ETC Corporate https://www.etcusa.com Quality through integrity and technology. Fri, 18 Jul 2014 15:11:19 +0000 en-US hourly 1 http://wordpress.org/?v=3.9.1 ETC Ships Chambers Three and Four of Four Research Altitude Chambers to United States Air Forcehttps://www.etcusa.com/etc-ships-chambers-three-and-four-of-four-research-altitude-chambers-to-united-states-air-force/ https://www.etcusa.com/etc-ships-chambers-three-and-four-of-four-research-altitude-chambers-to-united-states-air-force/#comments Thu, 17 Jul 2014 18:57:32 +0000 https://www.etcusa.com/?p=3824 Continue reading ]]>

Wright-Patterson-chambers
 
SOUTHAMPTON, PA, USA, July 17, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today the shipment of the third and fourth chambers, completing the requirement of four Research Altitude Chambers to the 711th Performance Wing at Wright Patterson Air Force Base in Dayton, OH, USA.
 
The third and fourth altitude chambers, which are part of a total suite of four chambers sold to the U.S. Air Force, were shipped on June 24, 2014 and July 2, 2014, respectively. The chambers are currently undergoing installation, and will be integrated with the facility, as well as the other two chambers that are currently onsite.
 
Valued at over $37 million, the suite of research chambers allows maximum flexibility for the design and configuration of unique test scenarios under a wide range of environmental conditions. Each of the four chambers will have its own unique internal layouts and compartmentalization. Three of these four chambers will be “man-rated” allowing human occupancy for ongoing initiatives. The fourth chamber will be utilized for equipment and various research testing scenarios.
 
ETC`s suite of chambers will support the operational missions for the Aeromedical Research Mission that include:

  • Human performance assessment in moderate and high altitude conditions
  • Aircrew equipment development, qualification and Man Rating
  • Operationally focused aeromedical research
  • Non-medical engineering test work for aircraft/weapons programs

 
States William F. Mitchell, Chairman & CEO of ETC, “We are pleased to be finalizing this project and look forward to the commissioning and man-rating process.”

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ETC Announces Results of the 2014 Annual Meeting of Shareholders’ Votehttps://www.etcusa.com/etc-announces-results-of-the-2014-annual-meeting-of-shareholders-vote/ https://www.etcusa.com/etc-announces-results-of-the-2014-annual-meeting-of-shareholders-vote/#comments Thu, 17 Jul 2014 17:31:56 +0000 https://www.etcusa.com/?p=3819 Continue reading ]]>

SOUTHAMPTON, PA, USA, July 17, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today the results of shareholder voting from its 2014 Annual Meeting.
 
ETC’s Annual Meeting of the Shareholders was held at the executive offices of the Company, 125 James Way, County Line Industrial Park, Southampton, Pennsylvania 18966 on Tuesday, July 15, 2014, at 10:00 a.m., with shareholders voting favorably on the following two proposals:

  • The election of Dr. George K. Anderson, Dr. Linda J. Brent, Roger Colley, H.F. “Gerry” Lenfest, Michael D. Malone, William F. Mitchell, and Winston E. Scott as Directors of the Company.
  • The appointment of McGladrey LLP as the Company’s independent registered public accounting firm for the fiscal year ending February 27, 2015.
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ETC’s Sterilization Systems Group Receives $2.4 Million Control System Contracthttps://www.etcusa.com/etcs-sterilization-systems-group-receives-2-4-million-control-system-contract/ https://www.etcusa.com/etcs-sterilization-systems-group-receives-2-4-million-control-system-contract/#comments Mon, 14 Jul 2014 20:38:16 +0000 https://www.etcusa.com/?p=3816 Continue reading ]]>

SOUTHAMPTON, PA, USA, July 14, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today the recent award of a new contract totaling in excess of $2.4 million for the Sterilization Systems Group (“SSG”). The contract is for a comprehensive control system hardware and software upgrade for legacy controllers for a large medical device manufacturer.
 
The project includes upgrading eleven (11) sterilizer control systems with ETC`s Pro-GENESIS Advantage(TM) and integrating control and monitoring of 33 individual room controllers into one Supervisory Control and Data Acquisition (SCADA) System. The new control scheme will allow the customer to integrate disparate operations and information into one data warehouse and to consolidate all process information and reporting while meeting new industry standards for control and electronic record-keeping.
 
David Mitchell, Vice President and Business Unit Manager for ETC`s SSG stated, “We are very pleased to have been selected for this project. ETC`s investment in advanced control technologies and software is being recognized within the industry. There is a very large installed base of legacy control systems that don`t meet the international standards for control and reporting, and ETC is perfectly positioned to help those organizations upgrade their systems in a cost-effective and timely manner. We expect this part of our business to continue to grow well into the future.”

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ETC Wins Contract With Major Asian Customer for Supply of Multiple Ejection Seat Simulatorshttps://www.etcusa.com/etc-wins-contract-with-major-asian-customer-for-supply-of-multiple-ejection-seat-simulators/ https://www.etcusa.com/etc-wins-contract-with-major-asian-customer-for-supply-of-multiple-ejection-seat-simulators/#comments Mon, 14 Jul 2014 20:34:11 +0000 https://www.etcusa.com/?p=3813 Continue reading ]]>


 
SOUTHAMPTON, PA, USA, July 14, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”), announced today the signing of a contract with a leading military in South Asia for the procurement of three of its state-of-the-art Ejection Seat Simulators (ESS). The award followed a highly competitive bid process that included field evaluation trials of all potential vendors where it was concluded that ETC`s technology was superior. The new ESS will enable pilots to practice when to make the correct decision to eject, along with the proper procedures to employ before actually ejecting from the aircraft. The systems will be delivered to three separate locations, with installations expected to begin in early 2016.
 
“We`re very pleased with the opportunity to work with such a significant player in the global defense market,” said William F. Mitchell, Chairman & CEO of ETC. “It`s a great step for the Company, and will be an important project for our continued international expansion. We look forward to training their aircrew for many years to come.”
 
ETC`s groundbreaking ESS combines high-fidelity flight simulation and procedural training to replicate real world ejection situations. The system allows pilots to practice the correct decision-making and emergency procedures for successfully ejecting from the aircraft. The ESS design enhances the training experience by creating a realistic simulation of the ejection sequence that includes simulated aircraft emergencies. The device immerses the pilot into the flight scenario by constructing all of the events leading up to the ejection sequence in a dynamic flight environment; thereby, training the pilot in both the decision to eject and the correct ejection procedures, making it the premier ejection trainer.
 
As required by the contract, ETC will also provide a “turn-key” solution for this procurement, including detailed building designs and necessary construction for the installation of each simulator. Upon project completion, ETC will have manufactured and installed 22 ESS`s worldwide.

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ETC Announces Fiscal 2015 First Quarter Resultshttps://www.etcusa.com/etc-announces-fiscal-2015-first-quarter-results/ https://www.etcusa.com/etc-announces-fiscal-2015-first-quarter-results/#comments Fri, 11 Jul 2014 19:01:44 +0000 https://www.etcusa.com/?p=3806 Continue reading ]]>

SOUTHAMPTON, PA, USA, July 11, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for its fiscal 2015 first quarter ended May 30, 2014 (the “2015 first quarter”).
 
Fiscal 2015 First Quarter Results of Operations
 
Net (Loss) Income Attributable to ETC
Net loss attributable to ETC was $197 thousand, or $0.02 diluted loss per share, in the 2015 first quarter, compared to $31 thousand of net income attributable to ETC during its fiscal 2014 first quarter ended May 31, 2013 (the “2014 first quarter”), equating to a $0.01 diluted loss per share. The $0.2 million variance reflects a decrease in income before income taxes of $0.4 million due primarily to a $0.9 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage, offset in part, by a $0.5 million decrease in operating expenses, resulting from a decrease in commissions due to lower net sales and an on-going effort to reduce non-revenue generating expenses. The $0.4 million decrease in income before income taxes was offset, in part, by a $0.2 million variance between the income tax benefit recorded in the 2015 first quarter and the income tax expense recorded in the 2014 first quarter.
 
Net Sales
Net sales in the 2015 first quarter were $10.7 million, a decrease of $1.9 million, or 15.1%, compared to 2014 first quarter net sales of $12.6 million. The reduction reflects decreased ATS sales to the U.S. Government and International customers, and decreased sales of monoplace chambers to Domestic customers, offset in part, by increased sales of our other Commercial/Industrial products to Domestic customers. Given the current progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2015.
 
Gross Profit
Gross profit for the 2015 first quarter was $2.8 million compared to $3.7 million in the 2014 first quarter, a decrease of $0.9 million, or 23.9%. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to inefficiencies as a result of additional work required on several contracts, for which we are currently pursuing recovery. On April 24, 2014, we reached a favorable settlement agreement on the first of these recoveries that partially offset the effects of the additional work. Gross profit margin as a percentage of net sales decreased to 26.4% for the 2015 first quarter compared to 29.5% for the 2014 first quarter.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2015 first quarter were $2.9 million, a decrease of $0.5 million, or 14.0%, compared to $3.4 million for the 2014 first quarter. The decrease is primarily the result of a decrease in commissions due to lower net sales and an on-going effort to reduce non-revenue generating expenses, offset in part, by an increase in legal fees associated primarily with the aforementioned recovery effort.
 
Interest Expense, Net
Interest expense, net, for the 2015 first quarter was $149 thousand compared to $172 thousand in the 2014 first quarter, a decrease of $23 thousand, or 13.4%, due primarily to a lower level of bank borrowing, which was achieved by a significant increase in cash generated by operating activities.
 
Cash Flows from Operating, Investing, and Financing Activities
During the 2015 first quarter, as a result of a decrease in accounts receivable and costs and estimated earnings in excess of billings on uncompleted long-term percentage of completion (“POC”) contracts, the Company generated $5.1 million of cash from operating activities compared to $4.9 million of cash used in operating activities during the 2014 first quarter. Under POC revenue recognition, these accounts represent the timing differences of spending on production activities versus the collecting of customer payments.
 
Cash used for investing activities primarily relates to funds used for capital expenditures of equipment and software development. The Company’s investing activities used $0.4 million in the 2015 first quarter compared to $0.3 million in the 2014 first quarter.
 
The Company’s financing activities used $4.8 million of cash in the 2015 first quarter, which primarily reflected repayments under the Company’s various lines of credit and payments on the Term Loan, and was offset, in part, by a decrease in restricted cash. In the 2014 first quarter, net cash provided by financing activities totaled $3.7 million, primarily from borrowings under the Company’s various lines of credit and a decrease in restricted cash, offset in part, by payments on the Term Loan.
 
ETC Announces Fiscal 2015 First Quarter Results

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ETC Simulation Awarded Contract for Homeland Security Training Center at Concordia University – Portlandhttps://www.etcusa.com/etc-simulation-awarded-contract-for-homeland-security-training-center-at-concordia-university-portland/ https://www.etcusa.com/etc-simulation-awarded-contract-for-homeland-security-training-center-at-concordia-university-portland/#comments Wed, 11 Jun 2014 14:37:56 +0000 https://www.etcusa.com/?p=3790 Continue reading ]]>

ConcordiaPressRelease

Southampton, PA, USA, June 11, 2014 – (ACN Newswire) – Environmental Tectonics Corporation’s (OTC Pink: ETCC)(“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has announced today the signing of a contract with Concordia University Portland to deliver a complete, multi-level ADMS-Command training suite to its’ new Homeland Security Simulation Center in Portland, Oregon U.S.
 
The Advanced Disaster Management Simulator (“ADMS”) suite, which will be housed at Concordia’s Homeland Security Simulation Center at the new Columbia River Campus, includes an On-Scene Incident Command Room with a 180-degree immersion theater screen, four field unit positions and an Emergency Operations Center (“EOC”) room, designated to facilitate integrated and multi-level team training. The EOC station, located in a separate room from the incident command and field unit stations, includes a multi-monitor wall for displaying 2D mapping and logistics information, as well as the 3D on-scene visuals such as a helicopter or CCTV view. In addition to the installed ADMS-Command Suite, a portable ADMS-Command system has already been delivered to Concordia for use during off-site training exercises and events. The portable system can be connected to the installed system upon completion.
 
The Simulation Center will be available for rental to groups outside the university and beginning this fall, ADMS will be integrated into the main curriculum for the Homeland Security and Emergency Preparedness Programs at Concordia University. Students will be faced with any number of virtual incidents, ranging from traffic accidents to a terrorist attack involving chemical releases. The artificial intelligence and physics-based effects embedded into all ADMS systems allow the scenario to unfold as it would in the real world, requiring the students to make real-time decisions as the incident progresses.
 
“The goal of Concordia’s Homeland Security degree is simple: to provide our students the knowledge, skills and leadership abilities they’ll need in their homeland security and emergency management careers and to prepare servant leaders to change the world,” said Scott Winegar, Concordia’s Director of Homeland Security. “By offering this hands-on learning experience, we are bridging the gap between classroom theory and real world experience.”
 
About ADMS
ADMS(TM) is a high-fidelity Virtual Reality Simulation Training Platform that comprises multiple products including Incident Command training from technical to strategic level (ADMS-Command), emergency response and force protection specific to a military environment (ADMS-Airbase), driver training and vehicle operation (ADMS-ARFF and ADMS-Drive) and multiple level police coordination for crowd management and riot control (ADMS-Control). ETC’s signature True Simulation Technology blends physics-based simulation, embedded artificial intelligence, accurate animations, photo-realistic graphics, ambient sounds, vehicle controls, and motion platforms to totally immerse trainees in the exercise. ADMS enables first responders and emergency managers to prepare at all levels of response in a safe, economical and environmentally-conscious way.

