National Technical Systems Announces Strong Fiscal 2009 Second Quarter and Six Months Results

CALABASAS, Calif.--National Technical Systems, Inc. (NTS) today announced strong results for its fiscal 2009 second quarter and six months ended July 31, 2008.

Net income for the quarter increased 46.8% to $1,130,000 as compared to $770,000 for the same period in the prior year with corresponding diluted earnings per share of $0.12 in the current period compared to $0.08 for the same quarter in the prior year. Net income for the six months ended July 31, 2008 increased 36.5% to $1,858,000 as compared to $1,361,000 for the same period in the prior year with corresponding diluted earnings per share of $0.20 in the current period compared to $0.15 for the same period in the prior year. Total revenues for the quarter increased 16.0% to $36,004,000, compared to $31,025,000 for the same period in the prior year. Total revenues for the six months ended July 31, 2008 increased 11.4% to $67,736,000, compared to $60,829,000 for the same period in the prior year.

CEO William C. McGinnis commented, “I am extremely pleased with our second quarter results, which were driven by healthy growth organically and through our recent acquisitions. The Elliott Laboratories acquisition has been effectively integrated and, from a financial perspective, is performing above expectations. In addition, the demand for aerospace testing was strong across the Company and as a result, we experienced strong financial performance from our California and Massachusetts facilities. Our Wichita facility, another recent acquisition, experienced increased demand for body armor testing during this past quarter. Finally, our Technical Solutions segment has achieved a slight improvement in revenues and a modest increase in operating income resulting from our cost cutting measures.”

Revenues from Engineering & Evaluation increased 19.3% for the quarter to $27.2 million, compared to $22.8 million for the same period in the prior year. Revenues from Engineering & Evaluation increased 14.2% for the six months ended July 31, 2008 to $50.5 million, compared to $44.2 million for the same period in the prior year.

Operating income in the Engineering & Evaluation segment increased 25.2% for the quarter to $2,288,000, compared to $1,828,000 for the same period in the prior year. Operating income in the Engineering & Evaluation segment increased 22.0% for the six months ended July 31, 2008 to $3,654,000, compared to $2,995,000 for the same period in the prior year.

Revenues from Technical Solutions increased 7.1% for the quarter to $8.8 million, compared to $8.2 million for the same period in the prior year. Revenues from Technical Solutions increased 3.7% for the six months ended July 31, 2008 to $17.2 million, compared to $16.6 million for the same period in the prior year.

Operating income in the Technical Solutions segment increased to $236,000 for the quarter, compared to $16,000 for the same period in the prior year. Operating income in the Technical Solutions segment increased to $406,000 for the six months ended July 31, 2008, compared to $138,000 for the same period in the prior year.

Conference Call

NTS is conducting a conference call to review the financial results today, at 10:00 AM Pacific Time (11:00 AM Mountain Time, 12:00 PM Central Time, 1:00 PM Eastern Time). The dial-in number for the call is 800-257-2182 (this is an operator assisted call; ask for the NTS 2009 Second Quarter Results conference call). A live web cast of the call can be accessed at www.ntscorp.com.