Press Release
Thermodynetics’ Reports Net Sales for
Continuing Operations Net Sales
Increased 38% in the Third Quarter and
17% for the Latest Nine Months
Wednesday, February 15th, 2006
THERMODYNETICS, INC., WINDSOR, CT (TDYT:OTCBB)
Net sales from continuing operations
for the three months ended December 31,
2005 increased by $1,244,000, or 38%
over the prior year. For the nine month
period, net sales were $13.6 million, or
17% above the period ended December 31,
2004. Expectations for the March 2006
fiscal year are for sales to exceed $18
million.
The increase in year to date sales is
due largely to the continued strong
performance in the domestic housing
market and air conditioning for marine
applications. Our marketing of heat
exchangers containing high efficiency
special purpose enhanced surface
titanium tubing for the swimming pool
and spa heat pump industry has received
an exceptionally strong response.
Cost of sales increased for both the
three and nine month periods of the
current year, compared to the same
periods in the prior year. The cost of
metals, principally copper, copper
alloys and titanium has risen sharply to
their highest levels in the past six
years; although the effects of metal
cost changes are shared to a large
degree with customers, the impact is a
net reduction of gross margin. Further,
the pass through of a portion of such
material price increases can only be
periodically adjusted. Effective with
the new calendar year, price increases
have been instituted and improvement in
gross margin is expected.
The increase in selling, general and
administrative expenses over the prior
year was 10% and 11% for the three and
nine month periods, respectively.
Personnel were added in customer
service, engineering and other support
functions to both support the additional
sales base and assist in the development
of future products. The Company plans on
further additions to its marketing and
engineering staff during the balance of
the fiscal year and into fiscal 2007 to
support new products and markets.
ABOUT THERMODYNETICS
Thermodynetics, Inc. is a
manufacturer of high performance, high
quality heat exchangers, fabricated
metal components and flexible connector
products for heat transfer,
transportation, and plumbing
applications. The Company markets its
tubing products to customers in the
space conditioning, refrigeration,
automotive, biomedical, plumbing,
appliance, water heating and aerospace
industries.
The Company's tubing products are
presently used in heat pumps as
condensers and evaporators in heating,
refrigeration, food processing and
air-conditioning systems; in the
biomedical field (as blood or
intravenous fluid heat exchangers); in
heat recovery units used to heat water
with waste heat from air conditioning
and refrigeration systems; in ice
production systems; in laser coolers,
beverage dispensers, food processing
systems, chillers, heat pump systems and
boilers, and modules for use as
components in large condensing or
desuperheater systems; and are generally
usable in most applications where heat
transfer is required. The tubing is also
used as a flexible connector in plumbing
applications.
Figures in $000’s, Except for Per
Share Data
Three Months Ended
December 31,
2005 2004
---- ----
Net Sales $ 4,531 $ 3,287
Operating Income $ 297 $ 273
Income from Continuing Operations
Before Income Taxes $ 177 $ 172
Provision for Income Taxes $ 0 $ 47
Income From Continuing Operations $ 177 $ 125
Income (Loss) from Discontinued
Operations, Net of Tax $ (142) $ 6
Net Income (Loss) $ 35 $ 131
Weighted Shares Outstanding-
Basic and Diluted 3,983,782 3,946,219
Earnings (Loss) Per Share-
Basic and diluted
From Continuing Operations $ .04 $ .03
From Discontinued Operations $ (.03) $ .00
Total Earnings (Loss) Per Share $ .01 $ .03
Nine Months Ended
December 31,
2005 2004
---- ----
Net Sales $13,596 $11,591
Operating Income $ 1,020 $ 1,139
Income from Continuing Operations
Before Income Taxes $ 670 $ 853
Provision for Income Taxes $ 155 $ 168
Income From Continuing Operations $ 515 $ 685
Income (Loss) from Discontinued
Operations, Net of Tax $(1,211) $ (138)
Net Income (Loss) $ (696) $ 547
Weighted Shares Outstanding-
Basic and Diluted 3 3,978,873 3,942,824
Earnings (Loss) Per Share-
Basic and diluted
From Continuing Operations $ .13 $ .17
From Discontinued Operations $ (.30) $ (.03)
Total Earnings (Loss) Per Share $ (.17) $ .14
FORWARD LOOKING STATEMENTS
This report contains certain
forward-looking statements regarding the
Company, its business prospects and
results of operations that are subject
to certain risks and uncertainties posed
by many factors and events that could
cause the Company’s actual business,
prospects and results of operations to
differ materially from those that may be
anticipated by such forward-looking
statements. Factors that may affect such
forward-looking statements include,
without limitation: the Company’s
ability to successfully and timely
develop and finance new projects, the
impact of competition on the Company’s
revenues, changes in unit prices, and
supply and demand for the Company’s
tubing product line especially in
applications serving the commercial,
industrial and residential construction
industries.
When used, words such as "believes,"
"anticipates," "expects," "continue",
"may", "plan", "predict", "should",
"will", "intends" and similar
expressions are intended to identify
forward-looking statements, but are not
the exclusive means of identifying
forward-looking statements. Readers are
cautioned not to place undue reliance on
these forward-looking statements, which
speak only as of the date of this
report. The Company undertakes no
obligation to revise any forward-looking
statements in order to reflect events or
circumstances that may subsequently
arise. Readers are urged to carefully
review and consider the various
disclosures made by the Company in this
report, news releases, and other reports
filed with the Securities and Exchange
Commission that attempt to advise
interested parties of the risks and
factors that may affect the Company’s
business.
651 Day Hill Road, Windsor,
CT