Delaware
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13-3458955
|
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(State or other jurisdiction of
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(IRS Employer ID No.)
|
|
incorporation or organization)
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Common Stock, $.01 par value
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NYSE Amex
|
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(Title of Class)
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(Name of each exchange on which registered)
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¨
Large accelerated filer
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¨
Accelerated filer
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¨
Non-accelerated filer
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x
Smaller reporting company
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Page
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|||
PART I
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|||
Item 1
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Business
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4
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Item 1A
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Risk Factors
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9
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Item 1B
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Unresolved Staff Comments
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14
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Item 2
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Properties
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14
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Item 3
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Legal Proceedings
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14
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Item 4
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(Removed and Reserved)
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14
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Executive Officers of Registrant
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15
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PART II
|
|||
Item 5
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Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
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16
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Item 6
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Selected Consolidated Financial Data
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17
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Item 7
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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18
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Item 7A
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Quantitative and Qualitative Disclosures about Market Risk
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23
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Item 8
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Financial Statements and Supplementary Data
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23
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Item 9
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Changes in and Disagreements with Accountants on Accounting and
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||
Financial Disclosure
|
52
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||
Item 9A
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Controls and Procedures
|
52
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Item 9B
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Other Information
|
53
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PART III
|
|||
Item 10
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Directors, Executive Officers and Corporate Governance
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53
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Item 11
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Executive Compensation
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53
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Item 12
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Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
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53
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Item 13
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Certain Relationships and Related Transactions, and Director Independence
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54
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Item 14
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Principal Accountant Fees and Services
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54
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PART IV
|
|||
Item 15
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Exhibits and Financial Statement Schedules
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54
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Signatures
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55
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||
Index to Exhibits
|
56
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§
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A Technology Center embedded in our Newark operation that combines dedicated prototype manufacturing with an on-site Materials Analysis Lab, enabling the seamless transition of complex electronics from design to production.
|
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§
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In-house, custom, functional testing and troubleshooting of complex system-level assemblies, in support of end-order fulfillment.
|
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§
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Build-to-print precision sheet metal and complex wire harness assemblies supporting just-in-time delivery of critical end-market, system-level electronics.
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§
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Proprietary software-driven Web Portal providing customers real-time access to a wide array of operational data.
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§
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A Lean/Six Sigma continuous improvement program supported by a team of Six Sigma Blackbelts delivering best-in-class results.
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Fiscal Years ended September 30,
|
||||||||
% of Sales by Sector
|
2011
|
2010
|
||||||
Military & Aerospace
|
56 | % | 58 | % | ||||
Industrial & Communications
|
21 | % | 29 | % | ||||
Medical & Other
|
23 | % | 13 | % | ||||
100 | % | 100 | % |
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·
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adverse changes in general economic conditions
|
|
·
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natural disasters that may impede our operations, the operation of our customers’ business, or availability of manufacturing inputs from our suppliers
|
|
·
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the level and timing of customer orders and the accuracy of customer forecasts
|
|
·
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the capacity utilization of our manufacturing facilities and associated fixed costs
|
|
·
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price competition
|
|
·
|
market acceptance of our customers' products
