In This Article:
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Revenue: $89.3 million, a 23.2% year-over-year increase.
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Net Income: $900,000 or $0.07 per diluted share, compared to a net loss of $900,000 or $0.07 per diluted share in the prior year.
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Gross Profit Margin: Decreased to 24.1% from 28.3% in the prior year period.
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Gross Profit: Increased 5% to $21.7 million.
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EBITDA: Increased to $6.3 million, up 13.5% compared to the prior year.
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Operating Cash Flow: $4.3 million generated in the quarter.
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Net Debt: Increased $12.3 million to $9 million in the quarter.
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Cash Balance: $15.9 million, 24.3% lower than the prior year.
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Marine Propulsion Sales Growth: 23.9% year-over-year increase.
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Land-Based Transmission Sales Growth: 19.8% year-over-year increase.
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Industrial Segment Growth: 44.8% year-over-year increase.
Release Date: February 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Twin Disc Inc (NASDAQ:TWIN) reported a strong double-digit sales growth of 23.2% year over year, reaching $89.3 million for the second quarter.
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The integration of Katsa Oy has expanded Twin Disc Inc (NASDAQ:TWIN)'s global footprint and engineering capabilities, particularly in Europe and North America.
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The marine propulsion segment saw a 23.9% year-over-year sales increase, driven by strong demand for Veth products in both commercial applications and the luxury yacht market.
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The industrial segment grew 44.8% year over year, supported by the addition of Katsa and a rebound in Lufkin orders.
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Twin Disc Inc (NASDAQ:TWIN) maintained a healthy backlog across all end markets, indicating sustained demand and order momentum.
Negative Points
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Gross profit margin decreased to 24.1% from 28.3% in the prior year period, impacted by inventory write-downs and unfavorable product mix.
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Net income was only $900,000 or $0.07 per diluted share, compared to a net loss in the previous year, but still reflects challenges in profitability.
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Oil and gas exports were down, contributing to a 24% decline in the oil and gas business compared to the prior year.
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Net debt increased by $12.3 million to $9 million, primarily due to the cost of acquisition.
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Cash balance decreased by 24.3% compared to the prior year, reflecting financial pressures despite strong operating cash generation.
Q & A Highlights
Q: Can you quantify how much your oil and gas business was this quarter and how much it was down year-over-year? A: The oil and gas business was about a little under 8% of revenue for the quarter and down about 24% compared to the prior year Q2. - Jeff Newton, CFO