Revenue Growth - Revenue for the three-month period ended September 30, 2024 increased by approximately $848,000, or 7.3%, compared to the same period in 2023[99] - Revenue for the nine-month period ended September 30, 2024 increased by approximately $3,858,000, or 12.3%, compared to the same period in 2023[100] - The company reported a revenue growth of 7% despite challenges in the commercial aerospace market, which is experiencing significant volatility[130] Gross Profit and Margins - Gross profit decreased approximately $231,000, or 9.2%, for the three-month period ended September 30, 2024, resulting in a gross margin of 18.2%[102] - Gross profit increased approximately $2,027,000, or 40.2%, for the nine-month period ended September 30, 2024, resulting in a gross margin of 20.1%[103] Operating Expenses - SG&A expenses for the three-month period ended September 30, 2024 decreased by $240,000, or 10.8%, compared to the same period in 2023[105] - SG&A expenses for the nine-month period ended September 30, 2024 decreased by $1,269,000, or 16.6%, compared to the same period in 2023[106] Operating Income and Loss - Operating loss for the three-month period ended September 30, 2024 was approximately $(281,000), a decline of approximately $(561,000) compared to operating income of $280,000 during the same period in 2023[109] - Operating income for the nine-month period ended September 30, 2024 improved by approximately $2,726,000 compared to the operating loss of $(2,624,000) during the same period in 2023[110] Income Taxes - Loss before income taxes for the three-month period ended September 30, 2024 was $(453,000), a decrease of approximately $(635,000), or (348.9)%, compared to income before income taxes of $182,000 during the same period in 2023[115] - For the nine-month period ended September 30, 2024, the loss before income taxes was $(251,000), an increase of approximately $2,612,000, or 91.2%, compared to a loss of $(2,863,000) in the same period in 2023[116] - The effective tax rate was 0.0% for the nine-month periods ended September 30, 2024, and 2023, reflecting a full valuation allowance against deferred tax assets[118] Cash Flow and Working Capital - Cash provided by operating activities was $11,000 for the nine-month period ended September 30, 2024, representing an increase of $4,919,000 compared to cash used of $(4,908,000) during the same period in 2023[124] - The company's working capital increased to approximately $21,845,000 as of September 30, 2024, compared to $20,795,000 as of September 30, 2023, primarily due to higher inventory levels[125] - Cash used for investing activities was approximately $(933,000) for the nine-month period ended September 30, 2024, compared to $(606,000) during the same period in 2023[126] - Cash provided by financing activities was $1,045,000 for the nine-month period ended September 30, 2024, primarily driven by advances from the line of credit[127] Discontinued Operations - Loss from continuing operations for the nine-month period ended September 30, 2024, improved by approximately $3,675,000, resulting in a loss of $(251,000) compared to $(3,926,000) in the same period in 2023[120] - Loss from discontinued operations for the nine-month period ended September 30, 2024, improved by approximately $7,254,000, resulting in a loss of $(72,000) compared to $(7,326,000) in the same period in 2023[122] Strategic Focus - The company is focused on managing costs and enhancing operating cash flow to achieve profitability and shareholder value[131]
Servotronics(SVT) - 2024 Q3 - Quarterly Report