MTSC » Topics » Third Quarter Results

This excerpt taken from the MTSC 8-K filed Nov 19, 2009.
Fourth Quarter Results

 

On a sequential basis, orders increased 18 percent compared to third quarter 2009, driven by higher order volume in both the Test and Sensors segments. The increase was affected by order timing and may not be an indication of order levels in future quarters. Backlog increased 3 percent to $168 million.

 

On a year-over-year basis, orders totaled $95.5 million, a decline of 17 percent, due to lower volume in the Test segment in the Americas and Europe, and lower volume in the Sensors segment across all geographies. This includes a 23 percent decline in the organic business, partially offset by a 6 percent increase from SANS.

 

Revenue was $93.8 million, a decrease of 24 percent compared to the previous year. This includes declines of 31 percent and 35 percent in the Test organic business and the Sensors business, respectively, partially offset by a 7 percent increase from SANS.

 

As previously announced, MTS initiated further workforce and cost reduction actions in the fourth quarter related to process and structure improvements and material sourcing. The actions impacted approximately 130 positions and resulted in a pretax severance charge of $8.1 million, or $0.33 per share, in the quarter. Combined with cost-reduction initiatives taken earlier in the year, the Company anticipates saving approximately a net $21 million before taxes in fiscal 2010.

 

Gross profit was $31.3 million, down 42 percent compared to fourth quarter last year. The gross margin rate was 33.3 percent, 10.0 percentage points lower than in the prior year. This was the result of lower volume and the previously mentioned severance charges, partially offset by a positive impact from SANS. The severance charges reduced the margin rate by 5.3 percentage points and SANS positively impacted the margin rate by 0.7 percentage points.

 




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Loss from operations was $3.9 million, resulting from lower gross profit and the previously mentioned severance charges, which was partially offset by reduced selling, general and administrative expenses in the organic business. Excluding severance charges, selling, general and administrative expenses in the organic business were down 16 percent, or $4.6 million, resulting from a smaller workforce and lower discretionary spending.

 

Net earnings decreased 121 percent to a net loss of $0.18 per share compared to the prior year, driven by lower income from operations and higher net interest.

 

Cash Position

 

Cash and cash equivalents at the end of the fourth quarter totaled $118.9 million, flat compared to the end of the previous quarter and up 4 percent from the end of fiscal 2008. Operating activities generated cash of $6.9 million in the fourth quarter. During the period, the Company invested $2.1 million in capital expenditures, paid $2.5 million in dividends and purchased approximately 136,000 shares of common stock for $3.4 million.

 

This excerpt taken from the MTSC 8-K filed Jul 22, 2009.
Third Quarter Results

 

On a sequential basis, orders increased 17 percent compared to second quarter 2009, driven by the Test organic business. Backlog decreased 7 percent to $163 million.

 

On a year-over-year basis, orders totaled $80.7 million, a decline of 31 percent, due to lower volume in the Test segment in the Americas and Europe, and lower volume in the Sensors segment across all geographies. This includes a 34 percent negative impact from the decline in the organic business and a 2 percent negative impact from currency translation, partially offset by a 5 percent benefit from SANS, our recently acquired Chinese subsidiary.

 

Revenue was $90.8 million, a decrease of 22 percent compared to the previous year. This includes a 21 percent decline in the Test organic business, a 38 percent decrease in the Sensors business and a 3 percent negative impact of currency translation, partially offset by a 6 percent benefit from SANS.

 

Gross profit was $34.6 million, down 27 percent compared to third quarter last year. The gross margin rate was 38.1 percent, 2.3 percentage points lower than in the prior year, driven by weaker volume and severance charges. SANS positively impacted the margin rate in the quarter by 0.2 percentage points.

 

Income from operations was $4.8 million, a decrease of 68 percent compared to the prior year. This was primarily driven by lower gross profit and the previously mentioned severance charges, partially offset by reduced operating expenses. Operating expenses decreased 8 percent, or $2.7 million. Excluding SANS, operating expenses were down 16 percent, or $5.3 million, resulting from a reduction in the number of employees and lower discretionary spending.

