Net sales double year over year to $7.1 million
WESTMINSTER, MA/ACCESSWIRE/August 22, 2022/ TechPrecision Corporation (OTCQB: TPCS) (“TechPrecision” or “the Company”), a leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense and industrial sectors precision, today announced financial results for the first quarter of fiscal 2023 or the three months ended June 30, 2022.
“First quarter consolidated net sales increased $7.1 million or 107% from $3.4 million in the same quarter a year ago,” said Alexander Shen, president and CEO of TechPrecision. . “Our Ranor segment had a strong first quarter with net sales of $4.7 million and gross profit of $1.8 million. Our first quarter net sales also included $2.4 million from our subsidiary Stadco, which was acquired on August 25, 2021.”
“Our Stadco segment is a turnaround,” Mr. Shen said. “We recorded an operating loss at Stadco for the first quarter of fiscal 2023. We continue to focus on managing cash, rebuilding customer and supplier relationships, building a operational discipline, improving gross margins and growing backlog We aggressively grew our total backlog to a solid $45.9 million as of June 30, 2022, an increase of $19.5 million dollars since September 30, 2021, our first quarter that included Stadco. We expect to deliver this backlog over the next one to three fiscal years with improved gross margins in future quarters.”
The following summary compares the first quarter of fiscal 2023 to the first quarter of fiscal 2022:
First Quarter Fiscal 2023 Consolidated Financial Results
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Net sales were $7.1 million, an increase of $3.7 million, due to $2.4 million in incremental revenue from Stadco and $1.3 million in additional revenue. raised at Ranor. |
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Cost of sales was $6.3 million, an increase of $3.7 million, primarily due to additional cost of sales at Stadco. |
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Gross profit was $0.8 million, slightly lower than the same quarter last year. Gross margin percentage was lower due to an unfavorable production mix and unabsorbed factory overhead at Stadco. |
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General and administrative expenses were $1.4 million, an increase of $0.6 million, primarily due to the addition of Stadco, general and administrative expenses, increased expenses for external advisory services and the resumption of business travel to pre-pandemic levels. |
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The operating loss was $0.6 million, compared to a profit of $0.1 million in the same quarter a year ago. |
Financial situation
As of June 30, 2022, TechPrecision had $0.6 million in cash and cash equivalents, a decrease from March 31, 2022. Working capital was $2.6 million as of June 30, 2022, compared to $2.8 million as of March 31, 2022. The Company has access to capital through its existing revolving loan if management determines that it needs to bolster liquidity.
About TechPrecision Corporation
TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc. and Stadco, manufactures large-scale fabricated and machined metal precision components and equipment. These products are used in a variety of markets including: defense, aerospace, nuclear, industrial and medical. TechPrecision’s goal is to be an end-to-end service provider for its customers by providing custom solutions for finished products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the company, please visit the company’s website at https://www.techprecision.com. Information on the Company’s website or any other website does not form part of this press release.
