ORBIT INTERNATIONAL CORP

CIK:0000074818|SEC Filings

Consolidation of Operations	6 Months Ended
Consolidation of Operations	Jun. 30, 2014
Consolidation of Operations [Abstract]
Consolidation of Operations	(NOTE 13) – Consolidation of Operations: In October 2013, the Company decided to consolidate the operations of its TDL subsidiary, located in Quakertown, Pennsylvania, into its Orbit International Corp. facility located in Hauppauge, New York (“TDL Consolidation”). This decision was based on a number of factors, among them, TDL’s expiring lease in October 2014, the uneven revenue stream at TDL, the uncertainty surrounding defense spending related to budget discussions in Washington DC and the Company’s broader focus on cutting costs and promoting operating efficiencies. During the six and three months ended June 30, 2014, the Company incurred a $1,079,000 and $351,000 operating loss, respectively, from its TDL subsidiary, which included costs associated with the consolidation of its Quakertown facility including approximately $161,000 of accelerated non-cash amortization and depreciation expense during the six months ended June 30, 2014. The Company does not expect to incur additional costs related to the TDL consolidation after June 30, 2014 with the exception of some minor occupancy related costs.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:
Net (loss) income	$ (1,233,000)	$ 29,000
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Share-based compensation expense	52,000	56,000
Depreciation and amortization	308,000	140,000
Loss on disposal of property and equipment	11,000	0
(Gain) loss on sale of marketable securities	(3,000)	2,000
Bond (discount) premium amortization	(2,000)	6,000
Changes in operating assets and liabilities:
Accounts receivable	579,000	1,186,000
Inventories	615,000	568,000
Costs and estimated earnings in excess of billings on uncompleted contracts	0	(124,000)
Other current assets	46,000	78,000
Other assets	(5,000)	29,000
Accounts payable	13,000	(200,000)
Accrued expenses	(74,000)	(53,000)
Income taxes payable	(12,000)	21,000
Customer advances	160,000	(61,000)
Other liabilities	48,000	0
Liability associated with non-renewal of senior officer contract	(20,000)	(218,000)
Net cash provided by operating activities	483,000	1,459,000
Cash flows from investing activities:
Purchases of property and equipment	(68,000)	(156,000)
Purchase of marketable securities	(500,000)	(151,000)
Sale of marketable securities	502,000	150,000
Net cash used in investing activities	(66,000)	(157,000)
Cash flows from financing activities:
Purchase of treasury stock	(92,000)	(325,000)
Repayments of note payable - bank	(215,000)	(724,000)
Repayments of long-term debt	0	(16,000)
Net cash used in financing activities	(307,000)	(1,065,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS	110,000	237,000
Cash and cash equivalents - Beginning of period	2,562,000	610,000
CASH AND CASH EQUIVALENTS - End of period	2,672,000	847,000
Supplemental cash flow information:
Cash paid for interest	22,000	34,000
Cash paid for income taxes	$ 41,000	$ 25,000

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 2,672,000	$ 2,562,000
Investments in marketable securities	252,000	243,000
Accounts receivable (less allowance for doubtful accounts of $145,000)	2,402,000	2,981,000
Inventories	11,188,000	11,803,000
Other current assets	218,000	264,000
Total current assets	16,732,000	17,853,000
Property and equipment, net	724,000	975,000
Goodwill	868,000	868,000
Other assets	40,000	35,000
TOTAL ASSETS	18,364,000	19,731,000
Current liabilities:
Line of Credit	0	2,100,000
Accounts payable	523,000	510,000
Liability associated with non-renewal of senior officer contract	20,000	36,000
Income taxes payable	13,000	25,000
Accrued expenses	1,075,000	1,149,000
Customer advances	177,000	17,000
Total current liabilities	1,808,000	3,837,000
Line of Credit	1,885,000	0
Other liabilities	48,000	0
Liability associated with non-renewal of senior officer contract, net of current portion	0	4,000
Total liabilities	3,741,000	3,841,000
STOCKHOLDERS' EQUITY
Common stock - $.10 par value, 10,000,000 shares authorized, 5,223,000 and 5,232,000 shares issued at June 30, 2014 and December 31, 2013, respectively, and 4,485,000 and 4,521,000 shares outstanding at June 30, 2014 and December 31, 2013, respectively	522,000	523,000
Additional paid-in capital	22,877,000	22,824,000
Treasury stock, at cost, 738,000 and 711,000 shares at June 30, 2014 and December 31, 2013, respectively	(2,225,000)	(2,133,000)
Accumulated other comprehensive (loss), net of tax	1,000	(5,000)
Accumulated deficit	(6,552,000)	(5,319,000)
Total stockholders' equity	14,623,000	15,890,000
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 18,364,000	$ 19,731,000