Twin Disc(TWIN)2025-02-05 13:30Sales Performance - Sales for the fiscal 2025 second quarter increased 23.2% year-over-year to $89.9 million, driven by a $10.0 million incremental benefit from Katsa Oy[5] - Organic sales increased 10.1%, attributed to strength in the Marine and Propulsion Systems and Industrial product segments[5] - Organic net sales for the quarter were $79,579,000, up from $72,243,000 in the same quarter of 2023, indicating a growth of approximately 10.5%[26] Profitability - Gross profit increased 5.0% to $21.7 million, while gross margin decreased approximately 420 basis points to 24.1% due to inventory write-downs and unfavorable product mix[7] - EBITDA increased 13.5% year-over-year to $6.3 million, reflecting solid operational performance[10] - EBITDA for the quarter was $6,262,000, compared to $5,519,000 in the prior year, representing an increase of about 13.5%[22] - The company reported a net loss of $1,673,000 for the quarter, compared to a net loss of $148,000 in the same quarter of 2023[30] Expenses and Liabilities - Marketing, engineering and administrative expenses increased by 9.9% to $18.9 million, primarily due to the addition of Katsa[8] - Depreciation and amortization expenses increased to $6,534,000 from $5,023,000, reflecting a rise of about 30%[30] - Current liabilities increased to $102,658,000 from $99,516,000, showing a growth of approximately 2.2%[28] Cash Flow and Debt - Cash decreased 24.3% to $15.9 million, while total debt increased 40.5% to $24.9 million, primarily due to the Katsa acquisition[11] - Total debt increased to $24,873,000 as of December 27, 2024, from $17,698,000 in the prior year, while net debt rose to $8,967,000 from a net cash position of $(3,323,000)[24] - Cash and cash equivalents decreased to $15,906,000 from $21,021,000 year-over-year, indicating a decline of approximately 24.5%[28] Order Backlog and Market Outlook - The backlog of orders to be shipped over the next six months is approximately $124.0 million, supported by strong ongoing order activity[11] - The industrial segment has started to recover, with improving order rates through the quarter[3] - The company aims to enhance its business and explore additional growth opportunities while focusing on hybrid and electric solutions[4] Dividends and Assets - The company paid dividends of $1,136,000 during the quarter, compared to $560,000 in the same quarter of the previous year, marking an increase of 102.9%[30] - Total assets decreased to $307,360,000 from $312,058,000, reflecting a decline of about 1.5%[28] Net Income - Net income attributable to Twin Disc was $0.9 million, or $0.07 per diluted share, consistent with the prior year[10] - Net income attributable to Twin Disc for the quarter ended December 27, 2024, was $919,000, compared to $930,000 for the same period in 2023, reflecting a slight decrease[22]