Safe Harbor Statement
This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiaries. All statements other than statements of current or historical facts contained in this press release, including statements that express our intentions, plans, objectives, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions are forward-looking statements. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, ” project”, “outlook”, “will”, “should”, “would” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on management’s current expectations, estimates and projections regarding our business, industry and other conditions affecting our financial condition, results of operations or business prospects. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual results may differ materially from what is expressed or anticipated in, or implied by, forward-looking statements due to numerous risks and uncertainties. Factors that could cause these outcomes and results to differ include, but are not limited to, risks and uncertainties arising from: our reliance on individual purchase orders, rather than long-term contracts, for generate income; our ability to change our revenue mix and effectively control our operating expenses; external factors, including the COVID-19 pandemic, Russia’s invasion of Ukraine, high inflation and rising interest rates, which may be beyond our control; the impacts of the COVID-19 pandemic and government-imposed lockdowns in response thereto; the availability of appropriate funding facilities affecting our operations, financial condition and/or liquidity; our ability to receive contracts through competitive bidding processes; our ability to maintain standards that allow us to manufacture products to exacting specifications; our ability to enter new markets for our services; our reliance on a small number of customers for a significant percentage of our business; competitive pressures in the markets we serve; changes in the availability or cost of raw materials and energy for our production facilities; restrictions in our ability to operate our business due to our unpaid debt; government regulations and requirements; pricing and business development challenges; changes in government spending on national defense; our ability to make acquisitions and successfully integrate those acquisitions into our business; our failure to maintain effective internal controls over financial reporting; general industry and market conditions and growth rates; general industry and market conditions and growth rates; unanticipated costs, charges or expenses resulting from the recently completed acquisition of Stadco; and other risks discussed in the Company’s periodic reports which are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). The results presented in this press release are preliminary and subject to revision until the Company files its Quarterly Report on Form 10-Q for the fiscal year ended June 30, 2022. Any forward-looking statement speaks only as of the date on which it’s done. , and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may occur after the date of this press release, except as required by applicable law. Investors should evaluate all statements we make in light of these important factors.
Company Contact:
Mr. Thomas Sammons
Financial director
TechPrecision Corporation
Phone: 978-883-5109
E-mail: [email protected]
Website: www.techprecision.com
Contact with Investor Relations:
R.I. Hayden
Brett Maas
Phone: 646-536-7331
E-mail: [email protected]
Website: www.haydenir.com
TECHPRECISION CORPORATION
NET SALES, COST OF SALES, GROSS PROFIT BY SEGMENT
(unaudited)
| June 30, 2022 | June 30, 2021 | Changes | ||||||||||||||||||||||
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(dollars in thousands) |
Rising | Percentage of net sales | Rising | Percentage of net sales | Rising | Percentage of net sales | ||||||||||||||||||
|
ranor |
$ | 4,726 | 67 | % | $ | 3,412 | 100 | % | $ | 1,314 | 39 | % | ||||||||||||
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Stadco |
2,350 | 33 | % | — | — | % | 2,350 | nm | % | |||||||||||||||
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Total net sales |
$ | 7,076 | 100 | % | $ | 3,412 | 100 | % | $ | 3,664 | 107 | % | ||||||||||||
|
ranor |
$ | 2,886 | 41 | % | $ | 2,579 | 76 | % | $ | 307 | 12 | % | ||||||||||||
|
Stadco |
3,373 | 48 | % | — | — | % | 3,373 | nm | % | |||||||||||||||
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Total cost of sales |
$ | 6,259 | 89 | % | $ | 2,579 | 76 | % | $ | 3,680 | 143 | % | ||||||||||||
|
ranor |
$ | 1,840 | 26 | % | $ | 833 | 24 | % | $ | 1,007 | 121 | % | ||||||||||||
|
Stadco |
(1,023 | ) | (14 | )% | — | — | % | (1,023 | ) | nm | % | |||||||||||||
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Total gross profit |
$ | 817 | 12 | % | $ | 833 | 24 | % | $ | (16 | ) | (2 | )% | |||||||||||
TECHPRECISION CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
| Quarter ended June 30 | ||||||||
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(dollars in thousands) |
2022 | 2021 | ||||||
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Net cash flow generated by operating activities |
1,449 | 137 | ||||||
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Net cash used in investing activities |
(763 | ) | (4 | ) | ||||
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Net cash used in financing activities |
(1,164 | ) | (27 | ) | ||||
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(Decrease) net increase in cash and cash equivalents |
(478 | ) | 106 | |||||
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Cash and cash equivalents, beginning of period |
1,052 | 2,130 | ||||||
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Cash and cash equivalents, end of period |
$ | 574 | $ | 2,236 | ||||
THE SOURCE: TechPrecision Corp
See the source version on accesswire.com:
https://www.accesswire.com/713053/TechPrecision-Corporation-Reports-First-Quarter-Fiscal-2023-Financial-Results
