National Technical Systems Slips To Loss In Q2 - Quick Facts

(RTTNews) - National Technical Systems Inc. (NTSC) reported that net loss attributable to the company for the second quarter of fiscal year 2014 was $144,000, or $0.01 loss share, compared to net income of $1.6 million, or $0.13 per share, in the second quarter a year ago. The loss was primarily due to higher SG&A expense and restructuring and debt-related costs.

SG&A expense for the second quarter of fiscal year 2014 was $11.5 million, up 33.1 percent from $8.7 million in the second quarter a year ago. The year-over-year increase was mainly due to share-based compensation expense driven by the significant increase in the company's stock price in this fiscal year, one-time transaction costs relating to the recently announced proposed transaction with an affiliate of Aurora Capital Group and incentive compensation expense. SG&A was also impacted by the $0.6 million in support-related expenses that were previously included in cost of sales.

During the quarter, the company also incurred approximately $1.0 million of restructuring costs, principally driven by the centralization of administrative functions, and $1.2 million of expense relating to the early payment of the $7.0 million Mill Road subordinated note.

Revenues for the second quarter of fiscal year 2014 declined to $46.2 million from $47.3 million for the second quarter a year ago. The year-over-year decrease in quarterly revenue was primarily related to decreases in the defense and energy markets, partially offset by an increase in revenue in the aerospace market.