Financial Performance - Net sales for Q3 2024 were 33.4 million in Q3 2023[5] - The company reported a net loss of 0.27 per diluted share, compared to a net income of 0.44 per diluted share in Q3 2023[5] - Adjusted EBITDA for Q3 2024 was 1.6 million in Q3 2023[5] - Gross profit decreased by 27.9% to 5.3 million in Q3 2023[5] - Net income for the three months ended September 30, 2024, was 2,522 thousand in the same period of 2023[12] - Adjusted EBITDA for the nine months ended September 30, 2024, was 4,815 thousand in the same period of 2023, indicating a decline of 43.9%[13] - The company reported a gross profit margin of 14.9% for Q3 2024, down from 16.6% in Q4 2023[15] Operational Changes - The company is consolidating facilities and moving programs to lower-cost, higher-margin locations to improve efficiency and reduce costs[3] - The restructuring of back office and plant operations aims to enhance service delivery and product quality[3] - Management expressed optimism about the customer pipeline and the future growth of the company despite current headwinds[3] - The company is focused on strengthening customer relationships as a key strategy for achieving long-term objectives[3] Financial Position - Total current assets increased to 58,793 thousand at December 31, 2023, reflecting a growth of 2.5%[11] - Total liabilities rose to 39,783 thousand at December 31, 2023, marking an increase of 3.8%[11] - The current portion of finance lease obligations increased to 356 thousand, reflecting a rise of 38.1%[11] Cash Flow - Cash and cash equivalents at the end of the period were 1,121 thousand at the end of September 2023[12] - Net cash used in operating activities was 2,181 thousand provided in the same period of 2023[12] - Proceeds from the line of credit amounted to 95,783 thousand in Q3 2023, showing an increase of 3.3%[12] Backlog and Demand - The 90-day backlog as of September 30, 2024, was 4.5 million in Q3 2024 compared to 267 thousand in retention bonuses and other expenses related to the closure of its Blue Earth facility, impacting adjusted EBITDA[14]
Nortech Systems(NSYS) - 2024 Q3 - Quarterly Results