IEC Electronics Corp. (NYSE American: IEC) today announced results for the fiscal 2018 fourth quarter and year ended September 30, 2018.

IEC reported revenues of $34.2 million for the fourth quarter of fiscal 2018, an increase of 24% as compared to revenues of $27.6 million for the fiscal 2017 fourth quarter ended September 30, 2017 and a sequential increase of 15% as compared to the third quarter of 2018.  Gross profit margin for the fourth quarter of fiscal 2018 improved to 13.1% as compared to 12.6% in the same quarter last year.  Selling and administrative expenses increased to $2.9 million but decreased slightly as a percentage of sales to 8.5%, as compared to $2.5 million or 9.0% of sales in the fourth quarter of fiscal 2017.  The Company reported net income of $9.1 million for the fourth quarter of fiscal 2018, or $0.89 per share, compared to net income of $0.8 million, or $0.07 per share, for the fourth quarter of fiscal 2017.  Net income for the fiscal 2018 fourth quarter included a tax benefit of $7.8 million, related to the Company adjusting its deferred tax asset allowance, reflecting confidence that deferred tax assets will be utilized in future periods.  On a non-GAAP basis, excluding the one-time tax benefit, fourth quarter net income was $1.3 million or $0.13 per share.

Revenues for the year ended September 30, 2018 increased 21% to $116.9 million as compared to $96.5 million in fiscal 2017.  Gross profit margin for fiscal 2018 improved slightly to 12.1% as compared to 11.7% in fiscal 2017.  Selling and administrative expenses increased to $11.4 million but decreased as a percentage of sales to 9.8%, as compared to $10.2 million or 10.6% of sales for full year fiscal 2017.  Net income for fiscal 2018 was $10.4 million, or $1.01 per share, compared to $0.08 million, or $0.01 per share, in the prior year period.  Fiscal 2018 net income included a tax benefit of $8.8 million, related to the previously mentioned deferred tax asset allowance adjustment, as well as a first quarter 2018 release of the valuation allowance on our alternative minimum tax credits as a result of the December 2017 U.S. Tax Cuts and Jobs Act.  On a non-GAAP basis, excluding the one-time tax benefit, fiscal 2018 net income was $1.6 million or $0.15 per share.

Jeffrey T. Schlarbaum, President and CEO of IEC Electronics commented, “With the close of fiscal 2018, we believe our Company has fully exited the turnaround phase and is well positioned to drive sustained growth.  Our strong fourth quarter performance was characterized by increased revenues levels, which have not been seen in 5 years, as well as strong backlog growth.  Revenue and volume growth are being driven in large part by our ability to win new projects from existing customers as they recognize IEC’s value as a reliable and consistent manufacturing partner and discover the breadth of our diverse, vertically integrated capabilities.         “Gross margin in the quarter improved by 50 bps, despite deliberate additions to overhead and direct labor to support increasing revenue levels expected in fiscal 2019.  While global component shortages persist, we continue to strategically manage our inventory and workforce to maximize our ability to convert orders in this challenging environment.”   

Mr. Schlarbaum concluded, “We are energized by the opportunities we’re seeing in the marketplace from both new and existing customers.  As we move through fiscal 2019, we believe we’re well positioned to drive continued growth and to increase our leadership position as a reliable and consistent manufacturing partner for life-saving and mission critical products.  Our fiscal fourth quarter backlog increased to $133 million, representing 85% year over year growth, and a level our company has not experienced in more than 20 years. During the fiscal fourth quarter, we also experienced a solid book to bill ratio of 1.3:1.  With our visibility today, we expect strong double digit year over year growth in fiscal 2019 and we are eager to start the new year not expecting to experience the seasonal revenue decline from Q4 2018 to Q1 2019 that we have typically experienced in past years.”

Conference Call:

IEC will host a conference call, today, Wednesday, November 28, 2018 at 10:00 a.m. Eastern Time, to discuss its financial results for the fiscal 2018 fourth quarter and year ended September 30, 2018.

The conference call may be accessed in the U.S. and Canada by dialing toll-free (877) 407-9210. International callers may access the call by dialing (201) 689-8049.

A replay of the teleconference will be available for 30 days after the call and may be accessed domestically by dialing (877) 481-4010 and international callers may dial (919) 882-2331.  Callers must enter conference ID: 38816.

To access the live webcast, log onto the IEC website at http://www.iec-electronics.com.  The webcast can also be accessed at http://www.investorcalendar.com/event/38816.  An online replay will be available shortly after the call.

About IEC Electronics

IEC Electronics is a provider of electronic manufacturing services ("EMS") to advanced technology companies that produce life-saving and mission critical products for the medical, industrial, aerospace and defense sectors. The Company specializes in delivering technical solutions for the custom manufacture of complex full system assemblies by providing on-site analytical testing laboratories, custom design and test engineering services combined with a broad array of manufacturing services encompassing electronics, interconnect solutions, and precision metalworking.  As a full service EMS provider, IEC holds all appropriate certifications for the market sectors it supports including ISO 9001:2008, AS9100D, ISO 13485, and Nadcap.  IEC Electronics is headquartered in Newark, NY and also has operations in Rochester, NY and Albuquerque, NM.  Additional information about IEC can be found on its web site at www.iec-electronics.com.

