Espey(ESP) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended December 31, 2024, increased to $13,608,740, a 32.3% rise from$ 10,302,541 in the same period of 2023[10] - Gross profit for the six months ended December 31, 2024, was $5,964,594, compared to$ 5,387,952 for the same period in 2023, reflecting a 10.7% increase[10] - Net income for the three months ended December 31, 2024, was $1,908,499, up from$ 1,795,370 in 2023, representing a 6.3% growth[10] - Net income for the six months ended December 31, 2024, was $3,506,816, compared to$ 2,889,914 for the same period in 2023, representing an increase of approximately 21.4%[20] - Total revenue recognized for the six months ended December 31, 2024, was $17,500,184, a 19.3% increase from$ 14,642,694 in the same period of 2023[45] - Total comprehensive income for the six months ended December 31, 2024, was $3,505,276, compared to$ 2,895,331 for the same period in 2023, indicating an increase of about 21.1%[20] Assets and Equity - Total assets as of December 31, 2024, amounted to $60,191,285, an increase from$ 56,542,931 as of June 30, 2024[8] - Total stockholders' equity increased to $44,816,645 as of December 31, 2024, compared to$ 41,273,972 as of June 30, 2024, marking an increase of 8.3%[8] - The balance of stockholders' equity as of December 31, 2023, was $38,223,829, up from$ 35,879,758 as of June 30, 2023, reflecting an increase of approximately 6.5%[17] - As of December 31, 2024, total investment securities amounted to $20,264,567, with a gross unrealized gain of$ 9,794 and gross unrealized losses of $3,459[24] Cash and Liquidity - Cash and cash equivalents rose to$ 8,027,478 as of December 31, 2024, compared to $4,351,970 as of June 30, 2024, indicating a significant liquidity improvement[8] - Cash and cash equivalents at the end of the period on December 31, 2024, were$ 8,027,478, up from $3,602,933 at the end of December 31, 2023, indicating a significant increase of approximately 122.5%[20] - Net cash provided by operating activities for the six months ended December 31, 2024, was$ 6,766,541, compared to $5,939,155 for the same period in 2023, representing an increase of about 14.0%[20] Dividends and Stock Compensation - Dividends per share increased to$ 0.25 for the three months ended December 31, 2024, up from $0.15 in the same period of 2023[10] - Dividends paid on common stock for the six months ended December 31, 2024, were$ 1,279,061, compared to $741,895 for the same period in 2023, showing an increase of approximately 72.3%[20] - Stock-based compensation increased to$ 193,033 for the six months ended December 31, 2024, compared to $131,155 for the same period in 2023, reflecting a rise of about 47.2%[20] - ESOP compensation expense for the three-month period ended December 31, 2024, was$ 163,067, compared to $94,175 for the same period in 2023, representing a 73.3% increase[52] Liabilities and Obligations - Total current liabilities remained stable at$ 15,374,640 as of December 31, 2024, compared to $15,268,959 as of June 30, 2024[8] - The recorded termination withdrawal obligation related to the pension plan was$ 561,852 as of December 31, 2024, down from $772,157 in June 2024[40] - Contract liabilities rose to$ 9.88 million as of December 31, 2024, compared to $9.04 million as of June 30, 2024, indicating an increase of 9.2%[47] Backlog and Future Expectations - The company's backlog as of December 31, 2024, was approximately$ 120.1 million, with an estimated recognition of 16.6% in 2025 and 37.4% in 2026[48] - The Company was awarded $7.4 million in funding for facility and capital equipment upgrades, with completion expected in the first quarter of calendar year 2025[39] - The Company was awarded an additional$ 3.4 million in funding in December 2024, expected to be in force through calendar year 2026[41]