Saratoga Springs, NY, May 15, 2019 – Espey Mfg. & Electronics Corp. (NYSE American: ESP) announces results for its third quarter and first nine months of fiscal year 2019, ended March 31, 2019. Net sales for the third quarter of fiscal year 2019, January 1 to March 31, 2019, were $9.2 million, compared with last year’s third quarter net sales of $5.7 million. Net income for the period was $922,456, $0.39 per diluted share, compared with $317,764, $0.14 per diluted share for the same quarter last year.
For the first nine months of fiscal year 2019, July 1 to March 31, 2019, net sales were $24.9 million, compared with $24.7 million for the first nine months of fiscal year 2018. Net income for the period was $1,201,886, $0.50 per diluted share, compared with net income of $2,375,399, $1.02 per diluted share, for the same period last year.
The backlog for the Company was $45.4 million at March 31, 2019, compared with last year’s backlog of $47.0 million at March 31, 2018. New orders in the first nine months of fiscal year 2019 were approximately $22.2 million, compared with new orders in the first nine months of fiscal year 2018 of approximately $28.6 million.
Mr. Patrick Enright, President and CEO, commented,
Our third quarter performance is indicative of where we stand on our major magnetics development programs, along with solid performance on our repeat production orders. One design has completed qualification, and had both test and production units delivered to our customers. The other two designs are complete, with units delivered to US Navy test facilities after extensive in-house testing. Qualification on these two designs will start in Q4, with the first production deliveries of our new 3.8 MW transformer planned before the end of fiscal year 2019.
We anticipated that fiscal year 2019 would be back-end loaded, with strong revenues and new sales orders anticipated during the final quarter of the year. We believe that the majority of new orders in the fourth quarter will come from our new products as they transition to low-rate initial production, consistent with our growth strategy implemented over the past several years. The new orders, if realized, will enable us to start Fiscal Year 2020 with a robust backlog.
Espey’s primary business is the development, design, and production of specialized military and industrial power supplies/transformers. The Company can be found on the Internet at www.espey.com.
For further information, contact Mr. David O’Neil (518)245-4400.
This press release may contain certain statements that are “forward-looking statements” and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent the Company’s current expectations or beliefs concerning future events. The matters covered by these statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.
Having Been Around for 80 Years, Espey Manufacturing & Electronics Corp., which has a Long History of Stable Profitability Providing Power Electronics to the Defense Industry is Now Focused on Growth
Company Profile: Espey Mfg. & Electronics Corp is a Power Electronics Design and Original Equipment Manufacturing (OEM) company with a long history of devel-oping and delivering highly reliable products for use in military and severe environment applications. All design, manufacturing, and testing is performed in our 150,000+ square foot facility located at 233 Ballston Ave, Saratoga Springs, New York. Espey is a small business that is ISO 9001:2008 certified and publicly traded on NYSE Amex (ESP). Espey has been in business for 80 years and continues to be successful through the design and manufacture of new and improved products by using cutting edge and emerging technologies.
Espey services include design and development to specification, build to print, design services, design studies, environmental testing services, metal fabrication, and painting services, and development of automatic testing equipment. Espey manufacturing is vertically integrated and will produce individual components (including in-ductors), populate printed circuit boards, fabricate metalwork, paint, wind magnetics, qualify, and fully test items in house; mechanically, electrically and environmentally.
Espey’s primary products are power supplies, power converters, filters, power transformers, magnetic components, power distribution equipment, ups systems, antennas and high power radar systems. The applications of these products include AC and DC locomotives, shipboard power, shipboard radar, airborne power, ground-based radar, and ground mobile power.
Espey is on the eligible list of contractors on the United States Department of Defense and generally is automatically solicited by such agencies for procurement needs falling within the major classes of products produced by the company. Espey contracts with the Federal Government under cage code 20950 as Espey Mfg. & Electronics Corp. and cage code 98675 as Espey Mfg. & Electronics Corp., Saratoga Industries Division.
Interview conducted by: Lynn Fosse,
Senior Editor CEOCFOinterviews.com
CEO/CFO: Mr. St. Pierre, you have been with Espey Manufacturing and Electronics for almost two years; what attracted you to the company?
Mr. St. Pierre: What attracted me to Espey Manufacturing and Electronics was primarily, its longevity. Espey is a company that has not been on the industries radar, yet it has been around for eighty years. I wondered how a company could survive and prosper that long and be so little known. Espey is largely unknown except by a handful of very loyal long-term defense contractors. Therefore, I was intrigued by an opportunity to take a company with that kind of history and grow it. It had been stable and steady, but had not grown over the years. For me it was an attractive opportunity to take this profitable steady business, make a growth engine out of it, get it on the map and get it recognized for what it is.
CEO/CFO: As CEO for over a year, what have you done to change Espy, and what are you still working on in that area?
Mr. St. Pierre: There are many areas of focus for Espey, but the primary one is external. In other words, building a sales and marketing force is critical to getting the name out there and to bring new opportunities into the company, so we are hard at work on that. In fact, we just hired a Director of Sales and Marketing to lead that effort. He will in turn bolster the sales force nationally and even internationally where we have a couple of inter-national reps or agents. That is priority one, but while that is going on and parallel to that, there are a bunch of internal initiatives like the lean initiative. For example, we are focused on making our factory efficient by removing non value-added activities throughout our operation. Thirdly, a strategic plan has been developed and that has for the first time in the company provided a comprehensible strategic vision that looks out five years and sees where opportunities are and where the company can focus on its core and leverage those for successful growth.