Orbit International Corp. (ORBT, Financial) filed Quarterly Report for the period ended 2009-09-30.
Orbit International Corp. has a market cap of $18.1 million; its shares were traded at around $3.94 with a P/E ratio of 16.4 and P/S ratio of 0.6. Orbit International Corp. had an annual average earning growth of 7.6% over the past 5 years.
$14,200,000 at September 30, 2008. Backlog was $12,400,000 at June 30, 2009.
The increase in backlog was due primarily to the receipt by ICS of its $4.1
million MK 119 contract and well as a $1.9 million RCU order received by the
Orbit Instrument Division. In addition, bookings for the Power Group's
commercial division, which had been down for the first half of the year,
improved significantly in the third quarter. There is no seasonality to the
Company's business. Our shipping schedules are generally determined by the
shipping schedules outlined in the purchase orders received from our customers.
Both of our operating segments are pursuing a significant amount of business
opportunities and our confidence level remains high with respect to receiving
many of the orders we are pursuing although timing is always an uncertainty.
Nevertheless, we remain very encouraged by our business environment and we
expect a continuation of improved operating results in the second half of 2009
as compared to the first half.
In August 2008, our Company's Board of Directors authorized a stock repurchase
program allowing it to purchase up to $3.0 million of its outstanding shares of
common stock in open market or privately negotiated transactions. During the
period from August 2008 through September 30, 2009, we repurchased approximately
364,000 shares at an average price of $2.47 per share. Total consideration for
the repurchased stock was approximately $898,000. From August 2008 through
November 10, 2009, we purchased approximately 368,000 shares of its common stock
for total cash consideration of $913,000 representing an average price of $2.48
per share.
At December 31, 2008, we had federal and state net operating loss
carry-forwards of approximately $20,000,000 and $7,000,000, respectively, that
expire through 2020 and an alternative minimum tax credit of approximately
$573,000 with no limitation on the carry-forward period.. Approximately,
$16,000,000 of federal net operating loss carry-forwards expire between
2010-2012. In addition, we receive a tax deduction when our employees exercise
their non-qualified stock options thereby increasing our deferred tax asset. We
record a valuation allowance to reduce our deferred tax asset when it is more
likely than not that a portion of the amount may not be realized. We estimate
our valuation allowance based on an estimated forecast of our future
profitability. Any significant changes in future profitability resulting from
variations in future revenues or expenses could affect the valuation allowance
on our deferred tax asset and operating results could be affected, accordingly.
As a result of decreased revenue and profitability due to the customer contract
delay for the MK 119 that is recorded under the percentage of completion method,
we were not in compliance with two of our financial covenant ratios as of June
30, 2009. In August 2009, our primary lender agreed to waive these covenant
defaults. The lender, in consideration of such waiver, assessed a waiver fee of
$10,000 and increased the interest rate on all term debt, including the TDL Term
Loan, TDL Shareholder Note and ICS Term Loan, and the Line of Credit equal to
the sum of 3.50% plus the one month LIBOR. In addition, we agreed to reduce our
Line of Credit from $3,000,000 to $2,500,000 until October 31, 2009, at which
time it will be further reduced to $2,000,000. Outstanding borrowings under the
Line of Credit were $1,181,000 at September 30, 2009.
In August 2008, our Board of Directors authorized a stock repurchase
program allowing us to purchase up to $3.0 million of our outstanding shares of
common stock in open market or privately negotiated transactions. During the
period from August 2008 through September 30, 2009, we repurchased approximately
364,000 shares at an average price of $2.47 per share. Total consideration for
the repurchased stock was approximately $898,000. From August through October
31, 2009, we purchased approximately 368,000 shares of our common stock for
total cash consideration of $913,000 representing an average price of $2.48 per
share.
ISSUER'S PURCHASE OF EQUITY SECURITIES:
(a) (b) (c) (d)
Total Number of Maximum Number(or
Total Shares(or Units) Approximate Dollar Value)
Number of Purchased as part of of Shares(or Units) that May
Shares (or Units) Average Price Paid Publicly Announced Yet be Purchased Under the
Period Purchased per Share(or Unit) Plans or Programs Plans or Programs
- - - - -
July 1- 31, 2009 5,545 $ 3.00 5,545 $ 2,354,000
August 1-31, 2009 60,584 $ 2.85 60,584 $ 2,181,000
September 1-30, 2009 22,646 $ 3.49 22,646 $ 2,102,000
- - - -
Total 88,775 $ 3.02 88,775 $ 2,102,000
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Orbit International Corp. has a market cap of $18.1 million; its shares were traded at around $3.94 with a P/E ratio of 16.4 and P/S ratio of 0.6. Orbit International Corp. had an annual average earning growth of 7.6% over the past 5 years.
