Thermodynetics Announces Receipt of $1.6 Million Order For Titanium Coaxial Heat Exchangers
Thermodynetics, Inc.'s (OTCBB:TDYT message board, news, dd, quote) subsidiary Turbotec Products, inc. announced today that it had received a $1.6 million purchase order for thousands of titanium coaxial coils from a major manufacturer of swimming pool heat pumps. The purchase order covers a 12-15 month period and represents a sole source supply arrangement with this customer.
Sunil Raina, Turbotec's General Manager stated that in what is to be the second swimming pool installation year for this product line, "based on supply arrangements and orders on hand, Turbotec believes it has captured more than a third of the market.." He continued and said "the introduction of the titanium surface enhanced inner tube allows our customers to offer a very long warranty for the overall heat pump. The plastic shell offers protection from hostile weather while also avoiding rust or other discolorations, while also reducing weight and extending the coil's life."
Robert Lerman, Turbotec's Managing Director reported that "Turbotec's titanium heat exchanger with a plastic outer shell was first introduced in November 2004 and the latest order is a testament to the new product's acceptance by the industry because of its high quality and exceptional performance. The corrosive nature of pool and sea water previously was served by copper alloy tubes which could only offer a 5 year life."
Floyd Lewis, Turbotec's Director of Sales and Marketing said that he believes that "we are the only company that can offer titanium heat exchangers with plastic shells in production quantities and we are seeking new applications for our tubing and assemblies. We are interested in applying our technology to other industries and we welcome cooperative engineering challenges."
Thermodynetics Announces Fred Scheideman Joins Turbotec Products as Director of Engineering
The Turbotec Products, Inc. subsidiary of Thermodynetics (OTCBB:TDYT) continues to add to its capabilities with the addition of Fred Scheideman to its senior staff as Director of Engineering.
Fred's background and capabilities add measurably to Turbotec's unique position in the heat transfer industry. It is the intent of Turbotec, under Fred's leadership, to expand the company's offerings of products, testing services, design and analysis. These activities, when fully implemented, are expected to generate significant growth to Turbotec.
Fred's experience includes assignments at Batavia Metals (Director of Engineering) where he designed and developed components for automotive and all-terrain vehicles; at ITT Heat Transfer Technology (Manager of Engineering and Information Systems) where he designed and developed advanced heat exchangers and Standard Refrigeration where as Director of Engineering he developed new products and designs for air conditioning and refrigeration applications.
In announcing Fred's appointment to this new assignment, Sunil Raina, General Manager said "I am excited that Fred has joined us and we anticipate significant advances in our ability to design and develop new products. Turbotec is committed to remain an industry leader in the application of enhanced surface tubing in a wide range of heat transfer applications. With Fred joining our team, we are assured of new advances and product announcements over time."
Thermodynetics Announces the Appointment of Floyd J. Lewis as Director of Sales and Marketing for our Turbotec Products subsidiary
Thermodynetics, Inc. (OTCBB: TDYT)--We are pleased to announce the addition of Floyd J. Lewis to the senior management team at Turbotec Products. Mr. Lewis will serve as Turbotec's Director of Sales and Marketing, reporting to Mr. Sunil Raina, Vice President and General Manager.
Mr. Lewis' twenty-year-plus background has been predominantly in the HVAC industry, serving in various capacities at Hydrotherm, Inc. (a manufacturer of heating boilers), Mestek, Inc (HVAC), Koldwave (air conditioning) and Space Pak (high velocity air conditioning). Both Koldwave and Space Pak are Mestek companies. Mr. Lewis, with his successful career at these companies, is anticipated to be a valuable addition in relation to the expansion plans of Turbotec.
Mr. Raina stated, "I am excited to have Floyd join our management team. His background will help us expand our interests in serving existing customers as well as opening new commercial avenues for us. We are committed to developing new products and markets and establishing our sales representative network with Floyd's help."
Mr. Lewis will be based at Turbotec's facility in Windsor, CT and he can be reached at 860 683 2005, extension 134.
