ELMA,
N.Y., March 21,
2016 /PRNewswire/ -- Servotronics, Inc.
(NYSE MKT: SVT) a designer and manufacturer of servo-control
components and other advanced technology products announced today
the results of its operations for the year ended December 31, 2015. Revenue grew over 16%
for the twelve month period ended December
31, 2015 from $31,646,000 to
$36,729,000 with a resulting net
income of $4,597,000 (or $2.11 per share Basic, $2.03 Diluted). The growth in revenue is the
result of increases in commercial shipments at the Company's two
operating segments.
"The growth we achieved in 2015 is the result of the hard
work and dedication of our team at both operating groups," observed
Kenneth D. Trbovich, President. "The
investments we made in our employees, equipment, and our technology
infrastructure allowed us to take advantage of increased demand for
our products and services. We continue to invest to leverage our
experience and capabilities and believe we are well-positioned to
meet the needs of our customers."
Net Loss for the same twelve month period of 2014 was
$3,126,000 (or ($1.46) per share Basic, ($1.38) Diluted). Excluding non-recurring items,
the Company generated adjusted net income for the twelve months
ended December 31, 2015 of
$1,660,000 compared to $483,000 for the same period of 2014. The results
for 2014 include an arbitration-related charge in the third quarter
of 2014 while the results for 2015 include the related insurance
settlement in the first quarter of 2015.
Reconciliation of Non-GAAP Financial
Measures
This press release contains financial information
determined by methods other than in accordance with U.S. Generally
Accepted Accounting Principles, ("GAAP"). The Company's management
uses the non-GAAP measure "adjusted net income" in their analysis
of the Company's performance. This measure, as used by
Servotronics, adjusts net income determined in accordance with GAAP
to reflect changes in financial results associated with the
highlighted charges and income items. Management believes the
presentation of this financial measure reflecting these non-GAAP
adjustments provides important supplemental information in
evaluating the operating results of the Company as distinct from
results that include items that are not indicative of ongoing
operating results. This non-GAAP disclosure has limitations as an
analytical tool, should not be viewed as a substitute for net
earnings determined in accordance with GAAP, and should not be
considered in isolation or as a substitute for analysis of the
Company's results as reported under GAAP, nor is it necessarily
comparable to non-GAAP performance measures that may be presented
by other companies. This supplemental presentation should not be
construed as an inference that the Company's future results will be
unaffected by similar adjustments to net income determined in
accordance with GAAP.
Included below is a reconciliation of non-GAAP adjusted
financial measures to reported amounts ($000's omitted).
|
|
|
Twelve Months Ended
|
|
December 31,
|
Net Income (loss)
reconciliation
|
2015
|
|
2014
|
As reported net income (loss)
|
$ 4,597
|
|
$ (3,126)
|
Non-GAAP adjustments, net
of tax
|
|
|
|
Non-recurring arbitration award
expense
|
33
|
|
3,609
|
Non-recurring insurance settlement related to
arbitration
|
(2,970)
|
|
-
|
Non-GAAP adjusted net income
|
$ 1,660
|
|
$ 483
|
Per share amounts:
|
|
|
|
Non-GAAP adjusted net income per share
(basic)
|
$ 0.76
|
|
$ 0.23
|
Basic weighted average common
shares
|
2,182
|
|
2,143
|
|
|
|
|
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 planned growth efforts
and expectation of new business and success in its entry into new
product programs. Forward-looking statements involve numerous risks
and uncertainties. The Company derives a material portion of its
revenue from contracts with agencies of the U.S. Government or
their prime contractors. The Company's business is performed under
fixed price contracts and 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 and global
competition, difficulty in predicting defense appropriations, the
vitality and ability of the commercial aviation industry to
purchase new aircraft, the willingness and ability of the Company's
customers to fund long-term purchase programs, market demand and
acceptance both for the Company's products and its customers'
products which incorporate Company-made components and the ability
of the Company to successfully execute its strategic plans. The
success of the Company also depends upon the trends that affect the
national and international economy. 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.
SERVOTRONICS, INC. (SVT) IS LISTED
ON NYSE MKT
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/servotronics-inc-announces-operating-results-and-achievements-300239104.html
SOURCE Servotronics, Inc.