Calls for Accountability and Shareholder-Centered ReformBUFFALO, N.Y., April 23, 2025 /PRNewswire/ -- Beaver Hollow Wellness, LLC ("BHW"), the largest active shareholder of Servotronics, Inc. (NASDAQ: SVT), today issued the following statement in response to the Company's amended proxy statement filed April 22, 2025:"Servotronics' latest filing is a clear sign of a board under pressure and out of touch," said Paul L. Snyder III, Chairman of BHW. "The escalation in rhetoric, along with newly inserted languag ...

Star Equity Fund Has Repeatedly Called on Company to Explore Strategic Alternatives Since 2022 OLD GREENWICH, Conn., March 25, 2025 (GLOBE NEWSWIRE) -- Star Equity Fund, LP ("Star Equity Fund" or "we"), an investment fund focused on unlocking shareholder value by engaging with management teams across its portfolio companies, comments today on Servotronics, Inc.'s (NYSE:SVT) ("Servotronics" or the "Company") recent announcement that its Board of Directors (the "Board") has commenced a review of strategic alt ...

Revenue Performance - Revenues for Q4 2024 were $9.8 million, down 20.8% from $12.3 million in Q4 2023, with units shipped decreasing by 22.0%[3] - Full-year 2024 revenues increased by 3.0% to $44.9 million, up from $43.6 million in 2023, driven by price increases and higher volumes[5] - Total revenue for 2024 increased to $44,917,000 from $43,629,000 in 2023, representing a growth of 2.95%[19] Profitability - Gross profit in Q4 2024 declined to $1.2 million, or 12.3% of revenue, compared to $2.8 million, or 22.4% of revenue in Q4 2023[3] - Consolidated gross profit for 2024 was $8.3 million, or 18.4% of revenue, compared to $7.8 million, or 17.9% for 2023[5] - Gross profit rose to $8,266,000 in 2024, compared to $7,805,000 in 2023, marking an increase of 5.91%[19] - Adjusted EBITDA for 2024 increased significantly to a profit of $0.7 million, reflecting operational improvements[6] Operating Loss and Expenses - Operating loss for Q4 2024 was ($1.1) million, a significant decline from operating income of $0.5 million in Q4 2023[3] - Operating expenses decreased to $9.3 million, or 20.6% of sales in 2024, down from $9.9 million, or 22.7% in 2023[5] - Operating loss improved to $1,009,000 in 2024 from $2,113,000 in 2023, a decrease of 52.3%[19] Net Loss and Earnings Per Share - Loss from continuing operations for 2024 was ($1.5) million, or ($0.60) per diluted share, compared to a loss of ($3.5) million, or ($1.44) per diluted share in 2023[5] - Net loss for 2024 decreased significantly to $1,623,000 from $10,787,000 in 2023, reflecting an improvement of 85%[19] - The company reported a basic and diluted loss per share of $0.64 for 2024, down from $4.37 in 2023, a reduction of 85.3%[19] Cash Flow and Assets - Cash provided by operating activities was $1.3 million for 2024, compared to a use of ($3.8) million for 2023, driven by lower net loss and improved cash collections[6] - Cash and restricted cash at the end of 2024 was $261,000, up from $245,000 in 2023, indicating a net increase of $16,000[20] - Total current assets decreased to $27,779,000 in 2024 from $29,567,000 in 2023, a decline of 6.05%[18] - Total assets decreased to $34,832,000 in 2024 from $36,587,000 in 2023, a decline of 4.8%[18] Liabilities and Financial Position - Total liabilities decreased to $11,328,000 in 2024 from $12,093,000 in 2023, a reduction of 6.31%[18] - The company is well positioned for growth in 2025, with expectations of profitable growth as aircraft deliveries resume[2] - Accounts receivable decreased to $9,288,000 in 2024 from $12,065,000 in 2023, a decline of 23.0%[18]

