CVD Equipment Corporation (NASDAQ:CVV) Q4 2024 Earnings Conference Call March 19, 2025 5:00 PM ET Company Participants Emmanuel Lakios - President and CEO Richard Catalano - EVP and CFO Conference Call Participants Brett Reiss - Janney Montgomery Scott Operator Greetings and thank you for standing by. And welcome to CVD's Equipment Corporation's Fourth Quarter and Fiscal Year 2024 Financial Results Call. As a reminder, this conference is being recorded. We will begin with some prepared remarks, followed by ...

CVD Equipment (CVV) Q4 2024 Earnings Call March 19, 2025 05:00 PM ET Company Participants Emmanuel Lakios - President & Chief Executive OfficerRichard Catalano - Vice President and Chief Financial OfficerBrett Reiss - SVP Conference Call Participants None - Analyst Operator Greetings and thank you for standing by. And welcome to CVD's Equipment Corporation's Fourth Quarter and Fiscal Year twenty twenty four Financial Results Call. As a reminder, this conference is being recorded. We will begin with some pre ...

Financial Data and Key Metrics Changes - The company's Q4 2024 revenue was $7.4 million, an 80.3% increase from Q4 2023, but lower than the $8.2 million reported in Q3 2024 [4][10] - Full-year revenue for 2024 was $26.9 million, an 11.5% increase from the previous year [4][12] - Gross profit for Q4 was $2 million, with a gross profit margin of 27.3%, compared to a negative gross profit of $348,000 in Q4 2023 [11][12] - The company recorded a net income of $132,000 for Q4 2024, compared to a net loss of $2.3 million in Q4 2023 [12] Business Line Data and Key Metrics Changes - Revenue from the CBD equipment segment increased by $2.8 million in Q4 2024, driven by aerospace and industrial contracts [10] - The SDC segment saw a revenue increase of 28.8% in Q4 2024, attributed to strong demand for gas delivery systems [11] - Orders for the full year of 2024 were $28.1 million, an increase of 8.9% from 2023 [6] Market Data and Key Metrics Changes - The aerospace and defense market is experiencing ongoing recovery, with a follow-on order of $3.5 million received from an existing aerospace customer [6] - The silicon carbide market remains challenging due to global overcapacity and declining wafer prices [5][8] Company Strategy and Development Direction - The company is focused on four key strategic segments: aerospace defense, microelectronics, energy storage, and industrial [7] - The end of life for the MesoScribe product line allows the company to concentrate on core CBD and SDC product lines [8] - The company aims to build critical customer relationships while managing expenses to achieve long-term profitability [9] Management's Comments on Operating Environment and Future Outlook - Management expects fluctuations in orders and revenue levels due to the nature of emerging growth markets and geopolitical challenges [8][9] - The company is optimistic about its backlog, which was $19.4 million at year-end 2024, a 4.9% increase from 2023 [8] - Future profitability is contingent on new equipment orders and managing inflationary pressures [14] Other Important Information - The company recognized gains of $717,000 from the sale of equipment during fiscal 2024, primarily from the MesoScribe segment [13] - Working capital at year-end 2024 was $13.9 million, slightly down from $14.3 million in the prior year [13] Q&A Session Summary Question: How did the large $10 million silicon carbide coating order come about? - The order was a result of the company's development of a large volume silicon carbide CMC system for aerospace, which met a need from an industrial customer [19][20] Question: Are there other entities that might need similar solutions? - Yes, the technology is applicable to other customers in the industrial space, but demand expansion is necessary [25][26] Question: What are the prospects for new orders for PVT200 systems? - Uncertainty exists due to overcapacity and pricing issues in the wafer market, making it difficult to predict new orders [28] Question: How many major aerospace engine manufacturers are there? - There are four major manufacturers, with the company currently having relationships with three [32][33] Question: Will the company see follow-up orders for spare parts from a previous customer? - Spare parts orders have started to increase, and the company will continue to support that customer [41] Question: Are there potential opportunities in the battery materials business? - The company is exploring opportunities beyond its current customer, 1D, but the market is competitive [42][44] Question: What is the outlook for operating margins? - Margins are expected to improve, potentially exceeding 30% if overhead is managed effectively [51][57]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period from ___ to _____ Commission file number: 1-16525 CVD EQUIPMENT CORPORATION (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorp ...

