ETC Reports First Quarter Fiscal 2022 Results | Your money



SOUTHAMPTON, Pa., September 03, 2021 (GLOBE NEWSWIRE) – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today announced its financial results for the thirteen-week period ended May 28 2021 (the “first quarter of 2022”).

Robert L. Laurent, Jr., CEO and President of ETC, said, “With the opening up of parts of the global economy, we are starting to see the start of a resurgence in ETC’s business, as in testify to the best results of our first quarter 2022, during which we received new orders of more than 10 million dollars. Many projects in our international pipeline are also gaining momentum. “

Results of operations for the first quarter of fiscal 2022

Net income (loss) attributable to ETC

Net income attributable to ETC was $ 2.2 million, or $ 0.13 diluted earnings per share, in the first quarter of 2022, compared to a net loss attributable to ETC of $ 1.6 million in the first quarter of 2021, a diluted loss of $ 0.11 per share. The variance of $ 3.8 million is due to the combined effect of a $ 2.4 million increase in other income, net, a $ 1.2 million increase in gross margin and a decrease of $ 0.3 million in operating expenses.

Net sales

First quarter 2022 net sales were $ 6.1 million, an increase of $ 1.2 million, or 23.7%, from first quarter 2021 net sales of $ 4.9 million. of dollars. The increase in net sales is mainly due to increased sales of sterilizers to domestic customers. Just under half of net sterilizer sales in the first quarter of 2022 came from orders booked in the same quarter. Reservations in the first quarter of 2022 were $ 10.2 million, including $ 2.8 million in sterilizers and $ 6.0 million in aero-medical training solutions to a long-standing international customer. Lower net sales were generated in the first quarter of 2021 due to the combination of a lower order book entering fiscal 2021 combined with the effects of the global COVID-19 pandemic, which not only has affected the Company’s ability to generate bookings, particularly internationally, but also forced the closure of the Company’s head office and main production plant for approximately one-third of the first quarter of 2021, in accordance with the mandates of the State of Pennsylvania.

Gross profit

Gross profit for the first quarter of 2022 was $ 1.7 million, compared to $ 0.5 million in the first quarter of 2021, an increase of $ 1.2 million, or 221.3%. The increase in gross margin is due to the combined effect of an increase in net sales and an increase in gross profit margin. The gross profit margin as a percentage of net sales increased to 27.5% for the first quarter of 2022, compared to 10.6% for the first quarter of 2021, mainly due to the recognition of net sales of approximately 1, $ 7 million, or 28.0%, of two net revenues in the first quarter of 2022. sales and the aforementioned order of $ 6.0 million from International Aeromedical Training Solutions, which has traditionally generated our highest margins. The lower gross profit margin in the first quarter of 2021 is the result of lower net sales mentioned above, unable to support fixed overheads.

Operating Expenses

Operating expenses, including sales and marketing, general and administrative expenses, and research and development, for the first quarter of 2022 were $ 1.7 million, a decrease of $ 0.3 million. dollars, or 13.6%, compared to $ 2.0 million for the first quarter of 2021. The decrease in operating expenses is mainly due to lower general and administrative expenses, which included a reduction in headcount. and legal fees now that the litigation over a firm fixed price contract dated June 14, 2010 for the construction of a research altitude bedroom suite at Wright-Patterson Air Force Base has been resolved.

Other income, net

Other net income for the first quarter of 2022 was $ 2.4 million compared to $ 17,000 for the first quarter of 2021, a variance of $ 2.4 million due almost entirely to the recognition of the loan cancellation. Paycheck Protection Program (the “PPP”).

Cash flow from operating, investing and financing activities

During the first quarter of 2022, mainly due to the increase in accounts receivable, the increase in prepaid expenses and other current assets and the decrease in other accrued liabilities, partially offset by the decrease in assets on contract, the Company used $ 0.1 million of cash flow from operating activities compared to $ 2.6 million during the first quarter of 2021. Under Codification of Accounting Standards (“ASC” 606), accounts such as contract assets and accounts receivable represent the timing differences between spending on production activities and billing and collecting customer payments.

Cash flows used for investing activities relate primarily to funds used for capital expenditures related to the development of equipment and software. The Company’s investing activities used $ 41,000 during the first quarter of 2022 compared to $ 14,000 during the first quarter of 2021.

