Fri, Sep 13, 9:10 PM (107 days ago)
TechPrecision Corporation's fiscal year 2024 report reveals a modest revenue increase to $31.6 million, primarily from defense contracts, which constituted 99% of sales. However, the company reported a net loss of $7.0 million, significantly higher than the $1.0 million loss in fiscal 2023, largely due to increased operating expenses, including a $1.1 million breakup fee from a terminated acquisition. Operating losses reached $4.6 million, with Ranor segment sales declining by 7% while Stadco's sales grew by 19%. The gross margin fell to 13% from 16% due to rising costs and underabsorbed overhead. Liquidity remains a concern, with $2.3 million in total available liquidity and a negative working capital of $2.9 million as of March 31, 2024. The company is in default of its loan covenants and has classified all long-term debt as current. Future financing is critical to sustain operations, especially with a revolver loan due by January 2025. Strategically, TechPrecision aims to enhance its manufacturing capacity and profitability, especially at Stadco, while navigating significant risks, including reliance on a few major customers and potential impacts from macroeconomic factors.