|
|
·
|
business conditions in our customers' end markets
|
|
·
|
our level of experience in manufacturing a particular product
|
|
·
|
changes in the mix of sales to our customers
|
|
·
|
variations in efficiencies achieved in managing inventories and fixed assets
|
|
·
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fluctuations in cost and availability of materials
|
|
·
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timing of expenditures in anticipation of future orders
|
|
·
|
changes in cost and availability of labor and components
|
|
·
|
our effectiveness in managing the high reliability manufacturing process required by our customers
|
|
·
|
failure or external breach of our information technology systems
|
|
·
|
the inability of our customers to adapt to rapidly changing technology and evolving industry standards, which result in short product life cycles
|
|
·
|
the inability of our customers to develop and market their products, some of which are new and untested
|
|
·
|
the potential that our customers' products may become obsolete or the failure of our customers' products to gain anticipated commercial acceptance
|
|
·
|
periods of significantly decreased demand in our customers' markets
|
|
·
|
variation in demand for our customers' products in their end markets
|
|
·
|
actions taken by our customers to manage their inventory
|
|
·
|
product design changes by our customers
|
|
·
|
changes in our customers' manufacturing strategy
|
|
·
|
deciding on the levels of business that we will seek
|
|
·
|
production schedules
|
|
·
|
component procurement commitments
|
|
·
|
equipment requirements
|
|
·
|
personnel needs
|
|
·
|
other resource requirements
|
|
·
|
failure to integrate operations
|
|
·
|
loss of key personnel
|
|
·
|
failure to integrate information systems
|
|
·
|
failure to establish management, financial and operational controls such as adequate accounts receivable processes
|
|
·
|
failure to retain the customer base of acquired businesses
|
|
·
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diversion of management’s attention from other ongoing business concerns
|
·
|
exposure to unanticipated liabilities of acquired companies
|
|
·
|
hire and retain qualified engineering and technical personnel
|
|
·
|
maintain and enhance our technological leadership
|
|
·
|
develop and market manufacturing services that meet changing customer needs
|
|
·
|
incur debt
|
|
·
|
incur or maintain liens
|
|
·
|
make acquisitions of businesses or entities
|
|
·
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make investments, loans or advances
|
|
·
|
enter into guarantee agreements
|
|
·
|
engage in mergers, consolidations or certain sales of assets
|
|
·
|
engage in transactions with affiliates
|
|
·
|
pay dividends or engage in stock redemptions or repurchases
|
Location
|
Principal Use
|
Building SF
|
Owned/Leased
|
Lease Expiration
|
||||
Newark, New York
|
AO,E,M,W,D
|
235,000
|
Owned
|
na
|
||||
Victor, New York
|
M,W,D
|
19,000
|
Leased
|
December 31, 2012
|
||||
Rochester, New York
|
M,W,D
|
47,000
|
Leased
|
July 31, 2014
|
||||
Albuquerque, New Mexico
|
AO,E,M,W,D
|
72,000
|
Owned
|
na
|
||||
Bell Gardens, California
|
AO,E,M,W,D
|
42,000
|
Leased
|
Various, through
|
||||
September 30, 2013
|
||||||||
|
|
|
|
Age
|
||
W. Barry Gilbert
|
65
|
Chief Executive Officer and Chairman of the Board
|
Jeffrey T. Schlarbaum
|
45
|
President
|
Donald S. Doody
|
44
|
Executive Vice President
|
Susan E. Topel-Samek
|
53
|
Vice President and Chief Financial Officer
|
IEC Closing Stock Prices
|
Low
|
High
|
||||
Fiscal Quarters
|
||||||
Fourth 2011
|
$4.69 | $6.92 | ||||
Third 2011
|
6.43 | 8.88 | ||||
Second 2011
|
7.80 | 9.49 | ||||
First 2011
|
5.05 | 7.62 | ||||
Fourth 2010
|
$4.57 | $5.26 | ||||
Third 2010
|
4.30 | 5.49 | ||||
Second 2010
|
4.15 | 6.18 | ||||
First 2010
|
3.42 | 5.55 |
Years ended September 30,
|
||||||||||||||||||||
(amounts in thousands,
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
except per share)
|
(a)
|
(b)
|
(c)
|
|||||||||||||||||
Net sales
|
$ | 133,296 | $ | 96,674 | $ | 67,811 | $ | 51,092 | $ | 40,914 | ||||||||||
Gross profit
|
24,257 | 16,263 | 10,826 | 6,217 | 3,877 | |||||||||||||||
Operating profit
|
10,389 | 7,687 | 4,820 | 2,392 | 985 | |||||||||||||||
Income before provision for income taxes
|
9,816 | 7,055 | 4,718 | 1,634 | 503 | |||||||||||||||
Provision (benefit) for income taxes
|
3,056 | 2,400 | (238 | ) | (8,843 | ) | (372 | ) | ||||||||||||
Net income
|
$ | 6,760 | $ | 4,655 | $ | 4,956 | $ | 10,477 | $ | 875 | ||||||||||
Gross margin
|
18.2 | % | 16.8 | % | 16.0 | % | 12.2 | % | 9.5 | % | ||||||||||
Operating profit as % of sales
|
7.8 | % | 8.0 | % | 7.1 | % | 4.7 | % | 2.4 | % | ||||||||||
Income before provision for income taxes, per share:
|
||||||||||||||||||||
Basic
|
$ | 1.04 | $ | 0.78 | $ | 0.54 | $ | 0.19 | $ | 0.06 | ||||||||||
Diluted
|
0.98 | 0.73 | 0.49 | 0.18 | 0.06 | |||||||||||||||
Net income per share: (g)
|
||||||||||||||||||||
Basic
|
$ | 0.71 | $ | 0.52 | $ | 0.57 | $ | 1.22 | $ | 0.11 | ||||||||||
Diluted
|
0.68 | 0.48 | 0.52 | 1.12 | 0.10 | |||||||||||||||
Common and common equivalent shares:
|
||||||||||||||||||||
Basic
|
9,461.2 | 8,990.2 | 8,728.9 | 8,553.6 | 8,114.5 | |||||||||||||||
Diluted
|
9,967.7 | 9,608.2 | 9,553.5 | 9,337.1 | 8,895.8 | |||||||||||||||
Working capital (e)
|
$ | 17,292 | $ | 17,712 | $ | 11,390 | $ | 9,246 | $ | 3,985 | ||||||||||
Total assets (f)
|
85,820 | 55,682 | 34,469 | 34,184 | 12,344 | |||||||||||||||
Long-term debt (d) (e)
|
28,213 | 15,999 | 6,600 | 8,910 | 1,441 | |||||||||||||||
Shareholders' equity
|
33,686 | 25,419 | 20,254 | 15,976 | 4,163 |
(a)
|
IEC acquired the assets of Southern California Braiding Company, Inc. (SCB) on December 17, 2010.
|
(b)
|
IEC acquired General Technology Corporation (now IEC-Albuquerque) on December 16, 2009, and purchased the assets of Celmet Co., Inc. on July 30, 2010.
|
(c)
|
IEC acquired Val-U-Tech Corp. (now IEC Wire and Cable) on May 30, 2008.
|
(d)
|
Excluding current portion.
|
(e)
|
Revolver borrowings for 2007 were originally reported as current but have been reclassified to long-term based on extended maturity date stated in loan agreement.
|
(f)
|
Customer deposits for 2007-2008 were originally reported as inventory reserves, but have been reclassified to current liabilities.
|
(g)
|
In 2007-2009, net income per share included the favorable effects of reductions in IEC's deferred tax valuation allowance.
|
Fiscal Years ended September 30,
|
||||||||
Income Statement Data
|
2011
|
2010
|
||||||
(thousands)
|
||||||||
Net sales
|
$ | 133,296 | $ | 96,674 | ||||
Gross profit
|
24,257 | 16,263 | ||||||
Selling & administrative expenses
|
13,868 | 8,576 | ||||||
Interest & financing expense
|
1,601 | 814 | ||||||
Other (income) expense
|
(1,028 | ) | (182 | ) | ||||
Income before provision for income taxes
|
9,816 | 7,055 | ||||||
Provision for income taxes
|
3,056 | 2,400 | ||||||
Net income
|
$ | 6,760 | $ | 4,655 |
Three months ended September 30,
|
||||||||
Income Statement Data
|
2011
|
2010
|
||||||
(thousands)
|
||||||||
Net sales
|
$ | 34,941 | $ | 27,287 | ||||
Gross profit
|
6,574 | 4,776 | ||||||
Selling & administrative expenses
|
4,094 | 2,654 | ||||||
Interest & financing expense
|
387 | 220 | ||||||
Other (income) expense
|
(1,162 | ) | (387 | ) | ||||
Income before provision for income taxes
|
3,255 | 2,289 | ||||||
Provision for income taxes
|
624 | 661 | ||||||
Net income
|
$ | 2,631 | $ | 1,628 |
Actual at
|
||||||
Debt Covenant
|
Limit
|
September 30, 2011
|
||||
Quarterly EBITDARS (000's)
|
Must be above $1,500
|
$ | 4,904 | |||
Total debt to EBITDARS
|
Must be below 3.50x
|
2.08 | x | |||
Fixed charge coverage ratio (a)
|
