Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

TECHPRECISION CORPORATION

(TPCS)
  Report
SummaryQuotesChartsNewsCalendarCompanyFinancials 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector news

TechPrecision Corp : TechPrecision Corporation Reports Second Quarter of Fiscal 2014

11/14/2013 | 04:02pm EDT

CENTER VALLEY, Pa., Nov. 14, 2013 /PRNewswire/ -- TechPrecision Corporation (OTC Bulletin Board: TPCS) ("TechPrecision" or "the Company"), an industry leading global manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the naval/maritime, energy and precision industrial sectors, today reported financial results for the second quarter and first six month period of fiscal year 2014, the periods ended September 30, 2013.

Financial Summary

    --  Second quarter fiscal 2014 revenues were $5.2 million, reflecting a
        decrease of $2.9 million or 36% from $8.1 million reported for the
        second quarter last year
    --  Selling, general and administrative expenses for the second quarter of
        fiscal 2014 decreased by 23% or $0.4 million to $1.5 million from $1.9
        million in the same quarter last year. Sequentially, SG&A expenses
        decreased by 16% from $1.8 million for the quarter ended June 30, 2013
    --  Net loss for the second quarter of fiscal 2014 was ($0.8) million
        compared to a net loss of approximately ($45,000) in second quarter of
        last year
    --  Revenues for the first six months of fiscal 2014 were $12.3 million
        reflecting a decrease of $2.9 million or 19% compared to $15.2 million
        for the first six months of the prior year
    --  Selling, general and administrative expenses for the first half of
        fiscal 2014 decreased by 17% or $0.7 million to $3.2 million from $3.9
        million in the same quarter last year.
    --  Net loss for the first half of fiscal 2014 was ($2.2) million compared
        to a net loss of ($751,000) for the first half of the prior fiscal year

"This was a challenging quarter for us, as legacy issues continued to impact our operations, customer order mix and our financial results," commented Len Anthony, TechPrecision's Executive Chairman. "Our entire management team is working to put these legacy issues and associated contract losses behind us. We remain upbeat about the potential inherent opportunities in each of the verticals we serve, and quotation activity remains high. We are optimistic that we will eliminate the drag on earnings from contract losses in the near term, and see more normalized production volumes and margins as we move into calendar 2014. Subsequent to the end of the quarter, we received an $8.1 million purchase order for volume production of sapphire chambers for an existing customer, and this order will help fill existing capacity at our Ranor facility."

"Our cost reduction initiatives are already producing results," continued Mr. Anthony. "Sequentially, SG&A expenses decreased 16%. We continue to target profitability by the end of the fiscal year, positioning us for a significantly improved fiscal 2015."

Second Quarter 2014 Results

For the three months ended September 30, 2013, sales decreased 36% or $2.9 million to $5.2 million from $8.1 million in the year-ago period and decreased $1.9 million or 27% sequentially from $7.1 million in the first fiscal quarter of 2014. Gross margin was 14.0%, or $0.7 million gross profit, in the second fiscal quarter of 2014 compared to a gross margin of 24.0%, or $1.9 million gross profit, in the same period last year. This sequentially compares with a gross profit of $0.4 million and 5.9% gross margin for the quarter ended June 30, 2013. Gross margin in any reporting period is impacted by the mix of services we provide on projects completed within that period. Selling, general and administrative expenses for the quarter ended September 30, 2013 were $1.5 million as compared to $1.9 million for the quarter ended September 30, 2012. Sequentially, selling general and administrative costs were 16% or $286,000 lower than selling, general and administrative expense reported for the quarter ended June 30, 2013.

Net loss was $(0.8) million or ($0.04) per basic and fully diluted share for the quarter ended September 30, 2013 as compared to a net loss of ($45,000) or ($0.00) per basic and fully diluted share for the quarter ended September 30, 2012.

