CPS Technologies Corporation (NASDAQ:CPSH) Q4 2024 Earnings Conference Call March 13, 2025 9:00 AM ET Company Participants Chris Witty - Investor Relations Advisor Chuck Griffith - Chief Financial Officer Brian Mackey - President and CEO Conference Call Participants Operator Good day, and welcome to CPS Technologies Fourth Quarter and Year-End 2024 Earnings Call. [Operator Instructions]. It is now my pleasure to turn the floor over to your host, Chuck Griffith, Chief Financial Officer at CPS Technologies. C ...

Core Viewpoint - CPS Technologies Corporation is experiencing significant growth and is optimistic about its future, particularly for 2025, driven by new product developments and increased production capacity [3][4]. Financial Performance - Revenue for the fourth quarter of fiscal 2024 was $5.9 million, a decrease from $6.7 million in the prior-year period, primarily due to the conclusion of the HybridTech Armor contract with Kinetic Protection for the U.S. Navy [5][8]. - The company reported a gross loss of $0.3 million, or (4.6) percent of revenue, compared to a gross profit of $1.1 million, or 17.0 percent of revenue, in the same quarter of fiscal 2023 [5]. - Operating loss for the fourth quarter was $1.3 million, contrasting with an operating profit of $0.1 million in the prior-year period [6]. - The net loss was $1.0 million, or $(0.07) per diluted share, compared to net income of $0.2 million, or $0.01 per diluted share, in the quarter ended December 30, 2023 [6][13]. Operational Developments - The company has initiated a third shift of operations, which contributed to a 40% sequential revenue increase from the third quarter of fiscal 2024 [4]. - CPS has secured its first commercial order for radiation shielding and received Army SBIR funding to support Fiber Reinforced Aluminum (FRA), expanding its product portfolio into new markets [3][8]. - The company announced three Phase I SBIR contracts, each valued at $250,000, funded by the U.S. Army, focusing on advanced artillery challenges and enhancing military vehicle fuel efficiency [8]. Outlook - The company is positioning itself for stronger results in 2025, supported by increased demand for core products, including a $13.3 million power module contract [4]. - CPS is optimistic about returning to profitability as revenue continues to rise and operations improve [4].

Core Insights - CPS Technologies Corp. has been awarded a Phase I Small Business Innovation Research (SBIR) contract by the U.S. Army, marking its third contract in 2025, aimed at advancing the Army's Hybrid Electric Powertrain, Power, and Propulsion Systems (HEPPS) initiative [1][2] - The contract provides CPS Technologies with $250,000 in funding for a six-month research effort focused on developing fiber-reinforced aluminum (FRA) components for military vehicles [2] - FRA is expected to significantly reduce wear in hybrid electric systems, extending their lifespan while improving fuel economy and overall system performance [3][4] Company Overview - CPS Technologies is a leader in producing high-performance materials solutions, addressing critical needs in various applications including electric vehicles, wind turbines, and military applications [6] - The company became the exclusive global licensor of FRA technology in March 2024, which is designed for lightweight and wear-resistant applications [4] - CPS is committed to innovation and supporting customers in the transition to clean energy [6] Strategic Partnerships - The partnership with Triton Systems has positioned CPS Technologies to advance FRA technology for military applications, with both companies expressing excitement about the momentum towards market applications [5] - Triton Systems has a history of creating commercial products and independent spin-offs, contributing over $2 billion in shareholder value across its portfolio [7]

Group 1 - CPS Technologies Corp. will hold its fourth quarter 2024 investor conference call on March 13, 2025, at 9:00 A.M. Eastern Time, which is a change from the previously announced date [1] - The call will feature discussions on the company's financial results for the quarter and the year ended December 28, 2024, led by President and CEO Brian Mackey and CFO Chuck Griffith [1] Group 2 - CPS is a leader in technology and manufacturing, focusing on high-performance energy management components that support the electrification of the economy [2] - The company's products are integral to various applications, including electric trains, wind turbines, hybrid and electric vehicles, smart electric grids, and 5G infrastructure [2] - CPS also produces hermetic packages for aerospace and satellite applications, as well as armor products that offer ballistic protection and environmental durability at a lightweight [2]

