Thugmuffin
3 years ago
$ORBT Orbit International’s Electronics Group Reports May Bookings in Excess of $2,800,000Press Release | 06/07/2022
HAUPPAUGE, N.Y., June 07, 2022 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Electronics Group (“OEG”), reported bookings in excess of $2,800,000 for the month of May 2022. Deliveries for certain of these orders have already commenced and are expected to continue through the second quarter of 2023.
Mitchell Binder, President and CEO of Orbit International, commented, “We are pleased to report that our OEG continues to receive significant orders with total bookings for the month of May 2022 exceeding $2,800,000. These orders were highlighted by our newly acquired subsidiary, Simulator Product Solutions LLC (“SPS”), reporting orders in excess of $1,170,000, its largest booking month since it was acquired earlier this year. In addition, our Q-Vio subsidiary reported orders in excess of $900,000, which included a development order for engineering services that has the potential to develop into significant production orders. These production orders, if received, are not expected before mid-2023.”
Binder added, “Although we had a solid month of bookings for our OEG, as previously mentioned, we are finding that certain orders that we were expecting in the current quarter have been delayed to the second half of 2022 for both the OEG and our Power Group (“OPG”). These orders are generally follow-on orders on existing programs for which we have made deliveries for several years. Several factors are causing delays on these awards, which are coming from the Department of Defense (“DoD”), including work restrictions related to the pandemic and a shifting of prioritization of certain contract awards from the DoD. It should be noted that timing uncertainty in the receipt of contracts from our prime contractors doing business with the U.S government is an inherent factor in our industry. As in the past, although timing remains an uncertainty, we expect these purchase orders to eventually be received. Nevertheless, with the acquisition of SPS, we continue to expect a firm year of operating results.”
In January 2022, Orbit International Corp. announced that its newly formed subsidiary, SPS, had completed its previously announced acquisition of the assets and business of Panel Products, Inc. (“Panel”), a Carson, CA based company founded by Nabil Radi in 1999. The transaction valued Panel at approximately $6,500,000, subject to adjustment, with $4,000,000 of the purchase price paid in cash at closing, an aggregate of up to $1,200,000 in performance related payments payable at the end of 2022 and 2023, and the issuance to Panel of a 19.9% ownership interest in SPS.
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, NY and Carson, CA. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
Thugmuffin
3 years ago
$ORBT Orbit International’s Electronics Group Reports March Bookings in Excess of $1,200,000Press Release | 04/07/2022
HAUPPAUGE, N.Y., April 07, 2022 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Electronics Group (“OEG”), reported bookings in excess of $1,200,000 for the month of March 2022. Deliveries for certain of these orders have already commenced and are expected to continue through the first quarter of 2023.
Mitchell Binder, President and CEO of Orbit International commented, “We are pleased to report that our OEG bookings for March 2022 were in excess of $1,200,000. These orders include an over $800,000 contract for engineering, qualification testing and prototype units, for the redesign of a display that the OEG supplies to a major military prime contractor for use on a significant aircraft program. Once the engineering is completed, we are expecting significant production orders for this redesigned unit over the next several years. In addition, our newly acquired subsidiary, Simulator Product Solutions LLC (“SPS”), received orders for more than $250,000 during March 2022. SPS continues to bid on a significant number of opportunities, although it faces competition for many of these orders.”
Binder added, “We believe our Power Group (“OPG”) is well positioned for increased bookings in 2022. We are expecting two significant orders to be received during the current second quarter. These orders had initially been expected during the first quarter. One contract is for a significant follow-on order for our VPX power supplies and the other is for a COTS power supply. We continue to believe that our OPG is at the forefront of VPX technology and that our VPX opportunities will be the driver of future revenue growth for this segment of our business. In addition, orders for our commercial power supplies, which had been adversely impacted by the pandemic, continue to increase and are tracking for improved bookings over the prior year.”
In January 2022, Orbit announced that its newly formed subsidiary, SPS, had completed its previously announced acquisition of the assets and business of Panel Products, Inc. (“Panel”), a Carson, CA based company founded by Nabil Radi in 1999. The transaction valued Panel at approximately $6,500,000, subject to adjustment, with $4,000,000 of the purchase price paid in cash at closing, an aggregate of up to $1,200,000 in performance related payments payable at the end of 2022 and 2023, and the issuance to Panel of a 19.9% ownership interest in SPS.
