Delaware
|
000-51378
|
51-0539828
|
||
(State or Other Jurisdiction
of Incorporation or Organization)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
Item 2.02
|
Results of Operations and Financial Condition.
|
Item 7.01
|
Regulation FD Disclosure.
|
Item 9.01
|
Financial Statements and Exhibits.
|
(d)
|
Exhibits
|
Date: August 18, 2014
|
By: /s/ Richard Fitzgerald
Name: Richard Fitzgerald
Title: Chief Financial Officer
|
Exhibit Number
|
Exhibit
|
Company Contact:
|
Investor Relations Contact:
|
Mr. Richard F. Fitzgerald
|
Hayden IR
|
Chief Financial Officer
|
Brett Maas
|
TechPrecision Corporation
|
Phone: 1-646-536-7331
|
Tel: 1-484-693-1702
|
Email: brett@haydenir.com
|
Email: Fitzgeraldr@techprecision.com
|
Website: www.haydenir.com
|
Website: www.techprecision.com
|
·
|
Net sales decreased 12% to $6.2 million compared to $7.1 million in the year-ago quarter but increased 72% from $3.6 million in revenues sequentially from fiscal Q4 of 2014.
|
·
|
Cost of goods sold included $0.4 million of contract losses recorded in the quarter ended June 30, 2014.
|
·
|
The Company is engaged in ongoing efforts to recover significant portions of the contract losses recorded within the fourth quarter of fiscal 2014 and the first quarter of fiscal 2015.
|
·
|
Due to the contract losses and lower revenue, gross profit was $0.2 million, or 3.5% gross margin, compared to gross profit of $0.4 million or 5.9% gross profit margin, in the year-ago quarter but up sequentially from a negative gross profit of $2.7 million in the fourth quarter of fiscal 2014.
|
·
|
Selling, general and administrative expenses decreased by approximately 25%, or $0.4 million, to $1.3 million from $1.7 million in the same quarter last year and sequentially decreased by 7% from $1.4 million for the fourth quarter of fiscal 2014.
|
·
|
The net loss was $1.3 million for the first quarter compared to a net loss of $1.4 million in the prior year first quarter and compared sequentially to a net loss of $4.1 million in the fourth quarter of fiscal 2014.
|
TECHPRECISION CORPORATION
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Three Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
Net sales
|
$
|
6,230,341
|
$
|
7,096,692
|
||||
Cost of sales
|
6,012,101
|
6,676,449
|
||||||
Gross profit
|
218,240
|
420,243
|
||||||
Selling, general and administrative
|
1,328,773
|
1,770,082
|
||||||
Loss from operations
|
(1,110,533
|
)
|
(1,349,839
|
)
|
||||
Other income (expense)
|
53
|
(7,552
|
)
|
|||||
Interest expense
|
(160,589
|
)
|
(70,127
|
)
|
||||
Interest income
|
--
|
3,613
|
||||||
Total other expense, net
|
(160,536
|
)
|
(74,066
|
)
|
||||
Loss before income taxes
|
(1,271,069
|
)
|
(1,423,905
|
)
|
||||
Income tax expense
|
--
|
--
|
||||||
Net loss
|
$
|
(1,271,069
|
)
|
(1,423,905
|
)
|
|||
Net loss per share (basic)
|
$
|
(0.05
|
)
|
$
|
(0.07
|
)
|
||
Net loss per share (diluted)
|
$
|
(0.05
|
)
|
$
|
(0.07
|
)
|
||
Weighted average number of shares outstanding (basic)
|
24,010,264
|
19,956,871
|
||||||
Weighted average number of shares outstanding (diluted)
|
24,010,264
|
19,956,871
|
June 30,
2014
|
March 31,
2014
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
886,888
|
$
|
1,086,701
|
||||
Accounts receivable, less allowance for doubtful accounts of $25,010 in 2014 and 2013
|
3,220,715
|
2,280,469
|
||||||
Costs incurred on uncompleted contracts, in excess of progress billings
|
4,696,038
|
5,258,002
|
||||||
Inventories- raw materials
|
242,179
|
293,326
|
||||||
Income taxes receivable
