Taylor Devices Inc. Files 2024 Annual Report

Ticker: TAYD · Form: 10-K · Filed: Aug 15, 2024 · CIK: 96536

Sentiment: neutral

Topics: annual-report, financials, manufacturing

TL;DR

TAYD 10-K filed. Full year results out. Check financials.

AI Summary

Taylor Devices Inc. filed its 10-K for the fiscal year ending May 31, 2024, reporting on its operations and financial condition. The company, based in North Tonawanda, NY, is involved in the manufacturing of shock absorbers and related products. The filing details its financial performance and strategic outlook for the upcoming fiscal year.

Why It Matters

This filing provides investors and stakeholders with a comprehensive overview of Taylor Devices Inc.'s financial health and operational performance for the past fiscal year, influencing investment decisions.

Risk Assessment

Risk Level: low — The filing is a standard annual report and does not indicate any immediate or unusual risks.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Taylor Devices Inc.?

Taylor Devices Inc. is involved in the manufacturing of shock absorbers and related products, as indicated by its SIC code 3569 for GENERAL INDUSTRIAL MACHINERY & EQUIPMENT, NEC.

What is the fiscal year end for Taylor Devices Inc.?

The fiscal year end for Taylor Devices Inc. is May 31, as stated in the filing.

Where is Taylor Devices Inc. headquartered?

Taylor Devices Inc. is headquartered at 90 Taylor Drive, North Tonawanda, NY 14120.

What is the SEC file number for this 10-K filing?

The SEC file number for this 10-K filing is 000-03498.

When was this 10-K filing submitted?

This 10-K filing was submitted on August 15, 2024.

Filing Stats: 4,414 words · 18 min read · ~15 pages · Grade level 13 · Accepted 2024-08-15 07:27:46

Key Financial Figures

Filing Documents

, Items 10-14

Part III, Items 10-14 FORM 10-K INDEX PART I PAGE Item 1. Business. 4 Item 1A. Risk Factors. 6 Item 1B. Unresolved Staff Comments. 6 Item 1C. Cybersecurity. 6 Item 2. Properties. 7 Item 3. Legal Proceedings. 7 Item 4. Mine Safety Disclosures. 7 PART II Item 5. Market For Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 8 Item 6. [Reserved]. 8 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 8 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 15 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 15 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. 15 Item 9A.

Controls and Procedures

Controls and Procedures. 15 Item 9B. Other Information. 16 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections . 16 PART III Item 10. Directors, Executive Officers and Corporate Governance. 16 Item 11.

Executive Compensation

Executive Compensation. 16 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 16 Item 13. Certain Relationships and Related Transactions, and Director Independence. 16 Item 14. Principal Accountant Fees and Services. 16 PART IV Item 15. Exhibits and Financial Statement Schedules . 17 Item 16. Form 10-K Summary . 19

SIGNATURES

SIGNATURES 20 3 PART I

Business

Item 1. Business. Taylor Devices, Inc. (referred to herein as the "Company," "we," "us" or "our") was incorporated in the State of New York on July 22, 1955 and is engaged in the design, development, manufacture and marketing of shock absorption, rate control, and energy storage devices for use in various types of machinery, equipment and structures. In addition to manufacturing and selling existing product lines, the Company continues to develop new and advanced technology products. Principal Products The Company manufactures and sells a group of very similar products that have many different applications for customers. These similar products are included in one of nine categories, namely, Seismic Dampers, Fluidicshoks, Crane and Industrial Buffers, Self-Adjusting Shock Absorbers, Liquid Die Springs, Vibration Dampers, Machined Springs, Custom Shock and Vibration Isolators, and Custom Actuators. Custom derivations of all of these products are designed and manufactured for many aerospace and defense applications. The following is a summary of the capabilities and applications for these products. Seismic Dampers are designed to mitigate the effects of earthquakes on structures and represent a substantial portion of the Company's sales. Fluidicshoks are small, extremely compact shock absorbers with up to 19,200 inch-pound capacities, produced in 12 standard sizes for primary use in the defense, aerospace and commercial industries. Crane and Industrial Buffers are larger versions of the Fluidicshoks with up to 10,890,000 inch-pound capacities, produced in more than 50 standard sizes for industrial applications on cranes and crane trolleys, truck docks, ladle and ingot cars, ore trolleys and train car stops. Self-Adjusting Shock Absorbers, which include versions of Fluidicshoks and crane and industrial buffers, automatically adjust to different impact conditions, and are designed for high cycle application primarily in heavy industry. Liquid Die Springs are used

Risk Factors

Item 1A. Risk Factors. Smaller reporting companies are not required to provide the information required by this item.

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments. None.

