First Quarter 2024 Net Loss of $751,000 ($0.22 loss per share) v. Net Loss of $1,117,000 ($0.33 loss per share) in Prior Period First Quarter 2024 EBITDA, as adjusted, was a loss of $551,000 ($0.16 loss per share) v. loss of $1,134,000 ($0.34 loss per share) in Prior Period Backlog at March 31, 2024 up 37.3% from 2023 year-end HAUPPAUGE, N.Y., May 20, 2024 (GLOBE NEWSWIRE) -- Orbit International Corp. (OTC Expert Market:ORBT) today announced results for the first quarter ended March 31, 2024. First Quarter 2024 vs. First Quarter 2023 Net sales were $6,175,000, as compared to $5,198,000. Gross margin was 30.8%, as compared to 20.7%. Net loss was $751,000 ($0.22 loss per share), as compared to a net loss of $1,117,000 ($0.33 loss per share). Earnings before interest, taxes, depreciation and amortization, fair value adjustment on contingent liabilities and other non-current liability, and stock-based compensation (EBITDA, as adjusted) was a loss of $551,000 ($0.16 per share), as compared to a loss of $1,134,000 ($0.34 loss per share). Backlog at March 31, 2024 was $23.8 million compared to $17.4 million at December 31, 2023. Mitchell Binder, President and CEO of Orbit International, commented, "Our net loss for the three months ended March 31, 2024, was $751,000 ($0.22 loss per share) compared to a net loss of $1,117,000 ($0.33 loss per share) for the prior comparable period. EBITDA, as adjusted, for the three months ended March 31, 2024, was a loss of $551,000 ($0.16 loss per share) compared to a loss of $1,134,000 ($0.34 per share) in the comparable period. Although we incurred a loss during the current period, operating results slightly improved from the prior comparable period due to higher sales at our Simulator Product Solutions LLC ("SPS") subsidiary. The higher sales followed significantly higher bookings at SPS during the prior twelve months ended December 31, 2023." Binder added, "Our current period operating results were adversely affected by lower operating income from our legacy businesses, primarily due to lower sales during the quarter. However, we expect sales from our legacy business to improve in future quarters as a result of improved bookings that began in the second half of 2023. As previously reported, SPS' operating results also reflect higher cost of sales and selling, general and administrative costs, as we incurred significant infrastructure costs during the prior year to support the increase in sales and bookings in 2023 as well as the increase in sales expected for 2024. At the time of the SPS acquisition in January 2022, we anticipated the need to invest in infrastructure and internal controls in order to bring SPS up to the standards of a public company. We believe that our cost structure at SPS is now aligned to support our growth." Mr. Binder added, "Our sales for the three months ended March 31, 2024, increased to $6,175,000 compared to $5,198,000 from the prior comparable period. This increase in sales was attributable to increased sales from SPS, which is part of our Orbit Electronics Group ("OEG"), and our Orbit Power Group ("OPG"). The sales increase was partially offset by a decrease in sales from our OEG attributable to our legacy businesses and exclusive of SPS." Mr. Binder further added, "Our gross margin for the three months ended March 31, 2024, increased to 30.8% compared to 20.7% in the prior comparable period. This increase in gross margin during the three months ended March 31, 2024, was attributable to a higher gross margin at both of our operating segments due to an increase in sales and despite an increase in infrastructure costs at SPS. We expect gross margins to continue to improve throughout 2024 as sales improve and we take advantage of the operating leverage inherent in our businesses." Mr. Binder added, "Despite the reduction in the operating loss for the three months ended March 31, 2024 compared to the prior comparable period, selling, general and administrative expenses for the current quarter increased by $323,000 from the prior comparable period, primarily due to higher expenses from SPS as well as slightly higher expenses from our legacy business and slightly higher corporate costs. Selling, general and administrative expenses at SPS increased during the current period principally because of additional sales personnel that were needed and hired during the second quarter of 2022 as well as higher commissions that were earned during the current first quarter resulting from a significant increase in bookings in the first quarter of 2024 compared to the comparable period of the prior year. Selling, general and administrative expenses at our OEG (exclusive of SPS), our OPG and our corporate costs slightly increased due primarily to wage inflation." Mr. Binder continued, "Backlog at March 31, 2024, was approximately $23,800,000 compared to approximately $17,400,000 at December 31, 2023, an increase of approximately $6,500,000 or approximately 37.3%. The increase in backlog is reflective of strong bookings from both our legacy business and SPS during the first quarter of 2024." David Goldman, Chief Financial Officer, noted, "At March 31, 2024, our cash and cash equivalents aggregated approximately $1.8 million and our financial condition continued to remain solid as evidenced by our 3.3 to 1 current ratio. Our book value per share at March 31, 2024 was $5.30, which compares to $5.54 at December 31, 2023. (Note: book value per share does not include any additional value for our remaining reserved deferred tax asset). To offset future federal and state taxes resulting from profits, we have approximately $3.9 million and $0.5 million in available federal and New York State net operating loss carryforwards, respectively." Mr. Binder added, "Because our revenues are tied to delivery schedules specified in our contracts, it is often difficult to judge our performance on a quarterly basis. Our first quarter operating loss for 2024 reflected an improvement from our weak operating results in the comparable period in the prior year. These results were due to an increase in SPS sales despite an increase in SPS infrastructure costs. However, despite the improvement from SPS, our operating results were negatively impacted by lower sales from our legacy business, which negatively impacted operating results for the quarter. This was primarily the result of weak bookings in the first half of 2023 from our legacy business. However, bookings from our legacy business improved in the second half of 2023 and SPS recorded an increase of 100% in bookings in 2023 over its bookings in 2022. Furthermore, for the first quarter ended March 31, 2024, as previously reported, we reported a very strong start to the 2024 year with consolidated bookings of approximately $12,700,000, which included strong bookings from both SPS and our legacy businesses. The increase in bookings during the quarter significantly increased our backlog by approximately $6,500,000 or 37.3% from our year ended December 31, 2023. As a result, and based on delivery schedules, we expect revenue levels to increase, particularly in the second half of 2024 and we expect that the increase in sales will improve our operating results as we take advantage of the operating leverage inherent in our businesses." Mr. Binder concluded, "As a result of our stock being moved to the OTC Expert Market on May 16, 2023, our Board moved to suspend our existing repurchase program until the Company is reinstated onto the OTC Pink Market. On March 11, 2024, we filed our 2022 Annual Report with the OTC and filed our 2023 Annual Report on April 16, 2024. However, we are awaiting reinstatement. Through May 15, 2023, we had purchased approximately 188,185 shares under the existing program." Orbit International Corp., through its Electronics Group, is involved in the development and manufacture of custom electronic device and subsystem solutions for military, industrial and commercial applications through its production facility in Hauppauge, New York. Orbit's Power Group, also located in Hauppauge, NY, designs and manufactures a wide array of power products including AC power supplies, frequency converters, inverters, VME/VPX power supplies as well as various COTS power sources. Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit's operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's reports posted with the OTC Disclosure and News service. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. CONTACT                                 David Goldman                         Chief Financial Officer                 631-435-8300                         (See Accompanying Tables) Orbit International Corp. Consolidated Statements of Operations (in thousands, except per share data) (unaudited)       Three Months EndedMarch 31,(unaudited)       2024   2023               Net sales   $ 6,175     $ 5,198                 Cost of sales     4,275       4,124                 Gross profit     1,900       1,074                 Selling general and administrative expenses     2,643       2,320                 Interest expense     5       1                 Other (income) expense, net     (14 )     (148 )               Loss before income taxes     (734 )     (1,099 )               Income tax provision     17