TPCS - Earnings call transcript Q1 2023 | TechPrecision Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the TechPrecision Corporation Fiscal 2023 First Quarter Financial Results Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be opened for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Brett Maas, Investor Relations for TechPrecision. 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

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

projections statements. XXXX. no TechPrecision as company's represents future In to or assumes forward-looking the XX, performance update of August addition, management's as these today, revise obligation to estimates

to I to over Before TechPrecision been following Board the Chair as the the Rich for follows. asked read turn McGowan, of the call Alex, I’ve by

the next With Alex? after the upcoming set out turn the Alex the announce the to that aspects over Alex. fifth of we remedy remarks. I'm to of annual Member. will the with X.X at meeting every Board be I'd taking years Alex that to Congratulations, the Executive provide call Officer in Shen pleased of the meeting adding is Alex Shen, as way, meeting Board opening Chief like all months Several decided last back, voting. exception part Board to For to [indiscernible] this. me

Alex Shen

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

XXXX a operating was to when a fiscal XXXX significantly segment quarter gross is income segment. The our quarter $XXX,XXX of with the first the compared $X.X turnaround. board higher first revenue fiscal million improved across operating year-over-year. margins. Ranor improved and Stadco strong The Ranor’s of results for to was quarter Ranor compared

Stadco future to we additional expense. of also to onetime addition that added additional we invoicing administrative and the management quarters. expenses, costs. capital prospects of at expenditures, control revenue, dampened administrative Business cash remain general selling, materially Selling, focused on but included expense interest in very our control highly expense absorbed and recognized cash decrease acquisition With and expect We the shipment. additional shepherding customers customer our billings costs strong. related costs general margins and progress These our of final and and will through remain strong, of to advances,

now $XX.X of Tom? XX, review would XXXX Chief million like And was continue to the first quarter over fiscal call our to June Tom at I XXXX. Financial the turn backlog with our Our Officer, Sammons results. to

Tom Sammons

Net of increase revenue. or when Alex. realized in XXXX to and a which quarter recorded of same for higher revenue sales in than ago decrease quarter increased revenue year quarter fiscal the full Stadco four you, precision markets, defense in We revenue more small industrial our offset Ranor. XXX% an $X.X of year the Thank million we were first as compared added a

Stadco advisory increased related to overhead. services the operational quarter acquisition. one-time or Gross SG&A lower million the approximately remains subsidiary. new levels and $X.X related Stadco as the expense after and from primarily higher to because year ago. primarily for Gross same by unabsorbed to sales acquisition, Our factory Stadco to profit the production expense, a the profit at Cost increased our $XXX,XXX primarily was quarter compared defense the additional travel addition leading spending the slightly to backlog captured were million very was defense within our due strong higher, quarter orders $X.X Stadco from due XXX,XXX sales when lower are to of Stadco problems including cost of and of low outside of customers. of and $XXX,XXX,

in of prior prior Our XX, year year sheet to we an added balance income quarter to borrowings to as to period. increased XXXX the same revolver same operating Interest $XX,XXX compared Stadco new loan. was operating $XX,XXX $XXX,XXX from debt the and our loss on in under the our $XXX,XXX expense August acquire increased

which a same As first forgiveness to in included $XXX,XXX loss we the our period PPP loan of above, the of fiscal in result a million amount net income of the recorded year XXXX $X.X million. the in net compared of of ago, a quarter quarter $X.X the

of Moving $XXX,XXX on deposits. and activities cash capital from a to cash and inflow operating and realize expenditures asset used We for million sheet. $X.X balance flows fixed

total was to XX, March, XX, million revolver the XX, million at down paid of at the Cash million on compared $X.X June XXXX balance compared $X.X end a $X.X during XXXX XXXX. June $X Our $XXX,XXX -- XXXX debt we XX, quarter. at about XXXX at March, was as to million

at million XXXX. to compared $X.X now XX, to XX, million that will June March at Sorry. back I the turn call Alex? With Working was XXXX $X.X over capital Alex.

