The LGL (US:LGL)2022-08-09 20:57Financial Performance - Total revenues for the three months ended June 30, 2022, were $7,434,000, representing an 8.0% increase from $6,882,000 for the same period in 2021[79] - For the six months ended June 30, 2022, total revenues were $15,542,000, a 15.8% increase from $13,418,000 for the same period in 2021[87] - The company reported a net loss of $1,798,000 for the three months ended June 30, 2022, compared to a net loss of $18,000 for the same period in 2021[86] - The company reported an investment loss of $2,328,000 for the six months ended June 30, 2022, compared to investment income of $202,000 for the same period in 2021[91] Order Backlog - As of June 30, 2022, the order backlog was $43,384,000, an increase of 45.6% from $29,797,000 at December 31, 2021, and an increase of 103.2% compared to $21,347,000 as of June 30, 2021[77] Margins and Costs - Consolidated gross margin decreased to 37.6% for the three months ended June 30, 2022, down from 39.7% for the same period in 2021, due to inflation and product mix[80] Cash and Liquidity - As of June 30, 2022, cash and cash equivalents were $22,325,000, down from $29,016,000 as of December 31, 2021[95] - Consolidated working capital as of June 30, 2022, was $49,469,000, compared to $51,410,000 as of December 31, 2021[99] - Existing cash, cash equivalents, and marketable securities are expected to provide sufficient liquidity for the next 12 months[102] - The company had no borrowings outstanding under its revolving line of credit as of June 30, 2022[101] - The company utilized $5,339,000 for investment activities related to marketable securities during the six months ended June 30, 2022[95] - The company has not paid cash dividends since January 30, 1989, and none are expected in the foreseeable future[103] Spin-Off - The Spin-Off of MtronPTI was approved by stockholders on June 21, 2022, creating two separate publicly-traded companies[104] - The Spin-Off is expected to allow each entity to pursue distinct business strategies and capital allocation policies[105] COVID-19 Impact - The company experienced adverse impacts from COVID-19, including higher raw material prices and disruptions in global supply chains[109] - Operations in India were closed on March 23, 2020, and resumed limited operations on May 7, 2020, with full operations by the end of June 2020[110] - U.S. production facilities continued to operate in support of essential products, but facility closures or slowdowns have occurred[111] - The ultimate impact of COVID-19 on operations and financial performance remains uncertain and depends on various uncontrollable factors[112] Credit Facilities - The MtronPTI subsidiary has a revolving line of credit agreement for up to $5,000,000 with Fifth Third Bank N.A., maturing on June 15, 2025[100]