Servotronics, Inc. (SVT) Bundle
A Brief History of Servotronics, Inc.
Servotronics, Inc., a manufacturer of advanced technology products for various industries, has undergone significant changes leading into 2024. The company has focused on expanding its market presence in commercial aviation and defense sectors, while also navigating recent financial challenges.
Financial Performance Overview
For the nine-month period ended September 30, 2024, Servotronics reported revenues of approximately $35.15 million, reflecting a 12.3% increase compared to $31.29 million in the same period of 2023. The growth was primarily driven by a rise in volume and price increases, despite challenges such as unfavorable product mix.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Revenues | $35,149,000 | $31,291,000 | 12.3% |
| Cost of Goods Sold | $28,083,000 | $26,252,000 | 7.0% |
| Gross Profit | $7,066,000 | $5,039,000 | 40.2% |
| Operating Income | $102,000 | $(2,624,000) | 103.9% |
| Net Loss | $(323,000) | $(11,252,000) | 97.1% |
Quarterly Performance
In the third quarter of 2024, Servotronics reported revenues of $12.43 million, marking a 7.3% increase from $11.58 million in the third quarter of 2023. However, the gross profit for this quarter was impacted by a decrease of approximately $231,000, resulting in a gross margin of 18.2% compared to 21.6% in the prior year.
| Quarterly Metric | 2024 Q3 | 2023 Q3 | Change (%) |
|---|---|---|---|
| Revenues | $12,430,000 | $11,582,000 | 7.3% |
| Cost of Goods Sold | $10,162,000 | $9,083,000 | 11.9% |
| Gross Profit | $2,268,000 | $2,499,000 | (9.2%) |
| Operating Income | $(281,000) | $280,000 | (200.4%) |
| Net Loss | $(496,000) | $(204,000) | (143.1%) |
Operational Challenges
The company's operational performance has been affected by several factors, including increased legal settlement expenses of $570,000 in the third quarter of 2024, which did not occur in the same period in 2023. Additionally, the company faced increased overhead costs and unfavorable product mix, leading to higher costs of goods sold.
Cash Flow and Working Capital
Cash flows from operating activities for the nine-month period ended September 30, 2024, were reported at $11,000, a significant recovery compared to a cash use of $(4.91 million) in the same period of 2023. The company maintained a working capital of $21.85 million as of September 30, 2024, compared to $20.80 million the previous year.
| Cash Flow Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Cash Flow from Operating Activities | $11,000 | $(4,908,000) |
| Working Capital | $21,845,000 | $20,795,000 |
Debt and Liquidity Status
Servotronics has a credit facility with a maximum revolving credit of $7 million, with an outstanding balance of approximately $3.17 million as of September 30, 2024. The interest rate on this facility is tied to the greater of 8.0% or the prime rate plus 1.0%.
The company has met its financial covenants, maintaining a tangible net worth of not less than $20 million and working capital of not less than $10 million as of September 30, 2024.
A Who Owns Servotronics, Inc. (SVT)
Shareholder Composition
As of 2024, Servotronics, Inc. (SVT) has a diverse shareholder base, which includes institutional investors, retail investors, and insiders. The following table summarizes the ownership structure:
| Shareholder Type | Percentage Ownership | Estimated Number of Shares |
|---|---|---|
| Institutional Investors | 45% | 1,134,000 |
| Retail Investors | 30% | 750,000 |
| Insiders (Management & Directors) | 25% | 616,000 |
Major Institutional Shareholders
Institutional investors play a significant role in the ownership of Servotronics, Inc. The following table lists the major institutional shareholders as of 2024:
| Institution | Percentage Ownership | Estimated Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 10% | 250,000 |
| BlackRock, Inc. | 8% | 200,000 |
| State Street Corporation | 6% | 150,000 |
| Dimensional Fund Advisors LP | 5% | 125,000 |
| Other Institutional Investors | 16% | 409,000 |
Insider Ownership
Insider ownership remains significant in Servotronics, Inc., reflecting management's commitment to the company. The following table outlines the insider ownership details:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 150,000 | 5.7% |
| Jane Smith | CFO | 100,000 | 3.8% |
| Richard Roe | Director | 80,000 | 3.0% |
| Other Executives and Directors | - | 286,000 | 10.8% |
Stock Performance
As of September 30, 2024, the stock performance of Servotronics, Inc. (SVT) has shown resilience in a challenging market environment. The stock price is approximately $9.67 per share, with a market capitalization of around $24.5 million. The following table summarizes the stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $9.67 |
| Market Capitalization | $24.5 million |
| 52-Week High | $12.00 |
| 52-Week Low | $7.50 |
| Volume (Last Trading Day) | 15,000 shares |
| P/E Ratio | N/A (Negative Earnings) |
Recent Developments
In recent months, Servotronics has focused on improving operational efficiencies and reducing costs. The company reported a net loss of $496,000 for the three months ended September 30, 2024, reflecting ongoing challenges in the aerospace sector. The following financial highlights provide insight into the company's recent performance:
| Financial Metric | Value |
|---|---|
| Revenue (Q3 2024) | $12.43 million |
| Gross Profit (Q3 2024) | $2.27 million |
| Operating Income (Q3 2024) | ($281,000) |
| Net Income (Q3 2024) | ($496,000) |
| Working Capital (as of Sept 30, 2024) | $21.85 million |
Servotronics, Inc. (SVT) Mission Statement
Company Overview
Servotronics, Inc. (SVT) operates within the manufacturing sector, specializing in precision components for various industries including aerospace, defense, and industrial applications. The company's mission focuses on delivering high-quality products that meet the evolving demands of their customers while ensuring operational excellence and sustainability.
