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Servotronics, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, indicating an increase in revenues to $12,430,000 from $11,582,000 in the same quarter the previous year, driven by higher volume and price increases.
Cost of goods sold for the quarter was $10,162,000, representing 81.8% of sales, compared to 78.4% in the same quarter of the previous year. The increase in cost ratio is attributed to higher overhead costs and unfavorable product mix.
The company reported a gross profit of $2,268,000 for the quarter, compared to $2,499,000 in the previous year, with the decline attributed to unfavorable product mix and increased overhead costs.
Selling, general, and administrative expenses decreased to $1,979,000 from $2,219,000, primarily due to lower research and development project costs.
Net loss for the quarter was $496,000, compared to a net loss of $204,000 in the previous year. Loss from continuing operations was $453,000, compared to income of $182,000 in the previous year.
Cash provided by operating activities was $11,000, while cash used in investing and financing activities was $933,000 and $1,045,000, respectively.
Servotronics had a working capital of $21,845,000 as of September 30, 2024. The company acknowledges its dependence on achieving expected operating results to maintain sufficient liquidity.
The filing also details a legal settlement expense of $570,000 related to employment contract disputes with a former officer, expected to be settled before year-end.
Servotronics continues to focus on expanding its business in the aerospace and defense sectors, while managing challenges related to supply chain disruptions and labor shortages.
The company does not anticipate any significant changes in its internal controls over financial reporting that would materially affect its financial statements.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Servotronics Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.