National Technical Systems Inc., a leading provider of engineering services, today reported financial results for the fiscal year and fourth quarter ended January 31, 2011, posting record revenues for full-year 2011.
Revenues for fiscal year 2011 increased 17 percent to a record $144.1 million compared to $122.7 million in the prior year. The acquisitions of Unitek on November 30, 2009, and Mechtronic Solutions (MSI) on December 16, 2010, accounted for $10.1 million, or 8.2 percent, of the increase in revenues.
Gross margin in fiscal 2011 was 27.0 percent compared to 27.7 percent in the prior fiscal year.
Net income for fiscal 2011 was a record $5.4 million, or $0.54 per basic share and $0.51 per diluted share, compared to $3.3 million, or $0.35 per basic share and $0.34 per diluted share, for fiscal 2010.
President and CEO William C. McGinnis noted the company’s positive performance and growth for 2011 in which the company increased its market cap by nearly 50 percent from the end of fiscal year 2010. McGinnis also emphasized the difficulties of the fourth quarter of fiscal 2011, in which he says the company’s earnings were negatively impacted by temporary weakness in the aerospace and defense markets caused by uncertainty arising from the federal government’s prolonged budget approval process.
Fourth-quarter revenues increased to $34.4 million, up 5.8 percent from the $32.5 million reported for the fourth quarter of the year prior.
Gross margin as a percentage of revenue in the fourth quarter was 23.6 percent compared to 27.9 percent for the fourth quarter of the year prior.
The company reported a net loss for the fiscal 2011 fourth quarter of $321,000, or $0.03 loss per basic and diluted share, compared to net income of $788,000, or $0.08 per basic and diluted share, for the fourth quarter of the prior fiscal year.
At January 31, 2010, cash, cash equivalents and investments were $9 million, working capital was $22 million, total assets were $110 million, total bank debt was $35.5 million and total equity was $47.4 million.
For more information visit www.nts.com