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ETC Announces Fiscal 2014 Full Year and Fourth Quarter Resultshttps://www.etcusa.com/etc-announces-fiscal-2014-full-year-and-fourth-quarter-results/ https://www.etcusa.com/etc-announces-fiscal-2014-full-year-and-fourth-quarter-results/#comments Tue, 03 Jun 2014 18:50:11 +0000 https://www.etcusa.com/?p=3760 Continue reading ]]>

SOUTHAMPTON, PA, USA, June 3, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for fiscal 2014 and its fiscal 2014 fourth quarter ended February 28, 2014.
 
Fiscal 2014 Results of Operations

Net Income Attributable to ETC
Net income attributable to ETC was $0.6 million, or $0.01 per diluted share, in fiscal 2014 versus $4.9 million, or $0.19 per diluted share, in fiscal 2013; a decrease of $4.3 million, or 87.9%. The decrease in net income attributable to ETC reflects a decrease in income before income taxes of $7.5 million, or 85.6%, due primarily to a $10.3 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage, offset by a $2.8 million decrease in operating expenses, resulting primarily from an on-going effort to reduce non-revenue generating expenses.
 
Net Sales
Net sales for fiscal 2014 were $48.3 million, a decrease of $14.5 million, or 23.1%, from fiscal 2013. The reduction reflects decreased sales within our Aerospace segment to the U.S. Government and decreased sales of sterilizers and environmental testing and simulation devices to Domestic customers, offset in part, by increased sales within our Aerospace segment to International customers. Given the current progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2015.
 
Gross Profit
Gross profit for fiscal 2014 decreased by $10.3 million, or 41.5%, compared to fiscal 2013. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to inefficiencies as a result of additional work required on several contracts, for which we are currently pursuing recovery. On April 24, 2014, we reached a favorable settlement agreement on the first of these recoveries that partially offset the effects of the additional work. Gross profit margin as a percentage of net sales decreased to 30.2% in fiscal 2014 compared to 39.6% in fiscal 2013.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for fiscal 2014 were $12.1 million, a decrease of $2.8 million, or 18.9%, compared to $14.9 million for fiscal 2013. This decrease is primarily the result of an on-going effort to reduce non-revenue generating expenses, as well as lower commissions due to lower net sales, offset in part, by an increase in research and development expenses due to less grant payments received to offset expenses in fiscal 2014.
 
Interest Expense, Net
Interest expense, net for fiscal 2014 was $0.8 million compared to $1.0 million in fiscal 2013, a decrease of $0.2 million, or 19.6%, despite a higher level of bank borrowing due primarily to the results of the 2012 Financial Restructuring.
 
Fiscal 2014 Fourth Quarter Results of Operations

Net Income Attributable to ETC
Net income attributable to ETC was $0.3 million, or $0.01 per diluted share, in the fiscal 2014 fourth quarter versus $0.8 million, or $0.04 per diluted share, in the fiscal 2013 fourth quarter; a decrease of $0.5 million, or 62.4%. The decrease in net income attributable to ETC reflects a decrease in income before income taxes of $0.9 million, or 55.7%, due primarily to a $2.2 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage, offset by a $1.4 million decrease in operating expenses, resulting primarily from an on-going effort to reduce non-revenue generating expenses.
 
Net Sales
Net sales for the fiscal 2014 fourth quarter were $11.6 million, a decrease of $15.1 million, or 22.7%, compared to the fiscal 2013 fourth quarter. The reduction primarily reflects decreased sales within our Aerospace segment to the U.S. Government. Given the current progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2015.
 
Gross Profit
Gross profit for the fiscal 2014 fourth quarter decreased by $2.2 million, or 38.3%, compared to the fiscal 2013 fourth quarter. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to inefficiencies as a result of additional work required on several contracts, for which we are currently pursuing recovery. On April 24, 2014, we reached a favorable settlement agreement on the first of these recoveries that partially offset the effects of the additional work. Gross profit margin as a percentage of net sales decreased to 30.9% for the fiscal 2014 fourth quarter compared to 38.7% for the fiscal 2013 fourth quarter.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the fiscal 2014 fourth quarter were $2.6 million, a decrease of $1.4 million, or 34.5%, compared to $4.0 million for the fiscal 2013 fourth quarter. This decrease is primarily the result of an on-going effort to reduce non-revenue generating expenses, as well as lower commissions due to lower net sales, offset in part, by an increase in research and development expenses due to less grant payments received to offset expenses in the fiscal 2014 fourth quarter.
 
Interest Expense, Net
Interest expense, net for both the fiscal 2014 fourth quarter and the fiscal 2013 fourth quarter was $0.2 million due to the results of the 2012 Financial Restructuring having an equivalent effect on both quarters.
 
Cash Flows from Operating, Investing, and Financing Activities
During fiscal 2014, as a result of an increase in costs and estimated earnings in excess of billings on uncompleted long-term percentage-of-completion (“POC”) contracts and decreases in accounts payable, customer deposits, and other accrued liabilities, the Company used $0.6 million of cash in operating activities compared to $7.3 million of cash provided by operating activities in fiscal 2013.
 
Cash used for investing activities primarily relates to funds used for capital expenditures in property, plant, and equipment and software development. The Company’s fiscal 2014 investing activities used $1.4 million, which consisted primarily of equipment and software enhancements for our ATFS technology, and costs to upgrade CIS demonstration equipment and existing information technology systems. This is an increase of $0.1 million from cash used in investing activities in fiscal 2013. 
The Company’s financing activities generated $0.1 million during fiscal 2014 as compared to using $6.4 million in fiscal 2013. The principal uses of cash were $4.4 million of payments on the Term Loan and $0.4 million in Preferred Stock dividends. These were offset by $3.7 million in borrowings under the Company’s various lines of credit and a $1.2 million reduction in restricted cash.
 
Board of Directors Actions
On May 28, 2014, the Company’s Board of Directors (the “Board of Directors”) unanimously approved a resolution to amend and restate the Company’s bylaws to, among other things, amend certain governance provisions to reflect recent changes at the Company (e.g., bifurcation of the roles of Chief Executive Officer and President and no longer being an SEC reporting company), to update the bylaws under the Pennsylvania Business Corporation Law, and to make certain other conforming and technical changes. Some of these amendments relate to the composition of the Board of Directors and its committees, advance notice provisions for shareholder meetings, indemnification, and action by written consent. The Board of Directors also approved an amendment to Section 8(b) of the Statement With Respect to Shares of the Series E Preferred Stock of the Company, clarifying the composition of the Board of Directors. These amendments were also approved by the written consent of the holder of all of the Series E Preferred Stock and holders of Common Stock. A copy of the amended and restated bylaws and the amendment to Section 8(b) are available to shareholders upon request.
 
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ETC’s Sterilization Systems Group Receives Over $2.5 Million in New Contractshttps://www.etcusa.com/etcs-sterilization-systems-group-receives-over-2-5-million-in-new-contracts/ https://www.etcusa.com/etcs-sterilization-systems-group-receives-over-2-5-million-in-new-contracts/#comments Thu, 01 May 2014 17:02:46 +0000 https://www.etcusa.com/?p=3740 Continue reading ]]>

SOUTHAMPTON, PA, USA, May 1, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today the recent awards of several new contracts totaling in excess of $2.5 million for the Sterilization Systems Group (“SSG”). The contracts combined include a control system and software upgrade for an existing customer, a large sectional autoclave for a biomedical research firm, and four Ethylene Oxide sterilizers for medical device sterilization.
 
The awarded contracts are a result of ETC’s capability to offer flexible and customizable solutions for the lab research, life science, and medical device industries.
 
David Mitchell, Vice President and Business Unit Manager for ETC’s SSG stated, “These projects validate our approach to delivering unique engineering solutions to an increasingly sophisticated marketplace. Our ability to rapidly design and produce unique sterilization systems, along with the control systems software that accompany these solutions, has led to our continued success as a world-class provider.”

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ETC’s Aircrew Training Systems Awarded Contract to Supply United States Air Force With Spatial Disorientation Flight Trainershttps://www.etcusa.com/etcs-aircrew-training-systems-awarded-contract-to-supply-united-states-air-force-with-spatial-disorientation-flight-trainers/ https://www.etcusa.com/etcs-aircrew-training-systems-awarded-contract-to-supply-united-states-air-force-with-spatial-disorientation-flight-trainers/#comments Wed, 16 Apr 2014 15:24:27 +0000 https://www.etcusa.com/?p=3711 Continue reading ]]>

Spatial Disorientation Flight Trainers
 
SOUTHAMPTON, PA, USA, April 16, 2014 – Aircrew Training Systems (“ATS”), a division of Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”), announced today that it signed a contract with the Air Force Life Cycle Management Center (“AFLCMC”) to provide up to four spatial disorientation flight simulators following a competitive bidding process. The AFLCMC selected ETC’s GYRO IPT II (Integrated Physiological Trainer) to fulfill the requirements of their new Spatial Disorientation (SD) Training System Program. The GYRO IPT II will support the SD training requirements in the Air Education and Training Command Student Undergraduate Pilot Training syllabus. The system will expose undergraduate pilots and aircrew to typical vestibular and visual illusions found in aviation, enabling them to recognize, confirm, prevent and recover from SD. The four units are scheduled for delivery to Sheppard AFB TX, Laughlin AFB TX, Columbus AFB MS and Vance AFB OK, with installation expected to begin in the spring of 2015.
 
“We are thrilled to be selected as the contractor for such an important program,” said Alper Kus, Vice President of ATS. “Spatial disorientation is still a major contributor to aircraft mishaps. This system will help pilots to better handle the effects of SD and ultimately lead to a safer flight environment for all aircrew.”
 
ETC’s GYRO IPT II provides pilots with a hands-on, realistic, full motion, spatial disorientation flight training experience. While in control of a simulated flight, the pilot can be exposed to a variety of selected disorienting illusions. Unlike simple disorientation demonstrators, a pilot in the GYRO IPT II has full closed loop control of the simulation before, during and after the illusion. This capability creates a fully interactive flight training environment where the pilot must maintain control of the simulator and fly through the illusion to a successful resolution during training.
 
This acquisition marks the fourth contract awarded to ETC by the USAF in the past five years.
During 2009 and 2010, ETC was also selected to provide its Authentic Tactical Fighting System (ATFS-400) and a suite of four Altitude Chambers to Wright-Patterson AFB OH. In 2012, ETC received an additional contract for an Altitude Chamber to be delivered to the Spanish Air Force via Foreign Military Sales (FMS).

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ETC’s Aircrew Training Systems Awarded Contract from UAE Air Force for Pilot Selection Systemhttps://www.etcusa.com/etcs-aircrew-training-systems-awarded-contract-from-uae-air-force-for-pilot-selection-system/ https://www.etcusa.com/etcs-aircrew-training-systems-awarded-contract-from-uae-air-force-for-pilot-selection-system/#comments Thu, 20 Mar 2014 13:42:43 +0000 https://www.etcusa.com/?p=3706 Continue reading ]]>

SOUTHAMPTON, PA, USA, March 20, 2014 – Aircrew Training Systems (“ATS”), a division of Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”), announced today the signing of a contract with the United Arab Emirates Air Force (“UAEAF”) for the procurement of its state-of-the-art Pilot Selection System (“PSS”). The PSS will help the UAEAF to select the most qualified pilot candidates to continue on to flight training school, and will be installed at Khalifa bin Zayed Air College in Al Ain, UAE next spring.
 
ETC’s PSS is an integrated testing program used to determine whether candidates have the required aptitude for becoming a pilot. It evaluates potential aircrew by utilizing extensive cognitive and psychomotor testing. After the most qualified candidates are selected, their ability to execute conscious attention management is assessed in a dynamic motion-based flight simulator to fully determine their suitability for flight training. The system is designed to evaluate large numbers of pilot candidates in a short period of time to select the most qualified flight crew to continue on to training.
 
“We are very pleased to be working once again with the UAE Air Force,” said Alper Kus, Vice President of ATS. “This advanced system will not only provide them with a reliable means of screening pilot candidates, but save valuable training resources in the process.”
 
ETC has been supplying the UAE Armed Forces with training equipment for nearly three decades, since it first commissioned their Aerospace Medical Training Center in Abu Dhabi in 1986.

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ETC’s VP of BioMedical Systems to Present at DFConhttps://www.etcusa.com/etcs-vp-of-biomedical-systems-to-present-at-dfcon/ https://www.etcusa.com/etcs-vp-of-biomedical-systems-to-present-at-dfcon/#comments Wed, 19 Mar 2014 13:36:04 +0000 https://www.etcusa.com/?p=3701 Continue reading ]]>

SOUTHAMPTON, PA, USA, March 19, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today that Mr. Ken Rideout, Vice President of ETC’s BioMedical Systems, has been selected as a keynote speaker during the Pre-Con Program at the Diabetic Foot Global Conference (“DFCon”) in Los Angeles, CA on Wednesday, March 19, 2014.
 
The focus of the Pre-Con Program is Nuts & Bolts of a Hyperbaric & Wound Care Center. Mr. Rideout will discuss the topics of “Assessing Your Market: Hyperbaric” and “Equipment and Site Selection.”
 
“I am honored to have been chosen to speak on this very important topic in diabetic wound care,” states Ken Rideout, “I am looking forward to leaving the audience with some very valuable insight regarding HBOT chamber selection.”
 
ETC’s monoplace hyperbaric chambers, provided by the company’s ETC BioMedical Systems Group, include BARA•PRESS(TM) and SMOOTH-RIDE(TM). BARA•PRESS is the software which can control, as well as record, the treatment, allowing the operator to monitor the patient more easily, consistently and accurately. SMOOTH-RIDE™ is a pressure change technology that enhances patient comfort by reducing the incidence of barotrauma by 67 percent, ensuring more patients complete all their treatment sessions. The BARA-MED “Select” also offers an undercarriage gurney storage area.

