TechPrecision Corporation Reports Full-Year and Fourth Quarter 2015 Financial Results
(firmenpresse) - WAYNE, PA -- (Marketwired) -- 06/29/15 -- (OTCQB: TPCS) ("TechPrecision" or "the Company"), an industry leading global manufacturer of with customers in the defense, energy and precision industrial sectors, today reported financial results for the fourth quarter and full-year periods of fiscal year 2015, the periods ended March 31, 2015.
"Recapping our turnaround activities in fiscal year 2015, we sharply focused on productivity initiatives, realignment of resources, and top line growth with key customers," stated Alexander Shen, TechPrecision''s Chief Executive Officer. "As a result, we have improved profitability on a sales volume that was 13% lower than last year. We ended fiscal year 2015 with a 26% year over year decrease in selling, general, and administrative expense, and a positive gross margin of 13% compared to a negative gross margin of 3.5% for the previous year. Also, we achieved a key milestone in successfully refinancing our legacy bank debt through two separate financing events with asset based lenders, enabling us to eliminate certain liquidity risks associated with defaults under our legacy bank covenants, giving us the time and flexibility to rebuild our business with a more optimal mix of customers and customer orders."
"Moving forward, the key is to maintain the sharp focus that got us to this point of our recovery. We plan to increase our backlog and focus on new business contracts with our core customers which utilize our core competencies in custom, large scale, high precision fabrication and machining and leverage our established expertise, certifications, and qualifications in the defense, nuclear, energy, and precision industrial sectors. We must continue to execute and maintain operational run rate improvements to improve gross margins and increase the amount of cash generated from operations."
Net sales increased 9% to $3.9 million in Q4 FY15 compared to $3.6 million in Q4 FY14.
Cost of sales decreased by $3.2 million in Q4 FY15 compared to Q4 FY14. The higher level of cost of sales in Q4 FY14 was primarily driven by $3.1 million of contract losses recorded during that quarter.
Gross profit was $0.9 million or 22% of revenue for Q4 FY15 compared to a gross loss of $2.65 million or (74%) of revenue in Q4 FY14.
Selling, general and administrative expenses decreased 9% to $1.3 million in Q4 FY15 compared to $1.4 million in Q4 FY14.
The Company continues a process to recover some of the contract losses recorded last year; however, this effort is now governed by a customer''s Chapter 11 bankruptcy proceeding which adds uncertainty to both the timeframe and degree of recovery that might be ultimately achieved.
Net loss was $0.7 million for Q4 FY15 compared to a net loss of $4.1 million in Q4 FY14.
For FY15, net sales decreased 13% or $2.8 million to $18.2 million compared to $21.1 million in FY14.
Gross margin was 13% for FY15 compared to a negative 3.5% gross margin in FY14.
Selling, general and administrative expense decreased 26% to $4.5 million in FY15 compared to $6.1 million in FY14.
Loss from operations was $2.2 million for FY15 compared to $6.8 million in FY14.
Net loss was $3.6 million for FY15 compared to a net loss of $7.1 million in FY14.
At March 31, 2015, TechPrecision had negative working capital of $2.1 million compared with negative working capital of $2.0 million, at March 31, 2014. As of March 31, 2015, the Company had $1.3 million in cash and cash equivalents compared to $1.1 million at March 31, 2014. The Company''s backlog at March 31, 2015 was $14.3 million compared to an adjusted backlog of $17.4 million, at March 31, 2014, that excludes orders cancelled by a customer that filed for bankruptcy subsequent to March 31, 2014.
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Monday, June 29, 2015. To participate in the live conference call, please dial 1-877-407-8133 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-201-689-8040. When prompted by the operator, mention Conference Passcode 13613205.
A replay will be available for one month starting on Monday, June 29, 2015 at 7:30 p.m. Eastern (U.S.) time. To access the replay, dial 1-877-660-6853 or 1-201-612-7415. When prompted, enter Conference Passcode 13613205.
The call will also be available live by webcast at TechPrecision''s website, , and will also be available over the Internet and accessible at .
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 globally. These products are used in a variety of markets including: alternative energy (Solar and Wind), medical, nuclear, defense, industrial, and aerospace. TechPrecision''s goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated "turn-key" 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 . Information on the Company''s website or any other website does not constitute a part of this press release.
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," expects" 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 the Company''s ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the company''s periodic reports that are filed with the Securities and Exchange Commission and available on its website (). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.
-- Tables Follow --
Mr. Richard F. Fitzgerald
Chief Financial Officer
TechPrecision Corporation
Tel: 1-484-693-1702
Email:
Website:
Hayden IR
Brett Maas
Phone: 1-646-536-7331
Email:
Website:
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Datum: 29.06.2015 - 14:01 Uhr
Sprache: Deutsch
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