Thermodynetics Reports Increase in Second Quarter Revenues of 11% for the Latest Quarter and 9% for the Latest Six Months for Continuing Operations
Thermodynetics, Inc. (OTCBB: TDYT)--Net sales from continuing operations for the three and six months ended September 30, 2005 increased by $440,000, or 11% and $761,000 or 9% respectively over the prior year. The level of shipments for the 3 and 6 months are at an $18 million annual rate, and we expect that full year results will be in line with a 10% or so increase over fiscal 2005's $15.6 million.
Effects on shipments resulting from Hurricane Wilma are currently unknown, although the Florida power outages have temporarily closed some customer facilities and negatively impacted consumer demand in that market. Simultaneously, other customers have reported significant increases in requirements that have offset the Florida slowdown. As the October to December quarter is usually a slower shipping period for the Company, we anticipate that the overall affect will be a normal historical period for the Company. We are continuing to forecast a record level of shipments for the fiscal year ending March 31, 2007 based on continuing operations.
As of September 30, 2005 substantially all operating assets of the Vulcan subsidiary were liquidated, resulting in the recording of a loss on disposal of assets of $658,000 in the current period. The Company and its bank have restructured the Vulcan secured debt obligations. Vulcan's operations have been reflected as a discontinued operation for all periods presented.
The increase in sales in the heat transfer segment is due largely to the strong housing market augmented by commercial/industrial building HVAC needs and marine air conditioning applications. Favorable response to our new titanium swimming pool and spa heat pump components also generated significant sales during the current three and six month periods.
Cost of sales approximated 73% of net sales for all periods presented. The cost of metals, principally copper and stainless steel, has risen sharply during the past eighteen months to their highest levels in the past six years and it is uncertain when the market will experience cost relief. Nickel and carbon steel prices had also increased significantly until recently but have now exhibited signs of stabilization. Although the effects of cost changes in the metal markets are shared with customers, the impact of increases in metal costs is a net reduction of gross margin.
Personnel were added in customer service, engineering and other support functions in fiscal 2006. The Company plans on further additions to its marketing and engineering staff during the balance of the year and into fiscal 2007 as it prepares to enter new markets and product applications.
At September 30, 2005 consolidated working capital was a negative $666,000 and is attributable to advances made by the Company to its Vulcan subsidiary during the past year. Aggregate debt attributable to continuing operations at September 30, 2005 was $6,369,000 of which long-term debt was $2,879,000. The Company is exploring various avenues to reduce the financial obligations created by the Vulcan closing to improve the balance sheet of the Company.
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 lines in the markets served.
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.
Figures in $000's, Except for Per Share Data
Three Months Ended Six Months Ended
September 30, September 30,
2005 2004 2005 2004
---------- ---------- ---------- ----------
Net Sales $ 4,532 $ 4,092 $ 9,065 $ 8,304
Operating Income $ 413 $ 398 $ 723 $ 866
Income from Continuing
Operations Before
Income Taxes $ 300 $ 306 $ 493 $ 681
Provision for Income
Taxes $ 115 $ 60 $ 155 $ 120
Income From Continuing
Operations $ 185 $ 246 $ 338 $ 561
Income (Loss) from
Discontinued
Operations, Net of
Tax $ (973) $ (36) $ (1,069) $ (144)
Net Income (Loss) $ (788) $ 210 $ (731) $ 417
Weighted Shares Outstanding-
Basic and Diluted 3,968,782 3,942,716 3,961,282 3,941,127
Earnings (Loss) Per Share-
Basic and diluted
From Continuing
Operations $ .05 $ .06 $ .09 $ .14
From Discontinued
Operations $ (.25) $ (.01) $ (.27) $ (.04)
Total Earnings (Loss)
Per Share $ (.20) $ .05 $ (.18) $ .10
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 products in the United States, Canada and abroad to customers in the space conditioning, refrigeration, automotive, biomedical, plumbing, appliance, water heating and aerospace industries.
The Company's 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, 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.
Thermodynetics, Inc.
Robert A. Lerman, 860-683-2005
