In This Story
Twin Disc Incorporated (TWIN-8.66%) has submitted its 10-Q filing for the quarterly period ended December 27, 2024.
Net sales for the second quarter increased by 23.2% to $89.9 million from $73.0 million in the same quarter the previous year. This increase was partly due to the acquisition of Katsa Oy, contributing $10.0 million in revenue.
Gross profit as a percentage of sales declined to 24.1% from 28.3% in the previous year, impacted by a non-cash inventory write-down of $1.6 million related to a product rationalization exercise.
Marketing, engineering, and administrative expenses increased by $1.7 million, or 9.9%, over the same period last year, primarily due to the addition of Katsa and increased professional fees.
Net income for the quarter was $1.1 million, compared to $0.9 million in the previous year. The effective tax rate was 58.5%, down from 64.0% in the prior year.
Cash decreased by $4.2 million to $15.9 million as of December 27, 2024. The majority of the cash is held at the company's overseas operations.
Total borrowings and long-term debt decreased by $0.9 million to $24.9 million. The company ended the quarter with a net debt of $9.0 million.
Total equity decreased by $7.4 million to $147.6 million, primarily due to a net loss during the first half and foreign currency translation adjustments.
The company remains in compliance with its credit agreement covenants and believes its available cash and credit facilities will be adequate to fund its requirements for the foreseeable future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Twin Disc Incorporated quarterly 10-Q report dated February 5, 2025. To report an error, please email earnings@qz.com.