The LGL Group, Inc. Reports Fourth Quarter 2024 Results

Rhea-AI Summary

LGL Group (NYSE American: LGL) reported its Q4 and full-year 2024 financial results. Q4 2024 saw revenues increase to $1.16M from $995K, with net income per diluted share rising to $0.04 from $0.02. Gross margin improved to 60.0% from 54.9% year-over-year.

For full-year 2024, revenues grew to $4.29M from $3.68M, with net income per diluted share increasing to $0.08 from $0.05. The company maintained strong liquidity with $41.6M in cash and marketable securities. Order backlog stood at $336K, up from $143K year-over-year.

Notable developments include P3 Logistic Solutions being selected for the DARPA Venture Horizons program, and warrants becoming exercisable at $4.75 per share through November 16, 2025. The acquisition of Morgan Group Holding Co. is expected to close in Q2 2025.

Positive

• Revenue growth: Q4 revenue up 16.3% YoY to $1.157M
• Full-year revenue increased 16.7% to $4.292M
• Q4 gross margin improved to 60.0% from 54.9%
• Strong liquidity position with $41.6M in cash and securities
• Order backlog increased 135% YoY to $336K
• Selection as DARPA Venture Horizons program partner

Negative

• Q4 income before taxes decreased by $84K to $219K
• Full-year gross margin declined to 53.0% from 53.9%
• Backlog decreased by $169K from Q3 2024
• Higher manufacturing costs and administrative expenses

Insights

Financial Analyst

LGL Group's Q4 and full-year 2024 results show mixed performance indicators. While quarterly revenue increased 16.3% to $1.16 million and full-year revenue grew 16.7% to $4.29 million, income from continuing operations before taxes actually decreased 27.7% to $219,000 for Q4.

The quarterly gross margin improvement to 60.0% from 54.9% year-over-year signals positive product mix shifts, though the full-year margin declined slightly to 53.0%. The order backlog grew 135% to $336,000 year-over-year, providing modest visibility for near-term revenue.

Most notably, LGL maintains a substantial $41.6 million cash and marketable securities position - significantly exceeding its $34.9 million market capitalization. Of this amount, $24.6 million is allocated to the company's merchant investment activities, highlighting its strategic shift toward investment operations beyond its core electronic instruments business.

The company's selection as a DARPA Venture Horizons program partner positions it to potentially identify defense technology investment opportunities. Additionally, the exercisable warrants (strike price $4.75) and pending Morgan Group acquisition introduce elements that could reshape the company's capital structure and business focus in 2025.

The company's operational scale remains quite small relative to its liquid assets, making this more of a capital allocation story than a pure operations play. The improved EPS and substantial cash position provide flexibility, but investors should closely monitor how effectively management deploys capital across its expanding investment initiatives.

Orlando, Florida--(Newsfile Corp. - April 1, 2025) - The LGL Group, Inc. (NYSE American: LGL) ("LGL," "LGL Group," or the "Company") announced today its financial results for the fourth quarter and full fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

• Total revenues increased $162,000 to $1,157,000 for the three months ended December 31, 2024 from $995,000 for the three months ended December 31, 2023

• Income from continuing operations before income taxes and after non-controlling interests decreased $84,000 to $219,000 for the three months ended December 31, 2024 from $303,000 for the three months ended December 31, 2023

• Net income per diluted share increased $0.02 to $0.04 for the three months ended December 31, 2024 from $0.02 for the three months ended December 31, 2023

Fiscal Year 2024 Highlights

• Total revenues increased $614,000 to $4,292,000 for the fiscal year ended December 31, 2024 from $3,678,000 for the fiscal year ended December 31, 2023

• Income from continuing operations before income taxes and after non-controlling interests increased $11,000 to $609,000 for the fiscal year ended December 31, 2024 from $598,000 for the fiscal year ended December 31, 2023

• Net income per diluted share increased $0.03 to $0.08 for the fiscal year ended December 31, 2024 from $0.05 for the fiscal year ended December 31, 2023

• Cash and cash equivalents and marketable securities were $41,602,000 as of December 31, 2024

"The growth in our Electronic Instruments business reflects our commitment to driving innovation and delivering high-performance instruments to our customers," said Marc Gabelli, Chairman and Co-Chief Executive Officer. "The yields on our U.S. Treasuries portfolio have remained strong despite the Federal Reserve rate cuts in 2024. Nevertheless, we continue to examine cost efficiencies including state of corporate domicile."

