Optex Systems Holdings, Inc. Releases 2013 Results

Optex Systems Holdings, Inc. Releases 2013 Results 
RICHARDSON, TX  -- (Marketwired) -- 12/19/13 --  Optex Systems
Holdings, Inc. (OTCQB: OPXS), a leading manufacturer of optical
sighting systems and assemblies primarily for Department of Defense
applications, reported operating results for the year ended September
29, 2013. 
Revenues for the year ended September 29, 2013 were $17.1 million as
compared to revenues during the same period one year ago of $14.3
million, an increase $2.8 million or 19.6%. The increased revenue is
primarily due to the production ramp up of the $8 million M36 Digital
Day Night sighting system program awarded in fiscal year 2012,
increased plastic periscope business related to customer base
expansion due to the closure of our primary periscope competitor, and
deliveries against a new gunner head assembly program to the U.S.
Government in 2013. These increases were partially offset by a
decrease in Howitzer programs resulting from completion of the
contract in fiscal year 2012. The gross margin during the year ended
September 29, 2013 was $3.2 million or 18.7% of revenues as compared
to a gross margin of $2.4 million or 16.8% for the year ended
September 30, 2012. The increase in gross margin percentage for the
year as compared to the prior year is primarily due the $2.8 million
increase in revenue, combined with a shift in product mix toward more
profitable programs, primarily in the last fiscal quarter of 2013.
During the period ended September 29, 2013, we recorded a net income
of $0.14 million, as compared to a net loss of ($0.26) million for
the period September 30, 2012. The change in net income of $0.40
million is primarily attributable to higher operating profit of $0.56
million offset by changes in the accrued dividends on preferred stock
of $(0.11) million due to the waiver in February 2012, increased
deferred taxes of $(0.03) million and increased interest expense of
$(0.02) million. Backlog as of September 29, 2013 was $12.3 million
as compared to a backlog of $19.0 million as of September 30, 2012,
representing decrease of 35.2%. During 2013, Optex Systems Holdings
received orders totaling $10.3 million consisting of $8.8 million
from several customers primarily in support of our periscope product
line, $0.8 million in Sighting Systems, and $0.7 million in the other
product group.  
As of September 29, 2013, we had cash and cash equivalents of $0.9
million as compared to $1.7 million on September 30, 2012. We
decreased cash and cash equivalents by $(0.8) million primarily due
to increased accounts receivable related to timing of collections of
$(1.3) million, and increased inventory in support of the M36 Day
Night program of $(0.6) million offset by borrowing against the
outstanding line of credit of $0.9 million and net income of $0.1
million.  
Danny Schoening, Company CEO, summarized: "As the year ending
September 30, 2013 began, we received an increase in product orders,
most with short delivery dates and for larger than expected
quantities; an early indication of the uncertainty caused by the
implementation of the Budget Control Act of 2011 known as
'sequestration.' This early rush of orders contributed to higher
Company performance and increase in EBITDA however, as the year
progressed and the reduced spending limits were enacted, the Company
began to experience fewer long-term solicitation requests as well as
reduced product quantities. We believed that this would be an
indication of the on-going impact of the Budget Control Act until
earlier this week when Congress reached a budget compromise and
reinstated $45 billion in defense spending cuts back into the FY 2014
Federal Budget. The results of this change in defense spending are
unknown but we are positioned to take advantage of every opportunity
presented to the Company and expect to understand the full impact of
the restored funding by mid-2014." 
He continued: "I am also pleased with the development of our products
designed for fleet modernization and upgrades; the recognition of our
advances in this product line was recently recognized by the issuance
on Optex's first patent by the U.S. Patent and Trademark Office." 
ABOUT OPTEX SYSTEMS 
Optex, which was founded in 1987, is a Richardson, Texas based ISO
9001:2008 certified concern, which manufactures optical sighting
systems and assemblies, primarily for Department of Defense (DOD)
applications. Its products are installed on various types of U.S.
military land vehicles, such as the Abrams and Bradley fighting
vehicles, Light Armored and Armored Security Vehicles, and have been
selected for installation on the Stryker family of vehicles. Optex
also manufactures and delivers numerous periscope configurations,
rifle and surveillance sights and night vision optical assemblies.
Optex delivers its products both directly to the military services
and to prime contractors. For additional information, please visit
the Company's website at www.optexsys.com.  
Safe Harbor Statement  
This press release and other written reports and oral statements made
from time to time by the Company may contain so-called
"forward-looking statements," all of which are subject to risks and
uncertainties. You can identify these forward-looking statements by
their use of words such as "expects," "plans," "will," "estimates,"
"forecasts," "projects" and other words of similar meaning. You can
identify them by the fact that they do not relate strictly to
historical or current facts. These statements are likely to address
the Company's growth strategy, financial results and product and
development programs. You must carefully consider any such statement
and should understand that many factors could cause actual results to
differ from the Company's forward-looking statements. These factors
include inaccurate assumptions and a broad variety of other risks and
uncertainties, including some that are known and some that are not.
No forward-looking statement can be guaranteed and actual future
results may vary materially. 
The Company does not assume the obligation to update any
forward-looking statement. You should carefully evaluate such
statements in light of factors described in the Company's filings
with the SEC, especially on Forms 10-K, 10-Q and 8-K. In various
filings the Company has identified important factors that could cause
actual results to differ from expected or historic results. You
should understand that it is not possible to predict or identify all
such factors. Consequently, you should not consider any such list to
be a complete list of all potential risks or uncertainties. 