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
AskMuncher
3 years ago
$ORBT Orbit International’s Power Group Reports January Bookings of Approximately $1,000,000
Press Release | 02/03/2022
HAUPPAUGE, N.Y., Feb. 03, 2022 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Power Group (“OPG”), reported bookings of approximately $1,000,000 for the month of January 2022. Deliveries for certain of these orders have already commenced and are expected to continue through the fourth quarter of 2022.
Mitchell Binder, President and CEO of Orbit International, commented, “We are pleased to report that our OPG has started 2022 on a positive note with approximately $1,000,000 of orders received in the month of January 2022. These orders included an order for approximately $260,000 from a major international customer for a power supply utilizing our VPX technology. This order represents approximately one half of our customer’s initial requirement and the follow-on order is expected within the next two quarters. Our OPG also received a follow-on COTS order for approximately $375,000 from a major defense contractor for our power supply that supports a significant military program.”
Binder added, “We believe our OPG is well positioned for increased bookings in 2022. We are expecting two significant orders within the next few months, one for a follow-on order for our VPX power supplies and one for a COTS power supply. We continue to believe that our OPG is at the forefront of VPX technology and that our VPX opportunities will be the driver of future revenue growth for this segment of our business. Our VPX revenue has grown by approximately 162% over the last three years and we expect it to continue to grow as prototype orders convert to full production programs.”
In January 2022, Orbit announced that its newly formed subsidiary, Simulator Product Solutions LLC (“SPS”), had completed its previously announced acquisition of the assets and business of Panel Products, Inc. (“Panel”), a Carson, CA based company founded by Nabil Radi in 1999. The transaction valued Panel at approximately $6,500,000, subject to adjustment, with $4,000,000 of the purchase price paid in cash at closing, an aggregate of up to $1,200,000 in performance related payments payable at the end of 2022 and 2023, and the issuance to Panel of a 19.9% ownership interest in SPS.
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
AskMuncher
3 years ago
$ORBT Orbit International Corp. Completes Acquisition of Panel Products, Inc.
Press Release | 01/04/2022
HAUPPAUGE, N.Y., Jan. 04, 2022 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT) today announced that its newly formed subsidiary, Simulator Product Solutions LLC (“SPS”), has completed its previously announced acquisition of the assets and business of Panel Products, Inc. (“Panel”), a Carson, CA based company founded by Nabil Radi in 1999.
The transaction valued Panel at approximately $6,500,000, subject to adjustment, with $4,000,000 of the purchase price paid in cash at closing, an aggregate of up to $1,200,000 in performance related payments payable at the end of 2022 and 2023, and the issuance to Panel of a 19.9% ownership interest in SPS. The cash payment at closing was funded substantially from Orbit’s cash on hand. In connection with the acquisition, SPS entered into a three-year employment agreement with Mr. Radi to serve as its President. The agreement is subject to a three-year extension at the option of Mr. Radi. In addition, prior to its expiration, the agreement may be terminated by either party under certain circumstances. Upon the conclusion of Mr. Radi’s employment agreement with SPS, Orbit is obligated to purchase Panel’s 19.9% interest in SPS for a minimum of $1,300,000, which amount may be increased by a pre-determined formula based on the future operating results of SPS.
For the last two fiscal years, Panel recorded average revenues in excess of $5,000,000 with profitability that would have been materially accretive to Orbit’s earnings. In addition, SPS will enter 2022 with a backlog acquired from Panel in excess of $3,000,000.
Mitchell Binder, President and CEO of Orbit International Corp. commented, “I am pleased to announce that we have successfully completed our previously announced agreement to acquire the business and assets of Panel, and I am proud to welcome Nabil Radi as our partner and President of our new subsidiary, which will become part of our Electronics Group. We spent considerable time seeking a suitable acquisition and were attracted by Panel’s reputation for quality, integrity and always putting the customer first. Mr. Radi has built an exceptional company with an international reputation over the last 22 years, and we are excited to have joined forces to help accelerate the company’s growth.”
Nabil Radi commented, “When Orbit first approached me, I instantly saw the potential synergies that exist between our companies, and as I got to know the Orbit team better, I knew I had made the right decision to become part of the Orbit family. I am looking forward to continuing to build a world class organization as President of Orbit’s newly formed subsidiary with the support of my new partner; and we already have several strategic initiatives planned for 2022, including an expansion of both our production facilities and capabilities as well as obtaining ISO certification.”
Mr. Binder concluded, “By combining our two organizations we expect to be able to offer both Orbit and Panel customers a broader range of one-stop shopping solutions for their platform certified instrument and simulation needs.”
