Sutron Corporation Reports Third Quarter 2012 Results

Sutron Corporation Reports Third Quarter 2012 Results 
STERLING, VA -- (Marketwire) -- 11/14/12 --  Sutron Corporation
(NASDAQ: STRN), a global leader in hydrological, meteorological,
oceanic, and aviation monitoring products, systems, software and
services, is pleased to announced results for the third quarter ended
September 30, 2012. 


 
--  Q3 Net Revenue of $7.3M, Up 34% From Prior Year's Quarter
    
    
--  Q3 Net Income of $625,395 Up 16% From Prior Year's Quarter
    
    
--  Q3 EBITDA of $1M, Up 10% From Prior Year's Quarter
    
    
--  Bookings of $20M Through First Nine Months Exceed Total Prior Year
    Bookings by 13%

  
Raul McQuivey, Chairman and Chief Executive Officer, stated, "Sutron
executed on many key objectives in the third quarter, including:
delivering $7.3 million of revenue, up 34% from the prior year
quarter, and net income of $625,395, up 16% from the prior year
quarter; generating over $1 million of EBITDA, up 10% from the prior
year quarter; recording over $6.3 million of bookings, that brought
the total for the first nine months of 2012 to over $20 million,
already exceeding total bookings for the prior full year; and
implementing sales and marketing synergies with our new MeteoStar
Division." 
"Subsequent to the close of the third quarter, we announced an
additional $4 million of bookings involving projects in Afghanistan
that continues a strong trajectory in booking activity", McQuivey
added. "While fluctuations in bookings and revenue are not uncommon
in our business which is highly project driven and subject to
governmental approval and funding processes, based on increased
backlog and planned shipments, we anticipate strong fourth quarter
revenues. We continue to be encouraged regarding our opportunities as
we experience significant demand -- both domestically and
internationally -- for our broadened portfolio of products and
systems. We are in a favorable position to support expanded
activities as our balance sheet remains strong with no debt and
approximately $7.4 million of cash on hand -- an increase of $.8
million from the prior quarter." 
Consolidated Results 
Continuing Sutron operations, including the first full quarter of the
MeteoStar Divisio
n, are presented below.  
Net Revenue was $7.3 million, an increase of 34% from $5.4 million in
the third quarter of 2011. The primary drivers of the revenue
increase were organic growth ($.7 million) and the revenue generated
from the MeteoStar Division ($1.2 million). 
Cost of sales was $4.1 million, or 56% of net revenue, compared to
$3.1 million, or 57% of net revenue in the third quarter of 2011.  
Gross Profit was $3.2 million, or 44% of net revenue, as compared to
$2.3 million, or 43% of net revenue, in the third quarter of 2011.
Higher margin MeteoStar Division and Integrated Systems products were
partially offset by lower margin HydroMet standard products in this
year's third quarter. 
Operating Expenses were $2.3 million as compared to $1.5 million in
the third quarter of 2011. The increase was primarily due to $ .9
million in operating costs incurred by the new MeteoStar Division in
the third quarter of 2012.  
Net Income was $625,395, or $.13 per basic and diluted common share,
compared to net income of $541,000, or $.12 per basic and diluted
share, in the third quarter of 2011. The number of shares outstanding
used to calculate basic and diluted earnings per common share in the
third quarter of 2012 were 4.7 and 5 million, respectively, compared
to 4.6 and 4.9 million, respectively, for basic and diluted earnings
per common share in the third quarter of 2011.  
Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA") was $1 million as compared to EBITDA of $.9 million in the
third quarter of 2011. The growth in EBITDA is primarily attributable
to the growth in net revenue, partially offset by an increase in
operating expenses. 
Balance Sheet, Liquidity and Capital Resources 
Sutron ended the third quarter 2012 with $7.4 million in cash and
cash equivalents, up from $6.6 million at June 30, 2012. Cash from
operating activities was generated in the third quarter of 2012 in
the amount of $468,472 as compared to cash used by operating
activities in the third quarter of 2011 in the amount of $335,420. 
Capital expenditures were $63,735 in the third quarter 2012 compared
to $16,242 in the third quarter 2011. The increase is primarily due
to the purchase of additional equipment. 
Free Cash Flow in the third quarter 2012 was $404,783 compared to
negative free cash flow of $351,662 in the third quarter 2011. Sutron
defines Free Cash Flow as net cash provided or used by operating
activities less cash used in the purchase of property and equipment.  
ABOUT SUTRON CORPORATION 
Sutron Corporation, headquartered in Sterling, Virginia, is a project
driven business. Our quarterly results may fluctuate substantially
based upon contract awards that are difficult to project in terms of
timing and may be delayed due to differing time frames in securing
government approvals and funding. We provide hydrological,
meteorological, oceanic and aviation real-time data collection
products, systems, software and services to a diversified customer
base of federal, state, local and foreign governments, engineering
companies, universities and hydropower companies. Over 60,000 Sutron
stations have been installed worldwide. We manufacture our
dataloggers, satellite transmitters and sensors. Our product and
systems are designed to offer commonality of components and uniform
interfaces in order to build modular, open, distributed systems that
provide excellent performance regardless of the number of sensors or
field stations.  
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS 
The statements in this press release that relate to future plans,
events or performance are "forward-looking statements" within the
meaning of the Private Securities Litigation Act of 1995.
Forward-looking statements include without limitation any statements
regarding our expected future financial position, results of
operations, cash flows, EBITDA, financing plans, business strategy,
bookings, products and services, competitive positions, growth
opportunities, plans and objectives of management for future
operations, as well as statements that include words such as
"anticipate," "if," "believe," "plan," "estimate," "expect,"
"intend," "may," "should" and other similar expressions are
forward-looking statements. All forward-looking statements involve
risks, uncertainties and contingencies which may cause actual
results, performance, or achievements to differ materially from
anticipated results, performance, or achievements. We are under no
obligation to update or alter our forward-looking statements, whether
as a result of new information, future events or otherwise. 


