Techprecision Corp (TPCS) SEC Filing 8-K Material Event for the period ending Thursday, June 27, 2019

Techprecision Corp

CIK: 1799793 Ticker: TPCS

Exhibit 99.1


Company Contact: Investor Relations Contact:  
Mr. Thomas Sammons Hayden IR  
Chief Financial Officer Brett Maas  
TechPrecision Corporation Phone: 646-536-7331  
Phone: 978-883-5109 Email:  
Email: Website:  




TechPrecision Corporation Reports Financial Results for Fiscal 2019

Operating Income Jumps 90% Over Prior Fiscal Year


Westminster, MA – June 27, 2019 – TechPrecision Corporation (OTCQB: TPCS) (“TechPrecision” or “the Company”), an industry leading manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the defense, energy and precision industrial sectors, today reported financial results for the fourth quarter and the full year ended March 31, 2019. Net income was $0.5 million for the three months ended March 31, 2019 as compared to a net loss of $0.4 million in the same quarter a year ago. Net income was $1.1 million, or $0.04 per share, for the fiscal year ended March 31, 2019 compared with a net loss of $0.3 million, or $0.01 per share, for the prior fiscal year. Net sales for the fiscal 2019 fourth quarter and full year were $4.7 million and $16.7 million, respectively. Gross profit for the fourth quarter and full year of fiscal 2019 improved significantly over the same periods a year ago.


“This was another year of operational execution, resulting in a significant increase in net income,” stated Alexander Shen, TechPrecision’s Chief Executive Officer. “Our results benefited from efficient operational throughput and higher absorbed overhead as we managed a larger volume of manufacturing activity during the period. We expect to operate at or above current levels during the next fiscal year.”


The financial statements in this release for periods beginning after April 1, 2018 and all subsequent releases and reports reflect the adoption of the Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606), or ASC 606. Prior period amounts have not been restated and continue to be reported in accordance with the accounting standards in effect for those periods. (For more information regarding the adoption of ASC 606, refer to the Notes to the Consolidated Financial Statements in our Annual Report on Form 10K for the period ended March 31, 2019 filed with the Securities and Exchange Commission).


Fourth Quarter of Fiscal 2019 Financial Results


·Net sales were $4.7 million, a slight increase when compared to the same quarter a year ago.
·Gross profit was $1.5 million compared to $0.4 million in the same quarter last year, a significant increase, driven by a higher margin product mix and higher overhead absorption.
·Operating income was $832,000 compared to operating loss of $393,000 in the same period a year ago.
·Net income was $538,000, or $0.02 per diluted share, compared to net loss of $367,000, or $0.01 per diluted share, in the year-ago quarter.


Full Year Fiscal 2019 Financial Results


·Net sales were $16.7 million, an 11% decrease when compared to the same period a year ago.
·Gross profit was $4.6 million, a 15% increase compared to $4.0 million in the same period a year ago, primarily due to a higher margin product mix and higher overhead absorption.
·Selling, general and administrative expenses were $2.7 million, or 9% lower than the same period a year ago.
·Operating income was $1.8 million, compared to operating income of $1.0 million in the same period a year ago, a 90% increase.
·Net income was $1.1 million compared to a net loss of $266,000 in fiscal 2018.
·EBITDA was $2.6 million for the year ended March 31, 2019, compared to $1.7 million for the year ended March 31, 2018. Please refer to the reconciliation of EBITDA (a non-GAAP measure) to net income (a GAAP measure) in this release.





Financial Position


At March 31, 2019, TechPrecision had $2.0 million in cash. Fiscal 2019 was marked by an increase in customer project activity which resulted in more cash expended to ramp up production during the first half of the fiscal year. We expect that our available cash balance will begin to build again during the next operating quarter. Working capital was $6.3 million at March 31, 2019 compared to working capital of $4.9 million at March 31, 2018.


