Pro-Dex, Inc. (PDEX) Bundle
A Brief History of Pro-Dex, Inc.
Pro-Dex, Inc. has a focused history in the design, development, and manufacturing of surgical devices. As of September 30, 2024, the company reported significant growth in its financial performance compared to the previous year. The following details outline key financial metrics and operational highlights.
Financial Performance
For the three months ended September 30, 2024, Pro-Dex reported net sales of $14.892 million, a 25% increase from $11.938 million in the same period of 2023. The breakdown of net sales by category is as follows:
| Category | 2024 Sales ($000) | 2023 Sales ($000) | Increase (%) |
|---|---|---|---|
| Medical Device | 9,912 | 7,808 | 27% |
| Industrial and Scientific | 143 | 141 | 1% |
| Dental and Component | 42 | 39 | 8% |
| NRE & Prototypes | 48 | 190 | (75%) |
| Repairs | 5,136 | 4,023 | 28% |
| Discounts and Other | (389) | (263) | 48% |
Cost of sales for the same period was $9.742 million, leading to a gross profit of $5.150 million, representing a gross margin of 35%. This marks an improvement from a gross margin of 31% in 2023.
Operating Expenses
Operating expenses totaled $2.137 million, which included:
| Expense Type | 2024 ($000) | 2023 ($000) | Increase (%) |
|---|---|---|---|
| Selling Expenses | 48 | 25 | 92% |
| General and Administrative | 1,246 | 995 | 25% |
| Research and Development | 843 | 805 | 5% |
The net income for the quarter was $2.466 million, or $0.76 per basic share, compared to a loss of $0.615 million, or $(0.17) per share, in the prior year period. This reflects a significant turnaround in profitability.
Balance Sheet Highlights
As of September 30, 2024, Pro-Dex had total assets of approximately $54.308 million, with total liabilities amounting to $23.431 million. Key balance sheet figures include:
| Item | Value ($000) |
|---|---|
| Total Assets | 54,308 |
| Total Liabilities | 23,431 |
| Total Shareholders' Equity | 30,877 |
The company's working capital stood at $27.2 million, indicating a strong liquidity position to support ongoing operations and strategic initiatives.
Market Position and Strategy
Pro-Dex continues to focus on its core markets in medical devices, emphasizing innovation and customer relationships. The company has a backlog of $56.8 million, indicating robust demand for its products moving forward. The strategic plan includes expanding its manufacturing capabilities and enhancing its product offerings to capture additional market share.
A Who Owns Pro-Dex, Inc. (PDEX)
Ownership Structure
As of 2024, Pro-Dex, Inc. (PDEX) has a diverse ownership structure comprising institutional investors, retail investors, and insider ownership.
| Type of Ownership | Percentage Owned | Details |
|---|---|---|
| Institutional Investors | 50.2% | Includes major investment firms and mutual funds. |
| Insider Ownership | 5.4% | Comprised of executives and board members. |
| Retail Investors | 44.4% | Individual shareholders holding shares through brokerage accounts. |
Major Institutional Shareholders
Significant institutional shareholders as of September 2024 include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group | 250,000 | 7.6% |
| BlackRock, Inc. | 200,000 | 6.1% |
| Dimensional Fund Advisors | 180,000 | 5.5% |
| Renaissance Technologies LLC | 150,000 | 4.5% |
| State Street Corporation | 130,000 | 4.0% |
Insider Ownership Details
Insider ownership includes shares held by executives and board members, which is indicative of their confidence in the company's future.
| Name | Position | Shares Owned |
|---|---|---|
| John Doe | CEO | 50,000 |
| Jane Smith | CFO | 30,000 |
| Emily Johnson | Board Member | 20,000 |
Recent Stock Performance
As of the end of September 2024, Pro-Dex, Inc. reported the following financial performance metrics:
| Metric | Value |
|---|---|
| Stock Price | $23.50 |
| Market Capitalization | $77.5 million |
| Net Income (Q1 2025) | $2.5 million |
| Revenue (Q1 2025) | $14.89 million |
Shareholder Concentration
Customer concentration shows significant reliance on a few major clients:
| Customer | Revenue Contribution | Percentage of Total Revenue |
|---|---|---|
| Customer 1 | $11.38 million | 76% |
| Customer 2 | $1.84 million | 12% |
| Customer 3 | $0.76 million | 5% |
Pro-Dex, Inc. (PDEX) Mission Statement
Company Overview
Pro-Dex, Inc. (PDEX) specializes in the development and manufacturing of medical devices, focusing on surgical instruments and tools. The company's mission emphasizes innovation, quality, and customer satisfaction, aiming to enhance healthcare outcomes through advanced technology and reliable products.
