Financial Data and Key Metrics Changes - The first quarter revenue was $47.8 million, a significant increase from the prior year [14] - The gross profit margin improved to 28.2% from 21.0% in the previous year, benefiting from employee retention credits and a favorable sales mix [22] - Net profit for the first quarter was $1.9 million or $0.14 per diluted share, compared to a loss of $4 million or $0.30 per diluted share in the prior year [26] - EBITDA improved to $5.4 million from a loss of $1.6 million in the previous year [26] - Operating income was $3.2 million compared to an operating loss of $3.1 million in the prior year [25] Business Line Data and Key Metrics Changes - Industrial sales increased by 13.1%, while marine and propulsion sales rose by 1.8%, with transmission sales remaining flat [20] - The backlog has increased across all markets, particularly in oil and gas and aftermarket spare parts for North America [64] Market Data and Key Metrics Changes - Sales into North America were up 18%, while sales into Europe increased by 2%, and sales into Asia Pacific decreased by 9% [21] - The company experienced a net positive impact of $0.5 million from foreign currency exchange in the first quarter [21] Company Strategy and Development Direction - The company is focusing on restructuring operations to improve efficiency, including outsourcing machining operations not related to gear manufacturing [11] - Investments will be made in hybrid and electrification areas, as well as in testing and safety equipment [59] - The company aims to preserve liquidity and has deferred nonessential capital spending, expecting to invest $9 million to $11 million in fiscal 2022 [28] Management's Comments on Operating Environment and Future Outlook - Management noted that supply chain issues are stabilizing, with improvements expected in the second half of the year [40] - The company anticipates continued demand improvement across markets for several quarters [29] - Concerns remain regarding labor shortages and supply chain constraints, but management is optimistic about future performance [30] Other Important Information - The company completed a sale leaseback of its Swiss production facility for net proceeds of $9.1 million, resulting in a gain of $2.9 million [25] - Restructuring charges of approximately $1 million are expected in the second fiscal quarter, bringing the total charge to $3.3 million [24] Q&A Session Summary Question: How is the company managing through supply chain pressures? - Management indicated that supply chain issues are labor-related and have stabilized, with dual sourcing strategies being employed [36][38] Question: What is the current inventory balance and its implications? - A significant portion of the inventory increase is work-in-process, with improvements expected as supply chain issues ease [41][42] Question: What is the outlook for the marine business? - Management expressed confidence in growth due to repowering activity and improving demand in the marine sector [53][56] Question: How is the company addressing labor shortages? - The company is facing challenges in attracting labor, particularly in the U.S., and is considering increasing wages and investing in technology to improve efficiency [67][80] Question: What is the competitive position in the oil and gas sector? - Management believes the company is better positioned than in previous years due to maintained inventory levels and readiness to respond to market demands [92][93]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECRURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended June 30, 2021 or ☐ 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 1-7635 TWIN DISC, INCORPORATED (Exact Name of Registrant as Specified in its Charter) Wisconsin 39-0667110 (State or Other J ...

Twin Disc, Incorporated (NASDAQ:TWIN) Q4 2021 Earnings Conference Call August 13, 2021 11:00 AM ET Company Participants Stanley Berger - President of SM Berger & Company, Inc. John Batten - Chief Executive Officer James Feiertag - President and Chief Operating Officer Conference Call Participants Noah Kaye - Oppenheimer & Co. Inc. Josh Chan - Robert W. Baird & Co. Inc. Operator Good day, and welcome to the Twin Disc's Fiscal 2021 Fourth Quarter Conference Call. Today's call is being recorded. At this time, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended March 26, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-7635 TWIN DISC, INCORPORATED (Exact name of registrant as specified in its charter) Wisconsin 39-0667110 (State or other jurisdiction of (I.R.S. Employer Incorporation or organization) Id ...

