Twin Disc Gains After Q1 Profit, Strong Margins

Twin Disc, Inc TWIN reported first-quarter FY22 net sales growth of 3.4% year-over-year to $47.76 million, missing the consensus of $58.95 million.
The company said the impact of improving markets had been partially offset by significant global supply chain challenges, limiting sales revenue in the quarter.
EPS improved to $0.14 compared to $(0.30) in 1Q21.
The gross margin expanded by 720 bps to 28.2%. Income from operations improved to $3.24 million, compared to the loss of $(3.15) million a year ago.
Twin Disc generated cash from operating activities of $2.37 million, compared to cash used of $0.716 million a year ago.
The company's six-month backlog on September 24, 2021, was $86.1 million, a 22.5% increase since June 30, 2021.
EBITDA for the quarter was $5.38 million, compared to a negative $(1.58) million a year ago. Margin stood at 11.3%.
Twin Disc expects to invest $9 million - $11 million in capital expenditures during FY22.
"Demand across many of our global markets is improving, and I am encouraged by our strong first quarter performance as we worked tirelessly to navigate unprecedented global supply chain issues. We anticipate the supply chain challenges will persist through our second fiscal quarter before easing through the second half of the fiscal year," said CEO John H. Batten.
Price Action: TWIN shares are trading higher by 4.76% at $13.2 on the last check Friday.

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