MPTI M tron Industries Inc

M-tron Industries, Inc. (NYSE American: MPTI) (“Company” or “MtronPTI”) announced its financial results for the three and nine months ended September 30, 2023. Management will host an earnings call on Thursday, November 16, 2023 at 10:30am EST.

• Revenue of $10.9 million for the three months ended September 30, 2023, was an increase of 29.4% compared to $8.4 million for the comparable prior year period. For the nine months ended September 30, 2023, revenue was $30.4 million, a 31.2% increase over the $23.2 million reported for the comparable prior year period.
• Gross margin was 42.8% for the three months ended September 30, 2023, compared to 32.4% for the comparable period in the prior year. Gross margins for the nine months ended September 30, 2023 were 39.2% compared to 35.6% for the comparable prior year period.
• Basic and diluted net income for the three months ended September 30, 2023 was $0.59 and $0.57 per share, respectively, compared to $0.19 per share for the prior year quarter, and was $1.27 and $1.25 per share, respectively, for the nine months compared to $0.60 per share for the comparable prior year period.
• Backlog of $50.3 million at September 30, 2023, an increase of $6.2 million or 14.1% compared to $44.1 million at September 30, 2022.
• Adjusted EBITDA, a non-GAAP measure, was $2.3 million for the three months ended September 30, 2023 versus $0.9 million for the comparable prior year period. For the nine months, Adjusted EBITDA was $5.3 million compared to $2.9 million for the comparable prior year period.

Michael Ferrantino, MtronPTI’s Chief Executive Officer, stated, “MtronPTI and its employees performed very well during the third quarter, resulting in additional incremental revenues and improved profitability exceeding expectations. The commitment of MtronPTI and its employees to continued and profitable growth while supporting our customers' demands is unwavering.”

Results from Operations

Revenue for the three months ended September 30, 2023 increased $2.5 million, or 29.4%, to $10.9 million from $8.4 million for the three months ended September 30, 2022. Revenue for the nine months ended September 30, 2023 increased $7.2 million, or 31.2%, to $30.4 million from $23.2 million for the nine months ended September 30, 2022. The revenue increase reflects strong defense product shipments. Gross margin was 42.8% for the three months ended September 30, 2023, compared to 32.4% for the comparable period in the prior year, as a result of a favorable product mix. Gross margins for the nine months ended September 30, 2023 were 39.7% compared to 35.6% for the comparable prior year period benefiting from favorable product mix and the increase in business volume.

Backlog was $50.3 million at September 30, 2023 compared to $46.2 million at the beginning of the year and $44.1 million at the end of the third quarter of 2022. Backlog has generally increased during 2023 due to an increase in defense product orders. Supply chain constraints within the defense industry appear to be moderating but continue to push our customers to order in advance to secure product deliveries for their production requirements.

The Company reported operating income of $4,359,000 for the nine months ended September 30, 2023 compared to operating income of $2,047,000 for the nine months ended September 30, 2022. The increase reflects both higher revenue and higher margins impacted by favorable product mix, as described above. For the nine months ended September 30, 2023, engineering, selling and administrative costs increased $1,508,000 primarily as a result of $1,234,000 of administrative cost increases in the nine months ended September 30, 2023, which included public company costs of $735,000, increased salaries and employee benefits of $328,000, increased audit and tax costs of $97,000, and other miscellaneous cost increases of $74,000. The public company costs of $735,000 represent the incremental direct costs of being a public company, with no comparable amounts being recorded within the prior year when results were presented on a standalone basis.

Net income was $3,416,000 for the nine months ended September 30, 2023 compared to $1,608,000 for the nine months September 30, 2022. The increase for the nine months ended September 30, 2023 was primarily from the previously discussed items. Basic net income per share for the nine months ended September 30, 2023 and 2022 was $1.27 and $0.60, respectively. Diluted net income per share for the three months ended September 30, 2023 and 2022 was $0.57 and $0.19, respectively.

Adjusted EBITDA was $2,336,000 for the three months ended September 30, 2023 versus $876,000 for the three months ended September 30, 2022 which was reported on a standalone basis. Adjusted EBITDA was $5,295,000 for the nine months ended September 30, 2023 versus $2,894,000 for the nine months ended September 30, 2022. Note that adjusted EBITDA on a standalone basis for the three and nine months ended September 30, 2022 does not include any adjustments for the potential impact from the additional costs of being a publicly traded company.

Investor Call

MtronPTI's CEO, Michael Ferrantino and CFO, James Tivy will host an earnings call on Thursday, November 16, 2023 at 10:30am EST to discuss our Q3, 2023 earnings and respond to investor questions directly.

