ELMA, N.Y., July 3, 2012 /PRNewswire/ -- Servotronics, Inc.'s (Company) Annual Meeting was held in Buffalo, New York on Tuesday, July 3, 2012. The Company's current activities were reviewed and presented. The Company is composed of two groups – the Advanced Technology Group (ATG) and the Consumer Products Group (CPG). The ATG primarily designs, develops and manufactures servo control and other components for various commercial and government applications (i.e., aircraft, jet engines, missiles, manufacturing equipment, etc.). The CPG designs and manufactures cutlery, bayonets, machetes and combat, survival, sporting, agricultural, and pocket knives for both commercial and government applications.
The year 2011 was a year of increased net income, product developments and aggressive pursuits of new marketing targets of opportunity. Servotronics, Inc. reported an approximate 23.4% increase in Net Income to $2,626,000 (or $1.31 per share Basic and $1.24 Diluted) on Revenues of $34,181,000 for the fiscal year ended December 31, 2011 as compared to a Net Income of $2,128,000 (or $1.08 Basic and $1.01 Diluted) on Revenues of $31,659,000, respectively for the fiscal year ended December 31, 2010. The Company primarily attributes the year to year increase in Net Income to increased sales at the Company's Advanced Technology Group (ATG) in combination with cost containment activities and a decrease in the effective tax rate associated with the applicability of the appropriate tax credits.
The Company's strong balance sheet and significant liquidity were clearly presented. On December 31, 2011, Servotronics' Working Capital was approximately $20,500,000, the Current Ratio and Quick Ratio were 6.9 to 1 and 3.1 to 1, respectively, and the long term Institutional Debt to equity ratio was .125 to 1. All of these 2011 business performance ratios clearly show continued strength and enhancement from an already strong foundation.
Also noted was that the Company declared a $0.15 cash dividend per share to shareholders of record on June 1, 2012. This cash dividend on the Company's common stock for the fifth consecutive year does not represent that the Company will pay dividends on a regular or scheduled basis. However, our Board of Directors will continue to consider the distribution of cash dividends based on the relevant facts and circumstances at the time of determination.
The Company has expanded its presence in both the domestic and foreign markets. Specifically referenced and noted was a description of certain major programs and projects that are using Servotronics' control products. Similarly, the substantial number of new products and new applications at the Company's CPG were also reviewed.
Re-elected as Company Directors at the meeting were Dr. Nicholas D. Trbovich, Donald W. Hedges, Dr. William H. Duerig and Nicholas D. Trbovich, Jr.
Certain paragraphs of this release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, such as those pertaining to the Company's expectation of new business and success in its entry into new product programs. Forward-looking statements involve numerous risks and uncertainties. The Company derives a material portion of its revenue from contracts with agencies of the U.S. Government or their prime contractors. The Company's business is performed under fixed price contracts and the following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: uncertainties in today's global economy and global competition, difficulty in predicting defense appropriations, the vitality and ability of the commercial aviation industry to purchase new aircraft, the willingness and ability of the Company's customers to fund long-term purchase programs, and market demand and acceptance both for the Company's products and its customers' products which incorporate Company-made components. The success of the Company also depends upon the trends that affect the national economy. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management's analysis only as of the date hereof. The Company assumes no obligation to update forward-looking statements.
SERVOTRONICS, INC. (SVT) IS LISTED ON NYSE MKT
SOURCE Servotronics, Inc.