BK Technologies(BKTI) - 2025 Q1 - Quarterly Results

BK Technologies First Quarter 2025 Results Financial & Operational Highlights BK Technologies started 2025 strongly with 4.5% revenue growth, significant gross margin improvement, and substantial EPS growth, reiterating full-year guidance Q1 2025 Key Financial Metrics vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | $19.1 million | $18.2 million | +4.5% | | Gross Margin | 47.0% | 34.5% | +12.5 p.p. | | GAAP Diluted EPS | $0.55 | $0.19 | +189.5% | | Non-GAAP Adjusted Diluted EPS | $0.68 | $0.30 | +126.7% | - The company reiterated its full-year 2025 guidance, targeting GAAP EPS to exceed $2.40 per diluted share and non-GAAP adjusted EPS to exceed $2.80 per diluted share[5][7] - The order backlog stood at $18.8 million as of March 31, 2025, slightly down from $19.0 million a year prior[5] - The significant improvement in gross margin was attributed to a favorable product sales mix and the successful manufacturing transition to East West Manufacturing, whose production in Mexico remains tariff-free under the USMCA[5][6] Management Commentary & Outlook Management attributes strong Q1 performance to improved gross margin and manufacturing transition, with solid state/local demand and emerging federal orders post-budget, reaffirming full-year outlook - Continued solid demand was observed from state and local government markets for the BKR Series radios[6] - Federal orders were light in Q1 2025 due to the delayed passing of a full-year continuing resolution by Congress. With the resolution now signed, increased order activity from federal customers is beginning to emerge[6] - The company reaffirmed its full-year 2025 guidance for GAAP EPS to exceed $2.40 and non-GAAP adjusted EPS to exceed $2.80 per diluted share[7] Detailed Financial Review Q1 2025 saw operating income surge to $2.9 million and net income more than triple, driven by higher revenue and gross margin expansion, with working capital increasing to $24.6 million Q1 2025 Income Statement Highlights (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $19.1 million | $18.2 million | | Gross Margin | 47.0% | 34.5% | | SG&A Expenses | $6.0 million | $5.3 million | | Operating Income | $2.9 million | $983,000 | | Net Income | $2.1 million | $681,000 | - Non-GAAP adjusted EBITDA more than doubled to $3.2 million in Q1 2025, compared to $1.4 million in Q1 2024[12] - Working capital increased to $24.6 million at March 31, 2025, from $23.0 million at December 31, 2024. The cash, cash equivalents, and trade receivables portion of working capital grew to $19.1 million from $14.4 million[12] Financial Statements This section presents detailed financial statements, including the Statement of Operations, Balance Sheets, and Reconciliation of Non-GAAP Measures, highlighting performance and financial position Condensed Consolidated Statements of Operations Q1 2025 vs Q1 2024 Statement of Operations (in thousands) | Line Item | Q1 2025 (3/31/25) | Q1 2024 (3/31/24) | | :--- | :--- | :--- | | Sales, net | $19,054 | $18,231 | | Operating income | $2,916 | $983 | | Income before income taxes | $2,802 | $702 | | Net income | $2,132 | $681 | | Diluted EPS | $0.55 | $0.19 | Condensed Consolidated Balance Sheets Balance Sheet Highlights (in thousands) | Line Item | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $8,920 | $7,075 | | Total current assets | $39,803 | $36,941 | | Total assets | $56,066 | $51,499 | | Total current liabilities | $15,243 | $13,974 | | Total liabilities | $23,697 | $21,668 | | Total stockholders' equity | $32,369 | $29,831 | Reconciliation of Non-GAAP Financial Measures Reconciliation to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 (3/31/25) | Q1 2024 (3/31/24) | | :--- | :--- | :--- | | Net Income | $2,132 | $681 | | Adjustments (Interest, Tax, D&A) | $1,094 | $602 | | EBITDA | $3,226 | $1,283 | | Severance | - | $127 | | Adjusted EBITDA | $3,226 | $1,410 | Reconciliation to Adjusted Earnings (Non-GAAP) (in thousands) | Line Item | Q1 2025 (3/31/25) | Q1 2024 (3/31/24) | | :--- | :--- | :--- | | Net Income | $2,132 | $681 | | Adjustments (Investments, Stock Comp, etc.) | $518 | $393 | | Adjusted Earnings (Non-GAAP) | $2,650 | $1,074 | Supplementary Information This section provides standard disclosures, including investor call details, explanations of non-GAAP measures, business description, and forward-looking statements with associated risks - The company uses non-GAAP measures such as Adjusted EBITDA and Adjusted EPS to provide investors with a better understanding of operational performance by excluding items like non-cash stock compensation and other one-time charges[16][17][18] - The press release contains forward-looking statements concerning the company's operations and financial condition, which are subject to various risks and uncertainties detailed in the company's SEC filings[20] - A conference call and webcast for investors was scheduled for May 13, 2025, at 9:00 a.m. Eastern Time to discuss the results[13]