National Technical Systems Inc. (NTSC, Financial) filed Quarterly Report for the period ended 2012-10-31.
National Technical Systems has a market cap of $89.1 million; its shares were traded at around $7.88 with a P/E ratio of 38.8 and P/S ratio of 0.5. National Technical Systems had an annual average earning growth of 7.5% over the past 10 years. GuruFocus rated National Technical Systems the business predictability rank of 2.5-star.
For the nine months ended October 31, 2012, consolidated revenues increased by $25,611,000 or 22.3% when compared to the same period in the prior year. Organic revenues (revenues from businesses owned throughout both reporting periods) increased by $16,826,000 or 14.6% which was primarily related to an increase in the aerospace, energy and defense markets. Revenues from acquisitions increased by $8,785,000 or 7.6% from the purchase of Ingenium Testing on July 20, 2011, Lightning Technologies on September 1, 2011, and Garwood Laboratories on April 17, 2012.
Gross profit for the nine months ended October 31, 2012 increased by $10,311,000 or 37.1% when compared to the same period in the prior year. Gross profit as a percentage of revenue, or gross margin, increased to 27.1% from 24.2% in the prior year. This increase in gross profit was primarily due to better leverage of fixed costs with the increased level in revenues, somewhat offset by pricing pressure in some markets.
For the three months ended October 31, 2012, consolidated revenues increased by $9,423,000 or 23.3% when compared to the same period in the prior year. Organic revenues (revenues from businesses owned throughout both reporting periods) increased by $6,792,000 or 16.8% which was primarily related to an increase in the aerospace, energy and defense markets. Revenues from acquisitions increased by $2,631,000 or 6.5% from the purchase of Ingenium Testing on July 20, 2011, Lightning Technologies on September 1, 2011, and Garwood Laboratories on April 17, 2012.
Gross profit for the three months ended October 31, 2012 increased by $4,509,000 or 47.6% when compared to the same period in the prior year. Gross profit as a percentage of revenue, or gross margin, increased to 28.0% from 23.4% in the prior year. This increase in gross profit was primarily due to better leverage of fixed costs with the increased level in revenues, somewhat offset by pricing pressure in some markets.
Read the The complete Report
National Technical Systems has a market cap of $89.1 million; its shares were traded at around $7.88 with a P/E ratio of 38.8 and P/S ratio of 0.5. National Technical Systems had an annual average earning growth of 7.5% over the past 10 years. GuruFocus rated National Technical Systems the business predictability rank of 2.5-star.
Highlight of Business Operations:
On April 17, 2012, the Company acquired all of the outstanding common stock of Garwood Laboratories, Inc. (Garwood), with testing facilities in Pico Rivera and San Clemente, CA. The acquisition expands NTS customer relationships and market share in Southern California as well as the greater Western U.S. region. The aggregate purchase price was $5,092,000. Cash paid at closing was $3,165,000, and was funded by a draw down on the Company s acquisition line of credit under its senior credit facility. The Company also issued a promissory note for $1,175,000 which is due to the seller on April 17, 2013. The Company has withheld $750,000 of the purchase price for 18 months after closing to secure Garwood s indemnification obligations under the purchase agreement. In addition to the base purchase price, the Company agreed to pay an additional earn-out up to a maximum amount of $450,000 (earn-out) if Garwood meets certain targets related to customer retention and revenues for the 24 months following the purchase date. A liability of $200,000 has been recorded as an estimated fair value of the earn-out liability at October 31, 2012. A working capital adjustment receivable has been recorded at a preliminary amount of $198,000. The Company s consolidated statement of operations includes the operations of Garwood from April 17, 2012 to October 31, 2012.For the nine months ended October 31, 2012, consolidated revenues increased by $25,611,000 or 22.3% when compared to the same period in the prior year. Organic revenues (revenues from businesses owned throughout both reporting periods) increased by $16,826,000 or 14.6% which was primarily related to an increase in the aerospace, energy and defense markets. Revenues from acquisitions increased by $8,785,000 or 7.6% from the purchase of Ingenium Testing on July 20, 2011, Lightning Technologies on September 1, 2011, and Garwood Laboratories on April 17, 2012.
Gross profit for the nine months ended October 31, 2012 increased by $10,311,000 or 37.1% when compared to the same period in the prior year. Gross profit as a percentage of revenue, or gross margin, increased to 27.1% from 24.2% in the prior year. This increase in gross profit was primarily due to better leverage of fixed costs with the increased level in revenues, somewhat offset by pricing pressure in some markets.
For the three months ended October 31, 2012, consolidated revenues increased by $9,423,000 or 23.3% when compared to the same period in the prior year. Organic revenues (revenues from businesses owned throughout both reporting periods) increased by $6,792,000 or 16.8% which was primarily related to an increase in the aerospace, energy and defense markets. Revenues from acquisitions increased by $2,631,000 or 6.5% from the purchase of Ingenium Testing on July 20, 2011, Lightning Technologies on September 1, 2011, and Garwood Laboratories on April 17, 2012.
Gross profit for the three months ended October 31, 2012 increased by $4,509,000 or 47.6% when compared to the same period in the prior year. Gross profit as a percentage of revenue, or gross margin, increased to 28.0% from 23.4% in the prior year. This increase in gross profit was primarily due to better leverage of fixed costs with the increased level in revenues, somewhat offset by pricing pressure in some markets.
Read the The complete Report
