SCI Engineered Materials, Inc. Reports 2024 Third Quarter and Year-to-Date Results
Rhea-AI Summary
SCI Engineered Materials (SCIA) reported its Q3 and YTD 2024 financial results. Despite stable order volume, Q3 revenue decreased to $3.88M from $7.7M year-over-year, primarily due to lower raw material costs. YTD revenue was $17.82M compared to $20.95M in 2023. Net income for Q3 2024 was $360,578 ($0.08 per share), down from $578,784 ($0.13 per share) in Q3 2023. The company maintained a strong financial position with $7.66M in cash and equivalents plus $2M in marketable securities, with no debt outstanding as of September 30, 2024.
Positive
- Strong cash position with $7.66M in cash/equivalents, up 35% from December 2023
- Zero debt outstanding as of September 30, 2024
- 50% increase in net interest income to $290,908 for YTD 2024
- Stable order volume maintained throughout first nine months
- Addition of new customers in target markets
Negative
- Q3 revenue declined 49.6% to $3.88M from $7.7M year-over-year
- YTD revenue decreased 15% to $17.82M from $20.95M
- Q3 net income dropped 37.7% to $360,578 from $578,784
- Operating expenses increased 15.1% YTD to $2.32M
- Gross profit decreased in Q3 to $1.09M from $1.39M
News Market Reaction
On the day this news was published, SCIA declined 7.72%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
COLUMBUS, OH / ACCESSWIRE / November 1, 2024 / SCI Engineered Materials, Inc. ("SCI") (OTCQB:SCIA), today reported financial results for the three months and nine months ended September 30, 2024.
Jeremy Young, President and Chief Executive Officer, commented "We achieved stable order volume throughout the first nine months of this year despite signs of slower economic activity. The 2024 third quarter revenue was impacted by a decline in the cost of a key raw material before it began to recover during late September. As the Company adapted to these developments, we also added new customers in our target markets. SCI's financial condition remains strong including
Revenue
Volume was similar for the 2024 year-to-date period compared to 2023. Revenue for the nine months ended September 30, 2024, was
Gross profit
Gross profit declined slightly to
Operating expenses
Operating expenses (general and administrative, research & development, and marketing and sales) were
Net interest income
Net interest income increased
Income taxes
Income tax expense was
Net income
Net income was
Cash and cash equivalents
Cash and cash equivalents were
Debt outstanding
The Company had no debt outstanding on September 30, 2024, following a finance lease payment during the 2024 third quarter. There was
About SCI Engineered Materials, Inc.
SCI Engineered Materials is a global supplier and manufacturer of advanced materials for PVD thin film applications who works closely with end users and OEMs to develop innovative, customized solutions. Additional information is available at www.sciengineeredmaterials.com or follow SCI Engineered Materials, Inc. at:
https://www.linkedin.com/company/sci-engineered-materials.-inc
https://www.facebook.com/sciengineeredmaterials/
https://x.com/SciMaterials
This press release contains certain 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, which are intended to be covered by the safe harbors created thereby. Those statements include, but are not limited to, all statements regarding intent, beliefs, expectations, projections, customer guidance, forecasts, plans of the Company and its management. These forward-looking statements involve numerous risks and uncertainties, including without limitation, other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K for the year ended December 31, 2023. One or more of these factors have affected and could affect the Company's projections in the future. Therefore, there can be no assurances that the forward-looking statements included in this press release will prove to be accurate. Due to the significant uncertainties in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company, or any other persons, that the objectives and plans of the Company will be achieved. All forward-looking statements made in this press release are based on information presently available to the management of the Company. The Company assumes no obligation to update any forward-looking statements.
SCI ENGINEERED MATERIALS, INC.
