Core Viewpoint - Servotronics, Inc. demonstrated a strong performance in Q2 2024, with significant revenue and profitability growth driven by strategic initiatives and increased market demand [1] Q2 Results - Earnings per share for Q2 2024 were 22 cents, a recovery from a loss of $1.33 per share in the same quarter last year [2] - Total revenues reached $12.3 million, marking a 15.3% increase from $10.6 million in Q2 2023, primarily due to higher volumes and improved pricing, despite an unfavorable sales mix [2] Profitability - Gross profit rose to $3.1 million from $1.6 million year-over-year, driven by increased volumes and operational efficiencies [3] - Operating income improved to $0.7 million from an operating loss of $1.7 million in Q2 2023, attributed to higher gross profit and reduced SG&A costs [3] Net Income - Net income from continuing operations was $0.6 million, compared to a net loss of $3.3 million in the prior-year quarter [4] - Overall net income for Q2 2024 was $0.6 million, a significant recovery from a net loss of $9.5 million in Q2 2023, which was impacted by losses from discontinued operations [4] Costs - SG&A expenses decreased by $0.9 million to $2.4 million from $3.3 million in Q2 2023, mainly due to lower professional and legal costs [5] - The cost of goods sold (COGS) slightly increased to $9.2 million from $9.1 million in Q2 2023, but the increase in revenue led to improved gross profit margins [6] Cash and Debt - Cash and restricted cash totaled $0.27 million at the end of Q2 2024, up from $0.25 million at the beginning of the year [7] - The company's line of credit was reduced to $1.473 million from $2.103 million at the end of 2023, indicating a focused effort on debt repayment [7] Management View - The company expressed confidence in its strategic positioning for long-term growth, anticipating strong demand in key markets for the remainder of the year [8] - Management noted satisfaction with the rebound from a slow start to the year, highlighting continuous improvement efforts that positively impacted growth, margins, and operating income [8] Cash Flow - Improvements in cash flow from operations increased by approximately $6.6 million compared to the same period in 2023, driven by higher net income and reductions in accounts receivable [9] - The decrease in SG&A expenses significantly contributed to improved operating income, alongside savings from lower non-recurring costs compared to the previous year [9]
Servotronics (SVT) Earnings & Revenues Increase Y/Y in Q2