Sales Order Backlog up 30% since March 31, 2019
WESTMINSTER, MA / ACCESSWIRE / November 13, 2019 / TechPrecision Corporation (OTCQB:TPCS) ('TechPrecision' or 'the Company'), an industry leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, today reported financial results for the second quarter and six months ended September 30, 2019.
'Our results for the second quarter were impacted by increased costs associated with a loss provision for certain projects in progress, and under-absorbed factory overhead incurred as we start up on new projects,' stated Alexander Shen, TechPrecision's Chief Executive Officer. 'However, with all of the new projects coming online in the second quarter, we expect to return to profitability during the second half of fiscal 2020.'
The first six months of fiscal 2020 were highlighted by a $3.8 million increase in our sales order backlog to $16.4 million compared to March 31, 2019, a result of booking approximately $11 million of additional orders over the period. In addition, the Company generated $0.9 million of cash from operations in the six months ended September 30, 2019. New project startup activity during the second quarter should provide sequential revenue improvement over the final two quarters of fiscal 2020.
Second Quarter of Fiscal 2020 Financial Results
Net sales were $3.1 million or 15% lower when compared to $3.6 million in the same quarter a year ago.
Gross profit was $0.4 million, down from $1.1 million in the same quarter last year.
SG&A was $741,000 or $10,000 lower than the same quarter last year.
Operating loss was $327,000 compared to operating income of $344,000 in the same period a year ago.
Six Months of Fiscal 2020 Financial Results
Net sales were $7.4 million or 4% lower when compared to $7.7 million in the same period a year ago.
Gross profit was $1.5 million, down 29% when compared to the same period last year.
SG&A was $1.5 million, unchanged from the same period last year.
Operating income was $41,000 compared to operating income of $666,000 in the same period a year ago.
Net income (loss) was $0.4 million lower when compared to the same period a year ago.
EBITDA was $0.6 million lower when compared to the same period a year ago.
At September 30, 2019, TechPrecision had $2.6 million in cash, and working capital of $6.2 million compared to $2.0 million in cash and working capital of $6.3 million at March 31, 2019.
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on November 13, 2019. To participate in the live conference call, please dial 1-844-407-9500 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-862-298-0850. When prompted, reference TechPrecision.
A replay will be available until December 13, 2019. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 56570. The call will also be available over the Internet at https://www.investornetwork.com/event/presentation/56570.
About TechPrecision Corporation
TechPrecision Corporation, through its wholly owned subsidiary, Ranor, Inc., manufactures large-scale, metal fabricated and machined 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 to its customers by furnishing customized solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.
Safe Harbor Statement
This release contains certain 'forward-looking statements' relating to the business of the Company and its subsidiary companies. All statements other than statements of current or historical fact 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,' 'will,' 'should,' 'would' and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections made by management about our business, our 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 outcomes and results may differ materially from what is expressed or forecasted in, or implied by, the forward-looking statements due to numerous risks and uncertainties. Factors that could cause such 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, to generate revenue; our ability to balance the composition of our revenues and effectively control operating expenses; the availability of appropriate financing facilities impacting our operations, financial condition and/or liquidity; our ability to receive contract awards through competitive bidding processes; our ability to maintain standards to enable 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; operating in a single geographic location; restrictions in our ability to operate our business due to our outstanding indebtedness; government regulations and requirements; pricing and business development difficulties; changes in government spending on national defense; our ability to make acquisitions and successfully integrate those acquisitions with our business; general industry and market conditions and growth rates; general economic conditions; and other risks discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). Any forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law. Investors should evaluate any statements made by us in light of these important factors.