TechPrecision Corporation Reports First Quarter 2015 Financial Results

CENTER VALLEY, Pa., Aug. 18, 2014 /PRNewswire/ -- TechPrecision Corporation (OTCQB: TPCS) ("TechPrecision" or "the Company"), an industry leading global manufacturer of precision, large-scale fabricated and machined metal components and tested systems with customers in the naval/maritime, energy and precision industrial sectors, today reported financial results for the first quarter of fiscal year 2015, the period ended June 30, 2014.

First Quarter Recap

"TechPrecision continues to take the steps necessary to regain a stabilized and consistent revenue stream, higher gross margins, positive cash flow and a return to profitability," commented Len Anthony, TechPrecision's Executive Chairman. "I am encouraged by the sequential improvement we delivered in revenues compared to the fiscal fourth quarter of 2014, and we continue to target higher sales and production volumes to more fully exploit our capacity at Ranor. In comparison with last year's first quarter sales volume, an increase in naval/maritime sales was offset by lower sales volume with energy and precision industrial customers, even as our customer base remains committed to sourcing TechPrecision for its consistently high quality products."

Mr. Anthony continued, "Alexander Shen, who assumed the role of Ranor's President in June, has been focused on achieving rapid improvement in productivity and meeting our core customers' requirements and is working to establish a strategy that leads Ranor back to stability and profitability. Additionally, we continue to work on strengthening our liquidity and financial condition. On August 12, 2014, we executed a new forbearance agreement, effective as of August 1, 2014 and extending the new forbearance period until September 30, 2014 with our legacy bank as the previous forbearance agreement expired on July 31, 2014. We continue to pursue appropriate long-term financing facilities that will allow us flexibility in delivering our superior products to the Company's blue chip customer base. Opportunities to recover some of the contract losses incurred the last two quarters remains a key focus of our senior team."

First Fiscal Quarter 2015 Summary: Three Months Ended June 30

• Net sales decreased 12% to $6.2 million compared to $7.1 million in the year-ago quarter but increased 72% from $3.6 million in revenues sequentially from fiscal Q4 of 2014. 
• Cost of goods sold included $0.4 million of contract losses recorded in the quarter ended June 30, 2014.
• The Company is engaged in ongoing efforts to recover significant portions of the contract losses recorded within the fourth quarter of fiscal 2014 and the first quarter of fiscal 2015.
• Due to the contract losses and lower revenue, gross profit was $0.2 million, or 3.5% gross margin, compared to gross profit of $0.4 million or 5.9% gross profit margin, in the year-ago quarter but up sequentially from a negative gross profit of $2.7 million in the fourth quarter of fiscal 2014.
• Selling, general and administrative expenses decreased by approximately 25%, or $0.4 million, to $1.3 million from $1.7 million in the same quarter last year and sequentially decreased by 7% from $1.4 million for the fourth quarter of fiscal 2014.
• The net loss was $1.3 million for the first quarter compared to a net loss of $1.4 million in the prior year first quarter and compared sequentially to a net loss of $4.1 million in the fourth quarter of fiscal 2014.

Balance Sheet Summary

At June 30, 2014, TechPrecision had negative working capital of $3.4 million as compared with negative working capital of $2.0 million at March 31, 2014. As of June 30, 2014, the Company had $0.9 million in cash and cash equivalents compared to $1.1 million at March 31, 2014.

Teleconference Information

The Company will hold a conference call at 4:30 p.m. Eastern (U.S.) time on Monday, August 18, 2014. To participate in the live conference call, please dial 1-877-548-7901 five to 10 minutes prior to the scheduled conference call time.  International callers should dial 1-719-325-4789. When prompted by the operator, mention Conference Passcode 6955783.

A replay will be available for one week starting on Monday, August 18, 2014, at 7:30 p.m. Eastern Time. To access the replay, dial 1-877-870-5176 or 1-858-384-5517. When prompted, enter Conference Passcode 6955783.

The call will also be available live by webcast at TechPrecision Corporation's website, www.techprecision.com, and will also be available over the Internet and accessible at http://public.viavid.com/index.php?id=110539.

About TechPrecision Corporation

TechPrecision Corporation, through its wholly owned subsidiaries, Ranor, Inc., and Wuxi Critical Mechanical Components Co., Ltd., globally manufactures large-scale, metal fabricated and machined precision components and equipment. These products are used in a variety of markets including: alternative energy (Solar and Wind), medical, nuclear, defense, industrial, and aerospace to name a few. TechPrecision's goal is to be an end-to-end global service provider to its customers by furnishing customized and integrated "turn-key" solutions for completed products requiring custom fabrication and machining, assembly, inspection and testing. To learn more about the Company, please visit the corporate website at http://www.techprecision.com. Information on the Company's website or any other website does not constitute a part of this press release.

Safe Harbor Statement

This release contains certain "forward-looking statements" relating to the business of the Company and its subsidiary companies. These forward looking statements are often identified by the use of forward-looking terminology such as "believes," expects" or similar expressions. Such forward looking statements involve known and unknown risks and uncertainties that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including recurring operating losses and the availability of appropriate financing facilities impacting our ability to continue as a going concern, to change the composition of our revenues and effectively reduce operating expenses, the Company's ability to generate business from long-term contracts rather than individual purchase orders, its dependence upon a limited number of customers, its ability to successfully bid on projects, and other risks discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

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SOURCE TechPrecision Corporation