BK Technologies(US:BKTI)2025-11-06 12:05Financial Performance - For the three months ended September 30, 2025, sales increased approximately 21.0% to approximately $24.4 million, compared to $20.2 million for the same period in fiscal year 2024[87] - Net income for the three months ended September 30, 2025, totaled approximately $3.4 million, compared to $2.4 million for the same period last year[90] - For Q3 2025, net income was approximately $3.4 million ($0.93 per basic share), a 41.7% increase from $2.4 million ($0.67 per basic share) in Q3 2024[98] - Net sales for Q3 2025 increased by 21.0% to approximately $24.4 million, compared to approximately $20.2 million in Q3 2024[102] - Operating income for Q3 2025 was approximately $4.8 million (19.8% of sales), an increase from $2.6 million (12.9% of sales) in Q3 2024[114] - For the first nine months of 2025, net income was approximately $9.3 million, a 97.87% increase compared to $4.7 million for the same period in fiscal year 2024[123] Profitability Metrics - Gross profit margins for the three months ended September 30, 2025, were 49.9%, up from 38.8% for the same period in fiscal year 2024, reflecting price increases and cost reduction initiatives[87] - Gross profit margin for Q3 2025 was approximately 49.9%, up from 38.8% in Q3 2024, reflecting improved product sales mix and material cost reductions[106] Customer Demand and Orders - Customer demand and new orders for products were $34.3 million during the three months ended September 30, 2025, compared to $21.8 million for the same period in fiscal year 2024[95] - Customer demand and new orders for the nine months ended September 30, 2025, totaled $69.3 million, compared to $72.4 million for the same period in fiscal year 2024[95] Expenses - Selling, general, and administrative expenses for the three months ended September 30, 2025, totaled approximately $7.3 million, or 30.1% of sales, compared to $5.2 million, or 25.9% of sales in the same period of fiscal year 2024[87] - Selling, general and administrative (SG&A) expenses for Q3 2025 totaled approximately $7.3 million (30.1% of sales), compared to $5.2 million (25.9% of sales) in Q3 2024[110] - Engineering and product development expenses for Q3 2025 were approximately $2.8 million (11.4% of sales), compared to $1.9 million (9.2% of sales) in Q3 2024[111] Working Capital and Cash Flow - Working capital as of September 30, 2025, was approximately $33.8 million, compared to $23.0 million at the end of fiscal year 2024[91] - Cash provided by operating activities for the nine months ended September 30, 2025, was approximately $16.4 million, compared to $9.0 million for the same period in 2024[122] - As of September 30, 2025, working capital totaled approximately $33.8 million, up from $23.0 million as of December 31, 2024[99] - The cash and cash equivalents balance on September 30, 2025, was approximately $21.5 million, sufficient to meet working capital requirements for the foreseeable future[126] Inventory and Receivables - Accounts receivable increased by approximately $0.2 million, compared to an increase of approximately $1.6 million for the same period in fiscal year 2024[123] - Inventories increased by approximately $1.8 million during the nine months ended September 30, 2025, contrasting with a decrease of approximately $5.3 million for the same period in fiscal year 2024[123] - Accounts payable increased by approximately $4.5 million, compared to a decrease of approximately $3.9 million for the same period in fiscal year 2024[123] Investment and Financing Activities - Cash used in investing activities totaled approximately $2.4 million for the nine months ended September 30, 2025, compared to approximately $1.6 million for the same period in fiscal year 2024[124] - Cash provided by financing activities was approximately $0.4 million, compared to cash used of approximately $6.6 million for the same period in fiscal year 2024[125] Debt and Credit Facilities - The Fifth Third Revolving Loan Commitment provides a maximum credit line of $6 million, with potential additional borrowing capacity of up to $8 million, maturing on October 30, 2028[127] - BK Technologies, Inc. must comply with a maximum total funded debt ratio of 2.00 to 1.00 and a fixed charge coverage ratio of 1.2 to 1.0[128] Product Development and Market Expansion - The Solutions product group plans to expand its offerings under the new brand BK ONE, which includes SaaS solutions and other applications[84] - The BKR series radios and related accessories were the primary contributors to sales growth in Q3 2025[103] - The company anticipates that the BKR Series products will expand its addressable market among public safety customers, although order timing may be unpredictable[104] Investment Performance - There were no realized or unrealized losses on investments for the nine months ended September 30, 2025, compared to approximately $0.1 million for the same period in fiscal year 2024[123]