The LGL (LGL) - 2022 Q1 - Quarterly Report

Financial Performance - Total revenues for the first quarter of 2022 were $8,108,000, representing a 24.1$6,536,000 for the same period in 2021, driven by strong defense product shipments and a recovering avionics market[83] - The consolidated gross margin improved to 37.6% for the first quarter of 2022, up from 32.7% for the same period in 2021, reflecting increased business volume[84] - The company reported operating income of $221,000 for the first quarter of 2022, compared to an operating loss of ($60,000) for the same period in 2021[85] - Net income for the first quarter of 2022 was $169,000, compared to$27,000 for the same period in 2021, with diluted net income per share increasing to $0.03 from$0.01[90] Order Backlog - As of March 31, 2022, the company's order backlog was $36,991,000, a 24.1$29,797,000 at December 31, 2021, and an 81.4% increase compared to $20,388,000 as of March 31, 2021[81] Cash and Investments - Cash used in investing activities for the first quarter of 2022 was$6,810,000, significantly higher than $55,000 for the same period in 2021, primarily due to the purchase of$7,000,000 in marketable securities[93] - As of March 31, 2022, the company's consolidated working capital was $51,611,000, slightly up from$51,410,000 as of December 31, 2021[94] - The company has no borrowings outstanding under its revolving line of credit with Synovus Bank as of March 31, 2022, which has a limit of $3.5 million[96] - The company believes that existing cash, marketable securities, and cash generated from operations will provide sufficient liquidity for the next 12 months[97] Spin-Off Plans - The company plans to proceed with the Spin-Off of MtronPTI, which is expected to create two separate publicly-traded companies, allowing each to pursue distinct business strategies[99] Impact of COVID-19 - The effectiveness and adoption of COVID vaccines and therapeutics continue to impact business operations and financial performance[108] - Global vaccination programs' failure to achieve intended results may lead to prolonged economic and supply chain disruptions, adversely affecting operations[108] - Governmental and business actions in response to the pandemic include shutdown orders and travel restrictions, influencing supplier impacts[108] - The ongoing pandemic situation remains a significant risk factor for the company's future performance and operational results[108] - Market risk disclosures are not applicable for the current reporting period[109]