Taylor Devices(US:TAYD)2024-08-15 11:27Financial Performance - For the year ended May 31, 2024, net revenue increased by 11% to $44,583,000 compared to $40,199,000 in the previous year[46]. - Net income for the year ended May 31, 2024 rose by 43% to $2,711,000, up from the previous year's figure[44]. - The gross profit margin improved to 47% in the year ended May 31, 2024, compared to 42% in the prior year[48]. - Operating income improved significantly to $9,479,000 for the year ended May 31, 2024, compared to $6,809,000 in the prior year, attributed to reduced R&D costs and better gross margin performance[53]. - Other income rose by 104% due to increased interest income from higher short-term investments[53]. Revenue Sources - Revenue from long-term projects increased by 8% year-over-year, while revenue from non-projects rose by 15%[46]. - Sales to aerospace/defense customers surged by 71%, while sales to structural customers dropped by 30%[47]. - Total sales in the U.S. increased by 18% from the prior year, while sales to Asia decreased by 55%[48]. Expenses and Costs - Research and development costs decreased by 65% to $388,000 from $1,097,000 in the prior year, primarily due to the completion of the Taylor Damped Moment Frame™ project[52][53]. - Selling, general and administrative expenses increased by 21% to $10,971,000 from $9,043,000, mainly driven by higher personnel costs[52][53]. - The provision for potential inventory obsolescence was $386,000 for the year ended May 31, 2024, compared to $295,000 in the previous year[37]. Assets and Liabilities - The company had a total sales order backlog valued at $33.1 million as of May 31, 2024, compared to $32.5 million a year earlier[49]. - Inventory increased by 26% to $7,512,000, with 85% classified as work in process[59]. - Accounts receivable decreased by 6% to $5,212,000, while costs and estimated earnings in excess of billings increased by 6% to $4,357,000[63][65]. - Billings in excess of costs and estimated earnings surged by 181% to $5,601,000 from $1,992,000 in the prior year[68]. Tax and Deferred Assets - The deferred tax asset balance increased by 38% to $2,176,000 as of May 31, 2024, requiring approximately $10.4 million of taxable income to realize[42]. - The effective tax rate for the fiscal year ended May 31, 2024, was 18%, up from 16% in the prior year[53]. Capital Expenditures - Capital expenditures decreased to $1,149,000 from $3,359,000 in the prior year, with commitments for future capital expenditures of approximately $1,360,000[57]. Corporate Governance and Compliance - The Company has filed certifications from the Chief Executive Officer and Chief Financial Officer, ensuring compliance with regulatory requirements[81]. - The Company has a policy relating to the recovery of erroneously awarded compensation, reflecting governance and accountability measures[83]. - The Company has incorporated various stock option plans and agreements, indicating ongoing employee incentive strategies[79]. Future Outlook and Meetings - The company expects sufficient cash on hand, cash flows from operations, and borrowing capacity to fund ongoing operations and capital improvements for the next twelve months[60]. - The Company will hold its Annual Meeting of Shareholders on October 25, 2024, with proxy materials to be filed within 120 days after the fiscal year end[75]. Financial Reporting - Consolidated Balance Sheets as of May 31, 2024, and 2023 will be included in the financial statements[77]. - Consolidated Statements of Income for the years ended May 31, 2024, and 2023 will be presented, providing insights into revenue and profit trends[77]. - The financial statements will include Inline XBRL interactive data files, enhancing data accessibility and analysis[83]. - The financial reports will provide detailed notes to the consolidated financial statements, offering further insights into financial performance and position[77].