The LGL (US:LGL) Newsfileยท2024-11-13 21:44Core 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 $201,000 to $1,179,000, up 20.6% from $978,000 in Q3 2023 [2][20]. - Year-to-date revenues for 2024 rose by $452,000 to $3,135,000, 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, or $0.01 per diluted share, down from $108,000, or $0.02 per diluted share in Q3 2023 [4][18]. - Year-to-date net income increased to $230,000, or $0.04 per diluted share, compared to $135,000, 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, significantly up from $143,000 at the end of 2023 and $313,000 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, while Merchant Investment revenues increased by 10.8% to $318,000 [20]. - Corporate segment revenues decreased by 16.6% to $211,000 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 $368,000 in Q3 2024 from $195,000 in Q3 2023, reflecting higher-cost product sales [4][20].