Servotronics(SVT) - 2024 Q1 - Quarterly Report

Revenue and Profitability - Revenue for the three-month period ended March 31, 2024 increased by approximately $1,386,000, or 15.3%, compared to the same period in 2023, driven by increased volume, favorable product mix, and price increases [101]. - Gross profit increased approximately $747,000, or 75.6%, for the three-month period ended March 31, 2024, resulting in a gross margin of 16.6% compared to 10.9% for the same period in 2023 [103]. - Foreign sales increased to $2,615,000 for the three-month period ended March 31, 2024, a growth of approximately $592,000, or 29.3%, compared to the same period in 2023 [102]. Operating Performance - Operating loss improved by approximately $914,000, or 76.4%, to ($283,000) for the three-month period ended March 31, 2024, compared to ($1,197,000) in the same period in 2023 [105]. - Cash provided by operating activities was $413,000 for the three-month period ended March 31, 2024, representing an increase of $2,830,000 compared to cash used of ($2,417,000) during the same period in 2023 [112]. - Selling, general and administrative expenses decreased by $167,000, or 7.6%, to approximately $2,018,000 for the three-month period ended March 31, 2024, compared to $2,185,000 in the same period in 2023 [104]. - Loss from continuing operations decreased by approximately $614,000, or 62.7%, to ($366,000) for the three-month period ended March 31, 2024, compared to ($980,000) in the same period in 2023 [109]. Tax and Working Capital - The effective tax rate for continuing operations was 0% for the three-month period ended March 31, 2024, compared to (21.2%) for the same period in 2023 [108]. - Working capital decreased to approximately $21,481,000 at March 31, 2024, from $25,449,000 at March 31, 2023, primarily due to cash used to fund losses and impairment charges [113]. Business Strategy - The company is focusing on expanding its business in primary markets such as commercial aviation while exploring new opportunities in energy and industrial sectors [95].