Group 1 - TransDigm Group has successfully completed the acquisition of Servotronics, with a tender offer price of $47.00 per share in cash [1][2][3] - A total of 2,228,197 shares of Servotronics' common stock were validly tendered, representing approximately 87.09% of outstanding shares [2] - The merger was completed without a vote from Servotronics' stockholders, as TransDigm acquired a sufficient number of shares [3] Group 2 - Outstanding shares of Servotronics that were not tendered will be converted into the right to receive the tender offer price [4] - Servotronics' common stock will cease trading on NYSE American, and a notice of delisting is expected to be filed [4] Group 3 - TransDigm Group is a leading global designer and supplier of highly engineered aircraft components for commercial and military aircraft [6] - Major product offerings include mechanical/electro-mechanical actuators, ignition systems, specialized pumps, and various aerospace components [6] Group 4 - Servotronics designs and manufactures servo controls and components for commercial and government applications, including aerospace [7]

Since 2022, Star Equity Fund repeatedly called on Servotronics to explore strategic alternatives Star Equity Fund’s advocacy generated substantial returns for all SVT shareholders OLD GREENWICH, Conn., June 30, 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 and owner of approximately 6% of the common stock of Servotronics, Inc. (NYSE American: SVT) (“Servot ...

Shares of Servotronics, Inc. (SVT) have declined 0.1% since reporting earnings for the first quarter of 2025. This compares unfavorably with the S&P 500 index’s 3.3% growth over the same time frame. Over the past month, the stock has gained 3%, underperforming the broader index’s 8.1% rally.Revenue & Earnings Swing PositiveFor the three months ended March 31, 2025, Servotronics posted revenues of $11.7 million, a 12% increase from $10.4 million in the prior-year period. The top-line expansion was driven pri ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements show a significant turnaround, with a return to profitability driven by revenue growth [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities increased, driven by higher accounts receivable and greater use of the line of credit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $29,629 | $27,779 | | Accounts receivable, net | $11,362 | $9,288 | | Inventories, net | $15,488 | $15,826 | | **Total Assets** | **$36,708** | **$34,832** | | **Total Current Liabilities** | $8,551 | $6,855 | | Line of credit | $3,725 | $2,127 | | **Total Liabilities** | **$13,013** | **$11,328** | | **Total Shareholders' Equity** | **$23,695** | **$23,504** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company achieved a significant operational turnaround with a 12% revenue increase and a return to net income Q1 2025 vs. Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $11,703 | $10,446 | | Gross Profit | $2,360 | $1,735 | | Operating Income (Loss) | $242 | ($283) | | Net Income (Loss) | $128 | ($383) | | Basic and Diluted EPS | $0.05 | ($0.16) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income improved significantly, driven by the shift from a net loss to a net income Q1 Comprehensive Income (Loss) (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $128 | ($383) | | Other Comprehensive Income | $17 | $19 | | **Total Comprehensive Income (Loss)** | **$145** | **($364)** | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow from operations turned negative due to a substantial increase in accounts receivable Q1 Cash Flow Summary (in thousands) | Cash Flow Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash (Used) Provided by Operating Activities | ($1,589) | $413 | | Net Cash Used by Investing Activities | ($52) | ($152) | | Net Cash Provided (Used) by Financing Activities | $1,598 | ($94) | | **Net (Decrease) Increase in Cash** | **($74)** | **$41** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes highlight the OKC discontinued operation, significant customer concentration, a pending lawsuit, and credit facility details - The sale of assets from The Ontario Knife Company (OKC) closed on August 1, 2023, and its results are now reported as a discontinued operation[19](index=19&type=chunk)[55](index=55&type=chunk) - The company has significant customer concentration, with four customers collectively accounting for approximately **84% of revenues** in Q1 2025[89](index=89&type=chunk) - The company is defending against a lawsuit from an employee seeking damages of at least **$5 million**, though management does not consider the risk of loss to be probable[87](index=87&type=chunk) - The company has a **$7 million** asset-based line of credit and was in compliance with its covenants as of March 31, 2025[64](index=64&type=chunk)[66](index=66&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the drivers of improved performance, including revenue growth and margin expansion, and its liquidity position [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Revenue grew 12% due to price and volume increases, leading to a 36% rise in gross profit and a return to operating income Q1 2025 vs Q1 2024 Performance Comparison (in thousands) | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $11,703 | $10,446 | $1,257 | 12.0% | | Gross Profit | $2,360 | $1,735 | $625 | 36.0% | | *Gross Margin* | *20.2%* | *16.6%* | - | - | | Operating Income (Loss) | $242 | ($283) | $525 | 185.5% | - Revenue growth was driven by price increases of approximately **$451,000** and volume increases of approximately **$763,000**[104](index=104&type=chunk) - The increase in SG&A was primarily due to higher professional and legal fees related to the review of strategic alternatives[108](index=108&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by its credit facility, which was used to fund a working capital deficit from higher receivables Key Liquidity Data (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | ($1,589) | $413 | | Net Cash from Financing Activities | $1,598 | ($94) | | Working Capital | $21,078 | $21,481 | - The use of cash from operations in Q1 2025 was primarily due to an **increase in accounts receivable**[116](index=116&type=chunk) - Primary sources of liquidity are cash from operations and the **$7 million** credit facility, which had approximately **$3 million** of additional funding capability[120](index=120&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exempt from this disclosure requirement as a smaller reporting company - As a smaller reporting company, Servotronics is not required to provide quantitative and qualitative disclosures about market risk[131](index=131&type=chunk) [Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective with no material changes to internal controls - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were **effective** as of March 31, 2025[132](index=132&type=chunk) - **No material changes** were made to the company's internal controls over financial reporting during the first quarter of 2025[133](index=133&type=chunk) [PART II. OTHER INFORMATION](index=31&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material pending legal proceedings beyond those disclosed in the financial statement notes - The company refers to Note 9 for details on legal proceedings and states there are **no other material proceedings pending**[135](index=135&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) As a smaller reporting company, Servotronics is not required to provide this information - The company is a smaller reporting company and is **not required to provide risk factor disclosures** in its Form 10-Q[136](index=136&type=chunk) [Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - **No directors or Section 16 officers** adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter[139](index=139&type=chunk) [Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists the required CEO/CFO certifications and XBRL data files filed as exhibits - The report includes required certifications from the CEO and CFO, as well as XBRL interactive data files as exhibits[140](index=140&type=chunk)

Sends Letter to Servotronics, Inc. Shareholders Highlighting Material UnderperformanceOn May 2, 2025, Beaver Hollow Wellness issued the following press release and letter:Beaver Hollow Wellness Files Definitive Proxy Statement and Sends Letter to Servotronics, Inc. Shareholders Highlighting Material Underperformance, Misguided Capital Allocation Strategy and Loss of Shareholder ValueNominates Four Highly Qualified Director Nominees – Paul L. Snyder III, Christine R. Marlow, Michael W. Dolpp and Charles C. A ...

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]