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The LGL Group, Inc. Reports Third Quarter 2024 Results
LGLThe LGL (LGL) Newsfile·2024-11-13 21:44

Core Viewpoint - The LGL Group, Inc. reported mixed financial results for the third quarter and year-to-date 2024, with total revenues increasing but net income decreasing compared to the same periods in 2023 [2][3][4]. Financial Performance - Total revenues for Q3 2024 increased by 201,000to201,000 to 1,179,000, up 20.6% from 978,000inQ32023[2][20].Yeartodaterevenuesfor2024roseby978,000 in Q3 2023 [2][20]. - Year-to-date revenues for 2024 rose by 452,000 to 3,135,000,reflectinga16.83,135,000, reflecting a 16.8% increase from 2,683,000 in the same period of 2023 [3][23]. - Net income attributable to LGL Group common stockholders for Q3 2024 was 72,000,or72,000, or 0.01 per diluted share, down from 108,000,or108,000, or 0.02 per diluted share in Q3 2023 [4][18]. - Year-to-date net income increased to 230,000,or230,000, or 0.04 per diluted share, compared to 135,000,or135,000, or 0.03 per diluted share in 2023, marking a 70.4% increase [6][23]. Cost and Margin Analysis - Gross margin for Q3 2024 decreased to 43.4% from 55.5% in Q3 2023, primarily due to sales of lower-margin products [6][7]. - Year-to-date gross margin also declined to 50.0% from 53.6% in 2023, reflecting similar challenges [7]. Operational Insights - The order backlog as of September 30, 2024, was 505,000,significantlyupfrom505,000, significantly up from 143,000 at the end of 2023 and 313,000ayearearlier,indicatingstrongfuturedemand[8].Cashandcashequivalents,alongwithmarketablesecurities,totaled313,000 a year earlier, indicating strong future demand [8]. - Cash and cash equivalents, along with marketable securities, totaled 41,618,000 as of September 30, 2024, showing a solid liquidity position [3][9]. Segment Performance - In Q3 2024, revenues from Electronic Instruments rose by 48.4% to 650,000,whileMerchantInvestmentrevenuesincreasedby10.8650,000, while Merchant Investment revenues increased by 10.8% to 318,000 [20]. - Corporate segment revenues decreased by 16.6% to 211,000inQ32024[20].ExpenseOverviewTotalexpensesforQ32024increasedby33.6211,000 in Q3 2024 [20]. Expense Overview - Total expenses for Q3 2024 increased by 33.6% to 1,041,000, driven by higher manufacturing costs and increased engineering, selling, and administrative expenses [20][21]. - Manufacturing costs rose to 368,000inQ32024from368,000 in Q3 2024 from 195,000 in Q3 2023, reflecting higher-cost product sales [4][20].