New Century Cos. Announces $950,000 in New Orders Friday October 28, 8:30 am ET
Machine-Tool Firm Also Reports "Unusually High" Level of Quote Requests
LOS ANGELES, CA--(MARKET WIRE)--Oct 28, 2005 -- New Century Companies, Inc. (OTC BB:NCNC.OB - News), a leading manufacturer and re-manufacturer of machine tools, today announced new orders totaling $950,000 for vertical turning centers (VTCs). The Company also reported that requested quotes -- key indicators of future business -- have been running at historically high levels since the beginning of September.
The latest orders follow $2.74 million in orders reported by New Century during August and September 2005. Revenue from the new orders will be recognized during the fourth quarter of 2005 and the first quarter of 2006.
One order totals $475,000 and is for a re-manufactured VTC, a large vertical lathe. The buyer (unnamed here for competitive reasons) is a California-based maker of turbine-based systems used in natural gas processing, petrochemicals and power recovery applications. Another order, valued at $360,000, is for a VTC to be used by an Indiana-based manufacturer of drive-train components for construction, mining, rail, marine, defense and other applications. A third order, for $95,000, is for added work on previously announced contract.
New Century reported that the value of quotes given to potential customers has risen to $8 million since the beginning of September. "This is an unusually high level of quotes, and it indicates that demand for New Century products is very robust and is likely to stay that way," said the Company's CEO, David Duquette. "We have found that quote requests are a reliable key to the volume of new business in subsequent months. On the basis of the latest quote totals, along with the new orders we announce today, I am confident that the sharp growth we have seen in the normally slow spring and summer months will continue, and may accelerate, in the fourth quarter of 2005 and into 2006."
About New Century Companies
New Century Companies, Inc. (OTC BB:NCNC.OB - News) is one of the leading U.S.-based makers of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers. It also assembles sound-wall modules made from Quilite®, a lightweight, graffiti-resistant alternative to concrete. In its machine-tool business, the Company specializes in re-manufacturing, starting with existing major castings and fitting them with state-of-the-art, computer-controlled equipment. These products generally cost 40% to 60% less to make than new ones. New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG and Gardner Denver. New Century machines are used to manufacture jet-engine components, airplane landing gear parts, power generation equipment, oil and gas production components and construction materials, to name just a few applications. Quilite is used not only in freeway noise walls but in other sound-absorbing structures, including barriers at sports stadiums and electric transformers. New Century manufactures its machine tools and Quilite modules in Santa Fe Springs, Calif. Visit New Century's Web site at http://www.newcenturyinc.comPosts: 1006 | From: Camp Hill, PA, USA | Registered: Mar 2004
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This is the news that I found outstanding. This company is really going to go places within the next year.
New Century Cos. Passes Capital Milestone, Sees No Further Need for Outside Financing Required Friday October 21, 8:56 am ET
Machine-Tool Maker, Citing Sharp Rise in Demand, Also Expects to Eliminate Debt and Apply for Exchange Listing in 2006
LOS ANGELES, CA--(MARKET WIRE)--Oct 21, 2005 -- New Century Companies, Inc. (OTC BB:NCNC.OB - News), a leading manufacturer and re-manufacturer of machine tools, today announced substantial improvement in its capital situation and outlook. Specifically, it reported the following: -- Capital needs are now being met internally. Because of sharply rising cash flow from previously announced and pending orders, the Company needs no further outside financing and will fund its growth internally for the foreseeable future. -- Existing notes payable are now expected to be paid off by mid-2006. New Century remains free of long-term debt. -- The Company now plans to apply for exchange listing, on either the Amex or NASDAQ markets, during 2006. -- Requests for quotes by potential customers have reached the highest level in New Century's history. Demand is being driven by boom in mining and oil/gas production.
Cash Flow Meeting Capital Needs
Like other machine-tool companies, New Century was hard hit by the prolonged downturn in the U.S. manufacturing economy during the late 90s and the first years of this decade. The slump left it with a significant short-term debt burden and insufficient working capital to meet demand for new orders. Now, however, its cash flow has improved to the point where it can meet new orders without further outside borrowing or equity placements. It also is on track to pay off short-term notes payable by approximately the middle of 2006.
The Company cited a string of large new orders, all previously announced, as one factor enabling it to pass its capital milestone. In Third quarter orders for its re-manufactured vertical turning centers (VTCs) totaled $2.74 million. It also reported that requests for quotes, a key indicator of demand, are coming in at the highest rate in its history. Demand for VTCs, a form of large vertical lathe, is being spurred by booming activity in the energy sector.
Further evidence for the growth of California's manufacturing sector, of which New Century is a part, comes from a newly released survey from the A. Gary Anderson Center for Economic Research at Chapman University. As the Los Angeles Business Journal reported, the survey showed that the state's manufacturing continued to expand and outperform the rest of the nation during the third quarter. Chapman's manufacturing sector composite index for California registered 59 during that quarter, compared to the national index was 56.5. A reading over 50 indicates expansion.
Payoff of Notes Will Enhance EPS
The interest expense due to short-term notes has been a significant factor in New Century's recent operating results. For the first half of 2005, interest totaled $119,285, wiping out net operating income of $101,568. The company expects most of this expense to be eliminated starting in the second half of 2006. Based on the interest total and the average number of shares outstanding for the first half of 2005, eliminating interest charges would improve earnings by approximately $0.02 per fully diluted share. Moreover, the payoff of notes will signify that the Company no longer requires capital infusions to carry on its day-to-day operations, and that it has sufficient working capital from internal sources to fulfill new orders.
Exchange Listing Planned
In light of its improved capital position, New Century now expects to meet the NASDAQ and Amex requirements during 2006. It plans to apply for listing in one of those markets sometime in that year.
New Century CEO David Duquette commented: "The reaching of this key capital milestone, the ability to finance our growth internally, is significant for at least two reasons. One, it shows that the Company has completed its turnaround and is no longer weighed down by financial burdens left over from the long machine-tool slump. Second, it's a sign of how rapidly the Company's revenue is currently rising. That growth was especially remarkable during this year's second and third quarters, normally a slow time in this business. Given this trend, we are revising our sales growth and EPS expectations upward, as well as shortening the expected time before our short-term debt is paid off and New Century seeks exchange listing."
Duquette also pointed to signs that the current surge in demand is likely to continue. "New Century's current growth is being driven by demand for its VTCs, which are used in the production of equipment for energy exploration and production. With oil prices staying above $60, the boom in the energy business is likely to continue for the foreseeable future. New Century stands to profit on several fronts. Its VTCs are used not only to make parts for oil and gas production gear, but also for equipment used in mining coal, and oil shale and tar sands. And New Century has a competitive advantage in that it provides re-manufactured machine tools for prices significantly below new ones. It is also the only U.S.-based company re- manufacturing VTCs "
Posts: 1006 | From: Camp Hill, PA, USA | Registered: Mar 2004
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