Must be above 1.25x
|
2.03 | x |
Page
|
||
Report of Independent Registered Public Accounting Firm
|
24
|
|
Consolidated Balance Sheets as of September 30, 2011 and 2010
|
25
|
|
Consolidated Income Statements for the three months and years ended September 30, 2011 and 2010
|
26
|
|
Consolidated Statements of Changes in Shareholders' Equity for the years ended September 30, 2011 and 2010
|
27
|
|
Consolidated Statements of Cash Flows for the years ended September 30, 2011 and 2010
|
28
|
|
Notes to Consolidated Financial Statements
|
29
|
September 30,
|
||||||||
2011
|
2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash (see Accounting Policies note)
|
$ | - | $ | - | ||||
Accounts receivable, net of allowance
|
19,423 | 16,288 | ||||||
Inventories (see Inventories note)
|
16,093 | 12,068 | ||||||
Deferred income taxes
|
3,863 | 3,359 | ||||||
Other current assets
|
1,834 | 261 | ||||||
Total current assets
|
41,213 | 31,976 | ||||||
Fixed assets, net (see Fixed Assets note)
|
17,886 | 13,098 | ||||||
Intangible assets, net (see Intangibles note)
|
5,964 | 331 | ||||||
Goodwill
|
13,810 | 58 | ||||||
Deferred income taxes (see Income Taxes note)
|
6,768 | 10,113 | ||||||
Other assets
|
179 | 106 | ||||||
Total assets
|
$ | 85,820 | $ | 55,682 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt
|
$ | 6,896 | $ | 2,899 | ||||
Accounts payable
|
12,750 | 8,145 | ||||||
Accrued payroll and related expenses
|
3,092 | 2,279 | ||||||
Other accrued expenses
|
851 | 941 | ||||||
Customer deposits
|
332 | - | ||||||
Total current liabilities
|
23,921 | 14,264 | ||||||
Long-term debt (see Credit Facilities note)
|
28,213 | 15,999 | ||||||
Total liabilities
|
52,134 | 30,263 | ||||||
SHAREHOLDERS' EQUITY
|
||||||||
Preferred stock, $.01 par value:
|
||||||||
500,000 shares authorized; none issued or outstanding
|
- | - | ||||||
Common stock, $.01 par value:
|
||||||||
Authorized: 50,000,000 shares
|
||||||||
Issued: 10,839,997 and 10,100,589 shares, respectively
|
||||||||
Outstanding: 9,824,539 and 9,087,716 shares, respectively
|
108 | 101 | ||||||
Additional paid-in capital
|
42,660 | 41,138 | ||||||
Accumulated deficit
|
(7,647 | ) | (14,407 | ) | ||||
Treasury stock, at cost: 1,015,458 and 1,012,873 shares, respectively
|
(1,435 | ) | (1,413 | ) | ||||
Total shareholders' equity
|
33,686 | 25,419 | ||||||
Total liabilities and shareholders' equity
|
$ | 85,820 | $ | 55,682 |
Three months ended
|
Years ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(unaudited)
|
||||||||||||||||
Net sales
|
$ | 34,941 | $ | 27,287 | $ | 133,296 | $ | 96,674 | ||||||||
Cost of sales
|
28,367 | 22,511 | 109,039 | 80,411 | ||||||||||||
Gross profit
|
6,574 | 4,776 | 24,257 | 16,263 | ||||||||||||
Selling and administrative expenses
|
4,094 | 2,654 | 13,868 | 8,576 | ||||||||||||
Operating profit
|
2,480 | 2,122 | 10,389 | 7,687 | ||||||||||||
Interest and financing expense
|
387 | 220 | 1,601 | 814 | ||||||||||||
Other (income) expense
|
(1,162 | ) | (387 | ) | (1,028 | ) | (182 | ) | ||||||||
Income before provision for income taxes
|
3,255 | 2,289 | 9,816 | 7,055 | ||||||||||||
Provision for income taxes
|
624 | 661 | 3,056 | 2,400 | ||||||||||||
Net income
|
$ | 2,631 | $ | 1,628 | $ | 6,760 | $ | 4,655 | ||||||||
Net income per common and common equivalent share:
|
||||||||||||||||
Basic
|
$ | 0.27 | $ | 0.18 | $ | 0.71 | $ | 0.52 | ||||||||
Diluted
|
0.26 | 0.17 | 0.68 | 0.48 | ||||||||||||
Weighted average number of common and common equivalent shares outstanding:
|
||||||||||||||||
Basic
|
9,637,196 | 9,086,793 | 9,461,240 | 8,990,180 | ||||||||||||
Diluted
|
10,000,506 | 9,599,377 | 9,967,702 | 9,608,174 |
Common
|
Additional
|
Retained
|
Treasury
|
Total
|
||||||||||||||||
Stock,
|
Paid-In
|
Earnings
|
Stock,
|
Shareholders'
|
||||||||||||||||
par $.01
|
Capital
|
(Deficit)
|
at cost
|
Equity
|
||||||||||||||||
Balances, September 30, 2009
|
$ | 97 | $ | 40,632 | $ | (19,062 | ) | $ | (1,413 | ) | $ | 20,254 | ||||||||
Net income
|
4,655 | 4,655 | ||||||||||||||||||
Stock-based compensation
|
282 | 282 | ||||||||||||||||||
Directors' fees paid in stock
|
32 | 32 | ||||||||||||||||||
Restricted (non-vested) stock grants
|
1 | 1 | ||||||||||||||||||
Exercise of stock options
|
3 | 184 | 187 | |||||||||||||||||
Employee stock plan purchases
|
8 | 8 | ||||||||||||||||||
Balances, September 30, 2010
|
$ | 101 | $ | 41,138 | $ | (14,407 | ) | $ | (1,413 | ) | $ | 25,419 | ||||||||
Balances, September 30, 2010
|
$ | 101 | $ | 41,138 | $ | (14,407 | ) | $ | (1,413 | ) | $ | 25,419 | ||||||||
Net income
|
6,760 | 6,760 | ||||||||||||||||||
Stock-based compensation
|
489 | 489 | ||||||||||||||||||
Directors' fees paid in stock
|
37 | 37 | ||||||||||||||||||
Restricted (non-vested) stock grants
|
2 | 2 | ||||||||||||||||||
Exercise of stock options
|
4 | 365 | (22 | ) | 347 | |||||||||||||||
Shares issued in SCB acquisition
|
1 | 608 | 609 | |||||||||||||||||
Employee stock plan purchases
|
23 | 23 | ||||||||||||||||||
Balances, September 30, 2011
|
$ | 108 | $ | 42,660 | $ | (7,647 | ) | $ | (1,435 | ) | $ | 33,686 |
Years ended September 30,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income
|
$ | 6,760 | $ | 4,655 | ||||
Non-cash adjustments:
|
||||||||
Stock-based compensation
|
489 | 282 | ||||||
Depreciation and amortization
|
3,257 | 1,224 | ||||||
Directors' fees paid in stock
|
37 | 32 | ||||||
(Gain)/loss on sale of fixed assets
|
3 | (8 | ) | |||||
Gain on corporate acquisition
|
(170 | ) | (418 | ) | ||||
Deferred tax expense
|
2,920 | 2,151 | ||||||
Changes in current assets and liabilities:
|
||||||||
Accounts receivable
|
(1,559 | ) | (1,426 | ) | ||||
Inventories
|
(1,129 | ) | (937 | ) | ||||
Other current assets
|
(1,544 | ) | (59 | ) | ||||
Accounts payable
|
4,045 | 2,620 | ||||||
Accrued expenses
|
594 | (96 | ) | |||||
Customer deposits
|
332 | (190 | ) | |||||
Net cash flows from operating activities
|
14,035 | 7,830 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases of fixed assets
|
(4,876 | ) | (2,172 | ) | ||||
Proceeds from (net cost of) disposal of fixed assets
|
(3 | ) | 10 | |||||
Acquisition of SCB, cash portion (see Acquisitions note)
|
(25,782 | ) | - | |||||
Acquisition of Celmet (see Acquisitions note)
|
- | (1,898 | ) | |||||
Acquisition of Albuquerque (see Acquisitions note)
|
170 | (14,932 | ) (a) | |||||
Net cash flows from investing activities
|
(30,491 | ) | (18,992 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Advances from revolving line of credit
|
63,889 | (b) | 56,524 | (c) | ||||
Repayments of revolving line of credit
|
(62,514 | ) | (54,582 | ) | ||||
Borrowings under other loan agreements
|
20,840 | 11,316 | ||||||
Repayments under loan agreements and notes
|
(6,004 | ) | (2,207 | ) | ||||
Proceeds from exercise of stock options
|
347 | 187 | ||||||
Proceeds from shares issued through employee purchase plan
|
23 | 8 | ||||||
Financing costs capitalized
|
(125 | ) | (84 | ) | ||||
Net cash flows from financing activities
|
16,456 | 11,162 | ||||||
Net cash flows for the period
|
0 | 0 | ||||||
Cash and cash equivalents, beginning of period
|
0 | 0 | ||||||
Cash and cash equivalents, end of period
|
$ | 0 | $ | 0 | ||||
Supplemental cash flow information:
|
||||||||
Interest paid
|
$ | 1,499 | $ | 769 | ||||
Income taxes paid
|
309 | 297 | ||||||
Supplemental disclosure of non-cash adjustments:
|
||||||||
100,000 common shares issued in SCB acquisition
|
$ | 609 | $ | - | ||||
Receipt of common shares in payment for stock option exercise
|
22 | - |
|
·
|
A Technology Center embedded in our Newark operation that combines dedicated prototype manufacturing with an on-site Materials Analysis Lab, enabling the seamless transition of complex electronics from design to production.