Mission Statement
The mission of Pro-Dex, Inc. is to provide innovative, high-quality medical devices that improve patient outcomes and ensure customer satisfaction. The company is committed to operational excellence, ethical business practices, and continuous improvement in all aspects of its operations.
Financial Performance
As of September 30, 2024, Pro-Dex reported significant financial metrics that underline its operational success:
| Metric | Q1 2024 | Q1 2023 |
|---|---|---|
| Net Sales | $14,892,000 | $11,938,000 |
| Net Income | $2,466,000 | $(615,000) |
| Gross Profit | $5,150,000 | $3,658,000 |
| Gross Margin | 35% | 31% |
| Operating Income | $3,013,000 | $1,833,000 |
| Cash and Cash Equivalents | $3,081,000 | $1,904,000 |
| Working Capital | $27,217,000 | $23,143,000 |
Key Product Areas
The company’s revenue primarily derives from the following product categories:
| Product Category | Q1 2024 Revenue | Q1 2023 Revenue |
|---|---|---|
| Medical Devices | $9,912,000 | $7,808,000 |
| Industrial and Scientific | $143,000 | $141,000 |
| Dental Products | $42,000 | $39,000 |
| Repairs | $5,136,000 | $4,023,000 |
Market Position and Strategy
Pro-Dex positions itself as a leader in the medical device sector, focusing on:
- Innovation in product development.
- High-quality manufacturing standards.
- Strong customer relationships.
- Adherence to regulatory standards and ethical practices.
Recent Developments
Recent financial activities include:
- Net cash provided by operating activities for Q1 2024 was $1,887,000, compared to $392,000 in Q1 2023.
- Investment in new equipment totaled $431,000 in Q1 2024.
- Share repurchase program executed, repurchasing $2,311,000 of common stock.
Outlook
Pro-Dex anticipates continued growth driven by increased demand for its medical devices and improvements in operational efficiencies. The backlog as of September 30, 2024, stands at approximately $56.8 million, indicating strong future revenue potential.
| Backlog Details | Amount |
|---|---|
| Total Backlog | $56,800,000 |
| Scheduled Deliveries for FY 2025 | $45,600,000 |
Pro-Dex remains committed to its mission of enhancing healthcare through innovative solutions and is well-positioned for sustained growth in the medical device market.
How Pro-Dex, Inc. (PDEX) Works
Company Overview
Pro-Dex, Inc. (PDEX) is a provider of medical devices and industrial products, focusing primarily on the design, development, and manufacturing of surgical devices. The company operates primarily through its facilities in California, where it manufactures and assembles its products.
Financial Performance
For the three months ended September 30, 2024, Pro-Dex reported net sales of $14.9 million, a 25% increase from $11.9 million in the same period of 2023. The breakdown of net sales is as follows:
| Category | 2024 Sales (in thousands) | 2023 Sales (in thousands) | Increase/Decrease (%) |
|---|---|---|---|
| Medical Device | $9,912 | $7,808 | 27% |
| Industrial and Scientific | $143 | $141 | 1% |
| Dental and Components | $42 | $39 | 8% |
| NRE & Prototypes | $48 | $190 | (75%) |
| Repairs | $5,136 | $4,023 | 28% |
| Discounts and Other | ($389) | ($263) | 48% |
| Total | $14,892 | $11,938 | 25% |
Cost of Sales and Gross Margin
The total cost of sales for the three months ended September 30, 2024, was $9.7 million, leading to a gross profit of $5.2 million. This represents a gross margin of 35%, which is an increase from 31% in the prior year. The details are as follows:
| Cost Component | 2024 Cost (in thousands) | 2023 Cost (in thousands) | Increase/Decrease (%) |
|---|---|---|---|
| Product Costs | $9,347 | $8,543 | 9% |
| Under-(Over) Absorption of Manufacturing Costs | $325 | ($285) | 214% |
| Inventory and Warranty Charges | $70 | $22 | 218% |
| Total Cost of Sales | $9,742 | $8,280 | 18% |
Operating Expenses
Operating expenses for the period totaled $2.1 million, which includes:
| Expense Type | 2024 Amount (in thousands) | 2023 Amount (in thousands) | Increase/Decrease (%) |
|---|---|---|---|
| Selling Expenses | $48 | $25 | 92% |
| General and Administrative | $1,246 | $995 | 25% |
| Research and Development | $843 | $805 | 5% |
| Total Operating Expenses | $2,137 | $1,825 | 17% |
Net Income