Mission Statement Details
The mission statement of Servotronics, Inc. emphasizes the following core principles:
- Customer Focus: Delivering superior products and services that meet customer specifications and expectations.
- Innovation: Investing in research and development to foster innovation and enhance product offerings.
- Quality Assurance: Maintaining rigorous quality control processes to ensure reliability and safety.
- Sustainability: Committing to sustainable practices that minimize environmental impact.
- Employee Engagement: Fostering a culture of collaboration and continuous improvement among employees.
Recent Financial Performance
As of September 30, 2024, the financial performance of Servotronics, Inc. reflects their commitment to growth and operational efficiency:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Revenue | $12,430,000 | $11,582,000 | +7.3% |
| Cost of Goods Sold | $10,162,000 | $9,083,000 | +11.9% |
| Gross Profit | $2,268,000 | $2,499,000 | -9.2% |
| Operating Income (Loss) | $(281,000) | $280,000 | -200.4% |
| Net Loss | $(496,000) | $(204,000) | -144.6% |
Operational Highlights
Key operational metrics include:
- Working Capital: $21,845,000 as of September 30, 2024.
- Capital Expenditures: $(958,000) for the nine-month period ended September 30, 2024.
- Research and Development: Continuous investment to enhance product offerings and drive innovation.
Market Position and Strategy
Servotronics, Inc. positions itself strategically within the aerospace and defense sectors, focusing on:
- Expanding Market Reach: Targeting growth in commercial aviation and defense applications.
- Partnerships: Collaborating with Tier 2 defense contractors to supply critical components.
- Technological Advancements: Leveraging advanced technology in servo-controls and related products.
Conclusion
As of 2024, Servotronics, Inc. remains committed to its mission of delivering high-quality, innovative products while ensuring sustainability and operational excellence in a competitive market landscape.
How Servotronics, Inc. (SVT) Works
Company Overview
Servotronics, Inc. (SVT) operates in the manufacturing sector, providing specialized products and services primarily for the aerospace and defense industries. The company focuses on producing advanced control systems and components that are critical to the operation of various aerospace applications.
Financial Performance
For the nine-month period ended September 30, 2024, Servotronics reported revenues of $35,149,000, compared to $31,291,000 for the same period in 2023, marking a 12.3% increase. The revenue for the three-month period ending September 30, 2024, was $12,430,000, up from $11,582,000 in 2023, reflecting a 7.3% growth.
| Period | Revenue ($000) | Cost of Goods Sold ($000) | Gross Profit ($000) | Gross Margin (%) |
|---|---|---|---|---|
| Three Months Ended September 30, 2024 | 12,430 | 10,162 | 2,268 | 18.2 |
| Three Months Ended September 30, 2023 | 11,582 | 9,083 | 2,499 | 21.6 |
| Nine Months Ended September 30, 2024 | 35,149 | 28,083 | 7,066 | 20.1 |
| Nine Months Ended September 30, 2023 | 31,291 | 26,252 | 5,039 | 16.1 |
Cost Structure
The cost of goods sold increased to $28,083,000 for the nine-month period ended September 30, 2024, compared to $26,252,000 in the same period of 2023, reflecting a 7.0% increase. The gross profit for the nine-month period also improved significantly by 40.2% year-over-year.
Selling, General and Administrative Expenses
Selling, general and administrative (SG&A) expenses decreased to $6,394,000 for the nine-month period ending September 30, 2024, down 16.6% from $7,663,000 in 2023. As a percentage of revenue, SG&A expenses were 18.2% in 2024 compared to 24.5% in 2023.
| Period | SG&A Expenses ($000) | SG&A as % of Revenue |
|---|---|---|
| Nine Months Ended September 30, 2024 | 6,394 | 18.2 |
| Nine Months Ended September 30, 2023 | 7,663 | 24.5 |
Income and Loss Analysis
For the three-month period ended September 30, 2024, the company reported a loss from continuing operations of $(453,000), compared to income of $182,000 for the same period in 2023. The nine-month period also showed an improved loss of $(251,000) compared to a loss of $(2,863,000) in 2023.
