M-tron Industries, Inc. (NYSE American: MPTI) (“Company” or
“MtronPTI”) announced its financial results for the fiscal year
ended December 31, 2022.
- Revenue of $8.7 million for the three months ended December 31,
2022, an increase of 26.4% compared to $6.9 million for the
comparable prior year period. For the fiscal year ended December
31, 2022, revenues were $31.8 million, a 19.3% increase from $26.7
million for the prior year.
- Basic and diluted net income of $0.07 per share compared to
$0.01 for the prior year quarter, and income per share of $0.67 for
the fiscal year versus income of $0.59 for the prior year.
- Backlog of $46.2 million at December 31, 2022, an increase of
5% compared with $44.1 million at the end of Q3, 2022, and up 57%
compared to $29.4 million at December 31, 2021.
- Free cash flow conversion, a Non-GAAP ratio that measures the
company's ability to convert profits into free cash flow,
representing cash from operations minus capital expenditures, as a
percentage of cash from operations, was 60% for 2022, after
adjusting for the $219,000 in excess spin-off costs.
- Adjusted EBITDA, a Non-GAAP measure, was $4.0 million for the
fiscal year ended December 31, 2022 versus $3.0 million for the
prior year.
Michael Ferrantino, MtronPTI’s Chief Executive Officer, stated,
“MtronPTI increased its backlog for a fourth straight quarter and
is looking forward to recording revenue from this increased backlog
throughout 2023 and into 2024, while focusing on maintaining and
improving margins wherever possible, and being vigilant on general
and administrative costs. With our current resources and our valued
customers and employees we are well positioned for growth as we
start out our first full year as a public company.”
Results from Operations
The Company has one business segment; electronic components,
focused on the design, manufacture and marketing of highly
engineered, high reliability frequency and spectrum control
products. These electronic components ensure reliability and
security in aerospace and defense communications, low noise and
base accuracy for laboratory instruments, and synchronous data
transfers throughout the wireless and Internet infrastructure.
Total revenues were $8,673,000 for the three months ended
December 31, 2022, or 26.4% above revenues of $6,860,000 for the
three months ended December 31, 2021. Total revenues were
$31,845,000 for the fiscal year ended December 31, 2022, or 19.3%
above revenues of $26,694,000 for the fiscal year ended December
31, 2021. The revenue increase reflects the recovering avionics
market and strong defense product shipments.
Gross margin improved to 35.7% for the three months ended
December 31, 2022, from 34.1% for the three months ended December
31, 2021 and improved to 35.6% for the fiscal year ended December
31, 2022, from 35.0% for the fiscal year ended December 31, 2021
primarily reflecting the impact from higher revenues. While we
continue to experience the effects of increased turnover that began
during the COVID-19 pandemic (“Covid”), which increases our labor
costs while also impacting productivity as we work to train new
employees, we do see signs of improvement.
Backlog was $46,180,000, an increase of 5% from $44,074,000 at
September 30, 2022 and an increase of 57% compared to the backlog
of $29,439,000 as of December 31, 2021. The Company attained record
backlog levels as of December 31, 2022. Quarterly bookings were
$10,779,000, $9,259,000, $13,473,000 and $15,075,000 for the
fourth, third, second and first quarters of 2022, respectively and
$14,524,000 for the fourth quarter of 2021. This booking trend in
excess of our product shipments reflects strong defense orders,
much of which is expected to ship throughout 2023 and into 2024.
Strong orders from the recovering avionics market also drove the
increase in 2022 bookings over 2021 bookings. Supply chain
constraints within our industry have pushed our customers to order
well in advance to secure product deliveries for their production
requirements.
The Company reported operating income of $828,000 for the fourth
quarter of 2022 compared to operating income of $198,000 for the
fourth quarter of 2021 and $2,875,000 for the fiscal year ended
December 31, 2022 compared to operating income of $2,114,000 for
the fiscal year ended December 31, 2021. The increase for the three
months reflects higher revenue and slightly higher margins offset
by product mix and inflationary pressures in the fourth quarter of
2022. The increase for the fiscal year reflects higher revenue and
margins partly offset by inflationary cost pressures and increased
stock compensation expense in 2022.
