BK Technologies(BKTI) - 2019 Q2 - Quarterly Report

Financial Performance - For Q2 2019, net sales totaled approximately $13.3 million, a decrease of 2.7% compared to $13.7 million in Q2 2018[47] - Sales for the six months ended June 30, 2019, were approximately $20.9 million, down 17.6% from $25.4 million in the same period last year[44] - Net loss for Q2 2019 was approximately $247,000 ($0.02 per share), compared to net income of approximately $947,000 ($0.07 per share) in Q2 2018[46] - The company recorded a net loss of approximately $1.6 million for the six months ended June 30, 2019, compared to net income of approximately $503,000 for the same period last year[57] Profitability Metrics - Gross profit margin for Q2 2019 was approximately 42.9%, slightly down from 43.1% in Q2 2018, but improved from 31.9% in Q1 2019[49] - For the six-month period ended June 30, 2019, gross profit margin decreased to 38.9% from 42.2% in the same period last year[44] - Operating income for Q2 2019 was approximately $20,000, or 0.2% of sales, down from $1.3 million, or 9.7% of sales in Q2 2018[52] Expenses - Selling, general and administrative expenses for Q2 2019 were approximately $5.7 million, representing 42.7% of sales, compared to $4.6 million (33.3% of sales) in Q2 2018[44] - Engineering and product development expenses for Q2 2019 exceeded those of the comparable period last year, indicating increased investment in new product development[44] - Engineering and product development expenses for Q2 2019 totaled approximately $3.1 million, or 23.3% of total sales, compared to $1.9 million, or 13.8% of total sales in Q2 2018[50] - General and administrative expenses for Q2 2019 were approximately $1.3 million, or 9.8% of total sales, up from $1.0 million, or 7.5% of total sales in Q2 2018[50] Cash Flow and Working Capital - For the six months ended June 30, 2019, net cash used in operating activities was approximately $1.3 million, compared to cash provided of approximately $0.7 million in the same period last year[57] - As of June 30, 2019, working capital totaled approximately $17.1 million, down from approximately $21.0 million as of December 31, 2018[46] - As of June 30, 2019, the company had a cash and cash equivalents balance of approximately $7.4 million[59] Other Financial Information - The company recognized an unrealized loss of approximately $148,000 on its investment in 1347 Property Insurance Holdings, Inc. for Q2 2019[53] - The Credit Facility provides a maximum borrowing availability of $1.0 million, with no outstanding borrowings as of June 30, 2019[59] - The company expects its effective tax rate for 2019 to be comparable to last year, with net deferred tax assets totaling approximately $3.7 million as of June 30, 2019[54] - The company experienced a 73.9% increase in sales from Q1 2019 to Q2 2019, attributed to improved orders from federal government customers[47]