Revenue was $43.9 million, including $6.1 million relating to our acquisition of Electrochem, compared to revenue of $44.5 million for the fourth quarter of 2023. Battery & Energy Products sales increased 11.7% to $39.9 million compared to $35.7 million last year reflecting the inclusion of Electrochem. Organic sales for this segment declined 5.3% as a 48.1% increase in government/defenses sales and a 1.6% increase in oil & gas market sales were offset by a 47.2% decrease in medical battery sales and a 4.4% ...

Core Viewpoint - Ultralife Corporation is set to report its fourth quarter results for the period ending December 31, 2024, on April 1, 2025, before market opening [1] Group 1: Financial Reporting - The fourth quarter results will be announced before the market opens on April 1, 2025 [1] - An investor conference call and webcast will be hosted by Ultralife's management at 8:30 AM ET on the same day [1] Group 2: Participation Details - Participants planning to join the conference call by phone must pre-register to ensure a reliable connection [2] - A live webcast of the conference call will be available on the company's website, with a replay accessible shortly after the call [3] Group 3: Company Overview - Ultralife Corporation provides products and services in power solutions, communications, and electronics systems, serving government, defense, and commercial customers globally [4] - The company is headquartered in Newark, New York, and operates in North America, Europe, and Asia, with business segments including Battery & Energy Products and Communications Systems [5]

Core Points - Ultralife Corporation will report its fourth quarter results for the period ending December 31, 2024, before the market opens on April 1, 2025 [1] - An investor conference call and simultaneous webcast will be hosted by Ultralife's Management at 8:30 AM ET on April 1, 2025 [1] Company Overview - Ultralife Corporation provides products and services ranging from power solutions to communications and electronics systems, serving government, defense, and commercial customers globally [4] - The company is headquartered in Newark, New York, and operates in North America, Europe, and Asia, with business segments including Battery & Energy Products and Communications Systems [5]

Core Points - Ultralife Corporation has filed a Form 12b-25 with the SEC for late filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 [1] - The delay is due to the need for completing the accounting close and financial audit of Electrochem Solutions, Inc., acquired on October 31, 2024 [2] - The company plans to file its Form 10-K by April 1, 2025, and will reschedule its earnings release and conference call originally set for March 11, 2025 [3] Company Overview - Ultralife Corporation provides a range of products and services including power solutions and communications systems, serving both government/defense and commercial customers globally [4] - The company operates in two main business segments: Battery & Energy Products and Communications Systems, with a presence in North America, Europe, and Asia [5]

Core Points - Ultralife Corporation will report its fourth quarter results for the period ending December 31, 2024, on March 11, 2025, before market opens, which is later than its usual reporting schedule due to the acquisition of Electrochem Solutions, Inc. [1] - An investor conference call and webcast will be held on March 11, 2025, at 8:30 AM ET [2] - Participants must pre-register for the conference call to ensure a reliable connection [3] - A live webcast will be available on the company's website, with a replay accessible shortly after the call [4] Company Overview - Ultralife Corporation provides products and services in power solutions, communications, and electronics systems, serving government, defense, and commercial customers globally [5] - The company is headquartered in Newark, New York, and operates in North America, Europe, and Asia, with business segments including Battery & Energy Products and Communications Systems [6]

Core Insights - Ultralife Corporation has appointed Jeffrey Luke as Chief Marketing Officer and James Pope as Senior Vice President - Sales & Business Development for Battery & Energy Products, effective January 6, 2025 [1][2][3] - The appointments are aimed at strengthening marketing and sales activities to support the company's long-term growth strategy and to commercialize transformational products in 2025 [3] Summary by Sections Leadership Appointments - Jeffrey Luke will be responsible for reframing corporate and brand strategies, ensuring alignment and accountability across the global organization [2] - James Pope will focus on expanding market reach and aligning global sales and business development efforts to maximize revenue and build strategic partnerships [3] Experience and Background - Jeffrey Luke brings over 20 years of B2B marketing experience across various sectors including genomics, agriculture, and energy [2] - James Pope has over 37 years of experience in the battery and power industry, covering all major segments including cell and pack manufacturing [3] Strategic Goals - The company aims to enhance its new product development pipeline and foster durable customer relationships to capitalize on growth opportunities [3] - The leadership changes are seen as critical for executing the company's ambitious growth goals as it enters 2025 [3] Company Overview - Ultralife Corporation provides products and services in power solutions, communications, and electronics systems, serving government, defense, and commercial customers globally [4] - The company operates in North America, Europe, and Asia, with business segments including Battery & Energy Products and Communications Systems [5]

