MINNEAPOLIS - Autoscope Technologies Corporation (OTCQX: AATC), a provider of above-ground detection technology for transportation systems, has reported its financial results for the first quarter ended March 31, 2024. The company announced a quarterly cash dividend of $0.13 per share, payable on May 28, 2024, to shareholders of record as of May 20, 2024.
The company's first-quarter royalties saw a 4% increase to $3.1 million compared to $3.0 million in the same period of the previous year. This growth is attributed to strong demand for the company's Autoscope Vision product in North America, bolstered by project awards and increased funding through the Bipartisan Infrastructure Law.
Operating expenses remained stable at $1.9 million, matching the previous year's figures. The income from operations rose to $1.1 million from $0.9 million a year earlier. Autoscope Technologies also reported a net income from continuing operations of $0.9 million, or $0.16 per share, an improvement over the $0.8 million, or $0.14 per share, reported in the prior year.
The company's cash and cash equivalents stood at $1.6 million as of March 31, 2024, down from $6.5 million at the end of the previous year. The decrease is primarily due to the use of cash for accounts payable related to inventory purchases and dividend payments. In the first quarter, the company paid $7.9 million in dividends, including a special cash dividend and a quarterly dividend.
Net cash from investing activities showed a significant increase, primarily from the sale of debt securities, which totaled $5.7 million, up from $2.1 million in the first quarter of 2023. These proceeds were used to fund a special one-time dividend paid in February 2024.
Andy Markese, Interim CEO of Autoscope Technologies, expressed confidence in the sustained market demand for their technology and the company's alignment with market trends towards safer and more efficient roads. Following the sale of its RTMS business, Autoscope Technologies has completed a workforce reduction in April, resulting in a one-time cost of approximately $37,000 and estimated annualized savings of $660,000.
InvestingPro Insights
Autoscope Technologies Corporation (AATC) has demonstrated a strong financial foundation, with a notable market cap of $36.12 million. The company's commitment to returning value to shareholders is evident through its high shareholder yield and a consistent increase in dividends, having raised its dividend for 4 consecutive years. This dedication to shareholder returns is further underscored by a significant dividend yield of 7.83% as of the dividend ex-date on February 26, 2024.
Investors looking at the valuation metrics will find AATC's P/E ratio appealing at 5.43, with an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at 8.06. The company's ability to manage its finances effectively is highlighted by its gross profit margin, which is an impressive 94.45%, indicating strong operational efficiency. Furthermore, AATC's cash flows are robust enough to sufficiently cover interest payments, providing reassurance about the company's financial health.
For those interested in the company's stock performance, AATC has enjoyed a high return over the last year, with a 117.28% price total return. This strong performance is complemented by a large price uptick over the last six months of 43.8%. Investors should note that the InvestingPro Fair Value estimate for AATC stands at $8.2, suggesting potential upside from the previous close price of $6.64.
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