Orbit International Corp. Reports 2024 Year End Results
Rhea-AI Summary
Orbit International Corp. (OTC PINK:ORBT) reported its financial results for 2024, showing a reduced net loss of $646,000 ($0.19 per share) compared to $1,147,000 ($0.34 per share) in 2023. The company's EBITDA improved to $159,000 in 2024 from a loss of $407,000 in 2023.
Key financial highlights include:
- Net sales increased to $29,898,000 from $27,556,000
- Gross margin improved to 33.3% from 31.7%
- Q4 2024 net sales were $8,708,000 vs $7,173,000 in Q4 2023
- Backlog decreased to $12.0 million from $17.4 million year-over-year
The company's performance was notably impacted by a non-cash $445,000 deferred tax expense. Operating results improved in the second half of 2024, driven by higher sales and improved gross profit at the Simulator Product Solutions (SPS) subsidiary and the Orbit Power Group (OPG). The company maintains access to a $4,000,000 line of credit, with $850,000 borrowed as of December 31, 2024.
Positive
- Net sales increased 8.5% to $29.9M in 2024 from $27.6M in 2023
- Gross margin improved to 33.3% from 31.7% year-over-year
- EBITDA turned positive to $159,000 from -$407,000 in prior year
- VPX power supplies bookings increased 91.5% in 2024
- Net loss reduced by 43.7% to $646,000 from $1.15M in 2023
Negative
- Backlog decreased 31% to $12.0M from $17.4M year-over-year
- Reported net loss of $646,000 in 2024
- Selling, general and administrative expenses increased by $699,000
- Book value per share declined to $5.34 from $5.54 at end of 2023
- Stock repurchase program remains suspended since May 2023
News Market Reaction
On the day this news was published, ORBT declined 2.53%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
2024 Net Loss of
2024 EBITDA, As Adjusted, was
Fourth Quarter 2024 Net Loss of
Fourth Quarter 2024 EBITDA, As Adjusted, was
Fourth Quarter and 2024 Financial Performance Adversely Affected by Non-Cash
Backlog at December 31, 2024 was
HAUPPAUGE, N.Y., March 13, 2025 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC PINK:ORBT) today announced results for the fourth quarter and the year ended December 31, 2024.
Fourth Quarter 2024 vs. Fourth Quarter 2023
- Net sales were
$8,708,000 , as compared to$7,173,000. - Gross margin was
34.6% , as compared to30.1% . - Net loss was
$252,000 ($0.08 loss per share), as compared to net loss of$339,000 ($0.10 loss per share). Current year net loss was adversely affected by a non-cash$445,000 ($0.13 loss per share) deferred tax expense. - Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liabilities and other non-current liability, and stock-based compensation (EBITDA, as adjusted) was
$383,000 ($0.11 per diluted share), as compared to a loss of$206,000 ($0.06 loss per share).
Full Year 2024 vs. Full Year 2023
- Net sales were
$29,898,000 as compared to$27,556,000. - Gross margin was
33.3% , as compared to31.7% . - Net loss was
$646,000 ($0.19 loss per share), as compared to a net loss of$1,147,000 ($0.34 loss per share). Current year net loss was adversely affected by a non-cash$445,000 ($0.13 loss per share) deferred tax expense. - Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liabilities and other non-current liability, and stock-based compensation (EBITDA, as adjusted) was
$159,000 ($0.05 per diluted share), as compared to a loss of$407,000 ($0.12 loss per share). - Backlog at December 31, 2024 was
$12.0 million compared to$17.4 million at December 31, 2023.
Mitchell Binder, President and CEO of Orbit International commented, “Our net loss for the twelve months ended December 31, 2024, was
Binder added, “Operating income during the second half of 2024 was positively affected by higher sales and improved gross profit at our Simulator Product Solutions LLC (“SPS”) subsidiary. The higher sales and improved gross profit resulted from significantly higher bookings at SPS in 2023. SPS is part of our Orbit Electronics Group (“OEG”). Operating income for the three months ended December 31, 2024 was positively affected by higher booking in 2024 at our Orbit Power Group (”OPG”).
Binder added, “Our current fourth quarter operating results were positively affected by the results from SPS and our OPG. Operating income at our Orbit Instrument division was approximately flat during the quarter. Our Orbit Instrument division has historically been our best performing operating unit with strong operating leverage. However, it has been adversely affected by contract delays and the pause in certain production contracts as our engineering team works with our customers for next generation enhancements. The Orbit Power Group (“OPG”), which makes up the remainder of our legacy business, recorded improved operating results during the fourth quarter in comparison to the prior year comparable period. The improved operating results of SPS during the quarter were attributable to higher sales and improved gross margins. In addition, general and administrative costs at SPS, in general, have stabilized, as we incurred significant infrastructure costs to support the increase in sales and bookings from 2023 as well as the increase in sales for 2024. At the time of the SPS acquisition in January 2022, we anticipated the need to invest in infrastructure and internal controls in order to bring SPS up to the standards of a public company. We believe that our cost structure at SPS is now aligned to support our growth.”
