TECHPRECISION CORP Q1 FY2025 earnings call

• Stadco had a poor first quarter of fiscal year 2025 ending June 30, 2024, due to a terminated acquisition incurring an operating loss of $1.3 million from equipment problems. There was also a $400,000 non-cash charge from fair market valuation of shares related to the acquisition termination. - Ranor continued to perform well with revenue of $4.4 million in Q1 2025. - Consolidated cost of revenue was $7.7 million, 16% higher than the prior year, leading to consolidated gross profit of $0.2 million, 66% lower than the prior year. - SG&A expense increased by $0.3 million primarily due to the acquisition breakup fee, but was roughly flat excluding that charge. - Operating loss was $1.3 million, interest expense increased by $40,000, and net loss was $1.5 million. - Cash provided by operating activities was $0.1 million, cash used by financing activities was $0.2 million, debt was $7.5 million as of June 30, 2024, cash balance was $45,000, and working capital was negative due to debt covenant violations. - Consolidated backlog was $41.2 million as of June 30, 2024, with expectation to deliver backlog over 1-3 fiscal years with gross margin expansion. - Focus on cash management, expense control, and tactical execution to meet customer expectations.

For the fiscal year 2025 first quarter, Ranor subsidiary had revenue of $4.4 million, down from $4.5 million in the same quarter the prior year. Stadco subsidiary had revenue of $3.6 million, a 21% increase versus the same quarter a year ago. Consolidated revenue was $8 million, 8% higher compared to the $7.4 million in the same period a year ago. Ranor's revenue contribution was $4.4 million out of $8 million (55%), and Stadco's was $3.6 million out of $8 million (45%).

• Expect to deliver the strong backlog over the next 1 to 3 fiscal years with gross margin expansion. - Continue to focus on tactical execution and risk mitigation to drive subsidiaries to meet customer expectations. - Maintain focus on cash management and controlling expenses, capital expenditures, customer advances, progress billings, and final invoicing at shipment.

• Stadco's poor performance due to equipment problems from reduced maintenance and CapEx related to the terminated Votaw acquisition. - Pending proxy contest restricting what can be discussed. - Debt reclassified as current due to debt covenant violations, posing a risk to liquidity.

Q: Will questions be taken at the end of this call?

A: No, as there is a pending proxy contest and we are in a quiet period; questions will be taken once the annual meeting is held.