Cemtrex Reports Fourth Quarter and Full Fiscal Year 2024 Financial Results

GlobeNewswire Inc.

December 30, 2024 9:15PM GMT

Q4’24 Revenue Increased 9% to $18.1M, Fiscal Year 2024 Revenue Increased 13% to $66.9M

Brooklyn, NY, Dec. 30, 2024 (GLOBE NEWSWIRE) -- Cemtrex Inc. (NASDAQ: CETX, CETXP), an advanced security technology and industrial services company, has reported its financial and operational results for the fiscal fourth quarter and year ended September 30, 2024.

Key Highlights for Fiscal Year 2024

Revenue for the year ended September 30, 2024, increased 13% to $66.9 million, compared to revenue in the prior year of $59.4 million.
Revenue for Q4’24 increased 9% to $18.1 million, compared to revenue of $16.6 million for Q4’23.
AIS Revenue: Surged 39% to $34.8 million, capitalizing on strategic acquisitions and growing market demand.
Vicon Innovations: Launched NEXT™ Modular Camera System, integrating groundbreaking AI analytics and Hailo-15 edge AI processing, poised to redefine the surveillance industry.
Strategic Momentum: Secured a record-breaking $10.4 million order for Valerus surveillance system expansion

Management Commentary

Cemtrex Chairman and CEO, Saagar Govil, commented on the results: “Fourth quarter revenue grew 9% to $18.1 million, year over year, and for the full year increased 13% to $66.9 million, primarily driven by record demand for AIS products and services. Continued high demand for AIS products and services drove a 39% increase in revenue for fiscal 2024 to $34.8 million, offset by a 7% decrease in Vicon revenue due to the delay of multiple projects and a weaker industrywide demand for security solutions. Operating loss for the fiscal year 2024 was $5.3 million, compared to $1.5 million a year ago, mainly due to an increase in selling, general, and administrative costs.

“Our Security segment revenue in the fourth quarter grew 2% to $8.6 million despite the softening we’ve seen across the industry for the last several months. The team at Vicon is highly focused on the launch of new security technologies and products to expand its exciting portfolio and grow market share. Recently, Vicon unveiled NEXT™, a next generation modular camera platform that transforms how security integrators and end-users install, interact, and support their camera systems, primed for release in first calendar quarter of 2025. NEXT completely rethinks the traditional camera experience by reducing installation time from hours to minutes, leveraging the most powerful AI processing capabilities on the market, and deploying advanced onboard technologies and integrations.

“NEXT represents a strategic shift for Vicon. By integrating with other major video management systems, we’re expanding beyond our own ecosystem to deliver broader value in the security market. We have also integrated a disruptive AI analytic for detecting armed persons in surveillance footage to be included in NEXT Cameras. This novel detection feature is designed to function on edge devices, offering a low-cost, high-efficiency solution for assistance in the detection of armed persons in surveillance footage and enhancing the capabilities of video management systems to initiate specific responses upon detection.

“We believe that these investments in new technologies and products will enable Vicon to ramp sales in the coming year. We expect with the launch the NEXT Camera and the innovative new cloud security platform Anavio, along with new technologies and continued improvements to our core software platform Valerus, there is significant further opportunity to grow revenue and gross margin over the next several quarters including our most recent announcement of a record breaking $10.4 million order for a state government corrections facility to expand the customer’s Valerus surveillance security system with additional hardware, including enhanced storage infrastructure.

“For our Industrial services segment, AIS, the year was highlighted by new orders and record revenue growth of 39% to $34.8 million. A recent $6.7 million contract highlighted the success of AIS’s strategic entry into the wastewater infrastructure market through its acquisition of Heisey Mechanical in 2023 that significantly broadened its capabilities and expanded the markets we serve. Other projects set for completion in 2025 included several large-scale infrastructure contracts. These orders from leading companies reaffirm AIS’s optimistic growth outlook, building a pipeline of growth for 2025.