Alex Shen

we the Tom, significant military industry, to through its both the meaningful and manufacturing in secure sector and subsidiary sales We as orders United proud aircraft and very maintain serve thank specifically TechPrecision our its enduring naval aim and in and see defense Ranor in increase you. our to the the defense Ranor to submarine States an opportunities subsidiaries honored is manufacturing Stadco backlog. partnership continue with customers. our through by subsidiary. evidenced Overall, Stadco

revenue encouraged future by our prospects and in growing are increasing We quarters. profitability for the

Finally, sensitive things these in many which reminder work from about company we us that that a publicly speaking a not do highly discuss. might operating confidentiality, that most our fields of preclude again, in industries to are

and my are not sometimes limits which is to we as environment there that change. conduct and understand the discuss am those discuss customer what in As can I real to allowed such, based I that on business. limits requirements Please saying,

following the Board. from to you open Additionally, up read the Board the asked message before has we for questions, me

or proscribed of ours to stock such as an We exchange for of stock. would bought a that being believe by increase to Annual has exchange. requesting stock crystal by the listing split of possibility of only the at overall to As if we because which to with split uplifting strengthen we is on given reverse clear similar meeting NASDAQ you do to investors qualify want the upcoming at stocks, approval response. stock the our institutions be would positive reverse would a stock OTC an margin know, be to the in funds attraction met Stockholder reason allowing the the with a and the make authority such from been and investing proceed stock, are the Meeting the it We able

attempts investors in to expeditiously. believe the situation failing. the we you Obviously, thinking try your not we valid we splits straits, our you Thank who themselves continued of vote comparisons any dire a proposal have that you from becoming and and support, these do specter is is a While that few that raised not start have reverse Q&A. delisted, can ask the favor Operator, desperate for so of ships failed the used ultimately and to save to being penny companies stock completely financial and in Board.

Operator

open in. now have of Thank floor a Ladies is come Instructions] you. couple gentlemen, questions. We for questions the and [Operator did

may The Rob, [Rob is go is ahead. coming from question Stress] Rob, (ph) a first you private investor.

Unidentified Participant

Tom. me? and you Can Alex Hey, hear

Alex Shen

can. we Yes,

Unidentified Participant

great. Okay,

for that I congratulations overdue So, very added to of Board. CEO as long being a the traditional first all, to consider be Board. Alex, the on it's for

and you So privileges, to Alex I'm that that's bounce giving full A both going my that you perspective. between appropriate from Tom. completely it's few questions

First at the of that level sustainable, all, Tom, whether the when commentary, that from elevated or maybe -- at we high that is Ranor least or Can would for quarter. that you normal comment in is expect? levels gross or I there margins, commentary is a probably profit not margin one-time at any profit that there gross elevated quite look any other because are they items not

Tom Sammons

Well, I the pretty previous we about we right and mix good the think jobs I are we the in projects. business. -- sitting that talk have of now of lumpiness some previous on the often mean filings, in And

Some us past and that no here to performance. a have are good in hurt of that contributes the projects the longer

Unidentified Participant

can very elevated want Alex there narrative, repeat which go-forward one-time margin. customer to a items look, I you similar mix I of think there understand. profit Flatly, on in kind -- besides what to to that I or and don't sensitive I think have have any to would basis, you're product that that say were mix gross

Tom Sammons

No.

Unidentified Participant

expectations? at that look turnaround I question be, your we the kind from Okay. time understanding and it I understand Are consider integrate, that you to performance behind? to turnaround well as well. turnaround, that think ramp, the when or simply, Great. question you ahead perspective. significant operation investors it when of Then is a have frankly is meeting think Stadco this, Alex moving pace and of you color as that would Any a My takes that

Alex Shen

No, I any from that other perspective. don't have color

I it than turnaround. kind think my is pretty a premature idea anything other myself forecasting give it's any audience, of shareholders, including it's my that to doing or

sure shepherding cash and We are have on taking we're that, solely on focusing cash. measures we correct focused but the to sure make making not highly

Unidentified Participant

able that question, not one Alex, to know effectively value. to to a create that We that operate answer Stadco point. shareholder previously might not you And did be as Okay. company that follow-up

their been still contracts that they I types of down you Are our are of today? customers. not the think have contracts able comment way all part whether not but waiting with that of that through performance or the at that of is about working contracts still you wrote that business probably written operated, prior that are specifically, they those part to could

Alex Shen

into able going that not the be to area into You're a I'm delving comment. question where dives to

Unidentified Participant

Okay.

that you not I in on, us a higher whether $XX.X or opportunity today. is to quarter-to-date change quarter-to-date a discussed moving or past yet to lower like as you not of tell calls basis. or of policy would have have heard on that have Is backlog. million the the So

Alex Shen

I you If significant I have to tell have to now. right had anything you I already. would tell something don't

