M-tron Industries, Inc. Reports First Quarter 2024 Results and Reminds Stakeholders of Investor Day
M-tron Industries, Inc. (NYSE American: MPTI) reported a significant revenue increase of $1,818,000 to $11,185,000 for the first quarter of 2024 compared to $9,367,000 for the same period in 2023. The gross margin saw a notable increase of 861 basis points to 42.7%. Net income per diluted share rose by $0.33 to $0.53. However, backlog decreased to $46,130,000 as of March 31, 2024. Adjusted EBITDA surged by $1,234,000 to $2,262,000. The Company's Chief Executive Officer highlighted the strong operational performance and revenue growth, setting a positive outlook for shareholders. An Investor Day is scheduled for May 8, 2024, to provide insights into the Company's strategic direction and financial performance.
Significant revenue increase of $1,818,000 to $11,185,000 for the first quarter of 2024.
Gross margin improved by 861 basis points to 42.7%.
Net income per diluted share increased by $0.33 to $0.53.
Adjusted EBITDA surged by $1,234,000 to $2,262,000.
CEO highlighted strong operational performance and revenue growth.
Investor Day scheduled for May 8, 2024, to provide strategic insights.
Backlog decreased to $46,130,000 as of March 31, 2024.
Insights
The reported revenue increase and improved gross margin for M-tron Industries Inc. indicate a robust operational performance, particularly in the context of a reported highest quarterly revenue in the company's recent history. A key factor in this upturn is the strategic shift towards higher-margin products. This is a common approach within industries aiming to improve profitability, though it requires successful execution to avoid alienating existing customer bases dependent on lower-margin products.
Net income has seen a significant uptick, which, on the surface, is a strong signal for investors. However, the backlog reduction suggests a faster conversion of backlog to revenue, which could potentially lead to a need for stronger order inflow to sustain revenue growth. Investors should monitor both order backlog and pipeline as indicators of future performance. Additionally, the non-GAAP measure, Adjusted EBITDA, has risen markedly. While EBITDA is often used to assess a company’s operating performance, investors should approach non-GAAP measures with caution and consider them alongside GAAP measurements for a more holistic view.
M-tron Industries' focus on high-margin products appears to be paying dividends, an approach that aligns with broader market trends where companies are seeking to innovate and differentiate their offerings. Despite a slight decrease in backlog, which could be seen as a negative, the overall increase in operational efficiency and profitability might suggest that the company is effectively managing its sales pipeline and production processes. From a market perspective, the company's performance might indicate its competitive positioning within the industry, which is a pertinent factor for evaluating future growth prospects.
-
Revenues increased
$1,818,000 $11,185,000 $9,367,000 -
Gross margin increased 861 basis points to
42.7% for the three months ended March 31, 2024 from34.1% for the three months ended March 31, 2023 -
Net income per diluted share increased
$0.33 $0.53 $0.20 -
Backlog was
$46,130,000 $1,701,000 $47,831,000 $592,000 $45,538,000 -
Adjusted EBITDA, a non-GAAP measure, increased
$1,234,000 $2,262,000 $1,028,000
Michael Ferrantino, MtronPTI’s Chief Executive Officer, stated, "MtronPTI's team executed exceptionally well on all fronts, delivering the highest quarterly revenues in 15+ years. We continue to execute on our operational goals and product roadmap to deliver greater value to our shareholders."
MtronPTI will host an Investor Day on Wednesday, May 8, 2024 at 10:00am ET at the New York Stock Exchange to provide shareholders, analysts and other stakeholders with an in-depth look into MtronPTI's strategic direction, financial performance, and operational highlights. The event will include presentations by key members of MtronPTI’s executive leadership team, as well as opportunities for Q&A sessions.
The live presentation can be accessed via the link and information below or via MtronPTI's investor relations website at https://ir.mtronpti.com under Events and Presentations.
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Link to Meeting: |
https://us06web.zoom.us/j/89452383127?pwd=EJoIUqevYjlVMPuxFn4U1uFBbQ6RUz.1 |
| Meeting ID: | 894 5238 3127 |
|
| Passcode: | 800589 |
The webcast and presentation materials will be archived and available for replay.