Net income was $190,000 for the three months ended December 31,
2022 compared to $26,000 for the three months ended December 31,
2021, and $1,798,000 for the fiscal year ended December 31, 2022
compared to $1,582,000 for the fiscal year ended December 31, 2021.
The increase for the three months was primarily from increased
business volume, offset by inflation and increased operating costs.
The increase for the fiscal year was primarily from the previously
discussed increased business volume partly offset by certain
unfavorable operating costs. Basic and diluted net income per share
for the three months ended December 31, 2022 and 2021 was $0.07 and
$0.01, respectively, and for the fiscal year ended December 31,
2022 and 2021 was $0.67 and $0.59, respectively.
Adjusted EBITDA, a Non-GAAP measure, was $4,008,000 for the
fiscal year ended December 31, 2022 versus $2,959,000 for the
fiscal year ended December 31, 2021. Adjusted EBITDA does not
include the potential impact from additional costs of being a
publicly traded company for all periods prior to MtronPTI’s
spin-off on October 7, 2022.
MtronPTI’s Separation
On August 3, 2022, The LGL Group, Inc. (“LGL Group,” “LGL” or
the “Former Parent”) announced that its Board of Directors approved
the previously announced separation of the MtronPTI business into
an independent, publicly traded company (the "Separation").
On October 7, 2022, the Separation was completed through LGL
Group’s distribution of 100% of the shares of the Company’s common
stock to holders of LGL Group's common stock as of the close of
business on August 12, 2022, the record date for the Distribution.
As a result of the Distribution, LGL Group's stockholders of record
received one-half of one share of the Company's common stock for
every share of LGL Group's common stock held by them. On October 7,
2022, the Company became an independent, publicly traded company
trading on the NYSE American under the stock symbol "MPTI." LGL
Group retained no ownership interest in the Company as of the
completion of the Separation.
In connection with the Separation, the Company wrote off
$4,439,000 of intercompany receivables due from LGL Group, which
brought intercompany balances to zero, and also made a cash payment
of approximately $6,000 to LGL Group on October 7, 2022, bringing
the Company’s cash balance to $1,000,000 as of the date of the
Separation.
We believe the Separation of MtronPTI will allow the Company to
tailor its strategic plans and growth opportunities, more
efficiently raise and allocate resources, including capital raised
through debt or equity offerings, provide flexibility to use its
own stock as currency for incentive compensation and potential
acquisitions and provide investors a more targeted investment
opportunity.
M-tron Industries,
Inc.
Condensed Consolidated and
Combined Statements of Operations
(Amounts in Thousands, Except
Share and Per Share Amounts)
Quarter ended
Fiscal Year ended
December 31,
December 31,
(Unaudited)
(Amounts in thousands, except share
amounts)
2022
2021
2022
2021
REVENUES
$
8,673
$
6,860
$
31,845
$
26,694
Costs and expenses:
Manufacturing cost of sales
5,580
4,520
20,499
17,358
Engineering, selling and
administrative
2,265
2,142
8,471
7,222
OPERATING INCOME
828
198
2,875
2,114
Interest expense, net
(5
)
(3
)
(11
)
(12
)
Other (expense) income, net
(228
)
(10
)
(269
)
11
INCOME BEFORE INCOME TAXES
595
185
2,595
2,113
Income tax provision
405
159
797
531
NET INCOME
$
190
$
26
$
1,798
$
1,582
Weighted average number of shares used in
basic EPS calculation
2,676,512
2,676,469
2,676,480
2,676,469
Weighted average number of shares used in
diluted EPS calculation
2,693,035
2,676,469
2,676,524
2,676,469
BASIC NET (LOSS) INCOME PER COMMON
SHARE
$
0.07
$
0.01
$
0.67
$
0.59
DILUTED NET (LOSS) INCOME PER COMMON
SHARE
$
0.07
$
0.01
$
0.67
$
0.59
M-tron Industries,
Inc.
