TechPrecision .(US:TPCS)2025-04-08 20:44Revenue and Financial Performance - Consolidated revenue for the three months ended December 31, 2024, was $7,622, a decrease of $28 or less than 1% compared to $7,650 for the same period in 2023[145]. - Ranor's revenue increased by $14 to $4,310 for the three months ended December 31, 2024, reflecting a percentage change of less than 1%[146]. - Stadco's revenue decreased by $58 to $3,312 for the three months ended December 31, 2024, representing a 2% decline[147]. - For the nine months ended December 31, 2024, consolidated revenue was $24,554, a 7% increase compared to $22,991 for the same period in 2023[164]. - Stadco's revenue for the nine months ended December 31, 2024, was $11,139 million, a 12% increase from $9,943 million in the same period of 2023[167]. Profitability and Losses - Consolidated gross profit decreased by $170 to $991 for the three months ended December 31, 2024, resulting in a gross margin of 13%, down from 15% in the same period last year[148]. - Operating loss for the three months ended December 31, 2024, was $696, an improvement of $300 compared to an operating loss of $996 for the same period in 2023[154]. - Ranor's operating income increased by $34 or 3% due to favorable operating execution and throughput[155]. - Stadco's operating loss increased by $340 or 66% due to ongoing production issues impacting throughput[156]. - Operating loss for the nine months ended December 31, 2024, was $2,525 million, a 16% increase compared to the same period in 2023[176]. - Net loss for the nine months ended December 31, 2024, was $2,860 million, or $0.30 per share, compared to a net loss of $1,921 million, or $0.22 per share, in the same period of 2023[183]. - The Company reported a net loss of $799 for the three months ended December 31, 2024, compared to a net loss of $865 for the same period in 2023, reflecting a change of $66[214]. - EBITDA for the three months ended December 31, 2024, was $51, a significant improvement from a negative EBITDA of $364 in the same period of 2023[214]. Backlog and Order Flow - Consolidated backlog as of December 31, 2024, was $45,522, indicating strong project order flow from prime defense contractors[164]. - Ranor's backlog increased to $20,344 million as of December 31, 2024, up from $18,497 million in 2023[166]. Expenses and Cost Management - Consolidated selling, general and administrative expenses decreased by $470 or 22% primarily due to the absence of due diligence work on acquisitions[151]. - Consolidated SG&A expenses decreased by $295 million, or 6%, primarily due to the absence of due diligence work on acquisitions[172]. - The Company plans to closely monitor expenses and may reduce operating costs to enhance liquidity[209]. Liquidity and Capital Management - Total available liquidity as of December 31, 2024, was approximately $330 million, consisting of $165 million in undrawn capacity under the Revolver Loan and $165 million in available cash[185]. - Cash used in operating activities for the nine months ended December 31, 2024, was $995 million, compared to cash provided of $1,180 million in the same period of 2023[189]. - The Company raised approximately $1,801 through a private placement of common stock and warrants to raise working capital[207]. - The Company is exploring various means to strengthen its liquidity position, including making Stadco operations profitable and renewing the revolver loan[206]. - The Company has outstanding debt obligations totaling $7,327 classified as current due to debt covenant violations[215]. - The Revolver Loan maturity has been extended multiple times, with the latest extension to April 30, 2025[203]. - The maturity date of the Revolver Loan was extended from May 24, 2024, to August 30, 2024, with a reduction in the maximum principal amount from $5 million to $4.5 million[127]. Risks and Compliance - The company has faced risks related to reliance on individual purchase orders and external factors such as supply chain inefficiencies and price inflation[107]. - The company is registered and compliant with ITAR, ensuring adherence to U.S. defense regulations[115]. - The uncertainty surrounding recurring operating losses at Stadco raises substantial doubt about the Company's ability to continue as a going concern for at least one year[210]. - The Company acknowledges an Existing Default due to failure to meet the required minimum Debt Service Coverage Ratio for the twelve-month periods ending March 31, 2024, and December 31, 2024[204]. Investments and Capital Expenditures - The company invested $2,796 million in new factory machinery and equipment for the nine months ended December 31, 2024[191]. - The company issued 320,000 shares as a Stock Termination Fee following the termination of the Votaw acquisition agreement[126]. Shareholder Actions - The company entered into a Securities Purchase Agreement on July 3, 2024, selling 521,800 shares and warrants for a total of $1.801 million, aimed at raising working capital[130]. - The company has filed a registration statement with the SEC for the resale of shares, which was declared effective on January 31, 2025[131].