Twin Disc Inc. Files 2024 10-K

TL;DR

Twin Disc filed its 2024 10-K. Financials look stable, but need deeper dive.

AI Summary

Twin Disc, Inc. filed its 10-K for the fiscal year ending June 30, 2024, reporting on its financial performance and business operations. The company, headquartered at 1328 Racine St, Racine, WI, is involved in the general industrial machinery and equipment sector. Key financial figures from the filing include total assets and liabilities, though specific revenue and net income figures are not detailed in this excerpt.

Why It Matters

This filing provides investors and stakeholders with a comprehensive overview of Twin Disc's financial health and strategic direction for the past fiscal year, influencing investment decisions.

Risk Assessment

Risk Level: medium — The filing is a standard annual report, but the lack of specific performance metrics in the provided excerpt necessitates a higher risk assessment until a full review is completed.

Key Numbers

• 30,000,000 — Total Assets (Reported as of fiscal year end 2024.)
• 14,632,802 — Current Liabilities (Reported as of fiscal year end 2024.)
• 637,778 — Operating Lease Right Of Use Asset (Reported as of fiscal year end 2024.)
• 814,734 — Operating Lease Liability Current (Reported as of fiscal year end 2024.)

Key Players & Entities

• TWIN DISC INC (company) — Filer
• 20240630 (date) — Fiscal Year End
• 1328 RACINE ST, RACINE, WI 53403 (address) — Business Address
• 2626384000 (phone_number) — Business Phone
• GENERAL INDUSTRIAL MACHINERY & EQUIPMENT (industry) — SIC Code Description

FAQ

Key Financial Figures

• $133.7 m — open orders for the next six months of $133.7 million, including the impact of the acqu
• $119.2 million — of Katsa, at June 30, 2024 compares to $119.2 million at June 30, 2023. Since orders are subj
• $2.6 million — ent costs charged to operations totaled $2.6 million and $2.5 million in fiscal 2024 and 202
• $2.5 million — to operations totaled $2.6 million and $2.5 million in fiscal 2024 and 2023, respectively.
• $9.8 million — engineering and development costs were $9.8 million and $8.7 million in fiscal 2024 and 202
• $8.7 million — development costs were $9.8 million and $8.7 million in fiscal 2024 and 2023, respectively.

Filing Documents

• twin20240630_10k.htm (10-K) — 2326KB
• ex_718036.htm (EX-21) — 13KB
• ex_718037.htm (EX-23.A) — 2KB
• ex_718038.htm (EX-24) — 18KB
• ex_718039.htm (EX-31.A) — 13KB
• ex_718040.htm (EX-31.B) — 13KB
• ex_718041.htm (EX-32.A) — 6KB
• ex_718042.htm (EX-32.B) — 6KB
• arrow01.jpg (GRAPHIC) — 1KB
• 0001437749-24-028638.txt ( ) — 14334KB
• twin-20240630.xsd (EX-101.SCH) — 119KB
• twin-20240630_cal.xml (EX-101.CAL) — 123KB
• twin-20240630_def.xml (EX-101.DEF) — 789KB
• twin-20240630_lab.xml (EX-101.LAB) — 689KB
• twin-20240630_pre.xml (EX-101.PRE) — 862KB
• twin20240630_10k_htm.xml (XML) — 3020KB

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

Management's Discussion and Analysis of Financial Condition and Results of Operations. 12 Item 7A. Quantitative and Qualitative Disclosure About Market Risk. 19 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 19 Item 9. Change In and Disagreements With Accountants on Accounting and Financial Disclosure. 19 Item 9A.

Controls and Procedures

Controls and Procedures. 19 Item 9B. Other Information. 20 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 20 PART III. Item 10. Directors, Executive Officers and Corporate Governance. 20 Item 11.

Executive Compensation

Executive Compensation. 21 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. 21 Item 13. Certain Relationships and Related Transactions, Director Independence. 21 Item 14. Principal Accounting Fees and Services. 22 PART IV. Item 15. Exhibits, Financial Statement Schedules. 22 Exhibit Index. 65 Signatures. 69 3 PART I

Business

Item 1. Business Twin Disc, Incorporated ("Twin Disc", or the "Company") was incorporated under the laws of the state of Wisconsin in 1918. Twin Disc designs, manufactures and sells marine and heavy duty offhighway power transmission equipment. The Company has manufacturing locations in the United States, Belgium, Finland, Italy, the Netherlands, and Switzerland. In addition to these countries, it has distribution locations in Singapore, China, Australia, New Zealand, and Japan. Products offered include: marine transmissions, azimuth drives, surface drives, propellers and boat management systems as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network. The products described above have accounted for more than 90% of revenues in each of the last three fiscal years. On May 31, 2024, the Company completed the acquisition of 100% of the outstanding common stock of Katsa Oy ("Katsa"). Based in Finland, Katsa is a European manufacturer of custom-designed, high-quality power transmission components and gearboxes for industrial and marine end-markets for a broad range of end market applications. Katsa also provides a wide range of after-sales services, including spare part deliveries, reverse engineering, modeling, and gearbox refurbishment. Most of the Company's products are machined from cast iron, forgings, cast aluminum and bar steel which generally are available from multiple sources and which are believed to be in adequate supply. The Company has applied for patents in both the United States and certain foreign countries on inventions made in the course of its de

Risk Factors

Item 1A. Risk Factors The Company's business involves various risk factors. The following information about these risks should be considered carefully together with other information contained in this report. The risks described below are not the only risks the Company faces. Additional risks not currently known, deemed immaterial or that could apply to any issuer may also result in adverse results for the Company's business. As a global Company, the Company is subject to currency fluctuations and a significant movement between the U.S. dollar and the euro exchange rate, in particular, could have an adverse effect on its profitability. Although the Company's financial results are reported in U.S. dollars, a significant portion of its sales and operating costs are realized in euros and other foreign currencies. The Company's profitability is affected by movements of the U.S. dollar against the euro and the other currencies in which it generates revenues and incurs expenses. Significant long-term fluctuations in relative currency values, in particular a significant change in the exchange rate between the U.S. dollar and the euro, could have an adverse effect on the Company's profitability and financial condition. The Company could be materially adversely affected by the effects of health pandemics or epidemics in regions where we or third parties on which we rely have business operations. In March 2020, the World Health Organization ("WHO") declared that a new strain of coronavirus that originated in Wuhan, China, and had rapidly spread around the world ("COVID-19") was a pandemic that posed significant risk to the international community. This outbreak contributed to shelter-in-place policies, unexpected factory closures, supply chain disruptions, and market volatility causing substantial declines in market capitalization, and occurring in the midst of an already challenging economic environment in some of our markets, most notably the oil and gas market. As a re

View Full Filing

View this 10-K filing on SEC EDGAR