 
                                                                            
                        Optex Systems Holdings, Inc.                        
                        Consolidated Balance Sheets                         
                                         (Thousands, except share data)     
                                     September 29, 2013  September 30, 2012 
                                     ------------------  ------------------ 
                                                                            
               ASSETS                                                       
                                                                            
Current Assets                                                              
Cash                                 $              882  $            1,653 
Accounts Receivable                               3,118               1,843 
Net Inventory                                     7,579               7,094 
Prepaid Expenses                                     36                  28 
                                     ------------------  ------------------ 
                                                                            
Total Current Assets                 $           11,615  $           10,618 
                                                                            
Property and Equipment                                                      
Property Plant and Equipment         $            1,704  $            1,584 
Accumulated Depreciation                         (1,460)             (1,392)
                                     ------------------  ------------------ 
                                                                            
Total Property and Equipment         $              244  $              192 
                                                                            
Other Assets                                                                
Deferred Tax Asset - Long Term       $            1,077  $            1,157 
Prepaid Royalties - Long Term                       180                 210 
Security Deposits                                    21                  21 
                                     ------------------  ------------------ 
                                                                            
Total Other Assets                   $            1,278  $            1,388 
                                     ------------------  ------------------ 
                                                                            
  Total Assets                       $           13,137  $           12,198 
                                     ==================  ================== 
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
                                                                            
Current Liabilities                                                         
Accounts Payable                     $              989  $            1,109 
Accrued Expenses                                    706                 754 
Accrued Warranties                                   25                  25 
Customer Advance Deposits - Short                                           
 Term                                               769                 776 
Credit Facility                                     858                   - 
                                     ------------------  ------------------ 
Total Current Liabilities            $            3,347  $            2,664 
                                     ------------------  ------------------ 
                                                                            
Other Liabilities                                                           
Customer Advance Deposits - Long                                            
 Term                                             1,935               1,944 
                                     ------------------  ------------------ 
                                                                            
Total Other Liabilities              $            1,935  $            1,944 
                                     ------------------  ------------------ 
                                                                            
Total Liabilities                    $            5,282  $            4,608 
                                                                            
Stockholders' Equity                                                        
Optex Systems Holdings, Inc. - (par                                         
 $0.001, 2,000,000,000 authorized,                                          
 157,346,607 and 152,346,607 shares                                         
 issued and outstanding,                                                    
 respectively)                       $              157  $              152 
Optex Systems Holdings, Inc.                                                
 Preferred Stock ($0.001 par 5,000                                          
 authorized, 1,016 and 1,027 series                                         
 A preferred issued and outstanding,                                        
 respectively)                                        -                   - 
Additional Paid-in-capital                       17,922              17,799 
Retained Earnings (Deficit)                     (10,224)            (10,361)
                                     ------------------  ------------------ 
                                                                            
Total Stockholders' Equity           $            7,855  $            7,590 
                                     ------------------  ------------------ 
                                                                            
Total Liabilities and Stockholders'                                         
 Equity                              $           13,137  $           12,198 
                                     ==================  ================== 
                                                                            
                                                                            
 The accompanying notes are an integral part of these financial statements  
                                                                            
                                                                            
                                                                            
 

 
                        Optex Systems Holdings, Inc.                        
                   Consolidated Statements of Operations                    
                                                                            
                                      (Thousands, except common share data) 
                                               Twelve months ended          
                                     September 29, 2013  September 30, 2012 
                                     ------------------  ------------------ 
                                                                            
Revenues                             $           17,070  $           14,254 
                                                                            
Total Cost of Sales                              13,861              11,849 
                                     ------------------  ------------------ 
                                                                            
Gross Margin                         $            3,209  $            2,405 
                                                                            
General and Administrative                        2,950               2,705 
                                     ------------------  ------------------ 
                                                                            
Operating Income (Loss)              $              259  $             (300)
                                                                            
Other Expenses                                                              
                                                                            
Interest Expense - Net                               42                  19 
                                     ------------------  ------------------ 
Total Other                          $               42  $               19 
                                                                            
Income Before Taxes                  $              217  $             (319)
                                                                            
Deferred Income Taxes (Benefit)                      80                  48 
                                     ------------------  ------------------ 
                                                                            
Net Income (Loss) After Taxes        $              137  $             (367)
                                     ==================  ================== 
                                                                            
Less preferred stock dividend                                               
 (accrued) waived                    $                -  $              106 
                                                                            
Net income (loss) applicable to                                             
 common shareholders                 $              137  $             (261)
                                                                            
                                     ------------------  ------------------ 
Basic income (loss) per share        $           0.0009  $          (0.0018)
                                     ==================  ================== 
                                                                            
Weighted average common shares                                              
 outstanding - Basic                        154,997,706         143,496,377 
                                                                            
Potentially diluted income (loss)                                           
 per share                           $           0.0002  $          (0.0018)
                                     ==================  ================== 
                                                                            
Weighted average common shares                                              
 outstanding - Potentially diluted          904,749,343         143,496,377 
                                                                            
 The accompanying notes are an integral part of these financial statements  

  
Optex Systems Holdings, Inc.
Stanley A. Hirschman
President
(972) 764-5700
ir@optexsys.com
1420 Presidential Drive
Richardson, TX 75081
 
 
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