CVD Revenue Rose 20.1% to Record-breaking Levels
CENTRAL ISLIP, N.Y., (Business Wire) – November 16, 2015 – CVD Equipment Corporation (NASDAQ: CVV) announced that it has achieved record-breaking revenue for both the three and nine month periods ended September 30, 2015.
CVD’s revenue rose 20.1% to a record-breaking level of $10.6 million for the current quarter ending September 30, 2015 compared to $8.9 million in revenue for the quarter ended September 30, 2014. For the current nine month period, CVD’s revenue rose 59.0% to a record-breaking $30.8 million compared to $19.4 million in revenue for the nine month period ended September 30, 2014. CVD also reported net earnings of $0.8 million or $0.13 per basic and diluted share and $2.8 million or $0.46 per share basic and $0.45 per share diluted for those respective periods compared to earnings of $0.9 million or $0.14 per share basic and diluted and $0.8 million or $0.13 per share basic and diluted for the three and nine months ended September 30, 2014.
The Company incurred legal fees and settlement costs of $1.2 million during the quarter ended September 30, 2015 and $1.6 million during the nine months ended September 30, 2015 related to the settlement of an outstanding claim. Without this non-recurring charge, CVD would have achieved net income of $2.0 million or $0.32 per diluted share for the three months ended September 30, 2015 and $4.4 million or $0.69 per diluted share for the nine months ended September 30, 2015
New orders for the quarter were $2.9 million, as a result, the Company’s backlog decreased to $11.5 million at September 30, 2015, a decrease of 5.0% compared to the $12.1 million backlog at September 30, 2014. The Company received $21.2 million in new orders during the nine months ended September 30, 2015 compared to $27.5 million in new orders received during the nine months ended September 30, 2014, a decrease of 22.9%. The timing of the receipt of an order is subject to various factors, most of which are not under our control. As a result, our order levels from period to period, tend to be uneven. Order levels attained in one period are not necessarily indicative of order levels that will be attained in future periods. Although timing for completion of backlog varies depending on the product mix and can be longer.
The Company continues to maintain a strong cash position and a healthy working capital ratio.
Leonard Rosenbaum, President and Chief Executive Officer stated: “A significant portion of our orders this year came from existing customers who rely on CVD to further expand their production capacity with both repeat and new innovative equipment. We continue to manufacture, deliver and start-up these large orders, especially orders for the initial systems with new technology that our customers need to execute on their significant production plans. We expect to continue to be a key supplier in that expansion strategy over the coming years.
“As new technologies develop we use our talents to design and manufacture the state of the art process equipment that is needed to prove these concepts. We work with our customers from the research state, to launching the process in production and in the capacity ramp to full production. In doing this, we have made significant advances in custom chemical deposition equipment for medical, aerospace, nanomaterials and other applications. As we work with our customers in research and equipment development we continue building the technology base that fuels our growth.”