Group 1 - Ultralife Corporation will present at The Benchmark Company's 13th Annual Discovery One-on-One Investor Conference on December 11, 2024, in New York City [1] - The conference provides a platform for emerging growth and dynamic publicly traded companies to engage with institutional and individual investors through one-on-one meetings [2] - Interested investors can schedule one-on-one meetings with Ultralife by submitting requests online via the provided registration link [3] Group 2 - Ultralife Corporation offers a range of products and services, including power solutions and communications systems, serving government/defense and commercial customers globally [4] - The company is headquartered in Newark, New York, and operates in North America, Europe, and Asia, with business segments that include Battery & Energy Products and Communications Systems [4]

Revenue Performance - Consolidated revenues for Q3 2024 were $35,694, a decrease of $3,794 or 9.6% from $39,488 in Q3 2023, with government/defense sales down 14.1% and commercial sales down 6.8%[107]. - Consolidated revenues for the nine-month period ended September 30, 2024, were $120,604, an increase of $6,508, or 5.7%, compared to $114,096 for the same period in 2023[128]. - Battery & Energy Products revenues increased by $9,951, or 10.6%, from $94,250 in the first nine months of 2023 to $104,201 in 2024, driven by a 42.8% increase in government/defense sales[129]. - Communications Systems revenues decreased by $3,443, or 17.3%, from $19,846 in the first nine months of 2023 to $16,403 in 2024, primarily due to order timing[130]. Profitability Metrics - Gross profit for Q3 2024 was $8,682, or 24.3% of revenue, compared to $9,774, or 24.8% of revenue in Q3 2023, reflecting a decline due to lower factory volume and product mix[108]. - Operating income for Q3 2024 was $511, or 1.4% of revenues, down from $2,135 or 5.4% of revenues in Q3 2023, attributed to revenue decline and increased expenses[110]. - Net income attributable to Ultralife Corporation was $258, or $0.02 per share, compared to $1,330, or $0.08 per share in Q3 2023[111]. - Adjusted EBITDA for Q3 2024 was $1,919, or 5.4% of revenues, down from $3,480, or 8.8% of revenues in Q3 2023[112]. - Gross margin improved from 24.4% in the first nine months of 2023 to 26.3% in 2024, reflecting higher factory volume and improved price realization[131]. - Net income attributable to Ultralife for the nine-month period ended September 30, 2024, was $6,118, or $0.37 per share, compared to $4,324, or $0.27 per share in 2023, with adjusted EPS increasing from $0.34 to $0.44[138]. Operating Expenses - Operating expenses rose to $8,171, an increase of $532 or 7.0% from $7,639 in Q3 2023, primarily due to investments in new product development and legal fees related to the acquisition of Electrochem Solutions, Inc.[109][121]. - Operating expenses for the nine-month period ended September 30, 2024, were $23,224, an increase of $1,252, or 5.7%, from $21,972 in 2023, attributed to higher sales commissions and investments in new product development[134]. - Operating expenses represented 22.9% of revenue in Q3 2024, compared to 19.3% in Q3 2023, indicating increased costs relative to revenue[121]. Research and Development - Research and development costs increased by $232 or 12.4% to $2,101 in Q3 2024, reflecting aggressive pursuit of government/defense programs and commercial opportunities[121]. - Research and development costs increased by $175, or 3.1%, to $5,854 for the nine-month period ended September 30, 2024, reflecting higher investments in new product development[135]. Cash Flow and Financing - Cash generated from operations for the nine months ended September 30, 2024, was $13,590, a significant improvement from cash used in operations of $503 in the same period of 2023[151]. - As of September 30, 2024, total cash was $6,774, down from $10,278 at December 31, 2023, primarily due to a $17,712 reduction in outstanding debt[150]. - Cash used in investing activities for the nine months ended September 30, 2024, was $1,326, mainly for capital expenditures related to new product manufacturing[152]. - The company had $3,368 in outstanding borrowings on the Revolving Credit Facility and $4,667 on the Term Loan Facility as of September 30, 2024[156]. - Interest and financing expense decreased by $339, or 23.4%, from $1,450 in the first nine months of 2023 to $1,111 in 2024, due to reduced debt levels[136]. Tax and Other Considerations - The effective tax rate decreased to 20.9% for the nine-month period in 2024 from 28.1% in 2023, primarily due to the geographic mix of operating results[137]. - Non-recurring acquisition costs for the three months ended September 30, 2024, amounted to $250[146]. - The company filed a new shelf registration statement on March 29, 2024, to replace the previous one, registering securities in an aggregate amount of $100,000,000[155]. Future Outlook - The company expects positive operating cash flow and sufficient availability under its Revolving Credit Facility to meet general funding requirements in the foreseeable future[154].