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ETC Selected to Provide Spatial Disorientation Trainer to Colombian Air Forcehttps://www.etcusa.com/etc-selected-to-provide-spatial-disorientation-trainer-to-colombian-air-force/ https://www.etcusa.com/etc-selected-to-provide-spatial-disorientation-trainer-to-colombian-air-force/#comments Fri, 14 Mar 2014 19:15:21 +0000 https://www.etcusa.com/?p=3695 Continue reading ]]>

spatial-disorientation-flight-trainer
 
SOUTHAMPTON, PA, USA, March 14, 2014 – Aircrew Training Systems (“ATS”), a division of Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”), announced today that it was selected by the U.S. Army Contracting Command to provide the Colombian Air Force (“FAC”) with a spatial disorientation flight simulator following a competitive bidding process. The GYRO IPT II (Integrated Physiological Trainer) will help FAC pilots to recognize in-flight conditions that contribute to spatial disorientation and how to fly to a successful resolution. The new system will be installed at the FAC Aerospace Medicine Center (CEMAE) in Bogotá, Colombia next spring.
 
ETC’s GYRO IPT II provides pilots with a hands-on realistic, full motion, spatial disorientation flight training experience. While in control of a simulated flight, the pilot can be exposed to a variety of selected disorienting illusions. Unlike simple disorientation demonstrators, a pilot in the GYRO IPT II has full closed loop control of the simulation before, during and after the illusion. This capability creates a fully interactive flight training environment where the pilot must maintain control of the simulator and fly through the illusion to a successful resolution during training.
 
“Spatial disorientation remains a major cause of aircraft accidents,” said Alper Kus, Vice President of ATS. “We are pleased to provide the Colombian Air Force with a training solution that will significantly enhance pilot safety and lead to tremendous cost savings in the near future.”
 
The new GYRO IPT II will complement the suite of training devices already operating at CEMAE. The facility is also home to an Altitude Chamber, Night Vision Training System and Vestibular Illusion Demonstrator, all previously provided by ETC.

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ETC’s The NASTAR Center Announces NASTAR Camp Registration Open for Summer 2014https://www.etcusa.com/etcs-the-nastar-center-announces-nastar-camp-registration-open-for-summer-2014/ https://www.etcusa.com/etcs-the-nastar-center-announces-nastar-camp-registration-open-for-summer-2014/#comments Thu, 06 Mar 2014 18:58:25 +0000 https://www.etcusa.com/?p=3674 Continue reading ]]>

NASTAR Camp Registration Open for Summer 2014
 
SOUTHAMPTON, PA, USA, March 6, 2014 – The National AeroSpace Training And Research (NASTAR®) Center (www.nastarcenter.com), the premier commercial space training and research center in the world, will once again host its popular NASTAR Camp program for students in grades 2 – 12.
 
NASTAR Camp sessions will take place Monday – Friday, from 9:00 AM – 4:00 PM at our facilities located at 125 James Way, Southampton, PA 18966. The NASTAR Camp curriculum has been structured to be fun, while it reinforces the Pennsylvania Academic Standards for Science and Technology and Engineering (STEM) Education. All curricula and activities are age and grade appropriate.
 
Each week-long session has a particular theme with relevant activities that comprise about half the program; the rest of the week students assemble and fly balsa gliders, pilot an aircraft simulator, build and launch model rockets, and engage in other perennial favorite activities. The emphasis throughout the week is on hands-on activities and projects that engage students and foster inquiry-based learning to help them better understand science and technology.
 
William F. Mitchell, Chairman and CEO of ETC, stated “We are pleased to open the NASTAR Center to students for this program. This nation is facing future shortages of skilled engineers and scientists. We hope NASTAR Camp will inspire some of these young people to pursue technical careers.”
 
The schedule for NASTAR Camp 2014 is as follows:
 
July 7 – 11: NASTAR Camp Grades 4 – 6 (Forces and Motion)
July 14 – 18: NASTAR Camp Grades 4 – 6 (Living in Space)
July 21 – 25: NASTAR Camp Grades 7 – 8 (Energy)
July 28 – Aug. 1: NASTAR Camp Grades 4 – 6 (Forces and Motion)
Aug. 4 – 8: NASTAR Camp Grades 9 – 12 (Physics and Engineering)
Aug. 4 – 8: NASTAR Camp Grades 7 – 8 (The Solar System)
Aug. 11 – 15: NASTAR Camp Grades 2 – 3 (Observing Our World)
Aug. 11 – 15: NASTAR Camp Grades 4 – 6 (Living in Space)
 
The cost for NASTAR Camp is $250.00 per week. For NASTAR Camp enrollment information, please contact Greg Kennedy at (215) 355-9100, X 1512, or gkennedy@nastarcenter.com. A registration packet may also be downloaded from the NASTAR Center website, www.nastarcenter.com.

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ETC’s AeroMedical Training Institute (AMTI) Completes High G and Ejection Training for Ecuadorian Air Force Pilotshttps://www.etcusa.com/etcs-aeromedical-training-institute-amti-completes-high-g-and-ejection-training-for-ecuadorian-air-force-pilots/ https://www.etcusa.com/etcs-aeromedical-training-institute-amti-completes-high-g-and-ejection-training-for-ecuadorian-air-force-pilots/#comments Fri, 28 Feb 2014 20:27:36 +0000 https://www.etcusa.com/?p=2927 Continue reading ]]>

High G and Ejection Training for Ecuadorian Air Force Pilots
 
SOUTHAMPTON, PA, USA, February 28, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today that ETC‘s AeroMedical Training Institute (AMTI) recently completed training of Ecuadorian Air Force Pilots. The Ecuadorian Air Force is responsible for the protection of Ecuador’s airspace as well as participating in many humanitarian and logistic missions into the Amazon-region of the country.
 
The AMTI provided classroom instruction and practical application training sessions in the subject areas of sustained high G and tactical aviation, and emergency aircraft egress. All practical application training sessions utilized the Authentic Tactical Fighting System (ATFS-400) and Ejection Seat Trainer (EST) which are permanently resident at ETC’s National AeroSpace Training And Research (NASTAR) Center. The squadron of six pilots were successfully trained in a five day period.
 
The completion of high G training, places the Ecuadorian Air Force as one of the first countries in the world to utilize ATFS-400 technology for combining basic G training with tactical flight training. According to Glenn King, the AMTI’s Director of Training, “Prior to their high G training, the pilots were only capable of sustaining approximately 4 – 5 G’s. Upon completion of training, all pilots were able to successfully employ weapons and score several bandit “kills” while sustaining up to 9 G’s.”
 
High G Training for Ecuadorian Air Force Pilots
 
Ken Ginader, ETC’s Director of Business Development for Tactical Flight Training states, “ETC has conducted several tactical training events in the last six years and has noticed most fighter pilots believed they knew how to perform the Anti-G Straining Maneuver (AGSM), but in reality demonstrated otherwise. However, following three days of AMTI training for Air Combat Maneuvering (ACM) engagements, every fighter pilot relearned how to perform a proper AGSM. With budgetary constraints resulting in a reduction of flight hours for tactical pilots in most every air force worldwide, it is important, especially from a risk management perspective, that tactical pilots conduct periodic high G training in a tactical flight training event. With the ATFS-400, it is now possible to conduct high G training while performing a tactical fight training event in flight simulation.”
 
King said, “This type of flight training validates the concept of combining physiology training with tactical flight training to substantially reduce training and operational costs to our customers.”
 
The AMTI provides state of the art physiology training to clients worldwide, serving the training and research needs of the military and civil aerospace community. AMTI’s training programs are highly modular and flexible and can accommodate a wide range of aerospace training and research requirements.

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ETC Simulation delivers Airport Fire Truck Simulator for Kuala Lumpur International Airporthttps://www.etcusa.com/etc-simulation-delivers-airport-fire-truck-simulator-for-kuala-lumpur-international-airport/ https://www.etcusa.com/etc-simulation-delivers-airport-fire-truck-simulator-for-kuala-lumpur-international-airport/#comments Tue, 18 Feb 2014 21:15:40 +0000 https://www.etcusa.com/?p=2932 Continue reading ]]>

KLIA-release

Southampton, Pa., USA, February 18, 2014 – Environmental Tectonics Corporation’s (OTC Pink: ETCC)(“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has delivered for Kuala Lumpur International Airport an ADMS-ARFF simulation training system to Rosenbauer International AG (“Rosenbauer”) in Austria.
 
The Rosenbauer Panther simulator will be used to train the operation of an Aircraft Rescue and Firefighting (“ARFF”) truck as well as tactical positioning in the event of an aircraft emergency. The full cabin simulator will have the same layout as the real Panther vehicle as used by Malaysian Airports Holdings Berhad (“MAHB”), including a functional dashboard and center console with controls for the roof and bumper turrets. Also featured in the simulation is a geo-specific environment of the Kuala Lumpur International Airport and an Incident Commander response vehicle specifically designed to reflect those found in Malaysia.
 
“The full cabin ARFF simulator allows the airport fire and rescue vehicle operators to build the experience and gain the confidence necessary to perform under extreme conditions in a variety of situations, and ultimately be better prepared for real-life incidents and live-exercises. ADMS-ARFF is a green airport solution, as no fire suppression agents or live burns are involved to acquire the training necessary to operate an ARFF truck, thus saving money, minimizing risk and protecting the environment.” said Lori Bozenbury, Director of Business Development at ETC Simulation.
 
Located in Selangor, Kuala Lumpur International Airport is the largest airport in Malaysia and regularly ranks as one of the busiest airports in the world for international travelers.
 
About ADMS
ADMS(TM) is a high-fidelity Virtual Reality Simulation Training Platform that comprises multiple products including Incident Command training from technical to strategic level (ADMS-Command), emergency response and force protection specific to a military environment (ADMS-Airbase), driver training and vehicle operation (ADMS-ARFF and ADMS-Drive) and multiple level police coordination for crowd management and riot control (ADMS-Control). ETC’s signature True Simulation Technology blends physics-based simulation, embedded artificial intelligence, accurate animations, photo-realistic graphics, ambient sounds, vehicle controls, and motion platforms to totally immerse trainees in the exercise. ADMS enables first responders and emergency managers to prepare at all levels of response in a safe, economical and environmentally-conscious way.
 
About ETC Simulation
ETC Simulation (www.ETCsimulation.com), located in Orlando, FL, specializes in virtual reality emergency response and disaster management training systems. Their hallmark product, ADMS(TM), is a proven tool for training emergency management personnel at all levels, with more than one million successful training hours completed globally.

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ETC Simulation delivers ADMS Training Systems to the International Fire Training Centre, United Kingdomhttps://www.etcusa.com/etc-simulation-delivers-adms-training-systems-to-the-international-fire-training-centre-united-kingdom/ https://www.etcusa.com/etc-simulation-delivers-adms-training-systems-to-the-international-fire-training-centre-united-kingdom/#comments Mon, 13 Jan 2014 21:26:19 +0000 https://www.etcusa.com/?p=2936 Continue reading ]]>

International Fire Training Centre

Environmental Tectonics Corporation’s (OTC Pink: ETCC)(“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has delivered to the Serco International Fire Training Centre (“IFTC”) an Advanced Disaster Management Simulator (“ADMS”) system. An ADMS user since 2001, IFTC in Darlington, United Kingdom uses their ADMS system to train aviation and industrial firefighters, as well as response personnel.

The newly delivered system is installed in IFTC’s new dedicated virtual reality training suite located at Durham Tees Valley Airport. The training system includes British left hand driving responder vehicles and crews, civil and military aircraft, head counts in the casualty collection area for firefighters and emergency medical services. The system also has the capability to train for off-airport aircraft incidents, as well as industrial and petrochemical emergencies for training industrial responders.

“Our clients in the fire and rescue sector are the ones on the front line so they know that training should never be about ticking boxes. IFTC is known to have one of the best fire grounds of its kind anywhere in the world. By investing in the new ADMS system, we now have the versatile and relevant technology to provide a whole new dimension to the learning they will get here.” said Dennis Perkins, Director of Training at IFTC.

Accredited by the United Kingdom Civil Aviation Authority and OPITO, IFTC provides mandated training programs and recommendations of the International Civil Aviation Organization. IFTC has trained aviation firefighters and emergency responders from more than 80 countries since 1981. The centre includes 20 acres dedicated for live fire training, an ADMS virtual reality suite to train and test decision making under high pressure situations, and fully equipped classrooms to teach firefighting, rescue and incident command.

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ETC Announces Fiscal 2014 Third Quarter Resultshttps://www.etcusa.com/etc-announces-fiscal-2014-third-quarter-results/ https://www.etcusa.com/etc-announces-fiscal-2014-third-quarter-results/#comments Mon, 13 Jan 2014 14:13:04 +0000 https://www.etcusa.com/?p=2941 Continue reading ]]>

SOUTHAMPTON, PA, USA, January 13, 2014 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for its fiscal 2014 third quarter ended November 29, 2013.

Fiscal 2014 Third Quarter Results of Operations:

Net Income Attributable to ETC
Net income attributable to ETC was $136 thousand, or $0.00 diluted earnings per share, in the 2014 third quarter, compared to $1.2 million or $0.05 diluted earnings per share, during the 2013 third quarter, representing a decrease of $1.0 million, or 88.5%. The decrease in net income attributable to ETC reflects a decrease in income before income taxes of $2.0 million due primarily to a $2.9 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage, offset in part, by a $0.8 million decrease in operating expenses, resulting from an on-going effort to reduce non-revenue generating expenses.
 
