Taylor Devices Inc. Reports 17% Revenue Growth, Improved Profitability in Q3 2024

Taylor Devices Inc. reported its financial results for the three-month period ending August 31, 2024, showcasing notable changes in revenue, profitability, and operational metrics compared to the same period in 2023.

Net sales for the quarter reached $11.6 million, a 17% increase from $9.9 million in the prior year. This growth was driven by a 30% rise in revenues from projects and a 2% increase in revenues from non-projects. The company had 23 projects in process during the quarter, up from 22 in the previous year. Total sales in the U.S. increased by 10%, while sales to Asia surged by 38%. Notably, sales to aerospace and defense customers rose by 20%, and sales to industrial customers saw a significant increase of 111%. However, sales to construction customers declined by 5%.

Gross profit for the quarter was $5.5 million, reflecting a 26% increase from $4.4 million in the same period last year. The gross profit margin improved to 47%, up from 44% in the prior year. Operating income also increased to $2.9 million, compared to $1.9 million in the same period last year, attributed to higher gross margins from increased sales.

Net income for the quarter was reported at $819,000, an increase of $800,000 compared to the same period in 2023. The provision for income taxes was $182,000, leading to income before tax of $1 million.

On the expense side, research and development costs decreased by $60,000, while selling, general, and administrative expenses rose by 8%, primarily due to increased employee compensation costs. Personnel costs significantly dropped to $1.8 million from $3.8 million in the previous quarter.

As of August 31, 2024, the company reported customer deposits of $28,563, a substantial decrease from $285,689 on May 31, 2024. Inventory levels increased to $8.2 million, with 86% classified as work in process. Accounts receivable rose by 30% to $6.8 million, and the average days sales outstanding increased from 39 to 53 days.

The company's backlog of sales orders stood at $28.4 million, slightly down from $33.1 million at the end of the previous year. Accounts payable increased by 28%, while accrued expenses decreased by 49%, attributed to the payout of fiscal year 2024 incentive compensation. Capital expenditures for the quarter were $247,000, down from $428,000 in the same period last year, with commitments for future capital expenditures totaling $1.3 million.