Iec Electronics (NYSE AMEX:IEC)

Second Quarter 2012 Results

• For the quarter ended March 30, 2012 the Company reported revenue of $38,020,000, this compares to revenue of $35,085,000 in prior year quarter.
• Net income of $2,607,000 or $0.26 per diluted share vs net income of $1,747,000 or $0.17 per diluted share for the prior year quarter

W. Barry Gilbert, Chairman of the Board and CEO, stated, "This was an excellent quarter with meaningful improvements across all of our important financial metrics. Most significantly, our gross profit margin reached 21.7 % and operating margin reached 11.8%. These results are some of the best in the company's history, and particularly strong for our industry.

"When we announced our first quarter, we expected our operational cost containment programs to take longer to impact our performance. During the second quarter, these containments certainly supported our results; however it was the shift to higher margin product mix in combination with operational improvement in all segments of the business that produced these historically strong results. All of our businesses operated better than they did last quarter. SCB has improved significantly, has made a positive contribution for the quarter, and we expect their contribution to continue. Some previously delayed programs are starting to be released. Furthermore, SCB has picked up a number of new programs and a significant new customer.

"While our operating income margin saw a sharp increase to 11.8%, we expect operating margins to move closer to 10% over the next 18 months, still well ahead of average operating margin for the last two years of approximately 8.0%. In addition, with cash from improved margins we continue to pay down our debt. At this time, with our current visibility, we expect to reduce our debt by approximately $9 million for the fiscal year ending in September.

"Consistent with past practice, we do not report backlog during the year but we do offer a mid-year update. In that regard, our current backlog is about 10% lower than the backlog figure reported in our 10-K for fiscal 2011. As in the past, it is important to note that some of the backlog extends past 2012 into 2013 and 2014.

"Finally, our sector performance has shifted somewhat, creating a slightly more balanced portfolio. Our military/aerospace sector remains strong, though decreased as a percentage of our sales to 43% for the first six months of fiscal 2012, as compared to 51% of sales at the end of fiscal 2011. This decrease is attributable to the slowdown in military spending; however, we have not had any program cancellations. Our medical and other sector has stayed relatively constant at 25% of sales for the first six months of fiscal 2012 compared to 26% at the close of fiscal 2011. Our industrial and communications sectors improved to 32% of sales for the first six months of this year compared to 23% at the close of fiscal year end 2011.

"Our Company continues to move forward and we are confident that we are creating future value for our shareholders and opportunity for our employees."

Full Year 2011 Results

• Revenue of $133.3 million compared to revenue of $96.7 million for fiscal 2010.
• Net income after tax was $6.8 million, or $0.68 per share, for year end 2011 compared to net income after tax of $4.7 million or $0.48 per share for fiscal 2010.
• For the quarter, the Company reported revenue of $34.9 million and net income of $2.6 million or $0.26 per diluted share. Approximately $1.1 million or $0.11 per share stems from an adjustment related to Southern California Braiding. This compares with revenue of $27.3 million and net income of $1.6 million, or $0.16 per share in the fourth quarter of the prior year.

W. Barry Gilbert, Chairman of the Board and CEO, stated, "2011 was a solid year for IEC as we continue to improve our operating performance and make strong inroads into the Medical sector. Our backlog grew substantially despite continued economic turbulence. The fiscal 2011 closing backlog was over $121.0 million as compared to a fiscal 2010 closing backlog of $91.4 million. $12.7 million of the backlog increase from fiscal 2010 was associated with the SCB acquisition made in December 2010.

"We continue to look for companies that provide a good fit with our strategic vision. Without any acquisitions, our long term annual growth goal is 17%. This year that goal will be difficult to achieve. As mentioned above, we believe we have solid Military and Aerospace platforms. However, the impasse in Congress releasing the funding is uncertain. We expect revenue growth from our existing businesses to be between 9% and 14% for fiscal 2012, and expect both our net income and EBITDA to grow commensurately. The Industrial sector is likely to remain under pressure as long as the broader economy continues to struggle. The pressure is not evenly distributed among the niches we serve, with some of our Industrial customers growing quite rapidly. Our growth in the Medical sector is most encouraging and we believe we can continue to expand our presence in that market."

Mr. Gilbert concluded, "As we have said previously, we firmly believe the Company is continuing to move in the right direction and we are confident that we are creating future value for our customers and shareholders and opportunity for our employees."

NEWARK, NY--(Marketwire - Sep 22, 2011) - IEC Electronics Corp. (NYSE Amex: IEC) announces that it has received an order valued at approximately $6.7 million from a Fortune 100 industrial customer. Deliveries are expected to commence either late in the first quarter or early in the second quarter of fiscal 2012.

