TechPrecision Corporation Reports Profitable Fourth Quarter and Full Year Fiscal 2016
Fourth Consecutive Profitable Quarter and First Full-Year Profit Since Fiscal 2011
(firmenpresse) - WESTMINSTER, MA -- (Marketwired) -- 06/28/16 -- (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 2016, the periods ended March 31, 2016.
"This was another quarter of operational and financial progress as we delivered our fourth consecutive quarter of net profit and our first full year of net profit since fiscal year 2011," stated Alexander Shen, TechPrecision''s Chief Executive Officer. "We improved profitability in the fourth quarter of fiscal 2016 on increased sales volume of approximately $1.0 million compared to the same year-ago quarter, with net profit of $885,000 compared to a net loss of $719,000 for the fourth quarter of fiscal 2015. These results were achieved due to our consistent sharp focus on productivity initiatives, resource realignment, and top line growth with core customers. Furthermore, we renegotiated terms on one of our outstanding loans which contributed to a $2.6 million improvement in our working capital position since fiscal 2015 year-end, improving our ability to grow."
"Moving forward, we will continue our focus on winning new contracts with our established customers in the defense, nuclear and precision industrial sectors, utilizing our core competencies and know-how in custom, large scale, high-precision fabrication and machining to be a valued, high quality supplier," said Shen. "In particular, we see meaningful opportunities in the defense sector, our primary business sector focus. Opportunistically, we will pursue contracts in the aerospace, nuclear and healthcare sectors while continuing to execute on operational run rate improvements to increase our gross margins and cash flows. We will further strengthen our balance sheet by taking advantage of refinancing opportunities and paying down debt."
Net sales of $4.9 million were higher by $1.0 million when compared to $3.9 million in the year-ago quarter.
Gross profit was $1.7 million compared to $880,000 in the same quarter last year. Gross margins improved in the fourth quarter of fiscal 2016 due to improved throughput, lower materials and labor costs, and the absence of contract losses.
Selling, general and administrative expenses decreased by approximately 30% or $387,000 compared to the same quarter last year. The fourth quarter of fiscal 2016 was positively impacted by lower spending on compensation, outside advisory services and office expense.
Net interest expense includes a reversal of deferred interest costs of approximately $241,000 which will not have to be paid in connection with the Utica Loan and Security Agreement.
Net income of $885,000 increased significantly compared to a net loss of $719,000 in the prior year''s fourth quarter.
Net sales decreased 8% or $1.4 million to $16.8 million compared to $18.2 million in the year-ago period. Fiscal 2016 shipments to our defense, aerospace and nuclear customers increased by $3.4 million. This increase was more than offset by a decrease in shipments to our precision industrial customers.
Cost of sales decreased 29% or $4.5 million to $11.4 million compared to $15.9 million in the year-ago period. The decrease was driven primarily by lower labor costs, lower overhead as a percentage of sales and fewer contract losses.
Gross profit in the full year of fiscal 2016 was $5.5 million compared to $2.3 million in fiscal 2015. The improvement was driven by a better production mix compared to higher labor costs, under absorbed overhead and contract losses which dampened margins in fiscal 2015.
Selling, general and administrative expenses decreased by approximately 25%, or $1.1 million, to $3.4 million in fiscal 2016, down from $4.5 million in the year-ago period.
Interest expense decreased in fiscal 2016 due to lower amortization and interest rates, and lower average levels of debt.
Net income was $1.4 million for fiscal 2016 compared to a net loss of $3.6 million in fiscal 2015.
At March 31, 2016, TechPrecision had positive working capital of $510,000, an improvement of $2.6 million compared to negative working capital of $2.1 million at March 31, 2015. The Company had $1.3 million in cash and cash equivalents at March 31, 2016 approximately $4,000 lower when compared to March 31, 2015. Since the end of the fiscal 2015, our total debt has decreased by approximately $1.0 million to $4.7 million at March 31, 2016; and shareholders'' equity has increased by $1.4 million.
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on June 28, 2016. To participate in the live conference call, please dial 1-866-635-0172 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-785-424-1629. When prompted, reference Conference ID: TechPrecision.
A replay will be available until July 28, 2016. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 10038.
The call will also be available live by webcast at TechPrecision Corporation''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. 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 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 recurring operating losses and the availability of appropriate financing facilities impacting our ability to continue as a going concern, to change the composition of our revenues and effectively reduce operating expenses, 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. Thomas Sammons
Chief Financial Officer
TechPrecision Corporation
Phone: 978-883-5109
Email:
Website:
Hayden IR
Brett Maas
Phone: 646-536-7331
Email:
Website:
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Datum: 28.06.2016 - 14:41 Uhr
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