Business
ETC Announces Fiscal 2020 Third Quarter Results
ETC Announces Fiscal 2020 Third Quarter Results.
About this update from Environmental Tectonics Corp.
[{"type":"text","content":"\n SOUTHAMPTON, Pa., Jan. 24, 2020 (GLOBE NEWSWIRE) -- Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for the thirteen week period ended November 29, 2019 (the “2020 third quarter”) and the forty week period ended November 29, 2019 (the “2020 first three quarters”). Fiscal 2020 Third Quarter Results of Operations Net (Loss) Income Attributable to ETC Net loss attributable to ETC was $2.5 million, or $0.17 diluted loss per share, in the 2020 third quarter compared to net income attributable to ETC of $0.9 million, or $0.05 diluted earnings per share, in the 2019 third quarter. The $3.4 million variance is due entirely to a decrease in gross profit. Net Sales Net sales in the 2020 third quarter were $7.7 million, a decrease of $4.2 million, or 35.2%, compared to 2019 third quarter net sales of $11.9 million. The decrease reflects lower International sales of Aeromedical Training Solutions within the Aerospace segment and lower Domestic sales of Sterilizers within the CIS segment, offset, in part, by an increase in ETSS sales to Domestic customers within the CIS segment. Gross Profit Gross profit for the 2020 third quarter was $0.7 million compared to $4.1 million in the 2019 third quarter, a decrease of $3.4 million, or 82.7%. The decrease in gross profit was due to the combination of lower net sales and a lower blended gross profit margin as a percentage of net sales, which decreased to 9.3% for the 2020 third quarter compared to 34.9% for the 2019 third quarter. The decrease in gross profit margin as a percentage of net sales was due to the completion and delivery of two (2) significant International ATS contracts during fiscal 2019, which resulted in the Company entering fiscal 2020 with a lower backlog comprised of contracts with comparably lower estimated profit booking rates, coupled with increases in the estimated total costs to fulfill performance obligations associated with several contracts, which resulted in a reduction to the profit booking rates. Operating Expenses Operating expenses, including sales and marketing, general and administrative, and research and development, for both the 2020 third quarter and the 2019 third quarter were $2.9 million. As a percentage of net sales, operating expenses increas...