IEC ELECTRONICS CORP

CIK:0000049728|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 02, 2021	Jun. 26, 2020	Jul. 02, 2021	Jun. 26, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Net sales	$ 49,370	$ 47,364	$ 142,211	$ 136,269
Cost of sales	44,135	40,722	127,924	118,885
Gross profit	5,235	6,642	14,287	17,384
Selling and administrative expenses	3,357	3,678	10,362	10,194
Operating profit	1,878	2,964	3,925	7,190
Interest expense	587	300	1,589	1,111
Income before provision for income taxes	1,291	2,664	2,336	6,079
Provision for income taxes	265	550	121	1,253
Net income	$ 1,026	$ 2,114	$ 2,215	$ 4,826
Net income per common share:
Basic (in dollars per share)	$ 0.10	$ 0.20	$ 0.21	$ 0.46
Diluted (in dollars per share)	$ 0.09	$ 0.20	$ 0.20	$ 0.45
Weighted average number of shares outstanding:
Basic (in shares)	10,616,613	10,424,056	10,574,713	10,388,872
Diluted (in shares)	11,048,668	10,758,092	11,032,245	10,697,288

CONDENSED CONSOLIDATED STATEMENTS of CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jul. 02, 2021	Jun. 26, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 2,215	$ 4,826
Non-cash adjustments:
Stock-based compensation	650	526
Depreciation and amortization	3,685	2,442
Change in reserve for doubtful accounts	(56)	94
Change in inventory reserve and warranty reserve	467	1,226
Gain on sale of property, plant and equipment	(30)
Deferred tax (income) expense	(96)	1,751
Amortization of deferred gain	(86)	(86)
Changes in operating assets and liabilities:
Accounts receivable	(1,505)	(2,796)
Unbilled contract revenue	(4,540)	(988)
Inventories	(2,705)	(3,818)
Federal income tax receivable		(517)
Other current assets	79	68
Other long-term assets	180	(330)
Accounts payable	(4,682)	(1,188)
Change in book overdraft position		(107)
Accrued expenses	(2,631)	(557)
Customer deposits	(2,205)	7,210
Net change in lease right-of-use assets and liabilities	14
Other long-term liabilities	114
Net cash flows (used in)/provided by operating activities	(11,132)	7,756
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment	(11,591)	(3,067)
Proceeds from disposal of property, plant and equipment	668
Proceeds received from capital grants	1,500
Net cash flows used in investing activities	(9,423)	(3,067)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from revolving credit facility	84,121	55,523
Repayments of revolving credit facility	(71,041)	(56,505)
Borrowings under other loan agreements	8,699	0
Repayments under other loan agreements	(6,603)	(3,904)
Payments under finance lease	(944)	(284)
Proceeds received from lease financing obligation	6,521	415
Debt issuance costs	(98)	(84)
Proceeds from exercise of stock options	95	161
Proceeds from employee stock plan purchases	94	87
Cash paid for taxes upon vesting of restricted stock	(485)	(98)
Net cash flows provided by/(used in) financing activities	20,359	(4,689)
Net cash change for the period	(196)	0
Cash, beginning of period	312	0
Cash, end of period	116	0
Supplemental cash flow information
Interest paid	1,526	1,094
Income taxes paid	239	20
Non-cash transactions:
Property, plant and equipment purchases included in accounts payable	$ 150	$ 90

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Jul. 02, 2021	Sep. 30, 2020
Current assets:
Cash	$ 116	$ 312
Accounts receivable, net of allowance	31,922	30,361
Unbilled contract revenue	13,313	8,773
Inventories	53,906	51,374
Other current assets	1,678	1,757
Total current assets	100,935	92,577
Property, plant and equipment, net	50,805	23,587
Deferred income taxes	4,936	4,840
Operating lease right-of-use assets, net of accumulated amortization	200	260
Other long-term assets	876	1,700
Total assets	157,752	122,964
Current liabilities:
Current portion of long-term debt	248	0
Current portion of operating lease obligation	63	61
Current portion of finance lease obligation	2,080	436
Accounts payable	25,201	29,733
Accrued payroll and related expenses	1,463	3,659
Other accrued expenses	316	457
Customer deposits	17,578	19,783
Total current liabilities	46,949	54,129
Long-term debt	36,385	21,476
Long-term operating lease obligation	136	184
Long-term finance lease obligation	29,690	6,616
Other long-term liabilities	2,868	1,404
Total liabilities	116,028	83,809
Commitments and contingencies (Note 11)
STOCKHOLDERS' EQUITY
Preferred stock, $0.01 par value: 500,000 shares authorized; none issued or outstanding
Common stock, $0.01 par value: Authorized: 50,000,000 shares Issued: 11,675,866 and 11,556,214 shares, respectively Outstanding: 10,620,378 and 10,500,726 shares, respectively	106	105
Additional paid-in capital	49,514	49,161
Accumulated deficit	(6,307)	(8,522)
Treasury stock, at cost: 1,055,488 shares	(1,589)	(1,589)
Total stockholders' equity	41,724	39,155
Total liabilities and stockholders' equity	$ 157,752	$ 122,964