Barnes Group Inc. (NYSE: B), an international industrial and aerospace
manufacturer and service provider, today reported financial results for
the fourth quarter and full year 2014.
Fourth quarter net sales of $310 million were up 7% from $291 million in
the fourth quarter of 2013, driven by organic sales growth of 6% and one
additional month of acquisition revenues from the Männer business versus
the prior year period. Unfavorable foreign exchange reduced sales by 3%.
Income from continuing operations for the fourth quarter was $33.3
million, or $0.60 per diluted share, compared to $26.3 million, or $0.47
per diluted share in the prior year period. On an adjusted basis, income
from continuing operations was $0.62 per diluted share, up 9% from $0.57
a year ago. Fourth quarter 2014 adjusted diluted earnings from
continuing operations exclude the impact of Männer short-term purchase
accounting adjustments of $0.8 million pre-tax and costs related to the
closure of production operations at Associated Spring's Saline, Michigan
facility which were $0.5 million pre-tax. Together, these two items
contributed $0.02 to adjusted diluted earnings from continuing
operations.
For the full year, Barnes Group generated net sales of $1,262 million,
up 16% from last year; organic sales growth was 6% while acquisitions
contributed 10%. Income from continuing operations was $120.5 million,
or $2.16 per diluted share, compared to $72.3 million, or $1.31 per
diluted share in 2013. On an adjusted basis, income from continuing
operations was $2.34 per diluted share, up 28% from $1.83 a year ago.
2014 adjusted diluted earnings from continuing operations exclude the
impact of Männer short-term purchase accounting adjustments of $8.5
million pre-tax, or $0.11 per diluted share, and costs related to the
closure of production operations at the Saline, Michigan facility which
were $6.0 million pre-tax, or $0.07 per diluted share. For 2013, income
from continuing operations included $7.3 million pre-tax, or $0.10 per
diluted share, of short-term purchase accounting adjustments and
transaction costs related to the acquisition of Männer, $10.5 million
pre-tax, or $0.12 per diluted share, of non-recurring CEO transition
costs, and a tax charge of $16.4 million, or $0.30 per diluted share,
associated with the April 2013 U.S. Tax Court's unfavorable decision.
A table reconciling 2013 and 2014 non-GAAP adjusted results presented in
this release to our GAAP results is included at the end of this press
release.
"Barnes Group's continued execution of its profitable growth strategy
has delivered another year of excellent financial performance with an
impressive 250 basis point gain in adjusted operating margin and a 28%
increase in adjusted earnings from continued operations," said Patrick
J. Dempsey, President and Chief Executive Officer of Barnes Group Inc.
"Our relentless focus on driving differentiated industrial technologies
and innovative solutions to the customers and end markets we serve is
fueling our growth engine and we look forward to carrying that momentum
into 2015," added Dempsey.
Industrial
Fourth quarter 2014 sales were $198.2 million, up 8% from $183.7
million in the same period last year. The Männer business, acquired in
October 2013, provided $10.4 million of "acquisition" sales while
Industrial's organic sales grew 7% over the prior year period.
Unfavorable foreign exchange negatively impacted sales by $9.0
million, or 5%.
Operating profit of $27.0 million in the fourth quarter was up 74%
from $15.5 million in the prior year period. Operating profit
benefited from the contribution of Männer and higher organic sales,
and was partially offset by $0.8 million of Männer short-term purchase
accounting adjustments and $0.5 million of restructuring charges
related to the closure of production operations at the Saline,
Michigan facility. Last year's fourth quarter included $7.3 million of
short-term purchase accounting adjustments and transaction costs
associated with the Männer acquisition. Excluding the acquisition
related expenses and Saline closure costs, adjusted operating profit
was $28.3 million, up 24% from a year ago. Adjusted operating margin
was 14.3%, up 190 bps from last year's adjusted operating margin of
12.4%.
Full year 2014 sales were $822.1 million, up 20% from $687.6 million
last year. The Männer business provided $113.7 million of
"acquisition" sales increase while unfavorable foreign exchange
negatively impacted sales by $7.3 million, or 1%. Industrial's organic
sales grew 4% over the prior year.