 




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As previously announced, in the third quarter, MTS approved a plan for an additional capacity-related reduction in its workforce in response to the continued weakness in industrial capital spending. The actions impacted approximately 65 positions and resulted in a pretax severance charge of $1.2 million, or $0.05 per share. The year-to-date pre-tax severance charges totaled $4.0 million, or $0.17 per share. The Company also previously announced that, combined with these actions, it anticipates further workforce and cost reduction actions in the fourth quarter related to material sourcing and process and structure improvements. Combined, these actions will result in annual savings of $15-20 million for fiscal 2010.

 

Earnings from continuing operations decreased 70 percent to $0.19 per diluted share on income of $3.1 million. Lower income from operations and unfavorable net interest, primarily resulting from reduced interest rates in Europe, negatively impacted earnings from continuing operations by $0.42 and $0.06, respectively. Net income totaled $3.1 million, or $0.19 per diluted share, a decrease of 75 percent compared to the prior year. During the third quarter fiscal 2008, the Company sold the net assets of its Nano Instruments product line which resulted in a net gain from discontinued operations of $0.10 per diluted share.

 

Cash Position

 

Cash and cash equivalents at the end of the third quarter totaled $118.9 million, compared to $99.3 million at the end of the fiscal 2009 second quarter. Operating activities generated cash of $21.2 million in the third quarter. During the period, the Company invested $1.8 million in capital expenditures, paid $2.5 million in dividends and purchased approximately 126,000 shares of common stock for $2.7 million.

 

This excerpt taken from the MTSC 8-K filed Apr 23, 2009.
Second Quarter Results

 

Orders totaled $69.2 million, a decrease of 47 percent compared to the prior year second quarter, due to lower volume in both segments across all geographies. This includes a 49 percent negative impact from the decline in the organic business, a three percent negative impact from currency translation and a five percent benefit from SANS, our recently acquired Chinese subsidiary. On a sequential basis, backlog decreased 20 percent to $175 million compared to first quarter fiscal 2009.

 

Revenue was $107.7 million, a decrease of four percent compared to the prior year. This includes relatively flat volume in the Test organic business, a 27 percent decrease in the Sensors business and a three percent negative impact of currency translation, partially offset by a four percent benefit from SANS.

 




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In the second quarter MTS reduced its company-wide workforce by six percent, or approximately 150 positions, to align the business with current market and economic conditions. This resulted in a pretax severance charge of $2.8 million in the quarter.

 

Gross profit was $41.5 million, a decrease of 10 percent compared to second quarter last year. The gross margin rate was 38.6 percent, down 2.5 percentage points compared to the prior year, driven by lower volume in the Sensors segment and severance charges, partially offset by reduced variable compensation expense. SANS positively impacted the margin rate in the quarter by 0.2 percentage points.

 

Income from operations was $11.7 million, a decrease of 16 percent compared to the prior year. The decrease was primarily driven by lower gross profit and the previously mentioned severance charges, partially offset by a $3.9 million reduction in variable compensation expense. Earnings per share decreased 42 percent to $0.44 on net income of $7.5 million. A higher tax rate, lower income from operations and currency related losses negatively impacted earnings per share by $0.10, $0.09 and $0.09, respectively. The higher tax rate compared to second quarter fiscal 2008 was driven by a tax benefit from the repatriation of earnings from Japanese affiliates in the prior year.

 

Cash Position

 

Cash and cash equivalents at the end of the second quarter totaled $99.3 million, compared to $104.8 million at the end of first quarter fiscal 2009. Operating activities generated cash of $10.2 million in the second quarter. During the period, the Company invested $2.8 million in capital expenditures, paid $2.5 million in dividends, and purchased approximately 125,400 shares of common stock for $3.1 million.

 

This excerpt taken from the MTSC 8-K filed Jan 21, 2009.
First Quarter Results

 

Orders totaled $95.3 million, a decrease of 23 percent compared to the prior first quarter, primarily due to lower volume in both segments across all geographies. This includes a 26 percent decline in the organic business, before the recent acquisition of SANS, one percent negative impact of currency and four percent benefit from SANS. Backlog decreased seven percent to $218 million compared to fourth quarter fiscal 2008.