Net Sales
Net sales in the 2014 third quarter were $12.3 million, a decrease of $2.8 million, or 18.5%, compared to 2013 third quarter net sales of $15.1 million. The reduction reflects decreased ATS sales to the U.S. Government and decreased sales of Commercial/Industrial products to Domestic customers, offset in part, by increased ATS sales to International customers. Given the current progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2014.
 
Gross Profit
Gross profit for the 2014 third quarter was $3.6 million compared to $6.5 million in the 2013 third quarter, a decrease of $2.9 million, or 45.2%. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to inefficiencies as a result of additional work required on several contracts, for which we are currently pursuing recovery.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2014 third quarter were $3.0 million, a decrease of $0.8 million, or 22.3%, compared to $3.8 million for the 2013 third quarter. The decrease is primarily the result of an on-going effort to reduce non-revenue generating expenses, offset in part, by a slight increase in research and development expenses.
 
Interest Expense, Net
Interest expense, net, for the 2014 third quarter was $224 thousand compared to $319 thousand in the 2013 third quarter, a decrease of $95 thousand, or 29.8%, despite a higher level of bank borrowing due primarily to the results of the 2012 Financial Restructuring.
 
Fiscal 2014 First Three Quarters Results of Operations:

Net Income Attributable to ETC
Net income attributable to ETC was $307 thousand, or $0.00 diluted earnings per share, in the 2014 first three quarters, compared to $4.2 million or $0.14 diluted earnings per share, during the 2013 first three quarters, representing a decrease of $3.9 million, or 92.6%. The decrease in net income attributable to ETC reflects a decrease in income before income taxes of $6.7 million due primarily to an $8.1 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage, offset in part, by a $1.5 million decrease in operating expenses, resulting from an on-going effort to reduce non-revenue generating expenses.
 
Net Sales
Net sales in the 2014 first three quarters were $36.6 million, a decrease of $11.1 million, or 23.2%, compared to 2013 first three quarters net sales of $47.7 million. The reduction reflects decreased ATS sales to the U.S. Government and decreased sales of sterilizers and environmental testing and simulation devices to Domestic customers, offset in part, by increased ATS sales to International customers. Given the current progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2014.
 
Gross Profit
Gross profit for the 2014 first three quarters was $11.0 million compared to $19.0 million in the 2013 first three quarters, a decrease of $8.1 million, or 42.4%. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to increased costs as a result of damage to one of our devices associated with a U.S. Government contract during the testing phase and inefficiencies as a result of additional work required on several other contracts, for which we are currently pursuing recovery.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2014 first three quarters were $9.5 million, a decrease of $1.5 million, or 13.3%, compared to $11.0 million for the 2013 first three quarters. The decrease is primarily the result of an on-going effort to reduce non-revenue generating expenses, offset in part, by an increase in research and development expenses.
 
Interest Expense, Net
Interest expense, net, for the 2014 first three quarters was $590 thousand compared to $764 thousand in the 2013 first three quarters, a decrease of $174 thousand, or 22.8%, despite a higher level of bank borrowing due primarily to the results of the 2012 Financial Restructuring.
 
Cash Flows from Operating, Investing, and Financing Activities:
During the 2014 first three quarters, as a result of an increase in costs and estimated earnings in excess of billings on uncompleted long-term percentage of completion (“POC”) contracts and a decrease in accounts payable, the Company used $3.6 million of cash in operating activities compared to $0.3 million of cash provided by operating activities in the 2013 first three quarters. Under POC revenue recognition, these accounts represent the timing differences of spending on production activities versus collecting on long-term contracts.
 
Cash used for investing activities primarily relates to funds used for capital expenditures of equipment and software development. The Company’s investing activities used $1.1 million in the 2014 first three quarters compared to $0.9 million in the 2013 first three quarters.
 
The Company’s financing activities provided $3.0 million of cash in the 2014 first three quarters, which primarily reflected borrowings under the Company’s various lines of credit, and was offset, in part, by payments on the Term Loan. In the 2013 first three quarters, net cash used in financing activities totaled $0.6 million, primarily for repayments under the line of credit and dividends paid on Preferred Stock.
 
Financial Tables Follow

jan-13-14-01

jan-13-14-02

jan-13-14-03

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ETC Announces the Election of Robert L. Laurent, Jr. as President and Mark Prudenti as Chief Financial Officerhttps://www.etcusa.com/etc-announces-the-election-of-robert-l-laurent-jr-as-president-and-mark-prudenti-as-chief-financial-officer/ https://www.etcusa.com/etc-announces-the-election-of-robert-l-laurent-jr-as-president-and-mark-prudenti-as-chief-financial-officer/#comments Tue, 19 Nov 2013 16:17:30 +0000 https://www.etcusa.com/?p=2961 Continue reading ]]>

SOUTHAMPTON, PA, USA, November 19, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today the election of Robert Laurent as the Company’s President.
 
Mr. Laurent, age 58, was ETC’s Chief Financial Officer since June 2011. From 1980 to 2008, Mr. Laurent was with Fedders Corporation where he served as Executive Vice President and Chief Financial Officer from 1987 to 1998 and from 2004 to 2008. From 1998 to 2004, Mr. Laurent served as Executive Vice President – Acquisitions and Alliances. Mr. Laurent was a private consultant from 2008 through 2010. Mr. Laurent is a graduate of Villanova University.
 
Mr. Laurent has extensive financial, international business and strategic planning experience.
 
Mark Prudenti, CPA, age 37, has been selected to replace Mr. Laurent as Chief Financial Officer. Mr. Prudenti has served as the Company’s Corporate Controller since July 2011. From 2008 to 2011, Mr. Prudenti served as the Financial Director at Rhoads Industries, Inc. Prior thereto he was Controller of Schmolz & Bickenbach USA from 2007 to 2008, Manager of Internal Controls at Bristol-Myers Squibb Company from 2005 to 2007, and was with Deloitte & Touche, LLP from 2000 to 2005, where he was Manager. Mr. Prudenti is a CPA and graduate of Bucknell University.
 
Mr. Prudenti has an extensive background in financial reporting, internal controls, and systems implementation.
 
William F. Mitchell, Chairman and Chief Executive Officer stated “these moves will strengthen ETC organizationally”.

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Environmental Tectonics Corporation Sterilization Systems Group Receives over $5.0 Million in New Contractshttps://www.etcusa.com/environmental-tectonics-corporation-sterilization-systems-group-receives-over-5-0-million-in-new-contracts/ https://www.etcusa.com/environmental-tectonics-corporation-sterilization-systems-group-receives-over-5-0-million-in-new-contracts/#comments Wed, 23 Oct 2013 16:41:04 +0000 https://www.etcusa.com/?p=2964 Continue reading ]]>

SOUTHAMPTON, PA, USA, October 23, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) announced today the recent award of several new contracts totaling in excess of $5.0 million in its Sterilization System Group (“SSG”). The contracts include orders for several steam sterilizers and a large order for a four chamber medical device sterilization facility.
 
David Mitchell, Vice President and Business Unit Manager for ETC SSG stated, “We are very pleased to have been awarded these projects. We at ETC continue to work diligently at finding unique solutions to our customer’s sterilization needs, and these contract awards are a testament to those efforts.”

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ETC Simulation Named a MT2 2013 Top Simulation Companyhttps://www.etcusa.com/etc-simulation-named-a-mt2-2013-top-simulation-company/ https://www.etcusa.com/etc-simulation-named-a-mt2-2013-top-simulation-company/#comments Tue, 15 Oct 2013 16:42:51 +0000 https://www.etcusa.com/?p=2966 Continue reading ]]>

Southampton, Pa., USA, October 15, 2013 – Environmental Tectonics Corporation’s (OTC Pink: ETCC) (“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., developers of the Advanced Disaster Management Simulator (“ADMS”), has been recognized by Military Training Technology magazine (“MT2″) as a Top Simulation and Training Company for 2013.
 
ADMS, the high-end standard in interactive virtual reality training systems, simulates disasters and incidents in high-definition quality with incredible visualizations and effects. Founded upon over 40 years of true simulation technology, ADMS has physics based effects and artificial intelligence embedded into all training systems, providing trainees with a most realistic training experience. Trainees become immersed within the unscripted and open-ended scenarios, eliciting real-life behavior and field like responses.
 
For the military community, ADMS-Airbase provides the only simulation training system available that focuses on the unique challenges associated with emergencies and disasters on an airbase, complete with military specific aircraft, personnel and threats. Within this environment, many scenarios are possible including CBRNE incidents, aircraft accidents, structural fires, terrorist activity, hostage situations and many others.
 
MT2 covers all issues and developments related to the simulation and training industry as it relates to the military. Their scope of coverage includes simulation, distributed learning, visual systems, embedded training, database modeling and other training complements. MT2 is recognized as the leader in covering all aspects of military training readiness. Click here to read an article published within the October issue of MT2 exploring how ADMS is being utilizing by the Louis F. Garland Fire Training Academy at Goodfellow Air Force Base.

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ETC Announces Fiscal 2014 Second Quarter Resultshttps://www.etcusa.com/etc-announces-fiscal-2014-second-quarter-results/ https://www.etcusa.com/etc-announces-fiscal-2014-second-quarter-results/#comments Mon, 14 Oct 2013 16:37:44 +0000 https://www.etcusa.com/?p=3122 Continue reading ]]>

SOUTHAMPTON, PA, USA, October 14, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for its fiscal 2014 second quarter ended August 30, 2013.
 
Fiscal 2014 Second Quarter Results of Operations:
 
Net Income Attributable to ETC
Net income attributable to ETC was $140 thousand, or $0.00 diluted earnings per share, in the 2014 second quarter, compared to $1.3 million or $0.04 diluted earnings per share, during the 2013 second quarter, representing a decrease of $1.2 million, or 89.2%. The decrease in net income attributable to ETC reflects a decrease in income before income taxes of $2.1 million due primarily to a $2.4 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage, offset in part, by a $0.5 million decrease in operating expenses, resulting from an on-going effort to reduce non-revenue generating expenses.
 
Net Sales
Net sales in the 2014 second quarter were $11.7 million, a decrease of $4.8 million, or 29.1%, compared to 2013 second quarter net sales of $16.5 million. The decrease reflects decreased ATS sales to the U.S. Government and decreased sales of sterilizers and environmental testing and simulation devices to Domestic customers. Given the current progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2014.
 
Gross Profit
Gross profit for the 2014 second quarter was $3.7 million compared to $6.1 million in the 2013 second quarter, a decrease of $2.4 million, or 39.4%. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to inefficiencies as a result of additional work required on several contracts.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2014 second quarter were $3.1 million, a decrease of $0.5 million, or 13.5%, compared to $3.6 million for the 2013 second quarter. The decrease is primarily the result of an on-going effort to reduce non-revenue generating expenses, offset in part, by an increase in research and development expenses.
 
Interest Expense, Net
Interest expense, net, for the 2014 second quarter was $194 thousand compared to $231 thousand in the 2013 second quarter, a decrease of $37 thousand despite a higher level of bank borrowing due primarily to the results of the 2012 Financial Restructuring.
 
Fiscal 2014 First Half Results of Operations:
 
Net Income Attributable to ETC
Net income attributable to ETC was $171 thousand, or ($0.01) diluted loss per share, in the 2014 first half, compared to $3.0 million or $0.09 diluted earnings per share, during the 2013 first half, representing a decrease of $2.8 million, or 94.3%. The decrease in net income attributable to ETC reflects a decrease in income before income taxes of $4.7 million due primarily to a $5.1 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage, offset in part, by a $0.6 million decrease in operating expenses, resulting from an on-going effort to reduce non-revenue generating expenses.
 
Net Sales
Net sales in the 2014 first half were $24.3 million, a decrease of $8.3 million, or 25.4%, compared to 2013 first half net sales of $32.6 million. The decrease reflects decreased ATS sales to the U.S. Government and decreased sales of sterilizers and environmental testing and simulation devices to Domestic customers, offset in part, by increased sales within nearly all business units to International customers. Given the current progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2014.
 
Gross Profit
Gross profit for the 2014 first half was $7.4 million compared to $12.5 million in the 2013 first half, a decrease of $5.1 million, or 41.0%. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to increased costs as a result of damage to one of our devices associated with a U.S. Government contract during the testing phase and inefficiencies as a result of additional work required on several other contracts.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative, and research and development, for the 2014 first half were $6.6 million, a decrease of $0.6 million, or 8.6%, compared to $7.2 million for the 2013 first half. The decrease is primarily the result of an on-going effort to reduce non-revenue generating expenses, offset in part, by an increase in research and development expenses.
 
Interest Expense, Net
Interest expense, net, for the 2014 first half was $366 thousand compared to $445 thousand in the 2013 first half, a decrease of $79 thousand despite a higher level of bank borrowing due primarily to the results of the 2012 Financial Restructuring.
 
Cash Flows from Operating, Investing, and Financing Activities:
 
During the 2014 first half, as a result of an increase in costs and estimated earnings in excess of billings on uncompleted long-term percentage of completion (“POC”) contracts and a decrease in accounts payable, the Company used $3.2 million of cash in operating activities compared to $4.3 million of cash provided by operating activities in the 2013 first half. Under POC revenue recognition, these accounts represent the timing differences of spending on production activities versus collecting on long-term contracts.
 
Cash used for investing activities primarily relates to funds used for capital expenditures in equipment and software development. The Company’s investing activities used $0.6 million in the 2014 first half compared to $0.8 million in the 2013 first half.
 
The Company’s financing activities provided $2.5 million of cash in the 2014 first half, which primarily reflected borrowings under the Company’s various lines of credit, and was offset, in part, by payments on the Term Loan. In the 2013 first half, net cash used in financing activities totaled $3.9 million, primarily for repayments under the line of credit and dividends paid on Preferred Stock.
 