Unidentified Participant

– think I okay. backlog Yeah, that we recognize And is

Alex Shen

is, always significant to quarter-to-date, report is That time. my at -- been norm there has you guys I tell something that if

Unidentified Participant

perfect. Okay,

of we I two my its presentation look I that question had planned indicative has forward that ones. and last is of press presentation we financially of the release. back quarters is integrating asking ago a release, a essence going this of release over, and forth. and we is that, play difficulty an effectively, couple cash of press also couple had XX-K at balance net Just its the a loss fact press we full to fact with consider seeing Stadco effectively press say, with here you and down supplemental the there, We structure And When am sheet The the quarters. the you have changed would did in and is the quick so I had some what information typical full understand I the at to or on that looked line statement. catch-up release we is a income so went flow Tom, some somewhat quarterly statement we're

has not release let that's or investors of that just of step changed know Stadco you So a press with going the momentary the because forward, presentation regarding what were whether or just integration. dealing if

Tom Sammons

sense -- the now, It's back done. getting a it filed we've statement that, the to what is Yes. in anticipation but given get financial abbreviated we timing more perspective from bit a perspective right that was financial always little the the latter -- in of things of

Unidentified Participant

highly of Great. would I be And that. supportive

is to quite I think good. that the provide information used you

and I question, paid investor I investor as the should not strategy. Last So company, of that messaging this, appreciate answer the to the Relations a sure well response. attention here long-term as I'm but as who

that With ways. you think regarding the you'd to relations value companies excellent been by in said, ways is many an that about be should strategy well, where you large And share lacking fairly job years. public well The are? has a team deliver. increased do strategy and management How you've many backlog your able in the positioned creating in as the shareholder for company think dramatically quite knowing what quarters Relations that. like have anything I you and and coming to and done investor in Investor

Alex Shen

advisement. that to trying under I'll one take I'm avoid the question. not

bat. I over what probably how and But think we dumb the think some about try we definitely and to improvements It's off it's maybe something premature make me of to to offering. – answer to in right it

Unidentified Participant

longer beyond just it others with I So dealt much a company are where because I that it point and position and that on that and in would strides that's backlog, have you to that time a particularly think into Thank you specifically $X.XX shares shareholders And if would allow all all what in is along much investor is shares for much the deeper it better no is a get as made luck message think good operating has way this share. a I a your relates company wasted this to the would response, still my performed track, the very future talk and shares that important the data at that to great on company $X.XX relation think strategy higher. understandable today be think to referring is it for these the performance It be be was has questions. but taking for headline quarters. I'm much, your you I

Operator

from ARS Ross [Operator Taylor Partners. Thank your from live. line Ross, you. Instructions] is is next Investment question The coming

Ross Taylor

you. Thank

you head of little staying things. [indiscernible] Can you know talk I of the on couple Alex, a congratulations. again, -- more board. your bit First and

one were there $XXX,XXX at costs beyond other in how you mentioned we're costs, mentioned. -- mention onetime you aggregate, what that can one-time the just many You any looking $XXX,XXX,

Tom Sammons

there the mentioned, in I quarter. $XXX,XXX was

Ross Taylor

$XXX,XXX. Yeah. Was one-time that in costs the the quarter? total

Tom Sammons

Yes.

Ross Taylor

about to right we other is some now word lower don't the Okay, It revenue programs, expected. run of cool. have won't the rate then the that of programs have word, rate know I Can have seems the we CH-XXK, Alex, side. they're than F-XXEX, the the talk would I the don't but -- you L yet was It use a rate. at enough We that problem their ideas working familiarity run on. -- know L know, we the with Stadco But this might on we have run quarter's that seems little use again, generally,

Alex Shen

end to going We're up the word. using L

Ross Taylor

we're find one. not, other going than we're word that to no, another No,

Alex Shen

Okay.

Ross Taylor

Yeah, drive just a will for merger, so acquitted that I have you crazy. an and answer guy up understand to and [indiscernible] who me was

tempo next business, are when So the the like the their business CH-XXK. think at looking Is things as familiar on by that, in CH-XXK, looking we're fiscal business. the at F-XXEX, not yet getting for rate the of year run we're the on into Navy/Marines decision that of the enough I shareholders uptake the with of we tempo idea the some point the their

last budget from had the saw XX least think projected I I side. F-XXEXDs one at

L there. doing I think run Is of the that more the It you'd word? of budget. rate just side Senate it be would because seem business the

Alex Shen

that we Well, before we get on focus really is to the L this word need a turnaround. to I fact the think

to highly need cash, rates both it's different into very levers. in itself the pulling and before we The focused, So and the all first, get effectively even We managing shepherd strong to run of on shepherding specific is need backlog strong, We cash cash. subsidiaries. concentrate efficiently programs.

past So the turnaround problems. get we to need

Ross Taylor

Right.

