Advanced Technical Products Income and Earnings Up
ROSWELL, Ga., May 10 - Advanced Technical Products, Inc. (NASDAQ:ATPX), a producer of advanced composite structures and chemical and biological defense products, today reported net income of $1.57 million for the first quarter of 2001 compared to $107,000 for the first quarter of 2000. Diluted earnings per share increased to $0.26 from $0.02 for the same period a year ago. Diluted earnings per share from continuing operations decreased to $0.26 in comparison to $0.31 per share on a diluted basis from the previous year. Revenues for the first quarter were $42.34 million compared to $41.36 million in 2000, an increase of 2.4%.
"Operating income for the quarter was up 8.3%, an increase from $3.56 million last year to $3.85 million this year, while revenues increased by 2.4%," said Garrett L. Dominy, President & CEO. "Operating margin growth has continued to outpace top-line growth. However, net income from continuing operations for the 2001 quarter compared to 2000 was impacted by a higher effective borrowing rate and certain other non-operating expenses."
During the first quarter, ATP's Marion Composites was chosen to design, develop, test and produce new technology radomes for Lockheed Martin's Advanced F-16 Aircraft. In addition to the F-16, the Company produces high performance composites for numerous military and commercial aircraft including the F-14, F-18, C-17, F-22, Joint Strike Fighter, Boeing 717, and Airbus A330 and A340.
Also during the first quarter, ATP's Marion Composites division was awarded a contract by Stewart & Stevenson Tactical Vehicle Systems, LP (TVSLP) of Sealy, Texas to produce Light Medium Tactical Vehicle (LMTV) shop vans for the 2.5 ton Family of Medium Tactical Vehicles (FMTV). Marion Composites also received an order from Motorola Integrated Systems Division in Scottsdale, Arizona for Common Ground Station (CGS) shelters that are mounted on HMMWV's.
As previously reported, the Company has entered into a letter of intent to sell the assets of the Alcore and Alcore Brigantine subsidiaries. It is anticipated that the transaction will be completed by the end of the second quarter.
Advanced Technical Products, Inc.'s operating divisions include Intellitec, Lincoln Composites, Lunn Industries and Marion Composites. The Company's products are used in a variety of applications in the aerospace and defense industries, as well as commercial markets. ATP designs, develops, and manufactures high-performance radomes, aircraft components, rocket motor cases, pressure vessels, fuel tanks, shelter systems and other advanced composite products utilizing various production capabilities. The Company is also a leader in the design, development and manufacture of biological and chemical detection and protection systems. ATP also designs and manufactures electronic products for the specialty vehicle market. Further information on Advanced Technical Products, Inc. is available at www.atpx.com .
"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This press release includes forward-looking statements regarding the Company's intent to sell the assets of its Alcore and Alcore Brigantine subsidiaries and certain assumptions that the company believes it will deliver on long term contracts. Certain factors beyond ATP's control could cause results to differ materially from those in these forward-looking statements. Risk factors include general market conditions, dependence on the aerospace and defense industries, the level of military expenditures and competition in the markets for ATP's products, and are more fully described in filings with the Securities and Exchange Commission.
(tables to follow)
ADVANCED TECHNICAL PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
Quarter Ended
March 30, March 31,
2001 2000
Revenues $42,342 $41,359
Cost of revenues 32,895 32,313
Gross profit 9,447 9,046
General and administrative expenses 5,593 5,486
Operating income 3,854 3,560
Interest expense 979 761
Other expense 321 ---
Income before income tax
expense 2,554 2,799
Income tax expense 983 1,078
Income from continuing
operations 1,571 1,721
Discontinued operations:
Loss from operations of
segment to be disposed of,
net of income tax benefit --- (1,614)
Net income $1,571 $107
Net income per share:
Basic: Income from
continuing operations $0.28 $0.32
Loss from discontinued
operations --- (0.30)
Net income $0.28 $0.02
Diluted: Income from
continuing operations $0.26 $0.31
Loss from discontinued
operations --- (0.29)
Net income $0.26 $0.02
Weighted average number of common and
common equivalent shares outstanding:
Basic 5,443 5,311
Diluted 5,859 5,500
ADVANCED TECHNICAL PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(Unaudited, in thousands)
March 31, December 31,
2001 2000
Cash and cash equivalents $1,143 $1,666
Other current assets 76,211 74,340
Total current assets 77,354 76,006
Property, plant and equipment, net 8,839 9,001
Net assets of discontinued operations 7,947 6,971
Other assets, net 6,269 6,328
Total assets $100,409 $98,306
Current liabilities $52,562 $51,326
Long-term liabilities 24,831 25,653
Total liabilities 77,393 76,979
Preferred stock - mandatorily
redeemable 1,000 1,000
Stockholders' equity 22,016 20,327
Total liabilities and equity $100,409 $98,306