Revenue Performance - Fourth quarter 2024 revenue was $7.4 million, an increase of 80.3% year over year, driven by higher system revenue from the CVD Equipment segment and increased gas delivery system revenue from the SDC segment [2]. - Full year 2024 revenue reached $26.9 million, a rise of 11.5% compared to $24.1 million in 2023, primarily due to increased revenues from aerospace contracts and the SDC segment [8]. Profitability - The gross profit margin for 2024 improved to 23.6%, up from 21.0% in the prior year, attributed to higher revenues and improved margins on CVD contracts [8]. - Fourth quarter operating income was $35,000, compared to an operating loss of $2.5 million in the same quarter of the previous year [4]. - Net income for the fourth quarter was $132,000, or $0.02 per share, compared to a net loss of $2.3 million, or $0.33 per share, in the prior year [4]. Orders and Backlog - The backlog as of December 31, 2024, was $19.4 million, up from $18.4 million at the end of 2023 [2]. - Total new orders for the fiscal year were $28.1 million, an increase of approximately 8.9% from $25.8 million in 2023, driven by aerospace and industrial orders [8]. Strategic Focus - The company continues to invest in research and development and sales and marketing, focusing on aerospace & defense, microelectronics/power electronics, and EV battery materials/energy storage [8]. - The company anticipates fluctuations in order and revenue levels due to the nature of the emerging growth markets and geopolitical challenges affecting the supply chain [2]. Inventory Management - The company recognized a $1.3 million non-cash charge in 2024 to reduce PVT150™ inventory to net realizable value [8].

Core Insights - CanAlaska Uranium Ltd. has confirmed additional high-grade unconformity-associated uranium mineralization at the Pike Zone through recent geochemical assays [1][3][4] - The summer 2024 drill program at the West McArthur project revealed significant uranium intersections, including 17.0 metres at 10.81% U3O8 and 6.5 metres at 10.05% U3O8 [1][3][4] - The ongoing 2025 winter exploration program aims to expand and delineate the high-grade Pike Zone uranium discovery, with three drills currently active [35][37] Company Overview - CanAlaska Uranium is a leading explorer of uranium in the Athabasca Basin, holding approximately 500,000 hectares of uranium properties [39] - The company operates the West McArthur project in joint venture with Cameco Corporation, holding an 85.97% ownership [1][39] - CanAlaska is fully financed for the 2025 drill season and focuses on Tier 1 uranium deposit discovery in a secure jurisdiction [39] Exploration and Drilling Results - The summer 2024 drill program consisted of 12 unconformity tests, with 11 containing uranium mineralization, indicating a strike length of approximately 200 metres [3][4] - Significant drillhole results include WMA082-12 with 17.0 metres at 10.81% U3O8 and WMA094-02 with 6.5 metres at 10.05% U3O8, including high-grade intervals [1][3][4] - The 2025 winter program is expected to achieve around 25 unconformity target intersections, optimizing drilling efficiency through advanced technology [36] Future Plans and Events - CanAlaska will showcase at the Swiss Mining Institute Conference on March 18th and 19th, 2025, to present its exploration progress [38] - The company plans to complete the winter portion of the 2025 exploration program by April [36]

