EXHIBIT 99.1
National Technical Systems Announces Fiscal 2008 Second Quarter,
Six Months Results
Wednesday September 12, 7:30 am ET
CALABASAS, Calif.--(BUSINESS WIRE)--National Technical Systems, Inc.
(NASDAQ:NTSC - News; NTS), a leading provider of engineering and evaluation
services, announced today results for its fiscal 2008 second quarter and six
months ended July 31, 2007.
Net income for the fiscal 2008 second quarter increased 212% to $770,000
as compared to $247,000 for the same period in the prior year with corresponding
diluted earnings per share of $0.08 in the current period compared to $0.03 for
the same quarter in the prior year. Net income for the six months ended July 31,
2007 increased 127% to $1,361,000 as compared to $599,000 for the same period in
the prior year with corresponding diluted earnings per share of $0.15 in the
current period compared to $0.06 for the same period in the prior year.
Total revenues for the fiscal 2008 second quarter increased 9.1% to $31.0
million, compared to $28.4 million for the same period in the prior year. Total
revenues for the six months ended July 31, 2007 increased 7.5% to $60.8 million,
compared to $56.6 million for the same period in the prior year.
Gross profit increased 23.6% to $8,129,000 in the current quarter,
compared to $6,579,000 for the same period in the prior year. Gross profit for
the six months ended July 31, 2007 increased 18.2% to $15,144,000, compared to
$12,817,000 for the same period in the prior year.
"Results this quarter exceeded our expectations in the Engineering and
Evaluation segment," said CEO William C. McGinnis. "An expanding aerospace
market and a healthy defense market fueled the revenue growth in this segment.
These markets generate higher margins and have positively impacted our bottom
line. In addition, the Company's investments in advanced technology
capabilities, combined with continued focus on customer support are keys to
organic growth and customer retention." McGinnis added: "We are committed to our
continuous growth initiative through a sound acquisition strategy and increased
sales efforts. We have strengthened management in the professional services
business focusing on engineering development and technical solutions. We believe
that there are some synergies with our Engineering and Evaluation segment that
will help us capitalize upon our capabilities in the Technical Solutions
segment."
Revenues from Engineering & Evaluation for the fiscal 2008 second quarter
increased 18.6% to $22.8 million, compared to $19.2 million for the same period
in the prior year. For the six months ended July 31, 2007, revenues increased
15.3% to $44.2 million, compared to $38.4 million for the same period in the
prior year. The year-over-year increase in revenues was primarily due to strong
revenues in the defense and aerospace markets. Operating income in the
Engineering & Evaluation segment increased 136.2% to $1,828,000 in the current
quarter, compared to $774,000 for the same period in the prior year. For the six
months ended July 31, 2007, operating income increased 74.6% to $2,995,000,
compared to $1,715,000 for the same period in the prior year.
Revenues from Technical Solutions for the fiscal 2008 second quarter were
$8.2 million, compared to $9.2 million for the year-earlier period. For the six
months ended July 31, 2007, revenues decreased 8.9% to $16.6 million, compared
to $18.2 million for the same period in the prior year. Operating income in the
Technical Solutions segment was $16,000 in the current quarter, compared to
$118,000 for the year-earlier period. For the six months ended July 31, 2007,
operating income increased to $138,000 from $80,000 for the same period in the
prior year.
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Conference Call
NTS is conducting a conference call to review the financial results today
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 1-800-219-6110. A live web
cast of the call can be accessed at www.ntscorp.com (Investors page).
About National Technical Systems, Inc.
National Technical Systems, Inc. is a leading provider of engineering and
evaluation services to the defense, aerospace, telecommunications, automotive
and high technology markets. Through a world-wide network of resources, NTS
provides full product life-cycle support, offering world class design
engineering, compliance, testing, certification, quality registration and
program management. For additional information about NTS, visit our website at
www.ntscorp.com or call 800-270-2516.
Cautionary Note Regarding Forward-Looking Statements:
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 to
customer orders, demand for services and products, development of markets for
the company's services and products and other risks identified in the company's
SEC filings, and in particular its Annual Report on Form 10-K. 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. 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 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,
2007 2006 2007 2006
--------------------------------------------------------------
Net revenues $31,025,000 $28,438,000 $60,829,000 $56,589,000
Cost of sales 22,896,000 21,859,000 45,685,000 43,772,000
--------------------------------------------------------------
Gross profit 8,129,000 6,579,000 15,144,000 12,817,000
Selling, general
and
administrative
expense 6,300,000 5,747,000 12,082,000 11,157,000
Equity income from
non-consolidated
subsidiary (15,000) (60,000) (71,000) (135,000)
--------------------------------------------------------------
Operating
income 1,844,000 892,000 3,133,000 1,795,000
Other income
(expense):
Interest
expense, net (478,000) (451,000) (932,000) (812,000)
Other income
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(expense), net (29,000) 123,000 127,000 129,000
--------------------------------------------------------------
Total other
expense, net (507,000) (328,000) (805,000) (683,000)
Income before
income taxes and
minority interest 1,337,000 564,000 2,328,000 1,112,000
Income taxes 549,000 270,000 942,000 474,000
--------------------------------------------------------------
Income before
minority interest 788,000 294,000 1,386,000 638,000
Minority interest (18,000) (47,000) (25,000) (39,000)
--------------------------------------------------------------
Net income $ 770,000 $ 247,000 $ 1,361,000 $ 599,000
=========== =========== =========== ===========
Net income per common share:
Basic $ 0.09 $ 0.03 $ 0.16 $ 0.07
==============================================================
Diluted $ 0.08 $ 0.03 $ 0.15 $ 0.06
==============================================================
Weighted average
common shares
outstanding 8,779,000 8,544,000 8,761,000 8,718,000
Dilutive effect of
stock options 664,000 899,000 620,000 799,000
--------------------------------------------------------------
Weighted average
common shares
outstanding,
assuming dilution 9,443,000 9,443,000 9,381,000 9,517,000
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