Full year operating profit of $108.4 million was up 51% from $71.9
million in the prior year period. Operating profit benefited from the
contribution of Männer and higher organic sales, and was partially
offset by $8.5 million of Männer short-term purchase accounting
adjustments and $6.0 million of restructuring charges related to the
closure of production operations at the Saline, Michigan facility. For
2013, operating profit included $7.3 million of short-term purchase
accounting adjustments and transaction costs related to the
acquisition of Männer and $6.6 million of non-recurring CEO transition
costs. Excluding these items, adjusted operating profit was $122.9
million for 2014 versus $85.8 million a year ago, an increase of 43%.
Adjusted operating margin was 14.9%, up 240 bps from last year's
adjusted operating margin of 12.5%.
Aerospace
Fourth quarter 2014 sales were $112.0 million, up 4% from $107.4
million in the same period last year. Increased sales from the
original equipment manufacturing ("OEM") business and aftermarket
maintenance, repair and overhaul ("MRO") businesses were partially
offset by lower aerospace spare parts sales.
Operating profit was $21.6 million for the fourth quarter of 2014 as
compared to $18.6 million for the prior year period. Operating profit
in the quarter benefited from the contributions of increased sales in
the OEM business, higher sales and profits in the MRO business, and
were partially offset by increased employee related costs and the
profit impact of lower spare parts sales. Operating margin was 19.3%
in the quarter, up 200 basis points from 17.3% a year ago.
Full year 2014 sales were $440.0 million, up 9% from $404.0 million in
the same period last year. Increased sales from the OEM and MRO
businesses were partially offset by lower aerospace spare parts sales.
Operating profit was $71.6 million for the full year 2014 as compared
to $51.3 million for the prior year. Operating profit benefited from
the contributions of increased sales in the OEM business, higher
profits in the MRO business, and the absence of an $8.6 million
inventory valuation adjustment taken in the third quarter of 2013.
These benefits were partially offset by increased employee related
costs and the profit impact of lower spare parts sales. For 2013,
operating profit included $3.9 million of non-recurring CEO transition
costs. Excluding this item, adjusted operating profit for 2013 was
$55.2 million. 2014 operating margin increased to 16.3%.
Aerospace backlog was $523 million at the end of the fourth quarter,
down 6% from last year-end and up 2% from the third quarter of 2014.
Additional Information
Interest expense decreased $1.7 million to $11.4 million in 2014
primarily as a result of a lower average interest rate, offset in part
by higher average borrowings for the year.
The Company's effective tax rate from continuing operations for 2014
was 27.6% compared with 32.8% in 2013. Included in the full year 2013
income tax is a charge of approximately $16 million associated with
the April 2013 U.S. Tax Court's unfavorable decision. Excluding this
charge, the full year 2013 adjusted effective tax rate was 17.5%. The
effective tax rate increase in 2014 over the adjusted full year 2013
rate is due to a mix of earnings attributable to higher-taxing
jurisdictions, the expiration of certain tax holidays, and the
increase in the repatriation of a portion of current foreign earnings
to the U.S.
2015 Outlook
Barnes Group expects 2015 organic revenue growth of 6% to 9% with total
revenue growth of 3% to 6% after consideration of unfavorable foreign
exchange. Operating margins are forecasted to be in the range of 16% to
17%. GAAP earnings from continuing operations are expected to be in the
range of $2.40 to $2.55 per diluted share. Excluding an approximate
$0.02 of remaining Männer short-term purchase accounting adjustments
anticipated to be recorded in 2015, adjusted diluted earnings per share
from continuing operations is expected to be in the range of $2.42 to
$2.57, up 3% to 10% from 2014's adjusted diluted earnings per share of
$2.34. Further, the Company anticipates capital expenditures of
approximately $55 to $60 million and cash conversion to approximate 100%
of net income.
"Enhanced investments in our businesses, and the smooth integration of
recent acquisitions that brought innovative technologies to Barnes
Group, have advanced our ability to deliver differentiated industrial
technologies to market," said Christopher J. Stephens, Jr., Senior Vice
President, Finance and Chief Financial Officer, Barnes Group Inc. "Our
solid balance sheet and the strong cash flow expectation for 2015
position us favorably for further growth investments and acquisition
opportunities that support our strategy."