"We are also pleased to announce we were selected as a partner in the Defense Advanced Research Projects Agency ("DARPA") Venture Horizons program and shall seek such merchant investment opportunities to build value for shareholders," continued Mr. Gabelli.

Consolidated Results

Fourth Quarter 2024 net income available to LGL Group common stockholders was $202,000, or $0.04 per diluted share, compared with $134,000, or $0.02 per diluted share, in the fourth quarter of 2023. The increase was primarily due to higher Net sales driven by higher product shipments.

The increase was partially offset by

• higher Manufacturing cost of sales due to shipments of higher margin products; and

• higher Engineering, selling and administrative driven by changes in headcount and higher wages and benefits.

Gross Margin

Gross margin increased to 60.0% for the three months ended December 31, 2024 compared to 54.9% for the three months ended December 31, 2023. The increase was primarily due to sales of higher margin products.

Fiscal Year 2024 net income available to LGL Group common stockholders was $432,000, or $0.08 per diluted share, compared with $269,000, or $0.05 per diluted share, in 2023. The increase was primarily due to:

• higher Net sales driven by higher product shipments; and

• higher Net investment income driven by higher balances invested in United States Treasury money market funds.

The increase was partially offset by:

• lower Net gains (losses) driven by lower mark-to-market movements and sales of Marketable securities;

• higher Manufacturing cost of sales consistent with the overall growth in Net sales and sales of higher-cost products during Q3 2024; and

• higher Engineering, selling and administrative driven by changes in headcount and higher wages and benefits.

Gross Margin

Gross margin decreased to 53.0% for the fiscal year ended December 31, 2024 compared to 53.9% for the fiscal year ended December 31, 2023 due to sales of lower margin products in Q3 2024.

Backlog

As of December 31, 2024, our order backlog was $336,000, an increase of $193,000 from $143,000 as of December 31, 2023 and a decrease of $169,000 from $505,000 as of September 30, 2024. The backlog of unfilled orders includes amounts based on signed contracts, which we have determined are firm orders likely to be fulfilled primarily in the next 12 months but most of the backlog will ship in the next 90 days.

Liquidity

Our working capital metrics were as follows:

		As of December 31,
(in thousands)		2024				2023
Current assets		$	42,642			$	41,566
Less: Current liabilities			904				474
Working capital		$	41,738			$	41,092

 

As of December 31, 2024, LGL Group had investments (classified within Cash and cash equivalents and Marketable securities) with a fair value of $41.2 million, of which $24.6 million was held within the Merchant Investment business.

Warrants to Purchase Common Stock

On March 4, 2025, the warrants to purchase shares of LGL Group common stock granted on November 16, 2020 became exercisable, when the average VWAP of LGL Group common stock exceeded $6.65 for 30 consecutive trading days. The warrants are exercisable through November 16, 2025, their expiration date.

Pursuant to the warrant agreement:

• Five (5) warrants to purchase one (1) share of common stock

• Common stock can be purchased at a strike price of $4.75 per share

• No fractional shares will be issued

We expect to release updated exercise instructions in the coming weeks. All exercise notices and payment must be received by Computershare Trust Company, N.A. no later than 5:00 p.m. on November 16, 2025. Holders in street name should contact their broker, bank, or other intermediary for information on how to exercise warrants.

Acquisition of Morgan Group Holding Co. Update

LGL Group's acquisition of Morgan Group Holding Co. ("MGHL") is still in process and expected to close in Q2 2025.

New Merchant Investment Unit

P3 Logistic Solutions, Inc. ("P3"), a wholly owned subsidiary of LGL Group and led Mr. Gabelli, was selected as a partner in the DARPA Venture Horizons program, joining a network focused on advancing and scaling breakthrough defense-related technologies. This prestigious program establishes a national network of commercial partners to support the identification, acceleration, and transition of select technologies developed through DARPA programs. Through its participation, P3 will collaborate with DARPA to advance innovative capabilities with the potential to address critical national security challenges while fostering broader commercial impact.

