2017 Q2 Form 10-Q Financial Statement

#000114420417043199 Filed on August 14, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $5.830M $4.644M
YoY Change 25.55% 6.17%
Cost Of Revenue $4.090M $3.109M
YoY Change 31.53% 0.63%
Gross Profit $1.741M $1.535M
YoY Change 13.39% 19.64%
Gross Profit Margin 29.85% 33.05%
Selling, General & Admin $919.8K $888.2K
YoY Change 3.56% 11.02%
% of Gross Profit 52.84% 57.86%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $171.6K $176.1K
YoY Change -2.52% -37.13%
% of Gross Profit 9.86% 11.47%
Operating Expenses $919.8K $888.2K
YoY Change 3.56% 9.65%
Operating Profit $820.8K $647.2K
YoY Change 26.82% 36.83%
Interest Expense $108.8K $193.2K
YoY Change -43.7% -171.56%
% of Operating Profit 13.25% 29.85%
Other Income/Expense, Net -$108.7K -$192.5K
YoY Change -43.53%
Pretax Income $712.1K $454.8K
YoY Change 56.6% 116.55%
Income Tax $287.6K $9.453K
% Of Pretax Income 40.39% 2.08%
Net Earnings $420.0K $450.0K
YoY Change -6.67% 114.29%
Net Earnings / Revenue 7.2% 9.69%
Basic Earnings Per Share $0.01 $0.02
Diluted Earnings Per Share $0.01 $0.02
COMMON SHARES
Basic Shares Outstanding 28.82M shares 27.32M shares
Diluted Shares Outstanding 29.77M shares 27.71M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.330M $2.860M
YoY Change 16.43% 95.89%
Cash & Equivalents $3.332M $2.858M
Short-Term Investments
Other Short-Term Assets $460.3K $540.0K
YoY Change -14.76% -58.14%
Inventory $3.530M $1.750M
Prepaid Expenses
Receivables $1.229M $1.400M
Other Receivables $0.00 $0.00
Total Short-Term Assets $8.555M $6.550M
YoY Change 30.61% 18.66%
LONG-TERM ASSETS
Property, Plant & Equipment $4.954M $4.640M
YoY Change 6.76% -14.55%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $34.02K $810.0K
YoY Change -95.8% 2600.0%
Total Long-Term Assets $8.107M $5.450M
YoY Change 48.75% 0.0%
TOTAL ASSETS
Total Short-Term Assets $8.555M $6.550M
Total Long-Term Assets $8.107M $5.450M
Total Assets $16.66M $12.00M
YoY Change 38.85% 9.39%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $564.7K $620.0K
YoY Change -8.91% -48.33%
Accrued Expenses $1.039M $1.240M
YoY Change -16.23% 0.81%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $730.0K $580.0K
YoY Change 25.86% -37.63%
Total Short-Term Liabilities $2.912M $4.610M
YoY Change -36.83% -37.53%
LONG-TERM LIABILITIES
Long-Term Debt $4.720M $4.480M
YoY Change 5.36% 99.11%
Other Long-Term Liabilities $10.00K $30.00K
YoY Change -66.67%
Total Long-Term Liabilities $4.730M $4.510M
YoY Change 4.88% 100.44%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.912M $4.610M
Total Long-Term Liabilities $4.730M $4.510M
Total Liabilities $8.170M $9.810M
YoY Change -16.72% -6.21%
SHAREHOLDERS EQUITY
Retained Earnings $113.8K
YoY Change
Common Stock $2.882K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $8.495M $2.180M
YoY Change
Total Liabilities & Shareholders Equity $16.66M $12.00M
YoY Change 38.85% 9.39%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $420.0K $450.0K
YoY Change -6.67% 114.29%
Depreciation, Depletion And Amortization $171.6K $176.1K
YoY Change -2.52% -37.13%
Cash From Operating Activities $573.8K $1.390M
YoY Change -58.72% 265.79%
INVESTING ACTIVITIES
Capital Expenditures $212.9K $0.00
YoY Change -100.0%
Acquisitions
YoY Change
Other Investing Activities $80.00K
YoY Change
Cash From Investing Activities -$132.9K $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$174.6K 140.0K
YoY Change -224.71% -160.87%
NET CHANGE
Cash From Operating Activities $573.8K 1.390M
Cash From Investing Activities -$132.9K 0.000
Cash From Financing Activities -$174.6K 140.0K
Net Change In Cash $266.2K 1.530M
YoY Change -82.6% 1076.92%
FREE CASH FLOW
Cash From Operating Activities $573.8K $1.390M
Capital Expenditures $212.9K $0.00
Free Cash Flow $360.8K $1.390M
YoY Change -74.04% 247.5%