Core Insights - CanAlaska Uranium Ltd. announced significant results from its ongoing winter diamond drill program at the Pike Zone, highlighting an ultra high-grade uranium intersection of 14.5 metres at 12.20% eU3O8, including 5.0 metres at 34.38% eU3O8, marking the best results to date for the project [1][2][4] Company Overview - CanAlaska Uranium Ltd. holds an 85.97% ownership in the West McArthur Joint Venture Project, which is operated in partnership with Cameco Corporation [1][4] - The company is focused on the exploration and discovery of high-grade unconformity uranium deposits in Canada's Athabasca Basin, with a landholding of approximately 500,000 hectares [21][22] Exploration Program Details - The 2025 winter exploration program aims to expand and delineate the ultra high-grade Pike Zone uranium discovery, located 20 km west of Cameco's McArthur River mine site [4][8] - Three drills are currently active, with one drill focusing on step-outs to the east, confirming the extension of high-grade mineralization [5][6] - The program is expected to achieve around 25 unconformity target intersections, utilizing advanced drilling technologies to enhance efficiency and accuracy [8] Drill Results - Drillhole WMA076-01 reported 14.5 metres at 12.20% eU3O8, with a notable section of 5.0 metres at 34.38% eU3O8, expanding the ultra high-grade footprint by at least 15 metres to the east [1][15] - Additional drillholes, such as WMA094-04, confirmed continuity of high-grade mineralization with 4.9 metres at 3.04% eU3O8, including 1.5 metres at 8.87% eU3O8 [6][16] - The ongoing drilling program is designed to evaluate mineralization continuity and identify additional high-grade zones within the Pike Zone [7][8]

Core Points - CanAlaska Uranium Ltd. has completed a bought deal private placement of 8,400,000 flow-through shares at a price of $1.19 per share, resulting in gross proceeds of $9,996,000 [2][3] - The offering was led by Cormark Securities Inc. and included Desjardins Capital Markets, with a total cash commission of $599,760 paid to the underwriters [3] - The proceeds will be used for eligible Canadian exploration expenses related to the company's projects in Saskatchewan, with all qualifying expenditures to be renounced in favor of the subscribers effective December 31, 2024 [5] Company Overview - CanAlaska Uranium Ltd. is a Canadian exploration company focused on high-grade unconformity uranium deposits, holding interests in approximately 500,000 hectares in Canada's Athabasca Basin [7] - The company is advancing the Pike Zone discovery on its West McArthur Joint Venture project and has several other uranium-focused exploration programs [7] - CanAlaska employs a hybrid project generator model, acquiring and selling prospective projects while executing exploration programs on strategic land holdings [7]

Core Viewpoint - CVD Equipment Corporation reported strong revenue growth in Q3 2024, driven by increased demand in aerospace and defense sectors, despite facing challenges in inventory and market dynamics [2][8]. Financial Performance - Revenues for Q3 2024 reached $8.2 million, marking a 31.4% increase year over year [2]. - Gross profit improved to $1.8 million, a 14.8% increase from the previous year, although gross margin declined to 22.4% from 25.6% due to a $1 million inventory charge [3]. - The company achieved a net income of $0.2 million, or $0.03 per diluted share, compared to a net loss of $0.8 million, or $0.11 per share, a year earlier [3]. Backlog and Bookings - The backlog as of September 30, 2024, was $19.8 million, down from $24 million on June 30, 2024, but up from $18.4 million on December 31, 2023 [4]. - Total bookings for the quarter were $4.1 million, slightly lower than the $4.4 million recorded in the same quarter last year [4]. Segment Performance - CVD Equipment segment revenues rose 18.5% to $5.7 million, accounting for 69.3% of total revenues, driven by aerospace contract activities [5]. - SDC segment revenues grew 27.5% year over year to $2 million, representing 22.6% of total revenues, due to increased demand for gas delivery systems [5]. - CVD Materials segment revenues surged 634.4% year over year to $0.7 million, driven by final sales to an aerospace company [6]. Management Insights - CEO Emmanuel Lakios highlighted the strategic importance of the first shipment of the PVT200 system for 200mm silicon carbide wafer production, reflecting industry trends [7]. - Management noted ongoing growth in aerospace and defense markets, supported by a $3.5 million order for CVI/CVI3500 systems [7]. - The company is focused on improving profitability and customer engagement despite challenges from inventory adjustments and market shifts [7]. Market Dynamics - The quarter benefited from increased demand in aerospace and defense, particularly for Ceramic Matrix Composites, which are essential for reducing fuel consumption in jet engines [8]. - Challenges included overcapacity and declining prices in the silicon carbide market, impacting PVT150 systems [8]. Future Outlook - Management did not provide explicit financial guidance but expressed confidence in sustaining operations over the next 12 months, supported by a cash balance of $10 million and a backlog of orders [9]. - The company acknowledged potential revenue fluctuations due to variable order timing and emerging market dynamics [9]. - CVD Equipment emphasized disciplined cost management and focused R&D investment to support future growth, particularly in expanding its silicon carbide product portfolio [10]. Other Developments - During the quarter, CVD Equipment finalized the wind-down of its MesoScribe subsidiary, recognizing a $0.6 million gain from the sale of equipment, aligning with a strategy to focus on high-growth markets [11].

