Taylor Devices(TAYD) - 2025 Q3 - Quarterly Report

Financial Performance - Net revenue for the nine months ended February 28, 2025 decreased by $1,786,000, or 5%, compared to the same period in the prior year[34]. - Gross profit for the nine months ended February 28, 2025 was $13,919,000, representing a gross margin of 45%, down from 46% in the prior year[34][35]. - Operating income for the nine months ended February 28, 2025 was $5,869,000, down from $6,966,000 in the same period last year[40]. - Net income for the nine months ended February 28, 2025 decreased by 12% compared to the prior year[34]. - For the three months ended February 28, 2025, net revenue decreased by $1,689,000, or 14%, compared to the same period in the prior year[44]. Sales and Orders - The company had 146 open sales orders in backlog with a total sales value of $33.3 million as of February 28, 2025, compared to 131 orders valued at $30.2 million a year earlier[36]. - Total sales within the U.S. decreased by 13% during the nine-month period ended February 28, 2025, while sales outside the U.S. increased by 61%[34]. - The backlog of sales orders increased to $33.3 million as of February 28, 2025, up from $33.1 million at the end of the prior year[61]. Expenses - Selling, general and administrative expenses increased by 1% to $7,731,000 for the nine months ended February 28, 2025[39]. - Research and development costs for the nine months ended February 28, 2025 were $319,000, a slight decrease of $2,000 from the prior year[38]. - Accrued expenses increased by 71% to $7,997,000 due to prepayments for a project not started[62]. Inventory and Receivables - As of February 28, 2025, total inventory increased by $1,293,000 (17%) to $8,805,000 compared to $7,512,000 at the prior year-end[54]. - Accounts receivable rose by $1,505,000 (29%) to $6,717,000 as of February 28, 2025, from $5,212,000 at the prior year-end[56]. - The average days sales outstanding (DSO) increased from 39 days to 57 days, indicating delayed collections for structural project invoices[57]. - Maintenance and other inventory decreased by $349,000 (22%) to $1,231,000 as of February 28, 2025[54]. Capital Expenditures and Project Status - Capital expenditures for the nine-month period ended February 28, 2025 were $1,158,000, an increase from $755,000 in the same period last year[52]. - The number of projects in progress decreased from 14 to 9, with the aggregate percent complete dropping from 53% to 49%[61]. Other Financial Metrics - The provision for potential inventory obsolescence was zero for the nine-month period ended February 28, 2025, compared to $369,000 for the same period in the prior year[55]. - The balance of Costs and Estimated Earnings in Excess of Billings (CIEB) decreased by $1,127,000 (26%) to $3,230,000 as of February 28, 2025[56]. - Billings in Excess of Costs and Estimated Earnings (BIEC) decreased by $2,368,000 (42%) to $3,233,000 as of February 28, 2025[60].