So you --

Alex Shen

one we second hold Once Ross, -- get just past please. on

Sorry.

orders. levers. can the have stabilizing So backlog, Because execution pulling and get past once look the we we that we have the the different strong a stability. situation cash We maintaining do at

needs been to our the and just previous able growth. the taken to good only turnaround gains, has performance of have sequence. called think not And be of been So Ranor but it's maintain I we in order

for the think you I not before back or I to anyway. myself the never I'm management So complement past on itself. Tom of pat history much Tom. trying speaks the

of all I run say one. the just be have or specifically to I by look about I carefully which by rate that can't can be things simultaneously one okay, stepping one, we implication really chance to problems not. them need one to But And but talk program at juggled. think solving has like, through a we need

Ross Taylor

Okay.

for? business? been you with have Are the management So, what the happy you that in you is looking running had looking people capability at Stadco

Alex Shen

yes. general, in Well

Ross Taylor

looking ability, with you ability needed then contract, And to the factory, to lot? a the happy people set are in and product on skill they fashion at quality execute the the Okay. on the the the floors do have produce

Alex Shen

been most been Ranor. of Well, like all and flesh at is just the part of changes them not these There with to I think the have out, management. has turnaround items really some

Ross Taylor

surprised overall Stadco that point, there fashion in looking about look positive when fashion. is this at a business has -- when So at at you anything or the you this a negative

Alex Shen

don't here. I any is surprises there think

Ross Taylor

Okay.

at you so And when look –

Alex Shen

a before do more I to mean bit further. question you I little go do answer on your

with some I'm So in general, satisfaction people talking on the And to more part when talent, we general, about doing of in we the our turnaround. you're bring are satisfied. need which so as

Ross Taylor

are were achieve And it execute comfortable that what that as that we think talent, acquired can builds it business or would you better? you as achieve targeting to when you the it you

Alex Shen

get and to things going target we're I Well, us there. usually

Ross Taylor

true. Yes, that is

So –

Alex Shen

three, first get I one. But the got we two, got that get point one, to just to

Ross Taylor

Right.

to you million and And at point were with really in it's are of in is the and something with seeing forward coming the you're so something next you where you're the this we have? you’re inside in the resources, looks comfortable the don't plan team, one -- it. that really kind step When are you people, you is, business $X.X this saw time by, the revenue, as see that anything a at process really sees just quarter and have comfortable about that expectations of this it's surprised into pushing and you and isn't you're the the guys

Alex Shen

as between we're soon The Absolutely. numbers. not has like Tom and as been to But that's there, murdering We he me, happy. for me Yes. is hitting better Well, I axe not disappointment numbers have would private. absolutely can.

Ross Taylor

you're two Stadco you itself, already front looking the for opportunities the and has and the that in programs do When Ranor, road. broader that the one, the not in you're of between but of which opportunities look think at programs of down you

Alex Shen

Yes.

Ross Taylor

So be I that both. to take

excited both about them. are really You of

Alex Shen

by excited both. very I'm

Ross Taylor

[indiscernible] I forecasts, know overall at what Stadco at do of can to give -- start this maneuver. both? more Board we kind going should level you to or be have improvement a quarters should forward we quarter How but won't see in consider looking you some several so of us do that want like we the think on this And look do probably you and that of situation, you Okay.

Alex Shen

these Ross, or dodge, giving do to a know you're else. I asking to not right? will going Speakers] that questions you forecast you anybody [Multiple be everything I'm me

to going Speakers] little I'm bit. So [Multiple a

Tom Sammons

better. I’ll we expect obviously say just

Ross Taylor

have I'll expect You Thank you what better. murdering go them. axe else you. back That's -- And someone let to it.

Alex Shen

Thank you, sir.

Ross Taylor

Thank you gentlemen congratulations, and Alex.

Alex Shen

Thank you.

Operator

There now this like queue questions management the other the hand would to you. back closing at time. were for in Thank I team the no call to remarks.

Alex Shen

Thank you. great Everyone have day. a

Operator

Ladies you. this conference. does gentlemen, and today's conclude Thank

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

TechPrecision (TPCS) 22 Aug 222023 Q1 Earnings call transcript