ELMA, N.Y., May 14, 2021 /PRNewswire/ -- Servotronics,
Inc. (NYSE American – SVT) a designer and manufacturer of
servo-control components and other advanced technology products
announced today the results of its operations for the quarter ended
March 31, 2021.
"The aviation industry continues to be impacted by COVID-19,"
said Kenneth D. Trbovich, CEO and
Chairman of the Board. "The deferral of customer orders at
the ATG resulted in a decline in revenue for the first quarter of
2021. While the economic outlook for the remainder of 2021 remains
uncertain, we continue to adjust our operations while seeking to
retain our skilled employees that we believe will be critical to
our success as business conditions normalize."
In the first quarter of 2021, Servotronics reported net income
of $541,000 (or $0.23 per share Basic and $0.22 Diluted) on consolidated revenues of
$9,060,000 as compared to net income
of $1,898,000 (or $0.80 per share Basic and $0.79 Diluted) on revenues of $15,448 for the comparable period ended
March 31, 2020.
The decrease in revenue for the three month period ended in
March 31, 2021 when compared to the
same three month period ended March 31,
2020 is attributable to a decrease in units shipped at the
ATG of approximately $7,055,000
offset slightly by an increase in price/mix of units shipped of
approximately $464,000.
Additionally, there was an increase in shipments at the CPG of
approximately $149,000 and an
increase of approximately $54,000 in
price/mix of units shipped as compared to the same period ended
March 31, 2020.
Net income at the ATG was lower by approximately $1,470,000 while the net loss at the CPG
decreased by approximately $113,000. The consolidated decrease in net
income is primarily the result of decreases in revenue partially
offset by the employee retention credit and decreases in selling,
general and administrative expenses.
As permitted under the Coronavirus Aid, Relief, and Economic
Security Act, the Company recognized a $1,730,000 employee retention credit (ERC) during
the quarter ended March 31, 2021. The
ERC is a refundable tax credit against certain employment taxes and
is recognized in other income.
The Company is composed of two groups – the ATG and the CPG. The
ATG primarily designs, develops and manufactures servo controls and
other components for various commercial and government applications
(i.e., aircraft, jet engines, missiles, manufacturing equipment,
etc.). The CPG designs and manufactures cutlery, bayonets, pocket
knives, machetes and combat knives, survival, sporting,
agricultural knives and other edged products for both commercial
and government applications.
FORWARD-LOOKING STATEMENTS
Certain paragraphs of this release contain forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934,
such as those pertaining to the Company's capital resources and
profitability, the severity, magnitude and duration of the COVID-19
pandemic, including impacts of the pandemic and of businesses' and
governments' responses to the pandemic on the Company's operations
and personnel, and on commercial activity and demand across the
Company's and its customers' businesses, and on global supply
chains; and the Company's inability to predict the extent to which
the COVID-19 pandemic and related impacts will continue to
adversely impact our business operations. Forward-looking
statements involve numerous risks and uncertainties. The Company
derives a material portion of its revenue from fixed price
contracts with agencies of the U.S. Government or their prime
contractors. The following factors, among others, could cause
actual results and future events to differ materially from those
set forth or contemplated in the forward-looking statements:
uncertainties in today's global economy, including political risks,
adverse changes in legal and regulatory environments, and
difficulty in predicting defense appropriations, the introduction
of new technologies and the impact of competitive products. the
vitality of the commercial aviation industry and its ability to
purchase new aircraft, the willingness and ability of the Company's
customers to fund long-term purchase programs, and market demand
and acceptance both for the Company's products and its customers'
products which incorporate Company-made components, the Company's
ability to accurately align capacity with demand, the availability
of financing and changes in interest rates, the outcome of pending
and potential litigation and the additional risks discussed in the
Company's filings with the Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management's analysis
only as of the date hereof. The Company assumes no obligation to
update forward-looking statements, whether as a result of new
information, future events or otherwise.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE
American
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SOURCE Servotronics, Inc.