TechPrecision Corporation Reports Profitable First Quarter
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Posted On: 08/14/2017 8:04:19 PM
TechPrecision Corporation Reports Profitable First Quarter
Net Sales Increase 26% Year-over-Year
WESTMINSTER, MA / ACCESSWIRE / August 14, 2017 / TechPrecision Corporation (OTCQB: TPCS) ("TechPrecision" or "the Company"
, an industry leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, today reported financial results for the first quarter period of fiscal year 2018, the period ended June 30, 2017.
First Quarter of Fiscal 2018 Financial Results
- Net sales were $5.8 million, a 26% increase when compared to the same quarter a year ago.
- Gross profit was $1.7 million compared to $1.5 million in the same quarter last year, a 13% increase.
- Income before income taxes was $712,000, a 57% increase when compared to the same quarter a year ago.
- Income tax expense was $287,000 for the first quarter of fiscal 2018, as estimated tax expense was provided against interim results based on our annual effective tax rate. Income tax expense was lower for the quarter ended June 30, 2016, due to the utilization of net operating losses and the associated reduction in the valuation allowance which had been provided for this deferred tax asset.
- Net income was $425,000, or $0.01 per share basic and fully diluted, a 4% decrease as compared to net income of $445,000 or $0.02 per share basic and fully diluted, for the same quarter a year ago.
- EBITDA was $993,000 for the quarter ended June 30, 2017, compared to $824,000 for the quarter ended June 30, 2016. Please refer to the reconciliation of EBITDA (a non-GAAP measure) to net income (a GAAP measure) in this release.
First Quarter Recap
"This was another profitable quarter of operational and financial progress, continuing our recent trends and bolstering our confidence that we are on the right path," stated Alexander Shen, TechPrecision's Chief Executive Officer. "Our improved quality and consistent on-time delivery is resonating with key customers, helping us drive a 26% increase in net sales. Income before income taxes was $712,000, a 57% increase over the same quarter a year ago. Income tax expense was $287,000 for the first quarter of fiscal 2018, as estimated tax expense was provided against interim results based on our annual effective tax rate. Income tax expense was lower for the quarter ended June 30, 2016, due to the utilization of net operating losses and the associated reduction in the valuation allowance which had been provided for this deferred tax asset. Net income was $425,000, a 4% decrease compared to the same quarter a year ago. We expect to maintain profitability on an annual basis."
"This was the largest quarterly revenue achieved in the last twelve quarters," added Mr. Shen. "We are moving forward to replenish backlog by maintaining our focus: targeting defense, nuclear and precision industrial markets."
Balance Sheet Summary
At June 30, 2017, TechPrecision had working capital of $5.6 million compared to working capital of $5.0 million at March 31, 2017. The Company had $3.3 million in cash at June 30, 2017.
Teleconference Information
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on August 14, 2017. To participate in the live conference call, please dial 1-866-682-6100 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-862-255-5401. When prompted, reference TechPrecision.
A replay will be available until September 14, 2017. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 19628.
The call will also be available live by webcast at TechPrecision Corporation's website, www.techprecision.com, and will also be available over the Internet and accessible at http://www.investorcalendar.com/event/19628.
About TechPrecision Corporation
TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc. and Wuxi Critical Mechanical Components Co., Ltd., manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: defense, aerospace, nuclear, industrial, and medical. TechPrecision's goal is to be an end-to-end service provider to its customers by furnishing customized solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements other than statements of current or historical fact contained in this press release, including statements that express our intentions, plans, objectives, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions are forward-looking statements. These forward-looking statements are often identified by the use of forward-looking terminology such as "believe," "continue," "expect," "will" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including our ability to change the composition of our revenues and effectively reduce operating expenses, the availability of appropriate financing facilities impacting our operations, financial condition and/or liquidity, our ability to receive contract awards through competitive bidding processes, our ability to maintain standards to enable us to manufacture products to exacting specifications, our ability to enter new markets for our services, our reliance on a small number of customers for a significant percentage of our business, competitive pressures in the markets we serve, pricing and business development difficulties and other risks discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors. Any forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law.