|
|
·
|
In-house, custom, functional testing and troubleshooting of complex system-level assemblies, in support of end-order fulfillment.
|
|
·
|
Build-to-print precision sheet metal and complex wire harness assemblies supporting just-in-time delivery of critical end-market, system-level electronics.
|
|
·
|
A Lean/Six Sigma continuous improvement program supported by a team of Six Sigma Blackbelts delivering best-in-class results.
|
|
·
|
Proprietary software-driven Web Portal providing customers real-time access to a wide array of operational data.
|
Estimated
|
||
PP&E Lives
|
Useful Lives
|
|
(years)
|
||
Land improvements
|
10
|
|
Buildings and improvements
|
5 to 40
|
|
Machinery and equipment
|
3 to 5
|
|
Furniture and fixtures
|
3 to 7
|
Three months ended
|
Year ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
Shares for EPS Calculation
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Weighted avg. shares outstanding
|
9,637,196 | 9,086,793 | 9,461,240 | 8,990,180 | ||||||||||||
Incremental shares
|
363,310 | 512,584 | 506,462 | 617,994 | ||||||||||||
Diluted shares
|
10,000,506 | 9,599,377 | 9,967,702 | 9,608,174 | ||||||||||||
Options excluded from diluted
shares due to exercise price being higher than average market price
|
44,000 | 30,670 | 10,000 | 34,000 |
SCB Opening Balance Sheet
|
December 17, 2010
|
|||
(thousands, except shares)
|
||||
Accounts receivable
|
$ | 1,576 | ||
Inventories
|
2,896 | |||
Leasehold improvements
|
1,169 | |||
Machinery & equipment
|
1,344 | |||
Furniture & fixtures
|
236 | |||
Intangible assets
|
6,000 | |||
Goodwill
|
13,708 | |||
Deferred income taxes
|
122 | |||
Other assets
|
29 | |||
Total assets acquired
|
27,080 | |||
Accounts payable
|
$ | 560 | ||
Accruals and other liabilities
|
129 | |||
Total liabilities assumed
|
689 | |||
Net assets acquired/purchase price
|
$ | 26,391 | ||
Funded with bank debt
|
$ | 25,782 | ||
Funded with 100,000 shares of IEC common stock
|
609 | |||
Total funding for SCB acquisition
|
$ | 26,391 |
Celmet Division Opening Balance Sheet
|
July 30, 2010
|
|||
(thousands)
|
||||
Accounts receivable
|
$ | 577 | ||
Inventories
|
364 | |||
Other current assets
|
23 | |||
Equipment
|
1,058 | |||
Goodwill
|
101 | |||
Deferred income taxes
|
19 | |||
Total assets acquired
|
2,142 | |||
Accounts payable
|
$ | 214 | ||
Accruals and other liabilities
|
30 | |||
Total liabilities assumed
|
244 | |||
Net assets acquired/purchase price
(Purchase price was funded with bank debt.)
|
$ | 1,898 |
As of December 16, 2009
|
||||||||
Final
|
Preliminary
|
|||||||
Albuquerque Opening Balance Sheet
|
December 2010
|
September 2010
|
||||||
(thousands)
|
||||||||
Accounts receivable
|
$ | 3,931 | $ | 3,931 | ||||
Inventories
|
4,275 | 4,276 | ||||||
Other current assets
|
69 | 69 | ||||||
Land
|
813 | 813 | ||||||
Building
|
5,074 | 5,074 | ||||||
Equipment
|
2,761 | 2,761 | ||||||
Intangible asset
|
360 | 360 | ||||||
Deferred income taxes
|
485 | 485 | ||||||
Total assets acquired
|
17,768 | 17,769 | ||||||
Accounts payable
|
$ | 1,128 | $ | 1,128 | ||||
Accruals and other liabilities
|
1,191 | 1,191 | ||||||
Gain on acquisition
|
588 | 418 | ||||||
Long-term debt
|
100 | 100 | ||||||
Total liabilities assumed
|
3,007 | 2,837 | ||||||
Net assets acquired/purchase price
(Purchase price was funded with bank debt.)