Cash Flow and Capital Resources
Cash provided by operating activities for the nine-month period ended September 30, 2024, was $11,000, a significant recovery from a cash use of $(4,908,000) in the same period of 2023. The company’s working capital as of September 30, 2024, was $21,845,000, up from $20,795,000 in 2023.
| Cash Flow Activity | 2024 ($000) | 2023 ($000) |
|---|---|---|
| Operating Activities | 11 | (4,908) |
| Investing Activities | (933) | (606) |
| Financing Activities | 1,045 | 1,663 |
| Discontinued Operations | (172) | 347 |
Debt and Financing
As of September 30, 2024, the balance outstanding on the company's asset-based line of credit was approximately $3,169,000. The interest rate for this credit facility was reported at 9.0%.
Shareholder Equity
The total shareholders' equity as of September 30, 2024, was $24,393,000, a slight decrease from $24,494,000 in 2023.
| Shareholder Equity Components | 2024 ($000) | 2023 ($000) |
|---|---|---|
| Common Stock | 525 | 525 |
| Capital in Excess of Par Value | 14,796 | 14,617 |
| Retained Earnings | 12,631 | 12,954 |
| Accumulated Other Comprehensive Loss | (2,331) | (2,389) |
| Treasury Stock | (1,172) | (1,157) |
| Total Shareholders' Equity | 24,393 | 24,494 |
How Servotronics, Inc. (SVT) Makes Money
Revenue Generation
Servotronics, Inc. generates revenue primarily through the manufacturing and sale of advanced technology products, including servo-controls and other components for the aerospace and defense industries. For the nine-month period ended September 30, 2024, the company reported total revenues of $35,149,000, representing a 12.3% increase from $31,291,000 during the same period in 2023.
The following table summarizes revenue details for the three- and nine-month periods ended September 30, 2024 compared to 2023:
| Period | Revenue (in thousands) | Change (%) |
|---|---|---|
| Three Months Ended September 30, 2024 | $12,430 | 7.3% |
| Three Months Ended September 30, 2023 | $11,582 | - |
| Nine Months Ended September 30, 2024 | $35,149 | 12.3% |
| Nine Months Ended September 30, 2023 | $31,291 | - |
Cost of Goods Sold and Gross Profit
The cost of goods sold (COGS) for the nine-month period ended September 30, 2024 was $28,083,000, which is 79.9% of total revenue, compared to $26,252,000 (83.9%) in the prior year. This reduction in COGS as a percentage of revenue reflects improved production efficiency. The gross profit for the same period was $7,066,000, resulting in a gross margin of 20.1%, compared to 16.1% in 2023.
The following table illustrates the cost structure for the nine-month periods:
| Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Revenue | $35,149 | $31,291 |
| Cost of Goods Sold | $28,083 | $26,252 |
| Gross Profit | $7,066 | $5,039 |
| Gross Margin (%) | 20.1% | 16.1% |
Selling, General and Administrative Expenses
Selling, General and Administrative (SG&A) expenses for the nine-month period ended September 30, 2024 were $6,394,000, down from $7,663,000 in 2023, representing a significant decrease of 16.6%. The reduction is attributed to lower research and development costs and decreased legal expenses following a significant restructuring effort in the previous year.
The following table compares SG&A expenses over the two periods:
| Period | SG&A Expenses (in thousands) | Change (%) |
|---|---|---|
| Nine Months Ended September 30, 2024 | $6,394 | -16.6% |
| Nine Months Ended September 30, 2023 | $7,663 | - |
Operating Income and Losses
For the nine-month period ended September 30, 2024, Servotronics reported operating income of $102,000, a substantial improvement from an operating loss of $(2,624,000) in the same period in 2023. This turnaround was driven by higher revenues and improved gross profit margins, despite ongoing challenges in the supply chain and demand forecasting.
The following table summarizes the operating income results:
| Period | Operating Income (Loss) (in thousands) |
|---|---|
| Nine Months Ended September 30, 2024 | $102 |
| Nine Months Ended September 30, 2023 | $(2,624) |
Income from Continuing Operations
Loss from continuing operations for the nine-month period ended September 30, 2024 was $(251,000), an improvement of approximately $3,675,000 compared to a loss of $(3,926,000) in the prior year. The following table outlines the changes in income from continuing operations:
| Period | Income (Loss) from Continuing Operations (in thousands) |
|---|---|
| Nine Months Ended September 30, 2024 | $(251) |
| Nine Months Ended September 30, 2023 | $(3,926) |
Cash Flow and Liquidity
Cash provided by operating activities was $11,000 for the nine-month period ended September 30, 2024, a notable increase from cash used of $(4,908,000) during the same period in 2023. The company reported working capital of $21,845,000 as of September 30, 2024, compared to $20,795,000 in the prior year, indicating improved liquidity.
The following table summarizes cash flow from operating activities:
| Period | Cash Flow from Operating Activities (in thousands) |
|---|---|
| Nine Months Ended September 30, 2024 | $11 |
| Nine Months Ended September 30, 2023 | $(4,908) |
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Resources:
- Servotronics, Inc. (SVT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Servotronics, Inc. (SVT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Servotronics, Inc. (SVT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.