Tel-Instrument Electronics Corp Announces Final First Quarter Results For 2014 Fiscal Year and Reten

Tel-Instrument Electronics Corp Announces Final First Quarter Results For 2014 Fiscal Year and Retention of OEM Capital to Explore Strategic Options For The Company

EAST RUTHERFORD, N.J.--(BUSINESS WIRE)-- Tel Instrument Electronics Corp. (Tel) announced today that it recorded a net loss of $85,772 on sales of $3.2 million as compared to a net loss of $668,800 on sales of $1.2 million in the year ago quarter. This improvement is mostly attributed to the resumption of shipments on the CRAFT program as well as improved sales of other products including a partial production release on the TS-4530A program. The Company is expecting continued revenue and profitability growth for the balance of this fiscal year as a result of higher shipments on the U.S. Army TS-4530A and U.S. Navy ITATS programs.

The Company also announced that it has retained OEM Capital as its exclusive financial advisor to explore strategic alternatives, including debt recapitalization, merger, sale or business combination of the Company with a third party with a goal to enhance shareholder value. There can be no assurance that any transaction will occur, and there is no defined timeline for the process. The Company does not intend to comment further regarding the process until such time, if any, as the Company determines that disclosure is appropriate or required.


We encourage everyone to read our full results of operations contained in our Form 10-Q filed on August 14, 2013 at sec.gov.

About Tel-Instrument Electronics Corp

Tel-Instrument is a leading designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government/military aerospace and defense markets. Tel-Instrument provides instruments to test, measure, calibrate, and repair a wide range of airborne navigation and communication equipment. For further information please visit our website at www.telinstrument.com.

This press release includes statements that are not historical in nature and may be characterized as "forward-looking statements," including those related to future financial and operating results, benefits, and synergies of the combined companies, statements concerning the Company's outlook, pricing trends, and forces within the industry, the completion dates of capital projects, expected sales growth, cost reduction strategies, and their results, long-term goals of the Company and other statements of expectations, beliefs, future plans and strategies, anticipated events or trends, and similar expressions concerning matters that are not historical facts. All predictions as to future results contain a measure of uncertainty and, accordingly, actual results could differ materially.Among the factors which could cause a difference are:changes in the general economy; changes in demand for the Company's products or in the cost and availability of its raw materials; the actions of its competitors; the success of our customers; technological change; changes in employee relations; government regulations; litigation, including its inherent uncertainty; difficulties in plant operations and materials; transportation, environmental matters; and other unforeseen circumstances.A number of these factors are discussed in the Company's previous filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

The Company's stock is traded in the American Stock Exchange under the symbol TIK.

 

TEL-INSTRUMENT ELECTRONICS CORP

CONDENSED CONSOLIDATED BALANCE SHEETS

 
     June 30, 2013   March 31, 2013
(unaudited)
ASSETS
 
Current assets:
Cash and cash equivalents$193,950310,297
Accounts receivable, net970,052557,879
Inventories, net5,477,2436,241,181
Prepaid expenses and other87,042115,852
Deferred financing costs108,321108,321
Deferred income tax asset 1,238,421 1,238,421
Total current assets8,075,0298,571,951
 
Equipment and leasehold improvements, net534,607587,958
Deferred financing costs - long-term129,383156,463
Deferred income tax asset - non-current2,564,0592,546,190
Other assets 56,872 56,872
Total assets 11,359,950 11,919,434
 
LIABILITIES & STOCKHOLDERS' EQUITY
 
Current liabilities:
Current portion long-term debt598,6631,229,643
Capital lease obligations - current portion77,23174,508
Accounts payable2,815,9824,272,431
Progress billing858,050-
Deferred revenues - current portion11,93018,460
Accrued payroll, vacation pay and payroll taxes431,904442,522
Accrued expenses 1,643,586 1,525,538
Total current liabilities6,437,3467,563,102
 
Subordinated notes payable-related parties350,000250,000
Capital lease obligations - long-term55,69576,055
Deferred revenues - long-term2361,045
Warrant liability173,758198,330
Long-term debt, net of debt discount 1,051,976 1,134,549
Total liabilities 8,069,011 9,223,081
 
Commitments
 
Stockholders' equity:

Common stock, par value $.10 per share, 3,211,739 and 3,011,739 issued and outstanding

  as of June 30, 2013 and March 31, 2013, respectively

321,171301,171
Additional paid-in capital7,768,6587,108,300
Accumulated deficit (4,798,890) (4,713,118)
Total stockholders' equity 3,290,939 2,696,353
Total liabilities and stockholders' equity$11,359,950$11,919,434
 
 

TEL-INSTRUMENT ELECTRONICS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 
     Three Months Ended
June 30, 2013   June 30, 2012
 
Net sales$3,199,975$1,177,288
Cost of sales 2,013,817 893,594
 
Gross margin1,186,158283,694
 
Operating expenses:
Selling, general and administrative653,250653,888
Engineering, research and development 480,377 578,604
Total operating expenses 1,133,627 1,232,492
 
Income (loss) from operations52,531(948,798)
 
Other income (expense):
Amortization of debt discount(22,987)(13,392)
Amortization of deferred financing costs(27,080)(27,080)
Change in fair value of common stock warrants24,572249,394
Loss on extinguishment of debt(26,600)-
Interest expense (104,077) (92,468)
Total other income (expense) (156,172) 116,454
 
Loss before income taxes(103,641)(832,344)
 
Income tax benefit (17,869) (163,544)
 
Net loss$(85,772)$(668,800)
 
Net loss per share:
Basic loss per common share$(0.03)$(0.25)
Diluted loss per common share$(0.03)$(0.25)
Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Markets

DJIA21,080.28-2.67-0.01%
NASDAQ6,210.194.940.08%
S&P 5002,415.820.750.03%
NIKKEI 22519,686.84-126.29-0.64%
HANG SENG25,639.278.490.03%
DAX12,602.18-19.54-0.15%
USD (per EUR)1.120.000.01%
USD (per CHF)0.970.000.02%
JPY (per USD)111.320.010.00%
GBP (per USD)1.280.000.01%
More to Explore
Sun, May 28
Set Your Location
City, State, or Zip