Founded in 1999, Panel Products, Inc. (www.panelproductsinc.com) designed, manufactured, and sold globally military simulation and training bezels, electronic control assemblies, multi-function displays, and ancillary products and related software solutions.
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward- looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
AskMuncher
4 years ago
$ORBT Orbit International Corp. Reports 2020 Year End Results
Press Release | 03/11/2021
2020 Net Income of $641,000 ($0.18 per diluted share) v. $463,000 ($0.13 per diluted share) in Prior Year
Fourth Qtr. 2020 Net Income of $153,000 ($0.04 per diluted share) v. Net Loss of $216,000 ($0.06 loss per diluted share) in Prior Yr. Period
2020 EBITDA, As Adjusted was $921,000 ($0.26 per diluted share) v. $665,000 ($0.19 per diluted share) in Prior Year
Fourth Qtr. 2020 EBITDA, As Adjusted was $236,000 ($0.07 per diluted share) v. loss of $144,000 ($0.04 loss per diluted share) in Prior Year Period
HAUPPAUGE. N.Y., March 11, 2021 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT) today announced results for the fourth quarter and year ended December 31, 2020.
Fourth Quarter 2020 vs. Fourth Quarter 2019
Net sales were $6,420,000, as compared to $6,480,000.
Gross margin was 27.5%, as compared to 25.1%.
Net income was $153,000 ($0.04 per diluted share), as compared to a net loss of $216,000 ($0.06 loss per diluted share).
Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liability and stock-based compensation (EBITDA, as adjusted) was $236,000 ($0.07 per diluted share), as compared to a loss of $144,000 ($0.04 loss per diluted share).
Full Year 2020 vs. Full Year 2019
Net sales were $25,924,000, as compared to $25,983,000.
Gross margin was 27.4%, as compared to 28.2%.
Net income was $641,000 ($0.18 per diluted share) as compared to $463,000 ($0.13 per diluted share). Net income for the prior year includes acquisition costs of $131,000 ($0.04 per diluted share).
Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liability and stock-based compensation (EBITDA, as adjusted) was $921,000 ($0.26 per diluted share), as compared to $665,000 ($0.19 per diluted share).
Backlog at December 31, 2020 was $17.9 million as compared to $19.8 million at September 30, 2020 and $20.8 million at December 31, 2019.
Mitchell Binder, President and CEO of Orbit International Corp. commented, “Our net income for the year ended December 31, 2020 was $641,000 compared to $463,000 for the prior comparable period. Despite the improvement in net income, earnings for the current year were adversely affected by a $396,000 second quarter loss because of changes we made to our manufacturing operation. These changes, which adversely affected our productivity, were made to comply with the PAUSE executive order by the Governor of New York State to safeguard the health and safety of employees during the COVID-19 pandemic. During the following two quarters, our manufacturing operation returned to normal working hours, which improved our operating efficiencies. In addition, our net income was positively affected by a reduction in selling, general and administrative expenses because of the cancellation of trade shows, reduced travel and other selling costs related to the pandemic. Our net income for the prior year period was adversely affected by $131,000 of one-time charges in connection with our acquisition of Q-Vio, Corp. (“Q-Vio”) in August 2019, including the closing of Q-Vio’s facility in San Diego, CA and the integration of its operation into our facility in Hauppauge, NY.”
Mr. Binder added, “Our sales for the year ended December 31, 2020 did not materially change from the prior year period. However, our sales for our Orbit Electronics Group (“OEG”) increased by 24.5% from the comparable period of the prior year. The increased sales is primarily because our 2020 results reflect a full year of operations at our Q-Vio subsidiary as compared to our 2019 results, which reflect Q-Vio’s operations only from the period beginning with its acquisition in August 2019. The increase in sales from our OEG was offset by a reduction is sales from our Orbit Power Group (“OPG”), which was due to a significant reduction in CAATS shipments from the prior year. Exclusive of CAATS units, sales of all other power supplies, particularly our VPX and other COTS power supplies, increased in 2020. Our gross margin for the year ended December 31, 2020 decreased to 27.4% compared to 28.2% in the prior year. This decrease reflects a lower gross profit from our OEG due to increased sales from Q-Vio during 2020. These sales included two significant shipments that were manufactured by our vendor in China and included a tariff, a portion of which was absorbed by our customer. This reduction in gross margin was partially offset by a higher gross margin from our OPG due to fewer shipments of CAATS units during 2020, which have a lower gross margin than our other products. Furthermore, our gross margin was also adversely affected by the reduced operating inefficiencies in our manufacturing facility, particularly in the second quarter of the current year, due to the COVID-19 pandemic.”