Highlight of Business Operations:
Our backlog at September 30, 2009 was approximately $18,900,000 compared to$14,200,000 at September 30, 2008. Backlog was $12,400,000 at June 30, 2009.
The increase in backlog was due primarily to the receipt by ICS of its $4.1
million MK 119 contract and well as a $1.9 million RCU order received by the
Orbit Instrument Division. In addition, bookings for the Power Group's
commercial division, which had been down for the first half of the year,
improved significantly in the third quarter. There is no seasonality to the
Company's business. Our shipping schedules are generally determined by the
shipping schedules outlined in the purchase orders received from our customers.
Both of our operating segments are pursuing a significant amount of business
opportunities and our confidence level remains high with respect to receiving
many of the orders we are pursuing although timing is always an uncertainty.
Nevertheless, we remain very encouraged by our business environment and we
expect a continuation of improved operating results in the second half of 2009
as compared to the first half.
In August 2008, our Company's Board of Directors authorized a stock repurchase
program allowing it to purchase up to $3.0 million of its outstanding shares of
common stock in open market or privately negotiated transactions. During the
period from August 2008 through September 30, 2009, we repurchased approximately
364,000 shares at an average price of $2.47 per share. Total consideration for
the repurchased stock was approximately $898,000. From August 2008 through
November 10, 2009, we purchased approximately 368,000 shares of its common stock
for total cash consideration of $913,000 representing an average price of $2.48
per share.
At December 31, 2008, we had federal and state net operating loss
carry-forwards of approximately $20,000,000 and $7,000,000, respectively, that
expire through 2020 and an alternative minimum tax credit of approximately
$573,000 with no limitation on the carry-forward period.. Approximately,
$16,000,000 of federal net operating loss carry-forwards expire between
2010-2012. In addition, we receive a tax deduction when our employees exercise
their non-qualified stock options thereby increasing our deferred tax asset. We
record a valuation allowance to reduce our deferred tax asset when it is more
likely than not that a portion of the amount may not be realized. We estimate
our valuation allowance based on an estimated forecast of our future
profitability. Any significant changes in future profitability resulting from
variations in future revenues or expenses could affect the valuation allowance
on our deferred tax asset and operating results could be affected, accordingly.
As a result of decreased revenue and profitability due to the customer contract
delay for the MK 119 that is recorded under the percentage of completion method,
we were not in compliance with two of our financial covenant ratios as of June
30, 2009. In August 2009, our primary lender agreed to waive these covenant
defaults. The lender, in consideration of such waiver, assessed a waiver fee of
$10,000 and increased the interest rate on all term debt, including the TDL Term
Loan, TDL Shareholder Note and ICS Term Loan, and the Line of Credit equal to
the sum of 3.50% plus the one month LIBOR. In addition, we agreed to reduce our
Line of Credit from $3,000,000 to $2,500,000 until October 31, 2009, at which
time it will be further reduced to $2,000,000. Outstanding borrowings under the
Line of Credit were $1,181,000 at September 30, 2009.
In August 2008, our Board of Directors authorized a stock repurchase
program allowing us to purchase up to $3.0 million of our outstanding shares of
common stock in open market or privately negotiated transactions. During the
period from August 2008 through September 30, 2009, we repurchased approximately
364,000 shares at an average price of $2.47 per share. Total consideration for
the repurchased stock was approximately $898,000. From August through October
31, 2009, we purchased approximately 368,000 shares of our common stock for
total cash consideration of $913,000 representing an average price of $2.48 per
share.
ISSUER'S PURCHASE OF EQUITY SECURITIES:
(a) (b) (c) (d)
Total Number of Maximum Number(or
Total Shares(or Units) Approximate Dollar Value)
Number of Purchased as part of of Shares(or Units) that May
Shares (or Units) Average Price Paid Publicly Announced Yet be Purchased Under the
Period Purchased per Share(or Unit) Plans or Programs Plans or Programs
- - - - -
July 1- 31, 2009 5,545 $ 3.00 5,545 $ 2,354,000
August 1-31, 2009 60,584 $ 2.85 60,584 $ 2,181,000
September 1-30, 2009 22,646 $ 3.49 22,646 $ 2,102,000
- - - -
Total 88,775 $ 3.02 88,775 $ 2,102,000
Read the The complete Report
