Twin Disc(TWIN)2025-05-07 12:30Financial Performance - Sales for the fiscal 2025 third quarter increased 9.5% year-over-year to $81.2 million, driven by the addition of Katsa Oy and Kobelt, along with strength in the Marine and Propulsion Systems and Industrial product segments [5]. - Gross profit increased 3.8% to $21.7 million, while gross margin decreased approximately 150 basis points to 26.7% due to an unfavorable product mix [7]. - Net loss attributable to Twin Disc was ($1.5) million, or ($0.11) per diluted share, compared to net income of $3.8 million, or $0.27 per diluted share, for the same quarter last year [10]. - EBITDA for the third quarter was $4.0 million, down 42.7% compared to the third quarter of fiscal 2024 [10]. - Organic net sales for the quarter ended March 28, 2025, were $75,430 thousand, a slight increase from $74,161 thousand in the same quarter of 2024 [26]. Order Backlog and Market Activity - The six-month backlog of orders increased to approximately $133.7 million, compared to $124.0 million at the end of the second quarter [11]. - The company reported a healthy six-month backlog supported by strong ongoing order activity across key markets [9]. - Strong order activity for Veth continues to be driven by demand in the luxury yacht and riverboat vessels [3]. Expenses and Cash Flow - Marketing, engineering, and administrative expenses increased by $2.3 million, or 13.2%, to $19.4 million, primarily due to the addition of Katsa and Kobelt [8]. - Cash provided by operating activities for the three quarters ended March 28, 2025, was $7,531 thousand, down from $22,273 thousand for the same period in 2024 [30]. - The company incurred depreciation and amortization expenses of $10,194 thousand for the three quarters ended March 28, 2025, compared to $7,497 thousand for the same period in 2024 [30]. - Cash at the end of the period was $16,245 thousand, down from $20,070 thousand at the beginning of the period [30]. Debt and Liabilities - Cash decreased 19.1% to $16.2 million, while total debt increased 139.3% to $40.8 million, primarily due to higher long-term debt related to acquisitions [11]. - Total debt increased to $40,774 thousand as of March 28, 2025, from $17,042 thousand as of March 29, 2024 [24]. - Total liabilities increased to $182,693 thousand as of March 28, 2025, from $157,004 thousand as of June 30, 2024 [28]. Acquisitions and Strategic Focus - The company remains focused on integrating recent acquisitions and advancing its strategic priorities in hybrid and electric marine solutions [4]. - The company acquired Kobelt, resulting in an investment of $16,346 thousand during the three quarters ended March 28, 2025 [30]. Inventory and Write-downs - The company reported a loss on the write-down of industrial product inventory amounting to $1,579 thousand for the three quarters ended March 28, 2025 [30].