Mr. Binder added, “On May 5, 2020, we announced that we closed on a $1,606,000 loan from Peoples United Bank under the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security Act (“the CARES Act”). Under the terms of the CARES Act, PPP loan recipients could apply for and be granted forgiveness for all or a portion of such loans based on the use of such loan proceeds for payment of payroll costs, mortgage interest, rent and utilities. On January 29, 2021, we announced that our application for forgiveness had been approved by the Small Business Administration. However, we are still dealing with the adverse consequences of this pandemic. As previously mentioned, we have made several changes throughout our organization to deal with the health and safety of our employees and productivity suffered as a result. In addition, bookings and revenue for certain areas of our business continue to be negatively impacted. Despite these challenges, we are extremely grateful for the efforts of our employees as well as their resilience under difficult conditions that enabled us to remain open for business and fulfill the needs of our customers. The PPP loan enabled us to preserve our workforce with full employment during this entire period and mitigate the adverse financial impact resulting from the inefficiencies created by the pandemic.”
Mr. Binder continued, “Our backlog at December 31, 2020 was approximately $17,879,000 compared to approximately $20,834,000 at December 31, 2019. The reduction in backlog was due to lower backlog at the OPG, which was partially offset by a higher backlog at the OEG. The reduction in the OPG backlog reflects a reduction in CAATS backlog at December 31, 2020 of approximately $6,017,000 as compared to the prior year end. However, as mentioned in previous releases, CAATS units have a lower gross margin than our other products. Our December 31, 2020 backlog reflects the replacement of lower margin CAATS bookings with new bookings of other products with significantly higher gross margins.”
David Goldman, Chief Financial Officer, noted, “At December 31, 2020, our cash and cash equivalents aggregated approximately $7.5 million and our financial condition continued to be strong as evidenced by our 5.7 to 1 current ratio. Our tangible book value per share at December 31, 2020 was $4.70 which compares to $4.65 at September 30, 2020 and $4.57 at December 31, 2019. (Note: tangible book value per share does not include any additional value for our remaining reserved deferred tax asset or the forgiveness of our PPP loan, which will be recognized in our financial statements for the three month period ending March 31, 2021). To offset future federal and state taxes resulting from profits, we have approximately $7.7 million and $0.7 million in available federal and New York State net operating loss carryforwards, respectively.”
Mr. Binder concluded, “Because our revenue is tied to the delivery schedules specified in our contracts, it often is difficult to judge our performance on a quarterly basis. We endured a difficult period beginning in mid-March that lasted through most of the second quarter. During that timeframe, when it became evident that the pandemic was going to affect our business, our Board of Directors decided to suspend our share repurchase program as well as our future quarterly dividend payments. Despite improved operating results in the third and fourth quarter, it remains difficult to predict the full extent of what the short and long-term impact on our business will be. We remain concerned about any unforeseen events related to this pandemic, its effect on our operating efficiencies as well as bookings and revenue in areas of our business that continue to be adversely affected. Nevertheless, with the receipt of the PPP loan and barring any further adverse effects of COVID-19, we are confident that our financial condition will remain intact and our operating efficiencies will be maintained. Our Board of Directors will continue to closely monitor the situation and periodically reevaluate the possibility of recommencing our repurchase program and cash dividend payments to our shareholders.”