Financial Data and Key Metrics Changes - Consolidated revenues totaled $35.7 million, down from $39.5 million in Q3 2023, representing a decline of 9.6% [12] - Operating income was $0.5 million, resulting in $0.02 EPS, compared to net income of $1.3 million or $0.08 per share in the prior year [22] - Consolidated gross profit was $8.7 million, down 11.2% year-over-year, with a gross margin of 24.3%, a decline of 50 basis points from 24.8% [16] - Operating expenses increased by 7% to $8.2 million, leading to an operating margin of 1.4%, down from 5.4% in Q3 2023 [20] Business Line Data and Key Metrics Changes - Battery & Energy Products segment revenues were $32.5 million, up from $31.9 million last year, with a 1.9% increase [12] - Communication Systems segment revenues declined 58.2% to $3.2 million, primarily due to large shipments in the previous year [14] - Sales to government defense customers increased by 28.9%, while medical battery and industrial market sales decreased by 12.4% and 10.9%, respectively [12][13] Market Data and Key Metrics Changes - The sales split between commercial and government defense for the battery business was 69-31, compared to 78-22 for the full year 2023, indicating a shift towards government defense demand [13] - The domestic to international sales split was 56-44, up from 49-51 in 2023, reflecting increased domestic demand for U.S. government defense products [13] Company Strategy and Development Direction - The company is focusing on three major initiatives: material cost deflation, lean productivity, and sales funnel improvement [9][28] - The acquisition of Electrochem is seen as a strategic move to enhance product offerings and operational synergies, with expected integration activities to complete in the first half of 2025 [41][42] - The company aims to expand its product portfolio in both Battery & Energy and Communication Systems segments, with ongoing development of new products targeting various markets [31][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the supply chain and order delays, attributing them to a mix of factors, including customer pushouts and material availability [44][46] - The backlog at the end of Q3 was $78 million, reflecting a return to more normalized order flow post-COVID [15][70] - Management expressed optimism about future growth opportunities, particularly in the thin cell and Thionyl Chloride product lines, with several projects in the qualification phase [36][39] Other Important Information - The company reduced its debt by $4.1 million, or 33.4%, from $12.1 million at the end of Q2 to $8.0 million [23] - Inventory increased by $2.6 million, or 6.3%, due to delays in receiving certain purchase orders [24] - The company plans to file an amended Form 8-K by January 16, 2025, including audited financial statements for Electrochem [25][64] Q&A Session Summary Question: How much of the headwinds in Battery & Energy Products were due to supply chain versus order delays? - Management indicated it was almost a 50-50 split between supply chain issues and order delays [44] Question: Was the delay related to any specific industry? - The delays were broad-based, affecting medical customers and Communication Systems orders [46] Question: What is the size of the order that was pushed from Q3 to Q4? - The order was just under $2.5 million for the Communication Systems business [59] Question: Were there other bidders for the Electrochem acquisition? - Yes, there were other bidders, but the company was able to execute the transaction within the desired timeline [60] Question: Will the upcoming disclosure for Electrochem include year-to-date results? - The disclosure will include audited financial statements for 2023, but not for year-to-date 2024 as it was not previously audited [62][64] Question: What made the company decide to acquire Electrochem? - The acquisition filled a gap in the company's portfolio, particularly in Thionyl Chloride chemistry, which the company had been targeting for years [72]