|
8,062
|
8,062
|
||||||
Current deferred taxes
|
991,096
|
991,096
|
||||||
Other current assets
|
457,248
|
461,245
|
||||||
Total current assets
|
10,502,226
|
10,378,901
|
||||||
Property, plant and equipment, net
|
6,327,789
|
6,489,212
|
||||||
Other noncurrent assets, net
|
400,493
|
105,395
|
||||||
Total assets
|
$
|
17,230,508
|
$
|
16,973,508
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY:
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
3,810,319
|
$
|
2,888,385
|
||||
Accrued expenses
|
3,815,754
|
3,893,028
|
||||||
Deferred revenues
|
651,923
|
1,461,689
|
||||||
Debt
|
5,584,459
|
4,169,771
|
||||||
Total current liabilities
|
13,862,455
|
12,412,873
|
||||||
Long-term debt, including capital leases
|
35,278
|
38,071
|
||||||
Noncurrent deferred taxes
|
991,096
|
991,096
|
||||||
Stockholders’ Equity:
|
||||||||
Preferred stock- par value $.0001 per share, 10,000,000 shares authorized,
|
||||||||
of which 9,890,980 are designated as Series A Preferred Stock, with
|
||||||||
1,927,508 and 2,477,508 shares issued and outstanding at June 30, 2014 and March 31, 2014,
|
||||||||
(liquidation preference of $549,340 and $706,090 at June 30, 2014 and March 31, 2014)
|
524,210
|
644,110
|
||||||
Common stock -par value $.0001 per share, authorized, 90,000,000 shares
|
||||||||
issued and outstanding, 24,669,958 shares at June 30, 2014
|
||||||||
and 23,951,004 at March 31, 2014
|
2,467
|
2,395
|
||||||
Additional paid in capital
|
6,293,864
|
6,105,211
|
||||||
Accumulated other comprehensive loss
|
(42,642
|
)
|
(55,097
|
)
|
||||
Accumulated deficit
|
(4,436,220
|
)
|
(3,165,151
|
)
|
||||
Total stockholders’ equity
|
2,341,679
|
3,531,468
|
||||||
Total liabilities and stockholders’ equity
|
$
|
17,230,508
|
$
|
16,973,508
|
TECHPRECISION CORPORATION
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months Ended June 30,
|
||||||||
2014
|
2013
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net loss
|
$
|
(1,271,069
|
)
|
$
|
(1,423,905
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
255,645
|
253,833
|
||||||
Stock based compensation expense
|
68,824
|
126,092
|
||||||
Provision for contract losses
|
366,951
|
687,088
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(940,242
|
)
|
521,202
|
|||||
Costs incurred on uncompleted contracts, in excess of progress billings
|
561,964
|
1,047,590
|
||||||
Inventories – raw materials
|
51,153
|
(10,175
|
)
|
|||||
Other current assets
|
4,001
|
138,184
|
||||||
Other noncurrent assets
|
(335,226
|
)
|
--
|
|||||
Accounts payable
|
921,933
|
(1,580,512
|
)
|
|||||
Accrued expenses
|
(431,784
|
)
|
(13,103
|
)
|
||||
Deferred revenues
|
(809,766
|
)
|
(151,355
|
)
|
||||
Net cash used in operating activities
|
(1,557,616
|
)
|
(405,061
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchases of property, plant and equipment
|
(54,093
|
)
|
(56,424
|
)
|
||||
Net cash used in investing activities
|
(54,093
|
)
|
(56,424
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Borrowings of long-term debt
|
4,150,000
|
--
|
||||||
Repayment of long-term debt
|
(2,738,105
|
)
|
(172,618
|
)
|
||||
Net cash provided by (used in) financing activities
|
1,411,895
|
(172,618
|
)
|
|||||
Effect of exchange rate on cash and cash equivalents
|
1
|
3,496
|
||||||
Net decrease in cash and cash equivalents
|
(199,813
|
)
|
(630,607
|
)
|
||||
Cash and cash equivalents, beginning of period
|
$
|
1,086,701
|
$
|
3,075,376
|
||||
Cash and cash equivalents, end of period
|
$
|
886,888
|
$
|
2,444,769
|
||||