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The Company was classified as an essential business by New York State and therefore was exempt from the state’s mandate that all non-essential businesses close their business locations until further notice. In addition, as a member of the Defense Industrial Base (“DIB”), the Company is mandated by the Secretary of Defense to continue to provide the essential products and services required to meet national security commitments to the Federal Government and the U.S. Military. The Company remains open while following guidance from the Centers for Disease Control (“CDC”) to best protect our employees. At this time, the length and severity of the COVID-19 pandemic is still unknown.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
(See Accompanying Tables)
Orbit International Corp.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
(unaudited) (unaudited)
2020 2019 2020 2019
Net sales $ 6,420 $ 6,480 $ 25,924 $ 25,983
Cost of sales 4,653 4,851 18,833 18,643
Gross profit
1,767 1,629
7,091 7,340
Acquisition costs - - - 131
Selling general and administrative expenses 1,559 1,821 6,276 6,728
Interest expense 4 - 11 -
Investment and other (income) expense 44 13 142 (25 )
Income (loss) before taxes 160 (205 ) 662 506
Income tax provision 7 11 21 43
Net income (loss) $ 153 $ (216 ) $ 641 $ 463
Basic income (loss) per share $ 0.04 $ (0.06 ) $ 0.18 $ 0.13
Diluted income (loss) per share $ 0.04 $ (0.06 ) $ 0.18 $ 0.13
Weighted average number of shares outstanding:
Basic 3,511 3,541 3,514 3,549
Diluted 3,511 3,541 3,514 3,555
Orbit International Corp.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
December 31,
(unaudited) Year Ended
December 31,
(unaudited)
2020 2019 2020 2019
EBITDA (as adjusted) Reconciliation
Net income (loss) $ 153 $ (216 ) $ 641 $ 463
Interest expense 4 - 11 -
Tax expense 7 11 21 43
Depreciation and amortization 21 22 90 87
Fair value adj-contingent liability 51 28 158 28
Stock-based compensation - 11 - 44
EBITDA (as adjusted) (1) $ 236 $ (144 ) $ 921 $ 665
EBITDA (as adjusted) Per Diluted Share Reconciliation
Net income (loss) $ 0.04 $ (0.06 ) $ 0.18 $ 0.13
Interest expense 0.00 0.00 0.00 0.00
Tax expense 0.00 0.00 0.01 0.01
Depreciation and amortization 0.01 0.01 0.03 0.03
Fair value adj-contingent liability 0.02 0.01 0.04 0.01
Stock-based compensation 0.00 0.00 0.00 0.01
EBITDA (as adjusted), per diluted share (1) $ 0.07 $ (0.04 ) $ 0.26 $ 0.19
1) The EBITDA (as adjusted) tables presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses EBITDA (as adjusted) to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA (as adjusted) is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity's profitability because it does not include costs and expenses for interest, depreciation and amortization, income taxes, fair value adjustment on contingent liability and stock-based compensation. EBITDA (as adjusted) as presented herein may not be comparable to similarly named measures reported by other companies.
Year Ended
December 31,
(unaudited)
Reconciliation of EBITDA (as adjusted)
to cash flows provided by (used in) operating activities (1) 2020 2019
EBITDA (as adjusted) $ 921 $ 665
Interest expense (11 ) -
Income tax expense (21 ) (43 )
Fair value adj-contingent liability (158 ) (28 )
Net change in operating assets and liabilities 2,162 (1,035 )
Cash flows provided by (used in) operating activities $ 2,893 $ (441 )
Orbit International Corp.
Consolidated Balance Sheets
December 31, 2020
(unaudited) December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents $ 7,501,000 $ 3,569,000
Accounts receivable, less allowance for doubtful accounts 2,751,000 2,851,000
Inventories 9,396,000 10,542,000
Contract assets 403,000 632,000
Income tax receivable 290,000 306,000
Other current assets 301,000 265,000
Total current assets 20,642,000 18,165,000
Property and equipment, net 351,000 273,000
Right of use assets, operating leases 501,000 923,000
Goodwill 901,000 905,000
Deferred tax asset 545,000 834,000
Other assets 30,000 31,000
Total assets $ 22,970,000 $ 21,131,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 1,779,000 $ 1,436,000
Accrued expenses
934,000
919,000
Lease liabilities, operating leases 478,000 453,000
Contingent liability 256,000 148,000
Dividend payable - 36,000
Customer advances 155,000 225,000
Total current liabilities 3,602,000 3,217,000
Notes payable, PPP loan 1,606,000 -
Contingent liability, net of current portion 318,000 268,000
Lease liabilities, operating leases 53,000 531,000
Total liabilities 5,579,000 4,016,000
Stockholders’ Equity
Common stock 361,000 361,000
Additional paid-in capital 17,667,000 17,667,000
Treasury stock (569,000 ) (380,000 )
Accumulated deficit (68,000 ) (533,000 )
Stockholders’ equity 17,391,000 17,115,000
Total liabilities and stockholders’ equity $ 22,970,000 $ 21,131,000
AskMuncher
4 years ago
$ORBT Orbit International's Power Group Receives New Order Totaling Approximately $1,790,000
Press Release | 08/20/2020
HAUPPAUGE, N.Y., Aug. 20, 2020 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT), an electronics manufacturer and software solution provider, today announced that its Power Group (OPG), through its Behlman Electronics, Inc. subsidiary (“Behlman”), received a new order for power supplies valued at approximately $1,790,000 for its COTS division. Deliveries are scheduled to commence in the second quarter of 2021 and continue through the first quarter of 2022.