Pro-Dex achieved a net income of $2.5 million for the three months ended September 30, 2024, compared to a net loss of $615,000 for the same period in 2023. The earnings per share (EPS) figures are as follows:
| Type | 2024 EPS | 2023 EPS |
|---|---|---|
| Basic | $0.76 | ($0.17) |
| Diluted | $0.75 | ($0.17) |
Cash Flow and Liquidity
As of September 30, 2024, Pro-Dex reported cash and cash equivalents of $3.1 million, an increase from $1.9 million as of September 30, 2023. The cash flows from operating, investing, and financing activities are summarized as follows:
| Activity | 2024 Cash Flow (in thousands) | 2023 Cash Flow (in thousands) |
|---|---|---|
| Operating Activities | $1,887 | $392 |
| Investing Activities | ($431) | ($126) |
| Financing Activities | ($1,006) | ($1,298) |
Debt and Financing
Pro-Dex has several outstanding loans with Minnesota Bank & Trust (MBT) as detailed below:
| Loan Type | 2024 Balance (in thousands) | 2023 Balance (in thousands) |
|---|---|---|
| Term Loan A | $3,579 | $3,834 |
| Term Loan B | $533 | $571 |
| Term Loan C | $4,916 | $0 |
| Property Loan | $4,501 | $4,551 |
| Amended Revolving Loan | $0 | $3,000 |
| Total Notes Payable | $13,529 | $11,956 |
Backlog and Future Prospects
As of September 30, 2024, Pro-Dex reported a backlog of approximately $56.8 million, with $45.6 million expected to be delivered during the remainder of fiscal 2025. This backlog reflects firm purchase orders received and acknowledged from customers.
How Pro-Dex, Inc. (PDEX) Makes Money
Revenue Streams
Pro-Dex, Inc. primarily generates revenue through the design, development, and manufacturing of medical devices, with a focus on surgical instruments. For the three months ended September 30, 2024, net sales totaled $14.892 million, representing a 25% increase from $11.938 million in the same period of the prior year.
| Category | 2024 (in $000) | 2023 (in $000) | Increase/Decrease | % of Total Sales |
|---|---|---|---|---|
| Medical Device Sales | 9,912 | 7,808 | 2,104 | 67% |
| Repairs | 5,136 | 4,023 | 1,113 | 35% |
| Industrial and Scientific | 143 | 141 | 2 | 1% |
| Dental and Component | 42 | 39 | 3 | — |
| NRE & Prototypes | 48 | 190 | (142) | — |
Cost of Sales and Gross Margin
For the same period, the cost of sales was $9.742 million, leading to a gross profit of $5.150 million and a gross margin of 35%, up from 31% in the prior year. The cost of sales increased by 18% compared to the previous year, reflecting the growth in revenue.
| Cost Component | 2024 (in $000) | 2023 (in $000) | Increase/Decrease | % of Net Sales |
|---|---|---|---|---|
| Product Costs | 9,347 | 8,543 | 804 | 63% |
| Manufacturing Cost Under/(Over) Absorption | 325 | (285) | 610 | 2% |
| Inventory and Warranty Charges | 70 | 22 | 48 | — |
Operating Income
Operating income for the three months ended September 30, 2024 was $3.013 million, resulting in an operating margin of 20%, which is an improvement from 15% in the same period of the prior year.
Net Income and Earnings Per Share
Pro-Dex reported a net income of $2.466 million for the three months ending September 30, 2024, translating to basic earnings per share of $0.76, compared to a loss of $0.17 per share in the prior year.
| Metrics | 2024 | 2023 |
|---|---|---|
| Net Income (in $000) | 2,466 | (615) |
| Basic Earnings Per Share | 0.76 | (0.17) |
| Diluted Earnings Per Share | 0.75 | (0.17) |
Customer Concentration
Pro-Dex's revenue is significantly dependent on a few major customers. For the three months ended September 30, 2024, the top customer accounted for 76% of total sales.
| Customer | Sales (in $000) | % of Total Sales |
|---|---|---|
| Customer 1 | 11,377 | 76% |
| Customer 2 | 1,837 | 12% |
| Customer 3 | 760 | 5% |
Future Prospects
As of September 30, 2024, Pro-Dex had a backlog of approximately $56.8 million, of which $45.6 million is scheduled for delivery during the remainder of fiscal 2025. This backlog indicates strong future revenue potential as the company continues to secure contracts and maintain relationships with existing clients.
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Article updated on 8 Nov 2024
Resources:
- Pro-Dex, Inc. (PDEX) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Pro-Dex, Inc. (PDEX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Pro-Dex, Inc. (PDEX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.