CVD Equipment Corporation and Subsidiaries
Selected Other Data (Unaudited)
For the Three and Nine Months Ended September 30, 2015
(in thousands except per share information)
Reconciliation of GAAP to Non-GAAP Financial Data
(in thousands, except per share data)
(Unaudited)
[table style=”1″]
| Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Revenue, as reported | $ | 10,646 | 8,867 | $ | 30,772 | 19,360 | ||||||
| Gross profit, as reported | 4,125 | 3,309 | 12,042 | 7,328 | ||||||||
| Operating expenses, as reported | 3,255 | 2,097 | 8,448 | 6,007 | ||||||||
| Adjustments | ||||||||||||
| Nonrecurring loss and legal fees on litigation settlement | 1,160 | 1,550 | ||||||||||
| Non-GAAP operating expenses | 2,095 | 2,097 | 6,898 | 6,007 | ||||||||
| Non-GAAP operating income | 2,030 | 1,212 | 5,144 | 1,321 | ||||||||
| Net income as reported | 811 | 858 | 2,814 | 792 | ||||||||
| Adjustments, net of tax | ||||||||||||
| Nonrecurring loss and legal fees on litigation settlement | 1,160 | 1,550 | ||||||||||
| Non-GAAP income, net of tax | 1,971 | 858 | 4,364 | 792 | ||||||||
| Diluted earnings per share, as reported | $0.13 | $0.14 | $0.45 | $0.13 | ||||||||
| Add back: | ||||||||||||
| Per share impact of Non-GAAP adjustment, net of tax | 0.19 | 0.24 | ||||||||||
| Non-GAAP per share earnings | 0.32 | 0.14 | 0.69 | 0.13 | ||||||||
[/table]
CVD Equipment Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
[table style=”1″]
| September 30, 2015 | December 31, 2014 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $13,269 | $11,967 | ||
| Accounts Receivable, net | 5,054 | 6,463 | ||
| Costs and estimated earnings in excess of | ||||
| billings on contracts in progress | 2,512 | 2,499 | ||
| Inventories | 3,647 | 4,842 | ||
| Restricted cash | 200 | 200 | ||
| Deferred Taxes | 2,099 | 2,888 | ||
| Other current assets | 104 | 195 | ||
| Total current assets | 26,885 | 29,053 | ||
| Property, plant and equipment, net | 14,975 | 15,415 | ||
| Deferred taxes | 1,360 | 750 | ||
| Restricted cash | — | 200 | ||
| Other assets | 95 | 83 | ||
| Intangible assets | 60 | 56 | ||
| Total assets | $43,375 | $45,557 | ||
| Liabilities and stockholders’ equity | ||||
| Current liabilities: | ||||
| Accounts payable | $1,838 | $1,683 | ||
| Accrued expenses and other current liabilities | 3,883 | 3,297 | ||
| Current portion of long-term debt | 685 | 720 | ||
| Billings in excess of costs and estimated | ||||
| earnings on contracts in progress | 753 | 1,328 | ||
| Deferred revenue | 235 | 489 | ||
| Accrued litigation settlement | — | 4,925 | ||
| Total current liabilities | 7,394 | 12,442 | ||
| Long-term debt | 3,341 | 3,846 | ||
| Total liabilities | 10,735 | 16,288 | ||
| Total stockholders’ equity | 32,640 | 29,269 | ||
| Total liabilities and stockholders’ equity | $43,375 | $45,557 |
[/table]
Earnings release should be read in conjunction with Company’s Annual Report on Form 10-K for fiscal year ended December 31, 2014
About CVD Equipment Corporation
CVD Equipment Corporation (NASDAQ: CVV) designs, develops, and manufactures a broad range of chemical vapor deposition, gas control, and other state-of-the-art equipment and process solutions used to develop and manufacture materials and coatings for research and industrial applications. This equipment is used by our customers to research, design, and manufacture these materials or coatings for aerospace engine components, medical implants, semiconductors, solar cells, smart glass, carbon nanotubes, nanowires, LEDs, MEMS, and other applications. Through our application laboratory, we provide process development support and process startup assistance with the focus on enabling tomorrow’s technologies™.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by CVD Equipment Corporation) contains statements that are forward-looking. All statements other than statements of historical fact are hereby identified as “forward-looking statements, “as such term is defined in Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward looking information involves a number of known and unknown risks and uncertainties that could cause actual results to differ materially from those discussed or anticipated by management. Potential risks and uncertainties include, among other factors, conditions, success of CVD Equipment Corporation’s growth and sales strategies, the possibility of customer changes in delivery schedules, cancellation of orders, potential delays in product shipments, delays in obtaining inventory parts from suppliers and failure to satisfy customer acceptance requirements.
For further information about CVD Equipment Corporation please contact Karen Hamberg Phone: (631) 981-7081, Fax: (631) 981-7095 or Email: investorrelations@cvdequipment.pairsite.com or sales@cvdequipment.pairsite.com