BALANCE SHEETS
ASSETS |
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| September 30, |
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| December 31, |
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| (UNAUDITED) |
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Current Assets |
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Cash and cash equivalents |
| $ | 7,656,046 |
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| $ | 5,673,994 |
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Investments - marketable securities, short term |
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| 509,478 |
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| 1,000,000 |
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Accounts receivable, less allowance for doubtful acccounts |
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| 1,015,680 |
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| 910,647 |
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Inventories |
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| 1,790,209 |
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| 4,654,398 |
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Prepaid purchase orders and expenses |
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| 593,446 |
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| 1,338,438 |
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Total current assets |
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| 11,564,859 |
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| 13,577,477 |
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Property and Equipment, at cost |
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| 9,818,388 |
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| 9,603,316 |
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Less accumulated depreciation |
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| (7,553,523 | ) |
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| (7,359,310 | ) |
Property and equipment, net |
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| 2,264,865 |
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| 2,244,006 |
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Investments, net - marketable securities, long term |
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| 1,499,000 |
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| 994,478 |
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Right of use asset, net |
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| 1,267,242 |
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| 592,170 |
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Other assets |
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| 67,627 |
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| 78,289 |
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Total other assets |
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| 2,833,869 |
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| 1,664,937 |
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TOTAL ASSETS |
| $ | 16,663,593 |
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| $ | 17,486,420 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities |
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Short term debt |
| $ | - |
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| $ | 49,149 |
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Operating lease, short term |
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| 160,728 |
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| 111,193 |
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Accounts payable |
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| 540,794 |
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| 385,489 |
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Customer deposits |
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| 1,735,251 |
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| 4,871,035 |
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Accrued expenses |
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| 576,932 |
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| 527,595 |
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Total current liabilities |
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| 3,013,705 |
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| 5,944,461 |
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Deferred tax liability |
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| 84,934 |
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| 69,846 |
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Operating lease, long term |
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| 1,108,533 |
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| 492,080 |
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Total liabilities |
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| 4,207,172 |
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| 6,506,387 |
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Total Shareholders' Equity |
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| 12,456,421 |
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| 10,980,033 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ | 16,663,593 |
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| $ | 17,486,420 |
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SCI ENGINEERED MATERIALS, INC.
STATEMENTS OF INCOME
(UNAUDITED)
| THREE MONTHS ENDED |
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| NINE MONTHS ENDED |
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| 2024 |
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| 2023 |
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| 2024 |
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| 2023 |
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Revenue |
| $ | 3,883,237 |
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| $ | 7,700,123 |
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| $ | 17,819,042 |
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| $ | 20,954,960 |
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Cost of revenue |
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| 2,793,944 |
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| 6,313,460 |
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| 13,935,694 |
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| 16,990,090 |
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Gross profit |
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| 1,089,293 |
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| 1,386,663 |
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| 3,883,348 |
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| 3,964,870 |
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General and administrative expense |
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| 476,572 |
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| 433,656 |
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| 1,426,406 |
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| 1,285,152 |
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Research and development expense |
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| 130,014 |
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| 121,554 |
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| 489,879 |
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| 372,407 |
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Marketing and sales expense |
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| 123,596 |
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| 121,244 |
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| 404,486 |
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| 358,058 |
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Income from operations |
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| 359,111 |
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| 710,209 |
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| 1,562,577 |
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| 1,949,253 |
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Interest income, net |
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| 107,391 |
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| 81,252 |
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| 290,908 |
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| 194,143 |
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Income before provision for income taxes |
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| 466,502 |
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| 791,461 |
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| 1,853,485 |
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| 2,143,396 |
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Income tax expense |
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| 105,924 |
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| 212,677 |
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| 421,077 |
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| 515,233 |
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NET INCOME |
| $ | 360,578 |
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| $ | 578,784 |
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| $ | 1,432,408 |
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| $ | 1,628,163 |
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Earnings per share - basic and diluted |
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Income per common share |
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Basic |
| $ | 0.08 |
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| $ | 0.13 |
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| $ | 0.32 |
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| $ | 0.36 |
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Diluted |
| $ | 0.08 |
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| $ | 0.13 |
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| $ | 0.31 |
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| $ | 0.36 |
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Weighted average shares outstanding |
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Basic |
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| 4,564,259 |
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| 4,530,207 |
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| 4,546,269 |
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| 4,528,524 |
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Diluted |
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| 4,568,863 |
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| 4,561,708 |
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| 4,550,820 |
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| 4,559,208 |
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SCI ENGINEERED MATERIALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(UNAUDITED)
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| 2024 |
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| 2023 |
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CASH PROVIDED BY (USED IN): |
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Operating activities |
| $ | 2,410,129 |
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| $ | 2,328,558 |
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Investing activities |
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| (378,928 | ) |
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| (402,573 | ) |
Financing activities |
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| (49,149 | ) |
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| (75,338 | ) |
NET INCREASE IN CASH |
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| 1,982,052 |
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| 1,850,647 |
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CASH - Beginning of period |
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| 5,673,994 |
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| 3,947,966 |
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CASH - End of period |
| $ | 7,656,046 |
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| $ | 5,798,613 |
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CONTACT:
Robert Lentz
(614-439-6006)
SOURCE: SCI Engineered Materials, Inc.
View the original press release on accesswire.com
FAQ
What was SCIA's revenue for Q3 2024?
How much cash did SCIA have as of September 30, 2024?
What was SCIA's net income per share for Q3 2024?
How much debt did SCIA have as of September 30, 2024?