The Company’s financing activities used $ 1.0 million of cash during the first quarter of 2022 for repayments under the Company’s credit facility, compared to $ 3.4 million of cash during the first quarter of 2022. first quarter of 2021 with the proceeds of the PPP loan and borrowings under the Company’s credit facility.

About ETC

ETC was incorporated in 1969 in Pennsylvania. For more than five decades, we have provided our customers with products, services and support. Continuous technological innovation, improvement and improvement, and product quality are core values ​​essential to our success. We are a leading supplier and innovator in the following areas: (i) software-based products and services used to create and monitor the physiological effects of flight, including high performance tactical jet flight simulation, prevention and control. recovery from fixed and rotary wing disturbances and spatial disorientation, and suborbital and orbital manned commercial flights, collectively, Aircrew Training Systems (“ATS”); (ii) altitude chambers (hypobars); (iii) hyperbaric chambers for several people (multi-sided chambers); (iv) Advanced Disaster Management Simulators (“ADMS”); (v) steam and gas sterilizers (ethylene oxide); and (vi) environmental testing and simulation systems (“ETSS”).

We operate in two main lines of business, Aerospace Solutions (“Aerospace”) and Commercial / Industrial Systems (“CIS”). Aerospace encompasses the design, manufacture and sale of: (i) ATS products; (ii) altitude chambers (hypobars); (iii) hyperbaric chambers for several people (multi-sided chambers); and (iv) ADMS, as well as Integrated Logistics Support (“ILS”) for customers who purchase these or similar products manufactured by other parties. These products and services provide customers with a comprehensive solution offering for better readiness and lower operating costs. Sales of our aerospace products are primarily made to US and foreign government agencies and civil aviation organizations. CIS encompasses the design, manufacture and sale of: (i) steam and gas sterilizers (ethylene oxide); and (ii) ETSS; as well as parts and support services for customers who purchase these or similar products manufactured by other parties. We sell our sterilizers to medical device manufacturers, pharmaceutical manufacturers and universities. We sell ETSS primarily to commercial automotive manufacturers and manufacturers of heating, ventilation and air conditioning (“HVAC”) systems.

ETC-PZL Aerospace Industries Sp. Z oo (“ETC-PZL”), our 95% owned subsidiary in Warsaw, Poland, is currently our only operating subsidiary. ETC-PZL manufactures certain simulators and provides software to support domestically produced products in our Aerospace segment.

The majority of our net sales are generated by long-term contracts with US and foreign government agencies (including Foreign Military Sales (“FMS”) contracted through the US government) for research, design, development, manufacture, integration and maintenance of ATS products, including altitude chambers (hypobars) and multiplaces (“chambers”), and simulators manufactured and sold by ETC-PZL, collectively, Aeromedical Training Solutions . The Company also enters into long-term contracts with domestic customers for the sale of sterilizers and ETSSs. ADMS net sales are generally much shorter in nature and vary between domestic and international customers. We generally provide our products and services under fixed price contracts.

ETC’s unique ability to offer complete systems, designed and manufactured to high technical standards, sets it apart from its competitors. ETC is headquartered in Southampton, Pennsylvania. For more information on ETC, visit

Forward-looking statements

This press release contains forward-looking statements, which are based on management’s expectations and are subject to uncertainties and changes in circumstances. Words and phrases that reflect anything other than historical facts are intended to identify forward-looking statements, and such statements may include words such as “may”, “will”, “should”, “expect”, “plan” , “Anticipate”, “believe”, “estimate”, “future”, “predict”, “potential”, “intend” or “continue” and similar expressions. We base our forward-looking statements on our current expectations and projections regarding future events or future financial performance. Our forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about ETC and its subsidiaries which may cause actual results to differ materially from any future results implied by such forward-looking statements. We caution you not to place undue reliance on these forward-looking statements.

– Monitoring of financial tables –

Table B

* In addition to disclosing financial results which are determined in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), we also disclose earnings before income taxes, depreciation and amortization (“EBITDA”) . The presentation of a non-US GAAP financial measure such as EBITDA aims to improve the usefulness of financial information by providing a measure that management uses internally to assess our expenses and operating performance and factors. in many of our financial covenants calculations.

A reader may find this element important in evaluating our performance. Management compensates for limitations in the use of non-US GAAP financial measures by using them only to supplement our US GAAP results in order to provide a more complete understanding of factors and trends affecting our business.



Leave A Reply