Company Summary - The LGL Group, Inc.

Overview

• Type: Holding company engaged in services, merchant investment, and manufacturing activities.
• Founded: 1928 (originally incorporated in Indiana), reincorporated in Delaware in 2007.
• Headquarters: Orlando, Florida (2525 Shader Road).
• Stock Trading: Listed on NYSE American under symbols "LGL" (common stock) and "LGL WS" (warrants).
• Number of Employees:
  • 7 full-time manufacturing and engineering employees (Wakefield, MA)
  • 2 corporate and investment employees in Greenwich, CT
  • 1 corporate and investment employee in Chicago, IL
• Key Business Segments:
  • Electronic Instruments: Designs, manufactures, and markets high-performance frequency and time reference standards.
  • Merchant Investment: Invests in and manages various investment vehicles, including special purpose vehicles (SPVs).

Business Focus

• Electronic Instruments: Primarily supplies products for timing and synchronization in industries like satellite communication, broadcast systems, electric utilities, network synchronization, and metrology.
  • Acquired Precise Time and Frequency, LLC in 2016.
  • Products include frequency standards, time standards, time code distribution amplifiers, redundancy switches, and network time protocol (NTP) servers.
• Merchant Investment: Focuses on undervalued assets, often through securities investments and control/acquisition of companies.
  • Investments include funds, special purpose vehicles, and direct holdings.
  • Managed investments with a fair value of approximately $41.2 million as of December 31, 2024, including investments in U.S. Treasury funds.
  • Made investments in entities such as LGL Systems Acquisition Corporation, which had a business combination with IronNet Cybersecurity, Inc.

Revenue and Income (2024)

• Total Revenue: approximately $4.292 million
  • Breakdown:
    • Net sales: $2.226 million (up 28.8% from 2023)
    • Net investment income: $2.071 million (up 32.2% from 2023)
    • Net gains (losses): ($5,000) (decreased from $384,000 in 2023)
• Net Income (2024): approximately $522,000 (up 64.7% from 2023)
  • After deducting $90,000 attributable to non-controlling interests.
• Income (Loss) from Discontinued Operations: No income after prior loss in 2023.

Customer Base

• The company’s products are sold directly to OEMs, through franchised representatives, distributors, or directly to end-users.
• They serve defense, aerospace, instrumentation, industrial, and communications markets.
• 2024 Key Customer Concentration:
  • Top 4 customers: Totaling $956,000 or 43% of net sales.
  • Individual largest customer: $310,000 (13.9% of net sales).
• International Revenue:
  • $962,000 (43.2% of total sales), primarily from Europe and Canada.

Business Developments

• 2022: Spin-off of M-tron Industries, Inc. (the "Separation") completed on October 7, 2022.
• 2023: Launched Lynch Capital International, LLC.
• 2022: M-tron Industries, Inc. was spun off as an independent company.
• 2024: No specific new acquisitions noted, but ongoing focus on growth via strategic investments and product development.

Key Product Details

• Frequency and Time Standards: Quartz oscillators, GPS/GNS disciplined standards, rubidium atomic standards.
• Distribution Amplifiers & Redundancy Switches: Designed for high-frequency signals, multiple channel configurations, remote monitoring.
• Market Applications: Satellite communication, digital broadcasting, network synchronization, high-performance calibration and testing, military applications.

Additional Highlights

• The company emphasizes niche markets requiring highly engineered, reliable, and customizable products.
• Focus on cost reduction and technological upgrades of signal distribution products.
• The order backlog was $336,000 as of December 31, 2024.
• Number of employees is minimal relative to revenue, highlighting a lean operation in manufacturing.

This summary encapsulates the company's core activities, product lines, market focus, recent financial performance, customer base, and key strategic developments based on the provided annual report.