Results reflect challenging economic conditions as well as decline in sales to semiconductor wafer fab customers and project delays across the Company’s GES business.
Backlog increased 2% over the past three months, which management believes indicates stabilizing demand.
Company implements new ownership requirements for outside directors.
LAFOX, Ill.,
“Although our second quarter results fell short of expectations, we are confident that our current pipeline of existing projects as well as new global opportunities within our GES business will drive significant long-term value for our company,” said
“While we expect difficult economic conditions to remain over the near term, we believe the stabilization in our backlog, as well as recent customer indications, will support sequential revenue growth in the third and fourth quarters. Specifically, we anticipate improving sales trends within our GES business in the second half of fiscal 2024 to offset the continued weakness we are experiencing in the semiconductor wafer fab market. The expansion of our product roadmap for green energy solutions continues to add new customers and programs for wind, EV rail and other applications that take advantage of energy transition initiatives underway throughout the world. As we navigate a more challenging operating environment over the near-term, we are focused on controlling operating expenses, improving our operating cash flow, and prudently managing working capital requirements,” concluded
Second Quarter Results
Net sales for the second quarter of fiscal 2024 decreased 33.0% to
Gross margin was 28.4% of net sales during the second quarter of fiscal 2024, compared to 33.2% during the second quarter of fiscal 2023. Without the under absorption of the Company’s manufacturing facility, management estimates that the Company’s consolidated gross margin for the fiscal 2024 second quarter would have been 31.3%. PMT gross margin decreased to 28.5% from 34.5% due to product mix and
Operating expenses were
The Company reported an operating loss of
Income tax benefit was
Net loss for the second quarter of fiscal 2024 was
Cash and investments were
Financial Summary for the Six Months Ended
- Net sales for the first six months of fiscal 2024 were
$96.7 million , a decrease of 27.5%, compared to net sales of$133.5 million during the first six months of fiscal 2023. Sales decreased by$18.9 million or 22.0% for PMT,$13.8 million or 66.3% for GES,$3.3 million or 16.2% for Canvys and$0.7 million or 11.8% forRichardson Healthcare . - Gross profit decreased to
$29.8 million during the first six months of fiscal 2024, compared to$44.9 million during the first six months of fiscal 2023. As a percentage of net sales, gross margin decreased to 30.8% of net sales during the first six months of fiscal 2024, compared to 33.6% of net sales during the first six months of fiscal 2023, primarily because of product mix and manufacturing under absorption in PMT, as well as increased scrap expense and manufacturing under absorption in Healthcare, partially offset by a favorable product mix and lower freight costs in Canvys. - Operating expenses increased to
$30.3 million for the first six months of fiscal 2024, compared to$28.9 million for the first six months of fiscal 2023. The increase in operating expenses resulted from higher employee compensation expenses. - Operating loss during the first six months of fiscal 2024 was
$0.5 million , compared to operating income of$16.0 million during the first six months of fiscal 2023. - Other expense for the first six months of fiscal 2024, including interest income and foreign exchange, was
$0.1 million , as compared to other expense of$0.5 million in the first six months of fiscal 2023. - The income tax benefit was
$0.1 million or an effective tax rate of 16.5% for the first six months of fiscal 2024 compared to an income tax provision of$3.6 million or an effective tax rate of 23.4% during the first six months of fiscal 2023. - Net loss for the first six months of fiscal 2024 was
$0.6 million , versus net income of$11.9 million during the first six months of fiscal 2023. Net loss per common share (diluted) was$0.04 for the first six months of fiscal 2024 compared to$0.83 earnings per common share (diluted) for the first six months of fiscal 2023.
