TechPrecision .(US:TPCS)2024-03-01 00:47Financial Data and Key Metrics Changes - Consolidated net sales for Q3 2024 were $7.7 million, an 8% decrease from $8.3 million in the same period last year [25] - For the nine months of fiscal 2024, consolidated net sales were $23 million, down 4% from $23.9 million year-over-year [54] - Consolidated gross profit was $1.2 million for Q3 2024, a 23% decrease compared to the same quarter a year ago [2] - Operating loss for Q3 2024 was $1 million, with SG&A expenses increasing by $1 million primarily due to outside advisory costs related to a potential acquisition [25][53] - Net loss for Q3 was $865,000, compared to a net income of $134,000 in the previous year [54] - Total debt increased to $7.6 million as of December 31, 2023, from $6.1 million at the end of March 31, 2023 [57] Business Line Data and Key Metrics Changes - Ranor's gross profit for Q3 2024 was $1.4 million, while Stadco's gross profit was essentially breakeven at a loss of $216,000 [32] - Ranor's backlog increased due to new penetration and recapture of sole-source content in defense programs [31] - Stadco's backlog also increased, featuring significant recapture of military aerospace sole-source content [31] Market Data and Key Metrics Changes - The consolidated backlog strengthened to $50.8 million at December 31, 2023, up from $44.6 million at September 30, 2023 [24] - New bookings over $6 million were captured in January and February 2024 [24] Company Strategy and Development Direction - The company aims to secure and maintain enduring partnerships within the defense sector, focusing on naval submarine and military aircraft manufacturing [11] - There is a strong emphasis on cash management and expense control as part of risk mitigation strategies [1] - The company is focused on tactical execution and risk mitigation to meet customer expectations and retain confidence [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to manage cash and access capital for operations [15] - The company is optimistic about future revenue growth and profitability, driven by a strong backlog and new orders [11] - Management acknowledged the challenges faced by Stadco but indicated that improvements are being made [71] Other Important Information - The company has been instructed not to discuss specific details regarding the potential acquisition due to legal constraints [44][96] - Management highlighted the importance of customer requirements and confidentiality in their operations [8][9] Q&A Session Summary Question: How do you feel about your cash and access to capital right now? - Management feels safe about their current cash position and access to capital [15] Question: How do you expect to manage cash flow for the acquisition? - Management indicated that they cannot legally discuss the acquisition details at this time [44] Question: Are you winning business from competitors who are unable to execute? - Management confirmed that they are winning new orders and part numbers, including business from competitors who have struggled [70] Question: What is the status of deferred maintenance issues at Stadco? - Management stated that they are making progress but cannot specify how close they are to resolving all issues [90] Question: Can you provide insight into the confidence in the Votaw forecast numbers? - Management indicated that the published numbers reflect their best estimates and show expected growth [82]