Financial Data and Key Metrics Changes - The company's revenue for Q3 2024 was $8.2 million, a 31.4% increase from the prior year and a 29.1% increase compared to Q2 2024, while year-to-date revenue was $19.5 million, down 2.8% from the prior year period [7][13] - Gross profit for Q3 2024 was $1.8 million, with a gross profit margin of 22.4%, compared to a gross profit of $1.6 million and a margin of 25.6% in Q3 2023 [18] - Operating income for Q3 2024 was $77,000, compared to an operating loss of $1 million in Q3 2023 [20] - Net income for Q3 2024 was $209,000, or $0.03 per share, compared to a net loss of $753,000, or $0.30 per share in Q3 2023 [21] Business Line Data and Key Metrics Changes - Revenue from the CVD Equipment segment increased by $0.9 million, or 18.5%, compared to the prior year quarter, primarily due to higher revenues from aerospace contracts [14][16] - The SDC segment saw a revenue increase of 27.5% compared to Q3 2023, driven by strong demand for gas delivery systems [16] - The MesoScribe subsidiary ceased operations effective September 30, 2024, after fulfilling its final orders, contributing a gain of $0.6 million from the sale of equipment [15] Market Data and Key Metrics Changes - Orders for Q3 2024 were $4.1 million, primarily driven by demand in the CVD segment, with total orders for the first nine months of 2024 at $21 million, up from $19.9 million in the same period of 2023 [9] - The backlog as of September 30, 2024, was $19.8 million, a 7.6% increase from the year-end backlog of 2023 [10] Company Strategy and Development Direction - The company aims to build critical customer relationships, achieve profitability, manage cash flow and costs, while focusing on growth and return on investment [12] - The company is addressing overcapacity and declining wafer prices in the 150-millimeter silicon carbide market by transitioning to 200-millimeter production [11] Management's Comments on Operating Environment and Future Outlook - Management noted that revenue and order levels fluctuate due to the nature of emerging growth end markets [23] - The company believes that cash and cash equivalents, along with projected cash flow from operations, will be sufficient to meet working capital and capital expenditure requirements for the next 12 months [24] Other Important Information - The company recorded a non-cash charge of approximately $1 million to reduce the net realizable value of PVT150 inventory due to market conditions [17] - Working capital at September 30, 2024, was $13.3 million, down from $14.3 million at the end of December 2023 [22] Q&A Session Summary Question: Can you disclose the type of clients you have? - The company has NDAs with customers that prevent disclosing specific details about them, but it can confirm that one client is a leading gas turbine engine manufacturer and another is involved in electric vehicles [26][28] Question: Can you mention the type of company besides the name? - The company confirmed that the aerospace client manufactures gas turbine engines and the EV client produces silicon carbide wafers [29]