W. Barry Gilbert, Chairman of the Board and CEO, stated, "We appreciate the continuing confidence of this longstanding customer in our quality standards and on time performance, as demonstrated by their placement of this additional order with us. Despite some negative reports in the press relating to the health of the economy, many of our customers continue to move forward and we're pleased to be part of their ongoing commercial programs."

Third Quarter Fiscal 2011 Results

For the quarter ended July 1, 2011 the Company reported revenue of $34,626,000 for the quarter, operating income of $2,623,000 (7.6% of sales) and net income of $1,333,000 or $0.13 per share. This compares to revenue of $26,095,000, operating income of $2,268,000 (8.7% of sales) and net income of $1,238,000 or $0.13 per share for the quarter ended June 25, 2010.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of fiscal 2011 was $3,483,000 or $0.35 per share, compared to $2,555,000 or $0.27 per share for the same quarter last year.

IEC reported revenue of $98,355,000, operating income of $7,909,000 and net income of $4,129,000 or $0.42 per share for the first nine months of 2011. This compares to revenue of $69,387,000, operating income of $5,565,000 and net income of $3,027,000 or $0.32 per share for the first nine months of fiscal 2010.

EBITDA for the nine month period ended July 1, 2011 totaled $9,925,000 or $1.00 per share, compared to $6,067,000 or $0.63 per share for the same period last year.

"This was a solid quarter for IEC, but not without its challenges. On the positive side our organic growth was 14% as compared to the same period in fiscal 2010, which is in line with our outlook. Our backlog continues to expand in the face of some weakening broad macro-economic news both domestically and from the Far East. Southern California Braiding recently received a $5 million order from one of its military customers, and we continue to work on a number of exciting new programs, all of which will impact fiscal 2012," said W. Barry Gilbert, Chairman and Chief Executive Officer.

Mr. Gilbert continued, "Nonetheless, the revenue growth and gross margin were somewhat disappointing. Both the growth and the margin were negatively impacted by a delay in $3 million of revenue caused by unplanned downtime in certain equipment, the delay in finalizing the federal military budget, and an unusual number of customer change orders. In addition, we experienced a shift in our product mix. The product mix which was very favorable last quarter was equally unfavorable this quarter and impacted our gross profit.

"The long term view for Southern California Braiding's future is bright. Its current performance, however, has been choppy as we work our way through integration issues such as implementing new systems and expanding communication and business process tools. Nothing we have observed has diminished our enthusiasm about this acquisition, if anything we are more excited. All the programs we were planning have been approved in the defense appropriation budget and we are likely to receive additional awards.

"We strengthened our balance sheet. However, we fell short of our goal of reducing our bank debt. We believe this is a timing issue and remain confident that our bank debt will be reduced on or ahead of our internal schedule.

"We believe that we have met the challenges before us and remain most optimistic about the Company's future prospects. We are continually building a stronger company with immense capability for our customers, our employees and our shareholders."

Second Quarter Results:

For the quarter ended April 1, 2011 the Company reported

• revenue of $35,085,000,
• operating income of $3,323,000 (9.5% of sales) and
• net income of $1,747,000 or $0.17 per share.
• This compares to revenue of $25,232,000, operating income of $1,983,000 (7.9% of sales) and net income of $1,036,000 or $0.11 per share for the quarter ended March 26, 2010

W. Barry Gilbert, Chairman of the Board and CEO, stated, "This was another good quarter. All of our important financial metrics improved and we are pleased with our progress. Most significant was the growth of operating income to 9.5% of sales versus 7.9% for the same period last year. The improvement was a combination of various factors; increased efficiency, product mix and the margin generated from our latest acquisition Southern California Braiding (SCB). Just as important, organic sales growth increased by more than 20% over the comparable period.

"We are also pleased with the performance of SCB, whose sales and income were accretive to the Company. It is important to note that during the first year after an acquisition we do not look for any real change in either income or sales from the previous year. Integrating a new company requires significant effort and cost. While SCB will be a good addition for IEC and its integration into IEC Electronics is making reasonable progress, it will take the balance of the fiscal year to complete the effort. SCB's backlog continues to grow and the cross selling opportunities are quickly showing signs of potentially being quite successful. We now expect to be ahead of our forecasted annual revenue of $130 million.

NEWARK, NY--(Marketwire - April 15, 2011) - IEC Electronics Corp. announced today that on Tuesday, May 3, 2011 it will release its financial results for the second quarter ended April 1, 2011 and host a conference call to discuss those results with investors.

The Company expects to report revenue of approximately $35 million for the quarter, up 22% from revenue of $28.6 million in the first quarter ended December 31, 2010 and almost 40% from the second quarter of 2010. 

W. Barry Gilbert, Chairman of the Board and CEO, stated, "We are pleased with the preliminary results for our second quarter and look forward to sharing our full results with shareholders."