Amendment to the September 28, 2012 Loan Agreement:
 
On October 11, 2013, the Company entered into an amendment to the September 28, 2012 Loan Agreement that provided for, among other things, the following:

  1. The Company’s Line of Credit with PNC Bank was increased from $15.0 million to $15.5 million.
  2. Availability under the Line of Credit was increased by approximately $1.2 million as a currently outstanding letter of credit supporting bid bond shall no longer reduce availability under the Line of Credit so long as it remains outstanding.
  3. The Term Loan, which is currently guaranteed by H.F. Lenfest (“Mr. Lenfest”), a major shareholder and member of the Board of Directors, through March 31, 2015, will be collateralized by Mr. Lenfest through that period, or until the Company’s Operating Leverage Ratio using all Senior Funded Debt in place of Adjusted Senior Funded Debt is less than 3.00 to 1, whichever occurs first. Adjusted Senior Funded Debt is defined as the sum of Senior Funded Debt minus the then outstanding principal amount of the Term Loan, and will be used for calculating Operating Leverage Ratio while the collateral is in place.
  4. Until such time the Company’s Fixed Charge Coverage Ratio is at least 1.10 to 1, the Company cannot declare or pay any dividends on or make any distribution with respect to any class of its Preferred Stock, or purchase, redeem, retire, or otherwise acquire any such Preferred Stock.
  5. The Company received a waiver as of the quarter ending August 30, 2013 for exceeding the permitted maximum Operating Leverage Ratio of 3.00 to 1 under the September 28, 2012 Loan Agreement and December 19, 2012 Export Import Loan Agreement. Going forward, ETC must maintain an Operating Leverage Ratio (i.e., ratio of Adjusted Senior Funded Debt to EBITDA, which is defined as earnings before interest, taxes, depreciation, and amortization) of less than 3.50 to 1 from November 29, 2013 through February 28, 2014. This ratio will reduce to 3.25 to 1 from March 1, 2014 through May 30, 2014, will further reduce to 3.00 to 1 on May 31, 2014, and will remain at that level at all times thereafter.
  6. ETC must maintain as of the end of each fiscal quarter, on a rolling four quarters basis, a Fixed Charge Coverage Ratio (i.e. ratio of EBITDA, increased by an amount equal to the EBITDA Addback specified for such quarter end date, divided by the sum of the defined fixed charges) of at least 1.00 to 1 from November 29, 2013 through August 29, 2014. This ratio will increase to 1.10 to 1 on August 30, 2014, and will remain at that level at all times thereafter.
  7. Effective as of the date of this amendment, the interest rate on both the Line of Credit Note and the Term Loan Note will be based on the PNC Daily Libor Rate plus a margin of 3.00%.

 
Financial Tables Follow

oct-14-14-01

oct-14-14-02

oct-14-14-03

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ETC Simulation to Deliver Firefighter Training Simulator to Netherlands Institute for Safetyhttps://www.etcusa.com/etc-simulation-to-deliver-firefighter-training-simulator-to-netherlands-institute-for-safety/ https://www.etcusa.com/etc-simulation-to-deliver-firefighter-training-simulator-to-netherlands-institute-for-safety/#comments Tue, 20 Aug 2013 16:58:24 +0000 https://www.etcusa.com/?p=2969 Continue reading ]]>

firefighter-training-simulator
 
Southampton, Pa., USA, August 20, 2013 – Environmental Tectonics Corporation’s (OTC Pink: ETCC)(“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has been contracted by the Netherlands Institute for Safety (“IFV”) to develop an augmented reality firefighter training simulator with the objective of creating an effective and safe training environment for situations that cannot be trained live. The research department at IFV will perform field experiments to quantify the effectiveness of the training device in relation to the current live fire training methods, together with the Fire Brigades of Rotterdam and Amsterdam.
 
ADMS-Fire will be the first simulator from the ADMS platform with integrated motion-based sensor technology, offering a new level of immersion and realism. Among its features are a real fire hose with branch allowing the option of opening and closing of the hose, flow rate selection, and the ability to choose between jet stream and spray. As part of the project, ETC developed a residential house and barn in a countryside environment in which wayfinding, firefighting and ventilation tactics can be practiced at fire fighter and vehicle commander level to avoid instances of backdraft and flashover. The fire simulation software responds to the actions that the trainees take, and includes a scenario generator and after action reviewer.
 
“At IFV we are always looking for innovative solutions that contribute to critical training of emergency responders. This is a great project as subject matter experts, firefighters, researchers, educational experts and industry have come together to create a next generation training instrument for people who put their lives at risk in extreme conditions.” said Rijk van den Dikkenberg, Chief Fire Officer and Project Manager at IFV.

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ETC Announces the Appointment of James R. Wells as Vice President and General Counselhttps://www.etcusa.com/etc-announces-the-appointment-of-james-r-wells-as-vice-president-and-general-counsel/ https://www.etcusa.com/etc-announces-the-appointment-of-james-r-wells-as-vice-president-and-general-counsel/#comments Mon, 19 Aug 2013 18:06:56 +0000 https://www.etcusa.com/?p=2972 Continue reading ]]>

SOUTHAMPTON, Pa., August 19, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today announced the appointment of James R. Wells, Esq. as the Company’s Vice President and General Counsel.
 
Mr. Wells, age 54, was formerly the Vice President and Associate General Counsel at Aramark Corporation where he worked from 1990 through 2013. Prior to Aramark, Mr. Wells was an Associate with Pepper Hamilton, LLP, Philadelphia, from 1984 to 1990.
 
Mr. Wells has a J.D. from Villanova Law School and a B.A. in Political Science and Economics from the University of Pennsylvania, Philadelphia, PA.

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ETC Announces Results of Annual Meeting of Shareholders’ Votehttps://www.etcusa.com/etc-announces-results-of-annual-meeting-of-shareholders-vote/ https://www.etcusa.com/etc-announces-results-of-annual-meeting-of-shareholders-vote/#comments Tue, 30 Jul 2013 18:36:04 +0000 https://www.etcusa.com/?p=2984 Continue reading ]]>

SOUTHAMPTON, PA, USA, July 30, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today announced the results of the shareholder voting from its Annual Meeting.
 
The annual meeting of Environmental Tectonics Corporation was held on July 25, 2013, at 10:00 a.m., with shareholders voting favorably on the following three proposals:

  • The election of Dr. George K. Anderson, Dr. Linda J. Brent, Roger Colley, H.F. Lenfest, Michael D. Malone, William F. Mitchell, George A. Sawyer and Winston E. Scott as Directors of the Company.
  • The appointment of McGladrey LLP as the Company’s independent registered public accounting firm for the fiscal year ending February 28, 2014.
  • The approval of amendments to the Articles of Incorporation of the Company to reduce the dividend rate on the Series D and Series E Preferred Stock from ten (10%) to four (4%).
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NASTAR Education Director Chosen As Space Flight Candidate Nominee By Citizens in Spacehttps://www.etcusa.com/nastar-education-director-chosen-as-space-flight-candidate-nominee-by-citizens-in-space/ https://www.etcusa.com/nastar-education-director-chosen-as-space-flight-candidate-nominee-by-citizens-in-space/#comments Thu, 25 Jul 2013 18:39:23 +0000 https://www.etcusa.com/?p=2986 Continue reading ]]>

Southampton, PA USA – July 25, 2013 – The NASTAR Center (www.nastarcenter.com) announced that its Director of Educational Programming, Gregory P. Kennedy, was selected by Citizens in Space (www.citizensinspace.com) as the 5th astronaut candidate selectee to be considered to fill one of ten spots for a future space flight sponsored by the group.
 
The announcement, made public on Saturday July 20, 2013, during the group’s 2nd Annual Space Hacker Workshop in Dallas, TX, announced the selection of Mr. Kennedy as the fifth candidate training to fly as a payload operator on the Lynx spacecraft, under construction by XCOR Aerospace in Mojave, CA.
 
Stated Edward Wright, Project Manager for Citizens in Space, “Our goal is to enable ordinary people to fly into space as citizen astronauts (citizen space explorers) and to fly their experiments into space. Greg embodies the profile of a space candidate.”
 
Mr. Kennedy’s outreach efforts at the NASTAR Center focus on promoting science, technology, engineering, and mathematics (STEM) education. With over 35 years’ educational experience including; serving as the former Associate Curator for Manned Space Flight at the National Air and Space Museum, where he was curator for the Smithsonian’s exhibits on aerospace medicine, Project Apollo, and rocketry, he was also Executive Director of the Space Center in Alamogordo, New Mexico and served on the Education Committee of the International Astronautical Federation and chaired the Education Committee of the National Association of Rocketry. Mr. Kennedy’s publications include;Touching Space: The Story of Project Manhigh, Apollo to the Moon, The First Men in Space; Rockets and Missiles of White Sands Proving Ground, and Vengeance Weapon Two: Germany’s V-2 Rocket, as well as others.
 
States Mr. Kennedy, “I am honored to be considered for one of the ten slots. Suffice to say, this would be realization of a lifetime dream and I look forward to the prospect of its fruition”.
 
About the NASTAR Center
The National AeroSpace Training And Research (NASTAR®) Center is a business unit of Environmental Tectonics Corporation (ETC®). NASTAR Center is a state-of-the-art aerospace training, research, and educational facility dedicated to improving the health and safety of humans in extreme conditions. NASTAR Center serves military aviation (fixed and rotary wing), civil aviation (fixed and rotary wing), space travel (government and private) and provides research support for component and human factors testing.

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ETC Simulation Awarded Contracts by Rosenbauer America to Deliver Two More ADMS-HRET Stinger Simulatorshttps://www.etcusa.com/etc-simulation-awarded-contracts-by-rosenbauer-america-to-deliver-two-more-adms-hret-stinger-simulators/ https://www.etcusa.com/etc-simulation-awarded-contracts-by-rosenbauer-america-to-deliver-two-more-adms-hret-stinger-simulators/#comments Wed, 24 Jul 2013 18:42:19 +0000 https://www.etcusa.com/?p=2988 Continue reading ]]>

Southampton, Pa., USA, July 24, 2013 – Environmental Tectonics Corporation’s (OTC Pink: ETCC)(“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has been awarded two additional contracts from Rosenbauer America (“Rosenbauer”) for the delivery of two ADMS-HRET simulation training simulators. The simulators will be delivered to Miami International Airport in Miami, Fla. and George Bush Intercontinental Airport, in Houston, Tex., where the ADMS-HRET simulators will be used to train operating skills for the Panther Airport Rescue Fire Fighting (“ARFF”) vehicles with the Stinger High Reach Extendable Turret (“HRET”).
 
The Rosenbauer Stinger HRET includes a penetrator nozzle mounted at the tip of the joystick-controlled hydraulic boom arm. The penetrator nozzle is used to create a hole in the aircraft fuselage to apply agent directly to interior fires.
 
The portable training system includes a turret console with authentic Rosenbauer HRET joystick and a ADMS laptop that can be connected to an external visual display system. The virtual reality simulation includes the Panther ARFF vehicle with accurate vehicle and HRET dynamics, as well as physics based firefighting with foam, dry powder and water. Trainees can drive to the incident, position the vehicle, operate the HRET and deploy the agents. The system also includes several passenger aircraft that can be generated within the scenario that have crashed with a broken fuselage, interior and exterior fires. The after-action review tool can replay an exercise from any viewable angle for optimal debriefing.
 
The Stinger HRET simulator is built upon the proven Advanced Disaster Management Simulator (“ADMS”) and is expandable with bumper turret, steering wheel and pedals, airport terrain, and aircraft types. All ADMS systems can be purchased using various grant funding.
 
About ADMS
ADMS(TM) is a high-fidelity Virtual Reality Simulation Training Platform that comprises multiple products including Incident Command training from technical to strategic level (ADMS-Command), emergency response and force protection specific to a military environment (ADMS-Airbase), driver training and vehicle operation (ADMS-ARFF and ADMS-Drive) and multiple level police coordination for crowd management and riot control (ADMS-Control). ETC’s signature True Simulation Technology blends physics-based simulation, embedded artificial intelligence, accurate animations, photo-realistic graphics, ambient sounds, vehicle controls, and motion platforms to totally immerse trainees in the exercise. ADMS enables first responders and emergency managers to prepare at all levels of response in a safe, economical and environmentally-conscious way.

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ETC Announces Fiscal 2014 First Quarter Resultshttps://www.etcusa.com/etc-announces-fiscal-2014-first-quarter-results/ https://www.etcusa.com/etc-announces-fiscal-2014-first-quarter-results/#comments Fri, 12 Jul 2013 17:40:44 +0000 https://www.etcusa.com/?p=3134 Continue reading ]]>

Net sales of $12.6 million

  • EBITDA of $0.7 million
  • Sales bookings of $8.4 million

 
SOUTHAMPTON, PA, USA, July 12, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported its financial results for its fiscal 2014 first quarter ended May 31, 2013.
 
Fiscal 2014 First Quarter Results of Operations:
 
Net Income Attributable to ETC
Net income attributable to ETC was $31 thousand, or ($0.01) diluted loss per share, in the fourteen week period ended May 31, 2013 (“2014 first quarter”), compared to $1.7 million or $0.06 diluted earnings per share, during the thirteen week period ended May 25, 2012 (“2013 first quarter”), representing a decrease of $1.6 million, or 98.2%. The decrease in net income attributable to ETC reflects a decrease in income before income taxes of $2.6 million due primarily to a $2.7 million decrease in gross profit, resulting from a combination of both lower net sales and lower gross profit margin percentage.
 