Financial Data and Key Metrics Changes - Sales for Q3 2021 were $57.6 million, down $11 million or 16% from the prior year [15] - Gross profit margin for Q3 was 24.2%, slightly up from 24.1% in the prior year [17] - Net profit for Q3 was $100,000 or $0.01 per diluted share, compared to a net loss of $25.2 million or $1.92 per diluted share in the prior year [22] - EBITDA for Q3 was $3.8 million, improved from negative $24.9 million in the prior year [23] Business Line Data and Key Metrics Changes - Transmission sales were down 13.4%, industrial sales down 14.8%, and marine and propulsion sales down 23.2% compared to the prior year [15] - The decline in aftermarket volume and shipments into the North American oil and gas markets contributed to the less profitable mix of revenues [17] Market Data and Key Metrics Changes - Sales in North America were down 29%, Europe down 10%, and Asia Pacific down 6% [16] - Foreign currency exchange had a net positive impact of $3.9 million on sales in Q3 [16] Company Strategy and Development Direction - The company is focusing on cost reduction opportunities to compensate for revenue declines [19] - There is a strong emphasis on R&D and project activity in hybrid and electrification, with plans to roll out new products in global and off-highway markets [12][30] - The company plans to modernize its facilities and implement cost reduction activities as travel restrictions ease [28] Management's Comments on Operating Environment and Future Outlook - Management noted that April orders rebounded, indicating an improvement in market share throughout the calendar year [27] - The company is optimistic about the recovery of North American oil and gas rebuild activities and expects to see new unit orders by late summer or early fall [34][27] - Management acknowledged ongoing supply chain issues but indicated that the impact on margins was being mitigated [39][40] Other Important Information - The company recorded restructuring charges of $251,000 in Q3, primarily related to cost structure adjustments [20] - Inventory was down $5.5 million in the quarter, reflecting a focus on liquidity and cash flow [24] Q&A Session Summary Question: When will there be a more pronounced uptake in new equipment for oil and gas? - Management anticipates rebuild activity to continue for the next quarter, with new units expected by late summer or early fall [34] Question: Will the company have products to serve the demand for hybrid or electric tracking equipment? - Management confirmed that they are working on products to meet this demand and hope to provide updates in future calls [35] Question: What incremental gross margins can be expected as the market recovers? - Management expects incremental gross margins to be in the mid-30s as markets recover, with potential for higher margins if weighted towards North American oil and gas [36] Question: Can you quantify the impact of supply chain issues on margins? - Management indicated that the impact was not significant in the current quarter but acknowledged that costs would be felt in the coming months [39] Question: Will the company be able to produce to end market demand this quarter? - Management stated that they are currently able to meet demand and have scheduled container ships arriving in late May [46] Question: How does the proposed California fracking ban affect the company? - Management expressed that the company’s exposure to California is minimal and does not concern them significantly [50]

[Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the company's condensed consolidated financial statements and related notes [Condensed Consolidated Balance Sheets](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) The balance sheets show a **4.23% increase in total assets** and a **6.50% increase in total liabilities** as of December 25, 2020 Balance Sheet Summary | Metric | Dec 25, 2020 (in thousands) | Jun 30, 2020 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------- | :------- | | Total assets | $306,583 | $294,127 | $12,456 | 4.23% | | Total liabilities | $164,188 | $154,169 | $10,019 | 6.50% | | Total equity | $142,395 | $139,958 | $2,437 | 1.74% | | Cash | $11,838 | $10,688 | $1,150 | 10.76% | | Inventories | $122,161 | $120,607 | $1,554 | 1.29% | | Property, plant and equipment, net| $78,187 | $72,732 | $5,455 | 7.50% | | Deferred income taxes (assets) | $30,924 | $24,445 | $6,479 | 26.50% | | Accrued liabilities | $42,924 | $36,380 | $6,544 | 17.99% | | Lease obligations | $18,099 | $13,495 | $4,604 | 34.12% | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS%20AND%20COMPREHENSIVE%20INCOME%20(LOSS)) The company reported a net loss for the quarter and two quarters, with decreased net sales and gross profit, but comprehensive income improved due to foreign currency adjustments Statements of Operations Summary | Metric (in thousands) | Q2 FY21 (Dec 25, 2020) | Q2 FY20 (Dec 27, 2019) | 2Q FY21 (Dec 25, 2020) | 2Q FY20 (Dec 27, 2019) | | :-------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net sales | $48,438 | $59,536 | $94,581 | $118,826 | | Gross profit | $9,485 | $15,711 | $19,762 | $25,347 | | Loss from operations | $(4,608) | $(4,950) | $(7,759) | $(11,781) | | Net Loss | $(4,280) | $(6,466) | $(8,217) | $(12,759) | | Net loss attributable to Twin Disc | $(4,313) | $(6,516) | $(8,292) | $(12,827) | | Basic loss per share | $(0.33) | $(0.49) | $(0.63) | $(0.98) | | Comprehensive income (loss) | $1,278 | $(4,125) | $1,581 | $(13,000) | - Net sales decreased by **18.6%** for the quarter and **20.4%** for the two quarters ended December 25, 2020, compared to the prior year, primarily due to broad-based softening in demand across oil and gas, industrial, and marine markets, exacerbated by the COVID-19 crisis[93](index=93&type=chunk)[102](index=102&type=chunk) - Gross profit margin declined to **19.6%** for the quarter (from 26.4%) and **20.9%** for the two quarters (from 21.3%), attributed to unfavorable product mix and reduced volume[96](index=96&type=chunk)[105](index=105&type=chunk) - Comprehensive income shifted from a loss to a gain, largely driven by a significant positive foreign currency translation adjustment of **$4.899 million** for the quarter and **$8.511 million** for the two quarters[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Operating cash flow significantly improved, while investing cash use decreased, and financing activities shifted to net cash usage due to loan repayments Cash Flow Summary | Metric (in thousands) | 2Q FY21 (Dec 25, 2020) | 2Q FY20 (Dec 27, 2019) | Change (in thousands) | | :-------------------- | :--------------------- | :--------------------- | :-------------------- | | Net cash provided by operating activities | $2,777 | $116 | $2,661 | | Net cash used by investing activities | $(2,157) | $(6,934) | $4,777 | | Net cash (used) provided by financing activities | $(2,520) | $9,220 | $(11,740) | | Net change in cash | $1,150 | $2,474 | $(1,324) | | Cash, end of period | $11,838 | $14,836 | $(2,998) | - Operating cash flow significantly improved, providing **$2.777 million** in the first two quarters of fiscal 2021, compared to **$0.116 million** in the prior year, despite a net loss[13](index=13&type=chunk) - Cash used in investing activities decreased by **$4.777 million**, mainly due to lower acquisitions of fixed assets[13](index=13&type=chunk) - Financing activities shifted from a net cash provider of **$9.220 million** to a net cash user of **$2.520 million**, primarily driven by net repayments of revolving loans[13](index=13&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=4&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These notes provide detailed disclosures on accounting policies, financial components, and significant events for the unaudited financial statements [A. Basis of Presentation](index=4&type=section&id=A.%20Basis%20of%20Presentation) The unaudited financial statements adhere to SEC rules, with no material impact from new FASB guidance, while other new guidance is under evaluation - The Company adopted ASU 2018-13 (fair value measurements) and ASU 2018-14 (defined benefit plans) effective July 1, 2020, with **no material impact** on financial statements or disclosures[16](index=16&type=chunk)[17](index=17&type=chunk) - The Company is currently evaluating the potential impact of new accounting guidance, including Topic 326 (expected credit losses), ASU 2019-12 (income taxes), and ASU 2020-04 (LIBOR discontinuation)[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) - The Company qualifies as a smaller reporting company and has scaled some disclosures in this report[21](index=21&type=chunk) [B. Inventories](index=5&type=section&id=B.%20Inventories) Total inventories increased slightly, primarily in finished parts and raw materials, from June 30, 2020, to December 25, 2020 Inventory Breakdown | Inventory Class | Dec 25, 2020 (in thousands) | Jun 30, 2020 (in thousands) | | :-------------- | :-------------------------- | :-------------------------- | | Finished parts | $63,563 | $62,394 | | Work in process | $17,771 | $17,844 | | Raw materials | $40,827 | $40,369 | | Total Inventories | $122,161 | $120,607 | - Total inventories increased by **$1.554 million** (**1.29%**) from June 30, 2020, to December 25, 2020[23](index=23&type=chunk) [C. Warranty](index=6&type=section&id=C.%20Warranty) The warranty reserve decreased due to lower current period expenses and reduced payments, despite a prior-year non-recurring charge Warranty Activity | Warranty Activity (in thousands) | Q2 FY21 (Dec 25, 2020) | Q2 FY20 (Dec 27, 2019) | 2Q FY21 (Dec 25, 2020) | 2Q FY20 (Dec 27, 2019) | | :------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Reserve balance, beginning of period | $4,682 | $7,107 | $4,460 | $3,736 | | Current period