Six Months Year-to-Date Financial Results

For the six months ended September 30, 2013, revenue decreased $2.9 million or 19% to $12.3 million from $15.2 million for the same period last year. Revenues from the Company's China subsidiary were $0.2 million during the first six months of fiscal 2014 compared with $1.6 million for the first half of last year. Gross margin for the first half of fiscal 2014 was $1.1 million or 9% compared to gross margin of $3.0 million or 20% for the first half of the prior year. Gross profit for the six months ended September 30, 2013 was lower due contract losses of $1.5 million recognized during the period. Selling, general and administrative expenses for first half fiscal 2014 were $3.2 million as compared to $3.9 million for the same period in 2012, reflecting a decrease of $670,000 or 17% over the previous year. Net loss was ($2.2) million or ($0.11) per share basic and fully diluted for the year-to-date period as compared to a net loss of ($751,000) or ($0.04) per share basic and fully diluted share for the same six month period last year.

The Company completed the first half of fiscal 2014 with a backlog of $17.5 million compared to a backlog of $16.4 million at March 31, 2013 and $26.1 million at September 30, 2012. The Company's backlog at September 30, 2012 included $1.9 million of orders for production from its China subsidiary while its backlog at September 30, 2013 included only $0.8 million for production from its China subsidiary. On November 13, 2013, the Company received an $8.1 million purchase order for the production of sapphire furnaces with deliveries scheduled through the first half of calendar year 2014.

Balance Sheet

At September 30, 2013, TechPrecision had working capital of $1.6 million as compared with working capital of $3.1 million at March 31, 2013, a decrease of $1.5 million. Cash used by operations was ($0.62) million for the six months ended September 30, 2013 as compared to cash provided by operations of $78,000 for the six months ended September 30, 2012. As of September 30, 2013, the Company had $1.53 million in cash and cash equivalents, down $1.54 million compared to the balance at March 31, 2013. Stockholders' equity decreased 19% to $8.2 million compared to $10.1 million at March 31, 2013.

Teleconference Information

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on November 14, 2013. To participate in the live conference call, please dial 1-888-846-5003 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-480-629-9856. When prompted by the operator, mention Conference Passcode 4649186.

A replay will be available for one week starting on Thursday, November 14, 2013, at 7:30 p.m. Eastern Time. To access the replay, dial 1-877-870-5176 or 1-858-384-5517. When prompted, enter Conference Passcode 4649186.

The call will also be available live by webcast at TechPrecision Corporation's website, www.techprecision.com, and will also be available over the Internet and accessible at http://public.viavid.com/index.php?id=106805.

About TechPrecision Corporation

TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: alternative energy (Solar and Wind), medical, nuclear, defense, industrial, and aerospace to name a few. TechPrecision's goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated "turn-key" solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including recurring operating losses and the availability of appropriate financing facilities impacting our ability to continue as a going concern, our ability to change the composition of our revenues and effectively reduce operating expenses, the Company's ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

-- Financial tables follow --


                           TECHPRECISION CORPORATION

                          CONSOLIDATED BALANCE SHEETS

                                  (Unaudited)


                                          September                     March 31,
                                           30, 2013                        2013
                                         ----------                    ----------

    ASSETS

    Current assets:

    Cash and cash
     equivalents                                           $1,532,026             $3,075,376

    Accounts
     receivable,
     less allowance
     for doubtful
     accounts of
     $25,010 in 2013
     and 2012                                               2,690,517              4,330,637

    Costs incurred
     on uncompleted
     contracts, in
     excess of
     progress
     billings                                               5,064,036              4,298,293

    Inventories-
     raw materials                                            355,168                354,516

    Income taxes
     receivable                                               374,030                374,030

    Current deferred
     taxes                                                    255,765                255,765

    Other current
     assets                                                 1,388,393              1,578,484
                                                            ---------              ---------

         Total current
          assets                                           11,659,935             14,267,101

    Property, plant
     and equipment,
     net                                                    6,907,282              7,300,248
                                                            ---------              ---------

         Total assets                                     $18,567,217            $21,567,349
                                                            =========              =========


    LIABILITIES AND
     STOCKHOLDERS'
     EQUITY:

    Current liabilities:

    Accounts payable                                       $1,247,729             $2,537,060

    Contract loss
     provision                                              1,697,975                270,172

    Accrued expenses                                          803,961              1,604,752

    Accrued taxes
     payable                                                  232,624                232,624

    Deferred
     revenues                                                 677,907                253,813

    Short-term debt                                                --                500,000

    Current maturity
     of long-term
     debt                                                   5,418,227              5,784,479
                                                            ---------              ---------

         Total current
          liabilities                                      10,078,423             11,182,900

    Long-term debt,
     including
     capital leases                                            43,532                 31,108

    Noncurrent
     deferred taxes                                           255,765                255,765


    Stockholders'
     Equity:

    Preferred stock-
      par value                        Stock, with     September 30,
      $.0001 per                       5,532,998       2013 and March
     share,                            shares issued   31, 2013)
     10,000,000                        and outstanding
     shares                            at September
     authorized, of                    30, 2013 and
     which 9,890,980                   March 31, 2013,
     are designated                    (liquidation
     as Series A                       preference of
     Preferred                                              1,310,206              1,310,206
     Common stock
      -par value                        September 30,
      $.0001 per                        2013 and March
      share,                            31, 2013
      authorized,
      90,000,000
      shares issued
      and
      outstanding,
      19,956,871
      shares at
                                                                1,996                  1,996

    Additional paid
     in capital                                             5,290,840              5,076,552

    Accumulated
     other
     comprehensive
     loss                                                    (101,210)              (221,418)

    Retained
     earnings                                               1,687,665              3,930,240
                                                            ---------              ---------

         Total
          stockholders'
          equity                                            8,189,497             10,097,576
                                                            ---------             ----------

         Total
          liabilities and
          stockholders'
          equity                                          $18,567,217            $21,567,349
                                                            =========              =========


                          TECHPRECISION CORPORATION

                    CONSOLIDATED STATEMENTS OF OPERATIONS

                                 (Unaudited)


                              Three months ended                 Six months ended

                                 September 30                      September 30
                                ------------                       ------------

                            2013               2012               2013                       2012
                            ----               ----               ----                       ----

     Net
     sales                        $5,195,795          $8,078,552         $12,292,487  $15,224,291

     Cost
     of
     sales                         4,468,523           6,140,187          11,144,972   12,180,487
                                   ---------           ---------          ----------   ----------

     Gross
     profit                          727,272           1,938,365           1,147,515    3,043,804

     Selling,
     general
     and
     administrative                1,484,487           1,924,079           3,254,569    3,924,599
                                   ---------           ---------           ---------    ---------

     (Loss)
     income
     from
     operations                     (757,215)             14,286          (2,107,054)    (880,795)
                                    --------              ------          ----------     --------

       Other
       income,
       expense                         6,985               2,558                (567)       2,511

       Interest
       expense                       (67,646)            (74,394)           (137,773)    (154,485)

       Interest
       income                           (794)              1,188               2,819        2,881
                                        ----               -----               -----        -----

     Total
     other
     expense,
     net                             (61,455)            (70,648)           (135,521)    (149,093)
                                     -------             -------            --------     --------

     Loss
     before
     income
     taxes                          (818,670)            (56,362)         (2,242,575)  (1,029,888)

     Income
     tax
     benefit                              --             (11,342)                 --     (278,599)
                                         ---             -------                 ---     --------

     Net
     loss                          $(818,670)           $(45,020)        $(2,242,575)   $(751,289)
                                   =========            ========          ==========    =========

     Net
     loss
     per
     share
     (basic)                          $(0.04)             $(0.00)             $(0.11)      $(0.04)

     Net
     loss
     per
     share
     (diluted)                        $(0.04)             $(0.00)             $(0.11)      $(0.04)

     Weighted
     average
     number
     of
     shares
     outstanding
     (basic)                      19,956,871          18,696,846          19,956,871   18,614,112

