TPCS - Earnings call transcript Q1 2022 | TechPrecision Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the TechPrecision Corporation Fiscal 2022 First Quarter Financial Results. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Brett Maas with Hayden IR. Sir, the floor is yours.

Brett Maas

Thank you.

is Financial Chief Officer. today Tom Officer; call Chief Sammons, the Alex Executive Shen, and On

those which risks Before Securities safe of of our make questions. results remarks statements, more Therefore, forward-looking for statements listeners begin, from today, harbor additional may that Reform Actual Company's subject we of XXXX. I'd response claims management's detailed may uncertainties like forward-looking statements in we the contain to management Company uncertainties, the and Private and as to in therefore, SEC. the Act Litigation the a remind differ filings are may refer risks discussed to your and forward-looking to and financial protection in contained you and discussion the

performance With as estimates turn like of assumes Officer, Alex? no to In to management's Shen, Chief remarks. today, XX, update future to or that over the statements. revise Executive provide call Company's the these XXXX. opening represents August projections forward-looking out obligation TechPrecision to of Alex as I'd addition, way, to

Alex Shen

day Good to and for joining thank Brett. us. you, Thank you everyone,

year compared Our the profit of when was in same increase gross first to $XXX,XXX quarter highlighted quarter XX% by an ago. one to

average X% the million year a fiscal Our higher $X.X than the the fiscal the and year gross than quarter were first previous XXXX. than sales or the XX.X% margin for improved year same to than ago. for higher quarter, of Net quarter XXXX, higher higher prior quarter year

Payroll Protection forgiveness $X.X gain loan Administration the also under Small a included first Business results million quarter Our Program. for

XXXX. million at backlog was end the Our $XX.X of sales June order

of the of orders booked have $X.X an XXXX. We month July during additional million

first like over continue results. CFO, turn quarter to Sammons, XXXX Tom? of review to Now to our our call fiscal would I with the Tom the

Tom Sammons

Thank you, Alex.

lower an $X.X increase year XXXX Alex to fiscal recorded sales in the precision quarter ago. million in the which same a first more revenue. net were for quarter in As year offset We industrial mentioned, markets, defense million slightly compared the of revenue $X.X than

Our flow prime defense contractors. new strong for orders our from continue to remains defense as backlog components down

and key sales a XXXX. about ago, profit year was million, decrease a same margin same customers $X.X backlog gross $XXX,XXX quarter the a of XX, of compared was Cost at net year account ago. quarter defense the Our gross XX.X% quarter same $XXX,XXX Gross June were of XX.X% to to four to ago. slight XX% compared year compared $XX.X in in the a realized a profit for the million

as mix compensation first to reflected travel to Our operating in year XXXX COVID-XX of outside compared the SG&A $XX,XXX and first first fiscal in offset $XX,XXX favorable the a income part costs loss overhead. expense fees, by for quarter and on X% travel subsided. or primarily higher lower Operating quarter product increased by advisory the lower decreased a $XXX,XXX restrictions quarter an ago. year unabsorbed

the $X.X to compared fiscal XXXX PPP fiscal expense million the loan quarter quarter, prior in the XXXX first non-recurring of was for mentioned, is loan for quarter. decreased PPP XXXX. statement of reversal a accrued $XX,XXX in Net expense of the by net SBA quarter for gain the loss was forgiven our includes May fiscal included Interest first the the to PPP of the $XX,XXX XXXX. Interest fiscal by forgiveness to includes our for interest income $X.X This operations. in first As million the of to forgiveness. XXXX $X.X first $XXX,XXX compared loan which XX% of $XX,XXX in quarter first million

activities fixed year activities cash purchase million spend during of operating prior $X,XXX expect in new from quarter. cash XX, June in activities $XXX,XXX $X.X we outflow XXXX, quarter, XXXX compared but generated to investing the to operating from $XXX,XXX first of to assets For fiscal only we fiscal ended three approximately the was Cash the months outflow from a XXXX.

million May. the than the XXXX, PPP on to XX, Our total due XXXX, reported million was the June debt $X.X forgiveness XX, of March were loan lower at $X.X in

Our June increased XX, XX, Working turn XX, over XX, back XXXX. $XXX,XXX, was that, million $XXX,XXX million to since I down March $X.X compared net by the will now debt million $X.X call at balance from Cash at at Alex. XXXX, March March. $X.XXX $X.X March was million to XXXX. Alex? XXXX, With to capital

Alex Shen

Tom. subsidiary. honored proud Ranor submarine serve and you, manufacturing industry, defense is naval through TechPrecision Thank States its specifically to the United

We nuclear opportunities the the next beyond. in defense in been submarine Information available public made pandemic domain XX and months for the in that United continue Navy has our see sector the primarily COVID indicates impacted to States disproportionately class shipbuilding. Virginia meaningful submarine business that

on way infrastructure their made bottlenecks, are Some back became to to Ranor capabilities the which track the our opportunities of the increase leading shipbuilders should from have flow getting supply for subsidiary. down chain. The delays, shipbuilders

take questions, would to like make we two Before points. I

is The with STADCO. first point regard to

during further give the expect of close assurance remember, XXXX. will occur time closing however, within frame any Please the acquisition August of that that XX, week We or At the to will aspect all. transaction, that STADCO at any we specific we cannot the call closing as any we conference not soon a practicable. time, regard that host this or will After with of be as taking comments to questions transaction. the of making any

company that fields The to in sensitive of do in industries of many is are us us about that discuss. remind all operating our from second highly that speaking most publicly which might work preclude confidentiality, these point we to a not things

limits limits can the and discuss Please requirements saying I'm not those I there can our that you. sometimes for what as real business. that allowed we such, questions. Q&A understand to conduct change. Operator, open on and the based which Thank to my environment we customer that start discuss in session are is line As and

Alex Shen

session. close Thank the you, everyone. Operator, you can

Operator

from question at in a coming have Aaron Capital. ES We Warwick do

live. is Your line

So you please proceed.

Aaron Warwick

and for COVID bottlenecks about it's and I up. and the that just thank some commentary that's your get how created of opened you wanted to on

calls. you talk couldn't about have think that on clarity I maybe maybe lot that's previous a we of and didn't

So anyway, transparency or hearing week the thank forward from you I next that there. for you that. to can look deal. I whenever guys, close appreciate hopefully, you

Alex Shen

you. Thank

Operator

at time. Instructions] no have closing to Do We you have remarks this questions with? any [Operator you'd like finish

Alex Shen

do your you day. Have attendance. I Thank all not. for a good

Operator

Thank does you, and This gentlemen. today's ladies conclude event.

have at day. may time, your and you Thank wonderful You disconnect participation. this for a

TechPrecision (TPCS) 13 Aug 212022 Q1 Earnings call transcript