Conference Call
Barnes Group Inc. will conduct a conference call with investors to
discuss fourth quarter and full year 2014 results at 8:30 a.m. ET today,
February 20, 2015. The public may access the conference through a live
audio webcast available on the Investor Relations section of Barnes
Group's website at www.BGInc.com.
The conference is also available by direct dial at (877) 201-0168 in the
U.S. or (647) 788-4901 outside of the U.S.; Conference ID 49092873.
Supplemental materials will be posted to the Investor Relations section
of the Company's website prior to the conference call.
In addition, the call will be recorded and available for playback from
12:00 p.m. (ET) on Friday, February 20, 2015 until 11:59 p.m. (ET) on
Friday, February 27, 2015, by dialing (404) 537-3406; Conference ID
49092873.
About Barnes Group
Founded in 1857, Barnes Group Inc. (NYSE: B) is an international
industrial and aerospace manufacturer and service provider, serving a
wide range of end markets and customers. The highly engineered products,
differentiated industrial technologies, and innovative solutions
delivered by Barnes Group are used in far-reaching applications that
provide transportation, manufacturing, healthcare products, and
technology to the world. Barnes Group's approximately 4,500 skilled and
dedicated employees, at more than 60 locations worldwide, are committed
to achieving consistent and sustainable profitable growth. For more
information, visit www.BGInc.com.
Forward-Looking Statements
This press release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements often address our expected future operating and financial
performance and financial condition, and often contain words such as
"anticipate," "believe," "expect," "plan," "strategy," "estimate,"
"project," and similar terms. These forward-looking statements do not
constitute guarantees of future performance and are subject to a variety
of risks and uncertainties that may cause actual results to differ
materially from those expressed in the forward-looking statements. These
include, among others: difficulty maintaining relationships with
employees, including unionized employees, customers, distributors,
suppliers, business partners or governmental entities; failure to
successfully negotiate collective bargaining agreements or potential
strikes, work stoppages or other similar events; difficulties leveraging
market opportunities; changes in market demand for our products and
services; rapid technological and market change; the ability to protect
intellectual property rights; introduction or development of new
products or transfer of work; higher risks in international operations
and markets; the impact of intense competition; and other risks and
uncertainties described in documents filed with or furnished to the
Securities and Exchange Commission ("SEC") by the Company, including,
among others, uncertainties relating to conditions in financial markets;
currency fluctuations and foreign currency exposure; future financial
performance of the industries or customers that we serve; our dependence
upon revenues and earnings from a small number of significant customers;
a major loss of customers; inability to realize expected sales or
profits from existing backlog due to a range of factors, including
insourcing decisions, material changes, production schedules and volumes
of specific programs; the impact of government budget and funding
decisions; changes in raw material or product prices and availability;
integration of acquired businesses; restructuring costs or savings; the
continuing impact of prior acquisitions and divestitures and any other
future strategic actions, including acquisitions, joint ventures,
divestitures, restructurings, or strategic business realignments, and
our ability to achieve the financial and operational targets set in
connection with any such actions; the outcome of pending and future
legal, governmental, or regulatory proceedings and contingencies and
uninsured claims; future repurchases of common stock; future levels of
indebtedness; and numerous other matters of a global, regional or
national scale, including those of a political, economic, business,
competitive, environmental, regulatory and public health nature. The
Company assumes no obligation to update our forward-looking statements.
