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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