Cybersecurity

Item 1C. Cybersecurity Risk Management and Strategy In connection with the operation of the Company's business, we identify, assess and manage key risks that may affect the Company, including material risks from cybersecurity threats through our system security plan. Our system security plan is aligned with the 110 controls detailed in the NIST (SP) 800-171 and Department of Defense CMMC Level 2 guidelines for Cybersecurity . We have company-wide security policies, standards and controls that seek to incorporate best practices in security engineering, technology architecture and data protection. Our policies and controls include security measures designed to protect our systems against unauthorized access. We also maintain cybersecurity protection measures covering our information technology systems, including with respect to the protection of customer data, vendor data and employee information. We have also implemented specialized training and education programs to seek to guard against cybersecurity incidents, including company-wide communications and presentations, phishing simulations, focused training for specific roles and a general cybersecurity training program required for all employees. We engage third parties to perform regular reviews of our security controls which includes 24x7x365 security incident and event management (SIEM) as well as vulnerability services and penetration testing. Our processes to identify, assess and manage material risks from cybersecurity threats include risks associated with our use of third-party service providers, including cloud-based platforms. We oversee and identify cybersecurity risks from our third-party service providers in a number of ways, including appropriate due diligence in connection with new third-party service provider onboarding, robust security terms and conditions in our third-party service provider contracts and ongoing risk-based monitoring to ensure compliance with our cybersecurity standards. We bel

Properties

Item 2. Properties. The Company's production facilities occupy approximately six acres on Tonawanda Island in North Tonawanda, New York and are comprised of four interconnected buildings and two adjacent buildings, each of which is owned by the Company. The production facilities consist of a small parts plant (approximately 4,400 square feet), a large parts plant (approximately 13,500 square feet), and include a facility of approximately 7,000 square feet comprised of a test facility, storage area, pump area and the Company's general offices. One adjacent building is a 27,000 square foot seismic assembly and test facility. This building contains overhead traveling cranes to allow dampers to be built up to 45 ft. in length. It is also the site of three long bed damper test machines where seismic dampers manufactured by the Company will be tested at maximum force to satisfy customer specifications. Another adjacent building (approximately 2,000 square feet) is used as a training facility. These facilities total more than 54,000 square feet. Adjacent to these facilities, the Company has a remote test facility used for shock testing. This state-of-the-art test facility is 1,200 square feet. The Company owns two additional industrial buildings on nine acres of land in the City of North Tonawanda located 1.4 miles from the Company's headquarters on Tonawanda Island. Total area of the two buildings is 46,000 square feet. One building includes a machine shop containing custom-built machinery for boring, deep-hole drilling and turning of parts. Another is used for painting and packaging parts and completed units.

Legal Proceedings

Item 3. Legal Proceedings. Refer to Note 17, "Legal Proceedings," to the Notes to Consolidated Financial Statements for additional information regarding the Company's legal proceedings, which is incorporated by reference into this Item 3.

Mine Safety Disclosures

Item 4. Mine Safety Disclosures. Not applicable. 7 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Market Information The Company's Common Stock trades on the Nasdaq Stock Market under the symbol TAYD. Holders As of August 1, 2024, the number of record holders of the Company's Common Stock was 381. A substantial number of shares of the Company's Common Stock are held in street name. The Company believes that the total number of beneficial owners of its Common Stock is approximately 3,300. Dividends The Company does not pay a cash dividend and plans to retain cash in the foreseeable future to fund working capital needs.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations. Cautionary Statement The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Information in this Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in this Form 10-K that does not consist of historical facts are "forward-looking statements." Statements accompanied or qualified by, or containing, words such as "may," "will," "should," "believes," "expects," "intends," "plans," "projects," "estimates," "predicts," "potential," "outlook," "forecast," "anticipates," "presume," "assume" and "optimistic" constitute forward-looking statements and, as such, are not a guarantee of future performance. These statements involve factors, risks and uncertainties, the impact or occurrence of which can cause actual results to differ materially from the expected results described in such statements. Risks and uncertainties can include, among others: fluctuations in general business cycles and changing economic conditions; variations in timing and amount of customer orders; changing product demand and industry capacity; increased competition and pricing pressures; advances in technology that can reduce the demand for the Company's products, as well as other factors, many or all of which may be beyond the Company's control. Consequently, investors should not place undue reliance on forward-looking statements as predictive of future results. Except as required by law, the Company disclaims any obligation to release publicly any updates or revisions to the forward-looking statements herein to reflect any change in the Company's expectations with regard thereto, or any changes in events, conditions or circumstances on which any such statement is based. Application of Critical Accounting Policies and Estimates The Company's consolidated financial statements and accompanying not

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