Backlog Increased 9.5% Year-over-Year
MILTON, NY, May 28, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire – Sono-Tek Corporation (OTCQX: SOTK), the leading developer and manufacturer of ultrasonic coating systems, today reported financial results for its fourth quarter and fiscal year 2021, ended February 28, 2021 (“fiscal 2021”). Fiscal 2021 Highlights($ in thousands) | Change | |||||||||||||
FY 2021 | FY 2020 | $ | % | |||||||||||
Net Sales | $ | 14,833 | $ | 15,355 | ($522 | ) | (3 | %) | ||||||
Gross Profit | $ | 6,997 | $ | 7,313 | (316 | ) | (4 | %) | ||||||
Gross Margin | 47.2 | % | 47.6 | % | ||||||||||
Operating Income | $ | 1,340 | $ | 1,115 | 225 | 20 | % | |||||||
Operating Margin | 9.0 | % | 7.3 | % | ||||||||||
Net Income | $ | 1,121 | $ | 1,107 | $ | 14 | 1 | % | ||||||
Net Margin | 7.6 | % | 7.2 | % | ||||||||||
($ in thousands) | Change | |||||||||||||
FY 2021 | FY 2020 | $ | % | |||||||||||
Net Sales | $ | 4,097 | $ | 5,514 | ($1,417 | ) | (26 | %) | ||||||
Gross Profit | $ | 1,885 | $ | 2,665 | (780 | ) | (29 | %) | ||||||
Gross Margin | 46.0 | % | 48.3 | % | ||||||||||
Operating Income | $ | 508 | $ | 749 | (241 | ) | (32 | %) | ||||||
Operating Margin | 12 | % | 14 | % | ||||||||||
Net Income | $ | 455 | $ | 688 | ($233 | ) | (34 | %) | ||||||
Net Margin | 11.1 | % | 12.5 | % | ||||||||||
Cash generated by operating activities was $725,000 in fiscal 2021, compared with generating $3,254,000 in fiscal 2020. Net capital expenditures in fiscal 2021 were $244,000 compared with $722,000 in fiscal 2020.
At February 28, 2021, the Company had total debt of $1,002,000, representing the proceeds from a Paycheck Protection Program Loan received in fiscal 2021. This loan was forgiven in its entirety in April 2021.
In fiscal 2021, the Company paid off the existing mortgage related to the industrial park where the Company’s operations are located. The total repayment was $722,000.
Sono-Tek has a revolving credit line of $1,500,000 and a $750,000 equipment purchase facility, both of which had no outstanding borrowings at year-end.
About Sono-Tek Sono-Tek Corporation is the leading developer and manufacturer of ultrasonic coating systems for applying precise, thin film coatings to protect, strengthen or smooth surfaces on parts and components for the microelectronics/electronics, alternative energy, medical and industrial markets, including specialized glass applications in construction and automotive. The Company’s solutions are environmentally-friendly, efficient and highly reliable and enable dramatic reductions in overspray, savings in raw material, water and energy usage and provide improved process repeatability, transfer efficiency, high uniformity and reduced emissions. Sono-Tek’s growth strategy is focused on leveraging its innovative technologies, proprietary know-how, unique talent and experience, and global reach to further develop microscopic coating technologies that enable better outcomes for its customers’ products and processes. For further information, visit www.sono-tek.com. Safe Harbor Statement We discuss expectations regarding our future performance, such as our business outlook, in our annual and quarterly reports, press releases, and other written and oral statements. These “forward-looking statements” are based on currently available competitive, financial and economic data and our operating plans. They are inherently uncertain, and investors must recognize that events could turn out to be significantly different from our expectations. These factors include, among other considerations, general economic and business conditions; political, regulatory, tax, competitive and technological developments affecting our operations or the demand for our products; the duration and scope of the COVID-19 pandemic; the extent and duration of the pandemic’s adverse effect on economic and social activity, consumer confidence, discretionary spending and preferences, labor and healthcare costs, and unemployment rates, any of which may reduce demand for some of our products and impair the ability of those with whom we do business to satisfy their obligations to us; our ability to sell and provide our services and products, including as a result of continued pandemic related travel restrictions, mandatory business closures, and stay-at home or similar orders; any temporary reduction in our workforce, closures of our offices and facilities and our ability to adequately staff and maintain our operations