The following is a summary of the Nortech Systems Incorporated (NSYS) Q4 2023 Earnings Call Transcript:
Financial Performance:
Nortech Systems posted net sales of $139.3 million for the full year of 2023, up by nearly 4% from the previous year.
Gross profit for 2023 was $23.1 million or 16.6%, compared to $20.5 million or 15.3% in the prior year.
Net income in 2023 totaled $6.9 million or $2.38 per diluted share, compared to $2 million or $0.70 per diluted share in 2022.
Earnings before interest, tax, depreciation and amortization (EBITDA) for 2023 increased 38.2% to $8 million, compared with $5.8 million for 2022.
Business Progress:
Nortech has replaced their asset-backed line of credit with a cash flow backed $15 million senior secured revolving line of credit, offering more operational flexibility.
Emphasis for 2024 is on strengthening the balance sheet, aligning operations with market demands, generating consistent EBITDA growth and enhancing free cash flow.
The company is well-positioned to serve customers with near-shoring needs due to its manufacturing presence across U.S., Mexico, and China.
Introduction of expanded Beam Xtreme fiber optic technology (EBX) is seen as a growth driver within IoT applications.
Stabilizing supply chain and customer orders are expected to contribute to sales momentum in 2024.
More details: Nortech Systems IR
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