BARNES GROUP INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars
in thousands, except per share data) (Unaudited)
Three months ended December 31,
Twelve months ended December 31,
2014
2013
% Change
2014
2013
% Change
Net sales
$
310,173
$
291,136
6.5
$
1,262,006
$
1,091,566
15.6
Cost of sales
196,977
193,555
1.8
829,648
738,170
12.4
Selling and administrative expenses
64,613
63,515
1.7
252,384
230,195
9.6
261,590
257,070
1.8
1,082,032
968,365
11.7
Operating income
48,583
34,066
42.6
179,974
123,201
46.1
Operating margin
15.7
%
11.7
%
14.3
%
11.3
%
Interest expense
2,834
3,091
(8.3
)
11,392
13,090
(13.0
)
Other expense (income), net
314
835
(62.4
)
2,082
2,537
(17.9
)
Income from continuing operations before income taxes
45,435
30,140
50.7
166,500
107,574
54.8
Income taxes
12,177
3,827
NM
45,959
35,253
30.4
Income from continuing operations
33,258
26,313
26.4
120,541
72,321
66.7
(Loss) income from discontinued operations, net of income taxes
(1,746
)
511
NM
(2,171
)
198,206
NM
Net income
$
31,512
$
26,824
17.5
$
118,370
$
270,527
(56.2
)
Common dividends
$
6,539
$
5,927
10.3
$
24,464
$
22,422
9.1
Per common share:
Basic:
Income from continuing operations
$
0.60
$
0.49
22.4
$
2.20
$
1.34
64.2
(Loss) income from discontinued operations, net of income taxes
(0.03
)
0.01
NM
(0.04
)
3.68
NM
Net income
$
0.57
$
0.50
14.0
$
2.16
$
5.02
(57.0
)
Diluted:
Income from continuing operations
$
0.60
$
0.47
27.7
$
2.16
$
1.31
64.9
(Loss) income from discontinued operations, net of income taxes
(0.03
)
0.01
NM
(0.04
)
3.61
NM
Net income
$
0.57
$
0.48
18.8
$
2.12
$
4.92
(56.9
)
Dividends
0.12
0.11
9.1
0.45
0.42
7.1
Weighted average common shares outstanding:
Basic
54,896,444
53,983,034
1.7
54,791,030
53,860,308
1.7
Diluted
55,485,643
55,332,376
0.3
55,723,267
54,973,344
1.4
NM - Not Meaningful
BARNES GROUP INC. OPERATIONS BY REPORTABLE BUSINESS
SEGMENT (Dollars in thousands) (Unaudited)
Three months ended December 31,
Twelve months ended December 31,
2014
2013
% Change
2014
2013
% Change
Net sales
Industrial
$
198,165
$
183,739
7.9
$
822,051
$
687,550
19.6
Aerospace
112,009
107,399
4.3
439,959
404,021
8.9
Intersegment sales
(1
)
(2
)
50.0
(4
)
(5
)
20.0
Total net sales
$
310,173
$
291,136
6.5
$
1,262,006
$
1,091,566
15.6
Operating profit
Industrial
$
27,015
$
15,483
74.5
$
108,360
$
71,888
50.7
Aerospace
21,568
18,583
16.1
71,614
51,313
39.6
Total operating profit
$
48,583
$
34,066
42.6
$
179,974
$
123,201
46.1
Operating margin
Change
Change
Industrial
13.6
%
8.4
%
520
bps.
13.2
%
10.5
%
270
bps.
Aerospace
19.3
%
17.3
%
200
bps.
16.3
%
12.7
%
360
bps.
Total operating margin
15.7
%
11.7
%
400
bps.
14.3
%
11.3
%
300
bps.
BARNES GROUP INC. CONSOLIDATED BALANCE SHEETS (Dollars
in thousands) (Unaudited)
December 31, 2014
December 31, 2013
Assets
Current assets
Cash and cash equivalents
$
46,039
$
70,856
Accounts receivable
275,890
258,664
Inventories
212,044
211,246
Deferred income taxes
31,849
18,226
Prepaid expenses and other current assets
22,574
18,204
Total current assets
588,396
577,196
Deferred income taxes
10,061
2,314
Property, plant and equipment, net
299,435
302,558
Goodwill
594,949
649,697
Other intangible assets, net
554,694
534,293
Other assets
26,350
57,615
Total assets
$
2,073,885
$
2,123,673
Liabilities and Stockholders' Equity
Current liabilities
Notes and overdrafts payable
$
8,028
$
1,074
Accounts payable
94,803
88,721
Accrued liabilities
161,397
154,514
Long-term debt - current
862
56,009
Total current liabilities
265,090
300,318
Long-term debt
495,844
490,341
Accrued retirement benefits
115,057
80,884
Deferred income taxes
70,147
94,506
Other liabilities
15,954
16,210
Total stockholders' equity
1,111,793
1,141,414
Total liabilities and stockholders' equity
$
2,073,885
$
2,123,673
BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Twelve months ended December 31,
2014
2013
Operating activities:
Net income
$
118,370
$
270,527