Business Operations - Servotronics divested its Consumer Products Group (CPG) segment in 2023, now operating solely under the Advanced Technology Group (ATG) for its servo-control business[13] - Servotronics holds long-term contracts with prime defense contractors, with less than 1% of contracts historically terminated for convenience[17] - The company is focusing on a rebranding initiative to better align with market demands in aerospace and defense sectors, targeting expansion into aftermarket and industrial markets[15] - The company emphasizes the importance of intellectual property as a competitive advantage, encompassing trademarks, copyrights, and trade secrets[20] - Servotronics aims to strengthen its market position through customized solutions, competing on product quality and timely delivery[18] Employee Engagement - The company reported an employee retention improvement from 60% in 2022 to nearly 90% in 2024, reflecting enhanced employee engagement strategies[24] - As of December 31, 2024, Servotronics employed 262 individuals, with 88% actively contributing to production and engineering tasks[23] - The ability to attract and retain key executives and employees is critical for the company's future success[27] Research and Development - Significant investments in research and development are ongoing to drive innovation and long-term growth[21] - The company is focused on the introduction of new technologies and the impact of competitive products on market acceptance[27] Risk Management - The company is actively managing supplier risks, as the loss of a significant supplier could materially affect operations[19] - Forward-looking statements indicate potential risks including global economic uncertainties and concentration of revenue among a small number of customers[27] - The company acknowledges numerous risks and uncertainties that may affect future operations, including political risks and changes in legal and regulatory environments[27] - The concentration of revenue among a relatively small number of customers poses a risk to the company's financial stability[27] - The company highlights potential disruptions in the global supply chain and labor markets as significant challenges[27] - The company is aware of the potential impact of pending and potential litigation on its operations[27] - The availability of financing and fluctuations in interest rates are factors that could influence the company's financial performance[27] Growth Strategy - The company emphasizes the importance of sustaining and managing growth while aligning capacity with demand[27] - The company plans to monitor the demand for new or existing aircraft that incorporate its products[27]

Core Viewpoint - Servotronics faced operational and financial challenges in Q3 2024, resulting in a loss despite increased revenues from higher sales volume and price adjustments [1][8] Q3 Results - The company reported a loss per share of 18 cents compared to earnings of 7 cents in the same quarter last year, attributed to operational difficulties [3] - Total revenues for the quarter were $12.4 million, reflecting a 7.3% increase from $11.6 million in Q3 2023 due to higher sales volume and prices [3] Gross Profit & Margins - Gross profit decreased by 9.2% to $2.27 million in Q3 2024 from $2.50 million in Q3 2023, with a gross margin of 18.2%, down from 21.6% [4] - The decline in gross margin was influenced by increased overhead costs and a less favorable product mix, although partially offset by higher prices and reduced prior-year product liability costs [4] Operating Performance - The operating margin fell to -2.3% from a positive 2.4% in Q3 2023, primarily due to one-time legal settlement expenses of $570,000 [5] - The net loss widened to $0.5 million from a net loss of $0.2 million in the prior-year quarter, impacted by legal settlement costs and higher interest expenses [5] Expenses - Cost of goods sold increased by 11.9% to $10.16 million in Q3 2024 from $9.08 million in Q3 2023, driven by a less favorable product mix and increased overhead costs [6] - Selling, general and administrative expenses decreased by 10.8% year over year to $1.98 million, attributed to lower research and development and legal expenses [6] Cash, Debt & Capex - Cash and restricted cash at the end of Q3 2024 were $196,000, down from $245,000 at the end of 2023, with line of credit usage rising to $3.17 million [7] - Capital expenditure for the nine months ended September 30 was $933,000, an increase from $606,000 in 2023, focused on machinery and building improvements [7] Other Developments - In 2023, Servotronics divested its Consumer Products Group segment, now concentrating on advanced technology products in aerospace and defense [7] - This strategic shift aims to align resources with core competencies in servo-control components, continuing to impact operational results [7]

