The LGL Group, Inc. Reports Fourth Quarter 2024 Results
Rhea-AI Summary
LGL Group (NYSE American: LGL) reported its Q4 and full-year 2024 financial results. Q4 2024 saw revenues increase to $1.16M from $995K, with net income per diluted share rising to $0.04 from $0.02. Gross margin improved to 60.0% from 54.9% year-over-year.
For full-year 2024, revenues grew to $4.29M from $3.68M, with net income per diluted share increasing to $0.08 from $0.05. The company maintained strong liquidity with $41.6M in cash and marketable securities. Order backlog stood at $336K, up from $143K year-over-year.
Notable developments include P3 Logistic Solutions being selected for the DARPA Venture Horizons program, and warrants becoming exercisable at $4.75 per share through November 16, 2025. The acquisition of Morgan Group Holding Co. is expected to close in Q2 2025.
Positive
- Revenue growth: Q4 revenue up 16.3% YoY to $1.157M
- Full-year revenue increased 16.7% to $4.292M
- Q4 gross margin improved to 60.0% from 54.9%
- Strong liquidity position with $41.6M in cash and securities
- Order backlog increased 135% YoY to $336K
- Selection as DARPA Venture Horizons program partner
Negative
- Q4 income before taxes decreased by $84K to $219K
- Full-year gross margin declined to 53.0% from 53.9%
- Backlog decreased by $169K from Q3 2024
- Higher manufacturing costs and administrative expenses
News Market Reaction – LGL
On the day this news was published, LGL declined 3.20%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Orlando, Florida--(Newsfile Corp. - April 1, 2025) - The LGL Group, Inc. (NYSE American: LGL) ("LGL," "LGL Group," or the "Company") announced today its financial results for the fourth quarter and full fiscal year ended December 31, 2024.
Fourth Quarter 2024 Highlights
Total revenues increased
$162,000 t o$1,157,000 for the three months ended December 31, 2024 from$995,000 for the three months ended December 31, 2023Income from continuing operations before income taxes and after non-controlling interests decreased
$84,000 t o$219,000 for the three months ended December 31, 2024 from$303,000 for the three months ended December 31, 2023Net income per diluted share increased
$0.02 t o$0.04 for the three months ended December 31, 2024 from$0.02 for the three months ended December 31, 2023
Fiscal Year 2024 Highlights
Total revenues increased
$614,000 t o$4,292,000 for the fiscal year ended December 31, 2024 from$3,678,000 for the fiscal year ended December 31, 2023Income from continuing operations before income taxes and after non-controlling interests increased
$11,000 t o$609,000 for the fiscal year ended December 31, 2024 from$598,000 for the fiscal year ended December 31, 2023Net income per diluted share increased
$0.03 t o$0.08 for the fiscal year ended December 31, 2024 from$0.05 for the fiscal year ended December 31, 2023Cash and cash equivalents and marketable securities were
$41,602,000 as of December 31, 2024
"The growth in our Electronic Instruments business reflects our commitment to driving innovation and delivering high-performance instruments to our customers," said Marc Gabelli, Chairman and Co-Chief Executive Officer. "The yields on our U.S. Treasuries portfolio have remained strong despite the Federal Reserve rate cuts in 2024. Nevertheless, we continue to examine cost efficiencies including state of corporate domicile."
"We are also pleased to announce we were selected as a partner in the Defense Advanced Research Projects Agency ("DARPA") Venture Horizons program and shall seek such merchant investment opportunities to build value for shareholders," continued Mr. Gabelli.
Consolidated Results
Fourth Quarter 2024 net income available to LGL Group common stockholders was
The increase was partially offset by
higher Manufacturing cost of sales due to shipments of higher margin products; and
higher Engineering, selling and administrative driven by changes in headcount and higher wages and benefits.
Gross Margin
Gross margin increased to
Fiscal Year 2024 net income available to LGL Group common stockholders was
higher Net sales driven by higher product shipments; and
higher Net investment income driven by higher balances invested in United States Treasury money market funds.
The increase was partially offset by:
lower Net gains (losses) driven by lower mark-to-market movements and sales of Marketable securities;
higher Manufacturing cost of sales consistent with the overall growth in Net sales and sales of higher-cost products during Q3 2024; and
higher Engineering, selling and administrative driven by changes in headcount and higher wages and benefits.