Mr. Binder added, “Our sales for the twelve months ended December 31, 2024, increased to
Mr. Binder further added, “Our gross margin for the twelve months ended December 31, 2024, increased to
Mr. Binder added, “Our improved operating results for the twelve months ended December 31, 2024, were adversely affected by higher selling, general and administrative expenses in the current period. For the twelve months ended December 31, 2024, compared to the prior comparable period, selling, general and administrative expenses increased by
Mr. Binder continued, “Backlog at December 31, 2024, was approximately
David Goldman, Chief Financial Officer, noted, “At December 31, 2024, our cash and cash equivalents aggregated approximately
Mr. Binder added, “Because our revenues are tied to delivery schedules specified in our contracts, it is often difficult to judge our performance on a quarterly basis. Our operating results for the year ended December 31, 2024 reflect an improvement from our weak operating results in the prior year, primarily due to an increase in SPS sales, gross profit and operating income (despite an increase in SPS infrastructure costs), as well as an increase in OPG sales, gross profit and operating income. However, despite the improvement from SPS and our OPG, our operating results were adversely impacted by lower sales from our Orbit Instrument division, which negatively impacted 2024 operating results. As previously mentioned, our Orbit Instrument division has historically been our most profitable operating unit with strong operating leverage. Furthermore, due to contract delays across all of our divisions in our OEG, we are entering 2025 with a lower backlog which, unfortunately, will adversely affect our financial performance in the first half of 2025. Bookings have improved in the first quarter of 2025. These orders will help delivery schedules in the second half of 2025 and into 2026. We continue to pursue many opportunities in the marketplace and barring unforeseen delays, expect an improvement in bookings for 2025.”
Mr. Binder concluded, “On May 16, 2023, our Board of Directors moved to suspend our existing stock repurchase program and, to date, has not yet determined to reinstate the program. Through May 15, 2023, we had purchased approximately 188,185 shares under the existing program. However, in December 2024, our Board of Directors approved the purchase of 25,000 shares from a former insider, in a private transaction.”
Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facilities in Hauppauge, NY and Carson, CA. Orbit’s Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources.
Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit’s operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.
Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT
David Goldman
Chief Financial Officer
631-435-8300
(See Accompanying Tables)
| Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 8,708 | $ | 7,173 | $ | 29,898 | $ | 27,556 | ||||||||
| Cost of sales | 5,695 | 5,016 | 19,945 | 18,830 | ||||||||||||
| Gross profit | 3,013 | 2,157 | 9,953 | 8,726 | ||||||||||||
| Selling general and administrative | 2,716 | 2,563 | 10,439 | 9,740 | ||||||||||||
| expenses | ||||||||||||||||
| Interest expense | 86 | 5 | 119 | 10 | ||||||||||||
| Other (income) expense, net | (3 | ) | (79 | ) | (436 | ) | 84 | |||||||||
| Income (loss) before income taxes | 214 | (332 | ) | (169 | ) | (1,108 | ) | |||||||||
| Income tax provision | 466 | 7 | 477 | 39 | ||||||||||||
| Net loss | $ | (252 | ) | $ | (339 | ) | $ | (646 | ) | $ | (1,147 | ) | ||||
| Basic loss per share | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.19 | ) | $ | (0.34 | ) | ||||
| Diluted loss per share | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.19 | ) | $ | (0.34 | ) | ||||
| Weighted average number of shares | ||||||||||||||||
| outstanding: | ||||||||||||||||
| Basic | 3,339 | 3,339 | 3,343 | 3,343 | ||||||||||||
| Diluted | 3,339 | 3,339 | 3,343 | 3,343 | ||||||||||||
| Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited) | ||||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| EBITDA (as adjusted) Reconciliation | ||||||||||||||||
| Net loss | $ | (252 | ) | $ | (339 | ) | $ | (646 | ) | $ | (1,147 | ) | ||||
| Income tax expense | 466 | 7 | 477 | 39 | ||||||||||||
| Depreciation and amortization | 79 | 146 | 582 | 510 | ||||||||||||
| Interest expense | 86 | 5 | 119 | 10 | ||||||||||||
| Fair value adj-contingent liabilities & other non-current liability | - | (25 | ) | (387 | ) | 204 | ||||||||||
| Stock-based compensation | 4 | - | 14 | (23 | ) | |||||||||||
| EBITDA (as adjusted) (1) | $ | 383 | $ | (206 | ) | $ | 159 | $ | (407 | ) | ||||||
| EBITDA (as adjusted) Per Diluted Share Reconciliation | ||||||||||||||||
| Net loss | $ | (0.08 | ) | $ | (0.10 | ) | $ | (0.19 | ) | $ | (0.34 | ) | ||||
| Income tax expense | 0.14 | - | 0.14 | 0.01 | ||||||||||||
| Depreciation and amortization | 0.02 | 0.05 | 0.17 | 0.15 | ||||||||||||
| Interest expense | 0.03 | - | 0.04 | - | ||||||||||||
| Fair value adj-contingent liabilities & other non-current liability | - | (0.01 | ) | (0.11 | ) | 0.06 | ||||||||||
| Stock-based compensation | - | - | - | - | ||||||||||||
| EBITDA (as adjusted), per diluted share (1) | $ | 0.11 | $ | (0.06 | ) | $ | 0.05 | $ | (0.12 | ) | ||||||
(1) The EBITDA (as adjusted) tables presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses EBITDA (as adjusted) to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA (as adjusted) is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity's profitability because it does not include costs and expenses for interest, depreciation and amortization, income taxes, fair value adjustment-contingent liabilities and other non-current liability and stock-based compensation. EBITDA (as adjusted) as presented herein may not be comparable to similarly named measures reported by other companies.