Net Sales
Net sales in the 2014 first quarter were $12.6 million, a decrease of $3.5 million, or 21.7%, compared to 2013 first quarter net sales of $16.1 million. The decrease reflects decreased Aircrew Training System (“ATS”) sales to the U.S. Government and decreased sterilizer sales to Domestic customers, offset in part, by increased ATS and sterilizer sales to International customers. Given the continued progress made on U.S. Government sales contracts in the Company’s backlog, the Company anticipates the concentration of sales to the U.S. Government will continue to lessen in fiscal 2014.
 
Gross Profit
Gross profit for the 2014 first quarter was $3.7 million compared to $6.4 million in the 2013 first quarter, a decrease of $2.7 million, or 42.5%. The significant decrease in gross profit was a combination of both lower net sales and lower gross profit margin percentage due to increased costs as a result of damage to one of our devices associated with a U.S. Government contract during the testing phase and inefficiencies as a result of additional work required on several other contracts.
 
Operating Expenses
Operating expenses, including sales and marketing, general and administrative and research and development, for the 2014 first quarter were $3.4 million, a decrease of $0.1 million, or 3.5%, compared to $3.5 million for the 2013 first quarter. The decrease is primarily the result of an on-going effort to reduce non-revenue generating expenses, offset in part, by an increase in research and development expenses.
 
Interest Expense, Net
Interest expense, net, for the 2014 first quarter was $172 thousand compared to $214 thousand in the 2013 first quarter, a decrease of $42 thousand despite a higher level of bank borrowing due primarily to the results of the 2012 Financial Restructuring.
 
Cash Flows from Operating, Investing, and Financing Activities:
 
During the 2014 first quarter, as a result of an increase in costs and estimated earnings in excess of billings on uncompleted long-term percentage of completion (“POC”) contracts and a decrease in accounts payable, the Company used $4.8 million of cash in operating activities compared to $0.6 million of cash used in operating activities in the 2013 first quarter. Under POC revenue recognition, these accounts represent the timing differences of spending on production activities versus collecting on long-term contracts.
 
Cash used for investing activities primarily relates to funds used for capital expenditures in equipment and software development. The Company’s investing activities used $0.3 million in the 2014 first quarter compared to $0.5 million in the 2013 first quarter.
 
The Company’s financing activities provided $3.5 million of cash in the 2014 first quarter, which primarily reflected borrowings under the Company’s various lines of credit, and was offset, in part, by payments on the Term Loan. In the 2013 first quarter, net cash provided by financing activities totaled $0.8 million, primarily for borrowings under the line of credit, offset in part, by dividends paid on Preferred Stock.
 
Financial Tables Follow

jul-12-14-01

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ETC Simulation contracted by Institute for Safety to deliver ADMS to Royal Netherlands Navyhttps://www.etcusa.com/etc-simulation-contracted-by-institute-for-safety-to-deliver-adms-to-royal-netherlands-navy/ https://www.etcusa.com/etc-simulation-contracted-by-institute-for-safety-to-deliver-adms-to-royal-netherlands-navy/#comments Thu, 27 Jun 2013 18:48:44 +0000 https://www.etcusa.com/?p=2992 Continue reading ]]>

fire-boat
 
Southampton, Pa., USA, June 27, 2013 – Environmental Tectonics Corporation’s (OTC Pink: ETCC) (“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has been awarded a contract from the Institute for Safety (“IFV”) to expand their Advanced Disaster Management Simulator (“ADMS”) with port incidents and simulation systems. The training systems and new scenario capabilities are required by IFV to provide ADMS training support to the Royal Netherlands Navy Fire Service.
 
ETC will deliver multiple portable ADMS Training Systems with adapted scenarios to IFV. The system includes a port, emergency response vehicles and crews, fire fighting boats, and CBRNE incidents. The ADMS systems will be used to provide virtual reality based training and examination programs to military and civilian staff, with ADMS having recently been certified by the National Fire Exam Bureau to be used for qualification exams. IFV will provide instructor training and technical support to the Navy.
 
Eric Didderen, Senior Trainer/Advisor at IFV, stated, “IFV is very pleased with the acknowledgement by the Fire Service of the Royal Netherlands Navy for this multi-year training support contract. We will work closely with Navy experts to further develop the exercise simulations needed for training fire and rescue in ports and on-board ships. The exercise scenarios also include a protesting crowd at the port and suspicious packages. We are very happy with ADMS, as it is a proven simulation platform that provides optimal scenario generating flexibility in combination with high fidelity simulation at a level required to train and test incident command.”
 
IFV is a national center of expertise with four Academies including the Fire Academy, Academy for Crisis Management, Emergency Medical Service Academy and Academy for Leadership. Since 2001, IFV has trained thousands of emergency responders and crisis management teams using ETC’s ADMS.

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ETC Simulation announces the delivery and acceptance of the ADMS Training System to Royal Netherlands Air Forcehttps://www.etcusa.com/etc-simulation-announces-the-delivery-and-acceptance-of-the-adms-training-system-to-royal-netherlands-air-force/ https://www.etcusa.com/etc-simulation-announces-the-delivery-and-acceptance-of-the-adms-training-system-to-royal-netherlands-air-force/#comments Thu, 20 Jun 2013 18:50:42 +0000 https://www.etcusa.com/?p=2994 Continue reading ]]>

ADMS-Airbase by ETC Simulation_RNLAF
 
Southampton, Pa., USA, June 20, 2013 – Environmental Tectonics Corporation’s (OTC Pink: ETCC) (“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has delivered to the Royal Netherlands Air Force (“RNLAF”) an Advanced Disaster Management Simulator (“ADMS”). The RNLAF’s modified ADMS-Airbase will be used to train fire and rescue services personnel.
 
The portable ADMS-Airbase system located at the RNLAF Fire Academy at Woensdrecht Air Force Base can be transported and utilized by other bases within the Netherlands. The training system is modified with RNLAF emergency response vehicles and personnel. Among the features developed for the RNLAF training system is the use of thermal imaging camera, which will be used to assist responders in recognizing hot spots on both aircrafts and structures as well as to search for missing persons. Additional military aircraft have been added including the F-16, Chinook CH-47 and Apache AH-64D helicopters, as well as the Pilatus PC-7 and KDC-10 airplanes.
 
Major Venmans, Commander of the RNLAF Fire Academy stated, “We are very pleased with the end-result. ETC adapted the simulation to meet our training needs including interactive response vehicles with crews that look and behave like our real assets and a collection of RNLAF aircraft that can be used to create emergencies and crashes. Our requirements also included extensive after action review capability including voice recording. The user friendliness is rated as superb by our instructors that can create new exercises within 15 minutes. We are looking forward to many hours of quality simulation training.”
 
ADMS-Airbase consists of a military base with hangars, aircraft shelters, support facilities, ammunition storages, runways and nearby residential housing. As with all ADMS systems, Airbase features ETC’s Signature Simulation Technology which includes the Scenario Generator with the SmartModel™ Library. The SmartModel Library allows the user to inject additional objects such as aircrafts, vehicles, casualties, and multiple hazards to create unlimited scenarios.

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ETC Announces the Resignation of James D. Cashel as General Counsel and Corporate Secretaryhttps://www.etcusa.com/etc-announces-the-resignation-of-james-d-cashel-as-general-counsel-and-corporate-secretary/ https://www.etcusa.com/etc-announces-the-resignation-of-james-d-cashel-as-general-counsel-and-corporate-secretary/#comments Fri, 14 Jun 2013 18:51:54 +0000 https://www.etcusa.com/?p=2996 Continue reading ]]>

SOUTHAMPTON, Pa., June 14, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today announced that James D. Cashel, the Company’s General Counsel and Corporate Secretary has resigned to pursue another career opportunity. Mr. Robert Laurent, the Company’s Chief Financial Officer, has been appointed Corporate Secretary, effective immediately.

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ETC Receives Holloman Air Force Base 2013 Best of Holloman Air Force Base Award for Environmental and Ecological Serviceshttps://www.etcusa.com/etc-receives-holloman-air-force-base-2013-best-of-holloman-air-force-base-award-for-environmental-and-ecological-services/ https://www.etcusa.com/etc-receives-holloman-air-force-base-2013-best-of-holloman-air-force-base-award-for-environmental-and-ecological-services/#comments Thu, 06 Jun 2013 14:09:34 +0000 http://www.etcusa.com/?p=2448 Continue reading ]]>

Centrifuge takes last spin
 
SOUTHAMPTON, PA, USA, June 5, 2013 – ETC (www,etcusa.com) announced today that they have received a 2013 Best of Holloman Air Force Base award for Environmental and Ecological Services. As a recipient of this award, ETC joins an exclusive group of small businesses that have achieved this honor. The award recognizes organizations that have achieved exceptional marketing success in their local community and business category. Companies must meet the criteria of having enhanced the positive image of the small business via service to their customers and local community.
 
ETC has supported the Air Force at the Holloman Air Force base by providing and maintaining the G-LAB, high performance human centrifuge. The G-LAB was commissioned in 1988 and in 2009 was recognized for having supported high-G training of a milestone 30,000 aircrew, making it the most heavily used centrifuge in the world. ETC is currently installing an ATFS-400 Model 31 high performance human centrifuge at the new 711th Human Performance Wing complex at Wright Patterson Air Force Base, Ohio.
 
William F. Mitchell, President and CEO of ETC stated “We are honored to be granted this award from Holloman Air Force Base. We have had a long standing association with the Air Force and are pleased by their recognition of our quality and integrity as a small business”.

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ETC Receives Holloman Air Force Base 2013 Best of Holloman Air Force Base Award for Environmental and Ecological Serviceshttps://www.etcusa.com/etc-receives-holloman-air-force-base-2013-best-of-holloman-air-force-base-award-for-environmental-and-ecological-services-2/ https://www.etcusa.com/etc-receives-holloman-air-force-base-2013-best-of-holloman-air-force-base-award-for-environmental-and-ecological-services-2/#comments Wed, 05 Jun 2013 18:55:54 +0000 https://www.etcusa.com/?p=2998 Continue reading ]]>

SOUTHAMPTON, PA, USA, June 5, 2013 – ETC announced today that they have received a 2013 Best of Holloman Air Force Base award for Environmental and Ecological Services. As a recipient of this award, ETC joins an exclusive group of small businesses that have achieved this honor. The award recognizes organizations that have achieved exceptional marketing success in their local community and business category. Companies must meet the criteria of having enhanced the positive image of the small business via service to their customers and local community.
 
ETC has supported the Air Force at the Holloman Air Force base by providing and maintaining the G-LAB, high performance human centrifuge. The G-LAB was commissioned in 1988 and in 2009 was recognized for having supported high-G training of a milestone 30,000 aircrew, making it the most heavily used centrifuge in the world. ETC is currently installing an ATFS-400 Model 31 high performance human centrifuge at the new 711th Human Performance Wing complex at Wright Patterson Air Force Base, Ohio.
 
William F. Mitchell, President and CEO of ETC stated “We are honored to be granted this award from Holloman Air Force Base. We have had a long standing association with the Air Force and are pleased by their recognition of our quality and integrity as a small business”.

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May 28, 2013 – ETC’s The NASTAR Center Becomes NASA Space Place Community Partnerhttps://www.etcusa.com/may-28-2013-etcs-the-nastar-center-becomes-nasa-space-place-community-partner/ https://www.etcusa.com/may-28-2013-etcs-the-nastar-center-becomes-nasa-space-place-community-partner/#comments Thu, 30 May 2013 11:39:33 +0000 http://www.etcusa.com/?p=2445 Continue reading ]]>

Southampton, PA, USA. May 28, 2013 – The NASTAR® Center, the premier commercial space training and research center in the world, has been designated as a “NASA Jet Propulsion Laboratory (JPL) Space Place Community Partner”. The NASTAR Center and the NASA Space Place partnership help support mutual initiatives to encourage, facilitate, and promote space-based education. The Space Place was started in February 1998 as an education and public outreach project of NASA’s New Millennium Program. The Space Place program includes a kid-friendly website and bulletin board displays at Community Partner sites around the country. Its target audience is elementary-school-age kids. As a Space Place Community Partner, the NASTAR Center has added a Space Place display to its Educator Resource Center (ERC).
 
“This is one more avenue where teachers and students who visit the NASTAR Center can learn about current NASA projects,” said Gregory Kennedy, the NASTAR Center Director of Education. “NASA’s Jet Propulsion Laboratory in Pasadena, California, has provided educational materials that will help us excite young people about the space program,” he added.
 
The NASTAR Center is an Affiliate Member of the NASA Pennsylvania Space Grant Consortium and offers science, technology, engineering, and mathematics (STEM) educational programs for students and teachers. To learn more about NASTAR’s Education Programs, go to www.nastarcenter.com/education.

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May 14, 2013 – ETC Contracts with Histria International to Supply BARA-MED XD in Romaniahttps://www.etcusa.com/may-14-2013-etc-contracts-with-histria-international-to-supply-bara-med-xd-in-romania/ https://www.etcusa.com/may-14-2013-etc-contracts-with-histria-international-to-supply-bara-med-xd-in-romania/#comments Thu, 30 May 2013 11:37:23 +0000 http://www.etcusa.com/?p=2443 Continue reading ]]>

Southampton, PA, USA, May 14, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) has contracted with Histria International to ship one BARA-MED® XD hyperbaric chamber to Bucharest, Romania. The chamber will be computer-controlled and will include ETC’s patient-friendly SMOOTH-RIDE(TM) compression protocol.
 
