M-tron Industries, Inc. (NYSE American: MPTI) (“Company” or
“MtronPTI”) announced its financial results for the fiscal year
ended December 31, 2023. Management will host an earnings call on
Tuesday, March 26, 2024 at 10:30am EST.
- Total revenues for the year ended December 31, 2023, were $41.2
million, an increase of $9.3 million, or 29.3%, from $31.8 million
for the year ended December 31, 2022.
- Consolidated gross margin improved to 40.7% for the year ended
December 31, 2023, compared to 35.6% for the prior year.
- Order backlog was $47.8 million, an increase of 3.6% compared
to $46.2 million as of December 31, 2022.
- Diluted net income per share for the years ended December 31,
2023 and 2022 was $1.28 and $0.67, respectively.
- Adjusted EBITDA, a Non-GAAP measure, was $7.7 million for the
fiscal year ended December 31, 2023 versus $4.0 million for the
prior year.
Michael Ferrantino, MtronPTI’s Chief Executive Officer, stated,
“MtronPTI had a great first year as a public company. We focused on
improving our topline results each quarter while maintaining and
improving margins wherever possible and maintaining our vigilance
on general and administrative costs. We look forward to the
continuing success of MtronPTI while helping our motivated
employees and valued customers reach their goals in 2024 and
beyond.”
Results from Operations
MtronPTI’s portfolio is divided into three product groupings,
Frequency Control, Spectrum Control and Integrated Microwave
Assemblies, and has expanded from primarily crystal-based
components to include higher levels of integration, advanced
materials science, cavity-based products, and various types of
compensation methods employing integrated circuits and other
methods to create products geared for applications that require
high reliability in harsh environments. These products are
differentiated by their precise level of accuracy, stability over
time and within harsh environments, and very low phase noise.
Total revenues for the year ended December 31, 2023 were
$41,168,000, an increase of $9,323,000, or 29.3%, from $31,845,000
for the year ended December 31, 2022. The increase in revenue
reflects strong aerospace and defense product shipments.
Gross margin improved to 40.7% for the year ended December 31,
2023 compared to 35.6% for the prior year. Gross margins improved
over last year reflecting the increased business volume and the
effects of product mix changes, offset by inflationary headwinds
due to labor and materials cost increases.
As of December 31, 2023, our order backlog was $47,831,000, an
increase of 3.6% compared to $46,180,000 as of December 31, 2022.
In 2023 our book to bill ratio was greater than 1, at 1.04, with
2023 bookings of $42,818,000 following very strong 2022 bookings of
$48,586,000. Our sales funnel continues to be strong as we continue
with our new product offering and provide excellent technical and
customer service to our customers.
During the fourth quarter, all MtronPTI full-time employees
below the executive level were issued a one-time stock option grant
based on their respective years of service. The purpose of the
grant was to reward employees for their past contribution to the
Company and serves to align employee interests with those of our
stockholders. The stock option grant vested immediately, and with a
strike price of $36.06 and a life of three years, the Company
recorded $2,013,000 of stock-based compensation expense related to
its 183,300 stock options granted.
The Company reported an operating income of $4,299,000 for the
year ended December 31, 2023 compared to operating income of
$2,875,000 for the year ended December 31, 2022. This increase
reflects the higher revenues and effects from product mix changes,
offset by increased engineering, selling and administrative
expenses, which were 30.3% of revenue for the year ended December
31, 2023, compared to 26.6% of revenue for the year ended December
31, 2022. Excluding the $2,013,000 one-time expense for stock
options, engineering, selling and administrative expenses would
have been 25.4% of revenue for the year ended December 31, 2023, an
improvement over the 26.6% recorded for the prior year.
Quarterly, income before income taxes grew incrementally each
quarter during 2024, from $719,000 in Q1, 2024, to $2,046,000 for
Q3, 2024. Without the impact from the $2,013,000 one-time expense
for stock options, income before income taxes for Q4, 2024 would
have been $2,066,000, which would compare favorably to the
$2,595,000 that was recorded for the entire 2022 year.
