2022-12-19 | OTCQB:OPXS | Press Release

RICHARDSON, TX / ACCESSWIRE / December 19, 2022 / Optex Techniques Holdings, Inc. (OTCQB:OPXS), a number one producer of precision optical sighting programs for home and international army and industrial programs, introduced monetary highlights for the 12 months ended October 2, 2022.

Danny Schoening, CEO of Optex Techniques Holdings, Inc., commented, “This was once an exceptionally sturdy 12 months for Optex, pushed by means of remarkable fourth quarter shipments of $6.7M in Income riding an adjusted fourth quarter EBITDA of $1.4M. Our backlog is robust and rising with new consumers bringing multi 12 months methods additional broadening our product choices. Our consumers proceed to design our merchandise into their newest platforms and praise us for the worth that we offer. In the end, our shareholders expressed sturdy fortify for our inventory delicate which we consider was once a very good use of our surplus capital. Provide chain problems will proceed to reason some headwinds throughout the primary quarter of 2023; then again, our crew’s movements have already mitigated any long-term results of a nonetheless strained provide chain. Whilst 2022 was once a powerful and fulcrum 12 months, we consider persevered income expansion, profitability and variety in methods is a practical purpose for 2023.”

For the 12 months ended October 2, 2022, our overall revenues larger by means of $4.2, or 22.8% in comparison to the prior 12 months 12 months. The rise in income for the 12 months was once essentially pushed by means of an build up of $6.5 million in income on the Carried out Optics Heart phase, partly offset by means of a lower of $2.3 million in income on the Optex Richardson phase.

Consolidated gross margin for the 12 months ended October 2, 2022 larger by means of $2.4 million, or 94.3%, in comparison to the prior 12 months. The rise in gross margin is essentially as a result of an important shift in income from the Optex-Richardson phase to raised margin merchandise within the Carried out Optics phase mixed with upper absorption of the Carried out Optics phase constant overhead value base related to upper manufacturing ranges.

Running source of revenue larger by means of $2.1 million within the 12 months ended October 2, 2022 to an source of revenue of $1.6 million as in comparison to the prior 12 months working lack of $(0.5) million. The rise in working source of revenue is essentially as a result of larger income and gross margin on the Carried out Optics Heart phase.

As of October 2, 2022, Optex Techniques Holdings had running capital of $10.0 million, as in comparison to $12.9 million as of October 3, 2021. All through the 12 months ended October 2, 2022, we generated working money drift of $2.0 million and spent ($4.7) million for the acquisition of stocks towards our inventory repurchase plan and commonplace inventory delicate be offering and ($0.25) million on acquisitions of belongings and gear.

On September 22, 2021 the Corporate introduced authorization for an extra $1 million inventory repurchase program. All through the 12 months ended October 2, 2022, the Corporate bought 190,954 commonplace stocks underneath the September 2021 inventory repurchase plan at a price of $371 thousand. As of October 2, 2022, there was once a licensed stability of $560 thousand last to be spent towards the repurchase program.

On September 15, 2022, the Corporate’s “changed Dutch public sale” delicate be offering expired. In keeping with the phrases and stipulations of the delicate be offering, the Corporate authorised for acquire 1,603,773 stocks of commonplace inventory at a worth of $2.65 according to percentage, for an mixture value of roughly $4.25 million, except charges and bills on the subject of the delicate be offering. Those stocks represented roughly 19.3% of its stocks of commonplace inventory remarkable as of September 15, 2022.

We ended the 12 months 2022 with a money stability of $0.9 million as in comparison to $3.9 million as of the fiscal 12 months finish 2021. As of October 2, 2022, our remarkable accounts receivable was once $2.9 million. As of October 2, 2022, the Corporate had an impressive payable stability of 0 towards our line of credit score. The road of credit score was once renewed on April 12, 2022 via April 15, 2023 for a most borrowing quantity of $1.1 million and amended on November 21, 2022 to a most borrowing quantity of $2.0 million.

Our key efficiency measures for the 12 months ended October 2, 2022 and October 3, 2021 are summarized beneath.

Backlog as of October 2, 2022 has larger by means of $5.6 million or 20.5% to $32.9 million as in comparison to backlog of $27.3 million as of October 3, 2021.