Mitchell Binder, President and CEO of Orbit International commented, “This award has Behlman returning to its role as a subcontractor for the manufacture of power supplies on an armament test system program. Over the past several years, Behlman served as the prime contractor on this program and received small business set aside awards totaling in excess of $21,000,000. For those awards, the shipment and delivery of those units required many aspects of production and testing to be offloaded to subcontractors and, as a result, gross margins for the contract were considerably lower than our historical margins. For this award, we will return to the higher margins that we typically realize on our other production work.”
Binder added, “This award is the largest award received by our OPG in the current year. Our customer has informed us that this award will be used for foreign military sales and follow-on orders are expected although the timing of these additional awards is an uncertainty. Aside from this award, our OPG COTS division has had a firm year in bookings. Bookings for power supplies utilizing our VPX technology was less than expected in the first half of 2020. However, new awards, some of which had been delayed, have been received since July 1, 2020. Furthermore, we expect many of the awards we had been expecting for this product line to be received throughout the remainder of the year.”
Orbit International Corp., through its Electronics Group including its new Q-Vio subsidiary, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, uninterruptible power supplies, VME/VPX power supplies as well as various COTS power sources. The Company also has a sales office in Bradenton, FL.
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The Company was classified as an essential business by New York State and therefore was exempt from the state’s mandate that all non-essential businesses close their business locations until further notice. In addition, as a member of the Defense Industrial Base (“DIB”), the Company is mandated by the Secretary of Defense to continue to provide the essential products and services required to meet national security commitments to the Federal Government and the U.S. Military. The Company remains open while following guidance from the Centers for Disease Control (“CDC”) to best protect our employees. At this time, the length and severity of the COVID-19 pandemic is still unknown.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
AskMuncher
4 years ago
$ORBT Orbit International Corp. Reports 2020 Second Quarter Results
Press Release | 08/18/2020
Second Quarter 2020 Net Loss of $396,000 ($0.11 loss per diluted share) v. Net Income of $584,000 ($0.16 per diluted share) in Prior Year Period
Second Quarter 2020 EBITDA, As Adjusted was a loss of $324,000 ($0.09 loss per diluted share) v. earnings of $630,000 ($0.18 per diluted share) in Prior Year Period
Six Months 2020 Net Loss of $376,000 ($0.11 loss per diluted share) v. Net Income of $654,000 ($0.18 per diluted share) in Prior Year Period
Six months 2020 EBITDA, As Adjusted was a loss of $238,000 ($0.07 loss per diluted share) v. earnings of $751,000 ($0.21 per diluted share) in Prior Year Period
HAUPPAUGE, N.Y., Aug. 18, 2020 (GLOBE NEWSWIRE) -- Hauppauge, New York, August 18, 2020 - Orbit International Corp. (OTC PINK:ORBT) today announced results for the second quarter and six months ended June 30, 2020.
Second Quarter 2020 vs. Second Quarter 2019
Net sales were $5,765,000, as compared to $6,911,000.
Gross margin was 18.8%, as compared to 32.4%.
Net loss was $396,000 ($0.11 loss per diluted share), as compared to a net income of $584,000 ($0.16 per diluted share).
Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liability and stock-based compensation (EBITDA, as adjusted) was a loss of $324,000 ($0.09 loss per diluted share), as compared to EBITDA of $630,000 ($0.18 per diluted share).
Six Months 2020 vs. Six Months 2019
Net sales were $11,617,000, as compared to $13,403,000.
Gross margin was 24.6%, as compared to 29.3%.
Net loss was $376,000 ($0.11 loss per diluted share), as compared to net income of $654,000 ($0.18 per diluted share).
Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liability and stock-based compensation (EBITDA, as adjusted) was a loss of $238,000 ($0.07 loss per diluted share), as compared to EBITDA of $751,000 ($0.21 per diluted share).
Backlog at June 30, 2020 was $21.8 million as compared to $21.9 million at March 31, 2020 and $20.8 at December 31, 2019.
Mitchell Binder, President and CEO of Orbit International Corp. commented, “Our net loss for the six months ended June 30, 2020 was $376,000 compared to net income of $654,000 from the prior comparable period. Our loss for the current period was a result of an anticipated reduction in productivity and a corresponding reduction in sales during the current second quarter, as a result of changes we made to our manufacturing operation in response to the PAUSE executive order issued by the Governor of New York State to safeguard the health and safety of our employees during the COVID-19 pandemic. These changes included the implementation of split shifts which had the effect of reducing hours by our manufacturing employees and support personnel. In addition, we closed our facility for several days in April to keep our employees home during the height of the pandemic in New York State. Despite the reduced hours worked, we maintained compensation levels for all our employees during the period. Consequently, our low gross margin is reflective of these inefficiencies that began at the end of the first quarter and continued though substantially all of the second quarter. Beginning in June 2020, we continued with our split shifts but returned to our normal working hours and we expect our efficiencies to improve during the remainder of the year barring any unforeseen circumstances related to the pandemic.”
