Servotronic Stock Price, News & Analysis

Servotronics, Inc. (NYSE American – SVT) reported a strong performance for Q1 2022, achieving consolidated revenues of $11.2 million, a 23.3% increase from $9.1 million in Q1 2021. Net income was $325,000, or $0.13 per diluted share, while gross margin improved to 23.6% of revenue, up from 11.0% a year earlier. Revenue growth was primarily driven by the Advanced Technology Group, which saw a 26.9% increase to $9.2 million. Growth is expected to continue into Q2 2022, attributed to increasing order volumes and efficiencies in operations.

The Board of Servotronics, Inc. (NYSE American – SVT) has appointed two new independent directors, Evan Wax and Karen L. Howard, and named Christopher M. Marks as the new non-executive Chairman. These changes, effective April 25, 2022, come alongside the resignation of Jason T. Bear as a director. The Board also terminated its shareholder rights plan, previously set to expire on October 15, 2022, triggering the acceleration of its expiration to April 26, 2022. The appointments aim to enhance governance and prepare the company for future growth and shareholder value.

Servotronics, Inc. (NYSE American – SVT) has appointed William F. Farrell, Jr. as its new Chief Executive Officer, effective April 25, 2022. Farrell, who also joins the company's Board of Directors, brings over 30 years of experience from Moog Inc., where he managed businesses with revenues up to $600 million. The Board emphasizes Farrell's integrity and experience in driving growth in advanced manufacturing. Servotronics' previous CEO responsibilities were held by COO James C. Takacs since June 2021. The company aims to strengthen its market position and explore new opportunities under Farrell's leadership.

Servotronics, Inc. (NYSE American – SVT) reported net income of $4.1 million, or $1.68 per diluted share, for 2021, a substantial increase from $100,000, or $0.04, in 2020. The growth is attributed to $9.6 million in income from PPP loan forgiveness and a focus on improving Advanced Technology Group sales. 2021 total revenues were $40.6 million, down from $49.8 million in 2020, primarily due to pandemic impacts. The company anticipates first quarter 2022 revenue growth, driven by ATG performance and new long-term contracts.

Servotronics, Inc. (NYSE American - SVT) announced it received a shareholder nomination for board director candidates for its 2022 annual meeting. The company is reviewing the communication from Star Equity Fund, LP, an affiliate of Star Equity Holdings. Shareholders are advised to wait for definitive proxy materials before making voting decisions. A proxy statement will be filed with the SEC, including essential information. Servotronics operates through two groups: ATG, focusing on servo controls, and CPG, specializing in cutlery and edged products.

Servotronics, Inc. (NYSE American - SVT) announced the resignation of Kenneth D. Trbovich as CEO and President, following an internal investigation that cited grounds for termination. The Board of Directors will search for a new permanent CEO while Chief Operating Officer James C. Takacs will oversee operations. The investigation stemmed from a civil complaint alleging misconduct, which revealed willful malfeasance. Although Trbovich remains a director, he will not be renominated for future Board elections. The company is focused on maintaining its operational standards amid leadership changes.

Servotronics, Inc. (NYSE American - SVT) reported net income of $3,238,000 or $1.34 per share for Q3 2021, contrasting with a net loss of $1,782,000 in Q3 2020. Revenue increased by 6.0% to $10,915,000, driven by higher sales volume and prices. Gross margin rose to $1,772,000 from a negative $165,000. However, SG&A expenses surged by 29.8% to $2,724,000, largely due to legal fees, including $1,890,000 for litigation. The company anticipates future growth despite the ongoing impacts of COVID-19 on operations.

Servotronics, Inc. (NYSE American – SVT) reported its Q2 2021 results, posting a net income of $1,186,000 ($0.49 per share) compared to $965,000 ($0.41 per share) in Q2 2020. Revenues fell by 25.7% to $10,028,000, primarily due to lower sales volume affected by COVID-19. Gross margin decreased to (38.0)% versus 23.9% in the previous year. Selling expenses rose by 26.4%, significantly impacting operations. The company also recognized a $1,914,000 employee retention credit. A PPP loan forgiveness application was submitted but remains under review.

Servotronics, Inc. (NYSE American – SVT) announced its financial results for the first quarter ended March 31, 2021, reporting net income of $541,000, a significant decline from $1,898,000 in the same period of 2020. Revenues fell to $9,060,000 from $15,448,000, primarily due to reduced customer orders in the aviation sector influenced by COVID-19. The ATG division experienced a revenue drop of approximately $7,055,000, while the CPG saw modest increases. The company utilized a $1,730,000 employee retention credit to mitigate losses, adjusting operations to maintain key personnel amid ongoing uncertainty.