The LGL (LGL) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial and Operational Highlights The company's Q1 2025 saw increased revenues but a net loss, alongside improved gross margin and stable liquidity Results from Operations Q1 2025 revenues increased to $918,000, but a net loss of $6,000 was reported, driven by lower investment income and higher costs Q1 2025 vs Q1 2024 Key Financials | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $918,000 | $888,000 | +$30,000 | | Net (Loss) Income to Common Stockholders | ($6,000) | $21,000 | -$27,000 | - The decrease in net income was primarily caused by lower net investment income, higher manufacturing costs of sales, and increased engineering, selling, and administrative expenses[2][6] Gross Margin The company's gross margin improved significantly to 52.4% in Q1 2025, driven by a more favorable, higher-margin product mix Gross Margin Comparison | Period | Gross Margin | | :--- | :--- | | Q1 2025 | 52.4% | | Q1 2024 | 48.0% | Backlog As of March 31, 2025, the order backlog decreased to $295,000, with most expected to be fulfilled within 90 days Order Backlog Change | Date | Backlog Amount | | :--- | :--- | | March 31, 2025 | $295,000 | | December 31, 2024 | $336,000 | Liquidity The company maintained a strong liquidity position in Q1 2025, with working capital stable at approximately $41.8 million Working Capital (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current Assets | $42,820 | $42,642 | | Current Liabilities | $1,013 | $904 | | Working Capital | $41,807 | $41,738 | - As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $42.0 million[6] Other Key Developments Q1 2025 saw positive operational and strategic progress, including a 27% revenue growth in Precise Time and Frequency business - Key operational and strategic updates include: - Precise Time and Frequency revenues increased 27% in Q1 2025[6] - P3 Logistic Solutions' tactical edge AI contract development is strengthening[6] - The Morgan Group Holding Co. transaction is expected to close in the second quarter[6] - An S-1 is expected to be filed in the second quarter with an amended Warrant Agreement[6] Corporate Developments This section outlines recent changes to the Board of Directors and their strategic implications for the company Board of Directors Changes Two board members will not seek re-election, intending to focus on launching the new Connectivity Partnership - Michael J. Ferrantino, Jr. and Timothy Foufas will not seek re-election to the Board of Directors at the June 2, 2025 Annual Meeting[7] - The decision reflects their intent to dedicate greater focus to launching the new Connectivity Partnership, which they will continue to support through LGL's strategic investment[7][8] Financial Statements This section provides the company's consolidated statements of operations, balance sheets, and detailed segment results Consolidated Statements of Operations Q1 2025 saw increased total revenues but a net loss due to higher expenses, despite growth in net sales Consolidated Statements of Operations (Unaudited, in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total revenues | $918 | $888 | | Net sales | $498 | $392 | | Net investment income | $417 | $499 | | Total expenses | $877 | $809 | | Manufacturing cost of sales | $237 | $204 | | Engineering, selling and administrative | $640 | $605 | | Income from operations before income taxes | $41 | $79 | | Net (loss) income attributable to LGL Group common stockholders | ($6) | $21 | Consolidated Balance Sheets As of March 31, 2025, the company maintained a strong and stable balance sheet with total assets of $43.3 million Consolidated Balance Sheets Highlights (Unaudited, in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $41,925 | $41,585 | | Total current assets | $42,820 | $42,642 | | Total assets | $43,302 | $43,145 | | Total current liabilities | $1,013 | $904 | | Total liabilities | $2,040 | $1,905 | | Total stockholders' equity | $41,262 | $41,240 | Segment Results The Electronic Instruments segment grew strongly in Q1 2025, offsetting declines in revenue and operating income from other segments Segment Revenues (Unaudited, in thousands) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Electronic Instruments | $498 | $392 | 27.0% | | Merchant Investment | $247 | $289 | -14.5% | | Corporate | $173 | $207 | -16.4% | | Total revenues | $918 | $888 | 3.4% | Segment Income (loss) from operations before income taxes (Unaudited, in thousands) | Segment | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Electronic Instruments | $19 | $2 | 850.0% | | Merchant Investment | $153 | $240 | -36.3% | | Corporate | ($131) | ($163) | -19.6% | | Total | $41 | $79 | -48.1% | About The LGL Group, Inc. This section provides an overview of The LGL Group, Inc., its business model, and market presence Company Overview LGL Group is a holding company in services, merchant investment, and manufacturing, with stock traded on the NYSE American - LGL Group is a holding company engaged in services, merchant investment, and manufacturing business activities[9] - The company's primary business strategy is focused on growth by expanding operations across diversified industries[11] - LGL's common stock and warrants are traded on the NYSE American under the symbols 'LGL' and 'LGL WS,' respectively[10] Cautionary Note Concerning Forward-Looking Statements This section provides a cautionary note on forward-looking statements, highlighting inherent risks and safe harbor protections Safe Harbor Statement Forward-looking statements in this release are subject to risks and protected under the Private Securities Litigation Reform Act of 1995 - The press release contains forward-looking statements as defined by the Securities Act of 1933 and the Securities Exchange Act of 1934[12] - These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, as detailed in the company's SEC filings[13] - LGL Group does not undertake any obligation to update or revise forward-looking statements and claims protection under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[14]