Income Taxes


For the year ended March 31, 2019, the Company recorded tax expense of $423,000. We did not make any significant tax payments for the year ended March 31, 2019, and do not expect to make any significant payments in Fiscal 2020, as we are able to utilize our federal net operating loss carryforward to offset taxable income. As of March 31, 2019, our federal net operating loss carryforward was approximately $8.3 million. U.S. tax laws limit the time during which these carryforwards may be applied against future taxes.


Teleconference Information


The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on June 27, 2019. To participate in the live conference call, please dial 1-844-602-0380 five to 10 minutes prior to the scheduled conference call time. International callers should dial 1-862-298-0970. When prompted, reference TechPrecision.


A replay will be available until July 27, 2019. To access the replay, dial 1-877-481-4010 or 1-919-882-2331. When prompted, enter Conference Passcode 49531. The call will also be available live by webcast at TechPrecision Corporation's website,, and will also be available over the Internet and accessible at:


About TechPrecision Corporation


TechPrecision Corporation, through its wholly owned subsidiary, Ranor, Inc., manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: defense, aerospace, nuclear, industrial, and medical. TechPrecision’s goal is to be an end-to-end service provider to its customers by furnishing customized solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at Information on the Company’s website or any other website does not constitute a part of this press release.


Safe Harbor Statement


This release contains certain “forward-looking statements” relating to the business of the Company and its subsidiary companies. All statements other than statements of current or historical fact contained in this release, including statements that express our intentions, plans, objectives, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “should,” “would” and similar expressions, as they relate to us, are intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections made by management about our business, our industry and other conditions affecting our financial condition, results of operations or business prospects. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, the forward-looking statements due to numerous risks and uncertainties. Factors that could cause such outcomes and results to differ include, but are not limited to, risks and uncertainties arising from: our reliance on individual purchase orders, rather than long-term contracts, to generate revenue; our ability to change the composition of our revenues and effectively reduce operating expenses; the availability of appropriate financing facilities impacting our operations, financial condition and/or liquidity; our ability to receive contract awards through competitive bidding processes; our ability to maintain standards to enable us to manufacture products to exacting specifications; our ability to enter new markets for our services; our reliance on a small number of customers for a significant percentage of our business; competitive pressures in the markets we serve; changes in the availability or cost of raw materials and energy for our production facilities; operating in a single geographic location; restrictions in our ability to operate our business due to our outstanding indebtedness; government regulations and requirements; pricing and business development difficulties; changes in government spending on national defense; our ability to make acquisitions and successfully integrate those acquisitions with our business; general industry and market conditions and growth rates; general economic conditions; and those risks discussed in “Item 1A. Risk Factors” and elsewhere in the Company’s Annual Report on Form 10-K, as well as those described in any other filings which we make with the SEC.


Any forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release, except as required by applicable law. Investors should evaluate any statements made by us in light of these important factors.


-- Tables Follow --









March 31,



March 31,


Current assets:          
Cash and cash equivalents  $2,036,646   $2,689,110 
Accounts receivable, net   1,010,443    1,446,982 
Contract assets   4,390,832    347,896 
Inventories   1,240,315    2,088,485 
Other current assets   498,059    450,540 
Total current assets   9,176,295    7,023,013 
Property, plant and equipment, net   4,860,609    5,202,448 
Deferred income taxes   2,004,346    2,046,298 
Other noncurrent assets, net   6,233    6,860 
Total assets  $16,047,483   $14,278,619 
Current liabilities:          
Accounts payable  $609,082   $345,705 
Accrued expenses   753,499    788,084 
Contract liabilities   740,947    180,706 
Current portion of long-term debt   822,105    766,354 
Total current liabilities   2,925,633    2,080,849 
Long-term debt, including capital leases   3,410,542    4,185,274 
Stockholders’ Equity:          
Common stock - par value $.0001 per share, 90,000,000 shares authorized,
29,234,594 and 28,824,593 shares issued and outstanding at March 31, 2019 and 2018
   2,923    2,882 
Additional paid in capital   8,693,106    8,561,995 
Accumulated other comprehensive income   21,940    24,236 
Retained earnings (accumulated deficit)   993,339    (576,617)
Total stockholders’ equity   9,711,308    8,012,496 
Total liabilities and stockholders’ equity  $16,047,483   $14,278,619 