Mr. Binder continued, “In particular, our reduction in productivity led to a reduction in sales in the current year second quarter from our Orbit Electronics Group (“OEG”) as compared to the first quarter. This reduction in sales was slightly mitigated by increased sales from our Orbit Power Group (“OPG”) during the current quarter due to an increase in the shipment of CAATS units. As previously mentioned, CAATS units have a lower gross margin than our other products. In addition, sales from both the OEG and OPG decreased during the current six months ending June 30, 2020 as compared to the prior comparable period. Finally, also because of the pandemic, our selling, general and administrative costs decreased during the quarter due to decreased selling costs as well as the cancellation of all trade shows. We expect these decreased costs will continue into the third quarter and possibly through the end of the year.”
Mr. Binder added, “On May 5, 2020, we announced that we closed on a $1,606,000 loan (“Loan”) from People’s United Bank under the Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security Act (“the CARES Act”). Under the terms of the CARES Act, PPP loan recipients can apply for and be granted forgiveness for all or a portion of such loans based on the use of such loan proceeds for payment of payroll costs, mortgage interest, rent and utilities. As previously mentioned, we have made several changes throughout our organization to deal with the health and safety of our employees and productivity has suffered as a result. In addition, bookings and revenue have been impacted, particularly at our OPG’s commercial division, whose customer base has been especially hurt by the pandemic, and Q-Vio, which is also experiencing delays for most of its commercial and industrial opportunities. Despite these challenges, the PPP Loan has enabled us to preserve our workforce with full employment and will hopefully mitigate the impact resulting from the inefficiencies created by the pandemic.”
Mr. Binder continued, “Our backlog at June 30, 2020 was approximately $21,824,000 compared to approximately $20,834,000 at December 31, 2019, an increase of 4.8% . The increase in backlog from year-end of $990,000 was obtained despite a decrease in CAATS backlog in excess of $2,500,000.”
David Goldman, Chief Financial Officer, noted, “At June 30, 2020, our cash and cash equivalents aggregated approximately $4.4 million, an increase of $1,611,000 as compared to the cash balance at March 31, 2020. This increase was primarily related to the receipt of our PPP loan during the current quarter. Our tangible book value per share at June 30, 2020 was $4.41 which compares to $4.52 at March 31, 2020 and $4.57 at December 31, 2019 (Note: tangible book value per share does not include any additional value for our remaining reserved deferred tax asset) To offset future federal and state taxes resulting from profits, we have approximately $9.0 million and $0.7 million in available federal and New York State net operating loss carryforwards, respectively.”
Mr. Binder concluded, “Because our revenue is tied to the delivery schedules specified in our contracts, it often is difficult to judge our performance on a quarterly basis. We endured a very difficult period beginning in mid-March that lasted through most of the second quarter. During that timeframe, when it became evident that the pandemic was going to affect our business, our Board of Directors decided to suspend our share repurchase program as well as our future quarterly dividend payments. It remains very difficult to predict the full extent of what the short and long-term impact that the COVID-19 pandemic will have on our business. Like many companies throughout the world, our operating performance suffered. With the receipt of the PPP loan and barring any further adverse effects of COVID-19, we believe that our financial condition will not be adversely affected, our efficiencies will be restored in the second half of 2020 and, based on our delivery schedules, revenue and operating performance should improve.”
Orbit International Corp., through its Electronics Group including its new Q-Vio subsidiary, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, uninterruptible power supplies, VME/VPX power supplies as well as various COTS power sources. The Company also has a sales office in Bradenton, FL.
On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide. The Company was classified as an essential business by New York State and therefore was exempt from the state’s mandate that all non-essential businesses close their business locations until further notice. In addition, as a member of the Defense Industrial Base (“DIB”), the Company is mandated by the Secretary of Defense to continue to provide the essential products and services required to meet national security commitments to the Federal Government and the U.S. Military. The Company remains open while following guidance from the Centers for Disease Control (“CDC”) to best protect our employees. At this time, the length and severity of the COVID-19 pandemic is still unknown.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
(See Accompanying Tables)
Orbit International Corp.
