National Technical Systems Inc. (NTSC, Financial) filed Quarterly Report for the period ended 2013-07-31.
National Technical Systems has a market cap of $266.9 million; its shares were traded at around $22.80 with a P/E ratio of 55.60 and P/S ratio of 1.50. National Technical Systems had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated National Technical Systems the business predictability rank of 3.5-star.
Gross profit for the six months ended July 31, 2013 increased by $3,866,000 or 16.0% when compared to the same period in fiscal year 2013. Several factors contributed to the increase, including price increases, favorable project mix, increased volume, and decreased costs related to the reduction in force. Also, with the centralization of administrative functions which began in the first quarter of the current fiscal year, SG&A expense for the six months ended July 31, 2013 included approximately $1,300,000 of support-related expenses that were classified as cost of sales in the prior fiscal year. Gross profit as a percentage of revenue, or gross margin, increased from 26.6% to 30.7%.
Total selling, general and administrative expenses increased by $4,499,000 or 26.3% for the six months ended July 31, 2013 when compared to the same period in fiscal year 2013. The increase is mainly due to additional share-based compensation expense of $2,419,000 driven by the significant increase in the Company s stock price in this fiscal year, $300,000 in one-time transaction costs and $1,104,000 in additional incentive compensation. Also, with the centralization of administrative functions which began in the first quarter of the current fiscal year, SG&A expense for the first six months of fiscal year 2014 included approximately $1,300,000 of support-related expenses that were classified as cost of sales in the prior fiscal year.
Gross profit for the three months ended July 31, 2013 increased by $1,657,000 or 12.9% when compared to the same period in fiscal year 2013. This increase in gross profit was primarily due to price increases, favorable project mix and decreased costs related to the reduction in force. Approximately $600,000 of support-related expenses were included in cost of sales in the second quarter of the prior year, which due to the centralization of administrative functions that began in the first quarter is recorded to SG&A in the current quarter. Gross profit as a percentage of revenue, or gross margin, increased from 27.1% to 31.3%.
Total selling, general and administrative expenses increased by $2,872,000 or 33.1% for the three months ended July 31, 2013 when compared to the same period in fiscal year 2013. The increase is mainly due to additional share-based compensation expense of $1,983,000 driven by the significant increase in the Company s stock price in the current quarter, $300,000 in one-time transaction costs and $706,000 in additional incentive compensation. Also, with the centralization of administrative functions which began in the first quarter of the current fiscal year, SG&A expense for the current quarter included approximately $600,000 of support-related expenses that were classified as cost of sales in the prior fiscal year.
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National Technical Systems has a market cap of $266.9 million; its shares were traded at around $22.80 with a P/E ratio of 55.60 and P/S ratio of 1.50. National Technical Systems had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated National Technical Systems the business predictability rank of 3.5-star.
Highlight of Business Operations:
Consolidated revenues for the six months ended July 31, 2013, were $91,203,000, an increase of $421,000 or 0.5% over the same period last year. The majority of this increase came from organic growth particularly in the aerospace market, partially offset by a decrease in the defense market. The increased revenues combined with prudent cost controls resulted in net income for the period of $1,667,000.Gross profit for the six months ended July 31, 2013 increased by $3,866,000 or 16.0% when compared to the same period in fiscal year 2013. Several factors contributed to the increase, including price increases, favorable project mix, increased volume, and decreased costs related to the reduction in force. Also, with the centralization of administrative functions which began in the first quarter of the current fiscal year, SG&A expense for the six months ended July 31, 2013 included approximately $1,300,000 of support-related expenses that were classified as cost of sales in the prior fiscal year. Gross profit as a percentage of revenue, or gross margin, increased from 26.6% to 30.7%.
Total selling, general and administrative expenses increased by $4,499,000 or 26.3% for the six months ended July 31, 2013 when compared to the same period in fiscal year 2013. The increase is mainly due to additional share-based compensation expense of $2,419,000 driven by the significant increase in the Company s stock price in this fiscal year, $300,000 in one-time transaction costs and $1,104,000 in additional incentive compensation. Also, with the centralization of administrative functions which began in the first quarter of the current fiscal year, SG&A expense for the first six months of fiscal year 2014 included approximately $1,300,000 of support-related expenses that were classified as cost of sales in the prior fiscal year.
Gross profit for the three months ended July 31, 2013 increased by $1,657,000 or 12.9% when compared to the same period in fiscal year 2013. This increase in gross profit was primarily due to price increases, favorable project mix and decreased costs related to the reduction in force. Approximately $600,000 of support-related expenses were included in cost of sales in the second quarter of the prior year, which due to the centralization of administrative functions that began in the first quarter is recorded to SG&A in the current quarter. Gross profit as a percentage of revenue, or gross margin, increased from 27.1% to 31.3%.
Total selling, general and administrative expenses increased by $2,872,000 or 33.1% for the three months ended July 31, 2013 when compared to the same period in fiscal year 2013. The increase is mainly due to additional share-based compensation expense of $1,983,000 driven by the significant increase in the Company s stock price in the current quarter, $300,000 in one-time transaction costs and $706,000 in additional incentive compensation. Also, with the centralization of administrative functions which began in the first quarter of the current fiscal year, SG&A expense for the current quarter included approximately $600,000 of support-related expenses that were classified as cost of sales in the prior fiscal year.
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