Net income was $3,489,000 for the year ended December 31, 2023
compared to $1,798,000 for the year ended December 31, 2022. Basic
and diluted net income per share for the year ended December 31,
2023 was $1.29 and $1.28, respectively, versus $0.67 per share for
the year ended December 31, 2022.
Adjusted EBITDA, a Non-GAAP measure, was $2,425,000 for the
quarter ended December 31, 2023 versus $1,114,000 for the quarter
ended December 31, 2022, a portion of which was reported on a
standalone basis. Adjusted EBITDA was $7,692,000 for the year ended
December 31, 2023 versus $4,008,000 for the year ended December 31,
2022, a portion of which was reported on a standalone basis.
Adjusted EBITDA excluded excess Separation costs of $28,000 for
2023 and $219,000 for 2022. Included within the non-cash stock
compensation is $2,013,000 for the impact of the one-time employee
stock option grant. Note that adjusted EBITDA for the quarter and
year ended December 31, 2022 does not include any adjustments for
the potential impact from the additional costs of being a publicly
traded company. Management calculated the incremental direct costs
of being a public company which do not have any comparable amounts
in the prior year when results were presented partially on a
standalone basis at $107,000 and $842,000 for the quarter and year
ended December 31, 2023, respectively.
MtronPTI’s Separation
On October 7, 2022, the separation of the MtronPTI business from
The LGL Group, Inc. ("LGL" or "LGL Group") was completed (the
"Separation") and the Company became an independent, publicly
traded company trading on the NYSE American under the stock symbol
"MPTI." The Company’s financial results for periods up to the
Separation represent combined financial statements prepared on a
“carve-out” basis. The Company’s financial statements and results
for the periods after the Separation are consolidated and presented
based on the results of the Company as a standalone company.
Investor Call
Management, including MtronPTI's CEO, Michael Ferrantino and
CFO, James Tivy, will host a conference call with the investment
community on Tuesday, March 26, 2024 to discuss the Company's 2023
year end results and to respond to investor questions.
The call will begin at 10:30 am Eastern Time (U.S. and Canada)
on Tuesday, March 26, 2024 and can be accessed using the dial-in
details below:
Toll-Free Dial-In Number: 1 (800) 715-9871
Toll Dial-In Number: 1 (646) 307-1963
Conference ID: 8891215
An archive of the call will be available after the call on the
Events and Presentations page on the Investor Relations section of
MtronPTI’s website at
https://ir.mtronpti.com/events-and-presentations/default.aspx,
along with MtronPTI’s earnings press release.
M-tron Industries,
Inc.
Condensed Consolidated and
Combined Statements of Operations
(Amounts in Thousands, Except
Share and Per Share Amounts)
Quarter ended
Fiscal Year ended
December 31,
December 31,
(Unaudited)
(Amounts in thousands, except share
amounts)
2023
2022
2023
2022
REVENUES
$
10,773
$
8,673
$
41,168
$
31,845
Costs and expenses:
Manufacturing cost of sales
6,080
5,580
24,402
20,499
Engineering, selling and
administrative
4,753
2,265
12,467
8,471
OPERATING (LOSS) INCOME
(60
)
828
4,299
2,875
Interest income (expense), net
13
(5
)
7
(11
)
Other income (expense), net
100
(228
)
94
(269
)
INCOME BEFORE INCOME TAXES
53
595
4,400
2,595
Income tax (benefit) provision
(20
)
405
911
797
NET INCOME
$
73
$
190
$
3,489
$
1,798
Weighted average number of shares used in
basic EPS calculation
2,703,897
2,676,512
2,696,445
2,676,480
Weighted average number of shares used in
diluted EPS calculation
2,774,023
2,693,035
2,733,502
2,676,524
BASIC NET INCOME PER COMMON SHARE
$
0.03
$
0.07
$
1.29
$
0.67
DILUTED NET INCOME PER COMMON SHARE
$
0.03
$
0.07
$
1.28
$
0.67
M-tron Industries,
Inc.
