Servotronics, Inc. Announces Second Quarter And Six Month Results For The Periods Ended June 30, 2016
Servotronics, Inc. (NYSE MKT: SVT) a designer and manufacturer of servo-control components and other advanced technology products announced today its financial results for the periods ended June 30, 2016. Reporting strong revenue growth of approximately 11% for the three and six month periods ended June 30, 2016, Kenneth Trbovich, President of Servotronics, Inc. stated; "Our continued commitment to quality and excellence is driving the Company's organic growth in revenues while our successful efforts to implement operating efficiencies are helping to improve overall results."
Net income increased approximately 62% for three months ended June 30, 2016 to $1,004,000 (or $0.45 per share Basic and $0.43 Diluted) compared to net income for the same period of 2015 of $621,000 (or $0.28 per share Basic and $0.27 Diluted). Net income for the six months ended June 30, 2016 was $1,262,000 (or $0.57 per share Basic and $0.55 Diluted) compared to net income of $3,392,000 for the same period of 2015 which included a previously disclosed insurance settlement related to an arbitration award. Excluding those items, the Company's adjusted net income increased approximately 177% from $455,000 for the six months ended June 30, 2015 to $1,262,000 for the same period of 2016.
Reconciliation of Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, ("GAAP"). The Company's management uses the non-GAAP measure "adjusted net income" in their analysis of the Company's performance. This measure, as used by Servotronics, adjusts net income determined in accordance with GAAP to reflect changes in financial results associated with the highlighted charges and income items. Management believes the presentation of this financial measure reflecting these non-GAAP adjustments provides important supplemental information in evaluating the operating results of the Company as distinct from results that include items that are not indicative of ongoing operating results. This non-GAAP disclosure has limitations as an analytical tool, should not be viewed as a substitute for net earnings determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of the Company's results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies. This supplemental presentation should not be construed as an inference that the Company's future results will be unaffected by similar adjustments to net income determined in accordance with GAAP.
Included below is a reconciliation of non-GAAP adjusted financial measures to reported amounts ($000's omitted).