TECHPRECISION CORP Q3 FY2024 earnings call

• Backlog: Consolidated backlog strengthened to $50.8 million at Dec 31, 2023 from $44.6 million at Sep 30, 2023; captured new bookings over $6 million in Jan-Feb 2024. • Stadco Turnaround: Overhauled electron beam welding chamber, improved on-time delivery from 25% to 100%, increased throughput 800%. • Cash Management: Focus on cash management, risk mitigation, and expense control. • Customer Confidence: High customer confidence enabled backlog growth.

For the third quarter of fiscal 2024, consolidated net sales were $7.7 million, 8% lower than the prior year. Ranor's gross profit was $1.4 million. Stadco's gross profit was essentially breakeven at negative 3% of net sales, a loss of $216,000. For the nine months of fiscal 2024, consolidated net sales were $23 million, 4% lower than the prior year. Ranor had net sales of $13 million and Stadco had $10 million.

• Expect to deliver strong backlog over next 1-3 fiscal years with revenue growth and better gross margin. • Encouraged by prospects for growing revenue and increasing profitability in future quarters.

• Debt and interest expenses: Increased due to revolver loan borrowings and higher interest rates. • Working capital issues: Negative working capital as long-term debt reclassified to current due to debt covenant violations. • Restrictions on communication: Limitations on discussing certain aspects due to client confidentiality requirements.

Q: How do you feel about your cash and access to capital right now?

A: Bobby Lilley discussed revolver loan negotiations and borrowing.

Q: How about human capital expansion?

A: Alex Shen talked about hiring and maintaining workforce to support capacity.

Q: Ability to pay for acquisition?

A: Alex Shen stated restrictions on discussing acquisition details.

Q: Losing money and borrowing for legal fees?

A: Bobby Lilley mentioned borrowings for expenses.

Q: Capacity in Ranor and Stadco?

A: Alex Shen said there's open capacity.

Q: Winning business from others?

A: Alex Shen hinted at winning business through offload, new part numbers, and competitive bids.

Q: Confidence in Volta forecast?

A: Alex Shen discussed the combined forecast and confidence in the numbers.

Q: Deferred maintenance in Stadco?

A: Alex Shen talked about progress in fixing deferred maintenance and holding the line.

Q: Financing for acquisition?

A: Restrictions on discussing specific firms involved in financing.

Q: CH-53E business for Stadco?

A: Alex Shen mentioned seeing business for D, E, and K models.

Q: Customer-funded CapEx?

A: Alex Shen discussed customer-funded CapEx for Ranor.