Twin Disc, Incorporated (NASDAQ:TWIN) Q1 2024 Earnings Call Transcript
Twin Disc, Incorporated (NASDAQ:TWIN) Q1 2024 Earnings Call Transcript November 4, 2023
Operator: Ladies and gentlemen, thank you for standing by, and welcome to the Twin Disc, Inc. Fiscal First Quarter 2024 Conference Call. [Operator Instructions] Thank you. Jeff Knutson, you may begin your conference.
Jeff Knutson: Good morning, and thank you for joining us today to discuss our fiscal 2024 first quarter results. On the call with me today is John Batten, Twin Disc's CEO. I would like to remind everyone that certain statements made during this conference call, especially statements expressing hopes, beliefs, expectations or predictions for the future are forward-looking statements. It is important to remember that the company's actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements, are contained in the company's annual report on Form 10-K, copies of which may be obtained by contacting either the company or the SEC.
Any forward-looking statements that are made during this call are based on assumptions as of today, and the company undertakes no obligation to publicly update or revise these statements to reflect subsequent events or new information. During today's call, management will also discuss certain non-GAAP financial measures. For a definition of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results, please see the earnings release issued earlier today. By now, you should have received the news release, which was issued this morning before the market opened. If you have not received a copy, please call our office at 262-638-4000 and we will send the release to you. Now I'll turn the call over to John.
Christian Lagerek/Shutterstock.com
John Batten: Good morning, everyone, and welcome to our fiscal 2024 first quarter conference call. Let's begin today's call with some highlights. We had an impressive start to the new fiscal year, building off the positive momentum generated in the fourth quarter to deliver growth in many of our markets. Throughout the first fiscal quarter, our global teams worked to capture stable demand for our products, drive increased shipments and resulting in a 13.7% year-over-year sales growth. We also achieved robust gross margin expansion, improving 240 basis points to 26.2%, despite incurring a onetime charge of $3.1 million, along with significant increases in EBITDA and cash generation. Owing to our improved financial position, I am pleased to announce that the Board has approved reinstating a quarterly cash dividend in the amount of $0.04 per share.
These results are largely due to hard work on the part of our team, taking a disciplined approach in executing on operational priorities. Our Singapore-based sales team performed exceptionally well to drive growth and further expand our presence in Chinese market, especially the oil and gas one. We ended the quarter with continued backlog growth, underscored by a record backlog in our airport rescue and firefighting transmission business, while inventories favorably declined. That also continues to perform strongly, driven by further growth beyond its core Northern European markets into North America and the Asia Pacific region. Shifting to our product group, we saw strong demand in our marine and propulsion systems, with increased activity in global commercial markets driving 24% growth in sales.
See also 25 Richest Families In the World and Their Stocks and 10 Best Rubber and Plastics Stocks To Buy.
To continue reading the Q&A session, please click here.