About The LGL Group, Inc.

The LGL Group, Inc. ("LGL," "LGL Group," or the "Company") is a holding company engaged in services, merchant investment and manufacturing business activities. Precise Time and Frequency, LLC ("PTF") is a globally positioned producer of industrial Electronic Instruments and commercial products and services. Founded in 2002, PTF operates from our design and manufacturing facility in Wakefield, Massachusetts. Lynch Capital International LLC is focused on the development of value through investments.

LGL Group was incorporated in 1928 under the laws of the State of Indiana, and in 2007, the Company was reincorporated under the laws of the State of Delaware as The LGL Group, Inc. We maintain our executive offices at 2525 Shader Road, Orlando, Florida 32804. Our telephone number is (407) 298-2000. Our Internet address is www.lglgroup.com. LGL common stock and warrants are traded on the NYSE American under the symbols "LGL" and "LGL WS," respectively.

LGL Group's business strategy is primarily focused on growth through expanding new and existing operations across diversified industries. The Company's engineering and design origins date back to the early 1900s. In 1917, Lynch Glass Machinery Company ("Lynch Glass"), the predecessor of LGL Group, was formed and emerged in the late 1920s as a successful manufacturer of glass-forming machinery. Lynch Glass was then renamed Lynch Corporation ("Lynch") and was incorporated in 1928 under the laws of the State of Indiana. In 1946, Lynch was listed on the "New York Curb Exchange," the predecessor to the NYSE American. The Company has a had a long history of owning and operating various business in the precision engineering, manufacturing, and services sectors.

Cautionary Note Concerning Forward-Looking Statements

This press release may contain 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 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 LGL Group, 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 LGL Group with the Securities and Exchange Commission ("SEC"), including those risks set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on March 31, 2025. 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. LGL Group 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.

###

Contact:

The LGL Group, Inc.
Christopher Nossokoff
(407) 298-2000
info@lglgroup.com

The LGL Group, Inc.
Consolidated Statements of Operations
(Unaudited)

		Three Months Ended December 31,								Fiscal Year Ended December 31,
(in thousands, except share data)		2024				2023				2024				2023
Revenues:
Net sales		$	653			$	446			$	2,226			$	1,728
Net investment income			503				549				2,071				1,566
Net gains (losses)			1				-				(5	)			384
Total revenues			1,157				995				4,292				3,678
Expenses:
Manufacturing cost of sales			261				201				1,047				796
Engineering, selling and administrative			651				465				2,546				2,236
Total expenses			912				666				3,593				3,032
Income from continuing operations before income tax expense			245				329				699				646
Income tax expense			17				169				177				301
Net income from continuing operations			228				160				522				345
Income (loss) from discontinued operations, net of tax			-				-				-				(28	)
Net income			228				160				522				317
Less: Net income attributable to non-controlling interests			26				26				90				48
Net income attributable to LGL Group common stockholders		$	202			$	134			$	432			$	269
Income (loss) per common share attributable to LGL Group common stockholders:
Basic (a):
Income from continuing operations		$	0.04			$	0.03			$	0.08			$	0.06
Income (loss) from discontinued operations			-				-				-				(0.01	)
Net income attributable to LGL Group common stockholders		$	0.04			$	0.03			$	0.08			$	0.05
Diluted (a):
Income from continuing operations		$	0.04			$	0.02			$	0.08			$	0.06
Income (loss) from discontinued operations			-				-				-				(0.01	)
Net income attributable to LGL Group common stockholders		$	0.04			$	0.02			$	0.08			$	0.05
Weighted average shares outstanding:
Basic			5,352,937				5,352,937				5,352,937				5,352,937
Diluted			5,577,062				5,381,685				5,553,823				5,352,937
(a) Basic and diluted earnings per share are calculated using actual, unrounded amounts. Therefore, the components of earnings per share may not sum to its corresponding total.