 

Revenue was $116.6 million, an increase of nine percent compared to the prior year. This includes 15 percent growth in the Test organic business, driven by higher opening backlog, and three percent benefit from SANS, partially offset by a 14 percent decrease in the Sensors segment and a three percent negative impact of currency.

 




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Gross profit was $44.2 million, an increase of two percent compared to first quarter last year. The gross margin rate was 37.9 percent, a decrease of 2.3 percentage points compared to the prior year, driven by volume decline in the Sensors segment, as well as unfavorable product mix in the Test segment. SANS negatively impacted the margin rate in the quarter by 0.5 percentage points, primarily resulting from the valuation of inventory at fair market associated with the acquisition.

 

Income from operations was relatively flat. Earnings per share increased 21 percent to $0.57 on net income of $9.8 million. A lower tax rate from favorable U.S. tax legislation contributed $0.08 and reduced shares positively impacted earnings per share by $0.03.

 

Cash Position

 

Cash and cash equivalents at the end of the first quarter totaled $104.8 million, compared to $114.1 million at the end of fiscal 2008. Cash flows from operations generated $5.5 million. During the first quarter, the Company borrowed $16.0 million from its credit facility, paid an additional $18.9 million for the acquisition of SANS, invested $3.0 million in capital expenditures, and purchased approximately 120,000 shares of common stock for $3.6 million.

 

“We are in the fortunate position of having a strong balance sheet and low debt-to-equity levels and we generate strong cash flow from operations,” said Hamilton. “This is a key measure of our financial health that allows us to stay focused on creating long-term value.”

 

This excerpt taken from the MTSC 8-K filed Nov 13, 2008.
Fourth Quarter Results

 

Fourth quarter orders totaled $115.2 million, an increase of 7 percent compared to fourth quarter fiscal 2007. This represents 8 percent and 5 percent growth in the Test and Sensors segments, respectively, driven by growth in Europe and Americas and includes an estimated $4 million favorable impact from currency translation. Backlog decreased 3 percent to $235 million compared to third quarter fiscal 2008.

 

Revenue in the fourth quarter was $124.1 million, an increase of 14 percent compared to fourth quarter fiscal 2007. This increase included 13 percent and 17 percent growth in the Test and Sensors segments, respectively, and reflects higher volume across all geographies. An estimated $4 million favorable impact was due to currency translation.

 

Gross profit in the fourth quarter was $53.7 million, an increase of 15 percent compared to fourth quarter fiscal 2007. The gross margin rate was 43.3 percent, an increase of 0.4 percentage points compared to fourth quarter fiscal 2007, driven by increased volume in both segments and improved margins on custom projects in the Test segment.

 




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Income from operations in the fourth quarter totaled $21.0 million, an increase of 45 percent compared to fourth quarter fiscal 2007, primarily resulting from higher volume.

 

Income before discontinued operations in the fourth quarter increased to $0.85 per diluted share, or $14.5 million, up 33 percent compared to fourth quarter fiscal 2007. This increase was driven by higher operating income, partially offset by higher income tax expense of $3.5 million. The effective tax rate in the fourth quarter was 34.5 percent, an increase of 8.1 percentage points compared to fourth quarter fiscal 2007. The lower fiscal 2007 rate included the enactment of favorable tax legislation in Germany and the U.S, which allowed the Company to record a $1.3 million tax benefit in the fourth quarter of fiscal 2007. Reduced shares outstanding positively impacted earnings per share on income from continuing operations by $0.05 for the quarter.

 

Cash and cash equivalents at the end of fourth quarter fiscal 2008 totaled $114.1 million, a decrease of $5.8 million compared to the end of third quarter fiscal 2008. Cash flow from operations generated $3.0 million. During the fourth quarter, the Company borrowed $24.0 million from its credit facility, and invested $13.7 million in SANS and $3.0 million in capital expenditures.

 

This excerpt taken from the MTSC 8-K filed Nov 15, 2007.
Fourth Quarter Results

 

Fourth quarter reflected worldwide orders growth in the Sensors segment, increased custom orders in the Test segment in Asia, as well as an estimated $3.2 million favorable impact of currency translation. Backlog remained unchanged from the third quarter at $206 million.

