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Shimmick Corporation (SHIM+3.17%) has submitted its 10-Q filing for the quarterly period ended September 27, 2024.
The filing includes financial statements for the period, showing a decrease in revenue to $166,035,000 from $175,448,000 in the same quarter the previous year. The decrease is attributed to lower activity on existing projects and the winding down of jobs.
Gross margin for the quarter was $12,189,000, down from $17,012,000 in the previous year. The decline is primarily due to increased costs on existing projects and a decrease in margin from jobs winding down.
Shimmick recorded a gain of $16,896,000 from the sale-leaseback of its equipment yard in Tracy, California.
ERP pre-implementation asset impairment and associated costs amounted to $15,708,000 for the quarter due to a strategic decision to enhance the existing ERP system rather than implementing a new platform.
Interest expense increased to $1,977,000 from $412,000, primarily due to charges on the Credit Facility entered into in May 2024.
Net loss for the quarter was $1,564,000, compared to net income of $34,831,000 in the previous year. The loss is attributed to the ERP asset impairment costs and decreased gross margin.
Cash used in operating activities was $66,183,000, while cash provided by investing and financing activities was $18,389,000 and $10,457,000, respectively.
Shimmick reported a backlog of $834 million as of September 27, 2024, with over half related to water projects.
The filing also details various financial agreements, including amendments to the Credit Facility and Revolving Credit Facility.
Shimmick does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting, which it is in the process of remediating.
Shimmick continues to focus on its water infrastructure projects and plans to use proceeds from recent settlements to support ongoing operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Shimmick Corporation quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.