Based on the provided financial report articles, I generated the title for the article: **"Quarterly Financial Report for 0000722313: Q3 2024"** Please note that the title is generated based on the provided data, and it may not be the actual title of the article.
Based on the provided financial report articles, I generated the title for the article: **"Quarterly Financial Report for 0000722313: Q3 2024"** Please note that the title is generated based on the provided data, and it may not be the actual title of the article.
Unfortunately, the provided text does not contain a financial report, but rather a series of financial statements and data points. However, I can try to summarize the key financial figures and main events mentioned in the text:
- The report appears to be a quarterly financial report for a company with the ticker symbol 0000722313.
- The report covers the periods from January 1, 2022, to September 30, 2022, and from January 1, 2023, to September 30, 2023.
- The report includes data on the company’s preferred stock, common stock, additional paid-in capital, accumulated other comprehensive income, and retained earnings.
- The report also includes data on the company’s financial performance, including revenue, net income, and cash flow.
- The report does not provide a detailed analysis of the company’s financial performance, but it does provide a snapshot of the company’s financial position and performance at the end of the reporting periods.
Please note that this summary is based on the provided text, which does not contain a comprehensive financial report. If you are looking for a detailed analysis of the company’s financial performance, I recommend reviewing the company’s official financial reports or seeking additional information from a financial analyst or professional.
Overview
We are a Minnesota, United States based full-service global EMS contract manufacturer in the Medical, Aerospace & Defense and Industrial markets. We offer a full range of value-added engineering, technical and manufacturing services and support including project management, design, testing, prototyping, manufacturing, supply chain management and post-market services. Our products are complex electromedical and electromechanical products including medical devices, wire and cable assemblies, printed circuit board assemblies, complex higher-level assemblies and other box builds for a wide range of industries.
Results of Operations
Net Sales
Net sales for the three months ended September 30, 2024 were $31,407, a decrease of 5.9% compared to the same period in 2023. For the nine months ended September 30, 2024, net sales were $99,513, a decrease of 3.6% compared to the same period in 2023. The decrease in net sales was primarily due to the following:
| Industry | 3 Months Ended September 30 | 9 Months Ended September 30 |
|---|---|---|
| Medical | Increased 1.2% | Decreased 9.7% |
| Industrial | Decreased 19.2% | Decreased 4.6% |
| Aerospace and Defense | Decreased 3.4% | Increased 23.3% |
The decrease in medical sales was due to inventory rebalancing, timing of customer product launches, and lower average sales prices. The decrease in industrial sales was due to customer efforts to reduce inventory and delayed program launches. The increase in aerospace and defense sales was due to increasing demand and improved supply chain availability.
Backlog
Our 90-day shipment backlog as of September 30, 2024 was $29,631, down 1.5% from June 30, 2024 and 12.3% from the prior-year quarter. Our total order backlog as of September 30, 2024 was $69,770, a 4.8% decrease from the prior quarter and a 31.8% decrease from the prior-year quarter. The decrease in backlog is due to customers rebalancing their inventories and deferring orders.
Operating Costs and Expenses
Gross profit as a percentage of net sales decreased from 15.9% in Q3 2023 to 12.2% in Q3 2024, and from 15.8% in the first 9 months of 2023 to 14.0% in the first 9 months of 2024. This was due to lower net sales and corresponding lower operating leverage.
Selling, general and administrative expenses decreased slightly in 2024 compared to 2023 due to lower incentive compensation accruals.
Restructuring charges of $176,000 and $267,000 were recorded in Q3 and the first 9 months of 2024, respectively, related to the closure of the Blue Earth facility.
Operating income decreased from $1,124,000 (3.4% of net sales) in Q3 2023 to a loss of $467,000 (-1.5% of net sales) in Q3 2024. For the first 9 months, operating income decreased from $3,276,000 (3.2% of net sales) in 2023 to $1,032,000 (1.0% of net sales) in 2024, driven by the decrease in net sales and gross margin.
Cash Flow and Liquidity
Cash used in operating activities was $3,043,000 in the first 9 months of 2024, compared to cash provided of $2,181,000 in the same period of 2023. This was primarily due to changes in working capital, including increased inventory and decreased accounts payable.
Cash used in investing activities was $971,000 in the first 9 months of 2024, primarily for capital expenditures.
Cash provided by financing activities was $3,561,000 in the first 9 months of 2024, compared to cash used of $2,388,000 in the same period of 2023, due to increased borrowings on the line of credit.
The company has a $15,000 Senior Secured Revolving Line of Credit with Bank of America, which it entered into on February 29, 2024. As of September 30, 2024, the company had $9,550,000 in borrowings outstanding on the line of credit.
Outlook and Risks
The company faces several risks and uncertainties going forward, including:
- Volatility in the marketplace affecting supply, demand, and currency exchange rates
- Supply chain disruptions and unreliability
- Labor shortages
- Increased competition and OEMs bringing manufacturing in-house
- Operational and compliance risks
- Macroeconomic conditions and global events
The company will need to navigate these challenges to maintain its financial performance and market position. Continued focus on operational efficiency, customer relationships, and strategic investments will be critical.
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