Results from Operations
First quarter 2024 Net income was
First quarter 2024 Adjusted EBITDA was
First quarter 2024 Gross margin was
Backlog was
M-tron Industries, Inc. |
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Condensed Consolidated Statements of Operations |
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(Unaudited) |
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|
|
Three Months Ended March 31, |
||||||
(in thousands, except share data) |
|
2024 |
|
2023 |
||||
Revenues |
|
$ |
11,185 |
|
|
$ |
9,367 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
Manufacturing cost of sales |
|
|
6,406 |
|
|
|
6,171 |
|
Engineering, selling and administrative |
|
|
2,990 |
|
|
|
2,435 |
|
Total costs and expenses |
|
|
9,396 |
|
|
|
8,606 |
|
Operating income |
|
|
1,789 |
|
|
|
761 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income (expense), net |
|
|
32 |
|
|
|
(2 |
) |
Other income (expense), net |
|
|
42 |
|
|
|
(40 |
) |
Total other income (expense), net |
|
|
74 |
|
|
|
(42 |
) |
Income before income taxes |
|
|
1,863 |
|
|
|
719 |
|
Income tax expense |
|
|
377 |
|
|
|
166 |
|
Net income |
|
$ |
1,486 |
|
|
$ |
553 |
|
|
|
|
|
|
|
|
|
|
Income per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.55 |
|
|
$ |
0.21 |
|
Diluted |
|
$ |
0.53 |
|
|
$ |
0.20 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
2,716,202 |
|
|
|
2,678,434 |
|
Diluted |
|
|
2,784,960 |
|
|
|
2,701,418 |
|
M-tron Industries, Inc. |
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(Unaudited) |
||||||||
(in thousands, except share data) |
|
March 31, 2024 |
|
December 31, 2023 |
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Assets: |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
5,414 |
|
|
$ |
3,913 |
|
Accounts receivable, net of reserves of |
|
|
5,594 |
|
|
|
4,802 |
|
Inventories, net |
|
|
9,161 |
|
|
|
8,884 |
|
Prepaid expenses and other current assets |
|
|
554 |
|
|
|
588 |
|
Total current assets |
|
|
20,723 |
|
|
|
18,187 |
|
Property, plant and equipment, net |
|
|
4,034 |
|
|
|
4,131 |
|
Right-of-use lease asset |
|
|
81 |
|
|
|
97 |
|
Intangible assets, net |
|
|
40 |
|
|
|
45 |
|
Deferred income tax asset |
|
|
1,896 |
|
|
|
1,835 |
|
Other assets |
|
|
8 |
|
|
|
10 |
|
Total assets |
|
$ |
26,782 |
|
|
$ |
24,305 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
5,057 |
|
|
|
4,384 |
|
Non-current liabilities |
|
|
10 |
|
|
|
26 |
|
Total liabilities |
|
|
5,067 |
|
|
|
4,410 |
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
|
21,715 |
|
|
|
19,895 |
|
Total liabilities and stockholders' equity |
|
$ |
26,782 |
|
|
$ |
24,305 |
|
Non-GAAP Financial Measures
Throughout this press release, including the results from operations, the Company presents its financial condition and results of operations in the way it believes will be most meaningful and representative of its business results. Some of the measurements the Company uses are "Non-GAAP financial measures" under SEC rules and regulations. The non-GAAP financial measures the Company presents are listed below and may not be comparable to similarly-named measures reported by other companies. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables attached to this press release. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net earnings or diluted earnings per share prepared in accordance with GAAP.
The Company uses the following operating performance measure because the Company believes it provides both management and investors with a more complete understanding of the underlying operational results and trends and our marketplace performance
Adjusted EBITDA is derived by excluding the items set forth below from Income before income taxes. Excluded items include the following:
- Interest income
- Interest expense
- Depreciation
- Amortization
- Non-cash stock-based compensation
- Other discrete items that might have a significant impact on comparable GAAP measures and could distort the evaluation of our normal operating performance
Reconciliation of GAAP Income Before Income Taxes to Non-GAAP Adjusted EBITDA
|
|
Three Months Ended March 31, |
||||||
(in thousands, except share data) |
|
2024 |
|
2023 |
||||
Income before income taxes |
|
$ |
1,863 |
|
|
$ |
719 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Interest expense (income) |
|
|
(32 |
) |
|
|
2 |
|
Depreciation |
|
|
219 |
|
|
|
195 |
|
Amortization |
|
|
5 |
|
|
|
13 |
|
Total adjustments |
|
|
192 |
|
|
|
210 |
|
EBITDA |
|
|
2,055 |
|
|
|
929 |
|
Non-cash stock compensation |
|
|
207 |
|
|
|
71 |
|
Excess Spin-off costs |
|
|
— |
|
|
|
28 |
|
Adjusted EBITDA |
|
$ |
2,262 |
|
|
$ |
1,028 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per common share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.83 |
|
|
$ |
0.38 |
|
Diluted |
|
$ |
0.81 |
|
|
$ |
0.38 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
2,716,202 |
|
|
|
2,678,434 |
|
Diluted |
|
|
2,784,960 |
|
|
|
2,701,418 |
|
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
Cautionary Note Concerning 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 Company’s Annual Report on Form 10-K as filed with the SEC on March 30, 2023. 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/20240507349659/en/
M-tron Industries, Inc. Investor Relations:
Linda M. Biles
ir@mtronpti.com
Source: M-tron Industries, Inc.
FAQ
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