M Line Holdings, Inc. Issues Results for Nine Mont
Post# of 140
Posted On: 02/19/2014 7:24:03 AM
M Line Holdings, Inc. Issues Results for Nine Months Ended March 31, 2012
M Line Holdings, Inc. (OTCBB: MLHC)
Results
M Line Holdings, Inc. (OTCBB: MLHC) ("M Line Holdings" or "the Company"), is pleased to announce its results for the 3 and 9 months ended March 31, 2012.
Information
The Company had an operating profit of $351,405 before a one-time research and development charge of $803,618 resulting in a pre-tax loss of $452,213 for the nine month period. EBITDA is negative $105,124, however, when the one-time charge is added back EBITDA would have been $698,494.
The research and development expenditure during the third quarter and also in the fourth quarter of fiscal 2012 represents one time costs incurred for training in the use of Catia and Quantum software and training in the methodology used to manufacture materials such as titanium, inconels (a family of Nickel-chromium based super alloys) and hardened steels. Management had made the decision to remake its wholly owned subsidiary Eran Engineering, Inc. ("Eran") into an Aerospace company and as a part of that transition specialized training was required so that the staff would have the knowledge to make critical aircraft structure parts. This is very different work than the interiors work that Eran has always specialized in. Eran incurred considerable start-up costs relating to training, downtime in manufacturing and other related costs including materials used for testing and training.
In addition management entered into agreements with two engineering service companies, EXMD in Canada and Fairtech in India. These companies have helped Eran upgrade its capabilities.
Management's commitment to excellence and its new direction has resulted in new business from significant customers which we firmly believe will result in considerable and profitable growth for the company.
George Colin, CEO of M Line Holdings, Inc., stated, "As disclosed recently in our news letter to shareholders, Management felt that this was the appropriate time to make our switch to a high tech aerospace company. The training has been completed and with new equipment expected in June we are primed for growth and profitability."
BUSINESS:
M Line Holdings, Inc. owns 100% of two operating subsidiaries, Eran Engineering, Inc., and EM Tool Company, Inc. dba Elite Machine Tool described below.
Eran Engineering, Inc. ("Eran") is a customer focused aerospace company offering low cost, build-to-print and assembly services for production and spare parts, with design, development and ongoing engineering support services for customers. Over the last few years, Eran specialized in the manufacture of aircraft interiors parts and medical equipment and now with the additional focus on the manufacture of high tech critical aircraft structure parts and new customers including Goodrich Aerostructures, the introduction of new engineering software and a new enterprise software system, Eran is positioned for solid growth. Eran's future plans include an expansion of our manufacturing capabilities. Eran is certified to AS 9100 Rev C.
EM Tool Company, Inc. dba Elite Machine Tool ("Elite") specializes in the sale of pre-owned machine tools from Mori Seiki, Matsuura, Kitamura and other manufacturers. Elite buys and refurbishes pre-owned equipment for resale. In addition Elite services and rebuilds machine tools. The continuing shortage of new CNC equipment and the growth of the commercial airline business has resulted in an improvement in the revenues and profitability of Elite. Elite's future plans include an expansion with new facilities in the Midwest and East coast.
FOLLOW US ON FACEBOOK & TWITTER
Forward Looking Statements
This news release contains certain "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of which are beyond the Company's control. The forward-looking statements are also identified through the use of words "believe," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict" "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from these forward-looking statements as a result of a number of risk factors detailed in the Company's periodic reports filed with the SEC. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved.
M LINE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED MARCH 31, 2012 AND 2011
9 month period(s) ended March 31,
2012 2011
---------------- ----------------
Net sales $ 7,695,874 $ 6,324,765
Cost of sales 5,383,835 4,232,254
---------------- ----------------
Gross Profit 2,312,039 2,092,511
---------------- ----------------
Operating expenses:
Research and Development 803,618 -
Selling, general and administrative 1,890,600 2,363,506
Amortization of intangible assets 31,952 54,564
---------------- ----------------
Total operating expense 2,762,170 2,418,070
---------------- ----------------
Operating Profit (Loss) (414,130) (325,559)
Other income (expense):
Interest expense (134,676) (65,409)
Interest income 45,083 15,620
Rental income - 74,700
Change in derivative liability - 98,289
Gain on debt settlement 85,184 (45,556)
Gain (Loss) on sale of assets (33,674) -
---------------- ----------------
Total other income (expenses) (38,083) 77,644
---------------- ----------------
Income (loss) before income tax (452,213) (247,915)
Income tax provision (2,400) (800)
---------------- ----------------
Net income (loss) $ (454,613) $ (248,715)
================ ================
Net income (loss) per share:
---------------- ----------------
Basic and dilutive income (loss) per
share: $ (0.01) $ (0.01)
================ ================
Weighted average number of common shares
under in per share calculations (basic
and diluted) 44,697,618 30,877,608
================ ================
Contact:
Tony Anish
Ph.: 714-630-6253
Email Contact
M Line Holdings, Inc. (OTCBB: MLHC)
Results
M Line Holdings, Inc. (OTCBB: MLHC) ("M Line Holdings" or "the Company"), is pleased to announce its results for the 3 and 9 months ended March 31, 2012.