Condensed Consolidated and
Combined Balance Sheets
(Amounts in Thousands)
December 31, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
3,913
$
926
Accounts receivable, net
4,802
5,197
Inventories, net
8,884
7,518
Prepaid expenses and other current
assets
588
673
Total Current Assets
18,187
14,314
Property, plant, and equipment, net
4,131
3,647
Right-of-use lease asset
97
147
Intangible assets, net
45
98
Deferred income tax asset
1,835
1,051
Other assets
10
16
Total Assets
$
24,305
$
19,273
LIABILITIES AND STOCKHOLDERS' EQUITY
Total Current Liabilities
4,384
4,856
Long-Term Liabilities
26
76
Total Liabilities
4,410
4,932
Total Stockholders' Equity
19,895
14,341
Total Liabilities and Stockholders'
Equity
$
24,305
$
19,273
M-tron Industries,
Inc.
NON-GAAP Condensed
Consolidated and Combined Statements of Operations
(Unaudited)
(Amounts in Thousands, Except
Share and Par Value Amounts)
Quarter ended
Fiscal Year ended
December 31,
December 31,
(Amounts in thousands, except share and
per share amounts)
2023
2022
2023
2022
Income before income taxes
$
53
$
595
$
4,400
$
2,595
Interest (income) expense, net
(13
)
5
(7
)
11
Depreciation and amortization
233
199
850
725
EBITDA
$
273
$
799
$
5,243
$
3,331
Non-cash stock compensation
2,124
96
2,421
458
Excess Separation costs
28
219
28
219
Adjusted EBITDA
$
2,425
$
1,114
$
7,692
$
4,008
Basic per share information:
Weighted average shares outstanding
2,703,897
2,676,512
2,696,445
2,676,480
Adjusted EBITDA per share
$
0.90
$
0.42
$
2.85
$
1.50
Diluted per share information:
Weighted average shares outstanding
2,774,023
2,693,035
2,733,502
2,676,524
Adjusted EBITDA per share
$
0.87
$
0.41
$
2.81
$
1.50
About MtronPTI:
M-tron Industries, Inc. trades publicly on the NYSE American
under the symbol MPTI. Originally founded in 1965, MtronPTI
designs, manufactures and markets highly-engineered, high
reliability frequency and spectrum control products and solutions.
As an engineering-centric company, MtronPTI provides close support
to its customers throughout our products’ entire life cycle,
including product design, prototyping, production and subsequent
product upgrades. MtronPTI has design and manufacturing facilities
in Orlando, Florida and Yankton, South Dakota, a sales office in
Hong Kong, and a manufacturing facility in Noida, India.
Forward Looking Statements
This press release includes forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, such as those pertaining to the uncertain financial impact
of COVID-19 and the Company’s financial condition, results of
operations, business strategy and financial needs. All statements
other than statements of current or historical fact contained in
this press release are forward-looking statements. The words
“believe,” “expect,” “anticipate,” “should,” “plan,” “will,” “may,”
“could,” “intend,” “estimate,” “predict,” “potential,” “continue”
or the negative of these terms and similar expressions, as they
relate to MtronPTI, are intended to identify forward-looking
statements.
These forward-looking statements are largely based on current
expectations and projections about future events and financial
trends that may affect the financial condition, results of
operations, business strategy and financial needs of the Company.
They can be affected by inaccurate assumptions, including the
risks, uncertainties and assumptions described in the filings made
by MtronPTI with the Securities and Exchange Commission, including
those risks set forth under the heading “Risk Factors” in the
Information Statement included as Exhibit 99.1 to the Company’s
Form 10 Registration Statement as amended and filed with the SEC on
August 19, 2022. In light of these risks, uncertainties and
assumptions, the forward-looking statements in this press release
may not occur and actual results could differ materially from those
anticipated or implied in the forward-looking statements. When you
consider these forward-looking statements, you should keep in mind
these risk factors and other cautionary statements in this press
release.
These forward-looking statements speak only as of the date of
this press release. MtronPTI undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
Accordingly, readers are cautioned not to place undue reliance on
these forward-looking statements. For these statements, we claim
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240325510659/en/
M-tron Industries, Inc.: Investor Relations: James
Tivy ir@mtronpti.com
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