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CY2017Q2 us-gaap Interest And Dividends Payable Current
InterestAndDividendsPayableCurrent
8033 USD
CY2017Q1 us-gaap Interest And Dividends Payable Current
InterestAndDividendsPayableCurrent
9155 USD
CY2017Q2 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
42903 USD
CY2017Q1 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
24147 USD
CY2017Q2 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
197701 USD
CY2017Q1 us-gaap Accrued Professional Fees Current
AccruedProfessionalFeesCurrent
142648 USD
CY2017Q2 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
155414 USD
CY2017Q1 us-gaap Deferred Finance Costs Net
DeferredFinanceCostsNet
188977 USD
CY2017Q2 us-gaap Long Term Debt And Capital Lease Obligations Including Current Maturities
LongTermDebtAndCapitalLeaseObligationsIncludingCurrentMaturities
5451174 USD
CY2017Q1 us-gaap Long Term Debt And Capital Lease Obligations Including Current Maturities
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5592202 USD
CY2017Q2 us-gaap Debt And Capital Lease Obligations
DebtAndCapitalLeaseObligations
5606588 USD
CY2017Q1 us-gaap Debt And Capital Lease Obligations
DebtAndCapitalLeaseObligations
5781179 USD
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
0.409
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
0.445
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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1246600 USD
CY2017Q2 tpcs Share Based Compensation Arrangement By Share Based Payment Award Options Granted Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantedIntrinsicValue
0 USD
CY2016Q2 us-gaap Defined Contribution Plan Cost Recognized
DefinedContributionPlanCostRecognized
18750 USD
CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
3002668 shares
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
200000 shares
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
3202668 shares
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingNumber
3202668 shares
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
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CY2017Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
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CY2017Q2 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
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CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
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0.409
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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992250 USD
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
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992250 USD
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
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667875 USD
CY2017 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P5Y8M19D
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P6Y3M14D
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1
P6Y3M14D
CY2017Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
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833334 shares
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedNumberOfShares
80000 shares
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
953334 shares
CY2017Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedWeightedAverageGrantDateFairValue
0.266
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedWeightedAverageGrantDateFairValue
0.740
CY2017Q2 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Outstanding Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions
3202668 shares
CY2017Q2 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions
2249334 shares
CY2017Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
942073 shares
CY2016Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
387326 shares
CY2017Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
502668 shares
CY2016Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
428500 shares
CY2017Q1 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
USD
CY2017Q2 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2017Q1 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.0001
CY2017Q2 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
90000000 shares
CY2017Q1 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
90000000 shares
CY2017Q2 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
28824593 shares
CY2017Q1 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
28824593 shares
CY2017Q2 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
28824593 shares
CY2017Q1 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
28824593 shares
CY2018Q1 tpcs Employee Agreement Annual Commitment For Future Salaries During Next Fiscal Year
EmployeeAgreementAnnualCommitmentForFutureSalariesDuringNextFiscalYear
500000 USD
CY2017Q2 tpcs Employee Agreement Annual Commitment For Vacation And Holiday
EmployeeAgreementAnnualCommitmentForVacationAndHoliday
300000 USD
CY2017Q2 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
80000 USD
CY2016Q2 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
0 USD
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y3M14D
CY2017Q2 us-gaap Nature Of Operations
NatureOfOperations
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" align="justify"></div> <div style="CLEAR:both;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" align="justify"><b><font style="FONT-FAMILY: 'Times New Roman',serif; FONT-SIZE: 10pt">NOTE 1 - DESCRIPTION OF BUSINESS</font></b></div> <div style="CLEAR:both;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman',serif; FONT-SIZE: 10pt"> &#160;</font></div> <div style="CLEAR:both;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman',serif; FONT-SIZE: 10pt"> TechPrecision Corporation, or TechPrecision, is the parent company of Ranor, Inc., or Ranor, a Delaware corporation and Wuxi Critical Mechanical Components Co., Ltd., or WCMC, a wholly foreign owned enterprise (WFOE)&#160;organized under the laws of the People&#8217;s Republic of China.&#160;TechPrecision, WCMC and Ranor are collectively referred to as the &#8220;Company&#8221;, &#8220;we&#8221;, &#8220;us&#8221; or &#8220;our&#8221;.</font></div> <div style="CLEAR:both;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman',serif; FONT-SIZE: 10pt"> &#160;</font></div> <div style="CLEAR:both;LINE-HEIGHT: normal; MARGIN: 0in 0in 0pt; FONT-FAMILY: Calibri,sans-serif; FONT-SIZE: 11pt" align="justify"><font style="FONT-FAMILY: 'Times New Roman',serif; FONT-SIZE: 10pt">We manufacture large scale metal fabricated and machined precision components and equipment. These products are used in a variety of markets including defense and aerospace, nuclear, medical, and precision industrial.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedVolatilityRate
1.101 pure
CY2017Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate
ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsRiskFreeInterestRate
0.0188 pure
CY2017Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedInPeriodFairValue1
48079 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax
-296 USD
CY2016Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci On Derivatives Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIOnDerivativesTax
0 USD
CY2017Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.404 pure
CY2016Q2 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.021 pure
CY2017Q1 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1500000 USD
CY2017 tpcs Debt Instrument Covenant Leverage Ratio
DebtInstrumentCovenantLeverageRatio
1.00 pure
CY2017Q2 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
1500000 USD

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