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization
81,395
65,052
Amortization of convertible debt discount
731
2,391
Loss (gain) on disposition of property, plant and equipment
143
(887
)
Stock compensation expense
7,603
18,128
Withholding taxes paid on stock issuances
(4,367
)
(2,090
)
Loss (gain) on the sale of businesses
1,586
(313,708
)
Changes in assets and liabilities, net of the effects of
acquisitions/divestitures:
Accounts receivable
(21,367
)
(23,764
)
Inventories
(10,092
)
2,079
Prepaid expenses and other current assets
(7,137
)
(2,172
)
Accounts payable
8,123
2,384
Accrued liabilities
24,402
(9,891
)
Deferred income taxes
(9,841
)
3,412
Long-term retirement benefits
(7,584
)
(642
)
Other
4,933
(729
)
Net cash provided by operating activities
186,898
10,090
Investing activities:
Proceeds from disposition of property, plant and equipment
849
1,767
(Payments for) proceeds from the sale of businesses
(1,181
)
538,942
Change in restricted cash
4,886
-
Capital expenditures
(57,365
)
(57,304
)
Business acquisitions, net of cash acquired
-
(307,264
)
Component Repair Program payments
(70,100
)
(16,639
)
Other
(1,338
)
(2,058
)
Net cash (used) provided by investing activities
(124,249
)
157,444
Financing activities:
Net change in other borrowings
7,009
(2,753
)
Payments on long-term debt
(332,336
)
(555,195
)
Proceeds from the issuance of long-term debt
293,291
450,253
Payment of assumed liability to Otto Männer Holding AG
(19,796
)
-
Premium paid on convertible debt redemption
(14,868
)
-
Proceeds from the issuance of common stock
11,460
13,491
Common stock repurchases
(8,389
)
(68,608
)
Dividends paid
(24,464
)
(22,422
)
Excess tax benefit on stock awards
4,888
3,899
Other
(338
)
(1,472
)
Net cash used by financing activities
(83,543
)
(182,807
)
Effect of exchange rate changes on cash flows
(3,923
)
(227
)
Decrease in cash and cash equivalents
(24,817
)
(15,500
)
Cash and cash equivalents at beginning of year
70,856
86,356
Cash and cash equivalents at end of year
$
46,039
$
70,856
BARNES GROUP INC. RECONCILIATION OF NET CASH
PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (Dollars
in thousands) (Unaudited)
Twelve months ended December 31,
2014
2013
Free cash flow:
Net cash provided by operating activities
$
186,898
$
10,090
Capital expenditures
(57,365
)
(57,304
)
Free cash flow(1)
$
129,533
$
(47,214
)
Free cash flow to net income cash conversion ratio (as adjusted):
Free cash flow (from above)
$
129,533
$
(47,214
)
Income tax (reduction) payments related to the gain on the sale of
BDNA
(12,608
)
130,004
Free cash flow (as adjusted)(2)
116,925
82,790
Net income
118,370
270,527
Gain on the sale of BDNA, net of income taxes
-
(195,317
)
Net income (as adjusted)(2)
$
118,370
$
75,210
Free cash flow to net income cash conversion ratio (as adjusted)(2)
99
%
110
%
Notes:
(1) The Company defines free cash flow as net cash provided by operating
activities less capital expenditures. In 2013, net cash provided by
operating activities is negatively impacted by $130.0 million of
estimated income tax payments related to the gain on the sale of BDNA.
The proceeds from the sale are reflected in investing activities. The
Company believes that the free cash flow metric is useful to investors
and management as a measure of cash generated by business operations
that can be used to invest in future growth, pay dividends, repurchase
stock and reduce debt. This metric can also be used to evaluate the
Company's ability to generate cash flow from business operations and the
impact that this cash flow has on the Company's liquidity.
(2) For the purpose of calculating the cash conversion ratio, the
Company has excluded the income tax payments related to the gain on the
sale of BDNA made during 2013 and the utilization of the related
year-end 2013 income tax receivable to offset 2014 payments from free
cash flow and the gain on the sale of BDNA from net income.
