TechPrecision Corporation

Greetings. Welcome to the Tech Precision Corporation fourth quarter fiscal 2023 financial results conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Brett Moss, managing partner of Hayden IR. You may begin.

Thank you. On the call today is Alex Shen, Chief Executive Officer, and Tom Sammons, Chief Financial Officer. Before we begin, I'd like to remind our listeners that management's remarks may contain forward-looking statements which are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims protection of the safe harbor and forward-looking statements is contained in the Private Securities and Investigation Reform Act of 1995. Actual results may differ from those discussed today, and therefore we refer you to a more detailed discussion of risks and uncertainties in the company's financial filings with the SEC. In addition, projections as to the company's future performance represents management estimates as of today, June 15, 2023. Tech Precision assumes no obligation to revise or update these forward-looking statements. With that out of the way, I'd like to turn the call over to Alex Shen, Chief Executive Officer, to provide opening remarks. Alex, the floor is yours.

Brett, thank you. Good afternoon to everyone, and thank you for joining us. The fourth quarter of fiscal 2023 was another strong quarter for our Raynor subsidiary For fiscal year 2023, Raynor operating results improved across the board when compared to fiscal year 2022, with higher revenue and improved gross margins. Raynor's revenue for fiscal year 2023 was $19.2 million, up from $14.6 million in fiscal year 2022. This is a 32% improvement year over year. Raynor's gross profit doubled in fiscal year 2023 to $7.0 million from $3.5 million in fiscal year 2022. The STATCO subsidiary is a turnaround. Revenue was 58 percent higher year over year, primarily due to having a full year of STATCO financial results. Production at STADCO, however, was hampered by machine downtime, specifically in the fourth quarter. This negatively impacted revenue generation and resulted in increased unabsorbed overhead. These equipment problems experienced during the fourth quarter are now resolved. Since the acquisition of the STADCO subsidiary, There has been significant work on repair and rebuild of STADCO's equipment. We will continue to enhance STADCO's manufacturing capabilities and capacity. We continue our sharp focus on tactical execution and risk mitigation, driving both subsidiaries to fully comprehend, to successfully manage, and to successfully meet customer expectations, enabling continuous recapture and continuous retention of customer confidence. We remain highly focused on cash management, a critical piece of risk mitigation, and continue to manage and control expenses, capital expenditures, customer advances, progress billings, and final invoicing at Shipment. As we successfully retain customer confidence, business prospects remain strong. Our backlog was $44 million at March 31, 2023, $17.7 million at Raynor, and $26.3 million at Stadco. Since March, Raynor has secured an additional $6 million in new orders. Now I'd like to turn the call over to our CFO, Tom Sammons, to continue our review of our fourth quarter and fiscal year 2023 results.