Cemtrex Inc. (NASDAQ:CETX)

CETX ($4.01) announced preliminary fiscal 2016 results:

• Sales to be $93 to $95 million vs $56.8 million in the prior year

• EPS to be $0.52 vs $0.40 in the prior year

Quotes from management:

"With FY 2016 revenue up at least 64% compared to the prior year and EBIDTA up approximately 74% compared to the similar period a year ago, we have delivered 571% sales growth and 1600% net income growth since fiscal 2013," said Saagar Govil, Chairman & CEO. "During this period we have positioned the Company towards a diversified model which aims to capitalize on the continued global growth in highly advanced electronics manufacturing and the industrial equipment and services markets, thus providing increasing momentum for continued profitable growth in the coming years."

CETX ($1.92) reported Q1 2016 results:

• Sales of $13.3 million vs $13.8 million in the prior year

• EPS of $0.09 vs $0.06 in the prior year

Quotes from management:

“Cemtrex's Chairman and CEO, Saagar Govil, commented on the results, This quarter we experienced headwinds due to the decline in oil & gas markets, however this was offset by an increase in demand in some of our other industrial and power markets. Revenues were down 4% but we are pleased with the outcome of our operating results with an increase in earnings per share. The fundamentals in our business remain strong and we are focused on continued profitable growth."

FARMINGDALE, N.Y., Feb. 17, 2015 /PRNewswire/ -- Cemtrex Inc. (OTC: CTEI) today announced its first quarter consolidated results of operations for the three months ended December 31, 2014.

First Quarter Highlights:

Net sales for three months ended December 31, 2014 increased by 54%, to $13,842,789 from $8,964,380 for the three months ended December 31, 2013. The Company had net profit of $396,872, for the three month period ended December 31, 2014 as compared to a net income of $416,552 for the three month ended December 31, 2013, representing a decrease of 5%.

Saagar Govil, Chief Executive Officer of Cemtrex, commented, "We have started this new fiscal year on the right foot with considerable top line growth, particularly from our environmental business. We are continuing to see strong demand in emerging markets for our products and we are investing in our business to take advantage of this growing opportunity. Our backlog in our electronics manufacturing and services business continues to increase so we are bullish over the long term for our prospects there as well."

FARMINGDALE, N.Y., Jan. 20, 2015 /PRNewswire/ -- Cemtrex, Inc. (OTC: CTEI) today announced that the company has received new orders in excess of $5,000,000 in its electronics manufacturing business.

Deliveries of the new products are expected to begin early this year and continue over the next 12 months primarily to European and global original equipment manufacturers. Approximately half of the new orders were related to the medical devices industry and the remaining orders were from a variety of industries including wearables, industrials, and automotives.

Cemtrex's Chairman & CEO, Saagar Govil, commented, "With these recent orders we are still seeing continued demand in the European market despite overall concerns about the areas' economic problems. We are encouraged to obtain orders in the medical devices industry as that is a key component of where we are looking for long term growth. Additionally we have new orders from another customer for manufacturing cutting edge products in the wearables technology industry we helped develop on their behalf. One of our goals is to be a manufacturing partner of some of the most innovative technologies in the world and these new orders demonstrate our progress on that front."

The medical devices industry, according to Visiongain, is said to reach approximately $400 billion by 2017 up from $320 billion in 2012, due largely to the fact that the global population over 65 is expected to rise over 1 billion by 2020. Based on one recent report from Cowen Research, the wearable electronic industry is expected to reach $170 billion by 2020 from less than $10 billion today, which would range from products such as smart garments to Google's Glass and Apple's iWatch.

Fourth Quarter 2014 Results

• Q4 2014 revenues of $13.7 million vs $2.5 million in the prior year
• Q4 2014 EPS of $0.02 vs $0.00 in the prior year

Commenting on the yearly results, Mr. Saagar Govil, Chairman and Chief Executive Officer of the Company remarked, "This has been a tremendous year for us as we have experienced unprecedented growth and also completed a significant acquisition. We are pleased with the results of fiscal 2014 and look forward to continue taking the company to greater heights in 2015.