We use adjusted profits sooner than hobby, taxes, depreciation and amortization (EBITDA) as an extra measure for comparing the efficiency of our trade as “web source of revenue” contains the numerous affect of noncash valuation features and losses on warrant liabilities, noncash reimbursement bills associated with fairness inventory problems, in addition to depreciation, amortization, hobby bills and federal source of revenue taxes. We consider that Adjusted EBITDA is a significant indicator of our working efficiency as it allows period-over-period comparisons of our ongoing core operations sooner than the excluded pieces, which we don’t imagine related to our operations. Adjusted EBITDA is a monetary measure now not required by means of, or introduced in line with, U.S. typically authorised accounting ideas (“GAAP”).

Adjusted EBITDA has obstacles and must now not be thought to be in isolation or an alternative choice to efficiency measures calculated underneath GAAP. This non-GAAP measure excludes positive money bills that we’re obligated to make. As well as, different corporations in our trade might calculate Adjusted EBITDA in a different way than we do or would possibly not calculate it in any respect, which limits the usefulness of Adjusted EBITDA as a comparative measure.

The desk beneath summarizes our twelve-month working effects for the years ended October 2, 2022 and October 3, 2021, in relation to each the GAAP web source of revenue measure and the non-GAAP Adjusted EBITDA measure. We consider that together with each measures permits the reader higher to guage our general efficiency.

Our Adjusted EBITDA larger by means of $2.1 million to $2.1 million throughout the 12 months ended October 2, 2022 as in comparison to $0.0 million throughout the 12 months ended October 3, 2021. The rise in EBITDA is essentially pushed by means of larger income and working benefit throughout the present 12 months as in comparison to the prior 12 months twelve-month era.

Internet source of revenue reduced by means of $0.8 million throughout the 12 months ended October 2, 2022 as in comparison to the prior 12 months. All through the 12 months ended October 2, 2022, we didn’t acknowledge both a achieve or a loss at the alternate in honest worth of warrants, because the warrants had expired on August 26, 2021 in line with their phrases. Through comparability, throughout the 12 months ended October 3, 2021, we known a achieve at the alternate in honest worth of warrants of $2.5 million.

We now have skilled vital subject material shortages throughout the 3 months ended October 2, 2022 and increasing into the primary 3 months of fiscal 12 months 2023 from two vital providers of our periscope covers and housings. Those shortages impact a number of of our periscope merchandise on the Optex Richardson phase. The delays in key elements, mixed with exertions shortages throughout the primary quarter of fiscal 12 months 2023 to this point have negatively impacted our manufacturing ranges and feature driven the anticipated supply dates into the second one and 3rd quarters of fiscal 12 months 2023. We’re aggressively in search of selection assets for those elements in addition to expanding worker recruitment projects and time beyond regulation to mitigate any proceeding dangers to the periscope line. As well as, one among our primary consumers for the Carried out Optics Heart has asked an important agenda prolong pushing their laser filter out unit supply schedules from the primary part into the second one part of fiscal 12 months 2023.

We think the mix of those problems to negatively affect our income throughout the primary 3 months of fiscal 12 months 2023. Our first quarter income projection is anticipated to be roughly 8-9% beneath the 2022 first quarter degree.

In November 2022, we larger our line of credit score to $2.0 million from $1.125 million to facilitate our running capital necessities because of the delays and larger backlog. We look forward to revenues, and dealing capital, in the second one part of fiscal 12 months 2023 to extend considerably from the primary six months with a complete restoration anticipated by means of fiscal 12 months finish 2023. In response to our present backlog, we look forward to an general build up for fiscal 12 months 2023 revenues as in comparison to the 2022 ranges.

On December 7, 2022 the Corporate submitted an utility to record its commonplace inventory at the NASDAQ Capital Marketplace. There aren’t any assurances (1) that the Corporate will proceed to satisfy the preliminary record standards all through the pendency of the appliance (together with with appreciate to its percentage charge), (2) that NASDAQ will approve the appliance or (3) on the subject of the timing of the sort of approval. If and when indexed on NASDAQ, there aren’t any assurances that the Corporate will proceed to satisfy NASDAQ’s persevered record necessities.

Highlights of the unaudited Condensed Consolidated and Section Result of Operations had been ready in line with GAAP. Those monetary highlights don’t come with all data and disclosures required within the consolidated monetary statements and footnotes, and must be learn together with our Annual Record on Shape 10-Ok for the fiscal 12 months ended October 2, 2022 filed with the SEC on December 19, 2022.

Optex Techniques Holdings, Inc.

Consolidated Steadiness Sheets

The accompanying notes in our Annual Record on Shape 10-Ok for the fiscal 12 months ended October 2, 2022 filed with the SEC on December 19, 2022 are an integral a part of those monetary statements.