Mr. Gilbert will lead the call and invites all interested parties to join management's discussion of the Company's financial results and other meaningful developments at 10:00am EDT on Tuesday, May 3, 2011

IEC Electronics Corp. announced its unaudited results for the first quarter of fiscal 2011 ending December 31, 2010.

• The Company reported revenue of $28.7 million for the quarter, operating income of $1,963,000 and net income of $1,049,000 or $0.11 per diluted share. This compares to revenue in the prior year first quarter of $18.1 million, operating income of $1,313,000 and net income of $754,000 or $.08 per diluted share.

W. Barry Gilbert, Chairman of the Board and CEO, stated, "As previously announced, we acquired Southern California Braiding, Inc. ("SCB") on December 17, 2010. Between December 17 and our quarter end, we incurred approximately $70,000 of transitional start-up expenses. The more time we spend with SCB the more excited we become with the prospects for this acquisition and cross selling opportunities. As it was so near the end of the reporting period, the acquisition had almost no impact on our first quarter results. We enjoyed a strong quarter with continued sales, earnings and cash flow growth. During the quarter, we also experienced some challenges introducing a number of new projects while also managing an unusual level of product mix variations, resulting in some temporary inefficiencies amounting to approximately $200,000. With these first quarter inefficiencies behind us we remain confident in our outlook for 2011."

Update from November 9, 2010

For the quarter, the Company reported

• revenue of $27.3 million compared with revenue of $18.3 million
• operating income of $2.1 million compared with operating income of $1.4 million for the same quarter of fiscal 2009.
• net income after tax was $1.6 million, or $0.17 per diluted share compared to net income after tax of $0.9 million or $0.09 per diluted share in the prior year period.

W. Barry Gilbert, Chairman of the Board and CEO, stated, “2010 was a strong year for us as we continue to improve our operating performance and make solid inroads into the Medical sector. Our backlog grew substantially despite continued economic turbulence. The fiscal 2010 closing backlog was over $90.0 million as compared to a fiscal 2009 closing backlog of $41.4 million. $20 million of the backlog increase was due to the General Technology and Celmet acquisitions made in December 2009 and July 2010 respectively. More than half of the increase was attributable to organic growth. Our backlog consists of two categories: orders and firm forecasted commitments.”

“Fiscal 2010 saw IEC successfully integrate the acquisitions of General Technology and Celmet,” Gilbert continued. “These two acquisitions have improved the strategic position of the Company by broadening our product offerings and diversifying our customer base. We continue to look for companies that could provide a good fit with our strategic vision. Without any acquisitions, we expect revenue growth from our existing business of approximately 17% for fiscal 2011, and expect both our net income and EBITDA to grow commensurately. We believe our Military and Aerospace sectors will remain strong but anticipate that the Industrial sector is likely to remain under pressure for most of 2011. Finally, we believe we can continue to expand our presence in the Medical sector, which, as mentioned above, grew nicely between 2009 and 2010.

W. Barry Gilbert, Chairman of the Board and CEO, stated, "This was an especially good quarter. Operating profit of over 8.5% of sales is unique in our industry. Sales growth of more than 50% and operating profit growth of more than 70% as compared to the third quarter of fiscal 2009 were especially gratifying. We continue to execute our growth strategy and enjoy the benefit of a favorable mix of products. Excluding the contribution from our acquisition of GTC, our sales growth from IEC Contract Manufacturing and IEC Wire and Cable was over 15% as compared to the same period of fiscal 2009. We expect to meet our forecasted full-year 2010 revenue of $96 million.

"GTC continues to perform well and its integration with IEC Electronics is moving along nicely. Likewise, GTC's backlog continues to grow as they have acquired a number of new programs from existing customers. As we observed last quarter, unlike IEC Contract Manufacturing and IEC Wire and Cable, whose backlog is shipped during the next four to nine months, GTC's backlog is weighted to 2011 and beyond.

"Consistent with past practice, we do not report our backlog during the year. However, our shareholders should be pleased to know that our current backlog is higher than the backlog reported in our Form 10-K for fiscal 2009.

"Our sector performance remains consistent with previous quarters. The military/aerospace sector remains strong and represents 59% of our sales for the first nine months of fiscal 2010 as compared to 55% of sales at the close of fiscal 2009. Our medical/other sector has increased from 8% of sales at the close of fiscal 2009 to 13% of sales for the first nine months of fiscal 2010. Our industrial sector though growing in absolute terms, declined slightly to 20% of sales for the first nine months of this year as compared to 24% of sales at the close of fiscal year end 2009. The turbulence in the economy impacts the industrial sector more than the others. However, we expect the sector to gain strength over the balance of the year and we envision modest continued improvement in fiscal 2011.

"In summary, our Company continues to move in the right direction and we are confident that we are creating future value for our shareholders and opportunity for our employees."