The LGL (US:LGL)2021-08-11 20:32Financial Performance - Total revenues for the three months ended June 30, 2021, were $6,882,000, a decrease of 2.5% compared to $7,059,000 for the same period in 2020[93] - Total revenues for the six months ended June 30, 2021, were $13,418,000, a decrease of $2,259,000 or 14.4% from $15,677,000 for the same period in 2020[100] - Net loss for the three months ended June 30, 2021, was $18,000, compared to net income of $255,000 for the same period in 2020[99] - Net income decreased to $9,000 compared to $438,000 for the six months ended June 30, 2020, with diluted net income per share at $0.00 versus $0.08[106] - Operating income for the three months ended June 30, 2021, was $616,000, compared to $184,000 for the same period in 2020, reflecting margin improvement[95] - Operating income was reported at $556,000, down from $844,000 for the six months ended June 30, 2020, reflecting reduced revenues[102] Margins and Costs - Consolidated gross margin improved to 39.7% from 31.8% for the three months ended June 30, 2020, due to favorable product mix and cost reductions[94] - Consolidated gross margin improved to 36.3% from 33.2% for the six months ended June 30, 2020, due to favorable product mix and cost reductions[101] Order and Bookings - The order backlog as of June 30, 2021, was $21,347,000, an increase of 7.8% from $19,801,000 at December 31, 2020[85] - Quarterly bookings for the second quarter of 2021 were $7,841,000, an increase of 12.0% compared to 2020 levels[85] - The Company expects to fill substantially all of its order backlog within the next twelve months but cannot provide assurances regarding the fulfillment of specific orders[87] Investments and Financing - The Company invested $3.35 million in LGL Systems Acquisition Holding Company, LLC, which serves as the Sponsor of LGL Systems Acquisition Corp.[88] - The SPAC IPO closed on November 12, 2019, with proceeds totaling $172.5 million[89] - The company has a revolving line of credit with Synovus Bank for up to $3.5 million, with no borrowings outstanding as of June 30, 2021[112] Cash Flow and Capital - Cash provided by operating activities was $48,000 for the six months ended June 30, 2021, down from $871,000 in the same period of 2020[108] - Cash used in investing activities increased to $3,125,000 from $105,000, primarily due to funding for the PIPE subscription agreement and higher capital expenditures[109] - As of June 30, 2021, consolidated working capital was $28,437,000, down from $30,384,000 as of December 31, 2020[111] Dividend Policy and COVID-19 Impact - The company does not pay cash dividends, adhering to a policy focused on long-term growth objectives[114] - The company continues to monitor the impact of COVID-19 on its operations and industry, which could materially disrupt business[113]