     Weighted
     average
     number
     of
     shares
     outstanding
     (diluted)                    19,956,871          18,696,846          19,956,871   18,614,112


                     TECHPRECISION CORPORATION

               CONSOLIDATED STATEMENTS OF CASH FLOWS

                            (Unaudited)


                                           Six Months Ended
                                            September 30,
                                          -----------------

                                      2013                  2012
                                      ----                  ----

    CASH FLOWS FROM OPERATING
     ACTIVITIES

    Net loss                                 $(2,242,575)         $(751,289)

    Adjustments to reconcile net
     loss to net cash (used in)
     provided by operating
     activities:

    Depreciation and
     amortization                                478,902            415,429

    Stock based compensation
     expense                                     214,287            282,719

    Deferred income taxes                             --           (282,020)

    Provision for contract
     losses                                    1,427,803             83,196

    Changes in operating assets
     and liabilities:

    Accounts receivable                        1,644,073            219,289

    Costs incurred on
     uncompleted contracts, in
     excess of progress billings                (765,743)          (948,192)

    Inventories - raw materials                    1,283           (202,361)

    Other current assets                         180,499             61,199

    Taxes receivable                                  --            553,070

    Other noncurrent assets                           --             88,126

    Accounts payable                          (1,295,237)           664,632

    Accrued expenses                            (682,920)        (1,036,974)

    Deferred revenues                            423,547            931,453
                                                 -------            -------

         Net cash (used in) provided
          by operating activities               (616,081)            78,277
                                                --------             ------


    CASH FLOWS FROM INVESTING
     ACTIVITIES

    Purchases of property, plant
     and equipment                               (53,941)           (75,109)
                                                 -------            -------

         Net cash used in investing
          activities                             (53,941)           (75,109)
                                                 -------            -------


    CASH FLOWS FROM FINANCING
     ACTIVITIES

    Repayment of debt                           (875,278)          (683,928)
                                                --------           --------

    Net cash used in financing
     activities                                 (875,278)          (683,928)
                                                --------           --------

    Effect of exchange rate on
     cash and cash equivalents                     1,950             (3,969)
                                                   -----             ------

    Net decrease in cash and
     cash equivalents                         (1,543,350)          (684,729)
                                              ----------           --------

    Cash and cash equivalents,
     beginning of period                       3,075,376          2,823,485
                                               ---------          ---------

    Cash and cash equivalents,
     end of period                            $1,532,026         $2,138,756
                                              ==========         ==========


    Company Contact:                     Investor Relations Contact:

    Mr. Richard F. Fitzgerald            Hayden IR

    Chief Financial Officer              Brett Maas

    TechPrecision Corporation            Phone: 1-646-536-7331

    Tel: 1-484-693-1702                  Email: brett@haydenir.com

    Email: Fitzgeraldr@techprecision.com Website: www.haydenir.com

    Website: www.techprecision.com

SOURCE TechPrecision Corporation


ę PRNewswire 2013
All news about TECHPRECISION CORPORATION
07/26TECHPRECISION CORP : Entry into a Material Definitive Agreement, Unregistered Sa..
AQ
06/29TECHPRECISION CORP : Entry into a Material Definitive Agreement, Financial State..
AQ
06/10TECHPRECISION : Management's Discussion and Analysis of Financial Condition and ..
AQ
06/10Techprecision Corporation Reports Earnings Results for the Full Year Ended Ma..
CI
06/10TECHPRECISION CORP : Results of Operations and Financial Condition, Financial St..
AQ
02/11TechPrecision Corporation Provides Revenue Guidance Fourth Quarter of 2021
CI
02/11TECHPRECISION : Management's Discussion and Analysis of Financial Condition and ..
AQ
02/11Techprecision Corporation Reports Earnings Results for the Third Quarter Ende..
CI
02/11TECHPRECISION CORP : Results of Operations and Financial Condition, Financial St..
AQ
02/11TECHPRECISION : Earnings Flash (TPCS) TECHPRECISION CORPORATION Posts Q3 Revenue..
MT
More news