“Looking ahead, we believe 2024 has demonstrated the long-term potential of our two segments’ products and services that will drive further momentum in 2025. Vicon’s next generation cameras and software will continue to capture orders in the video surveillance market, which is expected to expand to $88.7 billion globally by 2030, according to Markets & Markets. AIS is set for another breakout year with strong order flow and an expanded market opportunity of leading companies and governmental departments. Taken together, we are confident that will deliver strong long-term value to our shareholders and drive sustainable growth for years to come,” concluded Govil.

Segment Highlights:

Vicon Industries:

Revenues for the year ended September 30, 2024, decreased 7% to $32.0 million compared to $34.4 million for the year ended September 30, 2023.
Revenues increased 2% to $8.6 million in Q4’24 compared to Q4’23.
Announced a record breaking $10.4 million order for a state government corrections facility in the mid-Atlantic region, expanding the customer’s Valerus surveillance security system with additional hardware, including enhanced storage infrastructure.
Secured a partnership with Hailo, an AI chip manufacturer known for its high-performance edge AI processors, to integrate the groundbreaking Hailo-15 System-on-a-Chip (SoC) into Vicon’s NEXT™ Modular Camera System.
Announced integration of an innovative Artificial Intelligence (AI) gun detection feature in its NEXT Cameras, which will be released in the first calendar quarter of 2025, marking a significant milestone in public safety and security technology.
Unveiled NEXT a next generation modular camera platform that transforms how security integrators and end-users install, interact, and support their camera systems.

Advanced Industrial Services:

Industrial Services segment revenues for the year ended September 30, 2024, increased 39% to $34.8 million compared to $25.0 million for the year ended September 30, 2023.
Industrial Services segment revenues for Q4’24 increased 17% to $9.6 million, on increased demand.
Awarded two project contracts totaling $6.7 million for upgrades at the Clearwater Road Wastewater Treatment Facility in Derry Township, Pennsylvania.
Awarded a $4.7 million contract for Trade in Services Agreement (TiSA) energy upgrades at Fort Indiantown Gap in Lebanon County, PA.
Received a $4.5 million contract for both Phase 1 and Phase 2 of the Department of General Services’ Elizabethtown Training Academy project.

Fourth Quarter and Full Year 2023 Financial Results Overview

Revenue for the full year of 2024 totaled $66.9 million, compared to revenue of $59.4 million for the full year of 2023, a 13% increase year over year. Revenues for the fourth quarter of 2024 were $18.1 million, compared to $16.6 million in the fourth quarter of 2023, an increase of 9%. The increase in revenue for the year was due to increased demand for the Company’s AIS products and services, offset by a decrease in security technology products under our Vicon brand.

The Security segment revenues for the years ended September 30, 2024, and 2023 were $32.0 million and $34.4 million, respectively, a decrease of 7%, due to decreased demand for security technology products under the Vicon brand. Industrial Services segment revenues for the full year 2024 increased by 39% to $34.8 million, up from $25.0 million in 2023, primarily due to the increase in demand for its products and services, and the additional revenue from the business related to the acquisition of Heisey Mechanical.

Gross profit for the year ended September 30, 2024, was $27.5 million, or 41% of revenues, as compared to gross profit of $25.7 million, or 43% of revenues, for the year ended September 30, 2023, mainly attributed to a decrease in gross margin percent at AIS due the Heisey acquisition. Fourth quarter gross profit of $7.6 million increased 11% from $6.8 million in the prior year quarter.

Total operating expenses for 2024 were $32.8 million compared to $27.2 million in 2023. Total operating expenses for the fourth quarter of 2024 were $7.9 compared to $6.8 in the fourth quarter of 2023. The increase in total operating expenses was primarily driven by increases in salaries and wages, general and administrative expenses, and research and development expenses related to the Security Segment’s development of proprietary technology and next generation solutions associated with security and surveillance systems software.