Gross Margin
Gross margin decreased to
Backlog
As of December 31, 2024, our order backlog was
Liquidity
Our working capital metrics were as follows:
| As of December 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Current assets | $ | 42,642 | $ | 41,566 | ||||
| Less: Current liabilities | 904 | 474 | ||||||
| Working capital | $ | 41,738 | $ | 41,092 | ||||
As of December 31, 2024, LGL Group had investments (classified within Cash and cash equivalents and Marketable securities) with a fair value of
Warrants to Purchase Common Stock
On March 4, 2025, the warrants to purchase shares of LGL Group common stock granted on November 16, 2020 became exercisable, when the average VWAP of LGL Group common stock exceeded
Pursuant to the warrant agreement:
Five (5) warrants to purchase one (1) share of common stock
Common stock can be purchased at a strike price of
$4.75 per shareNo fractional shares will be issued
We expect to release updated exercise instructions in the coming weeks. All exercise notices and payment must be received by Computershare Trust Company, N.A. no later than 5:00 p.m. on November 16, 2025. Holders in street name should contact their broker, bank, or other intermediary for information on how to exercise warrants.
Acquisition of Morgan Group Holding Co. Update
LGL Group's acquisition of Morgan Group Holding Co. ("MGHL") is still in process and expected to close in Q2 2025.
New Merchant Investment Unit
P3 Logistic Solutions, Inc. ("P3"), a wholly owned subsidiary of LGL Group and led Mr. Gabelli, was selected as a partner in the DARPA Venture Horizons program, joining a network focused on advancing and scaling breakthrough defense-related technologies. This prestigious program establishes a national network of commercial partners to support the identification, acceleration, and transition of select technologies developed through DARPA programs. Through its participation, P3 will collaborate with DARPA to advance innovative capabilities with the potential to address critical national security challenges while fostering broader commercial impact.
About The LGL Group, Inc.
The LGL Group, Inc. ("LGL," "LGL Group," or the "Company") is a holding company engaged in services, merchant investment and manufacturing business activities. Precise Time and Frequency, LLC ("PTF") is a globally positioned producer of industrial Electronic Instruments and commercial products and services. Founded in 2002, PTF operates from our design and manufacturing facility in Wakefield, Massachusetts. Lynch Capital International LLC is focused on the development of value through investments.
LGL Group was incorporated in 1928 under the laws of the State of Indiana, and in 2007, the Company was reincorporated under the laws of the State of Delaware as The LGL Group, Inc. We maintain our executive offices at 2525 Shader Road, Orlando, Florida 32804. Our telephone number is (407) 298-2000. Our Internet address is www.lglgroup.com. LGL common stock and warrants are traded on the NYSE American under the symbols "LGL" and "LGL WS," respectively.
LGL Group's business strategy is primarily focused on growth through expanding new and existing operations across diversified industries. The Company's engineering and design origins date back to the early 1900s. In 1917, Lynch Glass Machinery Company ("Lynch Glass"), the predecessor of LGL Group, was formed and emerged in the late 1920s as a successful manufacturer of glass-forming machinery. Lynch Glass was then renamed Lynch Corporation ("Lynch") and was incorporated in 1928 under the laws of the State of Indiana. In 1946, Lynch was listed on the "New York Curb Exchange," the predecessor to the NYSE American. The Company has a had a long history of owning and operating various business in the precision engineering, manufacturing, and services sectors.
Cautionary Note Concerning Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, such as those pertaining to the Company's financial condition, results of operations, business strategy and financial needs. All statements other than statements of current or historical fact contained in this press release are forward-looking statements. The words "believe," "expect," "anticipate," "should," "plan," "will," "may," "could," "intend," "estimate," "predict," "potential," "continue" or the negative of these terms and similar expressions, as they relate to LGL Group, are intended to identify forward-looking statements.
These forward-looking statements are largely based on current expectations and projections about future events and financial trends that may affect the financial condition, results of operations, business strategy and financial needs of the Company. They can be affected by inaccurate assumptions, including the risks, uncertainties and assumptions described in the filings made by LGL Group with the Securities and Exchange Commission ("SEC"), including those risks set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as filed with the SEC on March 31, 2025. In light of these risks, uncertainties and assumptions, the forward-looking statements in this press release may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. When you consider these forward-looking statements, you should keep in mind these risk factors and other cautionary statements in this press release.
These forward-looking statements speak only as of the date of this press release. LGL Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
###
Contact:
The LGL Group, Inc.
