1 11 5
----------------- ------------------ ------------------ -------------------
(84) (40) 25 (268)
----------------- ------------------ ------------------ -------------------
Income before income taxes 324 268 1,553 751
Income tax expense (benefit) (2) (928) 507 (916)
----------------- ------------------ ------------------ -------------------
Net income $326 $1,196 $1,046 $1,667
================= ================== ================== ===================
Net income per share information:
Basic $0.10 $0.37 $0.32 $0.51
Diluted $0.09 $0.35 $0.31 $0.49
Weighted average common shares
outstanding:
Basic 3,285 3,240 3,259 3,240
Diluted 3,435 3,407 3,402 3,397