Condensed Consolidated and
Combined Balance Sheets
(Amounts in Thousands)
December 31, 2022
December 31, 2021
ASSETS
Cash and cash equivalents
$
926
$
2,635
Accounts receivable, net
5,197
3,995
Inventories, net
7,518
5,221
Prepaid expenses and other current
assets
673
242
Total Current Assets
14,314
12,093
Property, plant, and equipment, net
3,647
3,382
Right-of-use lease asset
147
218
Due from related party
-
1,969
Intangible assets, net
98
152
Deferred income tax asset
1,051
2,187
Other assets
16
5
Total Assets
$
19,273
$
20,006
LIABILITIES AND STOCKHOLDERS' EQUITY
Total Current Liabilities
4,856
3,012
Long-Term Liabilities
76
145
Total Liabilities
4,932
3,157
Total Stockholders' Equity
14,341
16,849
Total Liabilities and Stockholders'
Equity
$
19,273
$
20,006
M-tron Industries,
Inc.
NON-GAAP Condensed
Consolidated and Combined Statements of Operations
(Unaudited)
(Amounts in Thousands, Except
Share and Par Value Amounts)
Quarter ended
Fiscal Year ended
December 31,
December 31,
(Amounts in thousands, except share
amounts)
2022
2021
2022
2021
Income (loss) before income taxes
$
595
$
185
$
2,595
$
2,113
Interest expense
5
3
11
12
Depreciation and amortization
199
152
725
542
Non-cash stock compensation
96
186
458
292
Excess Spin-off costs
219
—
219
—
Adjusted EBITDA
$
1,114
$
526
$
4,008
$
2,959
Basic per share information:
Weighted average shares outstanding
2,676,512
2,676,469
2,676,480
2,676,469
Adjusted EBITDA per share
$
0.42
$
0.20
$
1.50
$
1.11
Diluted per share information:
Weighted average shares outstanding
2,693,035
2,676,469
2,676,524
2,676,469
Adjusted EBITDA per share
$
0.41
$
0.20
$
1.50
$
1.11
About MtronPTI:
M-tron Industries, Inc. trades publicly on the NYSE American
under the symbol MPTI. Originally founded in 1965, MtronPTI
designs, manufactures and markets highly-engineered, high
reliability frequency and spectrum control products and solutions.
As an engineering-centric company, MtronPTI provides close support
to its customers throughout our products’ entire life cycle,
including product design, prototyping, production and subsequent
product upgrades. MtronPTI has design and manufacturing facilities
in Orlando, Florida and Yankton, South Dakota, a sales office in
Hong Kong, and a manufacturing facility in Noida, India.
Forward Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, such as those pertaining to the uncertain financial impact
of COVID-19 and the Company’s financial condition, results of
operations, business strategy and financial needs. All statements
other than statements of current or historical fact contained in
this press release are forward-looking statements. The words
“believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,”
“could,” “intend,” “estimate,” “predict,” “potential,” “continue”
or the negative of these terms and similar expressions, as they
relate to MtronPTI, are intended to identify forward-looking
statements.
These forward-looking statements are largely based on current
expectations and projections about future events and financial
trends that may affect the financial condition, results of
operations, business strategy and financial needs of the Company.
They can be affected by inaccurate assumptions, including the
risks, uncertainties and assumptions described in the filings made
by MtronPTI with the Securities and Exchange Commission, including
those risks set forth under the heading “Risk Factors” in the
Information Statement included as Exhibit 99.1 to the Company’s
Form 10 Registration Statement as amended and filed with the SEC on
August 19, 2022. In light of these risks, uncertainties and
assumptions, the forward-looking statements in this press release
may not occur and actual results could differ materially from those
anticipated or implied in the forward-looking statements. When you
consider these forward-looking statements, you should keep in mind
these risk factors and other cautionary statements in this press
release.
These forward-looking statements speak only as of the date of
this press release. MtronPTI undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Accordingly, readers are cautioned not to place undue reliance on
these forward-looking statements. For these statements, we claim
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230330005777/en/
M-tron Industries, Inc.: Investor Relations: James
Tivy ir@mtronpti.com
Mtron Industries (AMEX:MPTI)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Mtron Industries (AMEX:MPTI)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024