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Nortech Systems Reports Fourth Quarter and Full Year 2013 Results

Companies mentioned in this article: Nortech Systems Incorporated

MINNEAPOLIS -- (BUSINESS WIRE) -- Nortech Systems Incorporated (Nasdaq: NSYS), a leading provider of full-service electronics manufacturing services (EMS), today reported net sales of $29.3 million for the fourth quarter ended December 31, 2013, a 17 percent increase compared with net sales of $25.0 million for the fourth quarter of 2012. Net sales for the 2013 fiscal year ended December 31 rose four percent to $111.1 million, compared with $106.9 million reported for fiscal 2012.

For the fourth quarter of 2013, operating income was $482,000, compared with $485,000 for the fourth quarter of 2012. Fourth quarter net income of $241,000, or $0.09 per diluted common share, compares with $276,000, or $0.10 per diluted common share, in the fourth quarter of 2012. For both fiscal 2013 and fiscal 2012, Nortech Systems reported $1.5 million in operating income. Net income for fiscal 2013 was $787,000, or $0.29 per diluted common share. This compares with $629,000 million, or $0.23 per diluted common share, for fiscal 2012.

“We made progress during 2013 – posting annual increases in sales and net income,” said Rich Wasielewski, Nortech Systems’ president and CEO. “Our strong fourth quarter sales were due to a significant number of new programs and product launches with both new and existing customers across all the markets we serve.

“We’re encouraged by these ramp-up activities as we ended 2013, although absorbing the related launch costs impacted our operating profits,” Wasielewski noted. He added that the company is carefully monitoring its pipeline and order backlog. Field intelligence is reporting customers are adjusting their inventory levels to their current demand and business as they start 2014. Nortech’s operations are taking the necessary steps to align production schedules and costs with changing customer demand.

“Our 2013 results continued to build on our long-term strategies and add to our company’s value,” Wasielewski concluded. “We are committed to being our customers’ preferred supplier and helping them succeed.”

Conference Call
Nortech Systems announces a conference call to be held at 10:00 a.m. (CT) on Thursday, March 6, 2014, 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 20, 2014, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the conference ID 13576579 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.

 

Condensed Statements of Operations

  Three months ended Dec. 31,   Twelve months ended Dec. 31,
Unaudited      
2013   2012   2013   2012  

Net Sales

$29,293,064   $25,022,165 $111,058,439   $106,937,387
Income from Operations 482,126

484,910

1,455,035

1,460,598

Income before Income Taxes

377,150

381,542

1,087,376 927,438
 

Income Tax Expense

136,000

106,000

300,000

298,000

 

Net Income

241,150

275,542

787,376

629,438

 

Net Income Per Basic Common Share

$0.09

$0.10

$0.29

$0.23

 

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

$0.09

$0.10

$0.29

$0.23

 

Weighted Average Number of Common Shares – Diluted

2,747,568

2,742,992

2,744,136

2,742,992

 
 

Condensed Balance Sheets

  Dec. 31, 2013    

Dec. 31, 2012

         
Current Assets $ 34,915,842 $ 32,691,371
Property and Other Long-Term Assets   11,159,579   11,823,528
Total Assets $ 46,075,421 $ 44,514,899
 
Current Liabilities $ 19,366,538 $ 20,131,441
Long-Term Liabilities 4,773,435 3,248,227
Shareholders’ Equity   21,935,448   21,135,231

Total Liabilities and Shareholders’ Equity

$

46,075,421

$

44,514,899

 


Copyright © Business Wire 2014
Contact:

For Nortech Systems Incorporated:
Brookside Communications Group
Warren Djerf, 952-920-3908
warren@brookcomm.net