Orbit International Corp. (ORBT, Financial) filed Quarterly Report for the period ended 2010-06-30.
Orbit International Corp. has a market cap of $14.36 million; its shares were traded at around $3.1 with and P/S ratio of 0.54.
approximately $573,000 with no limitation on the carry-forward period and
Federal and state net operating loss carry-forwards of approximately $20,000,000
and $7,000,000, respectively, that expire through 2020. 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 its 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 its deferred tax asset and operating results could be affected, accordingly.
Net income $ 141,000 $ 6,000
Interest expense 54,000 42,000
Income tax expense 17,000 27,000
Depreciation and amortization 72,000 181,000
- -
EBITDA $ 284,000 $ 256,000
= =
Net loss $(506,000) $(347,000)
Interest expense 111,000 88,000
Income tax expense 21,000 36,000
Depreciation and amortization 225,000 360,000
- -
EBITDA $(149,000) $ 137,000
= =
In April 2005, we entered into a five-year $5,000,000 term loan agreement
to finance the acquisition of TDL and its manufacturing affiliate ("TDL Term
Loan"). In December 2007, we entered into a five-year $4,500,000 term loan
agreement to finance the acquisition of ICS ("ICS Term Loan"). Principal
payments under the two term loan facilities were approximately $113,000 per
month. In December 2007, we also amended an existing $3,000,000 line of credit
facility with a commercial lender secured by accounts receivable, inventory and
property and equipment. In connection with the ICS Term Loan entered into in
December 2007, the interest rates on both term loan facilities and the line of
credit facility were amended to equal a certain percentage plus the one month
LIBOR (0.35% at June 30, 2010) depending on a matrix related to a certain
financial covenant. The line of credit facility was to continue from year to
year unless sooner terminated for an event of default including non-compliance
with certain financial covenants.
In April 2005, we entered into a five year $2,000,000 promissory note with the
selling shareholders of TDL ("TDL Shareholder Note") at an interest rate of
prime plus 2.00% (3.25% at June 30, 2010). Principal payments of $100,000 were
made on a quarterly basis along with accrued interest. In June 2007, we
refinanced the $1,050,000 balance due on the TDL Shareholder Note with our
primary commercial lender. Under the terms of the new term loan entered into
with our primary commercial lender ("TDL Refinanced Shareholder Loan"), monthly
payments of $35,000 were made over a thirty-month period (through January 2010)
along with accrued interest pursuant to the interest terms described below. The
TDL Refinanced Shareholder Loan was paid off in January 2010. 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
Refinanced Shareholder Loan 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 was further reduced to $2,000,000.
(a) (b) (c) (d)
Period Total Average Price Paid Total Number of Shares(or Units) Maximum Number(or
Number of per Share(or Unit) Purchased as part of Publicly Approximate Dollar Value)
Shares(or Announced Plans or Programs of Shares(or Units) that May
Units) Yet Be Purchased Under the
Purchased Plans or Programs
- - - -
April 1- 30, 2010 - - - $ 2,085,000
May 1-31, 2010 - - - $ 2,085,000
June 1-30, 2010 - - - $ 2,085,000
- - - -
Total - - - $ 2,085,000
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Orbit International Corp. has a market cap of $14.36 million; its shares were traded at around $3.1 with and P/S ratio of 0.54.
Highlight of Business Operations:
At December 31, 2009, we had an alternative minimum tax credit ofapproximately $573,000 with no limitation on the carry-forward period and
Federal and state net operating loss carry-forwards of approximately $20,000,000
and $7,000,000, respectively, that expire through 2020. 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 its 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 its deferred tax asset and operating results could be affected, accordingly.
Net income $ 141,000 $ 6,000
Interest expense 54,000 42,000
Income tax expense 17,000 27,000
Depreciation and amortization 72,000 181,000
- -
EBITDA $ 284,000 $ 256,000
= =
Net loss $(506,000) $(347,000)
Interest expense 111,000 88,000
Income tax expense 21,000 36,000
Depreciation and amortization 225,000 360,000
- -
EBITDA $(149,000) $ 137,000
= =
In April 2005, we entered into a five-year $5,000,000 term loan agreement
to finance the acquisition of TDL and its manufacturing affiliate ("TDL Term
Loan"). In December 2007, we entered into a five-year $4,500,000 term loan
agreement to finance the acquisition of ICS ("ICS Term Loan"). Principal
payments under the two term loan facilities were approximately $113,000 per
month. In December 2007, we also amended an existing $3,000,000 line of credit
facility with a commercial lender secured by accounts receivable, inventory and
property and equipment. In connection with the ICS Term Loan entered into in
December 2007, the interest rates on both term loan facilities and the line of
credit facility were amended to equal a certain percentage plus the one month
LIBOR (0.35% at June 30, 2010) depending on a matrix related to a certain
financial covenant. The line of credit facility was to continue from year to
year unless sooner terminated for an event of default including non-compliance
with certain financial covenants.
In April 2005, we entered into a five year $2,000,000 promissory note with the
selling shareholders of TDL ("TDL Shareholder Note") at an interest rate of
prime plus 2.00% (3.25% at June 30, 2010). Principal payments of $100,000 were
made on a quarterly basis along with accrued interest. In June 2007, we
refinanced the $1,050,000 balance due on the TDL Shareholder Note with our
primary commercial lender. Under the terms of the new term loan entered into
with our primary commercial lender ("TDL Refinanced Shareholder Loan"), monthly
payments of $35,000 were made over a thirty-month period (through January 2010)
along with accrued interest pursuant to the interest terms described below. The
TDL Refinanced Shareholder Loan was paid off in January 2010. 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
Refinanced Shareholder Loan 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 was further reduced to $2,000,000.
(a) (b) (c) (d)
Period Total Average Price Paid Total Number of Shares(or Units) Maximum Number(or
Number of per Share(or Unit) Purchased as part of Publicly Approximate Dollar Value)
Shares(or Announced Plans or Programs of Shares(or Units) that May
Units) Yet Be Purchased Under the
Purchased Plans or Programs
- - - -
April 1- 30, 2010 - - - $ 2,085,000
May 1-31, 2010 - - - $ 2,085,000
June 1-30, 2010 - - - $ 2,085,000
- - - -
Total - - - $ 2,085,000
Read the The complete Report