Consolidated Statements of Income
(in thousands, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020 2019 2020 2019
Net sales $ 5,765 $ 6,911 $ 11,617 $ 13,403
Cost of sales 4,681 4,671 8,760 9,474
Gross profit 1,084 2,240 2,857 3,929
Selling general and administrative 1,432 1,658 3,149 3,269
expenses
Interest expense 3 - 3 -
Investment and other expense (income) 30 (13 ) 52 (24 )
(Loss) income before taxes (381 ) 595 (347 ) 684
Income tax provision 15 11 29 30
Net (loss) income $ (396 ) $ 584 $ (376 ) $ 654
Basic (loss) earnings per share $ (0.11 ) $ 0.16 $ (0.11 ) $ 0.18
Diluted (loss) earnings per share $ (0.11 ) $ 0.16 $ (0.11 ) $ 0.18
Weighted average number of shares outstanding:
Basic 3,511 3,551 3,517 3,552
Diluted 3,511 3,556 3,517 3,557
Orbit International Corp.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2020 2019 2020 2019
EBITDA (as adjusted) Reconciliation
Net (loss) income $ (396 ) $ 584 $ (376 ) $ 654
Interest expense 3 - 3 -
Income tax expense 15 11 29 30
Depreciation and amortization 23 24 46 45
Fair value adj-contingent liability 31 - 60 -
Stock-based compensation - 11 - 22
EBITDA (as adjusted) (1) $ (324 ) $ 630 $ (238 ) $ 751
EBITDA (as adjusted) Per Diluted Share Reconciliation
Net (loss) income $ (0.11 ) $ 0.16 $ (0.11 ) $ 0.18
Interest expense 0.00 0.00 0.00 0.00
Income tax expense 0.00 0.00 0.01 0.01
Depreciation and amortization 0.01 0.01 0.01 0.01
Fair value adj-contingent liability 0.01 - 0.02 -
Stock-based compensation - 0.01 - 0.01
EBITDA (as adjusted), per diluted share (1) $ (0.09 ) $ 0.18 $ (0.07 ) $ 0.21
(1) The EBITDA (as adjusted) tables presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses EBITDA (as adjusted) to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA (as adjusted) is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity's profitability because it does not include costs and expenses for interest, depreciation and amortization, income taxes and stock-based compensation. EBITDA (as adjusted) as presented herein may not be comparable to similarly named measures reported by other companies.
Six Months Ended
June 30,
Reconciliation of EBITDA, as adjusted,
to cash flows used in operating activities (1)
2020
2019
EBITDA (as adjusted) $ (238 ) $ 751
Interest Expense (3 ) -
Income tax expense (29 ) (30 )
Fair value adj-contingent liability (60 ) -
Net change in operating assets and liabilities 74 (1,397 )
Cash flows used in operating activities $ (256 ) $ (676 )
Orbit International Corp.
Consolidated Balance Sheets
June 30, 2020
(unaudited) December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents $ 4,379,000 $ 3,569,000
Accounts receivable, less allowance for doubtful accounts 3,114,000 2,851,000
Inventories 10,798,000 10,542,000
Contract assets 621,000 632,000
Income tax receivable - 306,000
Other current assets 366,000 265,000
Total current assets 19,278,000 18,165,000
Property and equipment, net 367,000 273,000
Right of use assets, operating leases 715,000 923,000
Goodwill 905,000 905,000
Deferred tax asset 834,000 834,000
Other assets 31,000 31,000
Total assets $ 22,130,000 $ 21,131,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $ 1,895,000 $ 1,436,000
Accrued expenses 888,000 919,000
Notes payable, PPP loan 714,000 -
Lease liabilities, operating leases
Contingent liability 465,000
174,000 453,000
148,000
Dividend payable - 36,000
Customer advances 131,000 225,000
Total current liabilities 4,267,000 3,217,000
Notes payable, PPP loan, net of current portion 892,000 -
Contingent liability, net of current portion
Lease liabilities, operating leases 301,000
296,000 268,000
531,000
Total liabilities 5,756,000 4,016,000
Stockholders’ Equity
Common stock 361,000 361,000
Additional paid-in capital 17,667,000 17,667,000
Treasury stock (569,000 ) (380,000 )
Accumulated deficit (1,085,000 ) (533,000 )
Stockholders’ equity 16,374,000 17,115,000
Total liabilities and stockholders’ equity $ 22,130,000 $ 21,131,000
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