ATP Sales, Earnings Increase
ATLANTA, Aug. 3 - Advanced Technical Products, Inc. (NASDAQ:ATPX), a producer of composite materials and parts, and chemical defense systems, today reported financial results for the second quarter of 1999.
Revenues for the quarter ended July 2, 1999 were $48.77 million compared to $39.63 million for the comparable period in 1998, an increase of $9.14 million or 23.1%. Net income for the second quarter of 1999 was $1.96 million compared to net income of $1.30 million for the same period in 1998, an increase of $660,000 or 50.8%. Diluted earnings per share for the quarter ended July 2, 1999 increased by $0.12 compared to the second quarter of 1998, from $0.23 in 1998 to $0.35 in 1999.
Revenues for the six months ended July 2, 1999 were $91.11 million compared to $70.45 million for the comparable period in 1998, an increase of $20.66 million or 29.3%. Net income for the six-month period ended July 2, 1999 was $3.07 million compared to $1.41 million for the comparable period in 1998, an increase of $1.66 million or 118%. Diluted earnings per share for the six-month period in 1999 were $0.55 compared to $0.25 for the first six months in 1998, an increase of 120%.
Total backlog as of July 2, 1999 was $591 million, compared to $585 million as of December 31, 1998. Backlog of released orders at the end of the second quarter of 1999 was $182 million compared to $191 million at the end of 1998. Released backlog represents purchase orders, placed under contracts, generally in excess of eighteen months in duration. Unreleased orders consist of long-term contracts of three or more years, where purchase orders have not been placed at the time of booking.
"Our second quarter results reflect strong sales volume in the Company's chemical defense and aerospace composites businesses compared to a year ago," said James S. Carter, President & CEO. "We have continued to see increased shipments of composite-based components on several long-term aerospace/defense programs including the C-17 and F-18 E/F military aircraft."
"The Company's commercial businesses had an outstanding quarter led by increased sales and profits reported for the Natural Gas Vehicle ("NGV") tanks and the Specialty Vehicle Electronics ("SVE") product line," said Garrett L. Dominy, Executive Vice President & CFO. "Our NGV business continues to experience a growing product demand from bus and other vehicle manufacturers which are increasingly choosing natural gas as an alternative fuel and ATP as their preferred supplier of composite fuel tanks. We have also seen some success in the broadening of our SVE product offerings beyond its historical base within the recreational vehicle market."
Management of ATP continues to explore indications of interest from several other parties regarding the sale of the Company. However, there can be no assurance that any of these discussions will result in the sale or merger of the Company.
Advanced Technical Products designs, develops and manufactures advanced composite based materials and products from continuous high strength fibers which optimize structural performance while minimizing the components' weight. The Company believes it is one of very few with the ability to utilize multiple processes, such as, autoclave lamination, filament winding, resin transfer molding and metal bonding. Using these processes, the Company manufactures products for the aerospace and defense markets as well as for commercial applications including oil and gas tubulars and pressure vessels for Natural Gas Vehicles. The Company is also a leader in the development and production of chemical defense systems.
This press release includes forward-looking statements regarding the present intentions and expectations of management of ATP. Certain factors beyond ATP's control could cause ATP's results to differ materially from those in these forward-looking statements. Among these risk factors are the possibility that a sale of Advanced Technical Products may not occur due to the failure to satisfy certain conditions including stockholder approval. Other risk factors including, but not limited to, general market conditions, dependence on the aerospace and defense industries, the level of military expenditures and competition in the markets for ATP's products, are more fully described in ATP's Form 10-K and other documents filed with the Securities and Exchange Commission.