Taylor Devices(TAYD) - 2022 Q2 - Quarterly Report

Financial Performance - Net revenue for the six months ended November 30, 2021, was $15,066,000, representing a 44% increase compared to $10,477,000 in the same period of 2020[29] - Gross profit for the six months ended November 30, 2021, was $3,980,000, with a gross profit margin of 26%, up from 20% in the prior year[30] - For the three months ended November 30, 2021, net revenue was $7,758,000, a 64% increase from $4,717,000 in the same period of 2020[39] - Gross profit for the three months ended November 30, 2021, was $2,389,000, with a gross profit margin of 31%, significantly higher than 12% in the prior year[40] - Operating income for the six months ended November 30, 2021, was $899,000, compared to an operating loss of $478,000 in the same period of the prior year[34] Revenue Sources - Revenues from long-term construction projects increased by 185% compared to the previous year, while revenues from non-projects decreased by 29%[29] - Total sales within the U.S. increased by 53% year-over-year, with significant growth in sales to structural customers[29] Expenses and Costs - Selling, general and administrative expenses rose by 18% to $3,081,000, accounting for 20% of net revenues, down from 25% in the prior year[33] - The company recognized $126,000 in stock option compensation costs for the six months ended November 30, 2021, compared to $50,000 in the same period of 2020[46] - The company recorded a provision for potential inventory obsolescence of $90,000, unchanged from the previous year[54] Backlog and Orders - The backlog of open sales orders increased from $15.4 million in November 2020 to $17.0 million in November 2021[31] - As of November 30, 2021, the company reported a backlog of sales orders totaling $17.0 million, down from $22.0 million at the end of the prior year[62] Accounts and Inventory - Accounts receivable increased by 28% to $4,310,000 from $3,380,000 as of May 31, 2021, with an average day's sales outstanding (DSO) rising from 42 days to 50 days[55][56] - Costs and estimated earnings in excess of billings (CIEB) rose by 159% to $3,885,000 compared to $1,500,000 at the end of the prior year, indicating strong project flow[58][59] - The company’s total inventory decreased by 1% to $7,360,000 from $7,448,000, with 87% classified as work in process[52][53] Capital Expenditures - Capital expenditures for the six months ended November 30, 2021 were $560,000, down from $721,000 in the same period of the prior year[51] - The company has commitments for capital expenditures totaling $1,400,000 over the next twelve months[51] Liabilities and Cash Flow - The balance of accounts payable decreased by 16% to $1,503,000 compared to the prior year-end[63] - The company believes its cash flows from operations are sufficient to fund ongoing operations and capital improvements for the next twelve months[64] Stock Information - The closing value per share on NASDAQ at November 30, 2021 was $10.95, with options outstanding and exercisable increasing to 303,000[49]