Christopher Nossokoff
(407) 298-2000
info@lglgroup.com
The LGL Group, Inc.
Consolidated Statements of Operations
(Unaudited)
| Three Months Ended December 31, | Fiscal Year Ended December 31, | |||||||||||||||
| (in thousands, except share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenues: | ||||||||||||||||
| Net sales | $ | 653 | $ | 446 | $ | 2,226 | $ | 1,728 | ||||||||
| Net investment income | 503 | 549 | 2,071 | 1,566 | ||||||||||||
| Net gains (losses) | 1 | - | (5 | ) | 384 | |||||||||||
| Total revenues | 1,157 | 995 | 4,292 | 3,678 | ||||||||||||
| Expenses: | ||||||||||||||||
| Manufacturing cost of sales | 261 | 201 | 1,047 | 796 | ||||||||||||
| Engineering, selling and administrative | 651 | 465 | 2,546 | 2,236 | ||||||||||||
| Total expenses | 912 | 666 | 3,593 | 3,032 | ||||||||||||
| Income from continuing operations before income tax expense | 245 | 329 | 699 | 646 | ||||||||||||
| Income tax expense | 17 | 169 | 177 | 301 | ||||||||||||
| Net income from continuing operations | 228 | 160 | 522 | 345 | ||||||||||||
| Income (loss) from discontinued operations, net of tax | - | - | - | (28 | ) | |||||||||||
| Net income | 228 | 160 | 522 | 317 | ||||||||||||
| Less: Net income attributable to non-controlling interests | 26 | 26 | 90 | 48 | ||||||||||||
| Net income attributable to LGL Group common stockholders | $ | 202 | $ | 134 | $ | 432 | $ | 269 | ||||||||
| Income (loss) per common share attributable to LGL Group common stockholders: | ||||||||||||||||
| Basic (a): | ||||||||||||||||
| Income from continuing operations | $ | 0.04 | $ | 0.03 | $ | 0.08 | $ | 0.06 | ||||||||
| Income (loss) from discontinued operations | - | - | - | (0.01 | ) | |||||||||||
| Net income attributable to LGL Group common stockholders | $ | 0.04 | $ | 0.03 | $ | 0.08 | $ | 0.05 | ||||||||
| Diluted (a): | ||||||||||||||||
| Income from continuing operations | $ | 0.04 | $ | 0.02 | $ | 0.08 | $ | 0.06 | ||||||||
| Income (loss) from discontinued operations | - | - | - | (0.01 | ) | |||||||||||
| Net income attributable to LGL Group common stockholders | $ | 0.04 | $ | 0.02 | $ | 0.08 | $ | 0.05 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 5,352,937 | 5,352,937 | 5,352,937 | 5,352,937 | ||||||||||||
| Diluted | 5,577,062 | 5,381,685 | 5,553,823 | 5,352,937 | ||||||||||||
| (a) Basic and diluted earnings per share are calculated using actual, unrounded amounts. Therefore, the components of earnings per share may not sum to its corresponding total. | ||||||||||||||||
The LGL Group, Inc.
Consolidated Balance Sheets
(Unaudited)
| December 31, | ||||||||
| (in thousands) | 2024 | 2023 | ||||||
| Assets: | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 41,585 | $ | 40,711 | ||||
| Marketable securities | 17 | 22 | ||||||
| Accounts receivable, net | 493 | 356 | ||||||
| Inventories, net | 267 | 204 | ||||||
| Prepaid expenses and other current assets | 280 | 273 | ||||||
| Total current assets | 42,642 | 41,566 | ||||||
| Property, plant, and equipment, net | - | - | ||||||
| Right-of-use lease asset | 308 | 75 | ||||||
| Intangible assets, net | 36 | 57 | ||||||
| Deferred income taxes, net | 159 | 152 | ||||||
| Total assets | $ | 43,145 | $ | 41,850 | ||||
| Liabilities: | ||||||||
| Total current liabilities | 904 | 474 | ||||||
| Non-current liabilities | 1,001 | 694 | ||||||
| Total liabilities | 1,905 | 1,168 | ||||||
| Total LGL Group stockholders' equity | 39,230 | 38,762 | ||||||
| Non-controlling interests | 2,010 | 1,920 | ||||||
| Total stockholders' equity | 41,240 | 40,682 | ||||||
| Total liabilities and stockholders' equity | $ | 43,145 | $ | 41,850 | ||||
The LGL Group, Inc.