CASH DIVIDEND DECLARED
The Board of Directors of
CONFERENCE CALL INFORMATION
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FORWARD-LOOKING STATEMENTS
This release includes certain “forward-looking” statements as defined by the
ABOUT
Consolidated Balance Sheets | ||||||||
(in thousands, except per share amounts) | ||||||||
Unaudited | Audited | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 22,769 | $ | 24,981 | ||||
Accounts receivable, less allowance of | 23,909 | 30,067 | ||||||
Inventories, net | 116,951 | 110,402 | ||||||
Prepaid expenses and other assets | 2,926 | 2,633 | ||||||
Total current assets | 166,555 | 168,083 | ||||||
Non-current assets: | ||||||||
Property, plant and equipment, net | 21,363 | 20,823 | ||||||
Intangible assets, net | 1,767 | 1,892 | ||||||
Right of use lease asset | 2,145 | 2,457 | ||||||
Deferred income taxes | 4,476 | 4,526 | ||||||
Other non-current assets | 182 | 267 | ||||||
Total non-current assets | 29,933 | 29,965 | ||||||
Total assets | $ | 196,488 | $ | 198,048 | ||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 22,505 | $ | 23,535 | ||||
Accrued liabilities | 12,432 | 12,026 | ||||||
Lease liability current | 1,033 | 1,028 | ||||||
Total current liabilities | 35,970 | 36,589 | ||||||
Non-current liabilities: | ||||||||
Non-current deferred income tax liabilities | 99 | 98 | ||||||
Lease liability non-current | 1,112 | 1,429 | ||||||
Other non-current liabilities | 666 | 612 | ||||||
Total non-current liabilities | 1,877 | 2,139 | ||||||
Total liabilities | 37,847 | 38,728 | ||||||
Stockholders’ Equity | ||||||||
Common stock, December 2, 2023 and 12,140 shares issued and outstanding on | 611 | 607 | ||||||
Class B common stock, convertible, and outstanding on outstanding on | 103 | 103 | ||||||
Preferred stock, | — | — | ||||||
Additional paid-in-capital | 71,936 | 70,951 | ||||||
Retained earnings | 84,786 | 87,044 | ||||||
Accumulated other comprehensive income | 1,205 | 615 | ||||||
Total stockholders' equity | 158,641 | 159,320 | ||||||
Total liabilities and stockholders’ equity | $ | 196,488 | $ | 198,048 | ||||
Unaudited Consolidated Statements of Comprehensive (Loss) Income | ||||||||||||||||
(in thousands, except per share amounts) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Net sales | $ | 44,130 | $ | 65,905 | $ | 96,711 | $ | 133,462 | ||||||||
Cost of sales | 31,588 | 44,054 | 66,905 | 88,584 | ||||||||||||
Gross profit | 12,542 | 21,851 | 29,806 | 44,878 | ||||||||||||
Selling, general and administrative expenses | 14,488 | 14,677 | 30,280 | 28,925 | ||||||||||||
Loss (gain) on disposal of assets | 70 | (25 | ) | 70 | (25 | ) | ||||||||||
Operating (loss) income | (2,016 | ) | 7,199 | (544 | ) | 15,978 | ||||||||||
Other expense (income): | ||||||||||||||||
Investment/interest income | (86 | ) | (78 | ) | (157 | ) | (103 | ) | ||||||||
Foreign exchange loss | 343 | 223 | 246 | 597 | ||||||||||||
Other, net | 18 | (13 | ) | 50 | (15 | ) | ||||||||||
Total other expense | 275 | 132 | 139 | 479 | ||||||||||||
(Loss) income before income taxes | (2,291 | ) | 7,067 | (683 | ) | 15,499 | ||||||||||
Income tax (benefit) provision | (494 | ) | 1,518 | (113 | ) | 3,626 | ||||||||||
Net (loss) income | (1,797 | ) | 5,549 | (570 | ) | 11,873 | ||||||||||
Foreign currency translation gain (loss), net of tax | 631 | 976 | 590 | (1,339 | ) | |||||||||||
Comprehensive (loss) income | $ | (1,166 | ) | $ | 6,525 | $ | 20 | $ | 10,534 | |||||||
Net (loss) income per share: | ||||||||||||||||
Common shares - Basic | $ | (0.13 | ) | $ | 0.40 | $ | (0.04 | ) | $ | 0.87 | ||||||
Class B common shares - Basic | (0.12 | ) | 0.36 | (0.04 | ) | 0.78 | ||||||||||
Common shares - Diluted | (0.13 | ) | 0.39 | (0.04 | ) | 0.83 | ||||||||||
Class B common shares - Diluted | (0.12 | ) | 0.35 | (0.04 | ) | 0.75 | ||||||||||
Weighted average number of shares: | ||||||||||||||||
Common shares – Basic | 12,226 | 11,918 | 12,198 | 11,816 | ||||||||||||
Class B common shares – Basic | 2,052 | 2,053 | 2,052 | 2,053 | ||||||||||||
Common shares – Diluted | 12,226 | 12,535 | 12,198 | 12,442 | ||||||||||||
Class B common shares – Diluted | 2,052 | 2,053 | 2,052 | 2,053 | ||||||||||||
Dividends per share: | ||||||||||||||||
Common share | $ | 0.060 | $ | 0.060 | $ | 0.120 | $ | 0.120 | ||||||||
