Techprecision Corp (TPCS)

[USAMade]

TechPrecision Corporation Reports Fifth Consecutive Profitable Quarter

Net Income More Than Doubles Year-Over-Year on 6% Revenue Increase
WESTMINSTER, MA--(Marketwired - Aug 15, 2016) - 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.