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National Technical Systems Inc. Reports Operating Results (10-Q)

September 13, 2010 | About:
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10qk

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National Technical Systems Inc. (NTSC) filed Quarterly Report for the period ended 2010-07-31.

National Technical Systems Inc. has a market cap of $72.28 million; its shares were traded at around $7.5799 with a P/E ratio of 16.84 and P/S ratio of 0.59. National Technical Systems Inc. had an annual average earning growth of 12.5% over the past 10 years.NTSC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of NTSC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of NTSC.


Highlight of Business Operations:

For the six months ended July 31, 2010, consolidated revenues increased by $13,229,000 or 23.0% when compared to the same period in fiscal 2010. Organic growth of $8,133,000 or 14.2% was primarily due to continued strong performance in the aerospace and defense markets as a result of the Company s investments in additional capability and capacity. Acquisition growth of $5,096,000 or 8.9% was from the purchase of Unitek Technical Services on November 30, 2009.

Other income was $3,189,000 for the six months ended July 31, 2010, compared to other income of $135,000 for the same period in the prior year. The income in the current year was primarily due to the gain on the sale of the Company s Virginia property of $3,017,000 and the net gain recognized from insurance recovery of $836,000 related to fires at the Company s Fullerton and Plano facilities in the prior year, partially offset by adjustments to the earn-out for Unitek Technical Services and other non-recurring expenses.

Net income for the six months ended July 31, 2010 was $4,539,000 compared to $1,392,000 for the same period in fiscal 2010, an increase of $3,147,000 or 226.1%. This increase was primarily due to the $3,054,000 increase in other income and the $2,311,000 increase in operating income, partially offset by higher income taxes.

Net cash provided by operating activities of $5,560,000 in the six months ended July 31, 2010 primarily consisted of net income of $4,539,000, adjusted for non-cash items of $3,608,000, share-based compensation of $317,000, undistributed earnings of affiliate of $201,000, tax benefit from stock options exercised of $167,000, changes in working capital of $110,000 and other adjustments of $51,000, partially offset by gain on sale of assets of $3,017,000, deferred income taxes of $220,000, recoveries of receivables of $134,000 and gain on investments of $62,000. Net cash provided by operating activities of $2,948,000 in the six months ended July 31, 2009 primarily consisted of net income of $1,392,000 adjusted for non-cash items of $3,597,000 in depreciation and amortization, write off of receivables of $276,000, share-based compensation of $135,000, life insurance premium of $37,000, undistributed earnings of affiliate of $28,000 and loss on retirement of assets of 8,000, offset by changes in working capital of $2,194,000, deferred income taxes $171,000 and gain on investments of $160,000.

Net cash used in investing activities in the six months ended July 31, 2010 of $4,823,000 was primarily attributable to capital spending of $6,403,000 and cash used for acquisitions related earn-out payments of $2,149,000, investment in retirement funds of $375,000 and investment in life insurance of $15,000, partially offset by proceeds from sale of property of $2,293,000 and proceeds from sale of life insurance of $1,826,000. Net cash used in investing activities in the six months ended July 31, 2009 of $3,813,000 was primarily attributable to capital spending of $3,185,000, investment in retirement funds of $351,000, acquisitions of businesses, net of cash acquired of $159,000 and investment in life insurance of $118,000.

Net cash used in financing activities in the six months ended July 31, 2010 of $2,817,000 consisted of repayment of debt of $4,010,000, cash dividends paid of $710,000, net cash dividends paid by NQA, Inc. of $99,000, partially offset by proceeds from borrowing of $1,524,000 and proceeds from stock options exercised of $478,000. Net cash used in financing activities in the six months ended July 31, 2009 of $2,592,000 consisted of repayment of debt of $4,304,000, cash dividends paid of $558,000 and common stock repurchase of $58,000, partially offset by proceeds from borrowing of $2,328,000.

Read the The complete Report

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