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Twin Disc(TWIN) - 2025 Q2 - Quarterly Results
TWINTwin Disc(TWIN)2025-02-05 13:30

Sales Performance - Sales for the fiscal 2025 second quarter increased 23.2% year-over-year to 89.9million,drivenbya89.9 million, driven by a 10.0 million incremental benefit from Katsa Oy[5] - Organic sales increased 10.1%, attributed to strength in the Marine and Propulsion Systems and Industrial product segments[5] - Organic net sales for the quarter were 79,579,000,upfrom79,579,000, up from 72,243,000 in the same quarter of 2023, indicating a growth of approximately 10.5%[26] Profitability - Gross profit increased 5.0% to 21.7million,whilegrossmargindecreasedapproximately420basispointsto24.121.7 million, while gross margin decreased approximately 420 basis points to 24.1% due to inventory write-downs and unfavorable product mix[7] - EBITDA increased 13.5% year-over-year to 6.3 million, reflecting solid operational performance[10] - EBITDA for the quarter was 6,262,000,comparedto6,262,000, compared to 5,519,000 in the prior year, representing an increase of about 13.5%[22] - The company reported a net loss of 1,673,000forthequarter,comparedtoanetlossof1,673,000 for the quarter, compared to a net loss of 148,000 in the same quarter of 2023[30] Expenses and Liabilities - Marketing, engineering and administrative expenses increased by 9.9% to 18.9million,primarilyduetotheadditionofKatsa[8]−Depreciationandamortizationexpensesincreasedto18.9 million, primarily due to the addition of Katsa[8] - Depreciation and amortization expenses increased to 6,534,000 from 5,023,000,reflectingariseofabout305,023,000, reflecting a rise of about 30%[30] - Current liabilities increased to 102,658,000 from 99,516,000,showingagrowthofapproximately2.299,516,000, showing a growth of approximately 2.2%[28] Cash Flow and Debt - Cash decreased 24.3% to 15.9 million, while total debt increased 40.5% to 24.9million,primarilyduetotheKatsaacquisition[11]−Totaldebtincreasedto24.9 million, primarily due to the Katsa acquisition[11] - Total debt increased to 24,873,000 as of December 27, 2024, from 17,698,000intheprioryear,whilenetdebtroseto17,698,000 in the prior year, while net debt rose to 8,967,000 from a net cash position of (3,323,000)[24]−Cashandcashequivalentsdecreasedto(3,323,000)[24] - Cash and cash equivalents decreased to 15,906,000 from 21,021,000year−over−year,indicatingadeclineofapproximately24.521,021,000 year-over-year, indicating a decline of approximately 24.5%[28] Order Backlog and Market Outlook - The backlog of orders to be shipped over the next six months is approximately 124.0 million, supported by strong ongoing order activity[11] - The industrial segment has started to recover, with improving order rates through the quarter[3] - The company aims to enhance its business and explore additional growth opportunities while focusing on hybrid and electric solutions[4] Dividends and Assets - The company paid dividends of 1,136,000duringthequarter,comparedto1,136,000 during the quarter, compared to 560,000 in the same quarter of the previous year, marking an increase of 102.9%[30] - Total assets decreased to 307,360,000from307,360,000 from 312,058,000, reflecting a decline of about 1.5%[28] Net Income - Net income attributable to Twin Disc was 0.9million,or0.9 million, or 0.07 per diluted share, consistent with the prior year[10] - Net income attributable to Twin Disc for the quarter ended December 27, 2024, was 919,000,comparedto919,000, compared to 930,000 for the same period in 2023, reflecting a slight decrease[22]