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Servotronics, Inc. (NYSE American: SVT) is a leading U.S.-based designer and manufacturer of high-quality components, systems, and sub-systems. Founded in 1959, Servotronics specializes in servo-control valves, torque motors, actuators, check valves, pressure regulators, and metallic seals. These products are essential for applications requiring precise control and reliability, such as commercial and military aircraft, helicopters, ground vehicles, and outer space missions.
Operating from a state-of-the-art 82,000 square foot facility in Elma, New York, Servotronics continues to innovate and produce top-tier components for a diverse range of industries. The company is recognized for its problem-solving capabilities and has earned a strong reputation as a reliable partner in the aerospace sector.
Despite recent challenges, Servotronics remains focused on its core Advanced Technology Group business. The company has shown resilience by divesting the Ontario Knife Company assets and refocusing efforts on aerospace and other high-tech markets. This strategic transformation is expected to drive sustainable growth and improved operating results.
Financially, Servotronics reported significant milestones in 2023, including a 31% increase in third-quarter revenues to $11.6 million, driven by a resurgence in the commercial aviation market. Gross profit also saw a substantial rise, benefiting from increased sales volumes and improved production efficiencies.
Recent leadership changes, such as the appointments of Francisco Tizón as Director of Sales & Marketing and Harrison W. Kelly III as Chief Operating Officer, underscore Servotronics' commitment to growth and operational excellence. These strategic hires aim to strengthen customer relationships, expand market presence, and enhance operational efficiencies.
Looking ahead, Servotronics aims to leverage its strong market position, focusing on operational efficiencies, product quality, and timely delivery to meet growing demand. The company is well-positioned to capitalize on positive trends in the aerospace market and deliver superior returns to its shareholders.
Servotronics, Inc. (NYSE American – SVT) has appointed William F. Farrell, Jr. as its new Chief Executive Officer, effective April 25, 2022. Farrell, who also joins the company's Board of Directors, brings over 30 years of experience from Moog Inc., where he managed businesses with revenues up to $600 million. The Board emphasizes Farrell's integrity and experience in driving growth in advanced manufacturing. Servotronics' previous CEO responsibilities were held by COO James C. Takacs since June 2021. The company aims to strengthen its market position and explore new opportunities under Farrell's leadership.
Servotronics, Inc. (NYSE American – SVT) reported net income of $4.1 million, or $1.68 per diluted share, for 2021, a substantial increase from $100,000, or $0.04, in 2020. The growth is attributed to $9.6 million in income from PPP loan forgiveness and a focus on improving Advanced Technology Group sales. 2021 total revenues were $40.6 million, down from $49.8 million in 2020, primarily due to pandemic impacts. The company anticipates first quarter 2022 revenue growth, driven by ATG performance and new long-term contracts.
Servotronics, Inc. (NYSE American - SVT) announced it received a shareholder nomination for board director candidates for its 2022 annual meeting. The company is reviewing the communication from Star Equity Fund, LP, an affiliate of Star Equity Holdings. Shareholders are advised to wait for definitive proxy materials before making voting decisions. A proxy statement will be filed with the SEC, including essential information. Servotronics operates through two groups: ATG, focusing on servo controls, and CPG, specializing in cutlery and edged products.
Servotronics, Inc. (NYSE American - SVT) announced the resignation of Kenneth D. Trbovich as CEO and President, following an internal investigation that cited grounds for termination. The Board of Directors will search for a new permanent CEO while Chief Operating Officer James C. Takacs will oversee operations. The investigation stemmed from a civil complaint alleging misconduct, which revealed willful malfeasance. Although Trbovich remains a director, he will not be renominated for future Board elections. The company is focused on maintaining its operational standards amid leadership changes.
Servotronics, Inc. (NYSE American - SVT) reported net income of $3,238,000 or $1.34 per share for Q3 2021, contrasting with a net loss of $1,782,000 in Q3 2020. Revenue increased by 6.0% to $10,915,000, driven by higher sales volume and prices. Gross margin rose to $1,772,000 from a negative $165,000. However, SG&A expenses surged by 29.8% to $2,724,000, largely due to legal fees, including $1,890,000 for litigation. The company anticipates future growth despite the ongoing impacts of COVID-19 on operations.
Servotronics, Inc. (NYSE American – SVT) reported its Q2 2021 results, posting a net income of $1,186,000 ($0.49 per share) compared to $965,000 ($0.41 per share) in Q2 2020. Revenues fell by 25.7% to $10,028,000, primarily due to lower sales volume affected by COVID-19. Gross margin decreased to (38.0)% versus 23.9% in the previous year. Selling expenses rose by 26.4%, significantly impacting operations. The company also recognized a $1,914,000 employee retention credit. A PPP loan forgiveness application was submitted but remains under review.
Servotronics, Inc. (NYSE American – SVT) announced its financial results for the first quarter ended March 31, 2021, reporting net income of $541,000, a significant decline from $1,898,000 in the same period of 2020. Revenues fell to $9,060,000 from $15,448,000, primarily due to reduced customer orders in the aviation sector influenced by COVID-19. The ATG division experienced a revenue drop of approximately $7,055,000, while the CPG saw modest increases. The company utilized a $1,730,000 employee retention credit to mitigate losses, adjusting operations to maintain key personnel amid ongoing uncertainty.
Servotronics, Inc. (NYSE American – SVT) announced its recognition as 2020 Supplier of the Year by Collins Aerospace for operational excellence and support. Additionally, it received the 2020 Most Improved Supplier of the Year Award for repair and overhaul. President Kenneth D. Trbovich expressed gratitude towards Collins for the awards and reaffirmed commitment to high-quality service. Servotronics operates through two groups: ATG, focusing on servo controls for various applications, and CPG, which manufactures edged products for commercial and government use.
Servotronics, Inc. (NYSE American – SVT) reported a significant decline in financial performance for the year ended December 31, 2020. Net income fell to $100,000 ($0.04 per share) from $2,447,000 ($1.05 per share) in 2019. Revenues decreased from $55,272,000 to $49,844,000. Gross margin also dropped to 16.5%, a decrease from 21.9% the previous year. The pandemic significantly impacted operations, leading to lower shipments and increased operational costs. The company received a $4 million Paycheck Protection Program loan, with uncertainty surrounding its forgiveness.
Servotronics, Inc. (SVT) reported a net loss of $1,782,000 for Q3 2020, translating to a loss of $0.75 per share, contrasting sharply with a net income of $1,132,000 in Q3 2019. Revenues fell by 16.7% to $10,297,000, attributed to delayed customer orders linked to the COVID-19 pandemic. The company faced a negative gross margin of $165,000, a significant decline from a gross margin of $3,535,000 the prior year. SG&A expenses slightly decreased but represented a higher 20.3% of revenue. The company secured a $4,000,000 PPP loan to support operations during these challenges.
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