"We have decided not to proceed further with the pending acquisition of the waste water technology company announced in June since it ultimately did not pass our diligence parameters. However we are exploring several alternative acquisition opportunities that we shall provide further details on as they become more viable," continued Mr. Govil.

FARMINGDALE, N.Y., Oct. 28, 2014 /PRNewswire/ -- Cemtrex, Inc. (www.cemtrex.com) today announced that the company has received new orders in excess of $3 million across its two business divisions: Environmental Technologies and Electronics Manufacturing. Deliveries of the ordered products are expected to begin in the fiscal first quarter of 2015 and finishing by the fourth quarter of fiscal 2015.

Shareholder Letter 9/18/2014

To the Shareholders of Cemtrex Inc.,

It has been quite a busy year to say the least. This letter is a bit unorthodox with respect to its timing however we believed that due to recent developments in our business over the last year it was important for shareholders to attain a narrative from management regarding Cemtrex's operations and future plans. From March to July of this year alone we had a 25% increase in the number of shareholders of the company. Naturally we felt that waiting for a letter in January after our annual report was issued would cause an unnecessary amount of speculation on the part of our shareholders as to what your management's plans are. In the future on an annual basis, including at the end of this fiscal year, we will be sure to accompany our annual report with a letter from management.

We have now completed three quarters during our latest fiscal year. Our book value (unaudited) is presently$2,286,000 up from $94,000 in 2012 when current management took control of the operation resulting in a CAGR of 190%. Our earnings per share over the last 9 months have been $.05 while our average earnings per share over the last three years were about $.02.

As many of you are aware Cemtrex recently acquired all the assets of the ROB Group of companies in October 2013 (this fiscal year, our fiscal year ends September 30^th). In my 2012 letter I mentioned that we were actively pursuing acquisition opportunities to grow the company in new areas. We have been in the environmental technologies and monitoring business for the past several years. However our ability to create sustainable growth was often hindered by environmental regulations that were postponed which were of no control of our own. When industry cries out that regulations will increase costs and reduce jobs many times these regulations are kicked down the road. This often resulted in our goals and objectives not being met in the past. As a result our plan was to diversify our capital allocation into new areas which could complement our on-going activities. We believe we can operate from a position of strength when we have two independent sources of earnings potential than be solely exposed to the conditions of one industry.

Our primary criteria were to find businesses we understood and ones that we felt were available at an attractive price. We spent close to two years looking for the right opportunity and subsequently settled on the ROB Group, located near Stuttgart, Germany. The ROB Group was acquired at approximately $5.6M, half of its book value at the time and doing approximately $30M in sales in the calendar year of 2013. We were able to do this deal on extremely favorable terms with low interest rates and zero dilution. This type of financing for a company of our size is highly unusual and thus represented a key factor in us going ahead with the deal. In the future we may not be so fortunate with the terms to get a deal done, but your management is careful to structure any terms that could potentially be toxic to us in the future. We would rather pass on a potentially great company than take such a risk.

You may be wondering how we were able to acquire such a big company for a low price. This company was in an insolvency situation due to a customer defaulting on a large amount of receivables. Moving forward we now ensure that all orders and receivables are insured by a major insurer to protect ourselves from this occurring again. The insolvency situation is now in the company's history and we have been operating at a profit so far this year. This is also unusual for companies in an insolvency situation and you can thank the strong management of Frank Bittighofer and his team for this success. The team at our EMS operation is a group of honest and hardworking individuals and it has been a pleasure to work with them to put the company back on a path to success. We have a considerable amount of confidence in their ability to continue growing this operation back to its previous heights of $60M in revenue in 2010 and beyond.