|
$ | 14,761 | $ | 14,932 |
Operating Results of Acquired Businesses
|
Fiscal Years ended September 30,
|
|||||||
from Respective Dates of Acquisition
|
2011
|
2010
|
||||||
(thousands)
|
SCB
|
Albuquerque
|
||||||
and Celmet
|
||||||||
For businesses acquired during the year
|
||||||||
Net sales
|
$ | 11,363 | $ | 18,537 | ||||
Income (loss) before income taxes
|
(233 | ) | 2,437 | |||||
Net income (loss)
|
(221 | ) | 1,502 |
Fiscal Years ended September 30,
|
||||||||
IEC Pro Forma Operating Results
|
2011
|
2010
|
||||||
(in thousands, except share and per share data)
|
(Unaudited)
|
|||||||
As if SCB, Celmet and Albuquerque had been
acquired on the first day of the fiscal year
preceding the year of acquisition
|
||||||||
Net sales
|
$ | 137,227 | $ | 122,820 | ||||
Income before income taxes
|
10,304 | 9,050 | ||||||
Net income
|
7,053 | 5,846 | ||||||
Earnings per share:
|
||||||||
Basic
|
$ | 0.74 | $ | 0.64 | ||||
Diluted
|
0.71 | 0.60 | ||||||
Weighted average common and common equivalent shares:
|
||||||||
Basic
|
9,482,336 | 9,090,180 | ||||||
Diluted
|
9,988,798 | 9,708,174 |
Adjustments Used in Arriving at
|
Fiscal Years ended September 30, | |||||||
Pro Forma Results in Table Above
|
2011
|
2010
|
||||||
(in thousands, except share data)
|
(Unaudited)
|
|||||||
Increase (decrease)
|
||||||||
Sales
|
||||||||
Eliminate sales to former affiliate
|
$ | - | $ | (73 | ) | |||
Cost of sales
|
||||||||
Eliminate cost of sales to former affiliate
|
$ | - | $ | (104 | ) | |||
Depreciation expense
|
64 | 549 | ||||||
Other
|
- | (53 | ) | |||||
Total cost-of-sales adjustments
|
$ | 64 | $ | 392 | ||||
Selling and administrative expenses
|
||||||||
Compensation
|
$ | (379 | ) | $ | (1,772 | ) | ||
Sales/marketing expenses
|
(364 | ) | (1,300 | ) | ||||
Insurance premiums
|
(76 | ) | (373 | ) | ||||
Legal and accounting expenses
|
(154 | ) | (619 | ) | ||||
Contract staffing
|
(112 | ) | (420 | ) | ||||
Amortization of intangibles
|
86 | 412 | ||||||
Corporate allocation
|
150 | 720 | ||||||
Other
|
(33 | ) | (209 | ) | ||||
Total selling and administrative expense adjustments
|
$ | (882 | ) | $ | (3,561 | ) | ||
Interest expense
|
||||||||
Interest on acquisition debt
|
$ | 201 | $ | 1,177 | ||||
Other
|
(2 | ) | (29 | ) | ||||
Total interest expense adjustments
|
$ | 199 | $ | 1,148 | ||||
Other (income) expense
|
||||||||
Costs of integrating acquirees' information systems
|
$ | - | $ | 150 | ||||
Other
|
(109 | ) | 40 | |||||
Total other (income) expense adjustments
|
$ | (109 | ) | $ | 190 | |||
Weighted average common shares outstanding
|
||||||||
Shares of IEC common stock issued to acquire SCB
|
100,000 | |||||||
Weighted shares relating to pre-acquisition period
|
21,096 |
Years ended September 30,
|
||||||||
Allowance for Doubtful Accounts
|
2011
|
2010
|
||||||
(thousands)
|
||||||||
Allowance, beginning of period
|
$ | 250 | $ | 85 | ||||
Provision for doubtful accounts
|
70 | 271 | ||||||
Write-offs
|
(16 | ) | (106 | ) | ||||
Recoveries
|
1 | - | ||||||
Allowance, end of period
|
$ | 305 | $ | 250 |
September 30,
|
||||||||
Inventories
|
2011
|
2010
|
||||||
(thousands)
|
||||||||
Raw materials
|
$ | 8,492 | $ | 7,993 | ||||
Work-in-process
|
6,821 | 3,974 | ||||||
Finished goods
|
1,677 | 1,012 | ||||||
Total inventories
|
16,990 | 12,979 | ||||||
Reserve for excess/obsolete inventory
|
(897 | ) | (911 | ) | ||||
Inventories, net
|
$ | 16,093 | $ | 12,068 |
September 30,
|
||||||||
Fixed Assets
|
2011
|
2010
|
||||||
(thousands)
|
||||||||
Land and improvements
|
$ | 1,556 | $ | 1,556 | ||||
Buildings and improvements
|
9,824 | 9,581 | ||||||
Leasehold improvements
|
1,374 | - | ||||||
Machinery and equipment
|
21,008 | 15,434 | ||||||
Furniture and fixtures
|
5,246 | 4,833 | ||||||
Total fixed assets, at cost
|
39,008 | 31,404 | ||||||
Accumulated depreciation
|
(21,122 | ) | (18,306 | ) | ||||
Net fixed assets
|
$ | 17,886 | $ | 13,098 |
September 30,
|
||||||||
Intangible Assets
|
2011
|
2010
|
||||||
(thousands) | ||||||||
Customer relationships
|
$ | 5,900 | $ | - | ||||
Property tax abatement
|
360 | 360 | ||||||
Non-compete agreement
|
100 | - | ||||||
Total intangibles, at cost
|
6,360 | 360 | ||||||
Accumulated amortization
|
(396 | ) | (29 | ) | ||||
Net intangible assets
|
$ | 5,964 | $ | 331 | ||||
Years ended September 30,
|
||||||||
Amortization Expense
|
2011 | 2010 | ||||||
(thousands) | ||||||||
Amortization expense, relating to intangibles
|
$ | 367 | $ | 29 | ||||
Estimated
|
||||||||
future
|
||||||||
Future Amortization
|
amortization
|
|||||||
(thousands)
|
||||||||
Years ending September 30,
|
||||||||
2012
|
$ | 452 | ||||||
2013
|
452 | |||||||
2014
|
452 | |||||||
2015
|
452 | |||||||
2016
|
437 |
Fixed/
|
||||||||||||||||||||
Variable
|
Interest Rate
|
Balances at September 30,
|
||||||||||||||||||
Debt
|
Rate
|
Maturity
|
9/30/11
|
9/30/10
|
2011
|
2010
|
||||||||||||||
(percents)
|
(thousands)
|
|||||||||||||||||||
M&T borrowings
|
||||||||||||||||||||
Revolving credit facility
|
v |
12/17/13
|
3.25 | 3.50 | $ | 7,198 | $ | 5,823 | ||||||||||||
SCB term loan
|
v |
12/17/15
|
3.50 | - | 17,000 | - | ||||||||||||||
Abq term loan
|
v |
12/16/14
|
3.50 | 3.75 | 3,250 | 4,250 | ||||||||||||||
Abq mortgage loan
|
v |
12/16/14
|
3.50 | 3.75 | 3,533 | 3,800 | ||||||||||||||
Celmet term loan
|
v |
07/30/15
|
3.50 | 3.75 | 1,533 | 1,933 | ||||||||||||||
Equipment loans (2), variable
|
v |
01/05/15
|
3.25 | 3.75 | 945 | 273 | ||||||||||||||
Equipment loans (3), fixed
|
f |
11/01/12
|
3.05 | 3.07 | 315 | 521 | ||||||||||||||
Wire & Cable term loan
|
f |
01/01/12
|
6.70 | 6.70 | 95 | 435 | ||||||||||||||
Energy loan
|
f |
04/02/13
|
2.08 | 2.08 | 64 | 105 | ||||||||||||||
Other borrowings
|
||||||||||||||||||||
Seller notes, Wire & Cable
|
f |
06/01/13
|
4.00 | 4.00 | 1,076 | 1,658 | ||||||||||||||
Abq industrial revenue bond
|
f |
03/01/19
|
5.63 | 5.63 | 100 | 100 | ||||||||||||||
Total debt
|
35,109 | 18,898 | ||||||||||||||||||
Less: current portion
|
(6,896 | ) | (2,899 | ) | ||||||||||||||||
Long-term debt
|
$ | 28,213 | $ | 15,999 |
Actual at
|
||||||
Debt Covenant
|
Limit
|
September 30, 2011
|
||||
Quarterly EBITDARS (000's)
|
Must be above $1,500
|
$ | 4,904 | |||
Total debt to EBITDARS
|
Must be below 3.50x
|
2.08 | x | |||
Fixed charge coverage ratio (a)
|
Must be above 1.25x
|
2.03 | x |
Years ended
September 30,
|
||||||||
Income Tax Provision
|
2011
|
2010
|
||||||
(thousands)
|