The call can be accessed using the following dial-in details: Toll-Free Dial-In Number: (888) 440-4199 Toll Dial-In Number: (646) 960-0818

Conference ID: 6978153

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 Statements of Operations

(Unaudited)

(Amounts in Thousands, Except Share and Per Share Amounts)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

REVENUES

 

$

10,888

 

 

$

8,417

 

 

$

30,395

 

 

$

23,172

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing cost of sales

 

 

6,230

 

 

 

5,688

 

 

 

18,322

 

 

 

14,919

 

Engineering, selling and administrative

 

 

2,625

 

 

 

2,099

 

 

 

7,714

 

 

 

6,206

 

OPERATING INCOME

 

 

2,033

 

 

 

630

 

 

 

4,359

 

 

 

2,047

 

Total other income (expense), net

 

 

13

 

 

 

(16

)

 

 

(12

)

 

 

(47

)

INCOME BEFORE INCOME TAXES

 

 

2,046

 

 

 

614

 

 

 

4,347

 

 

 

2,000

 

Income tax provision (benefit)

 

 

460

 

 

 

111

 

 

 

931

 

 

 

392

 

NET INCOME

 

$

1,586

 

 

$

503

 

 

$

3,416

 

 

$

1,608

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of basic shares

 

 

2,703,840

 

 

 

2,676,469

 

 

 

2,693,400

 

 

 

2,676,469

 

net income per basic share

 

$

0.59

 

 

$

0.19

 

 

$

1.27

 

 

$

0.60

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of diluted shares

 

 

2,759,780

 

 

 

2,676,469

 

 

 

2,739,819

 

 

 

2,676,469

 

net income per diluted share

 

$

0.57

 

 

$

0.19

 

 

$

1.25

 

 

$

0.60

 

 

M-tron Industries, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(Amounts in Thousands)

 

 

 

September 30, 2023

 

 

December 31, 2022

 

ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,552

 

 

$

926

 

Accounts receivable, net

 

 

5,031

 

 

 

5,197

 

Inventories, net

 

 

8,962

 

 

 

7,518

 

Prepaid expenses and other current assets

 

 

419

 

 

 

673

 

Total Current Assets

 

 

16,964

 

 

 

14,314

 

Property, plant, and equipment, net

 

 

3,635

 

 

 

3,647

 

Right-of-use lease asset

 

 

106

 

 

 

147

 

Intangible assets, net

 

 

58

 

 

 

98

 

Deferred income taxes, net

 

 

1,010

 

 

 

1,051

 

Other assets, net

 

 

12

 

 

 

16

 

Total Assets

 

$

21,785

 

 

$

19,273

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

Total Current Liabilities

 

 

3,992

 

 

 

4,856

 

Long-Term Liabilities

 

 

40

 

 

 

76

 

Total Liabilities

 

 

4,032

 

 

 

4,932

 

Total Stockholders' Equity

 

 

17,753

 

 

 

14,341

 

Total Liabilities and Stockholders' Equity

 

$

21,785

 

 

$

19,273

 

Reconciliations of GAAP to Non-GAAP Measures

To supplement our consolidated financial statements presented on a GAAP (generally accepted accounting principles) basis, the Company uses certain non-GAAP measures, including Adjusted EBITDA, which we define as net income before income taxes adjusted to exclude depreciation and amortization expense, interest income and expense, stock-based compensation expense, and other items we believe are discrete events which have a significant impact on comparable GAAP measures and could distort an evaluation of our normal operating performance. These adjustments to our GAAP results are made with the intent of providing both management and investors with a more complete understanding of the underlying operational results and trends and our marketplace performance. 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.

Reconciliation of GAAP Income Before Income Taxes to Non-GAAP Adjusted EBITDA:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(Amounts in thousands, except share amounts)

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Income before income taxes

 

$

2,046

 

 

$

614

 

 

$

4,347

 

 

$

2,000

 

Interest expense

 

 

(1

)

 

 

1

 

 

 

6

 

 

 

6

 

Depreciation and amortization

 

 

205

 

 

 

186

 

 

 

617

 

 

 

526

 

Non-cash stock compensation

 

 

86

 

 

 

75

 

 

 

297

 

 

 

362

 

Excess Spin-off costs

 

 

—

 

 

 

—

 

 

 

28

 

 

 

—

 

Adjusted EBITDA

 

$

2,336

 

 

$

876

 

 

$

5,295

 

 

$

2,894

 

Basic per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

2,703,840

 

 

 

2,676,469

 

 

 

2,693,400

 

 

 

2,676,469

 

Adjusted EBITDA per share

 

$

0.86

 

 

$

0.33

 

 

$

1.97

 

 

$

1.08

 

Diluted per share information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

2,759,780

 

 

 

2,676,469

 

 

 

2,739,819

 

 

 

2,676,469

 

Adjusted EBITDA per share

 

$

0.85

 

 

$

0.33

 

 

$

1.93

 

 

$

1.08

 

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 Orlando, Florida and Yankton, South Dakota, a sales office in Hong Kong, and a manufacturing facility in Noida, India.

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/20231109052695/en/

M-tron Industries, Inc.: Investor Relations: James Tivy ir@mtronpti.com