Servotronics, Inc. Announces Second Quarter Results For The Period Ended June 30, 2020
ELMA, N.Y., Aug. 13, 2020 /PRNewswire/ -- Servotronics, Inc. (NYSE American – SVT) a designer and manufacturer of servo-control components and other advanced technology products announced today the results of its operations for the quarter ended June 30, 2020.
In the second quarter of 2020, Servotronics reported net income of $965,000 (or $0.41 per share Basic and $0.40 Diluted) compared to net income of $714,000 (or $0.31 per share Basic and $0.30 Diluted) for the comparable period ended June 30, 2019.
Revenues for the quarter were $13,504,000, approximately a 4.0% decrease from $14,067,000 for the same period in 2019. The decrease in revenue is the result of a decrease in shipments at the ATG partially offset by an increase in shipments and price/mix at the CPG.
Selling, general and administrative expenses decreased approximately $627,000 or 26.4% for the three-month period ended June 30, 2020 compared to the same period in 2019. As a percentage of revenue, these operating expenses improved to 12.9% compared to 16.9% for the same period in 2019.
"I want to recognize all of our employees for their tremendous efforts this quarter during these unprecedented and challenging times" said Kenneth D. Trbovich, CEO and Chairman of the Board. "We have delivered exceptional results in the first half of 2020 and finished the second quarter with a strong balance sheet. Although the U.S. economy may be in for an extended period ofCOVID related uncertainty, we remain confident in our ability to work through the near-term challenges as we make strides in our strategy and the long-term opportunities it can deliver."
The Company is composed of two groups – the ATG and the CPG. The ATG primarily designs, develops and manufactures servo controls and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, manufacturing equipment, etc.). The CPG designs and manufactures cutlery, bayonets, pocket knives, machetes and combat knives, survival, sporting, agricultural knives and other edged products for both commercial and government applications.
Certain paragraphs of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as those pertaining to the Company's planned growth efforts and expectation of new business and success in its entry into new product programs. Forward-looking statements involve numerous risks and uncertainties. The Company derives a material portion of its revenue from fixed price contracts with agencies of the U.S. Government or their prime contractors. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: uncertainties in today's global economy, including political risks, adverse changes in legal and regulatory environments, and difficulty in predicting defense appropriations, the introduction of new technologies and the impact of competitive products. the vitality of the commercial aviation industry and its ability to purchase new aircraft, the willingness and ability of the Company's customers to fund long-term purchase programs, and market demand and acceptance both for the Company's products and its customers' products which incorporate Company-made components, the Company's ability to accurately align capacity with demand, the availability of financing and changes in interest rates, the outcome of pending and potential litigation and the additional risks discussed in the Company's filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE American
SOURCE Servotronics, Inc.
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