M-tron Industries, Inc. Reports Fiscal Year 2023 Results and Announces Investor Call
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Insights
The significant revenue growth of M-tron Industries, highlighted by a 29.3% increase year-over-year, indicates robust sales performance, particularly in the aerospace and defense sectors. This expansion is a positive signal to investors, reflecting the company's ability to capitalize on market opportunities and possibly gain market share. The improvement in gross margin to 40.7% suggests effective cost management and possibly a favorable shift in product mix, which is a key indicator of financial health and operational efficiency. The reported order backlog, although only marginally increased, provides visibility into future revenues, supporting a stable outlook for the company's financial performance.
Furthermore, the diluted net income per share more than doubled from the previous year, which is a strong indicator of profitability and may influence investor sentiment positively. Adjusted EBITDA's significant increase is also noteworthy, as it is often used by investors to evaluate a company's operating performance and cash flow potential, excluding non-recurring items and stock-based compensation, which are considered less indicative of ongoing operations.
M-tronPTI's strategic focus on high-reliability products for harsh environments is a deliberate move to differentiate itself in the market. The emphasis on advanced materials science and integrated microwave assemblies caters to specialized industry needs, which can command higher margins and reduce competition. The consistent revenue increase quarter-over-quarter throughout 2024 underscores the company's market traction and could suggest that M-tronPTI is successfully executing its growth strategy.
The one-time stock option grant to employees below the executive level is a strategic move that could enhance employee retention and align interests with shareholders. This incentive might contribute to improved productivity and innovation, ultimately benefiting the company's long-term performance. However, it is important to monitor how these expenses impact the bottom line and whether the benefits of such programs outweigh the costs in the long run.
The separation of MtronPTI from The LGL Group and its transition to an independent, publicly traded entity is a significant corporate restructuring event. It's important to consider the legal and financial implications of such a move, including the potential for increased scrutiny from regulators and shareholders. The company's ability to navigate this transition while posting strong financial results is a testament to its management's strategic planning and execution capabilities.
Investors should pay attention to any material changes in reporting and compliance costs associated with being a standalone public company. The incremental direct costs, although not directly comparable to the previous year, should be closely monitored to ensure they do not disproportionately affect the company's financial performance in future periods.
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Total revenues for the year ended December 31, 2023, were
$41.2 million $9.3 million 29.3% , from$31.8 million -
Consolidated gross margin improved to
40.7% for the year ended December 31, 2023, compared to35.6% for the prior year. -
Order backlog was
$47.8 million 3.6% compared to$46.2 million -
Diluted net income per share for the years ended December 31, 2023 and 2022 was
$1.28 $0.67 -
Adjusted EBITDA, a Non-GAAP measure, was
$7.7 million $4.0 million
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
Gross margin improved to
As of December 31, 2023, our order backlog was
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
The Company reported an operating income of
Quarterly, income before income taxes grew incrementally each quarter during 2024, from
Net income was
Adjusted EBITDA, a Non-GAAP measure, was
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 (
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) |
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Quarter ended |
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Fiscal Year ended |
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December 31, |
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December 31, |
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(Unaudited) |
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(Amounts in thousands, except share amounts) |
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2023 |
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2022 |
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2023 |
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2022 |
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REVENUES |
|
$ |
10,773 |
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|
$ |
8,673 |
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|
$ |
41,168 |
|
|
$ |
31,845 |
|
Costs and expenses: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing cost of sales |
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|
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 |
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|
2,703,897 |
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|
|
2,676,512 |
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|
|
2,696,445 |
|
|
|
2,676,480 |
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Weighted average number of shares used in diluted EPS calculation |
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|
2,774,023 |
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|
|
2,693,035 |
|
|
|
2,733,502 |
|
|
|
2,676,524 |
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BASIC NET INCOME PER COMMON SHARE |
|
$ |
0.03 |
|
|
$ |
0.07 |
|
|
$ |
1.29 |
|
|
$ |
0.67 |
|
DILUTED NET INCOME PER COMMON SHARE |
|
$ |
0.03 |
|
|
$ |
0.07 |
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|
$ |
1.28 |
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$ |
0.67 |
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M-tron Industries, Inc. Condensed Consolidated and Combined Balance Sheets (Amounts in Thousands) |
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December 31, 2023 |
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December 31, 2022 |
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ASSETS |
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Cash and cash equivalents |
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$ |
3,913 |
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$ |
926 |
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Accounts receivable, net |
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4,802 |
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|
5,197 |
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Inventories, net |
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8,884 |
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7,518 |
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Prepaid expenses and other current assets |
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|
588 |
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|
|
673 |
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Total Current Assets |
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18,187 |
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14,314 |
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Property, plant, and equipment, net |
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4,131 |
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|
3,647 |
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Right-of-use lease asset |
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|
97 |
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|
|
147 |
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Intangible assets, net |
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|
45 |
|
|
|
98 |
|
Deferred income tax asset |
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|
1,835 |
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|
|
1,051 |
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Other assets |
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|
10 |
|
|
|
16 |
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Total Assets |
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$ |
24,305 |
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|
$ |
19,273 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Total Current Liabilities |
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4,384 |
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|
4,856 |
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Long-Term Liabilities |
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26 |
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|
|
76 |
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Total Liabilities |
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4,410 |
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|
|
4,932 |
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Total Stockholders' Equity |
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|
19,895 |
|
|
|
14,341 |
|
Total Liabilities and Stockholders' Equity |
|
$ |
24,305 |
|
|
$ |
19,273 |
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M-tron Industries, Inc. NON-GAAP Condensed Consolidated and Combined Statements of Operations
(Unaudited)
(Amounts in Thousands, Except Share and Par Value Amounts) |
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Quarter ended |
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Fiscal Year ended |
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December 31, |
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December 31, |
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(Amounts in thousands, except share and per share amounts) |
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2023 |
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|
2022 |
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|
2023 |
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2022 |
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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 |
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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 |
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|
$ |
1,114 |
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$ |
7,692 |
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|
$ |
4,008 |
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Basic per share information: |
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|
|
|
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Weighted average shares outstanding |
|
|
2,703,897 |
|
|
|
2,676,512 |
|
|
|
2,696,445 |
|
|
|
2,676,480 |
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Adjusted EBITDA per share |
|
$ |
0.90 |
|
|
$ |
0.42 |
|
|
$ |
2.85 |
|
|
$ |
1.50 |
|
Diluted per share information: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
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|
$ |
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
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
Source: M-tron Industries, Inc.
FAQ
What were M-tron Industries, Inc.'s total revenues for the fiscal year ended December 31, 2023?
What was the percentage increase in total revenues for M-tron Industries, Inc. from the previous year?
What was M-tron Industries, Inc.'s consolidated gross margin for the year ended December 31, 2023?
What was the diluted net income per share for M-tron Industries, Inc. for the year ended December 31, 2023?
What was M-tron Industries, Inc.'s adjusted EBITDA for the fiscal year ended December 31, 2023?
