M-tron Industries, Inc. Reports Strong Third Quarter 2024 Results with Revenue and Earnings per Share Above Expectations

   -- 
 Revenues increased 21.4%, or $2,326,000, to $13,214,000 for the three 
      months ended September 30, 2024 from $10,888,000 for the three months 
      ended September 30, 2023 
 
 
   -- 
 Gross margin increased 500 basis points to 47.8% for the three months 
      ended September 30, 2024 from 42.8% for the three months ended September 
      30, 2023 
 
 
   -- 
 Net income per diluted share increased 42.1%, or $0.24, to $0.81 for 
      the three months ended September 30, 2024 from $0.57 for the three months 
      ended September 30, 2023 
 
 
   -- 
 MtronPTI anticipates a strong performance in Q4 2024 and expects to 
      exceed its prior guidance for FY 2024 
 
ORLANDO, Fla.--(BUSINESS WIRE)--November 13, 2024-- 

M-tron Industries, Inc. (NYSE American: MPTI) ("MtronPTI" or the "Company"), a designer and manufacturer of highly-engineered electronic components and solutions used to control the frequency or timing of signals in electronic circuits, announced strong financial results for the three and nine months ended September 30, 2024.

"We are pleased to report continued strength in MtronPTI's sales and strong financial performance for Q3 2024," said Michael J. Ferrantino, Jr., MtronPTI Chief Executive Officer. "Our revenues continue to be driven by defense-related orders. With improved operating efficiencies, we have been able to make strategic investments in research and development to help drive future growth and still produce superior earnings per share."

"We expect revenues, new orders and earnings to remain strong and believe the Company will exceed expectations for FY 2024," continued Mr. Ferrantino.

Results from Operations

Third Quarter 2024

Net income was $2,267,000, or $0.81 per diluted share, for the three months ended September 30, 2024 compared with $1,586,000, or $0.57 per diluted share, for the three months ended September 30, 2023. The increase was primarily due to continued strong defense program product and solution shipments. Manufacturing cost of sales grew consistent with the growth in revenues. Higher Engineering, selling and administrative expenses resulted from increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses consistent with the overall growth in the business.

Gross margin was 47.8% for the three months ended September 30, 2024 compared with 42.8% for the three months ended September 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies due to previous investments, and an improved product mix to higher margin products.

Adjusted EBITDA was $3,300,000 for the three months ended September 30, 2024 compared with $2,336,000 for the three months ended September 30, 2023. The increase was primarily due to improved gross margins; continued containment of operating expenses other than strategic investments in research and development, resulting in higher income before taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.

Fiscal Year to Date 2024

Net income was $5,497,000, or $1.97 per diluted share, for the nine months ended September 30, 2024 compared with $3,416,000, or $1.25 per diluted share, for the nine months ended September 30, 2023. The increase was primarily due to higher sales related to strong defense program product shipments partially offset by higher Manufacturing cost of sales consistent with the growth in revenues as well as higher Engineering, selling and administrative expenses related to increased investment in research and development, higher sales commissions related to an increase in revenues, and an increase in administrative and corporate expenses to support the growth in revenues.

Gross margin was 45.8% for the nine months ended September 30, 2024 compared with 39.7% for the nine months ended September 30, 2023. The increase was primarily due to higher revenues, improved production efficiencies, and a higher margin product mix.

Adjusted EBITDA was $8,085,000 for the nine months ended September 30, 2024 compared with $5,295,000 for the nine months ended September 30, 2023. The increase was primarily due to higher gross margins and continued containment of operating expenses, resulting in higher income before income taxes; higher depreciation; and higher stock-based compensation partially offset by higher interest income.

Backlog

Backlog was $39,763,000 as of September 30, 2024 compared to $47,831,000 as of December 31, 2023 and $50,280,000 as of September 30, 2023. The decrease in Backlog from December 31, 2023 reflects the continued strategy and focus on securing large, long duration program-centric business, which can materially affect backlog due to the timing and size of these orders.