Segment Results
(Unaudited)
| Three Months Ended December 31, | ||||||||||||||||
| (in thousands) | 2024 | 2023 | $ Change | % Change | ||||||||||||
| Revenues: | ||||||||||||||||
| Electronic Instruments | $ | 653 | $ | 446 | $ | 207 | 46.4 | % | ||||||||
| Merchant Investment | 306 | 327 | (21 | ) | -6.4 | % | ||||||||||
| Corporate | 198 | 222 | (24 | ) | -10.8 | % | ||||||||||
| Total revenues | 1,157 | 995 | 162 | 16.3 | % | |||||||||||
| Expenses: | ||||||||||||||||
| Electronic Instruments | 530 | 458 | 72 | 15.7 | % | |||||||||||
| Merchant Investment | 164 | 64 | 100 | 156.3 | % | |||||||||||
| Corporate | 218 | 144 | 74 | 51.4 | % | |||||||||||
| Total expenses | 912 | 666 | 246 | 36.9 | % | |||||||||||
| Income (loss) from continuing operations | ||||||||||||||||
| Electronic Instruments | 123 | (12 | ) | 135 | 1,125.0 | % | ||||||||||
| Merchant Investment | 142 | 263 | (121 | ) | -46.0 | % | ||||||||||
| Corporate | (20 | ) | 78 | (98 | ) | -125.6 | % | |||||||||
| Income from continuing operations before income taxes | 245 | 329 | (84 | ) | -25.5 | % | ||||||||||
| Income tax expense | 17 | 169 | (152 | ) | -89.9 | % | ||||||||||
| Net income from continuing operations | 228 | 160 | 68 | 42.5 | % | |||||||||||
| Income from discontinued operations, net of tax | - | - | - | n/m | ||||||||||||
| Net income | 228 | 160 | 68 | 42.5 | % | |||||||||||
| Less: Net income attributable to non-controlling interests | 26 | 26 | - | 0.0 | % | |||||||||||
| Net income attributable to LGL Group common stockholders | $ | 202 | $ | 134 | $ | 68 | 50.7 | % | ||||||||
The LGL Group, Inc.
Segment Results
(Unaudited)
| Fiscal Year Ended December 31, | ||||||||||||||||
| (in thousands) | 2024 | 2023 | $ Change | % Change | ||||||||||||
| Revenues: | ||||||||||||||||
| Electronic Instruments | $ | 2,226 | $ | 1,728 | $ | 498 | 28.8 | % | ||||||||
| Merchant Investment | 1,228 | 869 | 359 | 41.3 | % | |||||||||||
| Corporate | 838 | 1,081 | (243 | ) | -22.5 | % | ||||||||||
| Total revenues | 4,292 | 3,678 | 614 | 16.7 | % | |||||||||||
| Expenses: | ||||||||||||||||
| Electronic Instruments | 1,983 | 1,576 | 407 | 25.8 | % | |||||||||||
| Merchant Investment | 381 | 216 | 165 | 76.4 | % | |||||||||||
| Corporate | 1,229 | 1,240 | (11 | ) | -0.9 | % | ||||||||||
| Total expenses | 3,593 | 3,032 | 561 | 18.5 | % | |||||||||||
| Income (loss) from continuing operations | ||||||||||||||||
| Electronic Instruments | 243 | 152 | 91 | 59.9 | % | |||||||||||
| Merchant Investment | 847 | 653 | 194 | 29.7 | % | |||||||||||
| Corporate | (391 | ) | (159 | ) | (232 | ) | -145.9 | % | ||||||||
| Income from continuing operations before income taxes | 699 | 646 | 53 | 8.2 | % | |||||||||||
| Income tax expense | 177 | 301 | (124 | ) | -41.2 | % | ||||||||||
| Net income from continuing operations | 522 | 345 | 177 | 51.3 | % | |||||||||||
| (Loss) income from discontinued operations, net of tax | - | (28 | ) | 28 | 100.0 | % | ||||||||||
| Net income | 522 | 317 | 205 | 64.7 | % | |||||||||||
| Less: Net income attributable to non-controlling interests | 90 | 48 | 42 | 87.5 | % | |||||||||||
| Net income attributable to LGL Group common stockholders | $ | 432 | $ | 269 | $ | 163 | 60.6 | % | ||||||||
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