Cemtrex now has two distinct operations: Electronics Manufacturing Services (EMS) & Environmental Products & Systems (EPS). Our total sales during the first nine months of this fiscal year was$33,966,686compared to$11,138,665over the same period a year ago representing an increase of 205%. This was primarily attributed to the acquisition however our environmental products & systems division experienced sales growth as well.  Full letter here. 

Third Quarter 2014 Results

Net sales for three months ended June 30, 2014 increased by 152%, to $13,453,734 from $5,332,157 in the three months ended June 30, 2013. The Company had net income of $716,100 for the three-month period ended June 30, 2014, as compared to a net income of $7,668 for the three months ended June 30, 2013, representing an increase of 9240%. Net sales for nine months ended June 30, 2014 increased by 205%, to $33,966,686 from $11,138,665 in the nine months ended June 30, 2013. The Company had net income of $1,902,267 for the nine-month period ended June 30, 2014, as compared to a net income of $231,010 for the nine months ended June 30, 2013, representing an increase of 723%.

Saagar Govil, Chief Executive Officer of Cemtrex, commented, "This record-setting third quarter for us was due to both organic growth amongst our existing businesses and our recent acquisition. Our team is executing at a high level and we are in a great position for continued high growth. I am extremely confident in our business plan and our strategy to deliver unparalleled results for our shareholders."

FARMINGDALE, N.Y., June 23, 2014 /PRNewswire/ -- Cemtrex, Inc. (OTC: CTEI) today announced that the company has entered into a Letter of Intent to purchase all the assets of a foreign, wastewater treatment and bio-energy plant technology company. The acquiree had annual sales of approximately $14 million in 2013. Due to a confidentiality agreement in place the company's name and further details were not disclosed.

Cemtrex's Chairman and CEO, Saagar Govil, commented, "We are thrilled to have reached an agreement regarding this upcoming strategic acquisition as we see tremendous opportunity globally for these products. This acquisition will allow Cemtrex to expand its environmental capabilities from presently air pollution control solutions and environmental monitoring to include technology for wastewater treatment and the generation of bioenergy from organic waste."

According to Global Water Markets, the market for wastewater equipment is set to rise by 27% to $225 billion over the next five years, with sludge management and energy recovery among the growing trends. Additionally based on another industry study regarding biogas plants by Ecoprog, the worldwide installed capacity will increase between 2012 and 2016 from 4,700 MW to about 7,400 MW, or about 60 percent in five years.

The company expects to complete the transaction by August 31^st 2014 and use its existing capital to complete the deal. The company will release additional information in the coming weeks as the acquisition is finalized.

FARMINGDALE, N.Y., July 17, 2014 /PRNewswire/ -- Cemtrex, Inc. (OTC: CTEI) today announced that the company has recently received new orders in excess of $7,000,000 across its business divisions: Environmental monitoring and systems & Electronic manufacturing services.

The Company received approximately $3 Million in environmental systems sales and deliveries are expected to ship in the next six to nine months. The Company received approximately $4 Million in new electronics manufacturing services orders and deliveries of these orders will take place primarily during fiscal year 2015. The environmental related orders were from new customers while the latest electronics manufacturing related orders were primarily from existing customers in the medical device industry.

Cemtrex's CEO, Saagar Govil, said, "Cemtrex's various sales and marketing teams are executing at a high level and continue to find opportunities in the market. We are excited to see such strong demand for our products and services as we look to build on this recent momentum."

FARMINGDALE, N.Y., May 14, 2014 /PRNewswire/ -- Cemtrex, Inc. (OTC: CTEI) today announced that the company has received new orders in excess of $4,000,000 across its three business divisions: Monitoring Instruments & Products, Rob Cemtrex, and Environmental systems. Deliveries of the ordered products are expected to begin in the fiscal third quarter of 2014 and finishing by early-2015.

Cemtrex's CEO, Saagar Govil, said, "We have received new orders from both existing and new customers demonstrating our on-going commitment to provide long term value for our customers as well as finding new opportunities in the market. The team at Cemtrex is continuing to perform at a high level."