SCI Engineered Materials, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing significant changes in revenue and profitability compared to the previous fiscal period. For the third quarter of 2024, the company generated revenue of $3.9 million, a decline from $7.7 million in Q3 2023. Similarly, revenue for the nine months ended September 30, 2024, was $17.8 million, down from $21.0 million in the same period last year. The decrease in revenue was attributed to lower raw material costs, despite stable volume.

Gross profit for Q3 2024 was $1.1 million, compared to $1.4 million in Q3 2023, while gross profit for the nine-month period was $3.9 million, slightly down from $4.0 million in the prior year. The gross margin improved to 28.1% in Q3 2024 from 18.0% in Q3 2023, reflecting the benefits of reduced material costs. However, operating expenses increased, with Q3 2024 expenses at $730,182, up from $676,454 in Q3 2023, and nine-month expenses rising to $2.3 million from $2.0 million.

Income from operations for Q3 2024 was $359,111, a decrease from $710,209 in Q3 2023, while for the nine months, it was $1.6 million, down from $1.9 million. Net income for Q3 2024 was $360,578, compared to $578,784 in Q3 2023, and for the nine months, net income was $1.4 million, down from $1.6 million in the previous year. Earnings per share for Q3 2024 were $0.08, down from $0.13 in Q3 2023.

As of September 30, 2024, total current assets were $11.6 million, with cash and cash equivalents increasing to $7.7 million from $5.7 million at the end of 2023. Total current liabilities decreased significantly to $3.0 million from $5.9 million, contributing to an improved total shareholders' equity of $12.5 million, up from $11.0 million at year-end 2023. The accumulated deficit also improved to $(483,286) from $(1.9 million).

Strategically, the company identified niche markets for custom powder solutions and announced a five-year manufacturing agreement with Battle Sight Technologies to produce ColdFIRE® powder. Additionally, a line of credit was renewed for $1 million, maturing in August 2025, with no amounts drawn as of September 30, 2024. The company also modified its operating lease, extending it by five years with increased monthly payments.

About SCI Engineered Materials, Inc.

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