Class B common share | 0.054 | 0.054 | 0.108 | 0.108 | ||||||||||||
Unaudited Consolidated Statements of Cash Flows | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
Operating activities: | ||||||||||||||||
Net (loss) income | $ | (1,797 | ) | $ | 5,549 | $ | (570 | ) | $ | 11,873 | ||||||
Adjustments to reconcile net (loss) income to cash provided by (used in) operating activities: | ||||||||||||||||
Depreciation and amortization | 1,116 | 893 | 2,114 | 1,776 | ||||||||||||
Inventory provisions | 192 | 124 | 277 | 195 | ||||||||||||
Share-based compensation expense | 283 | 213 | 766 | 524 | ||||||||||||
Loss (gain) on disposal of assets | 70 | (25 | ) | 70 | (25 | ) | ||||||||||
Deferred income taxes | 51 | 27 | 46 | 28 | ||||||||||||
Change in assets and liabilities: | ||||||||||||||||
Accounts receivable | 1,790 | (2,009 | ) | 6,252 | (5,505 | ) | ||||||||||
Inventories | (3,069 | ) | (7,658 | ) | (6,220 | ) | (18,126 | ) | ||||||||
Prepaid expenses and other assets | (618 | ) | 774 | (209 | ) | (425 | ) | |||||||||
Accounts payable | 1,233 | (699 | ) | (1,132 | ) | 796 | ||||||||||
Accrued liabilities | 1,502 | (1,062 | ) | 378 | 1,147 | |||||||||||
Other | 47 | (49 | ) | 43 | 589 | |||||||||||
Net cash provided by (used in) operating activities | 800 | (3,922 | ) | 1,815 | (7,153 | ) | ||||||||||
Investing activities: | ||||||||||||||||
Capital expenditures | (1,515 | ) | (1,301 | ) | (2,656 | ) | (2,743 | ) | ||||||||
Proceeds from sale of property, plant & equipment | — | 193 | — | 193 | ||||||||||||
Net cash used in investing activities | (1,515 | ) | (1,108 | ) | (2,656 | ) | (2,550 | ) | ||||||||
Financing activities: | ||||||||||||||||
Proceeds from issuance of common stock | 15 | 1,517 | 342 | 2,902 | ||||||||||||
Cash dividends paid on Common and Class | (845 | ) | (831 | ) | (1,688 | ) | (1,650 | ) | ||||||||
Other | — | — | (119 | ) | (69 | ) | ||||||||||
Net cash (used in) provided by financing activities | (830 | ) | 686 | (1,465 | ) | 1,183 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | 190 | (183 | ) | 94 | (869 | ) | ||||||||||
Decrease in cash and cash equivalents | (1,355 | ) | (4,527 | ) | (2,212 | ) | (9,389 | ) | ||||||||
Cash and cash equivalents at beginning of period | 24,124 | 30,633 | 24,981 | 35,495 | ||||||||||||
Cash and cash equivalents at end of period | $ | 22,769 | $ | 26,106 | $ | 22,769 | $ | 26,106 | ||||||||
Unaudited Net Sales and Gross Profit | ||||||||||||||||
For the Second Quarter and First Six Months of Fiscal 2024 and 2023 | ||||||||||||||||
($ in thousands) | ||||||||||||||||
By Strategic Business Unit: | ||||||||||||||||
Q2 FY 2024 | Q2 FY 2023 | % Change | ||||||||||||||
PMT | $ | 31,292 | $ | 40,585 | -22.9 | % | ||||||||||
GES | 2,609 | 12,293 | -78.8 | % | ||||||||||||
Canvys | 7,291 | 10,079 | -27.7 | % | ||||||||||||
Healthcare | 2,938 | 2,948 | -0.3 | % | ||||||||||||
Total | $ | 44,130 | $ | 65,905 | -33.0 | % | ||||||||||
YTD FY 2024 | YTD FY 2023 | % Change | ||||||||||||||
PMT | $ | 67,036 | $ | 85,939 | -22.0 | % | ||||||||||
GES | 7,003 | 20,804 | -66.3 | % | ||||||||||||
Canvys | 17,180 | 20,492 | -16.2 | % | ||||||||||||
Healthcare | 5,492 | 6,227 | -11.8 | % | ||||||||||||
Total | $ | 96,711 | $ | 133,462 | -27.5 | % | ||||||||||
Gross Profit | ||||||||||||||||
Q2 FY 2024 | % of Net Sales | Q2 FY 2023 | % of | |||||||||||||
PMT | $ | 8,905 | 28.5 | % | $ | 14,011 | 34.5 | % | ||||||||
GES | 761 | 29.2 | % | 4,162 | 33.9 | % | ||||||||||
Canvys | 2,440 | 33.5 | % | 2,995 | 29.7 | % | ||||||||||
Healthcare | 436 | 14.8 | % | 683 | 23.2 | % | ||||||||||
Total | $ | 12,542 | 28.4 | % | $ | 21,851 | 33.2 | % | ||||||||
YTD FY 2024 | % of Net Sales | YTD FY 2023 | % of Net Sales | |||||||||||||
PMT | $ | 20,416 | 30.5 | % | $ | 29,546 | 34.4 | % | ||||||||
GES | 2,341 | 33.4 | % | 7,184 | 34.5 | % | ||||||||||
Canvys | 5,805 | 33.8 | % | 6,261 | 30.6 | % | ||||||||||
Healthcare | 1,244 | 22.7 | % | 1,887 | 30.3 | % | ||||||||||
Total | $ | 29,806 | 30.8 | % | $ | 44,878 | 33.6 | % | ||||||||
For Details Contact: | |
Chairman and CEO | EVP & CFO |
Phone: (630) 208-2320 | (630) 208-2203 |
40W267 | |
PO BOX 393 | |
LaFox, IL 60147-0393 | |
(630) 208-2200 | Fax: (630) 208-2550 |
Source:
2024 GlobeNewswire, Inc., source