SCI Engineered Materials, Inc. Reports First Quarter 2014 Results
COLUMBUS, OH--(Marketwired - May 6, 2014) - SCI Engineered
Materials, Inc. ("SCI") (OTCQB: SCIA), a global supplier and
manufacturer of advanced materials for PVD thin film applications
that works closely with end users and OEMs to develop innovative,
customized solutions, today reported its financial results for the
three months ended March 31, 2014.
Dan Rooney, Chairman, President and Chief Executive Officer,
said, "We are encouraged by increased signs of improvement in our
business; total revenue, backlog and bookings are trending
favorably compared to the same periods a year ago. The
profitable first quarter results reflect solid improvement led by
strong performance in our core photonics business with additional
contributions from sales to the thin film battery and solar
markets. Our ongoing research and development efforts to
develop innovative products for multiple end markets are gaining
traction. Product backlog at March 31, 2014, was more than
130% above the same date last year. Bookings remain strong,
particularly from customers in the photonics market.
Due to sequential increases in backlog over the past four
quarters the company is operating certain production equipment near
full capacity. Incremental expansion of our manufacturing is
necessary to enable us to continue to respond to our customers'
needs. During the past three months we ordered additional
production equipment that will be primarily used to manufacture
products for the photonics market. We are encouraged by recent
activity levels."
Mr. Rooney added, "We are sad to report that Dr. Robert J.
Baker, Jr., a member of SCI's Board of Directors since 1992 passed
away late last month. We were privileged to have benefited
from Dr. Baker's extensive industry knowledge and thoughtful
guidance over the past 22 years. The search for a new Board
member is underway."
Total revenue
Total revenue increased approximately 81% to $2,592,500 for the
first quarter 2014 from $1,433,602, for the same period in
2013. First quarter 2014 total revenue included no contract
research revenue versus $63,732 for the first quarter
2013. Sales to customers in the photonics market accounted for
the entire amount of the year-over-year increase. Backlog was
$3.7 million at March 31, 2014, compared to $3.4 million at
December 31, 2013 and $1.6 million on March 31, 2013.
Gross profit
Gross profit more than tripled to $586,773 for the first quarter
2014 from $173,599 for the same period of the prior year, due to
higher revenue and favorable product mix. Gross profit margin
increased to 22.6% of total revenue for the three months ended
March 31, 2014, from 12.1% the prior year.
Operating expense
Operating expense (marketing and sales, general and
administrative, and R&D expenses) were $542,437 for the first
quarter 2014 compared to $464,654 for the same period a year
ago. Of the approximately $78,000 increase in operating
expenses, about $42,000 of that amount was attributable to labor
offset from grants completed in 2013.
Income (Loss) Applicable to Common Stock
Income applicable to common stock was $21,234 or $0.01 per
diluted common share for the three months ended March 31, 2014,
compared to a loss applicable to common stock of $267,594 or $0.07
per basic share for the first quarter 2013.
EBITDA
EBITDA (Earnings before interest, income taxes, depreciation and
amortization) increased to $180,355 for the first quarter 2014 from
negative EBITDA of $89,953 for the first quarter 2013.
Adjusted EBITDA, which excludes non-cash stock based
compensation, was $223,828 for the three months ended March 31,
2014, versus negative EBITDA of $54,518 for the same period of the
prior year.
About SCI Engineered Materials, Inc.
SCI Engineered Materials is a global supplier and manufacturer
of advanced materials for PVD thin film applications that works
closely with end users and OEMs to develop innovative, customized
solutions. Additional information is available at
www.sciengineeredmaterials.com.
This press release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors
created thereby. Those statements include, but are not limited to,
all statements regarding intent, beliefs, expectations,
projections, customer guidance, forecasts, and plans of the Company
and its management, and specifically include statements concerning
the use of recently leased equipment primarily to manufacture
products for the photonics market and a thorough search for a new
Board member. These forward-looking statements involve
numerous risks and uncertainties, including, without limitation,
other risks and uncertainties detailed from time to time in the
Company's Securities and Exchange Commission filings, including the
Company's Annual Report on Form 10-K for the year ended December
31, 2013. One or more of these factors have affected, and could in
the future affect, the Company's projections. Therefore, there can
be no assurances that the forward-looking statements included in
this press release will prove to be accurate. In light of the
significant uncertainties in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by the Company, or any other persons,
that the objectives and plans of the company will be achieved. All
forward-looking statements made in this press release are based on
information presently available to the management of the Company.
The Company assumes no obligation to update any forward-looking
statements.
