Innovative Solutions and Support(ISSC) - 2024 Q3 - Quarterly Results

Financial Performance - Net revenue for Q3 2024 was $11.8 million, representing a 47.8% increase year-over-year[2] - Gross profit reached $6.3 million, up 32.6%, with a gross margin of 53.4%[2][5] - Net income was $1.6 million, or $0.09 per diluted share; adjusted net income was $1.9 million, or $0.11 per diluted share[2] - Adjusted EBITDA for Q3 2024 was $3.1 million, a 61% increase from the previous year, with an adjusted EBITDA margin of 26.1%[2][6] - Total net sales for the three months ended June 30, 2024, were $11,765,635, a 47.5% increase from $7,959,208 in the same period last year[20] - Adjusted EBITDA for the three months ended June 30, 2024, was $3,075,926, representing a 73.5% increase from $1,911,387 in the same period last year[21] - Net income for the nine months ended June 30, 2024, was $3,818,186, up from $3,393,133 in the same period last year, indicating a 12.5% growth[20] - Basic net income per common share for the three months ended June 30, 2024, was $0.09, up from $0.08 in the same period last year[20] Cash Flow and Debt - Year-to-date free cash flow increased to $4.8 million, up from $0.8 million in the same period last year[2][8] - Total debt as of June 30, 2024, was $9.9 million, with net leverage reduced to 0.8x from 2.1x at the end of Q4 2023[8] - Cash and availability under the credit line increased to approximately $21 million as of June 30, 2024[4][8] - The company reported a net leverage ratio of 0.8x for the three months ended June 30, 2024, down from 2.6x in the same period last year[24] - Operating cash flow for the nine months ended June 30, 2024, was $5,350,891, compared to $937,925 in the same period last year[23] Operating Expenses and R&D - Operating expenses were $4.2 million, representing 36.1% of revenue, down from 40.8% in the same period last year[6] - Research and development expenses for the three months ended June 30, 2024, increased to $1,099,367 from $851,296 in the same period last year, a rise of 29.1%[20] Shareholder Equity and Liabilities - Total shareholders' equity increased to $43,181,125 as of June 30, 2024, from $38,636,984 as of September 30, 2023[19] - The company’s total current liabilities as of June 30, 2024, were $16,152,889, compared to $6,398,959 as of September 30, 2023[18] Future Outlook - The company anticipates continued growth opportunities in fiscal 2025 from the integration of Honeywell product lines[4][16] Orders and Backlog - New orders in Q3 2024 totaled $10.6 million, with a backlog of $9.3 million as of June 30, 2024[7] Gross Profit - Gross profit for the nine months ended June 30, 2024, was $17,385,346, compared to $13,198,600 for the same period in 2023, reflecting a 31.5% increase[20]