TAYLOR DEVICES ANNOUNCES FISCAL YEAR 2024 SECOND QUARTER AND FIRST HALF RESULTS INCLUDING A RECORD HIGH FIRM ORDER BACKLOG AND STOCK REPURCHASE

Rhea-AI Summary

Taylor Devices, Inc. (TAYD) announced 2nd quarter sales of $10,339,875, down slightly from last year, with net earnings at $1,981,348, up from last year. The company also reported a new record high firm order backlog of $35,500,000, and a stock repurchase at a 12.4% discount.

Insights

Financial Analyst

Reviewing Taylor Devices, Inc.'s financial performance, the slight decrease in 2nd quarter sales year-over-year may not immediately raise concerns, considering the overall sales for the first half of the fiscal year increased. However, it is crucial to analyze the company's profit margins and operational efficiency, as evidenced by the significant increase in net earnings. The improved earnings performance, particularly a 49% increase in the first half net earnings, suggests a positive trend in profitability, potentially reflecting cost management and operational improvements.

The repurchase of shares at a discount could be seen as a strategic move to enhance shareholder value, signaling management's confidence in the company's financial health. Investors should assess the potential impact of the share repurchase on earnings per share and the overall capital structure. The substantial growth in the firm's order backlog indicates a strong demand for Taylor Devices' products, which could lead to sustained revenue growth in future quarters. This backlog serves as an indicator of the company's market position and operational momentum.

Market Research Analyst

From a market perspective, Taylor Devices' focus on the Aerospace/Defense, Structural and Industrial markets aligns with sectors that often have long-term contracts and stable demand. The company's record-high order backlog is a robust indicator of its competitive positioning and future revenue streams. Additionally, the Aerospace and Defense sector is typically resilient to economic downturns, which might provide a buffer against market volatility for Taylor Devices.

Investors should monitor the company's R&D investments, as mentioned by the CEO, since innovation is a critical driver for growth in technology and engineering-focused industries. The company's ability to maintain a competitive edge through new product development and enhancements could be a key factor in sustaining long-term growth.

Economist

Considering the broader economic context, Taylor Devices' performance must be evaluated against the backdrop of inflationary pressures, supply chain challenges and geopolitical tensions that can affect the Aerospace/Defense and Industrial sectors. The company's ability to increase net earnings despite a marginal decrease in quarterly sales could indicate effective cost control measures and pricing power in its markets.

The strategic share repurchase reflects an allocation of capital that suggests the company's management believes its stock is undervalued. This can be a positive signal to the market, potentially influencing investor sentiment and stock performance. However, it is essential to consider the opportunity cost of this capital deployment and whether it aligns with the company's long-term investment strategy.

NORTH TONAWANDA, N.Y., Jan. 10, 2024 /PRNewswire/ -- Taylor Devices, Inc. (NASDAQ SmallCap: "TAYD") announced today that it had 2^nd quarter sales of $10,339,875, down slightly from last year's 2^nd quarter sales of $10,497,366 while sales for the 1^st half of the fiscal year were $20,263,503, up from last year's 1^st half sales of $19,588,065.

Net earnings for the 2^nd quarter were $1,981,348, up from last year's 2^nd quarter net earnings of $1,559,508 with net earnings for the 1^st half finishing at $3,829,211, up significantly from last year's 1^st half net earnings of $2,561,879.

"Our FY24 2^nd quarter and 1^st half sales finished in line with and improved compared to last year's levels respectively with all three of our customer product groups; Aerospace/Defense, Structural and Industrial, contributing favorably," stated Tim Sopko, CEO.  He continued, "This also sets a new high record for our sales in the first six months of a fiscal year concurrent with sales in the quarter exceeding the $9 million threshold for the 7^th consecutive quarter."  He further commented, "Earnings for the 2^nd quarter and 1^st half are significantly improved over last year's levels both in total dollars as well as a percentage of sales; 27% better for the quarter and 49% better for the 1^st half."  He continued, "This continuing profitable growth is largely due to our team's disciplined adherence to our strategic priorities as well as their excellent work on continuous improvements implemented over the past several years across all functions in our business."  He concluded, "As we enter the 2^nd half of our FY24, we will continue to focus on our strategic priorities supported by continued investments in our team, technologies (R&D) and facilities which we expect will continue to support our profitable growth going forward." 

The company established a new record high firm order backlog of $35,500,000 at the end of this quarter, as compared to $18,1000,000 at the end of the 2^nd quarter last fiscal year.

Additionally, the company's Board of Directors approved the repurchase of 459,015 of the company's shares from Ira Sochet, following his unsolicited repurchase offer to the company, at a price of $19.92 per share which is a 12.4% discount off the average market price that TAYD shares traded on the day the repurchase was finalized, January 8, 2024.  "Our strong balance sheet condition continues with ample working capital to support our continuing profitable growth following this value-enhancing deployment of our shareholder's cash," said Tim Sopko, CEO.

Taylor Devices, Inc. is a 68-year-old company engaged in the design, development, manufacture and marketing of shock absorption, rate control and energy storage devices for use in various types of vehicles, machinery, equipment and structures.  The company continues to target growth in the domestic Aerospace and Defense market as well as global Structural Construction and Industrial markets. 

2nd Quarter (3 months ended 11/30/23 & 11/30/22)	F/Y 24	F/Y 23
Sales	$   10,339,875	$  10,497,366
Net Earnings	$     1,981,348	$    1,559,508
Earnings per Share	$              0.56	$             0.45
Shares Outstanding	3,521,428	3,499,598
1st Half (6 months ended 11/30/23 & 11/30/22)	F/Y 24	F/Y 23
Sales	$   20,263,503	$  19,588,065
Net Earnings	$     3,829,211	$    2,561,879
Earnings per Share	$              1.09	$             0.73
Shares Outstanding	3,521,099	3,500,172

Taylor's website can be visited at:  www.taylordevices.com ; with company newsletters and other pertinent information at www.taylordevices.com/investors.

Taylor Devices, Inc.
Contact:	Artie Regan
	Regan & Associates, Inc.
	(212) 587-3005 (phone)
	(212) 587-3006 (fax)
	main@reganproxy.com

 

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SOURCE Taylor Devices, Inc.

FAQ

What were Taylor Devices, Inc.'s 2nd quarter sales for fiscal year 2024?

Taylor Devices, Inc. reported 2nd quarter sales of $10,339,875 for fiscal year 2024.

How did the 2nd quarter sales of Taylor Devices, Inc. compare to the previous year?

The 2nd quarter sales were slightly down from last year's sales of $10,497,366.

What were the net earnings of Taylor Devices, Inc. for the 2nd quarter of fiscal year 2024?

The net earnings for the 2nd quarter were $1,981,348.

What was the stock repurchase offer made to Taylor Devices, Inc.?

The company approved the repurchase of 459,015 of its shares at a price of $19.92 per share, at a 12.4% discount off the average market price.

What was the company's firm order backlog at the end of the quarter?

The company established a new record high firm order backlog of $35,500,000 at the end of the quarter.