resulting from the pandemic; the ability of our customers and suppliers to continue their operations as result of the pandemic, which could result in terminations of contracts, losses of revenue, and further adverse effects to our supply chain; maintenance of increased order backlog, including effects of any COVID-19 related cancellations; the imposition of tariffs; timely development and market acceptance of new products and continued customer validation of our coating technologies; adequacy of financing; capacity additions, the ability to enforce patents; maintenance of operating leverage; consummation of order proposals; completion of large orders on schedule and on budget; continued sales growth in the specialty glass and portable electronics markets; successful transition from primarily selling ultrasonic nozzles and components to a more complex business providing complete machine solutions and higher value subsystems; and realization of increased annual revenues as forecasted. We refer you to documents that the company files with the Securities and Exchange Commission, which includes Form 10-K and Form 10-Qs containing additional important information. For more information, contact: Stephen Bagley Chief Financial Officer Sono-Tek Corporation info@sono-tek.comSONO-TEK CORPORATION CONSOLIDATED STATEMENTS OF INCOME
Fiscal Year Ended | ||||||||
February 28, 2021 | February 29, 2020 | |||||||
Net Sales | $14,832,877 | $15,354,619 | ||||||
Cost of Goods Sold | 7,835,837 | 8,041,378 | ||||||
Gross Profit | 6,997,040 | 7,313,241 | ||||||
Operating Expenses | ||||||||
Research and product development | 1,644,598 | 1,427,543 | ||||||
Marketing and selling | 2,789,880 | 3,403,133 | ||||||
General and administrative | 1,222,101 | 1,367,073 | ||||||
Total Operating Expenses | 5,656,579 | 6,197,749 | ||||||
Operating Income | 1,340,461 | 1,115,492 | ||||||
Other Income (Expense): | ||||||||
Interest Expense | (39,843 | ) | (33,038 | ) | ||||
Interest and Dividend Income | 22,558 | 101,592 | ||||||
Other Income | 24,691 | 29,401 | ||||||
Income before Income Taxes | 1,347,867 | 1,213,447 | ||||||
Income Tax Expense | 227,225 | 106,005 | ||||||
Net Income | $ | 1,120,642 | $ | 1,107,442 | ||||
Basic Earnings Per Share | $ | .07 | $ | .07 | ||||
Diluted Earnings Per Share | $ | .07 | $ | .07 | ||||
Weighted Average Shares – Basic | 15,428,411 | 15,302,367 | ||||||
Weighted Average Shares – Diluted | 15,672,253 | 15,359,088 |
SONO-TEK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWSFiscal Year Ended | ||||||||
February 28, 2021 | February 29, 2020 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Income | $ | 1,120,642 | $ | 1,107,442 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 463,076 | 406,731 | ||||||
Stock based compensation expense | 47,633 | 90,305 | ||||||
Bad debt expense | - | 25,000 | ||||||
Inventory reserve | 91,000 | (77,098 | ) | |||||
Deferred tax expense | (129,723 | ) | 36,707 | |||||
(Increase) Decrease in: | ||||||||
Accounts receivable | (828,100 | ) | 443,190 | |||||
Inventories | (305,790 | ) | (646,777 | ) | ||||
Prepaid expenses and other assets | 2,382 | 241,307 | ||||||
(Decrease) Increase in: | ||||||||
Accounts payable and accrued expenses | 763,269 | 1,063,730 | ||||||
Customer deposits | (482,149 | ) | 499,132 | |||||
Income taxes payable | (17,054 | ) | 64,349 | |||||
Net Cash Provided by Operating Activities | 725,186 | 3,254,018 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of equipment, furnishings and leasehold improvements | (344,353 | ) | (722,241 | ) | ||||
Patent costs paid | (6,000 | ) | — | |||||
Capital expenditure grant proceeds | 100,000 | — | ||||||
Sale (purchase) of marketable securities, net | (344,230) | (1,853,534 | ) | |||||
Net Cash Provided By (Used In) Investing Activities | (594,583) | (2,575,775 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from note payable - bank | 1,001,640 | — | ||||||
Repayment of long-term debt | (707,716 | ) | (162,815 | ) | ||||
Net Cash Provided By (Used In) Financing Activities | 293,924 | (162,815 | ) | |||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | 424,527 | 515,428 | ||||||
CASH AND CASH EQUIVALENTS: | ||||||||
Beginning of year | 3,659,551 | 3,144,123 | ||||||
End of year | $ | 4,084,078 | $ | 3,659,551 | ||||
Supplemental Cash Flow Disclosure: | ||||||||
Interest Paid | $ | 39,843 | $ | 33,038 | ||||
Income Taxes Paid | $ | 374,004 | $ | 4,948 |
See accompanying notes to consolidated financial statements.