Operating loss for the full year of 2024 was $5.3 million as compared to an operating loss of $1.5 million for the full year of 2023. Operating loss for the fourth quarter of 2024 was $0.3 million as compared to an operating income of $.3 million for the fourth quarter of 2023. The operating loss was primarily due to overall increased general and administration expenses.

Net loss for the full year of 2024 was $7.7 million, as compared to a net loss of $9.2 million in 2023. Net income in the fourth quarter of 2024 totaled $4.4 million compared to a net loss of $1.2 million in the fourth quarter of 2023.

Cash, cash equivalents and restricted cash as of September 30, 2024 was $5.4 million, compared to $6.3 million as of September 30, 2023.

Inventories decreased to $7.0 million at September 30, 2024, from $8.7 million at September 30, 2023.

About Cemtrex
Cemtrex Inc. (CETX) is a company that owns two operating subsidiaries: Vicon Industries Inc and Advanced Industrial Services Inc.

Vicon Industries, a subsidiary of Cemtrex Inc., is a global leader in advanced security and surveillance technology to safeguard businesses, schools, municipalities, hospitals and cities. Since 1967, Vicon delivers mission-critical security surveillance systems, specializing in engineering complete security solutions that simplify deployment, operation and ongoing maintenance. Vicon provides security solutions for some of the largest municipalities and businesses in the U.S. and around the world, offering a wide range of cutting-edge and compliant security technologies, from AI-driven video analytics to fully integrated access control solutions. For more information visit www.vicon-security.com

AIS – Advanced Industrial Services, a subsidiary of Cemtrex, Inc., is a premier provider of industrial contracting services including millwrighting, rigging, piping, electrical, welding. AIS Installs high precision equipment in a wide variety of industrial markets including automotive, printing & graphics, industrial automation, packaging, and chemicals. AIS owns and operates a modern fleet of custom designed specialty equipment to assure safe and quick installation of your production equipment. Our talented staff participates in recurring instructional training, provided to ensure that the most current industry methods are being utilized to provide an efficient and safe working environment. For more information visit www.ais-york.com

For more information visit www.cemtrex.com.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission. All information in this press release is as of the date of the release and we undertake no duty to update this information unless required by law.

Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235
CETX@mzgroup.us
www.mzgroup.us

Cemtrex, Inc. and Subsidiaries
Consolidated Balance Sheets

	September 30,		September 30,
Assets		2024			2023
Current assets
Cash and cash equivalents	$	3,897,511		$	5,329,910
Restricted cash		1,522,881			1,019,652
Trade receivables, net		11,159,676			9,209,695
Trade receivables, net - related party		685,788			1,143,342
Inventory, net		6,988,529			8,739,219
Contract assets, net		985,207			1,739,201
Prepaid expenses and other current assets		1,456,687			2,112,022
Total current assets		26,696,279			29,293,041

Property and equipment, net		9,133,578			9,218,701
Right-of-use operating lease assets		1,933,378			2,287,623
Royalties receivable, net - related party		456,611			674,893
Note receivable, net - related party		-			761,585
Goodwill		3,708,347			4,381,891
Other		2,187,265			1,836,009
Total Assets	$	44,115,458		$	48,453,743

Liabilities & Stockholders' Equity
Current liabilities
Accounts payable	$	4,520,173		$	6,196,406
Accounts payable - related party		-			68,509
Sales tax payable		73,024			35,829
Revolving line of credit		3,125,011			-
Current maturities of long-term liabilities		4,732,377			14,507,711
Operating lease liabilities - short-term		832,823			741,487
Deposits from customers		408,415			57,434
Accrued expenses		2,034,352			2,784,390
Contract liabilities		1,254,204			980,319
Deferred revenue		1,297,616			1,583,406
Accrued income taxes		314,827			388,627
Total current liabilities		18,592,822			27,344,118
Long-term liabilities
Long-term debt		13,270,178			9,929,348
Long-term operating lease liabilities		1,159,204			1,607,202
Other long-term liabilities		274,957			501,354
Deferred Revenue - long-term		658,019			727,928
Warrant liabilities		5,199,436			-
Total long-term liabilities		20,561,794			12,765,832
Total liabilities		39,154,616			40,109,950