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SCI ENGINEERED MATERIALS, INC. |
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BALANCE SHEETS |
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ASSETS |
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March 31, |
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December 31, |
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2014 |
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2013 |
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(UNAUDITED) |
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Current Assets |
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Cash |
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$ |
909,456 |
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$ |
622,727 |
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Accounts receivable, less allowance for doubtful
accounts |
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758,635 |
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634,077 |
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Inventories |
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1,684,033 |
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1,709,740 |
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Prepaid expenses |
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299,247 |
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56,298 |
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Total
current assets |
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3,651,371 |
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3,022,842 |
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Property and Equipment, at cost |
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7,868,777 |
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7,573,929 |
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Less accumulated depreciation |
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(4,913,551 |
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(4,781,362 |
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2,955,226 |
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2,792,567 |
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Other Assets |
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62,784 |
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55,808 |
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TOTAL ASSETS |
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$ |
6,669,381 |
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$ |
5,871,217 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Current Liabilities |
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Short term debt |
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$ |
429,806 |
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$ |
351,689 |
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Accounts payable |
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624,221 |
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456,111 |
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Customer deposits |
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1,417,465 |
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1,105,655 |
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Accrued expenses |
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217,914 |
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191,487 |
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Total
current liabilities |
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2,689,406 |
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2,104,942 |
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Long term debt |
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1,184,481 |
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1,041,526 |
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Total
liabilities |
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3,873,887 |
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3,146,468 |
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Commitments and contingencies |
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Total Shareholders' Equity |
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2,795,494 |
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2,724,749 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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$ |
6,669,381 |
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$ |
5,871,217 |
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SCI ENGINEERED MATERIALS, INC. |
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STATEMENTS OF OPERATIONS |
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FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013 |
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(UNAUDITED) |
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(UNAUDITED) |
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2014 |
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2013 |
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Revenue |
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$ |
2,592,500 |
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$ |
1,433,602 |
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Cost of revenue |
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2,005,727 |
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1,260,003 |
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Gross profit |
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586,773 |
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173,599 |
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Operating expense |
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542,437 |
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464,654 |
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Income (loss) from operations |
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44,336 |
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(291,055 |
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Other (expense) income |
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(16,482 |
) |
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29,537 |
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Income (loss) before provision for income taxes |
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27,854 |
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(261,518 |
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Income tax expense |
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582 |
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38 |
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Net income (loss) |
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27,272 |
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(261,556 |
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Dividends on preferred stock |
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6,038 |
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6,038 |
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INCOME (LOSS) APPLICABLE TO COMMON SHARES |
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$ |
21,234 |
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$ |
(267,594 |
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Earnings per share - basic and diluted |
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Income (loss) per common share |
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Basic |
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$ |
0.01 |
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$ |
(0.07 |
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Diluted |
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$ |
0.01 |
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$ |
(0.07 |
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Weighted average shares outstanding |
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Basic |
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3,855,898 |
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3,829,898 |
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Diluted |
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3,855,898 |
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3,829,898 |
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SCI ENGINEERED MATERIALS, INC. |
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CONDENSED STATEMENTS OF CASH FLOWS |
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FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND
2013 |
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2014 |
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2013 |
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CASH PROVIDED BY (USED IN): |
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Operating activities |
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$ |
362,335 |
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$ |
(106,169 |
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Investing activities |
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(6,014 |
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42,877 |
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Financing activities |
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(69,592 |
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(154,496 |
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NET INCREASE (DECREASE) IN CASH |
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286,729 |
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(217,788 |
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CASH - Beginning of period |
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622,727 |
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630,819 |
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CASH - End of period |
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$ |
909,456 |
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$ |
413,031 |
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RECONCILIATION OF GAAP TO NON-GAAP MEASURES |
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FOR THE THREE MONTHS ENDED MARCH 31, 2014 AND 2013 |
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2014 |
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2013 |
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Net income (loss) |
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$ |
27,272 |
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$ |
(261,556 |
) |
Interest, net |
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15,978 |
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20,463 |
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Income taxes |
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582 |
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38 |
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Depreciation and amortization |
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136,523 |
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51,102 |
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EBITDA |
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180,355 |
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(89,953 |
) |
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Stock based compensation |
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43,473 |
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35,435 |
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Adjusted EBITDA |
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$ |
223,828 |
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$ |
(54,518 |
) |
Contact: Robert Lentz (614) 876-2000
Grafico Azioni SCI Engineered Materials (QB) (USOTC:SCIA)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni SCI Engineered Materials (QB) (USOTC:SCIA)
Storico
Da Giu 2023 a Giu 2024