Information
The Company had an operating profit of $351,405 before a one-time research and development charge of $803,618 resulting in a pre-tax loss of $452,213 for the nine month period. EBITDA is negative $105,124, however, when the one-time charge is added back EBITDA would have been $698,494.
The research and development expenditure during the third quarter and also in the fourth quarter of fiscal 2012 represents one time costs incurred for training in the use of Catia and Quantum software and training in the methodology used to manufacture materials such as titanium, inconels (a family of Nickel-chromium based super alloys) and hardened steels. Management had made the decision to remake its wholly owned subsidiary Eran Engineering, Inc. ("Eran") into an Aerospace company and as a part of that transition specialized training was required so that the staff would have the knowledge to make critical aircraft structure parts. This is very different work than the interiors work that Eran has always specialized in. Eran incurred considerable start-up costs relating to training, downtime in manufacturing and other related costs including materials used for testing and training.
In addition management entered into agreements with two engineering service companies, EXMD in Canada and Fairtech in India. These companies have helped Eran upgrade its capabilities.
Management's commitment to excellence and its new direction has resulted in new business from significant customers which we firmly believe will result in considerable and profitable growth for the company.
George Colin, CEO of M Line Holdings, Inc., stated, "As disclosed recently in our news letter to shareholders, Management felt that this was the appropriate time to make our switch to a high tech aerospace company. The training has been completed and with new equipment expected in June we are primed for growth and profitability."
BUSINESS:
M Line Holdings, Inc. owns 100% of two operating subsidiaries, Eran Engineering, Inc., and EM Tool Company, Inc. dba Elite Machine Tool described below.
Eran Engineering, Inc. ("Eran") is a customer focused aerospace company offering low cost, build-to-print and assembly services for production and spare parts, with design, development and ongoing engineering support services for customers. Over the last few years, Eran specialized in the manufacture of aircraft interiors parts and medical equipment and now with the additional focus on the manufacture of high tech critical aircraft structure parts and new customers including Goodrich Aerostructures, the introduction of new engineering software and a new enterprise software system, Eran is positioned for solid growth. Eran's future plans include an expansion of our manufacturing capabilities. Eran is certified to AS 9100 Rev C.
EM Tool Company, Inc. dba Elite Machine Tool ("Elite") specializes in the sale of pre-owned machine tools from Mori Seiki, Matsuura, Kitamura and other manufacturers. Elite buys and refurbishes pre-owned equipment for resale. In addition Elite services and rebuilds machine tools. The continuing shortage of new CNC equipment and the growth of the commercial airline business has resulted in an improvement in the revenues and profitability of Elite. Elite's future plans include an expansion with new facilities in the Midwest and East coast.
FOLLOW US ON FACEBOOK & TWITTER
Forward Looking Statements
This news release contains certain "forward-looking statements." Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, and many of which are beyond the Company's control. The forward-looking statements are also identified through the use of words "believe," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict" "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from these forward-looking statements as a result of a number of risk factors detailed in the Company's periodic reports filed with the SEC. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved.
M LINE HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED MARCH 31, 2012 AND 2011
9 month period(s) ended March 31,
2012 2011
---------------- ----------------
Net sales $ 7,695,874 $ 6,324,765
Cost of sales 5,383,835 4,232,254
---------------- ----------------
Gross Profit 2,312,039 2,092,511
---------------- ----------------
Operating expenses:
Research and Development 803,618 -
Selling, general and administrative 1,890,600 2,363,506
Amortization of intangible assets 31,952 54,564
---------------- ----------------
Total operating expense 2,762,170 2,418,070
---------------- ----------------
Operating Profit (Loss) (414,130) (325,559)
Other income (expense):
Interest expense (134,676) (65,409)
Interest income 45,083 15,620
Rental income - 74,700
Change in derivative liability - 98,289
Gain on debt settlement 85,184 (45,556)
Gain (Loss) on sale of assets (33,674) -
---------------- ----------------
Total other income (expenses) (38,083) 77,644
---------------- ----------------
Income (loss) before income tax (452,213) (247,915)
Income tax provision (2,400) (800)
---------------- ----------------
Net income (loss) $ (454,613) $ (248,715)
================ ================
Net income (loss) per share:
---------------- ----------------
Basic and dilutive income (loss) per
share: $ (0.01) $ (0.01)
================ ================
Weighted average number of common shares
under in per share calculations (basic
and diluted) 44,697,618 30,877,608
================ ================
Contact:
Tony Anish
Ph.: 714-630-6253
Email Contact
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