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Sypris Solutions, Inc. has submitted its 10-Q filing for the quarterly period ended September 29, 2024.
The filing includes financial statements for the quarter, showing an increase in net revenue to $35,657,000 from $33,581,000 in the same quarter the previous year. The increase is attributed to higher sales in the Sypris Electronics segment.
Cost of sales for the quarter was $29,678,000, representing 83% of sales, compared to 88% in the same quarter of the previous year. This decrease in cost ratio is due to improved mix and higher absorption in the Sypris Technologies segment.
The company reported a gross profit of $5,979,000 for the quarter, compared to $4,040,000 in the previous year, with the increase attributed to improved performance in the Sypris Technologies segment.
Selling, general, and administrative expenses were $4,250,000, slightly up from $4,170,000 in the previous year, primarily due to unfavorable medical claims and additional headcount.
Net income for the quarter was $390,000, compared to a net loss of $555,000 in the previous year. The improvement is driven by increased revenue and gross profit.
Cash used in operating activities was $308,000 for the nine months ended September 29, 2024, compared to $8,169,000 used in the same period of 2023. This improvement is primarily due to a decrease in inventory and an increase in accounts receivable.
Sypris had a working capital of $20,564,000 as of September 29, 2024. The company continues to focus on improving its liquidity position and managing its working capital effectively.
The filing also discusses the company's debt obligations, including a note payable to Gill Family Capital Management, Inc., which was increased by $2,500,000 in the first quarter of 2024.
Sypris Solutions does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting due to a lack of resources with SEC financial reporting experience.
Sypris continues to focus on expanding its market presence in the aerospace and defense electronics sector, with ongoing demand creating opportunities for growth.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Sypris Solutions Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.