Improved 2024 Outlook

With the continued momentum in defense-related sales, and the acceleration in production and shipments during the first half of 2024, MtronPTI management raised the outlook for fiscal year 2024, increasing revenues to a range of $46.0 million to $48.0 million from a previous range of $43.0 million to $45.0 million. MtronPTI has good visibility for the remaining quarter of 2024 and expects to exceed the prior revenue guidance and achieve an EBITDA margin in the 19% to 21% range.

Earnings Call

Management, including Mr. Ferrantino and Cameron Pforr, Chief Financial Officer, will host a conference call with the investment community on Thursday, November 14, 2024, to discuss the Company's third quarter 2024 results and to respond to investor questions.

The call will begin at 10:30 a.m. Eastern Time (U.S. and Canada) on Thursday November 14, 2024, and can be accessed using the dial-in details below:

 
   Toll-Free Dial-in Number:   (800) 715-9871 
   Toll Dial-in Number:        +1 (646) 307-1963 
   Conference ID:              1795619 
 

An archive will be available after the call on the Investor Relations section of MtronPTI's website at ir.mtronpti.com, along with MtronPTI's earnings release.

 
                                                                 M-tron Industries, Inc. 
                                                                    Quarterly Summary 
                                                                        (Unaudited) 
 
                                       2022                                             2023                                         2024 
                  ----------------------------------------------  -------------------------------------------------  ------------------------------------- 
(in thousands)        Q1          Q2          Q3          Q4          Q1          Q2           Q3           Q4           Q1           Q2           Q3 
---------------   ----------  ----------  ----------  ----------  ----------  -----------  -----------  -----------  -----------  -----------  ----------- 
Revenues          $7,691      $7,064      $8,417      $8,673      $9,367      $10,140      $10,888      $10,773      $11,185      $11,808      $13,214 
    Y/Y                                                             21.8%        43.5%        29.4%        24.2%        19.4%        16.4%        21.4% 
    Y/2Y                                                                                                                45.4%        67.2%        57.0% 
 
Gross margin        37.3%       37.5%       32.4%       35.7%       34.1%        41.6%        42.8%        43.6%        42.7%        46.6%        47.8% 
    Y/Y                                                             -8.6%        10.9%        32.1%        22.1%        25.2%        12.0%        11.7% 
    Y/2Y (a)                                                                                                            14.5%        24.3%        47.5% 
 
Net income (b)    $  619      $  486      $  503      $  190      $  553      $ 1,277      $ 1,586      $    73      $ 1,486      $ 1,744      $ 2,267 
    Y/Y                                                            -10.7%       162.8%       215.3%       -61.6%       168.7%        36.6%        42.9% 
    Y/2Y (a)                                                                                                           140.1%       258.8%       350.7% 
 
Adjusted EBITDA 
 (c)              $1,177      $  841      $  876      $1,114      $1,028      $ 1,931      $ 2,336      $ 2,397      $ 2,262      $ 2,523      $ 3,300 
    Y/Y                                                            -12.7%       129.6%       166.7%       115.2%       120.0%        30.7%        41.3% 
    Y/2Y (a)                                                                                                            92.2%       200.0%       276.7% 
 
 
(a)  Year over 2 years 
(b)  Q1 2022 - Q3 2022 do not include any public company costs as these 
     periods were pre-IPO. 
(c)  A reconciliation of non-GAAP financial measures to the most comparable 
     GAAP measure is provided at the end of this press release. 
 
 
                        M-tron Industries, Inc. 
            Condensed Consolidated Statements of Operations 
                              (Unaudited) 
 
                        Three Months Ended        Nine Months Ended 
                           September 30,            September 30, 
                      ----------------------  ------------------------- 
(in thousands, 
except share data)       2024        2023        2024         2023 
-------------------   ----------  ----------  ----------  ------------- 
Revenues              $   13,214  $   10,888  $   36,207  $   30,395 
Costs and expenses: 
    Manufacturing 
     cost of sales         6,904       6,230      19,617      18,322 
    Engineering, 
     selling and 
     administrative        3,389       2,625       9,773       7,714 
                       ---------   ---------   ---------   --------- 

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