M-tron Industries, Inc. (NYSE American: MPTI) (“Company” or “MtronPTI”) announced its financial results for the three and nine months ended September 30, 2023. Management will host an earnings...
Autore: Business Wire
ORLANDO, Fla.: M-tron Industries, Inc. (NYSE American: MPTI) (“Company” or “MtronPTI”) announced its financial results for the three and nine months ended September 30, 2023. Management will host an earnings call on Thursday, November 16, 2023 at 10:30am EST.
Michael Ferrantino, MtronPTI’s Chief Executive Officer, stated, “MtronPTI and its employees performed very well during the third quarter, resulting in additional incremental revenues and improved profitability exceeding expectations. The commitment of MtronPTI and its employees to continued and profitable growth while supporting our customers' demands is unwavering.”
Results from Operations
Revenue for the three months ended September 30, 2023 increased $2.5 million, or 29.4%, to $10.9 million from $8.4 million for the three months ended September 30, 2022. Revenue for the nine months ended September 30, 2023 increased $7.2 million, or 31.2%, to $30.4 million from $23.2 million for the nine months ended September 30, 2022. The revenue increase reflects strong defense product shipments. Gross margin was 42.8% for the three months ended September 30, 2023, compared to 32.4% for the comparable period in the prior year, as a result of a favorable product mix. Gross margins for the nine months ended September 30, 2023 were 39.7% compared to 35.6% for the comparable prior year period benefiting from favorable product mix and the increase in business volume.
Backlog was $50.3 million at September 30, 2023 compared to $46.2 million at the beginning of the year and $44.1 million at the end of the third quarter of 2022. Backlog has generally increased during 2023 due to an increase in defense product orders. Supply chain constraints within the defense industry appear to be moderating but continue to push our customers to order in advance to secure product deliveries for their production requirements.
The Company reported operating income of $4,359,000 for the nine months ended September 30, 2023 compared to operating income of $2,047,000 for the nine months ended September 30, 2022. The increase reflects both higher revenue and higher margins impacted by favorable product mix, as described above. For the nine months ended September 30, 2023, engineering, selling and administrative costs increased $1,508,000 primarily as a result of $1,234,000 of administrative cost increases in the nine months ended September 30, 2023, which included public company costs of $735,000, increased salaries and employee benefits of $328,000, increased audit and tax costs of $97,000, and other miscellaneous cost increases of $74,000. The public company costs of $735,000 represent the incremental direct costs of being a public company, with no comparable amounts being recorded within the prior year when results were presented on a standalone basis.
Net income was $3,416,000 for the nine months ended September 30, 2023 compared to $1,608,000 for the nine months September 30, 2022. The increase for the nine months ended September 30, 2023 was primarily from the previously discussed items. Basic net income per share for the nine months ended September 30, 2023 and 2022 was $1.27 and $0.60, respectively. Diluted net income per share for the three months ended September 30, 2023 and 2022 was $0.57 and $0.19, respectively.
Adjusted EBITDA was $2,336,000 for the three months ended September 30, 2023 versus $876,000 for the three months ended September 30, 2022 which was reported on a standalone basis. Adjusted EBITDA was $5,295,000 for the nine months ended September 30, 2023 versus $2,894,000 for the nine months ended September 30, 2022. Note that adjusted EBITDA on a standalone basis for the three and nine months ended September 30, 2022 does not include any adjustments for the potential impact from the additional costs of being a publicly traded company.
Investor Call
MtronPTI's CEO, Michael Ferrantino and CFO, James Tivy will host an earnings call on Thursday, November 16, 2023 at 10:30am EST to discuss our Q3, 2023 earnings and respond to investor questions directly.
The call can be accessed using the following dial-in details:
Toll-Free Dial-In Number: (888) 440-4199
Toll Dial-In Number: (646) 960-0818
Conference ID: 6978153
An archive of the call will be available after the call on the Events and Presentations page on the Investor Relations section of MtronPTI’s website at https://ir.mtronpti.com/events-and-presentations/default.aspx, along with MtronPTI’s earnings press release.