BARNES GROUP INC. NON-GAAP FINANCIAL MEASURE
RECONCILIATION (Dollars in thousands, except per share
data) (Unaudited)
Three months ended December 31,
Twelve months ended December 31,
2014
2013
% Change
2014
2013
% Change
SEGMENT RESULTS
Operating Profit - Industrial Segment (GAAP)
$
27,015
$
15,483
74.5
$
108,360
$
71,888
50.7
Männer short-term purchase accounting adjustments
792
5,456
8,504
5,456
Männer acquisition transaction costs
-
1,823
-
1,823
Restructuring charges
467
-
6,020
-
CEO transition costs
-
-
-
6,589
Operating Profit - Industrial Segment as adjusted (Non-GAAP) (1)
$
28,274
$
22,762
24.2
$
122,884
$
85,756
43.3
Operating Margin - Industrial Segment (GAAP)
13.6
%
8.4
%
520
bps.
13.2
%
10.5
%
270
bps.
Operating Margin - Industrial Segment as adjusted (Non-GAAP) (1)
14.3
%
12.4
%
190
bps.
14.9
%
12.5
%
240
bps.
Operating Profit - Aerospace Segment (GAAP)
$
21,568
$
18,583
16.1
$
71,614
$
51,313
39.6
CEO transition costs
-
-
-
3,903
Operating Profit - Aerospace Segment as adjusted (Non-GAAP) (1)
$
21,568
$
18,583
16.1
$
71,614
$
55,216
29.7
Operating Margin - Aerospace Segment (GAAP)
19.3
%
17.3
%
200
bps.
16.3
%
12.7
%
360
bps.
Operating Margin - Aerospace Segment as adjusted (Non-GAAP) (1)
19.3
%
17.3
%
200
bps.
16.3
%
13.7
%
260
bps.
CONSOLIDATED RESULTS
Operating Income (GAAP)
$
48,583
$
34,066
42.6
$
179,974
$
123,201
46.1
Männer short-term purchase accounting adjustments
792
5,456
8,504
5,456
Männer acquisition transaction costs
-
1,823
-
1,823
Restructuring charges
467
-
6,020
-
CEO transition costs
-
-
-
10,492
Operating Income as adjusted (Non-GAAP) (1)
$
49,842
$
41,345
20.6
$
194,498
$
140,972
38.0
Operating Margin (GAAP)
15.7
%
11.7
%
400
bps.
14.3
%
11.3
%
300
bps.
Operating Margin as adjusted (Non-GAAP) (1)
16.1
%
14.2
%
190
bps.
15.4
%
12.9
%
250
bps.
Diluted Income from Continuing Operations per Share (GAAP)
$
0.60
$
0.47
27.7
$
2.16
$
1.31
64.9
Männer short-term purchase accounting adjustments
0.01
0.07
0.11
0.07
Männer acquisition transaction costs
-
0.03
-
0.03
Restructuring charges
0.01
-
0.07
-
CEO transition costs
-
-
-
0.12
April 2013 tax court decision
-
-
-
0.30
Diluted Income from Continuing Operations per Share as adjusted
(Non-GAAP) (1)
$
0.62
$
0.57
8.8
$
2.34
$
1.83
27.9
Full-Year 2015 Outlook
Diluted Income from Continuing Operations per Share (GAAP)
$
2.40
to
$
2.55
Männer short-term purchase accounting adjustments
0.02
Diluted Income from Continuing Operations per Share as adjusted
(Non-GAAP) (1)
$
2.42
to
$
2.57
Notes:
(1) The Company has excluded the following from its "as adjusted"
financial measurements: 1) short-term purchase accounting adjustments
related to its Männer acquisition in 2014, 2) restructuring charges
related to the closure of production operations at the Company's
Associated Spring facility located in Saline, Michigan in 2014, 3)
short-term purchase accounting adjustments and transaction costs related
to its Männer acquisition in 2013, 4) CEO transition costs associated
with the modification of outstanding equity awards in 2013 and 5) the
tax charge associated with the April 2013 tax court decision in 2013.
Management believes that these adjustments provide the Company and its
investors with an indication of our baseline performance excluding items
that are not considered to be reflective of our ongoing results.
Management does not intend results excluding the adjustments to
represent results as defined by GAAP, and the reader should not consider
it as an alternative measurement calculated in accordance with GAAP, or
as an indicator of the Company's performance. Accordingly, the
measurements have limitations depending on their use.
Barnes Group Inc. William Pitts Director, Investor Relations 860-583-7070