ETC’s International Marketing Manager, Jamal Radford, stated, “We are proud to deliver the best technology in hyperbaric therapy to the country of Romania.”
Currently, both in the United States and overseas, only a small percentage of hospitals offer hyperbaric oxygen therapy (HBO). However, as the benefits of hyperbaric medicine become more widely recognized, the number of chambers is increasing. ETC’s BioMedical Systems Division, and our customers, remain at the forefront of hyperbaric medicine, in equipment, research, and application. In addition to their regular use in clinical treatments at some of the best medical facilities around the world, ETC’s hyperbaric chambers are routinely involved in research on new indications for which HBO holds promise, and on the refinements of treatment protocols for established indications.
 
ETC’s monoplace hyperbaric chambers, provided by the company’s BioMedical Systems Group, include BARA·PRESS(TM) and SMOOTH-RIDE(TM). BARA·PRESS is the software which can control, as well as record, the treatment, allowing the operator to monitor the patient more easily, consistently and accurately. SMOOTH-RIDE(TM) is a pressure change technology that enhances patient comfort by reducing the incidence of barotrauma by 67 percent, ensuring more patients complete all their treatment sessions. The BARA-MED XD accommodates patients up to 700 pounds.

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ETC’s The NASTAR Center Becomes NASA Space Place Community Partnerhttps://www.etcusa.com/etcs-the-nastar-center-becomes-nasa-space-place-community-partner/ https://www.etcusa.com/etcs-the-nastar-center-becomes-nasa-space-place-community-partner/#comments Tue, 28 May 2013 19:05:04 +0000 https://www.etcusa.com/?p=3002 Continue reading ]]>

Southampton, PA, USA. May 28, 2013 – The NASTAR® Center, the premier commercial space training and research center in the world, has been designated as a “NASA Jet Propulsion Laboratory (JPL) Space Place Community Partner”. The NASTAR Center and the NASA Space Place partnership help support mutual initiatives to encourage, facilitate, and promote space-based education. The Space Place was started in February 1998 as an education and public outreach project of NASA’s New Millennium Program. The Space Place program includes a kid-friendly web site (www.spaceplace.nasa.gov) and bulletin board displays at Community Partner sites around the country. Its target audience is elementary-school-age kids. As a Space Place Community Partner, the NASTAR Center has added a Space Place display to its Educator Resource Center (ERC).
 
“This is one more avenue where teachers and students who visit the NASTAR Center can learn about current NASA projects,” said Gregory Kennedy, the NASTAR Center Director of Education. “NASA’s Jet Propulsion Laboratory in Pasadena, California, has provided educational materials that will help us excite young people about the space program,” he added.
 
The NASTAR Center is an Affiliate Member of the NASA Pennsylvania Space Grant Consortium and offers science, technology, engineering, and mathematics (STEM) educational programs for students and teachers. To learn more about NASTAR’s Education Programs, go to www.nastarcenter.com/education.
 
About NASTAR Center
The National AeroSpace Training And Research (NASTAR®) Center is a business unit of Environmental Tectonics Corporation (ETC®). NASTAR Center is a state-of-the-art aerospace training, research, and educational facility dedicated to improving the health and safety of humans in extreme conditions. NASTAR Center serves military aviation (fixed and rotary wing), civil aviation (fixed and rotary wing), space travel (government and private) and provides research support for component and human factors testing. www.nastarcenter.com

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ETC Announces Fiscal 2013 Full Year and Fourth Quarter Resultshttps://www.etcusa.com/etc-announces-fiscal-2013-full-year-and-fourth-quarter-results/ https://www.etcusa.com/etc-announces-fiscal-2013-full-year-and-fourth-quarter-results/#comments Thu, 23 May 2013 18:02:00 +0000 https://www.etcusa.com/?p=3143 Continue reading ]]>

 
Fiscal 2013 Highlights:

  • Gross profit margin as a percentage of net sales of 39.6%
  • Pre-tax income increased 17.8% to a record $8.8 million
  • Diluted earnings per share increased 46.2% to $0.19
  • EBITDA increased 16.9% to a record $11.7 million
  • Completed a financial restructuring that reduces annual net cash payments for dividends and interest by approximately $1.5 million, and reduced Common Stock equivalents by 5 million shares

 
SOUTHAMPTON, PA, USA, May 23, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) today reported an increase in net income attributable to ETC for fiscal 2013 to $5.0 million, or $0.19 per diluted share, compared to net income attributable to ETC of $4.9 million, or $0.13 per diluted share, in fiscal 2012. This improvement was achieved on lower net sales of $62.8 million for fiscal 2013, compared to $66.3 million in fiscal 2012. The 5.3% reduction in net sales reflects decreased sales to the U.S. Government and to International customers, offset in part by increased sales to Domestic customers.
 
Income before income taxes for fiscal 2013 increased to $8.8 million, a $1.3 million, or 17.8%, increase compared to $7.5 million in fiscal 2012. The increase in income before income taxes was due primarily to an increase in gross profit margin as a percentage of net sales to 39.6% for fiscal 2013 compared to 35.5% in fiscal 2012, which was the result of a more profitable product and customer sales mix, combined with a 3.0% decrease in operating expenses.
 
William F. Mitchell, ETC’s President and Chief Executive Officer, stated, “We are very pleased that ETC achieved increased profitability and earnings per share on lower net sales in fiscal 2013, which reflects both solid operating income and the positive affect of our financial restructuring.”
 
Business Overview:
 
ETC is a significant supplier and innovator in the following product areas: (i) software driven products and services used to create and monitor the physiological effects of flight, including high performance jet tactical flight simulation, upset recovery and spatial disorientation, and both suborbital and orbital commercial human spaceflight; collectively, Aircrew Training Systems (“ATS”); (ii) altitude (hypobaric) chambers; (iii) the Advanced Disaster Management Simulator (“ADMS”); (iv) steam and gas (ethylene oxide) sterilizers; (v) environmental testing and simulation devices; and (vi) hyperbaric (100% oxygen) chambers for one person (monoplace chambers).
 
We operate in two primary business segments, Aerospace Solutions (“Aerospace”) and Commercial/Industrial Systems (“CIS”). Aerospace encompasses the design, manufacture, and sale of: (i) Aircrew Training Systems; (ii) altitude (hypobaric) chambers; (iii) hyperbaric chambers for multiple persons (multiplace chambers); and (iv) ADMS, as well as integrated logistics support for customers who purchase these products or similar products manufactured by other parties. These products and services provide customers with an offering of comprehensive solutions for improved readiness and reduced operational costs. Sales of our Aerospace products are made principally to U.S. and foreign government agencies. CIS encompasses the design, manufacture, and sale of: (i) steam and gas (ethylene oxide) sterilizers; (ii) environmental testing and simulation devices; and (iii) hyperbaric (100% oxygen) chambers for one person (monoplace chambers), as well as parts and service support for customers who purchase these products or similar products manufactured by other parties. Sales of our CIS products are made principally to the healthcare, pharmaceutical, and automotive industries.
 
We presently have two foreign operating subsidiaries. ETC-PZL Aerospace Industries SP. Z 0.0, (“ETC-PZL”), our 95%-owned subsidiary in Warsaw, Poland, manufactures simulators for our Aerospace segment and provides software to support our domestic products. Environmental Tectonics Corporation (Europe) Limited (“ETC-Europe”), our 99%-owned subsidiary, functions as a sales office in the United Kingdom.
 
ETC’s unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. ETC is headquartered in Southampton, PA. For more information about ETC, visit www.etcusa.com.
 
Fiscal 2013 Results of Operations:
 
Domestic sales in fiscal 2013 were $19.0 million, an increase of $2.4 million, or 14.5%, over fiscal 2012, and represented 30.3% of total net sales, compared to 25.1% in fiscal 2012. The increase in Domestic sales is primarily a result of a $3.0 million, or 42.8%, increase in sales of Sterilization Systems, which reflects record orders received in fiscal 2012, and a $1.3 million, or 74.4%, increase in sales of Environmental Testing and Simulation Systems. These increases were partially offset by a $0.9 million, or 41.9%, decrease in sales of ADMS, as well as smaller decreases in other categories.
 
U.S. Government sales in fiscal 2013 were $22.2 million, a decrease of $5.0 million, or 18.3%, from fiscal 2012, which reflect lower sales related to a high performance human centrifuge, offset in part, by increased sales related to a suite of altitude (hypobaric) chambers. U.S. Government sales represented 35.4% of total net sales in fiscal 2013 compared with 41.0% in fiscal 2012. Given the existing progress made on U.S. Government contracts in the Company’s sales backlog, the Company anticipates the concentration of sales with the U.S. Government will continue to lessen in fiscal 2014.
 
International sales in fiscal 2013, including those of the Company’s foreign subsidiaries, were $21.5 million, a decrease of $1.0 million, or 4.3%, from fiscal 2012, due primarily to a $1.6 million, or 11.8%, decrease in sales of ATS related products, and a $1.1 million, or 40.1%, decrease in Hyperbaric sales. These decreases were offset, in part, by a $1.0 million, or 44.7%, increase in ETC-PZL sales, as well as smaller increases in other product categories. In aggregate, International sales represented 34.3% of the Company’s total net sales, an increase over 33.9% in fiscal 2012. In both fiscal 2013 and fiscal 2012, International sales totaling at least $500,000 were made to customers in eight (8) different countries. Fluctuations in sales to international countries from year to year primarily reflect percentage of completion revenue recognition on the level and stage of development and production on multi-year long-term contracts.
 
Segment sales
Aerospace sales were $42.3 million in fiscal 2013, a decrease of $6.6 million, or 13.5%, from sales of $48.9 million in fiscal 2012. This decrease was primarily due to less revenue recorded on one of our international contracts for multiple Aerospace products as the aeromedical center in which this equipment is housed was dedicated in October 2012. Sales of these products accounted for 67.4% of our total net sales for fiscal 2013 versus 73.8% in fiscal 2012. Sales within our CIS segment increased $3.1 million, or 17.7%, and constituted 32.6% of our total net sales for fiscal 2013 compared to 26.2% in fiscal 2012.
 
Given the Company’s sales backlog as of February 22, 2013, it is anticipated that our Aerospace segment will begin to generate more of its revenues from International contracts, while sales within our CIS segment are expected to be affected by a lower sales backlog entering fiscal 2014.
 
Gross profit
Gross profit for fiscal 2013 increased by $1.3 million, or 5.7%, over fiscal 2012. This improvement was achieved despite lower sales due primarily to a more profitable product and customer sales mix. Gross profit margin as a percentage of net sales increased to 39.6% in fiscal 2013 over 35.5% in fiscal 2012. This increase was due primarily to fiscal 2012 costs related to a U.S. government contract, and to a more profitable product and customer sales mix in fiscal 2013.
 
Operating Expenses
Selling and marketing expenses for fiscal 2013 of $5.6 million increased slightly over fiscal 2012. As a percentage of net sales, selling and marketing expenses increased to 8.9% in fiscal 2013 from 8.3% in fiscal 2012 due primarily to lower net sales in fiscal 2013.
 
General and administrative expenses for fiscal 2013 of $8.2 million decreased slightly by $0.3 million, or 3.8%, from fiscal 2012. The decrease is primarily the result of lower professional fees and an on-going effort to reduce non-revenue generating expenses. As a percentage of net sales, general and administrative expenses increased to 13.0% in fiscal 2013 compared to 12.8% in fiscal 2012 due primarily to lower net sales in fiscal 2013.
 
Research and development expenses include spending for potential new products and technologies, and work performed internationally under government grant programs. This spending, net of grant payments from the Polish and Turkish governments, totaled $1.2 million for fiscal 2013 compared to $1.4 million in fiscal 2012, a decrease of $0.2 million, or 16.5%. The decrease was a result of more research and development employees being assigned to specific contracts; thus, expenses related to these employees were included in cost of sales in fiscal 2013. Most of the Company’s research efforts, which were and continue to be a significant cost of its business, are included in cost of sales for applied research for specific contracts, as well as research for feasibility and technology updates. As a percentage of net sales, research and development expenses decreased slightly to 1.9% in fiscal 2013 compared to 2.1% in fiscal 2012.
 
Operating income
Operating income increased $1.8 million, or 22.2%, to $9.9 million for fiscal 2013 compared to $8.1 million in fiscal 2012. The 5.7% increase in gross profit combined with a 3.0% reduction in operating expenses generated the increase in operating income.
 
On a segment basis, Aerospace had operating income of $9.1 million for fiscal 2013, a $1.9 million, or 26.7%, increase in operating income compared to $7.2 million in fiscal 2012. CIS had operating income of $3.9 million for fiscal 2013, a $0.2 million, or 4.2%, decrease in operating income compared to $4.1 million in fiscal 2012. These segment operating results were offset, in part, by unallocated corporate expenses.
 
Given the positive operating performance in fiscal 2013, the level and mix of the Company’s sales backlog as of February 22, 2013, open proposals and proposals under preparation, which include quotations for some significant potential international contract awards, and the Company’s continuing positive feedback from potential customers for its ATFS technology, it is anticipated that the Company will produce income from operations in fiscal 2014.
 
Net income attributable to ETC
Net income attributable to ETC was $5.0 million, or $0.19 per diluted share, in fiscal 2013 versus $4.9 million, or $0.13 per diluted share, in fiscal 2012; an increase of $0.1 million, or 1.5%. Operating income for fiscal 2013 was $9.9 million versus $8.1 million in fiscal 2012, an increase of $1.8 million, or 22.2%. Operating income was favorably affected in dollars by a higher gross profit and was favorably affected as a percentage of net sales by a 3.0% decrease in operating expenses. The significant increase in diluted earnings per share was due in part to increased income and also to reduced shares outstanding following the repurchase of 386 shares of Series D Preferred Stock, representing all of the Company’s issued and outstanding shares of Series D Preferred Stock, and 9,614 shares of Series E Preferred Stock, representing a significant portion of the Company’s issued and outstanding Series E Preferred Stock.
 
