In This Article:
Release Date: February 19, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Firan Technology Group Corp (FTGFF) achieved record revenues in 2024, with Q4 revenues totaling $45 million and full-year sales exceeding $162 million.
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Total bookings reached $184.5 million, marking a 25% increase over 2023, and the year-end backlog stood at $122.4 million, a 26% rise from the previous year.
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Adjusted net earnings increased by 47% to $10.3 million, and the company maintained a strong balance sheet with net debt of just $0.7 million after significant investments.
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Successful integration of 2023 acquisitions contributed to revenue growth, with Circuits Minnetonka achieving a 16% revenue increase.
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FTGFF secured a $17 million contract to supply cockpit interface assemblies for the C-919 aircraft, with production spanning from late 2024 through 2026.
Negative Points
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The new US administration's commitment to implementing tariffs on imports could negatively impact FTGFF, as a significant portion of sales to US customers originate from sites in Canada or China.
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Boeing's production was down in 2024 due to safety incidents and a machinist strike, impacting FTGFF's potential business with them.
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The aerospace throttle facility experienced a six-week work stoppage early in the year, negatively impacting results.
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Gross margin percentage decreased slightly from 29.1% in 2023 to 27.3% in 2024, despite an increase in gross margin dollars.
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The aerospace segment saw some margin compression in Q4, attributed to the messy process of getting new high-value assemblies into production.
Q & A Highlights
Q: Can you discuss how close FTG was to capacity across its sites during the quarter? A: Brad Bourne, President and CEO, explained that while FTG has significant capacity available in terms of plant and equipment, staffing is a constraint. The company is not fully staffed but is running efficiently. There is room to grow revenue by adding staff, which would be beneficial financially.
Q: What is the current headcount compared to the previous quarter? A: Brad Bourne noted that FTG ended the year with just under 700 employees, but he did not recall the exact headcount at the end of the third quarter. He mentioned that overtime was used significantly in Q4 to meet record numbers.
Q: How is the sales pace in the first quarter compared to the fourth quarter? A: Brad Bourne stated that Q1 is typically challenging compared to Q4 due to the holiday season, which reduces production days. However, they expect Q1 2025 to be above Q1 2024 levels.