Attached files

file filename
8-K - 8-K - NORTECH SYSTEMS INCa15-6612_18k.htm

Exhibit 99

 

GRAPHIC

 

 

Contact:

Warren Djerf

 

 

Brookside Communications Group

 

 

952-920-3908 or warren@brookcomm.net

 

March 11, 2015

 

Nortech Systems Reports Fourth Quarter and Full Year 2014 Results

 

MINNEAPOLIS — Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), today reported net sales of $30.4 million for the fourth quarter ended December 31, 2014, a four percent increase over net sales of $29.3 million for the fourth quarter of 2013. Net sales for the 2014 fiscal year ended December 31 were $112.0 million, compared with $111.1 million reported for fiscal 2013.

 

For the fourth quarter of 2014, operating income was $318,000, compared with $482,000 for the fourth quarter of 2013. Fourth quarter net income of $214,000, or $0.08 per diluted common share, compares with $241,000, or $0.09 per diluted common share, in the fourth quarter of 2013. For fiscal 2014, Nortech Systems reported $1.3 million in operating income, compared with $1.5 million in operating income for fiscal 2013. Net income for fiscal 2014 was $880,000, or $0.32 per diluted common share. This compares with $787,000, or $0.29 per diluted common share, for fiscal 2013.

 

“We’re pleased with our increased net income for the year and increased sales in the fourth quarter,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Sales to medical customers rose for the year, offsetting lower sales to defense customers. Our industrial sales were flat in 2014 but have recently shown signs of recovery, along with the economy.  For industrial customers, we ended the year with a stronger position than when we started 2014, including backlog and pipeline.

 

“We posted a slight gross margin improvement for 2014 and net income was positively impacted by a favorable tax audit settlement and the fourth quarter reinstatement of the federal R&D tax credit,” Wasielewski added.

 

“We’re heading into fiscal 2015, our 25th year in business, with our industrial customers and certain sectors within the U.S. economy gaining momentum,” stated Wasielewski. “We registered strong growth with medical customers in 2014 and we’re seeing signs of stability with

 

-more-

 



 

our defense business. We are planning to celebrate our 25th anniversary and salute all our customers, employees, suppliers and shareholders for their support over the years,” he concluded.

 

Conference Call

 

Nortech Systems announces a conference call to be held at 10:00 a.m. (CT) on Thursday, March 12, 2015, to discuss the company’s fourth quarter and fiscal year results. Anyone interested in participating in the conference can access the call by dialing 877-407-8031 from within the United States, or 201-689-8031 if calling internationally. An audio webcast and replay of this conference call can be accessed at the investor relations portion of Nortech Systems’ website at www.nortechsys.com or at www.investorcalendar.com. A podcast (MP3 download) will also be available. The telephone replay will be available through March 26, 2015, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the conference ID 13601639 is required.

 

About Nortech Systems Incorporated

 

Nortech Systems Incorporated (www.nortechsys.com), based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies, and higher-level complete box build assemblies for a wide range of industries.  Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities and operating partners in the U.S., Asia and Latin America. Nortech Systems Incorporated is traded on the NASDAQ Stock Market under the symbol NSYS.

 

Forward-Looking Statements

 

This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995.  While this release is based on management’s best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties.  Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply of and demand for the company’s products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company’s financial condition and results of operations; as well as risk factors listed from time to time in the company’s filings with the SEC.

 

2



 

Condensed Consolidated Statements of Operations

 

 

 

Three months ended Dec. 31,

 

 

 

 

 

Unaudited

 

Twelve months ended Dec. 31,

 

 

 

2014

 

2013

 

2014

 

2013

 

Net Sales

 

$

30,446,176

 

$

29,293,064

 

$

112,041,650

 

$

111,058,439

 

Income from Operations

 

318,391

 

482,126

 

1,328,607

 

1,455,035

 

Income before Income Taxes

 

222,462

 

377,150

 

961,017

 

1,087,376

 

Income Tax Expense

 

8,000

 

136,000

 

81,000

 

300,000

 

Net Income

 

214,462

 

241,150

 

880,017

 

787,376

 

Net Income Per Basic Common Share

 

$

0.08

 

$

0.09

 

$

0.32

 

$

0.29

 

Weighted Average Number of Common Shares — Basic

 

2,742,992

 

2,742,992

 

2,742,992

 

2,742,992

 

Net Income Per Diluted Common Share

 

$

0.08

 

$

0.09

 

$

0.32

 

$

0.29

 

Weighted Average Number of Common Shares — Diluted

 

2,752,644

 

2,747,568

 

2,748,825

 

2,744,136

 

 

Condensed Consolidated Balance Sheets

 

 

 

Dec. 31, 2014

 

Dec. 31, 2013

 

Current Assets

 

$

37,680,468

 

$

34,915,842

 

Property and Other Long-Term Assets

 

11,005,844

 

11,159,579

 

Total Assets

 

$

48,686,312

 

$

46,075,421

 

Current Liabilities

 

$

13,369,831

 

$

19,366,538

 

Long-Term Liabilities

 

12,488,089

 

4,773,435

 

Shareholders’ Equity

 

22,828,392

 

21,935,448

 

Total Liabilities and Shareholders’ Equity

 

$

48,686,312

 

$

46,075,421

 

 

3