 

The LGL Group, Inc.
Consolidated Balance Sheets
(Unaudited)

		December 31,
(in thousands)		2024				2023
Assets:
Current assets:
Cash and cash equivalents		$	41,585			$	40,711
Marketable securities			17				22
Accounts receivable, net			493				356
Inventories, net			267				204
Prepaid expenses and other current assets			280				273
Total current assets			42,642				41,566
Property, plant, and equipment, net			-				-
Right-of-use lease asset			308				75
Intangible assets, net			36				57
Deferred income taxes, net			159				152
Total assets		$	43,145			$	41,850
Liabilities:
Total current liabilities			904				474
Non-current liabilities			1,001				694
Total liabilities			1,905				1,168
Total LGL Group stockholders' equity			39,230				38,762
Non-controlling interests			2,010				1,920
Total stockholders' equity			41,240				40,682
Total liabilities and stockholders' equity		$	43,145			$	41,850

 

The LGL Group, Inc.
Segment Results
(Unaudited)

		Three Months Ended December 31,
(in thousands)		2024				2023				$ Change				% Change
Revenues:
Electronic Instruments		$	653			$	446			$	207				46.4	%
Merchant Investment			306				327				(21	)			-6.4	%
Corporate			198				222				(24	)			-10.8	%
Total revenues			1,157				995				162				16.3	%
Expenses:
Electronic Instruments			530				458				72				15.7	%
Merchant Investment			164				64				100				156.3	%
Corporate			218				144				74				51.4	%
Total expenses			912				666				246				36.9	%
Income (loss) from continuing operations
Electronic Instruments			123				(12	)			135				1,125.0	%
Merchant Investment			142				263				(121	)			-46.0	%
Corporate			(20	)			78				(98	)			-125.6	%
Income from continuing operations before income taxes			245				329				(84	)			-25.5	%
Income tax expense			17				169				(152	)			-89.9	%
Net income from continuing operations			228				160				68				42.5	%
Income from discontinued operations, net of tax			-				-				-			n/m
Net income			228				160				68				42.5	%
Less: Net income attributable to non-controlling interests			26				26				-				0.0	%
Net income attributable to LGL Group common stockholders		$	202			$	134			$	68				50.7	%

 

The LGL Group, Inc.
Segment Results
(Unaudited)

		Fiscal Year Ended December 31,
(in thousands)		2024				2023				$ Change				% Change
Revenues:
Electronic Instruments		$	2,226			$	1,728			$	498				28.8	%
Merchant Investment			1,228				869				359				41.3	%
Corporate			838				1,081				(243	)			-22.5	%
Total revenues			4,292				3,678				614				16.7	%
Expenses:
Electronic Instruments			1,983				1,576				407				25.8	%
Merchant Investment			381				216				165				76.4	%
Corporate			1,229				1,240				(11	)			-0.9	%
Total expenses			3,593				3,032				561				18.5	%
Income (loss) from continuing operations
Electronic Instruments			243				152				91				59.9	%
Merchant Investment			847				653				194				29.7	%
Corporate			(391	)			(159	)			(232	)			-145.9	%
Income from continuing operations before income taxes			699				646				53				8.2	%
Income tax expense			177				301				(124	)			-41.2	%
Net income from continuing operations			522				345				177				51.3	%
(Loss) income from discontinued operations, net of tax			-				(28	)			28				100.0	%
Net income			522				317				205				64.7	%
Less: Net income attributable to non-controlling interests			90				48				42				87.5	%
Net income attributable to LGL Group common stockholders		$	432			$	269			$	163				60.6	%

 

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/246809

FAQ

What were LGL Group's Q4 2024 revenue and earnings results?

LGL reported Q4 2024 revenues of $1.157M (up from $995K) and earnings of $0.04 per diluted share (up from $0.02).

How much cash and marketable securities does LGL Group have as of December 2024?

LGL Group held $41.602M in cash and marketable securities, with $24.6M allocated to the Merchant Investment business.

What are the terms of LGL Group's warrant exercise program?

Warrants require 5 warrants to purchase 1 share at $4.75 per share, exercisable through November 16, 2025.

When will LGL Group complete the Morgan Group Holding Co. acquisition?

The acquisition is expected to close in Q2 2025.

How did LGL's gross margin perform in Q4 2024?

Gross margin increased to 60.0% in Q4 2024 from 54.9% in Q4 2023 due to sales of higher margin products.