Note Regarding Forward-Looking Statements

References in this report to “IEC,” “IEC Electronics,” the “Company,” “we,” “our,” or “us” mean IEC Electronics Corp. and its subsidiaries except where the context otherwise requires. This release contains forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “optimistic,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words or phrases. These forward-looking statements include, but are not limited to, statements regarding future sales and operating results, future prospects, the capabilities and capacities of business operations, any financial or other guidance and all statements that are not based on historical fact, but rather reflect our current expectations concerning future results and events. The ultimate correctness of these forward-looking statements is dependent upon a number of known and unknown risks and events and is subject to various uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.

The following important factors, among others, could affect future results and events, causing those results and events to differ materially from those views expressed or implied in our forward-looking statements: business conditions and growth or contraction in our customers’ industries, the electronic manufacturing services industry and the general economy; variability of our operating results; our ability to control our material, labor and other costs; our dependence on a limited number of major customers; the potential consolidation of our customer base; availability of component supplies; dependence on certain industries; variability and timing of customer requirements; technological, engineering and other start-up issues related to new programs and products; uncertainties as to availability and timing of governmental funding for our customers; the impact of government regulations, including FDA regulations; risks related to the accuracy of the estimates and assumptions we used to revalue our net deferred tax assets in accordance with the Tax Cuts and Jobs Act of 2017; the types and mix of sales to our customers; litigation and governmental investigations;  intellectual property litigation; our ability to maintain effective internal controls over financial reporting; unforeseen product failures and the potential product liability claims that may be associated with such failures; the availability of capital and other economic, business and competitive factors affecting our customers, our industry and business generally; failure or breach of our information technology systems; and natural disasters. Any one or more of such risks and uncertainties could have a material adverse effect on us or the value of our common stock. For a further list and description of various risks, relevant factors and uncertainties that could cause future results or events to differ materially from those expressed or implied in our forward-looking statements, see our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission.

All forward-looking statements included in this release are made only as of the date indicated or as of the date of this release. We do not undertake any obligation to, and may not, publicly update or correct any forward-looking statements to reflect events or circumstances that subsequently occur or which we hereafter become aware of, except as required by law. New risks and uncertainties arise from time to time and we cannot predict these events or how they may affect us and cause actual results to differ materially from those expressed or implied by our forward-looking statements. Therefore, you should not rely on our forward-looking statements as predictions of future events.

Contact: Audra Gavelis
  Director of Marketing & Investor Relations
  IEC Electronics Corp.
  (315) 332-4559
  agavelis@iec-electronics.com

IEC ELECTRONICS CORP.

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2018 and 2017

(in thousands, except share and per share data)

    September 30,2018   September 30,2017
ASSETS        
Current assets:        
Cash   $     $  
Accounts receivable, net of allowance   25,168     17,887  
Inventories   34,126     15,605  
Other current assets   1,747     1,018  
Total current assets   61,041     34,510  
         
Property, plant and equipment, net   20,110     17,777  
Deferred income taxes   8,855      
Other long-term assets   442     160  
         
Total assets   $ 90,448     $ 52,447  
         
LIABILITIES AND STOCKHOLDERS’ EQUITY        
Current liabilities:        
Current portion of long-term debt   $ 1,449     $ 987  
Current portion of capital lease obligation   306     215  
Accounts payable   28,689     13,046  
Accrued payroll and related expenses   1,796     1,013  
Other accrued expenses   458     444  
Customer deposits   7,595     1,611  
Total current liabilities   40,293     17,316  
         
Long-term debt   16,002     14,023  
Long-term capital lease obligation   7,027     5,362  
Other long-term liabilities   1,750     1,317  
Total liabilities   65,072     38,018  
         
STOCKHOLDERS’ EQUITY        
Preferred stock, $0.01 par value:        
500,000 shares authorized; none issued or outstanding        
Common stock, $0.01 par value:        
Authorized 50,000,000 shares        
Issued: 11,304,393 and 11,252,566 shares, respectively        
Outstanding: 10,248,905 and 10,197,078 shares, respectively   102     102  
Additional paid-in capital   47,326     46,789  
Accumulated deficit   (20,463 )   (30,873 )
Treasury stock, at cost: 1,055,488 shares   (1,589 )   (1,589 )
Total stockholders’ equity   25,376     14,429  
         
Total liabilities and stockholders’ equity   $ 90,448     $ 52,447  

IEC ELECTRONICS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

YEARS ENDED SEPTEMBER 30, 2018 and 2017

(in thousands, except share and per share data)

    Three Months Ended   Years Ended
    September 30,2018   September 30,2017   September 30,2018   September 30,2017
                 
    (unaudited)        
Net sales   $ 34,216     $ 27,623     $ 116,922     $ 96,455  
Cost of sales   29,720     24,148     102,765     85,198  
Gross profit   4,496     3,475     14,157     11,257  
                 
Selling and administrative expenses   2,895     2,491     11,438     10,197  
Operating profit   1,601     984     2,719     1,060  
                 
Interest expense   312     210     1,146     917  
Other expense/(income)                
Income before income taxes   1,289     774     1,573     143  
                 
(Benefit)/provision for income taxes   (7,832 )   19     (8,837 )   62  
                 
Net income   $ 9,121     $ 755     $ 10,410     $ 81  
                 
Net income per common share:                
Basic   $ 0.89     $ 0.07     $ 1.01     $ 0.01  
Diluted   $ 0.87     $ 0.07     $ 1.01     $ 0.01  
                 
Weighted average number of shares outstanding:        
Basic   10,248,271     10,197,424     10,228,596     10,181,868  
Diluted   10,501,569     10,271,493     10,320,203     10,181,868  
                         
IEC Electronics (AMEX:IEC)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more IEC Electronics Charts.
IEC Electronics (AMEX:IEC)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more IEC Electronics Charts.