Commitments and contingencies		-			-

Stockholders' equity
Preferred stock , $0.001 par value, 10,000,000 shares authorized,
Series 1, 3,000,000 shares authorized, 2,456,827 shares issued and
2,392,727 shares outstanding as of September 30, 2024 and 2,293,016 shares issued and
2,228,916 shares outstanding as of September 30, 2023 (liquidation value of $10 per share)	2,457			2,293
Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at
September 30, 2024 and September 30, 2023		50			50
Common stock, $0.001 par value, 70,000,000 shares authorized,
14,176 shares issued and outstanding at September 30, 2024 and
50,000,000 shares authorized, 498 shares issued and outstanding at September 30, 2023		14			1
Additional paid-in capital		73,262,536			68,882,750
Accumulated deficit		(71,355,386	)		(64,125,895	)
Treasury stock, 64,100 shares of Series 1 Preferred Stock at September 30, 2024,
and September 30, 2023		(148,291	)		(148,291	)
Accumulated other comprehensive income		2,949,297			3,076,706
Total Cemtrex stockholders' equity		4,710,677			7,687,614
Non-controlling interest		250,165			656,179
Total liabilities and stockholders' equity	$	44,115,458		$	48,453,743

Cemtrex, Inc. and Subsidiaries
Consolidated Statements of Operations

	For the year ended
	September 30, 2024		September 30, 2023

Revenues
Security Revenue	$	32,021,899		$	34,359,470
Industrial Services Revenue		34,841,985			25,009,092
Revenues		66,863,884			59,368,562

Cost of revenues
Cost of revenues, Security		15,854,560			17,253,170
Cost of revenues, Industrial Services		23,531,120			16,429,566
Cost of revenues		39,385,680			33,682,736
Gross profit		27,478,204			25,685,826
Operating expenses
General and administrative		28,860,019			23,929,340
Research and development		3,357,455			3,267,994
Goodwill impairment		530,475			-
Total operating expenses		32,747,949			27,197,334
Operating loss		(5,269,745	)		(1,511,508	)
Other (expense)/income
Other(expense)/income, net		(622,558	)		476,693
Interest expense		(2,169,469	)		(4,966,298	)
Loss on excess fair value of warrants		(7,255,528	)		-
Changes in fair value of warrant liability		7,840,951			-
Total other expense, net		(2,206,604	)		(4,489,605	)
Net loss before income taxes		(7,476,349	)		(6,001,113	)
Income tax expense		(202,280	)		(394,272	)
Loss from Continuing operations		(7,678,629	)		(6,395,385	)
Income/(loss) from discontinued operations, net of tax		43,124			(2,838,053	)
Net loss		(7,635,505	)		(9,233,438	)
Less net loss in noncontrolling interest		(406,014	)		(36,563	)
Net loss attributable to Cemtrex, Inc. stockholders	$	(7,229,491	)	$	(9,196,875	)
(Loss)/income per share - Basic & Diluted
Continuing Operations	$	(17.96	)	$	(15,760.64	)
Discontinued Operations	$	0.11		$	(3.89	)
Weighted Average Number of Shares-Basic & Diluted		408,602			414

Cemtrex, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

	For the year ended
			September 30,
Cash Flows from Operating Activities		2024			2023

Net loss	$	(7,635,505	)	$	(9,233,438	)

