EXHIBIT 99.1
Contact: Robert A. Lerman
860-683-2005
NEWS RELEASE OTCBB: TDYT
February 15, 2006
THERMODYNETICS' REPORTS NET SALES FOR CONTINUING OPERATIONS
NET SALES INCREASED 38% IN THE THIRD QUARTER
AND 17% FOR THE LATEST NINE MONTHS
WINDSOR, CT - Wednesday, February 15, 2006 - Thermodynetics, Inc. (TDYT: OTCBB)
Net sales from continuing operations for the three months
ended December 31, 2005 increased by $1,244,000, or 38% over the prior year. For
the nine month period, net sales were $13.6 million, or 17% above the period
ended December 31, 2004. Expectations for the March 2006 fiscal year are for
sales to exceed $18 million.
The increase in year to date sales is due largely to the continued
strong performance in the domestic housing market and air conditioning for
marine applications. Our marketing of heat exchangers containing high efficiency
special purpose enhanced surface titanium tubing for the swimming pool and spa
heat pump industry has received an exceptionally strong response.
Cost of sales increased for both the three and nine month periods of
the current year, compared to the same periods in the prior year. The cost of
metals, principally copper, copper alloys and titanium has risen sharply to
their highest levels in the past six years; although the effects of metal cost
changes are shared to a large degree with customers, the impact is a net
reduction of gross margin. Further, the pass through of a portion of such
material price increases can only be periodically adjusted. Effective with the
new calendar year, price increases have been instituted and improvement in gross
margin is expected.
The increase in selling, general and administrative expenses over the
prior year was 10% and 11% for the three and nine month periods, respectively.
Personnel were added in customer service, engineering and other support
functions to both support the additional sales base and assist in the
development of future products. The Company plans on further additions to its
marketing and engineering staff during the balance of the fiscal year and into
fiscal 2007 to support new products and markets.
ABOUT THERMODYNETICS
Thermodynetics, Inc. is a manufacturer of high performance, high
quality heat exchangers, fabricated metal components and flexible connector
products for heat transfer, transportation, and plumbing applications. The
Company markets its tubing products to customers in the space conditioning,
refrigeration, automotive, biomedical, plumbing, appliance, water heating and
aerospace industries.
The Company's tubing products are presently used in heat pumps as
condensers and evaporators in heating, refrigeration, food processing and
air-conditioning systems; in the biomedical field (as blood or intravenous fluid
heat exchangers); in heat recovery units used to heat water with waste heat from
air conditioning and refrigeration systems; in ice production
systems; in laser coolers, beverage dispensers, food processing systems,
chillers, heat pump systems and boilers, and modules for use as components in
large condensing or desuperheater systems; and are generally usable in most
applications where heat transfer is required. The tubing is also used as a
flexible connector in plumbing applications.
Figures in $000's, Except for Per Share Data
Three Months Ended Nine Months Ended
December 31, December 31,
2005 2004 2005 2004
---- ---- ---- ----
Net Sales $ 4,531 $ 3,287 $13,596 $11,591
Operating Income $ 297 $ 273 $ 1,020 $ 1,139
Income from Continuing Operations
Before Income Taxes $ 177 $ 172 $ 670 $ 853
Provision for Income Taxes $ 0 $ 47 $ 155 $ 168
Income From Continuing Operations $ 177 $ 125 $ 515 $ 685
Income (Loss) from Discontinued
Operations, Net of Tax $ (142) $ 6 $(1,211) $ (138)
Net Income (Loss) $ 35 $ 131 $ (696) $ 547
Weighted Shares Outstanding-
Basic and Diluted 3,983,782 3,946,219 3,978,873 3,942,824
Earnings (Loss) Per Share-
Basic and diluted
From Continuing Operations $ .04 $ .03 $ .13 $ .17
From Discontinued Operations $ (.03) $ .00 $ (.30) $ (.03)
Total Earnings (Loss) Per Share $ .01 $ .03 $ (.17) $ .14
FORWARD LOOKING STATEMENTS
This report contains certain forward-looking statements regarding the Company,
its business prospects and results of operations that are subject to certain
risks and uncertainties posed by many factors and events that could cause the
Company's actual business, prospects and results of operations to differ
materially from those that may be anticipated by such forward-looking
statements. Factors that may affect such forward-looking statements include,
without limitation: the Company's ability to successfully and timely develop and
finance new projects, the impact of competition on the Company's revenues,
changes in unit prices, and supply and demand for the Company's tubing product
line especially in applications serving the commercial, industrial and
residential construction industries.
When used, words such as "believes," "anticipates," "expects,"
"continue", "may", "plan", "predict", "should", "will", "intends" and similar
expressions are intended to identify forward-looking statements, but are not the
exclusive means of identifying forward-looking statements. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this report. The Company undertakes no obligation to
revise any forward-looking statements in order to reflect events or
circumstances that may subsequently arise. Readers are urged to carefully review
and consider the various disclosures made by the Company in this report, news
releases, and other reports filed with the Securities and Exchange Commission
that attempt to advise interested parties of the risks and factors that may
affect the Company's business.