Revenue Growth - Revenue for the three-month period ended September 30, 2024 increased by approximately $848,000, or 7.3%, compared to the same period in 2023[99] - Revenue for the nine-month period ended September 30, 2024 increased by approximately $3,858,000, or 12.3%, compared to the same period in 2023[100] - The company reported a revenue growth of 7% despite challenges in the commercial aerospace market, which is experiencing significant volatility[130] Gross Profit and Margins - Gross profit decreased approximately $231,000, or 9.2%, for the three-month period ended September 30, 2024, resulting in a gross margin of 18.2%[102] - Gross profit increased approximately $2,027,000, or 40.2%, for the nine-month period ended September 30, 2024, resulting in a gross margin of 20.1%[103] Operating Expenses - SG&A expenses for the three-month period ended September 30, 2024 decreased by $240,000, or 10.8%, compared to the same period in 2023[105] - SG&A expenses for the nine-month period ended September 30, 2024 decreased by $1,269,000, or 16.6%, compared to the same period in 2023[106] Operating Income and Loss - Operating loss for the three-month period ended September 30, 2024 was approximately $(281,000), a decline of approximately $(561,000) compared to operating income of $280,000 during the same period in 2023[109] - Operating income for the nine-month period ended September 30, 2024 improved by approximately $2,726,000 compared to the operating loss of $(2,624,000) during the same period in 2023[110] Income Taxes - Loss before income taxes for the three-month period ended September 30, 2024 was $(453,000), a decrease of approximately $(635,000), or (348.9)%, compared to income before income taxes of $182,000 during the same period in 2023[115] - For the nine-month period ended September 30, 2024, the loss before income taxes was $(251,000), an increase of approximately $2,612,000, or 91.2%, compared to a loss of $(2,863,000) in the same period in 2023[116] - The effective tax rate was 0.0% for the nine-month periods ended September 30, 2024, and 2023, reflecting a full valuation allowance against deferred tax assets[118] Cash Flow and Working Capital - Cash provided by operating activities was $11,000 for the nine-month period ended September 30, 2024, representing an increase of $4,919,000 compared to cash used of $(4,908,000) during the same period in 2023[124] - The company's working capital increased to approximately $21,845,000 as of September 30, 2024, compared to $20,795,000 as of September 30, 2023, primarily due to higher inventory levels[125] - Cash used for investing activities was approximately $(933,000) for the nine-month period ended September 30, 2024, compared to $(606,000) during the same period in 2023[126] - Cash provided by financing activities was $1,045,000 for the nine-month period ended September 30, 2024, primarily driven by advances from the line of credit[127] Discontinued Operations - Loss from continuing operations for the nine-month period ended September 30, 2024, improved by approximately $3,675,000, resulting in a loss of $(251,000) compared to $(3,926,000) in the same period in 2023[120] - Loss from discontinued operations for the nine-month period ended September 30, 2024, improved by approximately $7,254,000, resulting in a loss of $(72,000) compared to $(7,326,000) in the same period in 2023[122] Strategic Focus - The company is focused on managing costs and enhancing operating cash flow to achieve profitability and shareholder value[131]

Core Viewpoint - Servotronics, Inc. demonstrated a strong performance in Q2 2024, with significant revenue and profitability growth driven by strategic initiatives and increased market demand [1] Q2 Results - Earnings per share for Q2 2024 were 22 cents, a recovery from a loss of $1.33 per share in the same quarter last year [2] - Total revenues reached $12.3 million, marking a 15.3% increase from $10.6 million in Q2 2023, primarily due to higher volumes and improved pricing, despite an unfavorable sales mix [2] Profitability - Gross profit rose to $3.1 million from $1.6 million year-over-year, driven by increased volumes and operational efficiencies [3] - Operating income improved to $0.7 million from an operating loss of $1.7 million in Q2 2023, attributed to higher gross profit and reduced SG&A costs [3] Net Income - Net income from continuing operations was $0.6 million, compared to a net loss of $3.3 million in the prior-year quarter [4] - Overall net income for Q2 2024 was $0.6 million, a significant recovery from a net loss of $9.5 million in Q2 2023, which was impacted by losses from discontinued operations [4] Costs - SG&A expenses decreased by $0.9 million to $2.4 million from $3.3 million in Q2 2023, mainly due to lower professional and legal costs [5] - The cost of goods sold (COGS) slightly increased to $9.2 million from $9.1 million in Q2 2023, but the increase in revenue led to improved gross profit margins [6] Cash and Debt - Cash and restricted cash totaled $0.27 million at the end of Q2 2024, up from $0.25 million at the beginning of the year [7] - The company's line of credit was reduced to $1.473 million from $2.103 million at the end of 2023, indicating a focused effort on debt repayment [7] Management View - The company expressed confidence in its strategic positioning for long-term growth, anticipating strong demand in key markets for the remainder of the year [8] - Management noted satisfaction with the rebound from a slow start to the year, highlighting continuous improvement efforts that positively impacted growth, margins, and operating income [8] Cash Flow - Improvements in cash flow from operations increased by approximately $6.6 million compared to the same period in 2023, driven by higher net income and reductions in accounts receivable [9] - The decrease in SG&A expenses significantly contributed to improved operating income, alongside savings from lower non-recurring costs compared to the previous year [9]

` Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-07109 SERVOTRONICS, INC. (Exact name of registrant as specified in its charter) Delaware 16-0837866 (State or other jurisdiction of incorporation o ...

Servotronics boasts a strong balance sheet, with an operating cash flow of $2.8 million in the first quarter of 2024, providing the financial flexibility needed to invest in growth initiatives. The company replaced its previous line of credit with a new three-year financing agreement, ensuring continued support for its operations and expansion plans. Read the full Research Report on Servotronics here>>> Zacks Investment Research has recently initiated the coverage of Servotronics, Inc. (SVT) with an "Outper ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-07109 SERVOTRONICS, INC. (Exact name of registrant as specified in its charter) Delaware 16-0837866 (State or other jurisdiction of incorporation or organization) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 2 ...