Optex Techniques Holdings, Inc.

Consolidated Statements of Source of revenue

The accompanying notes in our Annual Record on Shape 10-Ok for the fiscal 12 months ended October 2, 2022 filed with the SEC on December 19, 2022 are an integral a part of those monetary statements.

ABOUT OPTEX SYSTEMS

Optex, which was once based in 1987, is a Richardson, Texas primarily based ISO 9001:2015 qualified worry, which manufactures optical sighting programs and assemblies, essentially for Division of Protection (DOD) programs. Its merchandise are put in on more than a few varieties of U.S. army land automobiles, such because the Abrams and Bradley combating automobiles, Gentle Armored and Armored Safety Automobiles, and feature been decided on for set up at the Stryker circle of relatives of automobiles. Optex additionally manufactures and delivers a lot of periscope configurations, rifle and surveillance attractions, and evening imaginative and prescient optical assemblies. Optex delivers its merchandise each at once to the army services and products and to high contractors. For additional info, please seek advice from the Corporate’s web page at www.optexsys.com.

Secure Harbor Observation

This press unlock accommodates positive forward-looking statements, as that time period is outlined within the Non-public Securities Litigation Reform Act of 1995, together with the ones on the subject of the services and products described herein. You’ll establish those statements by way of the phrases “might,” “will,” “may,” “must,” “would,” “plans,” “expects,” “anticipates,” “proceed,” “estimate,” “mission,” “intend,” “most likely,” “forecast,” “possible,” and an identical expressions. Those forward-looking statements constitute our expectancies, ideals, intentions or methods regarding long term occasions, together with, however now not restricted to, any statements referring to our monetary efficiency, together with revenues; our monetary place, together with running capital; backlog; follow-on orders; the affect of the COVID-19 pandemic; provide chain demanding situations, together with provider delays, exertions shortages and buyer agenda adjustments; the continuation of ancient tendencies; the sufficiency of our money balances for long term liquidity and capital useful resource wishes; the anticipated affect of adjustments in accounting insurance policies on our result of operations, monetary situation or money flows; expected issues and our plans for long term operations; and the financial system basically or the way forward for the protection trade. Those forward-looking statements contain dangers and uncertainties that might reason precise effects to fluctuate materially from the ones projected or expected. Such dangers and uncertainties come with, however aren’t restricted to, persevered investment of protection methods and army spending, the timing of such investment, common financial and trade stipulations, together with unexpected weak spot within the Corporate’s markets, results of persevered geopolitical unrest and regional conflicts, pageant, adjustments in era and strategies of selling, delays in finishing engineering and production methods, adjustments in buyer order patterns, adjustments in product combine, persevered luck in technological advances and turning in technological inventions, adjustments within the U.S. Executive’s interpretation of federal procurement regulations and rules, adjustments in spending because of coverage adjustments in any new federal presidential management, marketplace acceptance of the Corporate’s merchandise, shortages in elements, manufacturing delays because of efficiency high quality problems with outsourced elements, incapacity to totally understand the anticipated advantages from acquisitions and restructurings or delays in understanding such advantages, demanding situations in integrating obtained companies and reaching expected synergies, adjustments to export rules, will increase in tax charges, adjustments to typically authorised accounting ideas, difficulties in conserving key workers and consumers, unanticipated prices underneath fixed-price provider and gadget integration engagements, adjustments out there for microcap shares irrespective of expansion and price and more than a few different elements past our keep an eye on.

You will have to moderately imagine the sort of commentary and must remember that many elements may reason precise effects to fluctuate from the Corporate’s forward-looking statements. Those elements come with erroneous assumptions and a large number of different dangers and uncertainties, together with some which might be recognized and a few that aren’t. No forward-looking commentary can also be assured and precise long term effects might range materially. The Corporate does now not suppose the duty to replace any forward-looking commentary. You must moderately overview such statements in gentle of things described within the Corporate’s filings with the SEC, particularly on Paperwork 10-Ok, 10-Q and 8-Ok. In more than a few filings the Corporate has recognized necessary elements that might reason precise effects to fluctuate from anticipated or historical effects. You must remember that it isn’t conceivable to are expecting or establish all such elements. As a result, you must now not imagine the sort of record to be an entire record of all doable dangers or uncertainties.

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1-972-764-5718

SOURCE: Optex Techniques Holdings, Inc.

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