Twin Disc Inc (TWIN) Reports 13.7% Increase in Q1 FY24 Sales
Twin Disc Inc (NASDAQ:TWIN) reports a 13.7% year-over-year increase in Q1 FY24 sales, driven by demand in Marine and Propulsion Systems and Land-Based Transmissions markets.
Net loss for the quarter stands at ($1.2) million, an improvement from the previous year's ($1.4) million.
Backlog of orders to be shipped over the next six months is approximately $122.5 million, compared to $119.2 million at the end of the fourth fiscal quarter of 2023.
Cash increased 54.6% to $20.4 million and net debt decreased $22.7 million to $1.2 million compared to the first fiscal quarter of 2023.
On November 2, 2023, Twin Disc Inc (NASDAQ:TWIN) released its earnings report for the first quarter of fiscal 2024, ending September 29, 2023. The company reported impressive results, with double-digit revenue growth, robust margin expansion, and solid cash generation.
Financial Highlights
First quarter sales for fiscal 2024 increased 13.7% year-over-year to $63.6 million. This growth was driven by demand for the company's Marine and Propulsion Systems and Land-Based Transmissions markets, and a favorable product mix. The company delivered 19% growth year-over-year in the Europe, North America, and Asia-Pacific regions.
Gross profit increased 25.1% to $16.6 million compared to $13.3 million for the first fiscal quarter of 2023. Despite a one-time non-cash charge of $3.1 million related to the sale of the boat management system product line, the first quarter gross margin increased approximately 240 basis points sequentially to 26.2%.
Net Loss and EBITDA
The net loss attributable to Twin Disc for the quarter was ($1.2) million, or ($0.09) per diluted share, compared to a net loss of ($1.4) million, or ($0.11) per share, for the first fiscal quarter of 2023. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by $1.7 million to $2.3 million in the first quarter, compared to $0.6 million in the first fiscal quarter of 2023.
Backlog and Cash Flow
On a consolidated basis, the backlog of orders to be shipped over the next six months is approximately $122.5 million, compared to $119.2 million at the end of the fourth fiscal quarter of 2023. Cash increased 54.6% to $20.4 million and net debt decreased $22.7 million to $1.2 million compared to the first fiscal quarter of 2023.
CEO and CFO Perspectives
John H. Batten, President and Chief Executive Officer of Twin Disc, commented on the results,
We delivered impressive results in the first quarter, highlighted by double-digit revenue growth, robust margin expansion, and solid cash generation, giving us the confidence to reinstate our quarterly dividend."
Jeffrey S. Knutson, Vice President of Finance, Chief Financial Officer, Treasurer, and Secretary, added,
As supply chain headwinds have largely subsided and end market demand remains solid, we are well-positioned to continue driving profitable growth for Twin Disc."
For more detailed financial information, please refer to the full earnings report.
Explore the complete 8-K earnings release (here) from Twin Disc Inc for further details.
This article first appeared on GuruFocus.
