Taylor Devices(TAYD) - 2025 Q1 - Quarterly Report

Financial Performance - Net revenues for the three months ended August 31, 2024, increased by 17% to $11,618,000 compared to $9,924,000 for the same period in 2023[31]. - Gross profit for the same period was $5,504,000, representing a 26% increase from $4,385,000 in the prior year, with a gross margin of 47%[31][32]. - Operating income improved to $2,905,000 for the three months ended August 31, 2024, compared to $1,920,000 in the same period last year[35]. Expenses - Research and development costs decreased by 47% to $69,000, down from $129,000 in the previous year, accounting for 0.6% of net revenues[34]. - Selling, general, and administrative expenses rose by 8% to $2,530,000, representing 22% of net revenues, primarily due to increased employee compensation costs[34]. - Accrued expenses decreased by 49% from the prior year-end to $2,396,000 due to the payout of fiscal year 2024 incentive compensation[46]. Sales and Orders - The company had 118 open sales orders in backlog with a total sales value of $28.4 million as of August 31, 2024, compared to 131 orders valued at $28.3 million a year earlier[32]. - Total sales to Asia increased by 38% compared to the prior year, while sales to aerospace/defense customers rose by 20%[31]. - The company's backlog of sales orders decreased to $28.4 million from $33.1 million at the end of the prior year[45]. Accounts and Inventory - Accounts receivable increased by 30% to $6,780,000, with an average days sales outstanding (DSO) rising from 39 days to 53 days[41]. - Inventory as of August 31, 2024, was $8,154,000, an increase of 9% from $7,512,000 at the prior year-end[38]. - Accounts payable as of August 31, 2024, is $1,848,000, which is 28% higher than the prior year-end[46]. Capital and Projects - Capital expenditures for the three months ended August 31, 2024, were $247,000, down from $428,000 in the same period last year[36]. - The number of projects in progress increased from 14 to 15 between May 31, 2024, and August 31, 2024[42]. - The aggregate percent complete for projects in progress increased from 53% to 58% between May 31, 2024, and August 31, 2024[45]. - The average total sales value of projects in progress is $2,043,000 as of August 31, 2024[45]. Balances - The balance of CIEB as of August 31, 2024, is $4,333,000, which is 1% lower than the prior year-end balance[42]. - The balance of BIEC at August 31, 2024, is $2,984,000, down 47% from $5,601,000 at the end of the prior year[42]. - 34% of the CIEB balance was billed to customers in the quarter ended August 31, 2024[42]. - The percentage of total value invoiced to customers remained stable at 56%[45].