Net Income More Than Doubles Year-Over-Year on 6% Revenue Increase

/EINPresswire.com/ -- WESTMINSTER, MA -- (Marketwired) -- 08/15/16 -- TechPrecision Corporation (OTCQB: TPCS) ("TechPrecision" or "the Company"), an industry leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, today reported financial results for the first quarter period of fiscal year 2017, the period ended June 30, 2016.

First Quarter Recap
"This was another quarter of operational and financial progress as we delivered a profit for our fifth consecutive quarter," stated Alexander Shen, TechPrecision's Chief Executive Officer. "We more than doubled net income on a 6% increase in sales, as we continue to benefit from our consistent sharp focus on productivity initiatives and top line growth with key customers. This progress has enabled us to refinance our equipment loan with a new lender, part of an ongoing effort to improve our balance sheet. As a result, we reported $2.9 million in cash and $1.9 million in working capital at June 30, 2016, both significantly improved compared to March 31, 2016 levels."

"Moving forward, we intend to maintain the sharp focus that led us to this point of our recovery," continued Mr. Shen. "We continue to replenish our backlog, focusing on new business contracts with our core customers which utilize our core competencies in custom, large scale, high precision fabrication and machining, and leverage our established expertise, certifications, and qualifications in the defense, nuclear, and precision industrial sectors."

"Our backlog at July 31, 2016 was approximately $20.2 million, compared to $17.1 million and $19.8 million at June 30, 2016 and March 31, 2016, respectively," added Mr. Shen. "We have not altered our focus. We target defense, nuclear and precision industrial as our primary markets."

First Quarter of Fiscal 2017 Financial Results

• Net sales were $4.6 million or a 6% increase when compared to the same quarter a year ago.
• Gross profit was $1.5 million compared to $1.3 million in the same quarter last year. Gross margins improved in the first quarter of fiscal 2017 due to a higher margin product mix.
• Net income of $445,000 increased significantly compared to a net income of $206,000 in the same quarter a year ago.

Balance Sheet Summary
On April 26, 2016, the Company, through its wholly owned subsidiary Ranor, Inc., executed and closed a Master Loan and Security Agreement, or MLSA, with People's Capital and Leasing Corp. People's agreed to loan $3.0 million at a fixed rate of 7.90% per annum to Ranor and loan proceeds were disbursed to Ranor on April 26, 2016. In connection with the MLSA, $2.7 million of the proceeds from the People's Loan were disbursed to Utica Leaseco, LLC as payment in full for principal and interest under the Utica equipment loan. The fixed rate under the MLSA is approximately 290 basis points lower than the rate on the Utica equipment loan it replaced. Under the terms of the MLSA, we will decrease our principal and interest payments over the next three fiscal years by more than $300,000 per year.

At June 30, 2016, TechPrecision had working capital of $1.9 million compared to working capital of $0.5 million at March 31, 2016. The Company had $2.9 million in cash at June 30, 2016 compared to $1.3 million at March 31, 2016.

Teleconference Information
The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on August 15, 2016. To participate in the live conference call, please dial 1-866-635-0172 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-785-424-1629. When prompted, reference Conference ID: TECH.

A replay will be available until September 15, 2016. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 10069.

The call will also be available live by webcast at TechPrecision Corporation's website, www.techprecision.com, and will also be available over the Internet and accessible at http://www.investorcalendar.com/IC/CEPage.asp?ID=175230.

About TechPrecision Corporation
TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc. and Wuxi Critical Mechanical Components Co., Ltd., manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: defense, aerospace, nuclear, industrial, and medical. TechPrecision's goal is to be an end-to-end service provider to its customers by furnishing customized and integrated "turn-key" solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.

Safe Harbor Statement
This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including the availability of appropriate financing facilities, the Company's ability to receive contract awards through competitive bidding processes, the Company's ability to maintain standards to enable it to manufacture products to exacting specifications, the Company's ability to enter new markets for its services, market and customer acceptance of the Company's products, the Company's reliance on a small number of customers for a significant percentage of its business, competition, government regulations and requirements, pricing and development difficulties, the Company's ability to make acquisitions and successfully integrate those acquisitions with its business, general industry and market conditions and growth rates, general economic conditions, and other risks discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission (the "SEC") and available on the SEC's website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors. Any forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this press release, except as required by applicable law.

Company Contact:
Mr. Thomas Sammons
Chief Financial Officer
TechPrecision Corporation
Phone: 978-883-5109
Email: sammonst@ranor.com
Website: www.techprecision.com

Investor Relations Contact:
Hayden IR
Brett Maas
Phone: 646-536-7331
Email: brett@haydenir.com
Website: www.haydenir.com

                          TECHPRECISION CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)

                                                  June 30,      March 31,
                                                    2016           2016
                                               -------------  -------------
ASSETS
Current assets:
  Cash                                         $   2,858,278  $   1,332,166
  Accounts receivable, less allowance for
   doubtful accounts of $0 at June 30, 2016
   and March 31, 2016                              1,395,905      2,022,480
  Costs on uncompleted contracts, in excess of
   progress billings                               1,614,437      2,395,642
  Inventories- raw materials                         139,915        128,595
  Other current assets                               541,425        530,808
                                               -------------  -------------
Total current assets                               6,549,960      6,409,691
                                               -------------  -------------
Property, plant and equipment, net                 4,638,134      4,814,184
Deferred income taxes                                684,270        684,270
Other noncurrent assets, net                         123,900        176,344
                                               -------------  -------------
Total assets                                   $  11,996,264  $  12,084,489
                                               =============  =============

LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
  Accounts payable                             $     617,919  $     996,065
  Accrued expenses                                 1,670,250      1,804,485
  Income taxes payable                                18,485          9,032
  Advanced claims payment                            507,835        507,835
  Billings on uncompleted contracts, in excess
   of related costs                                1,221,050      1,629,018
  Current portion of long-term debt                  577,336        953,106
                                               -------------  -------------
Total current liabilities                          4,612,875      5,899,541
                                               -------------  -------------
Long-term debt, net                                4,482,724      3,735,410
Deferred income taxes                                684,270        684,270
Noncurrent accrued expenses                           32,258         37,097
Stockholders' Equity:
  Common stock - par value $.0001 per share,
   90,000,000 shares authorized,
  27,324,593 shares issued and outstanding at
   June 30, 2016,
  and 27,324,593 shares issued and outstanding
   at March 31, 2016                                   2,732          2,732
  Additional paid in capital                       7,106,354      7,094,749
  Accumulated other comprehensive income              20,626         21,568
  Accumulated deficit                             (4,945,575)    (5,390,878)
                                               -------------  -------------
Total stockholders' equity                         2,184,137      1,728,171
                                               -------------  -------------
Total liabilities and stockholders' equity     $  11,996,264  $  12,084,489
                                               =============  =============



                          TECHPRECISION CORPORATION
  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
                                 (Unaudited)

                                                Three Months Ended June 30,
                                               -----------------------------
                                                    2016           2015
                                               -------------  -------------
Net sales                                      $   4,644,805  $   4,374,975
Cost of sales                                      3,109,412      3,092,116
                                               -------------  -------------
Gross profit                                       1,535,393      1,282,859
Selling, general and administrative                  888,178        804,207
                                               -------------  -------------
Income from operations                               647,215        478,652
                                               -------------  -------------
  Other income (expense)                                 746           (189)
  Interest expense                                  (193,210)      (272,122)
  Interest income                                          5             10
                                               -------------  -------------
Total other expense, net                            (192,459)      (272,301)
                                               -------------  -------------
Income before income taxes                           454,756        206,351
Income tax expense                                     9,453             --
                                               -------------  -------------
Net income                                     $     445,303  $     206,351
                                               =============  =============
Other comprehensive loss, before tax:
  Foreign currency translation adjustments              (942)           (61)
                                               -------------  -------------
Other comprehensive loss, before tax                    (942)           (61)
                                               -------------  -------------
  Income tax expense on other comprehensive
   loss items                                             --             --
                                               -------------  -------------
Comprehensive income, net of tax               $     444,361  $     206,290
                                               =============  =============
Net income per share (basic)                   $        0.02  $        0.01
Net income per share (diluted)                 $        0.02  $        0.01
Weighted average number of shares outstanding
 (basic)                                          27,324,593     24,867,019
Weighted average number of shares outstanding
 (diluted)                                        27,711,919     24,867,019



                          TECHPRECISION CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)

                                                Three Months Ended June 30,
                                               ----------------------------
                                                    2016           2015
                                               -------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                     $     445,303  $     206,351
Adjustments to reconcile net income to net
 cash provided by operating activities:
Depreciation                                         176,050        197,228
Amortization of debt issue costs                      48,918         79,689
Stock based compensation expense                      11,605         13,957
Provision for contract losses                        (35,069)        20,371
Changes in operating assets and liabilities:
Accounts receivable                                  626,575          4,724
Costs on uncompleted contracts, in excess of
 progress billings                                   781,205        207,755
Inventories - raw materials                          (11,320)          (959)
Other current assets                                 172,780         11,078
Other noncurrent assets                               52,444             --
Accounts payable                                    (378,146)      (386,285)
Accrued expenses                                    (105,465)        14,520
Accrued taxes                                          9,453             --
Advanced claims payment                                   --        507,835
Billings on uncompleted contracts, in excess
 of related costs                                   (407,968)      (496,955)
                                               -------------  -------------
  Net cash provided by operating activities        1,386,365        379,309

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment                --        (17,600)
                                               -------------  -------------
  Net cash used in investing activities                   --        (17,600)
                                               -------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES
Deferred loan costs                                 (144,338)            --
Borrowings of long-term debt                       2,828,885             --
Repayment of long-term debt                       (2,544,685)      (233,349)
                                               -------------  -------------
  Net cash provided by (used in) financing
   activities                                        139,862       (233,349)
                                               -------------  -------------
Effect of exchange rate on cash                         (115)            75
                                               -------------  -------------
Net increase in cash                               1,526,112        128,435
                                               -------------  -------------
Cash, beginning of period                      $   1,332,166  $   1,336,325
                                               -------------  -------------
Cash, end of period                            $   2,858,278  $   1,464,760
                                               =============  =============

Company Contact:
Mr. Thomas Sammons
Chief Financial Officer
TechPrecision Corporation
Phone: 978-883-5109
Email: sammonst@ranor.com
Website: www.techprecision.com

Investor Relations Contact:
Hayden IR
Brett Maas
Phone: 646-536-7331
Email: brett@haydenir.com
Website: www.haydenir.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.