||||||||
Current tax expense:
|
||||||||
State
|
$ | 2 | $ | 107 | ||||
Federal
|
134 | 142 | ||||||
Deferred tax expense:
|
||||||||
State
|
(388 | ) | (20 | ) | ||||
Federal
|
3,308 | 2,171 | ||||||
Total income tax provision
|
$ | 3,056 | $ | 2,400 |
Years ended September 30,
|
||||||||
Taxes as Percent of Pretax Income
|
2011
|
2010
|
||||||
Federal statutory rate
|
34.0 | % | 34.0 | % | ||||
State income taxes, net of federal benefit
|
2.4 | 0.8 | ||||||
Tax credit expiration and related valuation allowance
|
(2.3 | ) | ||||||
Increases in tax credits
|
(3.7 | ) | ||||||
Untaxed gain on corporate acquisition
|
(2.0 | ) | ||||||
Other
|
0.7 | 1.2 | ||||||
Income tax provision as percent of pretax income
|
31.1 | % | 34.0 | % |
September 30,
|
||||||||
Deferred Income Taxes
|
2011
|
2010
|
||||||
(thousands)
|
||||||||
Deferred tax assets:
|
||||||||
Net operating loss carryforward
|
$ | 8,853 | $ | 11,862 | ||||
Alternative minimum tax credit carryforward
|
503 | 373 | ||||||
Depreciation and fixed assets
|
(93 | ) | 287 | |||||
New York State investment tax & other credits
|
904 | 1,765 | ||||||
Inventories
|
403 | 367 | ||||||
Other
|
723 | 583 | ||||||
Total before allowance
|
11,293 | 15,237 | ||||||
Valuation allowance
|
(455 | ) | (1,765 | ) | ||||
Deferred tax assets, net
|
10,838 | 13,472 | ||||||
Deferred tax liability:
|
||||||||
Amortization of intangibles
|
(207 | ) | - | |||||
Net deferred income taxes (current and deferred)
|
$ | 10,631 | $ | 13,472 |
Years ended September 30,
|
||||||||
Warranty Reserve
|
2011
|
2010
|
||||||
(thousands) | ||||||||
Reserve, beginning of period
|
$ | 303 | $ | 111 | ||||
Reserves of acquired companies
|
62 | 376 | ||||||
Provision
|
412 | 21 | ||||||
Warranty costs
|
(376 | ) | (205 | ) | ||||
Recoveries
|
47 | - | ||||||
Reserve, end of period
|
$ | 448 | $ | 303 |
Years ended September 30,
|
||||||||
Valuation of Options
|
2011
|
2010
|
||||||
Assumptions for Black-Scholes:
|
||||||||
Risk-free interest rate
|
1.40 | % | 2.16 | % | ||||
Expected term in years
|
4.8 | 4.9 | ||||||
Volatility
|
54 | % | 54 | % | ||||
Expected annual dividends
|
none
|
none
|
||||||
Value of options granted:
|
||||||||
Number of options granted
|
78,000 | 128,682 | ||||||
Weighted average fair value/share
|
$ | 2.80 | $ | 2.24 | ||||
Fair value of options granted (000's)
|
$ | 218 | $ | 288 |
Years ended September 30,
|
||||||||||||||
2011
|
2010
|
|||||||||||||
Wgtd Avg.
|
Wgtd Avg.
|
|||||||||||||
Number
|
Exercise
|
Number
|
Exercise
|
|||||||||||
Stock Options
|
of Options
|
Price
|
of Options
|
Price
|
||||||||||
Outstanding at beginning of period
|
764,595 | $1.66 | 973,722 | $1.10 | ||||||||||
Granted
|
78,000 | 6.01 | 128,682 | 4.69 | ||||||||||
Exercised
|
(447,256 | ) | 0.82 | (231,467 | ) | 0.85 | ||||||||
Forfeited
|
(24,000 | ) | 5.76 | (106,342 | ) | 2.02 | ||||||||
Outstanding at end of period
|
371,339 | $3.32 | 764,595 | $1.66 | ||||||||||
For options expected to vest
|
||||||||||||||
Number expected to vest
|
371,339 | $3.32 | 764,595 | $1.66 | ||||||||||
Wgtd. avg. remaining term, in years
|
4.4 | 2.7 | ||||||||||||
Excess of fair value at period end over cost of exercising (000s)
|
$654 | $2,753 | ||||||||||||
For exercisable options at period end
|
||||||||||||||
Number exercisable
|
133,833 | $1.54 | 474,868 | $0.80 | ||||||||||
Wgtd. avg. remaining term, in years
|
1.5 | 1.7 | ||||||||||||
Excess of fair value at period end over cost of exercising (000s)
|
$474 | $2,118 | ||||||||||||
For non-exercisable options at period end
|
||||||||||||||
Expense not yet recognized (000s)
|
$328 | $296 | ||||||||||||
Wgtd. avg. years to become exercisable
|
1.9 | 1.9 | ||||||||||||
For options exercised
|
||||||||||||||
Excess of fair value on dates of exercise over cost (000s)
|
$3,170 | $928 |
Years ended September 30,
|
||||||||||||||
2011
|
2010
|
|||||||||||||
Number of
|
Wgtd Avg.
|
Number of
|
Wgtd Avg.
|
|||||||||||
Non-vested
|
Grant Date
|
Non-vested
|
Grant Date
|
|||||||||||
Restricted (Non-vested) Stock
|
Shares
|
Fair Value
|
Shares
|
Fair Value
|
||||||||||
Outstanding at beginning of period
|
122,098 | $4.10 | 37,000 | $2.45 | ||||||||||
Granted
|
184,958 | 6.73 | 145,351 | 4.04 | ||||||||||
Becoming vested
|
(19,580 | ) | 4.15 | (27,000 | ) | 2.10 | ||||||||
Forfeited
|
(3,000 | ) | 8.70 | (33,253 | ) | 3.63 | ||||||||
Outstanding at end of period
|
284,476 | $5.76 | 122,098 | $4.10 | ||||||||||
For non-vested shares at period end
|
||||||||||||||
Expense not yet recognized (000s)
|
$1,248 | $395 | ||||||||||||
Wgtd. average remaining years for vesting
|
2.1 | 2.2 | ||||||||||||
For shares becoming vested
|
||||||||||||||
Aggregate fair value on vesting dates (000s)
|
$135 | $130 |
Three months ended
|
Years ended
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
% of Sales by Sector
|
2011
|
2010
|
2011
|
2010
|
||||||||
Military & Aerospace
|
51% | 56% | 56% | 58% | ||||||||
Industrial & Communications
|
23% | 28% | 21% | 29% | ||||||||
Medical & Other
|
26% | 16% | 23% | 13% | ||||||||
100% | 100% | 100% | 100% |
Obligation
|
||||
Future Rental Obligations
|
to pay rent
|
|||
(thousands)
|
||||
Years ending September 30,
|
||||
2012
|
$ | 1,292 | ||
2013
|
943 | |||
2014
|
252 | |||
2015
|
18 | |||
2016
|
4 | |||
Total rent expense for years ended September 30,
|
||||
2011
|
$ | 1,429 | ||
2010
|
808 |
Basic
|
Diluted
|
|||||||||||||||||||
Gross
|
Net
|
Earnings
|
Earnings
|
|||||||||||||||||
Net Sales
|
Profit
|
Income
|
Per Share
|
Per Share
|
||||||||||||||||
(Unaudited; in thousands, except per share)
|
||||||||||||||||||||
Fiscal Quarters
|
||||||||||||||||||||
Fourth 2011
|
$ | 34,941 | $ | 6,574 | $ | 2,631 | $ | 0.27 | $ | 0.26 | ||||||||||
Third 2011
|
34,626 | 6,156 | 1,333 | 0.14 | 0.13 | |||||||||||||||
Second 2011
|
35,085 | 6,944 | 1,747 | 0.18 | 0.17 | |||||||||||||||
First 2011
|
28,644 | 4,583 | 1,049 | 0.11 | 0.11 | |||||||||||||||
Fourth 2010
|
$ | 27,287 | $ | 4,776 | $ | 1,628 | $ | 0.18 | $ | 0.17 | ||||||||||
Third 2010
|
26,095 | 4,656 | 1,238 | 0.14 | 0.13 | |||||||||||||||
Second 2010
|
25,232 | 4,018 | 1,036 | 0.12 | 0.11 | |||||||||||||||
First 2010
|
18,060 | 2,813 | 753 | 0.09 | 0.08 |
(i)
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and asset dispositions of the Company,
|
(ii)
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company, and
|
(iii)
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on financial statements.
