TechPrecision .(US:TPCS)2019-02-13 21:17Financial Performance - For the nine months ended December 31, 2018, net sales were $12.0 million, a decrease of 8.5% from $14.1 million for the same period in 2017[88]. - For the three months ended December 31, 2018, net sales increased by $0.6 million, or 17%, to $4.3 million compared to the same period in 2017, primarily due to higher volumes of defense customer contracts[102]. - Net sales for the nine months ended December 31, 2018 were $11.99 million, a decrease of $2.1 million or 15% compared to $14.06 million for the same period in 2017[111]. Profitability - Gross margin for the nine months ended December 31, 2018, was 26.0%, compared to 25.6% for the same period in 2017[88]. - Gross profit for the three months ended December 31, 2018, was $1.0 million, an increase of $0.6 million from $0.4 million in the same period in 2017[104]. - Gross profit for the nine months ended December 31, 2018 was $3.12 million, down $0.48 million or 13% from $3.60 million for the same period in 2017[113]. - Income before income taxes for the three months ended December 31, 2018, was $253,000, compared to a loss of $278,000 in the same period in 2017[101]. - Net income for the three months ended December 31, 2018, was $218,000, a significant improvement from a loss of $691,000 in the same period in 2017[101]. - For the three months ended December 31, 2018, net income was $218,022 compared to a net loss of $691,391 for the same period in 2017[108]. Expenses - Selling, general, and administrative expenses for the three months ended December 31, 2018, increased by approximately $36,000, or 6.0%, compared to the same period in 2017[105]. - Total SG&A expenses for the nine months ended December 31, 2018 decreased by approximately $0.1 million compared to the same period in 2017[114]. - Interest expense for the nine months ended December 31, 2018 was $230,310, a decrease of $31,096 or 12% from $261,406 in 2017[115]. - Tax expense for the nine months ended December 31, 2018 was $177,104, down from $946,247 for the same period in 2017, primarily due to a lower federal statutory tax rate[116]. Cash Flow and Working Capital - Cash provided by operating activities for the nine months ended December 31, 2018 was $120,876, compared to $1.3 million for the same period in 2017[120]. - Cash and cash equivalents at December 31, 2018 were $1.84 million, down from $2.69 million at March 31, 2018[119]. - Working capital increased to $5.4 million at December 31, 2018 from $4.9 million at March 31, 2018[118]. Backlog and Customer Concentration - The sales order backlog at December 31, 2018, was approximately $14.1 million, compared to $14.0 million at March 31, 2018[87]. - The largest customer accounted for approximately 36% of reported net sales for the nine months ended December 31, 2018[87]. EBITDA - EBITDA for the nine months ended December 31, 2018 was $1.57 million, a decrease of $0.31 million compared to $1.88 million for the same period in 2017[126]. Cost of Sales - Cost of sales for the three months ended December 31, 2018, was $3.3 million, which includes $1.8 million associated with the adoption of ASC 606[104].