TechPrecision .(TPCS) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter consolidated net sales were $7.6 million, an 8% decrease compared to $8.3 million in the same quarter of fiscal 2023 [2]. - Consolidated gross profit was $1.2 million, a decline of 23% year-over-year, primarily due to the decrease in top line revenue [5]. - Operating loss for the third quarter was $1.0 million, compared to operating income of $0.3 million in the same period last year [5]. - Net loss for the third quarter was $0.9 million, compared to net income of $0.1 million in the same quarter of the previous year [14]. - For the nine months ended December 31, 2023, consolidated net sales were $22,991,000, a decline of 4% compared to $23,926,000 in the same period of 2022 [15]. - The company reported a net loss of $1,921,122 for the nine months ended December 31, 2023, compared to a net income of $23,754 in the same period of 2022 [17]. - EBITDA for the three months ended December 31, 2023, was $(365,000), a decrease of $1,190,000 from $825,000 in the same period of 2022 [19]. Cash and Debt Position - Total debt increased to $7.6 million as of December 31, 2023, compared to $6.1 million as of March 31, 2023 [6]. - Cash and cash equivalents decreased to $0.4 million as of December 31, 2023, down from $0.5 million as of March 31, 2023 [6]. - Cash and cash equivalents at the end of the period were $391,245, a decrease from $534,474 at the beginning of the period [17]. Operational Costs - SG&A expenses increased by $0.9 million, primarily due to higher expenditures for outside advisory services related to a potential acquisition [5]. - The company incurred approximately $1.0 million in due diligence costs related to a potential acquisition during the quarter [2]. - The cost of sales for the three months ended December 31, 2023, was $6,489,000, representing 85% of net sales, compared to 82% in the same period of 2022 [15]. Backlog and Future Expectations - Backlog increased to $50.8 million as of December 31, 2023, up from $44.6 million as of September 30, 2023, indicating strong customer confidence [2]. - The company expects to deliver its backlog over the next one to three fiscal years, anticipating revenue growth and gross margin expansion [2]. Segment Performance - Ranor's net sales for the three months ended December 31, 2023, were $4,296,000, a decrease of 9% from $4,735,000 in the same period of 2022 [15]. - Stadco's net sales for the nine months ended December 31, 2023, increased by 4% to $9,943,000 from $9,531,000 in the same period of 2022 [15]. Contract Assets - The company experienced a significant change in contract assets, with a net change of $1,581,638 in the nine months ended December 31, 2023, compared to $(1,006,010) in the same period of 2022 [17].