M-tron Industries, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Amounts in Thousands, Except Share and Per Share Amounts) | ||||||||||||||||
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| Three Months Ended |
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| Nine Months Ended |
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|
| September 30, |
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| September 30, |
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|
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| ||||
REVENUES |
| $ | 10,888 |
|
| $ | 8,417 |
|
| $ | 30,395 |
|
| $ | 23,172 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing cost of sales |
|
| 6,230 |
|
|
| 5,688 |
|
|
| 18,322 |
|
|
| 14,919 |
|
Engineering, selling and administrative |
|
| 2,625 |
|
|
| 2,099 |
|
|
| 7,714 |
|
|
| 6,206 |
|
OPERATING INCOME |
|
| 2,033 |
|
|
| 630 |
|
|
| 4,359 |
|
|
| 2,047 |
|
Total other income (expense), net |
|
| 13 |
|
|
| (16 | ) |
|
| (12 | ) |
|
| (47 | ) |
INCOME BEFORE INCOME TAXES |
|
| 2,046 |
|
|
| 614 |
|
|
| 4,347 |
|
|
| 2,000 |
|
Income tax provision (benefit) |
|
| 460 |
|
|
| 111 |
|
|
| 931 |
|
|
| 392 |
|
NET INCOME |
| $ | 1,586 |
|
| $ | 503 |
|
| $ | 3,416 |
|
| $ | 1,608 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of basic shares |
|
| 2,703,840 |
|
|
| 2,676,469 |
|
|
| 2,693,400 |
|
|
| 2,676,469 |
|
net income per basic share |
| $ | 0.59 |
|
| $ | 0.19 |
|
| $ | 1.27 |
|
| $ | 0.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of diluted shares |
|
| 2,759,780 |
|
|
| 2,676,469 |
|
|
| 2,739,819 |
|
|
| 2,676,469 |
|
net income per diluted share |
| $ | 0.57 |
|
| $ | 0.19 |
|
| $ | 1.25 |
|
| $ | 0.60 |
|
M-tron Industries, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
(Amounts in Thousands) | ||||||||
|
| September 30, 2023 |
|
| December 31, 2022 |
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ASSETS |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 2,552 |
|
| $ | 926 |
|
Accounts receivable, net |
|
| 5,031 |
|
|
| 5,197 |
|
Inventories, net |
|
| 8,962 |
|
|
| 7,518 |
|
Prepaid expenses and other current assets |
|
| 419 |
|
|
| 673 |
|
Total Current Assets |
|
| 16,964 |
|
|
| 14,314 |
|
Property, plant, and equipment, net |
|
| 3,635 |
|
|
| 3,647 |
|
Right-of-use lease asset |
|
| 106 |
|
|
| 147 |
|
Intangible assets, net |
|
| 58 |
|
|
| 98 |
|
Deferred income taxes, net |
|
| 1,010 |
|
|
| 1,051 |
|
Other assets, net |
|
| 12 |
|
|
| 16 |
|
Total Assets |
| $ | 21,785 |
|
| $ | 19,273 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Total Current Liabilities |
|
| 3,992 |
|
|
| 4,856 |
|
Long-Term Liabilities |
|
| 40 |
|
|
| 76 |
|
Total Liabilities |
|
| 4,032 |
|
|
| 4,932 |
|
Total Stockholders' Equity |
|
| 17,753 |
|
|
| 14,341 |
|
Total Liabilities and Stockholders' Equity |
| $ | 21,785 |
|
| $ | 19,273 |
|
Reconciliations of GAAP to Non-GAAP Measures
To supplement our consolidated financial statements presented on a GAAP (generally accepted accounting principles) basis, the Company uses certain non-GAAP measures, including Adjusted EBITDA, which we define as net income before income taxes adjusted to exclude depreciation and amortization expense, interest income and expense, stock-based compensation expense, and other items we believe are discrete events which have a significant impact on comparable GAAP measures and could distort an evaluation of our normal operating performance. These adjustments to our GAAP results are made with the intent of providing both management and investors with a more complete understanding of the underlying operational results and trends and our marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with GAAP.
Reconciliation of GAAP Income Before Income Taxes to Non-GAAP Adjusted EBITDA:
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| Three Months Ended |
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| Nine Months Ended |
| ||||||||||
|
| September 30, |
|
| September 30, |
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(Amounts in thousands, except share amounts) |
| 2023 |
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