TECHPRECISION CORP SEC 10-Q Report

TechPrecision Corp, a leading manufacturer of precision components for the defense and aerospace markets, has released its Form 10-Q report for the third quarter of 2024. The report provides a detailed overview of the company's financial performance and operational highlights, showcasing significant revenue growth alongside ongoing production challenges.

Financial Highlights

• Revenue: $8.946 million, increased by 12% compared to the same period last year, driven by higher project volumes at both Ranor and Stadco.
• Gross Profit: $1.014 million, representing a slight decrease of 2% from the previous year, with a gross margin of 11% compared to 13% last year.
• Operating Loss: $0.488 million, improved by 18% from the previous year's loss, primarily due to increased operating income at Ranor and reduced corporate expenses.
• Net Loss: $0.601 million, consistent with the previous year's net loss, reflecting ongoing challenges in production efficiency at Stadco.
• Net Loss Per Share: $0.06, unchanged from the same period last year, indicating stable share performance despite operational challenges.

Business Highlights

• Revenue Segments: The company operates through two main segments, Ranor and Stadco, both of which focus on manufacturing precision components primarily for defense and aerospace markets. Ranor contributed 54% to the total revenue, while Stadco contributed 46% for the six months ended September 30, 2024.
• Operational Performance: Ranor's operations are based in North Central Massachusetts, leveraging a 145,000 square foot facility to provide custom solutions in precision fabrication and machining. Stadco operates in Los Angeles, California, with a 183,000 square foot facility, focusing on mission-critical components for military aircraft and space programs.
• Customer Segments: The company serves a diverse customer base, with a significant portion of its revenue derived from the defense sector. Ranor generates over 95% of its revenue from defense-related projects, while Stadco also primarily serves defense customers.
• Production Challenges: Stadco faced production issues that led to under-absorbed overhead and increased project losses, impacting its gross margin negatively. Efforts are ongoing to address these challenges and improve operational efficiency.
• Future Outlook: The company is focused on improving profitability at Stadco by enhancing manufacturing processes and increasing utilization of its production capacity. Additionally, the company is exploring alternative financing options to strengthen its liquidity position.
• Geographical Performance: All operations and customers are located within the United States, with no significant geographical diversification reported.
• Management Insights: Management is actively working to mitigate recurring operating losses at Stadco and is closely monitoring expenses to enhance liquidity. The company is also focused on renewing its revolver loan or seeking alternative financing to support ongoing operations.

SEC Filing: TECHPRECISION CORP [ TPCS ] - 10-Q - Jan. 21, 2025