   Three Months Ended
March 31,
   Twelve Months Ended
March 31,
   2019   2018   2019   2018 
Net sales  $4,712,154   $4,668,420   $16,702,558   $18,729,994 
Cost of sales   3,246,640    4,288,458    12,118,190    14,753,693 
Gross profit   1,465,514    379,962    4,584,368    3,976,301 
Selling, general and administrative   633,258    772,631    2,746,543    3,009,002 
Income (loss) from operations   832,256    (392,669)   1,837,825    967,299 
Other income   32,428    2,634    41,033    4,267 
Interest expense   (80,877)   (98,931)   (354,825)   (412,988)
Total other expense, net   (48,449)   (96,297)   (313,792)   (408,721)
Income (loss) before income taxes   783,807    (488,966)   1,524,033    558,578 
Income tax expense (benefit)   246,252    (121,761)   423,357    824,486 
Net income (loss)  $537,555   $(367,205)  $1,100,676   $(265,908)
Net income (loss) per share basic  $0.02   $(0.01)  $0.04   $(0.01)
Net income (loss) per share diluted  $0.02   $(0.01)  $0.04   $(0.01)
Weighted average number of shares outstanding basic   29,009,630    28,824,593    28,878,780    28,824,593 
Weighted average number of shares outstanding diluted   30,666,447    28,824,593    30,293,670    28,824,593 








   Years Ended March 31, 
   2019   2018 
Net income (loss)  $1,100,676   $(265,908)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:          
Depreciation   749,755    704,284 
Amortization of debt issue costs   55,247    70,041 
Loss on disposal of equipment   3,428    20,000 
Stock based compensation expense   137,352    303,175 
Change in contract loss provision   (143,105)   52,197 
Deferred income taxes   423,357    825,382 
Changes in operating assets and liabilities:          
Accounts receivable   436,539    75,794 
Contract assets   (2,334,418)   - 
Inventories   (263,622)   150,528 
Other current assets   13,322    (28,443)
Other noncurrent assets   (7,245)   (17,742)
Accounts payable   263,377    (19,603)
Accrued expenses   246,501    (151,401)
Contract liabilities   (149,855)   (462,125)
Net cash provided by operating activities   531,309    1,256,179 
Purchases of property, plant and equipment   (446,652)   (994,530)
Proceeds from disposition of equipment   35,309    80,000 
Net cash used in investing activities   (411,343)   (914,530)
Proceeds from exercise of stock options   182,400    - 
Common stock repurchased   (188,600)   - 
Repayment of capital lease obligation   (14,002)   (19,940)
Repayment of long-term debt   (752,352)   (697,536)
Net cash used in financing activities   (772,554)   (717,476)
Effect of exchange rate on cash and cash equivalents   124    (1,219)
Net decrease in cash and cash equivalents   (652,464)   (377,046)
Cash and cash equivalents, beginning of period   2,689,110    3,066,156 
Cash and cash equivalents, end of period  $2,036,646   $2,689,110 







Reconciliation of EBITDA to Net Income (loss)


The following table provides a reconciliation of EBITDA to net income, the most directly comparable U.S. GAAP measure reported in our condensed consolidated financial statements:


(dollars in thousands) 

March 31,



March 31,





Net income (loss)  $1,101   $(266)  $1,367 
Income tax expense   423    824    (401)
Interest expense (1)   355    413    (58)
Depreciation   750    704    46 
EBITDA  $2,629   $1,675   $954 


(1)Includes amortization of debt issue costs.






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Techprecision Corp provided additional information to their SEC Filing as exhibits

Ticker: TPCS
CIK: 1328792
Form Type: 8-K Corporate News
Accession Number: 0001144204-19-032721
Submitted to the SEC: Thu Jun 27 2019 4:16:05 PM EST
Accepted by the SEC: Thu Jun 27 2019
Period: Thursday, June 27, 2019
Industry: Fabricated Structural Metal Products
  1. Earnings Release
  2. Financial Exhibit

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