Taylor Devices(TAYD) - 2026 Q3 - Quarterly Report

Financial Performance - Net revenue for the nine months ended February 28, 2026, was $32,695,000, representing a 6% increase from $30,732,000 in the prior year[36] - Net income for the same period increased by 17% to $6,790,000 compared to $5,869,000 in the prior year[42] - Other income for the nine months ended February 28, 2026, was $1,231,000, a 22% increase from the prior year[43] - Operating income for the nine months ended February 28, 2026, was $6,790,000, higher than $5,869,000 in the same period last year[42] Expenses - Research and development costs increased by $39,000 to $358,000, accounting for 1.1% of net revenue[40] - Selling, general and administrative expenses decreased by 6% to $7,241,000, representing 22% of net revenue[41] - Capital expenditures for the nine months ended February 28, 2026, were $2,006,000, compared to $1,158,000 in the prior year[54] Sales and Orders - Total sales within the U.S. increased by 12%, while total sales outside the U.S. decreased by 21%[36] - The company had 116 open sales orders in its backlog valued at $20.8 million as of February 28, 2026, down from 146 orders valued at $33.3 million a year earlier[38] - The backlog of sales orders decreased to $20.8 million from $27.1 million, with $8.2 million related to projects already in progress[62] Inventory and Receivables - As of February 28, 2026, total inventory decreased by $632,000 to $7,481,000, with a composition of 90% work-in-process, 2% finished goods, and 8% raw materials[56] - Accounts receivable decreased by 13% to $4,863,000, with an allowance for estimated credit losses of $319,000, and the average days sales outstanding increased from 32 to 39 days[58][59] - Maintenance and other inventory decreased by 29% to $783,000, indicating potential sensitivity to technological obsolescence[57] - The provision for potential inventory obsolescence was recorded at $195,000 for the nine-month period ended February 28, 2026[57] Project Status - Costs and Estimated Earnings in Excess of Billings (CIEB) increased by 6% to $5,681,000, attributed to the normal flow of long-term projects[60] - Billings in Excess of Costs and Estimated Earnings (BIEC) decreased by 68% to $1,404,000, reflecting a reduction in the number of projects in progress from 7 to 5[62] - The aggregate percent complete for projects in progress increased from 65% to 73%[62] - The average total sales value of projects in progress decreased to $1,383,000 from $1,846,000[62] Liabilities - Accounts payable increased by 1% to $1,129,000, while accrued expenses decreased by 32% to $2,773,000 due to reduced incentive compensation[63]