 
                                                                            
                    SUTRON CORPORATION FINANCIAL SUMMARY                    
                              FINANCIAL SUMMARY                             
                                                                            
                                                         (Unaudited)        
                                                     For the Three Months   
                                                     Ended September 30,    
HIGHLIGHTS OF OPERATING RESULTS                       2012          2011    
                  
                               ------------- -------------
                                                                            
Revenues                                         $   7,278,999 $   5,415,230
Cost of sales                                        4,080,121     3,098,989
                                                 ------------- -------------
Gross profit                                         3,198,878     2,316,241
Operating expenses                                   2,276,711     1,489,511
                                                 ------------- -------------
Operating income                                       922,167       826,730
Interest and other income                               17,228        21,270
                                                 ------------- -------------
Income before income taxes                             939,395       848,000
Income tax expense (benefit)                           314,000       307,000
                                                 ------------- -------------
Net income                                       $     625,395 $     541,000
                                                 ============= =============
PER SHARE AMOUNTS:                                                          
Basic income per share                           $        0.13 $        0.12
                                                 ============= =============
Diluted income per share                         $        0.12 $        0.11
                                                 ============= =============
                                                                            
                                                                            
                                                         (Unaudited)        
                                                     For the Nine Months    
                                                     Ended September 30,    
HIGHLIGHTS OF OPERATING RESULTS                       2012          2011    
                                                 ------------- -------------
                                                                            
Revenues                                         $  17,820,348 $  14,144,357
Cost of sales                                       10,418,376     8,599,405
                                                 ------------- -------------
Gross profit                                         7,401,972     5,544,952
Operating expenses                                   5,809,973     4,336,984
                                                 ------------- -------------
Operating income                                     1,591,999     1,207,968
Interest and other income                               43,957        64,237
                                                 ------------- -------------
Income before income taxes                           1,635,956     1,272,205
Income tax expense (benefit)                           535,000       451,000
                                                 ------------- -------------
Net income                                       $   1,100,956 $     821,205
                                                 ============= =============
PER SHARE AMOUNTS:                                                          
Basic income per share                           $        0.23 $        0.18
                                                 ============= =============
Diluted income per share                         $        0.22 $        0.17
                                                 ============= =============
                                                                            
                                                                            
                               Balance Sheets                               
                                                                            
                                                (Unaudited)     (Audited)   
                                               September 30,   December 31, 
                                                    2012           2011     
                                               -------------  ------------- 
                                                                            
ASSETS                                                                      
Current Assets:                                                             
  Cash and cash equivalents                    $   5,497,568  $   8,737,543 
  Restricted cash and cash equivalents               953,648        760,037 
  Certificates of deposit                            927,194        924,294 
  Accounts receivable, net                         7,004,346      6,754,434 
  Inventory                                        4,155,544      3,520,530 
  Prepaid items and other assets                     395,011        322,369 
  Income taxes receivable                            310,816        383,943 
  Deferred income taxes                              615,000        481,000 
                                               -------------  ------------- 
    Total Current Assets                          19,859,127     21,884,150 
                                                                            
Property and Equipment, Net                        1,721,008      1,524,880 
Other Assets                                                                
  Goodwill                                         4,628,435        570,150 
  Other Assets                                        96,675        103,591 
                                               -------------  ------------- 
    Total Assets                               $  26,305,245  $  24,082,771 
                                               =============  ============= 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Current Liabilities:                                                        
  Accounts payable                             $   1,056,909  $     799,007 
  Accrued payroll                                    176,442        337,563 
  Other accrued expenses                           1,641,508      1,573,409 
  Billings in excess of costs and estimated                                 
   earnings                                          711,013        201,015 
                                               -------------  ------------- 
    Total Current Liabilities                      3,585,872      2,910,994 
Long-Term Liabilities                                                       
  Deferred rent                                      990,986      1,127,860 
  Deferred income taxes                               76,000         69,000 
                                               -------------  ------------- 
    Total Long-term Liabilities                    1,066,986      1,196,860 
                                               -------------  ------------- 
    Total Liabilities                              4,652,858      4,107,854 
                                               -------------  ------------- 
Stockholders' Equity                                                        
  Common stock, 12,000,000 shares authorized;     
                          
   4,879,632 and 4,704,632 issued and                                       
   outstanding                                        48,797         47,047 
  Additional paid-in capital                       4,757,377      4,173,828 
  Retained earnings                               17,031,507     15,930,551 
  Accumulated other comprehensive loss              (185,294)      (176,509)
                                               -------------  ------------- 
    Total Stockholders' Equity                    21,652,387     19,974,917 
                                               -------------  ------------- 
    Total Liabilities and Stockholders' Equity $  26,305,245  $  24,082,771 
                                               =============  ============= 

  
Contact: 
Sid Hooper
(703)406-2800
shooper@sutron.com 
 
 
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