Fiscal 2013 Fourth Quarter Results of Operations:
Net sales for the fiscal 2013 fourth quarter (“the 2013 quarter”) of $15.1 million, decreased $1.8 million, or 11.0% compared to net sales of $16.9 million in the fiscal 2012 fourth quarter (“the 2012 quarter”). The decrease reflects decreased sales to Domestic customers and to the U.S. Government, while sales to International customers remained relatively flat.
 
Despite lower net sales, income before income taxes for the 2013 quarter was $1.6 million, a $1.0 million, or 167.1%, increase over the 2012 quarter. The increase in income before income taxes was due primarily to an increase in gross profit margin as a percentage of net sales to 38.7% for the 2013 quarter compared to 32.3% in the 2012 quarter, which was the result of a more profitable product and customer sales mix, combined with a 19.2% decrease in operating expenses.
 
Domestic sales for the 2013 quarter were $4.3 million, a decrease of $1.3 million, or 23.4%, compared to $5.6 million in the 2012 quarter, and represented 28.4% of total net sales in the 2013 quarter compared to 33.0% in the 2012 quarter. The decrease in Domestic sales is primarily a result of lower sales of Hyperbaric (monoplace) chambers, Environmental Testing and Simulation Systems, and spare parts. These decreases were offset, in part, by an increase in sales of Sterilization Systems, which reflects record orders received in fiscal 2012.
 
U.S. Government sales for the 2013 quarter were $3.7 million, a decrease of $0.5 million, or 12.9%, compared to $4.2 million in the 2012 quarter, which reflect lower sales related to a high performance human centrifuge, offset, in part, by increased sales related to a suite of altitude (hypobaric) chambers. U.S. Government sales represented 24.6% of total net sales in the 2013 quarter compared to 25.1% in the 2012 quarter. Given the existing progress made on U.S. Government contracts in the Company’s sales backlog as of February 22, 2013, the Company anticipates the concentration of sales with the U.S. Government will continue to lessen in fiscal 2014.
 
International sales in both the 2013 quarter and the 2012 quarter, including those of the Company’s foreign subsidiaries, were $7.1 million. Although International sales remained flat quarter over quarter, there was a shift in sales away from ATS, primarily due to less revenue recorded on one of our international contracts for multiple Aerospace products as the aeromedical center in which this equipment is housed was dedicated in October 2012, and towards ETC-PZL and Sterilization Systems.
 
Segment sales
Aerospace sales were $10.1 million for the 2013 quarter, a decrease of $1.4 million, or 11.9%, compared to sales of $11.5 million in the 2012 quarter. Sales of these products accounted for 67.2% of total net sales in the 2013 quarter compared to 67.9% in the 2012 quarter. CIS sales decreased $0.5 million, or 9.0%, to $4.9 million for the 2013 quarter compared to $5.4 million in the 2012 quarter, and constituted 32.8% of total net sales in the 2013 quarter compared to 32.1% in the 2012 quarter.
 
Gross profit
Gross profit for the 2013 quarter was $5.8 million compared to $5.4 million in the 2012 quarter, an increase of $0.4 million, or 6.8%. The increase in gross profit was achieved despite a decrease in net sales, due primarily to the increase in gross profit margin as a percentage of net sales to 38.7% for the 2013 quarter from 32.3% in the 2012 quarter. This increase was due primarily to costs incurred in the 2012 quarter related to a U.S. government contract, and to a more profitable product and customer sales mix for the 2013 quarter.
 
Operating expenses
Selling and marketing expenses for the 2013 quarter of $1.5 million remained unchanged compared to the 2012 quarter. As a percentage of net sales, selling and marketing expenses increased to 9.6% in the 2013 quarter from 8.7% in the 2012 quarter. The increase is primarily the result of a decrease in net sales.
 
General and administrative expenses for the 2013 quarter were $2.2 million compared to $2.5 million in the 2012 quarter, a decrease of $0.3 million, or 13.0%. As a percentage of net sales, general and administrative expenses decreased to 14.9% in the 2013 quarter from 15.2% in the 2012 quarter. The decrease is primarily the result of lower professional fees and an on-going effort to reduce non-revenue generating expenses.
 
Research and development expenses include spending for potential new products and technologies, and internationally, work performed under government grant programs. This spending, net of grant payments from the Polish and Turkish governments, totaled $0.3 million for the 2013 quarter compared to $0.9 million for the 2012 quarter, a decrease of $0.6 million, or 68.9%. The decrease was a result of more research and development employees being assigned to specific contracts; thus, expenses related to these employees were included in cost of sales in the 2013 quarter. Most of the Company’s research efforts, which were and continue to be a significant cost of its business, are included in cost of sales for applied research for specific contracts, as well as research for feasibility and technology updates. As a percentage of net sales, research and development expenses decreased to 1.8% in the 2013 quarter compared to 5.0% in the 2012 quarter.
 
Operating income
Operating income increased by $1.3 million, or 231.7%, to $1.9 million for the 2013 quarter compared to $0.6 million in the 2012 quarter. Operating income as a percentage of net sales increased to 12.5% for the 2013 quarter from 3.4% in the 2012 quarter. The 6.8% increase in gross profit combined with a 19.2% reduction in operating expenses generated the increase in operating income.
 
On a segment basis, Aerospace had operating income of $2.2 million for the 2013 quarter, a $1.8 million increase from operating income of $0.4 million in the 2012 quarter. CIS had operating income of $0.5 million in the 2013 quarter, a $0.6 million decrease from operating income of $1.1 million in the 2012 quarter. These segment operating results were offset, in part, by unallocated corporate expenses of $0.8 million and $1.0 million in the 2013 quarter and the 2012 quarter, respectively.
 
Net income attributable to ETC
Net income attributable to ETC was affected by an income tax provision of $0.8 million for the 2013 quarter compared to an income tax benefit of $0.3 million in the 2012 quarter. As a result, net income attributable to ETC was $0.8 million for the 2013 quarter, or $0.04 per diluted share, versus $0.9 million, or $0.02 per diluted share, in the 2012 quarter. The significant increase in diluted earnings per share was due in part to increased operating income, offset by a higher tax provision, and also the positive affect of reduced shares outstanding following the repurchase of 386 shares of Series D Preferred Stock, representing all of the Company’s issued and outstanding shares of Series D Preferred Stock, and 9,614 shares of Series E Preferred Stock, representing a significant portion of the Company’s issued and outstanding Series E Preferred Stock.
 
Financial Tables Follow

may-23-13-01

may-23-13-02

may-23-13-03

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ETC Contracts with Histria International to Supply BARA-MED XD in Romaniahttps://www.etcusa.com/etc-contracts-with-histria-international-to-supply-bara-med-xd-in-romania/ https://www.etcusa.com/etc-contracts-with-histria-international-to-supply-bara-med-xd-in-romania/#comments Tue, 14 May 2013 19:08:34 +0000 https://www.etcusa.com/?p=3004 Continue reading ]]>

Southampton, PA, USA, May 14, 2013 – Environmental Tectonics Corporation (OTC Pink: ETCC) (“ETC” or the “Company”) has contracted with Histria International to ship one BARA-MED® XD hyperbaric chamber to Bucharest, Romania. The chamber will be computer-controlled and will include ETC’s patient-friendly SMOOTH-RIDE™ compression protocol.
 
ETC’s International Marketing Manager, Jamal Radford, stated, “We are proud to deliver the best technology in hyperbaric therapy to the country of Romania.”
 
Currently, both in the United States and overseas, only a small percentage of hospitals offer hyperbaric oxygen therapy (HBO). However, as the benefits of hyperbaric medicine become more widely recognized, the number of chambers is increasing. ETC’s BioMedical Systems Division, and our customers, remain at the forefront of hyperbaric medicine, in equipment, research, and application. In addition to their regular use in clinical treatments at some of the best medical facilities around the world, ETC’s hyperbaric chambers are routinely involved in research on new indications for which HBO holds promise, and on the refinements of treatment protocols for established indications.
 
ETC’s monoplace hyperbaric chambers, provided by the company’s BioMedical Systems Group, include BARA·PRESS(TM) and SMOOTH-RIDE(TM). BARA·PRESS is the software which can control, as well as record, the treatment, allowing the operator to monitor the patient more easily, consistently and accurately. SMOOTH-RIDE(TM) is a pressure change technology that enhances patient comfort by reducing the incidence of barotrauma by 67 percent, ensuring more patients complete all their treatment sessions. The BARA-MED XD accommodates patients up to 700 pounds.

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ETC Simulation Contracted to Update ADMS Training Center for Korean National Fire Service Academyhttps://www.etcusa.com/etc-simulation-contracted-to-update-adms-training-center-for-korean-national-fire-service-academy/ https://www.etcusa.com/etc-simulation-contracted-to-update-adms-training-center-for-korean-national-fire-service-academy/#comments Thu, 09 May 2013 19:09:54 +0000 https://www.etcusa.com/?p=3006 Continue reading ]]>

KNFSA release photo
 
SOUTHAMPTON, Pa., USA, May 9, 2013 – Environmental Tectonics Corporation’s (OTC Pink: ETCC) (“ETC” or the “Company”) Simulation Division, located in Orlando, Fla., has been contracted by the Korean National Fire Service Academy (“KNFSA”) to extend their Maintenance Plan for their Advanced Disaster Management Simulator (“ADMS”). The KNFSA’s customized ADMS-Command was first delivered in 2007, and the extension of their annual maintenance plan will ensure continued optimal performance of their simulator.
 
The KNFSA currently possesses a customized ADMS system featuring a nearly 200 square mile geo-typical South Korean city with response vehicles that reflect those used by local emergency responders. The KNFSA system is used to provide advanced training for all Korean Fire Service Officers. ADMS allows trainees to gain true-to-life experience and build confidence in managing incidents that cannot be trained for live, including low and high-rise structural firefighting, industrial and hazardous materials fires, traffic accidents, urban search and rescue and mountain wildfires.
 
“We are pleased that the KNFSA continues to put their trust in both their ADMS system and in ETC Simulation.” said Marco van Wijngaarden, President of ETC Simulation. “Since 2007, they have been able to offer their students a higher level of training through the use of ADMS, and the extension of their contract demonstrates their commitment to provide the best training experience possible.”

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ETC Ships First of Four Research Altitude Chambers to United States Air Forcehttps://www.etcusa.com/etc-ships-first-of-four-research-altitude-chambers-to-united-states-air-force/ https://www.etcusa.com/etc-ships-first-of-four-research-altitude-chambers-to-united-states-air-force/#comments Thu, 25 Apr 2013 19:23:32 +0000 https://www.etcusa.com/?p=3008 Continue reading ]]>

Southampton, PA, April 25, 2013 – Environmental Tectonics Corporation (ETC) (OTC Pink: ETCC) announced the shipment of the first of four Research Altitude Chambers to the 711th Performance Wing at Wright Patterson Air Force Base in Dayton, OH, USA.
 
The first of the four altitude chambers sold to the US Air Force was shipped today to the 711th Performance Wing building where it will be integrated with the other three chambers, when completed, and then, commissioned together.
 
Valued at over $37 Million, the suite of research chambers allows maximum flexibility for the design and configuration of unique test scenarios under a wide range of environmental conditions. Each of the four chambers will have its own unique internal layouts and compartmentalization. Three of these four chambers will be “man-rated” allowing human occupancy for ongoing initiatives. The fourth chamber will be utilized for equipment and various research testing scenarios.
 
ETC’s suite of chambers will support the operational missions for the Aeromedical Research Mission which include:

  • Human performance assessment in moderate and high altitude conditions
  • Aircrew equipment development, qualification and Man Rating
  • Operationally focused aeromedical research
  • Non-medical engineering test work for aircraft/weapons programs

 
States William F. Mitchell, President and CEO, “We are pleased to take this program to the field and look forward to completing the installation of a suite of research altitude chambers which will allow the Air Force to carry out its important mission for our military personnel.”

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ETC Announces Voluntary Deregistration of its Common Stockhttps://www.etcusa.com/etc-announces-voluntary-deregistration-of-its-common-stock/ https://www.etcusa.com/etc-announces-voluntary-deregistration-of-its-common-stock/#comments Wed, 27 Mar 2013 19:25:32 +0000 https://www.etcusa.com/?p=3010 Continue reading ]]>

SOUTHAMPTON, PA, USA, March 27, 2013 – Environmental Tectonics Corporation (OTCQB: ETCC) (“ETC” or the “Company”) announced today that it filed a Form 15 with the Securities and Exchange Commission (“SEC”) to voluntarily deregister its shares of common stock under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As a result of this filing, the Company’s obligation to file certain reports with the SEC, including annual, quarterly and current reports on Form 10-K, Form 10-Q and Form 8-K, respectively, was immediately suspended. Other filing requirements will terminate upon the effectiveness of the deregistration, which is expected to occur 90 days after the filing of the Form 15.
 
As a result of filing the Form 15, ETC anticipates that its shares of common stock will no longer be quoted on the OTC Quality Board but instead will be quoted on the OTC Pink Market under the ticker symbol “ETCC”. However, ETC cannot guarantee that trading in its common stock will continue in the OTC Pink Market or in any other forum.
 
Commenting on the Form 15 filing, William F. Mitchell, Sr., ETC’s President and Chief Executive Officer, said, “After careful consideration of the advantages and disadvantages, and in light of our size and market capitalization, we have concluded that deregistration of our securities will generate substantial cost savings and allow greater management focus on the core business of ETC. Even though we will no longer be required to file reports under the Exchange Act, we still intend to release financial results, be audited annually and issue press releases from time to time for the benefit of our shareholders.”

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