inTEST (US:INTT)2025-03-07 11:35Financial Performance - Fourth quarter 2024 revenue reached $36.6 million, a 31.3% increase year-over-year[4] - Operating income for the fourth quarter grew 87.5% to $2.1 million, representing 5.7% of sales[4] - Net earnings increased 3.4% to $1.5 million, with adjusted net earnings rising 45.7% to $2.8 million[4] - Gross margin for the fourth quarter was 39.7%, impacted by a 430 basis point reduction due to a one-time inventory step-up expense[4] - Total revenue for 2024 was $130.7 million, a 6.0% increase from 2023, with Alfamation contributing $25.0 million[13] - Revenue for the fourth quarter of 2024 increased by 31% year-over-year, reaching $36,603,000 compared to $27,884,000 in the fourth quarter of 2023[50] - Adjusted net earnings for the fourth quarter of 2024 were $2,782,000, up from $1,910,000 in the fourth quarter of 2023[55] - Earnings per diluted share for the fourth quarter of 2024 were $0.23, compared to $0.16 in the same quarter of the previous year[55] - Total revenue for the year ended December 31, 2024, was $130,690 million, compared to $123,302 million in 2023[56] Orders and Backlog - Orders improved 11% year-over-year to $30.7 million, with backend semi orders up 18% year-over-year[4] - Fourth quarter 2024 orders reached $30.7 million, an increase of 11% year-over-year and 9% sequentially[17] - Backlog at December 31, 2024, was $39.5 million, with approximately 50% expected to ship beyond Q1 2025[18] - Total orders for the year ended December 31, 2024, were $107,704,000, a decrease of 7.7% from $116,632,000 in 2023[49] - The Semiconductor segment saw orders of $44,574,000 for the year, representing a 24.8% decline from $59,297,000 in 2023[49] - The Auto/EV segment experienced significant growth, with orders increasing by 90.2% to $19,390,000 from $10,193,000 year-over-year[49] Cash Flow and Debt - The company generated $3.8 million in cash from operations in 2024 and paid down $7.8 million in debt[4] - Cash and cash equivalents at the end of Q4 2024 were $19.8 million, with total debt reduced to $15.0 million[15] - The company’s cash and cash equivalents decreased to $19.8 million at the end of 2024, down from $45.3 million at the end of 2023[41] - The company reported a net cash provided by operating activities of $3.8 million for 2024, a decrease from $16.2 million in 2023[44] Market Segments - Alfamation contributed $8.5 million in revenue during the fourth quarter, primarily from the automotive/EV market[10] - inTEST's revenue from the Auto/EV market skyrocketed by 199.6% year-over-year, reaching $11.9 million in Q4 2024[47] - The Defense/Aerospace segment also saw significant growth, with revenue increasing by 113.5% to $5.2 million in Q4 2024[47] - The Environmental Technologies segment generated revenue of $7,063,000 in Q4 2024, slightly up from $7,623,000 in Q4 2023[51] Strategic Initiatives - The company plans to consolidate operations in the Netherlands, expecting $0.6 million in restructuring costs and $0.5 million in annualized savings starting in 2026[5] - Capital expenditures for 2025 are planned to be approximately 1% to 2% of revenue[19] - The effective tax rate for 2025 is expected to be around 18%[19] - The company made a strategic acquisition in 2024, resulting in a net cash payment of $18.7 million[44] Financial Ratios and Metrics - Adjusted EBITDA for Q4 2024 was $4,412 million, with an adjusted EBITDA margin of 12.1%[56] - Net earnings for the year ended December 31, 2024, were $2,891 million, with a net margin of 2.2%[56] - Adjusted EBITDA for the year ended December 31, 2024, was $10,818 million, down from $15,807 million in 2023[56] - Income tax expense for Q4 2024 was $298 million, compared to $111 million in Q4 2023[56] - Stock-based compensation for the year ended December 31, 2024, was $1,857 million, down from $2,047 million in 2023[56] - Net interest expense for Q4 2024 was $109 million, compared to a net interest income of $(340) million in Q3 2024[56]