|
Number of shares
|
Number of shares
|
|||||||||||
to be issued
|
Wgtd average
|
remaining available
|
||||||||||
upon exercise
|
exercise price
|
for future issuance
|
||||||||||
of outstanding
|
of outstanding
|
under equity
|
||||||||||
Equity Compensation Plan Information
|
options, warrants
|
options, warrants
|
compensation
|
|||||||||
as of September 30, 2011
|
or rights
|
or rights
|
plans (ii)
|
|||||||||
Equity compensation plans:
|
||||||||||||
Approved by shareholders
|
371,339 | (i) | $ | 3.32 | 2,209,869 | |||||||
Not approved by shareholders
|
- | - | - | |||||||||
Total
|
371,339 | $ | 3.32 | 2,209,869 |
(i)
|
Represents shares issuable upon exercise of awards granted under IEC's 2001 Stock Option and Incentive Plan, which was approved by shareholders in February 2002 and terminates December 2011. IEC's 2010 Omnibus Incentive Compensation Plan was approved by shareholders in January 2011, however, no awards were granted under the 2010 Plan through September 30, 2011.
|
(ii)
|
Excludes shares reflected in first column. Includes shares remaining available for issuance under the Company's 2001 Stock Option and Incentive Plan and the 2010 Omnibus Incentive Compensation Plan.
|
IEC Electronics Corp.
|
||
By: |
/s/ W. Barry Gilbert
|
|
W. Barry Gilbert
|
||
Chief Executive Officer and Chairman of the Board
|
Signature
|
Title
|
Date
|
||
/s/ W. Barry Gilbert
|
Chief Executive Officer and
|
December 16, 2011
|
||
W. Barry Gilbert
|
Chairman of the Board
|
|||
(Principal executive officer and Director)
|
||||
/s/ Susan E. Topel-Samek
|
Vice President and
|
December 16, 2011
|
||
Susan E. Topel-Samek
|
Chief Financial Officer
|
|||
(Principal financial and accounting officer)
|
||||
/s/ Eben S. Moulton
|
Director
|
December 16, 2011
|
||
Eben S. Moulton
|
||||
/s/ James C. Rowe
|
Director
|
December 16, 2011
|
||
James C. Rowe
|
||||
/s/ Carl E. Sassano
|
Director
|
December 16, 2011
|
||
Carl E. Sassano
|
||||
/s/ Amy L. Tait
|
Director
|
December 16, 2011
|
||
Amy L. Tait
|
||||
/s/ Jerold L. Zimmerman
|
Director
|
December 16, 2011
|
||
Jerold L. Zimmerman
|
|
|
Exhibit
No.
|
Title
|
Page
|
||
2.1
|
Agreement and Plan of Merger by and among IEC Electronics Corp., VUT Merger Corp. and Val-U-Tech Corp. dated as of May 23, 2008 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 27, 2008)
|
|||
2.2
|
Stock Purchase Agreement, dated December 16, 2009, by and among IEC Electronics Corp, Crane International Holdings, Inc. and General Technology Corporation (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed December 23, 2009)
|
|||
2.3
|
Asset Purchase Agreement dated December 17, 2010 by and among CSCB, Inc., Southern California Braiding Co., Inc., Leo P. McIntyre, Trustee of the Exemption Trust Created Under The McIntyre Family Trust dated October 4, 1993 as Amended and Restated in its Entirety dated July 12, 2005, Leo P. McIntyre, Trustee of the McIntyre Survivor's Trust, Restatement dated June 13, 2006, Created under the McIntyre Family Trust dated October 4, 1993, Leo P. McIntyre and Craig Pfefferman,
and executed by IEC Electronics Corp. solely as guarantor of certain obligations thereunder (incorporated by reference to Exhibit 2.1 to the Company's Current Report on Form 8-K filed December 23, 2010)
|
|||
2.4
|
Agreement and Plan of Merger of IEC Electronics into DFT Holdings Corp. (incorporated by reference to Exhibit 3.3 to the Company's Registration Statement on Form S-1, Registration No. 33-56498)
|
|||
3.1
|
Amended and Restated Certificate of Incorporation of DFT Holdings Corp. (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-1, Registration No. 33-56498)
|
|||
3.2
|
Amended and Restated By-Laws of the Company as of October 1, 2010 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed October 7, 2010)
|
|||
3.4
|
Certificate of Merger of IEC Electronics Corp. into DFT Holdings Corp. - New York (incorporated by reference to Exhibit 3.4 to the Company's Registration Statement on Form S-1, Registration No. 33-56498)
|
|||
3.5
|
Certificate of Ownership and Merger merging IEC Electronics Corp. into DFT Holdings Corp. - Delaware (incorporated by reference to Exhibit 3.5 to the Company's Registration Statement on Form S-1, Registration No. 33-56498)
|
|||
3.6
|
Certificate of Merger of IEC Acquisition Corp. into IEC Electronics Corp. (incorporated by reference to Exhibit 3.6 to the Company’s Registration Statement on Form S-1, Registration No. 33-56498)
|
|||
3.7
|
Certificate of Amendment of Certificate of Incorporation of IEC Electronics Corp. filed with the Secretary of State of the State of Delaware on February 26, 1998 (incorporated by reference to Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q for the Quarter ended March 27, 1998)
|
|||
3.8
|
Certificate of Designations of the Series A Preferred Stock of IEC Electronics Corp. filed with the Secretary of State of the State of Delaware on June 3, 1998 (incorporated by reference to Exhibit 3.8 of the Company's Annual Report on Form 10-K for the year ended September 30, 1998)
|
|||
4.1
|
Specimen of Certificate for Common Stock (incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form S-1, Registration No. 33-56498)
|
|||
10.1
|
Credit Facility Agreement dated as of May 30, 2008 by and among IEC Electronics Corp. and Manufacturers and Traders Trust Company (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 27, 2008)
|
|||
10.2
|
First Amendment to Credit Facility Agreement made July 29, 2008 to be effective as of May 30, 2008 between IEC Electronics Corp. and Manufacturers and Traders Trust Company (incorporated by reference to Exhibit 10.8 to the Company's Annual Report on Form 10-K for the year ended September 30, 2008)
|
Exhibit
No.