Net Sales Increase 26% Year-over-Year
WESTMINSTER, MA / ACCESSWIRE / August 14, 2017 / TechPrecision Corporation (OTCQB: TPCS) ("TechPrecision" or "the Company"
, an industry leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, today reported financial results for the first quarter period of fiscal year 2018, the period ended June 30, 2017. First Quarter of Fiscal 2018 Financial Results
- Net sales were $5.8 million, a 26% increase when compared to the same quarter a year ago.
- Gross profit was $1.7 million compared to $1.5 million in the same quarter last year, a 13% increase.
- Income before income taxes was $712,000, a 57% increase when compared to the same quarter a year ago.
- Income tax expense was $287,000 for the first quarter of fiscal 2018, as estimated tax expense was provided against interim results based on our annual effective tax rate. Income tax expense was lower for the quarter ended June 30, 2016, due to the utilization of net operating losses and the associated reduction in the valuation allowance which had been provided for this deferred tax asset.
- Net income was $425,000, or $0.01 per share basic and fully diluted, a 4% decrease as compared to net income of $445,000 or $0.02 per share basic and fully diluted, for the same quarter a year ago.
- EBITDA was $993,000 for the quarter ended June 30, 2017, compared to $824,000 for the quarter ended June 30, 2016. Please refer to the reconciliation of EBITDA (a non-GAAP measure) to net income (a GAAP measure) in this release.
First Quarter Recap
"This was another profitable quarter of operational and financial progress, continuing our recent trends and bolstering our confidence that we are on the right path," stated Alexander Shen, TechPrecision's Chief Executive Officer. "Our improved quality and consistent on-time delivery is resonating with key customers, helping us drive a 26% increase in net sales. Income before income taxes was $712,000, a 57% increase over the same quarter a year ago. Income tax expense was $287,000 for the first quarter of fiscal 2018, as estimated tax expense was provided against interim results based on our annual effective tax rate. Income tax expense was lower for the quarter ended June 30, 2016, due to the utilization of net operating losses and the associated reduction in the valuation allowance which had been provided for this deferred tax asset. Net income was $425,000, a 4% decrease compared to the same quarter a year ago. We expect to maintain profitability on an annual basis."
"This was the largest quarterly revenue achieved in the last twelve quarters," added Mr. Shen. "We are moving forward to replenish backlog by maintaining our focus: targeting defense, nuclear and precision industrial markets."
Balance Sheet Summary
At June 30, 2017, TechPrecision had working capital of $5.6 million compared to working capital of $5.0 million at March 31, 2017. The Company had $3.3 million in cash at June 30, 2017.
Teleconference Information
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on August 14, 2017. To participate in the live conference call, please dial 1-866-682-6100 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-862-255-5401. When prompted, reference TechPrecision.
A replay will be available until September 14, 2017. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 19628.
The call will also be available live by webcast at TechPrecision Corporation's website, www.techprecision.com, and will also be available over the Internet and accessible at http://www.investorcalendar.com/event/19628.
About TechPrecision Corporation
TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc. and Wuxi Critical Mechanical Components Co., Ltd., manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: defense, aerospace, nuclear, industrial, and medical. TechPrecision's goal is to be an end-to-end service provider to its customers by furnishing customized solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.
Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. All statements other than statements of current or historical fact contained in this press release, including statements that express our intentions, plans, objectives, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions are forward-looking statements. These forward-looking statements are often identified by the use of forward-looking terminology such as "believe," "continue," "expect," "will" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including our ability to change the composition of our revenues and effectively reduce operating expenses, the availability of appropriate financing facilities impacting our operations, financial condition and/or liquidity, our ability to receive contract awards through competitive bidding processes, our ability to maintain standards to enable us to manufacture products to exacting specifications, our ability to enter new markets for our services, our reliance on a small number of customers for a significant percentage of our business, competitive pressures in the markets we serve, pricing and business development difficulties and other risks discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors. Any forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law.
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