Innovative Solutions and Support(ISSC)2024-12-19 21:49Financial Performance - Fourth quarter net revenue was 47.2 million, representing a 35.6% increase compared to the previous year[4] - Fourth quarter gross profit was 13.7 million, up 42.5% from the prior year[4] - Total net sales for the three months ended September 30, 2024, reached 12,992,596 in the same period of 2023[30] - Gross profit for the three months ended September 30, 2024, was 8,112,471 for the same period in 2023, reflecting a gross margin improvement[30] - Operating income increased to 3,652,599 in the prior year, indicating a 19.5% growth[30] - Net income for the three months ended September 30, 2024, was 2,634,622 in the same period of 2023, representing a 20.7% increase[30] - Adjusted EBITDA for the twelve months ended September 30, 2024, was 9,593,262 for the same period in 2023, indicating a 42.5% increase[31] Cash Flow and Debt - Cash flow from operations for fiscal 2024 was 2.1 million in the previous year[15] - Free cash flow increased to 1.8 million in the same period last year[15] - Total debt as of September 30, 2024, was 27.5 million[14] - Long-term debt increased to 17,500,000 in the previous year, reflecting a 60.0% rise[29] - The leverage ratio improved to 1.3x as of September 30, 2024, down from 2.0x in the previous year, indicating a stronger balance sheet[31] Orders and Growth Strategy - New orders in the fourth quarter totaled 74.3 million of backlog from recent acquisitions[13] - The company aims to continue growth in retrofit markets and pursue strategic acquisitions to enhance its advanced avionics capabilities[5] Research and Development - Research and development expenses for the three months ended September 30, 2024, were 741,579 in the same period of 2023, showing a 49.2% increase[30] - The company plans to launch the next generation Utility Management System (UMS2) in 2025, which will feature AI capabilities[7]