IEC Announces FY 4Q Results
Newark, New York- IEC Electronics Corp. announced results for the fiscal 2019 fourth quarter and year ended September 30, 2019 (“fiscal 2019”).
IEC reported revenues of $43.9 million for the fourth quarter of fiscal 2019, an increase of 28.4% as compared to revenues of $34.2 million for the fourth quarter of the year ended September 30, 2018 (“fiscal 2018”), and a 9% increase sequentially compared to revenue in the third quarter of fiscal 2019. Gross margin for the fourth quarter of fiscal 2019 was 14.6%, an increase of 150 basis points compared to the same quarter last year. Selling and administrative expenses were $3.7 million in the fourth quarter of fiscal 2019, or 8.4% of sales, as compared to $2.9 million, or 8.5% percent of sales, in the fourth quarter of fiscal 2018. Operating profit was $2.7 million for the quarter, an increase of 70% when compared to the same quarter in the prior fiscal year. The Company reported net income of $1.8 million, or $0.17 per basic and diluted share for the fourth quarter of fiscal 2019, compared to net income of $9.1 million, or $0.89 per basic share and $0.87 per diluted share in the fourth quarter of fiscal 2018. Net income for the fiscal 2018 fourth quarter included a one-time tax benefit of $7.8 million or $0.76 per share. On a non-GAAP basis, excluding the one-time tax benefit, fourth quarter 2018 net income was $1.3 million or $0.13 per basic and $0.12 per diluted share. Please see the reconciliation table attached to this release for further information and a reconciliation of these non-GAAP measures.
Revenues for fiscal 2019 increased 34.3% to $157.0 million as compared to $116.9 million for fiscal 2018. Gross margin for fiscal 2019 improved to 13.8%, up 170 basis points from fiscal 2018 performance. Selling and administrative expenses were $14.1 million in fiscal 2019 but decreased as a percentage of sales to 9.0%, as compared to $11.4 million or 9.8% of sales for fiscal 2018. Operating profit was $7.6 million for fiscal 2019, which represents a 178% increase over the prior fiscal year. Net income for fiscal 2019 was $4.7 million, or $0.46 per basic share and $0.45 per diluted share. Net income for fiscal 2018 was $10.4 million, or $1.01 per basic and diluted share. Fiscal 2018 net income included one-time tax benefits of $8.8 million or $0.86 per basic and diluted share. On a non-GAAP basis, excluding the one-time tax benefit, fiscal 2018 net income was $1.6 million or $0.15 per basic and diluted share. Please see the reconciliation table attached to this release for further information and a reconciliation of these non-GAAP measures.
Jeffrey T. Schlarbaum, President and CEO of IEC Electronics commented, “Our fourth quarter performance built on the positive momentum we established throughout fiscal 2019, providing a strong close to our fiscal year. We achieved our fifth consecutive quarter of revenue growth and our second sequential quarter of revenues exceeding $40 million. We believe our continued investments in our highly skilled workforce, manufacturing processes, and supply chain strategies, have enhanced our ability to convert our backlog in a more efficient manner, resulting in industry leading margin performance and year over year improvements.
“As we look to our upcoming year, our pipeline remains strong with our fiscal 2019 year-end backlog at $212 million, which represents a 59% increase from fiscal 2018. The backlog growth is a direct result of our focused strategy of expanding our relationships with existing customers in addition to on-boarding new strategic customers who value our unique service model.”
Mr. Schlarbaum concluded, “We’re energized by our strong performance in fiscal 2019 and look forward to driving continued success in 2020. We remain focused on our mission to minimize supply chain risk for our customers and to provide the expertise required for the life-saving and mission critical products we support. With the people, technology and customer relationships we have in place today, we believe we are well positioned to grow our leadership position and capture additional market share. This is an exciting time for our Company and we are enthusiastic about our future prospects and look forward to capitalizing on the opportunities ahead.”