Financial Data and Key Metrics Changes - Sales for the quarter were $48.4 million, down $11.1 million or 18.6% from the prior year second quarter, primarily due to the ongoing effects of the COVID-19 pandemic [11] - Gross profit margin for the second quarter was 19.6%, compared to 26.4% in the prior year second quarter, driven by reduced volume and unfavorable product mix [12] - Net loss for the second quarter was $4.3 million or $0.33 per diluted share, compared to a net loss of $6.5 million or $0.49 per diluted share in the prior year second quarter [15] Business Line Data and Key Metrics Changes - Transmission sales were down 28.7%, industrial sales down 8.2%, and marine and propulsion down 18.1% compared to the prior year second quarter [11] - Aftermarket parts, which typically have higher margins, saw a significant decline due to decreased activity, but trends began to reverse with improved incoming orders [7][8] Market Data and Key Metrics Changes - Sales in North America were down 35%, while sales in Europe were down 17%, and sales in the Asia-Pacific region were up 11% due to improving demand in Australia and stable demand in China [11] - Orders showed improvement in the quarter, with strong orders from the Veth subsidiary and good orders in Asia and Australia [8] Company Strategy and Development Direction - The company is focusing on diversification through growth in industrial markets outside of oil and gas, particularly with new products being developed at the Lufkin facility [21] - The strategy includes participation in hybrid and electrification projects, aiming to provide key components for these systems [21] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about improving order rates and backlog, particularly in aftermarket spare parts orders, with expectations for core markets to improve throughout the year [20] - The company anticipates that oil and gas activity may improve in the latter half of the year, but overall demand recovery is tied to the general economy post-COVID [20][53] Other Important Information - The company entered into a forbearance agreement with BMO, relieving it of the EBITDA covenant through September 30, 2021, while reducing maximum capacity to $42.5 million [17] - Inventory increased by $1.6 million due to currency translation, but there was a significant reduction in North American operations [18] Q&A Session Summary Question: Transition and ramp-up at Lufkin - Management indicated that Lufkin is expected to ship $1 million to $1.5 million per month initially, with potential growth capacity up to $30 million to $50 million depending on unit value [25][26] Question: Strategy for growing industrial sales - The strategy involves working with existing customers and new OEMs, focusing on hybrid and electrification solutions [27][31] Question: Backlog improvement in oil and gas - Management noted that backlog improvement includes unit demand in Asia and spare parts demand in North America, with expectations for gradual replacement orders [33] Question: ME&A expense leverage - Management indicated that as market conditions normalize, ME&A expenses will likely return, but sustainable reductions have been made [34] Question: Free cash neutrality and working capital - The company aims to maintain cash neutrality, with inventory supporting demand that can quickly convert to cash [37] Question: Update on Racine headquarters sale - There has been little activity regarding the sale, with one interested party but no significant updates [40] Question: Euro-denominated liabilities - The liabilities are primarily related to debt taken on during the acquisition of a subsidiary, which is euro-denominated [47] Question: Oil and gas segment specifics - Currently, about 20% of the transmission segment is oil and gas related, but this can exceed 50% during peak periods [49] Question: North American oil and gas impact on gross margin - North American oil and gas activity is a significant driver of gross margin, with expectations for improvement tied to market recovery [51] Question: Future of oil and gas cycles - Management believes that while the next cycle may not be as large as previous ones, there will still be a need for equipment replacement and maintenance [56][58]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended September 25, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 1-7635 Securities registered pursuant to Section 12(b) of the Exchange Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | ...

Twin Disc, Incorporated (NASDAQ:TWIN) Q4 2020 Earnings Conference Call October 30, 2020 11:00 AM ET Company Participants Stan Berger - President, SM Berger & Company John Batten - Chief Executive Officer Jeff Knutson - Vice President of Finance, Chief Financial Officer, Treasurer & Secretary Conference Call Participants Noah Kaye - Oppenheimer Josh Chan - Baird Barry Haimes - Sage Asset Management Operator Good day, and welcome to the Twin Disc Inc Fiscal First Quarter 2021 Earnings Conference Call. Today's ...

For the Fiscal Year Ended June 30, 2020 Commission File Number 1-7635 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (State or Other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification Number) 1328 Racine Street, Racine, Wisconsin 53403 (Address of Principal Executive Office) (Zip Code) Registrant's Telephone Number, including area code: (262) 638-4000 Securitie ...