BK Technologies Corp reported a solid performance for the third quarter and the first nine months of 2024, showcasing improvements in revenue, profitability, and strategic initiatives. For the three months ended September 30, 2024, net sales reached approximately $20.2 million, a slight increase of 0.5% from $20.1 million in the same period of 2023. For the nine months, sales totaled approximately $58.7 million, reflecting a 1.5% increase from $57.8 million year-over-year.
The company achieved a gross profit margin of 38.8% for Q3 2024, up from 31.9% in Q3 2023, and a nine-month gross profit margin of 36.9%, compared to 28.6% in the prior year. This improvement was attributed to a favorable sales mix of radio products and accessories, lower raw material and freight costs, and effective cost reduction efforts. Operating income for Q3 2024 was approximately $2.6 million, a significant rise from $0.1 million in Q3 2023, while the nine-month operating income was approximately $5.6 million, recovering from an operating loss of $1.2 million in the same period last year.
Net income for Q3 2024 was approximately $2.4 million, or $0.67 per basic share, compared to a mere $90,000, or $0.03 per share, in Q3 2023. For the nine months ended September 30, 2024, net income totaled approximately $4.7 million, a recovery from a net loss of $2.5 million in the same period of 2023.
Strategically, BK Technologies has made significant moves, including entering into a Master Supply Agreement with East West Manufacturing, LLC, which will transition its manufacturing activities to East West's facilities. This agreement positions East West as the exclusive third-party manufacturer for the company's radio product line for three years. Additionally, the company redeemed its Series B common membership interests in FG Holdings LLC, resulting in a realized loss of $91,000 during Q1 2024.
As of September 30, 2024, BK Technologies reported total current assets of approximately $34.9 million and total assets of approximately $46.4 million. The company’s total stockholders’ equity increased to approximately $26.0 million, up from $21.3 million at the end of 2023. Working capital improved to approximately $22.7 million, compared to $16.8 million at the end of 2023.
The company also reported a backlog of unshipped customer orders amounting to approximately $27.0 million as of September 30, 2024, up from $16.0 million at the end of 2023. This increase in backlog, along with a rise in customer demand and new orders, indicates a positive outlook for future sales.
About BK Technologies Corp
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