TechPrecision Corporation

Greetings. Welcome to the Tech Precision Corporation third quarter 2024 financial results conference call. At this time, all participants are in elicit 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 Bobby Lilly, Chief Financial Officer. Before we begin, I'd like to remind our listeners that management's remarks may contain forward-looking statements or are subject to risks and uncertainties, and management may make additional forward-looking statements in response to your questions. Therefore, the company claims the protection of the safe harbor for forward-looking statements is contained in the Private Securities and Litigation 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 of the SEC. In addition, projections estimate the company's future performance represents management's estimates as of today, February 29th, 2024. That 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 Chen, Chief Executive Officer, to provide opening remarks. Alex, the floor is yours.

Thank you, Brett. Good afternoon to everyone, and thank you for joining us. I'm happy to report that customer confidence remains high as our consolidated backlog of further strengthened to $50.8 million at December 31, 2023, from $44.6 million at September 30, 2023. We have since captured new bookings over $6 million in January and February of 2024. For Raynor, backlog increase content features both new penetration, as well as recapture of significant sole source content in the defense sector, namely the Virginia-class and the Columbia-class submarine programs. For STATCO, backlog increased content features significant recapture of military aerospace sole source content, combined with new penetration into military space launch and aerospace related tooling. For the third quarter, consolidated net sales were $7.7 million, or 8% lower when compared to $8.3 million for the same period one year ago. For the nine months of fiscal 2024, consolidated net sales were $23 million, or 4 percent lower when compared to $23.9 million for the same period a year ago. For the third quarter of fiscal 2024, consolidated gross profit was $1.2 million, operating loss was $1 million, and SG&A expense increased by $1 million, primarily due to outside advisory costs in connection with a potential acquisition. For the third quarter of fiscal 2024, STATCO gross profit was essentially break even at negative 3% of net sales, a loss of $216,000 in a quarter with a lower number of labor hours available during the November and December holiday calendar. Raynor gross profit was $1.4 million for the third quarter of fiscal 2024. We do expect to deliver our strong backlog over the course of the next one to three fiscal years with both revenue growth and better gross margin. The STADCO turnaround continues. I would like to share one specific success story, which revolves around our customers' requirements for electron beam welding technology. STATCO operates one of the largest electron beam vacuum welding chambers in the United States. We have methodically overhauled and upgraded key components of our STATCO chamber with good results, improving on-time delivery from 25% at start of acquisition to 100% on-time today. We have improved throughput 800%. In other words, we can put out eight times as much work today compared to August 2021 at the close of the STADCO acquisition. As a result, we have been able to recapture customer confidence and have secured new purchase orders, which feed this specific work center as well as other machining support work centers. We continue to focus on tactical execution and risk mitigation, driving both subsidiaries to fully and successfully meet customer expectations, enabling continuous recapture and continuous retention of customer confidence. We all clearly see the positive results of this focus, evidenced by the continued high customer confidence, which has enabled us to grow an already strong backlog. 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. I will now turn over the call to our CFO, Bobbi Lilly, to continue with the review of our quarter results. Bobbi?