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Air Industries Group (AIRI+1.63%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
Net sales for the three months ended September 30, 2024, were $12,555,000, an increase of 2.1% compared to the same period in 2023. The increase was due to changes in the mix of products requested by customers.
Gross profit for the quarter was $1,941,000, up from $1,228,000 in the previous year, with a gross margin increase to 15.5% from 10.0%. The improvement was attributed to changes in sales across major platforms, shifts in product mix, and operating efficiencies.
Operating expenses decreased to $1,874,000 from $2,024,000, primarily due to reductions in stock compensation expense and allowance for credit loss, offset by costs related to IT improvements and cybersecurity.
Interest expense for the quarter was $482,000, down from $516,000, due to lower borrowing levels.
The company reported a net loss of $404,000 for the quarter, compared to a net loss of $1,299,000 in the previous year.
For the nine months ended September 30, 2024, net sales increased by 5.6% to $40,188,000. The increase was primarily due to changes in the mix of products requested by customers.
Gross profit for the nine months was $6,491,000, up from $5,278,000, with a gross margin increase to 16.2% from 13.9%.
Operating expenses for the nine months were $5,931,000, a decrease from $6,160,000, with reductions in stock compensation expense and allowance for credit loss.
Interest expense for the nine months was $1,418,000, a decrease from $1,472,000, due to lower borrowing levels and an increase in the average interest rate.
The company reported a net loss of $812,000 for the nine months, compared to a net loss of $2,312,000 in the previous year.
The filing highlights concerns about the company's ability to continue as a going concern due to potential future covenant breaches under its credit facility.
The company has a credit facility with Webster Bank (WBS-0.17%), which includes a $20,000,000 revolving loan and a $5,700,000 term loan, with a maturity date of December 30, 2025.
The company has various equipment leases and contractual obligations, including advances under a Solar Facility for the installation of solar energy systems.
Air Industries Group continues to focus on securing new contract awards and improving operations to achieve sustainable and profitable growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Air Industries Group quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.