CVV - Earnings call transcript Q2 2024 | CVD Equipment Corporation

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Operator

Greetings, and thank you for standing by, and welcome to CVD Equipment Corporation's Second Quarter 2024 Earnings Call.

As a reminder, this conference is being recorded. [Operator Instructions] Presenting on the call today will be Emmanuel Lakios, President and CEO and member of the CVD Board of Directors; and Richard Catalano, Executive Vice President and Chief Financial Officer.

We have posted our earnings press release and call replay information to the Investor Relations section of our website at www.cvdequipment.com.

Before I begin, I would like to remind you that many of the comments made on today's call contain forward-looking statements, including those related to future financial performance, market growth, total available market, demands for our products and general business conditions and outlook. and call. based to assumptions, and described differ not this a in ended press XXXX. Actual are that and uncertainties XX, limited statements with December XX-K our subject filings from for Factors materially during are number release the to forward-looking the on including may section expectations certain those projections described the Risk These SEC, our of but company's in results of year risks the

In statements obligation today, update revised on forward-looking addition, we any and circumstances new based of all as made are statements undertake or to no the expectations. forward-looking

Now over to I'd ahead. call turn go like the Emmanuel Lakios. to Please

Emmanuel Lakios

second developments everyone. other and thank evening, quarter you and good financial our Joe, Thank important related results pertinent and business. joining to our us information company for you, XXXX today discuss to

we to in are important our Your session. us Q&A questions thoughts forward and to your look

year from first was XXXX. quarter to representing our prior quarter million, XXXX revenue XX.X% compared up the $X.X Our second was as XX.X% period of a increase and

XX.X% While is $XX.X revenue than the was million, which year our prior year-to-date period. lower

order our are the PVTXXX system, account. will be of newly by now to first production have our launched growth. We was XXX-millimeter second part quarter of recently our which crystal carbide the system pleased shipped for strategic boule performance silicon of The evaluated for

June XX, million. meaningfully encouraged backlog $XX.X at It's We end of XXXX. our that of than million are backlog our $XX higher of year-end the

equipment. of were the $XX.X as the X for $X.X to first Our gas SDC driven for by for orders primarily million X demand first million, delivery our were XXXX segment compared $XX.X months for of second in XXXX. our months million quarter the Orders

specific operating from continue serve second revenue carefully flow we first quarter, growth the a second profitability, cost CFO, and who article focus course CVD's given components company and customer managing and achieve the system to over that impact coating are in would in We'll the simultaneously call market nature to of quarter. the order silicon a markets return the quarter multisystem our our emerging and stay build the levels of focusing relationships, During as adverse industrial year we Catalano, financial to on disappointed like half cash results. of received turn the investment. I provide will while carbide. Overall, a with critical on to of we of performance Rich an the first in with our growth million the strategic our order $XX first overview shipped fluctuate, end

Richard Catalano

Thank you, Manny, and good afternoon.

and $X revenue to CVD Tantaline increase Materials our our a the as of The mentioned, compared XXXX increase the revenue of XX.X%. our Manny million XXXX a from of XXXX. for the This $X.X of SDC was second attributable decrease CVD Equipment increase prior segment revenue million million the million higher second $X.X segment or by offset exit As in May was from business. million year quarter our the quarter X.X% our of MesoScribe due of quarter segment, an $X.X to for represents disposition versus of from $X.X primarily revenue in to in

for in revenue Equipment contracts, part PVTXXX increase to revenues The in principally was due in and by systems CVD increases lower offset from parts. aerospace spare

remains higher were strong. quarter $X.X of XXXX first than or delivery XX% second system SDC's demand as were higher of XX% and revenues segment than for the gas million SDC Our the quarter XXXX

a profit to XXXX. XX, million higher year mix contract $X.X a $X.X lower due of XX.X% with prior or gross X in profit million to as the the offset primarily XX, months X XXXX, compared quarter. was by gross profit margin a compared with million was profit Gross June of ended gross XX.X% as margins June $X.X gross gross was for This margin increase of ended of revenues months for profit that the to

both compared Our million of second for to nonrecurring related of to operating our in business. an year charge charge as operating million was of of second sale the $X.X loss XXXX to XXXX. quarter the the loss loss our $X.X and of impairment $X.X million resulting quarter second the in also MesoScribe The from quarter included operating prior Tantaline subsidiary a decision the an exit

other and share last second the to basic consisting million or loss for net charges net of million. After per and share XXXX for of compares principally $X.XX diluted. both for a quarter $X.XX So income, of loss per year that's basic our quarter $XXX,XXX diluted. interest or income, This total of the onetime both second $X.X was for $X.X

our by $X.X Our offset cash as equivalents $X was an was in of of of accounts have principally XXXX cash at due the to items and XX, payable, million and to $XX June million, accounts net $XX an million receivable in December. expense compared million. end we decrease This of million, loss $X.X increase also increase at noncash the

XXXX working million XXXX. XX, this $XX.X June XX, and December capital was million, at Our at $XX.X compares to

of profitability orders, among as managing expenditures return inflationary capital new and pressures to dependent of is other expenses. upon, things, equipment our ability Our mitigate the planned as to receipt the operating impact well

changes impacts factors of revenues other based as on historically as of manufacturing our timing order recognition. addition, the revenue our in our well process rate and In fluctuated orders have that

will factors, our XX from revenue from capital months. cash cash and to our quarter-to-quarter. recognized for next expenditure from projected all orders After capital cash may sufficient these requirements and fluctuate equivalents customers and our considering working Accordingly, the and we meet believe operations received be flow

our support anticipated needs. I'll continue take some to to demand back operations evaluate maintain to operating capital We it products, will to our turn cash now and Manny. working actions assess for the our

Emmanuel Lakios

presentation. Rich, thank your you for

to focus build success and continuing the markets, year to on to shareholders in employees, We pursuit Our on look and our of return our our the customer forward remains our ahead. profitability. consistent growth

us. are Your comments and to questions important

presentation, your to floor like close the to would open the of I questions. With our

Operator

[Operator Emmanuel remarks. to Lakios the and further like questions at closing Instructions] time. gentlemen, to I'd are call for Ladies back there no this turn

Emmanuel Lakios

Thank you, in of on and and dialing operator, the the the We support our today. and employees call you, alike. attendance loyalty appreciate shareholders everyone, course, and from for the thank

reach any you out me This directly. questions, further have second you. If please to Thank concludes call. our quarter

Operator

Thank today's conference. you. This concludes

now disconnect may your You for participation. Thank your lines. you

CVD Equipment (CVV) 13 Aug 242024 Q2 Earnings call transcript