Adjustments to reconcile net loss to net cash used by operating activities
Depreciation and amortization		1,328,741			1,026,075
(Gain)/loss on disposal of property and equipment		(19,133	)		69,601
Noncash lease expense		829,119			702,747
Goodwill impairment		530,475			-
Bad debt expense (recovery)		(79,006	)		(14,515	)
Loss on write-off of related party receivables		1,409,500			-
Share-based compensation		30,235			106,839
Shares issued to pay for services		169,000			215,800
Interest expense paid in equity shares		-			409,541
Accrued interest on notes payable		1,189,629			2,707,262
Non-cash royalty income		(53,126	)		(44,272	)
Amortization of original issue discounts on notes payable		-			1,264,111
Amortization of loan origination costs		72,533			-
Loss on excess fair value of warrants		7,255,528			-
Changes in fair value of warrant liability		(7,840,951	)		-

Changes in operating assets and liabilities net of effects from acquisition
of subsidiaries:
Trade receivables		(1,870,975	)		(3,795,964	)
Trade receivables - related party		(63,462	)		(1,099,070	)
Inventory		1,893,759			48,598
Contract assets		753,994			(290,123	)
Prepaid expenses and other current assets		733,168			(458,476	)
Other assets		(251,256	)		(336,264	)
Accounts payable		(818,733	)		3,145,469
Accounts payable - related party		-			49,376
Sales tax payable		37,195			15,734
Operating lease liabilities		(831,536	)		(577,446	)
Deposits from customers		350,981			(15,710	)
Accrued expenses		(690,038	)		475,798
Contract liabilities		273,885			393,960
Deferred revenue		(355,699	)		522,827
Income taxes payable		(71,285	)		293,779
Other liabilities		(226,397	)		(306,544	)
Net cash used by operating activities - continuing operations		(3,949,360	)		(4,724,305	)
Net cash provided by operating activities - discontinued operations		-			2,491,581
Net cash used by operating activities		(3,949,360	)		(2,232,724	)

Cash Flows from Investing Activities
Purchase of property and equipment		(1,297,346	)		(2,761,314	)
Proceeds from sale of property and equipment		63,953			26,205
Royalties on related party revenues		76,000			-
Acquisitions, Net of Cash Acquired		-			(2,793,291	)
Investment in MasterpieceVR		(100,000	)		(100,000	)
Net cash used by investing activities		(1,257,393	)		(5,628,400	)

Cash Flows from Financing Activities
Proceeds on revolving line of credit		33,071,722			-
Payments on revolving line of credit		(30,019,244	)		-
Payments on debt		(7,923,914	)		(1,533,059	)
Payments on Paycheck Protection Program Loans		(40,486	)		(30,286	)
Proceeds on bank loans		340,267			3,360,000
Proceeds from notes payable		-			240,000
Purchases of treasury stock		(69,705	)		-
Proceeds from offerings		10,035,292			-
Expenses on offerings		(995,333	)		-
Net cash provided by financing activities		4,398,599			2,036,655

Effect of currency translation		(121,016	)		700,355
Net decrease in cash, cash equivalents, and restricted cash		(808,154	)		(5,824,469	)
Cash, cash equivalents, and restricted cash at beginning of period		6,349,562			11,473,676
Cash, cash equivalents, and restricted cash at end of period	$	5,420,392		$	6,349,562


Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents	$	3,897,511		$	5,329,910
Restricted cash		1,522,881			1,019,652
Total cash, cash equivalents, and restricted cash	$	5,420,392		$	6,349,562


Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest	$	738,307		$	585,384
Cash paid during the period for income taxes, net of refunds	$	196,727		$	293,779

Supplemental Schedule of Non-Cash Investing and Financing Activities
Shares issued to pay notes payable	$	-		$	1,917,873
Financing of fixed asset purchase	$	28,331		$	-
Financing of building purchase	$	-		$	1,200,000
Financing of acquisition	$	-		$	2,400,000
Purchase of property and equipment through vendor financing	$	-		$	675,000
Noncash recognition of new leases	$	474,874		$	349,172

CONTACT: Investor Relations
Chris Tyson
Executive Vice President – MZ North America
Direct: 949-491-8235
CETX@mzgroup.us
www.mzgroup.us