|
Title
|
Page
|
||
10.3
|
Amended and Restated Credit Facility Agreement, dated as of December 16, 2009, by and among IEC Electronics Corp. and Manufacturers and Traders Trust Company (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed December 23, 2009)
|
|||
10.4
|
Amendment 1, dated as of February 26, 2010, to the Amended and Restated Credit Facility Agreement, dated as of December 16, 2009, by and among IEC Electronics Corp. and Manufacturers and Traders Trust Company (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended March 26, 2010)
|
|||
10.5
|
Second Amended and Restated Credit Facility Agreement, dated as of July 30, 2010, by and among IEC Electronics Corp. and Manufacturers and Traders Trust Company (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed August 5, 2010)
|
|||
10.6
|
Third Amended and Restated Credit Facility Agreement dated December 17, 2010 by and between IEC Electronics Corp. and Manufacturers and Traders Trust Company (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed December 23, 2010)
|
|||
10.7*
|
Form of Indemnity Agreement between the Company and its directors and executive officers. (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended July 2, 1993)
|
|||
10.8*
|
IEC Electronics Corp. 2001 Stock Option and Incentive Plan, as amended on February 4, 2009 (incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K for the year ended September 30, 2009)
|
|||
10.9*
|
Form of Incentive Stock Option Agreement pursuant to 2001 Stock Option and Incentive Plan (incorporated by reference to Exhibit 10.5 to the Company's Annual Report on Form 10-K for the year ended September 30, 2009)
|
|||
10.10*
|
Form of Outside Director Stock Option Agreement pursuant to 2001 Stock Option and Incentive Plan (incorporated by reference to Exhibit 10.6 to the Company's Annual Report on Form 10-K for the year ended September 30, 2009)
|
|||
10.11*
|
Form of Restricted Stock Award Agreement pursuant to 2001 Stock Option and Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company's Annual Report on Form 10-K for the year ended September 30, 2009)
|
|||
10.12*
|
IEC Electronics Corp. 2010 Omnibus Incentive Compensation Plan, as amended May 23, 2011
|
|||
10.13*
|
Separation Agreement between the Company and Michael Schlehr dated May 24, 2010 and Appendix A thereto (Independent Consulting Agreement) (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 25, 2010)
|
|||
10.14*
|
Employment Agreement between the Company and W. Barry Gilbert, effective April 24, 2009 (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed April 30, 2009)
|
|||
10.15*
|
First Amendment, dated September 17, 2010 and effective October 1, 2010, to the Employment Agreement, dated April 24, 2009 between the Company and W. Barry Gilbert (incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed October 1, 2010)
|
|||
10.16* | Amended Salary Arrangement with Chief Executive Officer, effective November 1, 2011 | |||
10.17*
|
Offer of Employment Letter Agreement between the Company and Susan E. Topel-Samek dated May 19, 2010 (incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the quarter ended June 25, 2010)
|
|||
10.18*
|
Salary Continuation and Non-Competition Agreement dated and effective as of October 1, 2010 between the Company and Jeffrey T. Schlarbaum (incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K for the year ended September 30, 2010)
|
|||
10.19*
|
Salary Continuation and Non-Competition Agreement dated and effective as of October 1, 2010 between the Company and Donald S. Doody (incorporated by reference to Exhibit 10.23 to the Company's Annual Report on Form 10-K for the year ended September 30, 2010)
|
|||
10.20*
|
Summary of the Company's 2011 Management Incentive Plan
|
|||
10.21*
|
Summary of the Company's 2011 Long-Term Incentive Plan
|
|||
10.22*
|
IEC Electronics Corp. Management Deferred Compensation Plan, effective January 1, 2009 (incorporated by reference to Exhibit 10.21 to the Company's Annual Report on Form 10-K for the year ended September 30, 2009)
|
Exhibit
No.
|
Title
|
Page
|
||
10.23*
|
IEC Electronics Corp. Board of Directors Deferred Compensation Plan, effective January 1, 2009 (incorporated by reference to Exhibit 10.22 to the Company's Annual Report on Form 10-K for the year ended September 30, 2009)
|
|||
14
|
Code of Business Conduct and Ethics (incorporated by reference to Exhibit 14 to the Company’s Current Report on Form 8-K filed on September 1, 2004)
|
|||
21.1
|
Subsidiaries of IEC Electronics Corp.
|
|||
23.1
|
Consent of Independent Registered Public Accounting Firm
|
|||
31.1
|
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
31.2
|
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|||
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|||
101
|
|
The following items from this Annual Report on Form 10-K formatted in Extensible Business Reporting Language: (i) Consolidated Balance Sheets, (ii) Consolidated Income Statements, (iii) Consolidated Statements of Changes in Shareholders' Equity, (iv) Consolidated Statements of Cash Flows, and (v) Notes to Consolidated Financial Statements, the latter being tagged as blocks of text. Pursuant to Rule 406T of Regulation S-T, the interactive files in Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended; are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended; and otherwise are not subject to liability under those sections.
|
|
% =
|
the percentage of the Director’s Compensation that the Director is required and/or has elected to receive in the form of Director Stock, expressed as a decimal;
|
C =
|
the cash amount that otherwise would have been paid as Director Compensation to the Director for the calendar quarter; and
|
P =
|
the Fair Market Value of one share of Stock on the trading date
|
Subsidiary
|
State of incorporation
|
|
IEC Electronics Wire and Cable, Inc.
|
New York
|
|
IEC Electronics Corp.-Albuquerque
|
New Mexico
|
|
Dynamic Research and Testing Laboratories, LLC
|
New Mexico
|
|
Southern California Braiding, Inc.
|
Delaware
|
1.
|
I have reviewed this report on Form 10-K for the fiscal year ended September 30, 2011 for IEC Electronics Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,
|
|
d.
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: December 16, 2011
|
/s/ W. Barry Gilbert
|
W. Barry Gilbert
|
|
Chairman and Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-K for the fiscal year ended September 30, 2011 for IEC Electronics Corp.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a.
|
designed such disclosure controls and procedures, or caused such disclosure controls to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,
|
|
d.
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
|
a.
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|
b.
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated: December 16, 2011
|
/s/ Susan E. Topel-Samek
|
Susan E. Topel-Samek
|
|
Vice President and Chief Financial Officer
|
1.
|
The report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated: December 16, 2011
|
/s/ W. Barry Gilbert
|
W. Barry Gilbert
|
|
Chairman and Chief Executive Officer
|
|
/s/ Susan E. Topel-Samek
|
|
Susan E. Topel-Samek
|
|
Vice President and Chief Financial Officer
|