Business
TWIN DISC, INC. ANNOUNCES FISCAL 2020 THIRD QUARTER FINANCIAL RESULTS
Third quarter sales up sequentially driven primarily by stable marine demandGenerated $5.3 million of cash from operating activities during the third
About this update from Twin Disc, Incorporated
[{"type":"text","content":"Third quarter sales up sequentially driven primarily by stable marine demandGenerated $5.3 million of cash from operating activities during the third quarterRecorded a non-cash goodwill impairment of $27.6 millionRecently implemented annualized expense reductions of $4.1 million in response to the COVID-19 crisis RACINE, Wis. , May 01, 2020 (GLOBE NEWSWIRE) -- Twin Disc, Inc. (NASDAQ: TWIN), today reported financial results for the fiscal 2020 third quarter ended March 27, 2020.\n “We are focused on successfully navigating the near-term challenges created by the unprecedented COVID-19 crisis and the significant decline in global oil and gas prices, while protecting the health and safety of our customers, employees, and communities,” commented John H. Batten, Chief Executive Officer. “Over five years ago we started pursuing strategies to limit the capital requirements of our business, improve manufacturing efficiency, reduce costs, and diversify our geographic footprint and end market concentration. These initiatives have created a more agile, efficient, and modern platform helping us withstand current global market trends.” “Unfortunately, gross profit was impacted by an additional $2.2 million expense for the continuation of a product performance issue related to one of our pressure pumping transmission models that was initially recorded in the fiscal 2020 first quarter. Due to high rig utilization, it was difficult for us to get rigs out of service for repair in the first calendar quarter, resulting in higher cost repairs than anticipated. With the recent decline in utilization, we expect the incident rate to improve significantly, allowing for less expensive repair costs. We continue to work with this customer and address their installed base of Twin Disc oil and gas transmission systems. Gross margin, adjusted for the product performance accrual, represents the third consecutive quarter of higher sequential gross margin reflecting our success improving efficiencies and overall profitability.” Mr. Batten continued: “Our six-month backlog at March 27, 2020, was $87.4 million, compared to $99.6 million at June 30, 2019 and $113.7 million at March 29, 2019. Stable marine and propulsion demand primarily associated with the 2018 Veth Propulsion acquisition is helping support our six-month backlog. Many of our global markets are ex...