February 19, 2013
For Further Information contact: Dean Danner, President Boni Danner, VP Eng. & Treasurer (262) 542-5600 * http://www.etcia.com ETC ANNOUNCES FOURTH QUARTER AND YEAR END 2012 RESULTS WAUKESHA, WISCONSIN, February 19, 2013 OTC – Pink Sheets ELECTRONIC TELE-COMMUNICATIONS, INC. Symbol – ETCIA
Electronic Tele-Communications, Inc. (ETC) today reported its fourth quarter 2012 results. Sales for the quarter were $615,667 compared to $486,844 for the 2011 fourth quarter. The net earnings for the quarter were $88,595 or $0.04 per Class A common share, compared to net earnings of $66,223 or $0.03 per Class A common share for the fourth quarter of 2011.
Sales for the 2012 year were $1,994,943 compared to 2011 sales of $1,657,407. The net earnings for 2012 were $189,201 or $0.08 per Class A common share, compared to earnings of $90,002 or $0.04 per Class A common share for 2011.
Commenting on the results, ETC President Dean Danner said, “We are proud to announce that 2012 was ETC’s best year of operating results in many years. Sales were the highest they have been since 2007, and net earnings the highest in over 10 years. Our market segments are improving, and we are generating positive cash flow. These positive results will provide ETC more flexibility in both marketing and engineering. We still have debt to repay and the market remains somewhat erratic and therefore unpredictable, but 2012 was a good year and early indications are that 2013 will be good as well.”
Electronic Tele-Communications supplies voice announcers and Voice Application Platforms to domestic and foreign telephone utilities under the Audichron® and Digicept® brand names. ETC also supports a network of Time Weather and Temperature systems installed throughout the United States. ETC's equipment provides a wide range of audio information and call handling services via telephone networks, computer networks, and the Internet.
From time to time, information provided by ETC, statements made by its employees, and information included in its press releases and other public statements which are not historical facts are forward-looking in nature and relate to trends and events that may affect our future financial position and operating results. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties including, but not limited to: business conditions in the telecommunications industry, the adverse effects of the recent worldwide recession and the timing and strength of a subsequent recovery, the Company’s ability to achieve adequate sales levels or sufficient cash flow or cash reserves to support operations, technology changes, backlog, status of the economy, government regulations, sources of supply, expense structure, product mix, major customers, competition, litigation, and other risk factors. Investors are encouraged to consider these risks and uncertainties, which may cause the Company’s actual future results to be materially different than those expected in its forward-looking statements. ETC does not undertake to update its forward-looking statements.
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Electronic Tele-Communications, Inc. Statements of Operations and Comprehensive Income (Loss): (unreviewed) (unreviewed) Three Months Ended Twelve Months Ended December 31 December 31 2012 2011 2012 2011 Net sales 615,667 486,844 1,994,943 1,657,407 Cost of products sold 277,308 234,254 960,867 840,789 Gross profit 338,359 252,590 1,034,076 816,618 Operating expenses: General and administrative 92,203 75,831 320,282 267,703 Marketing and selling 69,796 53,559 235,808 210,111 Research and development 81,937 50,718 260,567 220,330 243,936 180,108 816,657 698,144 Earnings from operations 94,423 72,482 217,419 118,474 Other income (expense) (5,828) (6,259) (28,218) (28,472) Earnings before income taxes 88,595 66,223 189,201 90,002 Income taxes 0 0 0 0 Net earnings 88,595 66,223 189,201 90,002 Other comprehensive income (loss), net of tax (3,114) 6,495 3,606 (27,784) Total comprehensive income (loss 85,481 72,718 192,807 62,218 Basic and diluted earnings per share: Class A common 0.04 0.03 0.08 0.04 Class B common 0.04 0.03 0.08 0.04 Weighted average shares outstanding for basic and diluted 2,509,147 2,509,147 2,509,147 2,509,147 Selected Balance Sheet Data: (unreviewed)(unreviewed) Dec 31 Dec 31 2012 2011 Current assets 695,876 529,731 Total assets 704,447 534,751 Current liabilities 1,061,235 1,040,062 Total liabilities 1,149,802 1,172,913 Stockholders' equity (deficit) (445,355) (638,162) # # #
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