Group 1: New Contracts and Developments - CPS Technologies Corp. has been awarded a Phase I Small Business Innovation Research (SBIR) contract from the U.S. Army, focusing on optimizing binder jet additive manufacturing for producing dense refractory tungsten alloys [1] - The new SBIR contract is valued at $250,000 and marks CPS's second such contract in 2025 [1] - CPS has received its first commercial purchase order for radiation shielding materials, which is under $100,000, with potential for follow-on orders based on successful test results [2] Group 2: CEO Insights and Market Demand - CEO Brian Mackey expressed enthusiasm about expanding the product portfolio and highlighted the significance of the radiation shielding purchase order as a validation of market demand [3] - The company has initiated its Phase II development effort with ongoing SBIR funding from the Department of Energy, indicating a strong commitment to innovation in radiation shielding [3] - The recent SBIR contract supports the U.S. Army's material needs, particularly for advanced munitions, showcasing CPS's alignment with defense sector requirements [3] Group 3: Company Overview - CPS is recognized as a technology and manufacturing leader in high-performance materials solutions, addressing critical needs across various applications including electric vehicles, wind turbines, and military applications [4] - The company's products are designed for exceptional ballistic protection and environmental durability while maintaining a lightweight profile [4] - CPS is committed to innovation and supporting the transition to clean energy through its advanced material solutions [4]

Core Insights - Consumer Portfolio Services, Inc. reported earnings of $5.1 million, or $0.21 per diluted share, for Q4 2024, reflecting a decrease from the previous year [1][3] - Total revenues for Q4 2024 were $105.3 million, up 14.5% from $92.0 million in Q4 2023 [2][3] - The company experienced a total revenue increase of 11.8% for the full year 2024, reaching $393.5 million compared to $352.0 million in 2023 [3] Financial Performance - Operating expenses for Q4 2024 were $98.0 million, an increase from $82.1 million in Q4 2023 [2] - For the full year 2024, total operating expenses rose to $366.1 million from $290.9 million in 2023 [3] - Pretax income for Q4 2024 was $7.4 million, down from $9.8 million in Q4 2023, while full-year pretax income decreased to $27.4 million from $61.1 million [2][3] Portfolio and Contracts - CPS purchased $457.8 million in new contracts during Q4 2024, compared to $301.8 million in Q4 2023, with total contracts purchased for 2024 amounting to $1.682 billion [4] - The company's receivables reached $3.491 billion as of December 31, 2024, up from $2.970 billion a year earlier [4][12] - Annualized net charge-offs for Q4 2024 were 8.02% of the average portfolio, an increase from 7.74% in Q4 2023 [5][13] Management Commentary - The CEO noted a 24% growth in new loan originations for 2024, contributing to strong revenue growth and expressed optimism for 2025 [6]

Company Overview - Cooper-Standard Holdings Inc. (NYSE: CPS) is an automotive parts manufacturer that has faced challenges since the pandemic, transitioning from profitability on a GAAP Net Income basis between 2010 and 2019 to incurring losses thereafter [1]. Investment Strategy - The investment strategy focuses on identifying companies with a high probability of substantial revenue and earnings growth that are not fully appreciated in current market prices, with a preference for less cyclical and higher growth sectors [1]. Market Position - The company has been unprofitable in recent years, which typically discourages larger positions from long-only investors, indicating a cautious approach towards investing in CPS [1].

Group 1 - CPS Technologies Corp. has been awarded a Phase I Small Business Innovative Research (SBIR) contract from the U.S. Army, valued at $250,000, to develop lightweight yet strong ultra-low temperature sintered ceramic materials for electromagnetic protection [1] - The new supply agreement with a longstanding customer has been finalized, increasing the contract value from approximately $12 million to $13.3 million, covering the period from October 2024 through September 2025 [2] - CEO Brian Mackey expressed optimism about the revised agreement and the SBIR win, indicating that 2025 is expected to be a productive year for the company [3] Group 2 - CPS is recognized as a technology and manufacturing leader in high-performance materials solutions, addressing critical needs in various applications such as electric vehicles, wind turbines, and aerospace [3]

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NORTON, Mass., Dec. 05, 2024 (GLOBE NEWSWIRE) -- CPS Technologies Corp. (NASDAQ:CPSH) (“CPS” or the “Company”) today announced the appointment of I. James Cavoli to its Board of Directors. Jim currently serves as president of Swagelok Company, a worldwide manufacturer of fluid system components and engineered assemblies. Jim was appointed chief operating officer of Swagelok Company in 2020 and named president in 2021. During his tenure as president, Jim grew the company’s market cap by 75%. Prior to that he ...