Yunhong Green CTI (YHGJ) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 were $4.35M, up 7% from $4.06M in Q2 2023; six-month sales rose 2% year-over-year to $9.25M.

• Net loss attributable to common stockholders was $470K for Q2 2024, compared to a $149K loss in Q2 2023; six-month net loss was $1.06M versus net income of $236K in the prior year.

• Cash at June 30, 2024 was $22K, down from $921K at year-end 2023; operating cash flow for the six months was $108K, a significant improvement from a $1.36M outflow in the prior year.

• Substantial doubt exists about the company's ability to continue as a going concern due to recurring losses and low cash reserves.

Financial highlights

• Gross margin for Q2 2024 was 16%, up from 13% in Q2 2023; six-month gross margin was 17% versus 18% in the prior year.

• Operating loss for Q2 2024 was $171K, improved from a $290K loss in Q2 2023; six-month operating loss widened to $523K from $278K.

• Interest expense increased to $236K in Q2 2024 from $155K in Q2 2023, reflecting higher market rates.

• Other income in Q2 2023 included $300K from Employee Retention Tax Credits, not repeated in 2024.

• Basic and diluted loss per share for Q2 2024 was $(0.02), compared to $(0.01) in Q2 2023.

Outlook and guidance

• Management plans to focus on the most profitable business elements and seek additional capital if needed.

• No assurances can be given that the company will successfully execute its plans or secure needed financing.