The LGL Group, Inc. Reports Third Quarter 2016 Financial Results

The LGL Group, Inc. (NYSE MKT: LGL) (the "Company"), announced results for the three and nine months ended September 30, 2016.

Summary of Q3 2016 Results:
  • Revenues of $5.1 million, up 6.9% compared to Q3 2015
  • Net income of $0.01 per share compared to a net loss of ($0.07) per share in Q3 2015
  • Order backlog improved 13.8% to $11.0 million at September 30, 2016 from $9.7 million at June 30, 2016
  • Adjusted EBITDA was $0.06 per share, compared to $0.04 per share for the third quarter of 2015

The Company's Executive Chairman and CEO, Michael Ferrantino, Sr., said, "When we reported our Q2 results in August, I said in the third quarter we expect a slight decline in revenue and we did see a slight decline from $5.2 million in Q2 versus $5.1 million this quarter. I also stated that our health care costs could be a factor in maintaining profitability. I am very pleased to report that even with the increase in health care costs, our operational people were once again up for the challenge, and we are pleased to report another profitable quarter.

"Another very important metric for us is new order input and I am also pleased to report our sales and marketing team, along with our outside sales partners, brought in the highest level of new business since the second quarter of 2014. I also want to acknowledge that current backlog, which is also at a two year high, has the highest level of gross margin than we have seen in several years."

Mr. Ferrantino continued, "Finally, I am more convinced than ever the strategic initiatives we put in place two years ago are starting to pay off and therefore we do not intend to deviate from our plan. So far our financial performance speaks well to the organic portion of our strategy. In September, we acquired Precise Time and Frequency, which is a small step in our acquisition strategy. I will be reporting more on PTF in future quarters. I cannot end this release without complimenting our financial team who helped us get the PTF transaction completed while still paying great attention to our ongoing business, as evidenced by our cash balance which, after the $295,000 cash consideration paid to acquire PTF, is within $100k of our year end number of $5.6 million."

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