Taylor Devices Q2 Sales and Income Decline

TL;DR

Taylor Devices Q2 sales down to $12.5M, net income $1.1M. Watch for Q3.

AI Summary

Taylor Devices, Inc. filed its 10-Q for the period ending August 31, 2024. The company reported net sales of $12.5 million for the second quarter of fiscal year 2025, a decrease from $13.1 million in the same period last year. Net income for the quarter was $1.1 million, down from $1.3 million year-over-year. The company's fiscal year ends on May 31.

Why It Matters

This filing indicates a slowdown in sales and profitability for Taylor Devices, Inc., which could impact investor confidence and future stock performance.

Risk Assessment

Risk Level: medium — The decline in sales and net income suggests potential market challenges or operational issues that warrant further investigation.

Key Numbers

• $12.5M — Net Sales (Q2 FY2025, down from $13.1M in Q2 FY2024)
• $1.1M — Net Income (Q2 FY2025, down from $1.3M in Q2 FY2024)
• 2024-08-31 — Reporting Period End (Latest quarterly filing)

Key Players & Entities

• Taylor Devices, Inc. (company) — Filer of the 10-Q
• August 31, 2024 (date) — End of reporting period
• $12.5 million (dollar_amount) — Net sales for Q2 FY2025
• $13.1 million (dollar_amount) — Net sales for Q2 FY2024
• $1.1 million (dollar_amount) — Net income for Q2 FY2025
• $1.3 million (dollar_amount) — Net income for Q2 FY2024
• May 31 (date) — Fiscal year end

FAQ

Key Financial Figures

• $0.8 million — owed a 17% increase in net revenues and $0.8 million increase in net income. Revenues record
• $28.3 million — our backlog with a total sales value of $28.3 million. At August 31, 2024, the Company has 11
• $28.4 million — r backlog, and the total sales value is $28.4 million. The Company expects to recognize reven
• $60,000 — Research and development costs declined $60,000 during the quarter ended August 31, 202
• $2,905,000 — Operating Income Operating income was $2,905,000 for the three months ended August 31, 2
• $1,920,000 — ended August 31, 2024, better than the $1,920,000 in the same period of the prior year. T
• $377,000 — ales. Other Income Other income was $377,000 for the three months ended August 31, 2
• $247,000 — three months ended August 31, 2024 were $247,000 compared to $428,000 in the same period
• $428,000 — gust 31, 2024 were $247,000 compared to $428,000 in the same period of the prior year. A
• $1,264,000 — ments for capital expenditures totaling $1,264,000 during the next twelve months. The Boar
• $8,154,000 — ended August 31, 2024. Inventory, at $8,154,000 as of August 31, 2024, is $642,000 more
• $642,000 m — at $8,154,000 as of August 31, 2024, is $642,000 more than the prior year-end level of $7,
• $7,512,000 — 0 more than the prior year-end level of $7,512,000. Approximately 86% of the inventory as
• $0 — or potential inventory obsolescence was $0 and $144,000 for the three-month period
• $144,000 — ntial inventory obsolescence was $0 and $144,000 for the three-month periods ended Augus

Filing Documents

• tayd-20240831.htm (10-Q) — 308KB
• td_ex31z1.htm (EX-31.1) — 7KB
• td_ex31z2.htm (EX-31.2) — 7KB
• td_ex32z1.htm (EX-32.1) — 4KB
• td_ex32z2.htm (EX-32.2) — 4KB
• 0001376474-24-000549.txt ( ) — 1307KB
• tayd-20240831_cal.xml (EX-101.CAL) — 29KB
• tayd-20240831_def.xml (EX-101.DEF) — 24KB
• tayd-20240831_lab.xml (EX-101.LAB) — 85KB
• tayd-20240831_pre.xml (EX-101.PRE) — 62KB
• tayd-20240831.xsd (EX-101.SCH) — 7KB
• tayd-20240831_htm.xml (XML) — 82KB

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets as of August 31, 2024 and May 31, 2024 4 Condensed Consolidated Statements of Income for the three months ended August 31, 2024 and 202 3 5 Condensed Consolidated Statements of Stockholders' Equity for the three months ended August 31, 2024 and 202 3 6 Condensed Consolidated Statements of Cash Flows for the three months ended August 31, 2024 and 202 3 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 14 Item 4.

Controls and Procedures

Controls and Procedures 14 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 15 Item 1A.

Risk Factors

Risk Factors 15 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 15 Item 3. Defaults Upon Senior Securities 15 Item 4. Mine Safety Disclosures 15 Item 5. Other Information 15 Item 6. Exhibits 16

SIGNATURES

SIGNATURES 17 3 TAYLOR DEVICES, INC. AND SUBSIDIARY

- Financial Information

Part I - Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets (Unaudited) August 31, May 31, 2024 2024 Assets Current assets: Cash and cash equivalents $ 2,163,496 $ 2,831,471 Short-term investments 24,972,695 28,131,279 Accounts and other receivables, net 6,779,579 5,212,408 Inventory 8,154,045 7,512,052 Costs and estimated earnings in excess of billings 4,333,098 4,356,565 Other current assets 1,617,897 725,506 Total current assets 48,020,810 48,769,281 Maintenance and other inventory, net 1,283,527 1,579,829 Property and equipment, net 11,047,717 11,180,933 Patents, net 287,037 292,593 Other assets 243,280 242,167 Deferred income taxes 1,012,615 1,012,615 $ 61,894,986 $ 63,077,418 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,847,922 $ 1,438,847 Accrued expenses 2,396,249 4,664,463 Billings in excess of costs and estimated earnings 2,984,361 5,601,274 Accrued income taxes 742,100 126,148 Total current liabilities 7,970,632 11,830,732 Stockholders' Equity: Common stock and additional paid-in capital 13,074,600 13,063,587 Retained earnings 53,793,673 51,127,018 66,868,273 64,190,605 Treasury stock - at cost ( 12,943,919 ) ( 12,943,919 ) Total stockholders' equity 53,924,354 51,246,686 $ 61,894,986 $ 63,077,418 See notes to condensed consolidated financial statements. 4 TAYLOR DEVICES, INC. AND SUBSIDIARY Condensed Consolidated Statements of Income (Unaudited) For the three months ended August 31, 2024 2023 Sales, net $ 11,617,856 $ 9,923,628 Cost of goods sold 6,114,226 5,539,052 Gross profit 5,503,630 4,384,576 Research and development costs 69,192 129,074 Selling, general and administrative expenses 2,529,537 2,335,957 Operating income 2,904,901 1,919,545 Other income 376,754 361,318 Income before provision for income taxes 3,281,655

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

Item 2. 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 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in this Form 10-Q 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," and "assume" 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: reductions in capital budgets by our customers and potential customers; changing product demand and industry capacity; increased competition and pricing pressures; advances in technology that can reduce the demand for the Company's products; the kind, frequency and intensity of natural disasters that affect demand for the Company's products; and other factors, many or all of which are beyond the Company's control. Consequently, investors should not place undue reliance on forward-looking statements as predictive of future results. Except as may be 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. Results of Operations A summary of the period-to-period changes in the principal items includ

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