Ultralife(US:ULBI)2025-11-17 22:26Financial Performance - Consolidated revenues for Q3 2025 were $43,371, an increase of $7,677 or 21.5% compared to $35,694 in Q3 2024, driven by Electrochem sales of $6,797 and a 16.4% increase in government/defense sales[105] - Gross profit for Q3 2025 was $9,619, representing 22.2% of revenue, down from $8,682 or 24.3% in Q3 2024, primarily due to sales product mix and quality issues impacting manufacturing[106] - The operating loss for Q3 2025 was ($951), or (2.2%) of revenues, compared to an operating income of $511, or 1.4% of revenues in Q3 2024, mainly due to lower gross margins in the Battery & Energy Products segment[109] - Net loss attributable to Ultralife Corporation was ($1,220), or ($0.07) per share, for Q3 2025, compared to net income of $258, or $0.02 per share, in Q3 2024[111] - Adjusted EBITDA for Q3 2025 was $2,048, or 4.7% of revenues, down from $1,919, or 5.4% of revenues in Q3 2024[112] - Consolidated revenues for the nine-month period ended September 30, 2025, were $142,678, an increase of $22,074 or 18.3% over $120,604 in the same period of 2024[126] - Net income attributable to Ultralife was $1,524 or $0.09 per share for the nine-month period ended September 30, 2025, down from $6,118 or $0.37 per share in the same period of 2024[136] - Adjusted EBITDA for the nine-month period ended September 30, 2025, was $11,609,000, compared to $12,577,000 for the same period in 2024, reflecting an 7.7% decrease[144] Revenue Breakdown - Battery & Energy Products revenues increased by $7,417, or 22.8%, to $39,946 in Q3 2025, with government/defense sales up 19.0% but commercial sales down 5.7%[115] - Communications Systems sales rose by $260, or 8.2%, to $3,425 in Q3 2025, impacted by delays in purchase orders due to anticipated U.S. Government shutdown[116] - Communications Systems revenues decreased by $5,859 or 35.7% to $10,544 for the nine-month period ended September 30, 2025, due to delays in purchase orders and reduced shipments[128] Cost and Expenses - Operating expenses increased to $10,570 in Q3 2025 from $8,171 in Q3 2024, reflecting Electrochem's results and one-time costs related to closing the Calgary facility[107] - Cost of products sold increased to $33,752 in Q3 2025, up 25.0% from $27,012 in Q3 2024, leading to a gross margin decline from 24.3% to 22.2%[117] - Operating expenses for the nine-month period ended September 30, 2025, were $29,261, an increase of $6,037 or 26.0% from $23,224 in 2024[132] - Research and development costs increased by $754 or 35.9% to $2,855 in Q3 2025, driven by the inclusion of Electrochem and higher new product development costs[121] Cash Flow and Investments - For the nine-month period ended September 30, 2025, cash generated from operations was $9,501,000, down from $13,590,000 in the same period of 2024, representing a 30.5% decrease[146] - As of September 30, 2025, cash totaled $9,260,000, an increase from $6,854,000 at December 31, 2024, indicating a 35.5% rise[145] - Cash used in investing activities for the nine months ended September 30, 2025, was $2,986,000, primarily for capital expenditures related to new product manufacturing[147] - Cash used in financing activities for the nine months ended September 30, 2025, was $3,989,000, which included a $4,063,000 reduction in outstanding debt[148] Debt and Financing - As of September 30, 2025, the company had $50,937,000 outstanding on the Term Loan and no amounts outstanding on the Revolving Credit Facility, indicating full compliance with debt covenants[151] - The company expects positive operating cash flow and availability of borrowings under its Revolving Credit Facility to meet general funding requirements in the foreseeable future[149] - The new shelf registration statement filed on March 29, 2024, allows the company to offer and sell up to $100,000,000 in securities for general corporate purposes, including potential acquisitions and strategic capital expenditures[150] Taxation - The effective tax rate decreased to 16.9% for the nine-month period ended September 30, 2025, from 20.9% in 2024, primarily due to the geographic mix of operating results[135]