| Year Ended December 31, | ||||||||
| Reconciliation of EBITDA, as adjusted, to cash flows (used in) provided by operating activities (1) | 2024 | 2023 | ||||||
| EBITDA (as adjusted) | $ | 159 | $ | (407 | ) | |||
| Income tax expense | (32 | ) | (39 | ) | ||||
| Interest expense | (119 | ) | (10 | ) | ||||
| Gain on sale of fixed asset | - | (34 | ) | |||||
| Fair value adjustment-contingent liabilities and other non-current liability | 387 | (204 | ) | |||||
| Stock-based compensation | 29 | 71 | ||||||
| Net change in operating assets and liabilities | (425 | ) | (783 | ) | ||||
| Cash flows used in operating activities | $ | (1 | ) | $ | (1,406 | ) | ||
| Orbit International Corp. Consolidated Balance Sheets | ||||||
| December 31, 2024 | December 31, 2023 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 1,355,000 | $ | 1,265,000 | ||
| Accounts receivable, less allowance for credit losses | 3,935,000 | 3,648,000 | ||||
| Inventories | 8,884,000 | 10,034,000 | ||||
| Contract assets | 643,000 | 384,000 | ||||
| Other current assets | 428,000 | 445,000 | ||||
| Total current assets | 15,245,000 | 15,776,000 | ||||
| Property and equipment | 1,192,000 | 1,221,000 | ||||
| Right of use assets, operating leases | 2,297,000 | 2,722,000 | ||||
| Right of use assets, financing leases | 77,000 | - | ||||
| Goodwill | 3,515,000 | 3,515,000 | ||||
| Intangible assets, net | 2,322,000 | 2,564,000 | ||||
| Deferred tax asset | 100,000 | 545,000 | ||||
| Other assets | 53,000 | 53,000 | ||||
| Total assets | $ | 24,801,000 | $ | 26,396,000 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 878,000 | $ | 1,116,000 | ||
| Accrued expenses | 990,000 | 1,124,000 | ||||
| Dividend payable | - | 33,000 | ||||
| Notes payable | 99,000 | 55,000 | ||||
| Lease liabilities, finance leases | 38,000 | - | ||||
| Lease liabilities, operating leases | 717,000 | 618,000 | ||||
| Contingent liabilities | 1,362,000 | 565,000 | ||||
| Line of credit | 850,000 | - | ||||
| Customer advances | 296,000 | 662,000 | ||||
| Total current liabilities | 5,230,000 | 4,173,000 | ||||
| Notes payable, net of current portion | 83,000 | 92,000 | ||||
| Other non-current liability | - | 1,434,000 | ||||
| Lease liabilities, financing leases | 41,000 | - | ||||
| Lease liabilities, operating leases | 1,678,000 | 2,184,000 | ||||
| Total liabilities | 7,032,000 | 7,883,000 | ||||
| Stockholders’ Equity | ||||||
| Common stock | 351,000 | 353,000 | ||||
| Additional paid-in capital | 17,171,000 | 17,233,000 | ||||
| Treasury stock | (1,224,000 | ) | (1,224,000 | ) | ||
| Retained earnings | 1,471,000 | 2,151,000 | ||||
| Stockholders’ equity | 17,769,000 | 18,513,000 | ||||
| Total liabilities and stockholders’ equity | $ | 24,801,000 | $ | 26,396,000 | ||
FAQ
What was Orbit International's (ORBT) net loss for full year 2024?
How much did ORBT's backlog decrease in 2024?
What was ORBT's revenue growth in 2024?
How much did ORBT's gross margin improve in 2024?
What was ORBT's EBITDA performance in 2024?