 

Revenue in the fourth quarter was driven by growth in the Sensors segment and an estimated $3.3 million favorable impact of currency translation.

 

Gross profit in the fourth quarter was $47.4 million, compared to $45.3 million for fourth quarter fiscal 2006. This increase was primarily due to higher volume and increased operational efficiency in the Sensors segment, reduced warranty and performance-based compensation expense in the Test segment, and an estimated $0.8 million favorable impact of currency translation, partially offset by unfavorable product mix and additional custom project costs in the Test segment. The fourth quarter gross margin rate was 42.7 percent, flat compared to fiscal 2006.

 




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Income from operations for the quarter totaled $14.5 million, down slightly compared to income from operations of $14.7 million for fourth quarter fiscal 2006, as planned increases in sales, marketing, and R&D spending to support strategic initiatives more than offset the increase in gross profit for the quarter. There was no significant impact on income from operations from currency translation. Fourth quarter income before discontinued operations was $11.5 million, or $0.64 per diluted share, an increase of 4 percent compared to fourth quarter fiscal 2006 income before discontinued operations of $11.1 million, or $0.60 per diluted share. This increase was driven by reduced income tax expense resulting from the enactment of favorable tax legislation in the quarter.

 

Net income for the quarter totaled $11.5 million, a slight decrease compared to fourth quarter fiscal 2006 net income of $11.6 million. Fourth quarter diluted earnings per share of $0.64 increased approximately 3 percent compared to fourth quarter fiscal 2006 earnings per diluted share of $0.62. The increase was driven by higher income before discontinued operations and a $0.02 positive per share impact of reduced share count, partially offset by a $0.02 positive per share impact of income from discontinued operations in the fourth quarter of fiscal year 2006.

 

Cash, cash equivalents and short-term investments at the end of the fourth quarter totaled $121 million, compared to $104 million at the end of third quarter of fiscal year 2007. Cash flows from operations provided cash totaling $27.4 million in the quarter, primarily due to strong earnings and reduced working capital requirements. The Company purchased approximately 184,000 shares of common stock for $7.8 million in the quarter.

 

This excerpt taken from the MTSC 8-K filed Nov 16, 2006.
Fourth Quarter Results

Fourth quarter orders totaled $100.8 million, a decrease of 8 percent compared to orders of $109.7 million for fourth quarter fiscal 2005, reflecting decreased custom orders in the Test segment, partially offset by increased volume in the Industrial segment. Backlog decreased 3 percent in the quarter, from $198 million to $192 million.

Revenue in the fourth quarter was $106.2 million, an increase of 17 percent compared to revenue of $90.5 million for fourth quarter fiscal 2005. This increase resulted from growth in both segments.

Gross profit for the fourth quarter was $45.3 million, an increase of 16 percent compared to $39.2 million for fourth quarter fiscal 2005. This increase was primarily due to higher volume in both segments, as well as $3.6 million in fiscal 2005 costs related to the noise and vibration business that the Company exited in fourth quarter fiscal 2005. Fourth quarter income from operations was $14.7 million, an increase of 60 percent compared to income from operations of $9.2 million for fourth quarter fiscal 2005. This increase was due to higher gross profit in both segments and $0.9 million of prior year costs associated with the exit of the noise and vibration business. These increases were partially offset by planned increases in operating expenses and $1.2 million of stock




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compensation expense. Fourth quarter net income was $11.6 million, or $0.62 per diluted share, an increase of 10 percent compared to fourth quarter fiscal 2005 net income of $10.5 million, or $0.51 per diluted share, driven by higher income from operations, $0.7 million favorable net interest, and a $0.8 million favorable net impact of foreign currency transaction gains. Income tax expense increased $4.5 million, primarily due to higher earnings and a reduction in tax benefits resulting from favorable resolution of previously accrued tax matters. Fourth quarter fiscal 2006 and 2005 results also included income from discontinued operations of $0.5 million and $2.0 million, respectively.

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