Wed, Aug 14, 8:29 PM (153 days ago)
Cemtrex, Inc. reported a challenging quarterly performance for the three months ending June 30, 2024, with revenues of $14.69 million, slightly down from $14.73 million in the same period last year. The Security segment experienced a significant revenue drop of 31%, attributed to project delays and adverse economic conditions, while the Industrial Services segment saw a 49% increase due to heightened demand and contributions from the Heisey acquisition. The company faced a gross profit decline, yielding $5.88 million (40% margin) compared to $6.48 million (44% margin) in the prior year. Operating expenses surged by 41% to $9.06 million, driven by increased administrative costs and a notable write-off of related party notes. Consequently, the operating loss widened to $3.18 million. Cemtrex reported a net loss of $9.14 million, significantly higher than the previous year's loss of $1.17 million. Cash flow from operations was negative, totaling $2.08 million, and the company maintained a working capital of $12.40 million. Future operations face uncertainty, compounded by potential dilution from equity offerings and ongoing liquidity concerns. The company has secured a line of credit and entered a Standstill Agreement with Streeterville Capital to manage short-term liabilities.