Financial Performance - Sales for Q3 2024 were $35.7 million, a decrease of 9.6% from $39.5 million in Q3 2023, with Battery & Energy Products sales growing 1.9% to $32.5 million, while Communications Systems sales fell 58.2% to $3.2 million[1][2] - Gross profit was $8.7 million, representing 24.3% of revenue, compared to $9.8 million or 24.8% of revenue in Q3 2023[1][3] - Operating income decreased to $0.5 million, down from $2.1 million in the same quarter last year, resulting in an operating margin of 1.4% compared to 5.4%[1][5] - Net income was $0.3 million, or $0.02 per diluted share, compared to $1.3 million or $0.08 per diluted share in Q3 2023[1][5] - Adjusted EBITDA for Q3 2024 was $1.9 million, or 5.4% of sales, down from $3.5 million, or 8.8% of sales, in the prior year[1][6] - Total revenues for the three-month period ended September 30, 2024, were $35,694, a decrease of 9.0% compared to $39,488 for the same period in 2023[13] - Operating income for the three-month period ended September 30, 2024, was $511, a decline of 76.1% compared to $2,135 in the same period last year[13] Backlog and Debt - Total backlog at the end of Q3 2024 was $78.0 million[2] - Debt was reduced by $4.1 million, or 33.4%, to $8.0 million from $12.1 million at the end of Q2 2024, marking a total reduction of $17.2 million, or 68.2%, over the last two quarters[1] Expenses and Investments - Operating expenses increased to $8.2 million, or 22.9% of revenue, compared to $7.6 million, or 19.3% of revenue, in Q3 2023, reflecting investments in new product development and acquisition-related costs[1][4] - Total operating expenses for the three-month period ended September 30, 2024, were $8,171, an increase of 7.0% from $7,639 in the same period last year[13] - Research and development expenses increased to $5,854 for the nine-month period ended September 30, 2024, from $5,679 in the same period last year, marking a rise of 3.1%[13] Acquisition - The acquisition of Electrochem Solutions, Inc. was completed on October 31, 2024, with plans to implement integration strategies to enhance operational leverage and revenue growth[1] Product Performance - Battery & Energy Products gross margin improved by 50 basis points to 24.7%, while Communications Systems gross margin decreased to 20.1% due to lower production volume[1][3] - Battery & Energy Products revenue increased to $32,529 for the three-month period ended September 30, 2024, from $31,919 in the same period last year, representing a growth of 1.9%[13] Year-to-Date Performance - Gross profit for the nine-month period ended September 30, 2024, was $31,715, up 14.0% from $27,798 for the same period in 2023[13] - Net income attributable to Ultralife Corporation for the nine-month period ended September 30, 2024, was $6,118, an increase of 41.6% from $4,324 for the same period in 2023[16] - Adjusted EBITDA for the nine-month period ended September 30, 2024, was $12,577, compared to $10,931 for the same period in 2023, reflecting a growth of 15.1%[15] - The company reported a net income per share attributable to Ultralife common shareholders of $0.37 for the nine-month period ended September 30, 2024, compared to $0.27 for the same period in 2023, an increase of 37.0%[16] - The weighted average shares outstanding for the nine-month period ended September 30, 2024, were 16,530, compared to 16,172 for the same period in 2023, indicating an increase of 2.2%[16]