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TWIN ( DISC Twin Disc , Inc. Announces Fiscal 2022 First Quarter Financial Results October 29 , 2021 • First quarter sales up 3.4 % year - over - year ● Strong operating cash flow and facility sale drives net debt to lowest level in over three years • Six - month backlog at September 24 , 2021 was $ 86.1 million , a 22.5 % increase since June 30 , 2021 • Management optimistic recovery is underway as order rates and demand improve RACINE , Wis . , Oct. 29 , 2021 ( GLOBE NEWSWIRE ) Twin Disc , Inc. ( NASDAQ : TWIN ) , today reported financial results for the fiscal 2022 first quarter ended September 24 , 2021 . Sales for the fiscal 2022 first quarter were $ 47.8 million , compared to $ 46.2 million for the same period last year . The 3.4 % increase in 2022 first quarter sales was primarily due to improving demand within the Company's global oil and gas , industrial and marine markets compared to the same period last fiscal year . The impact of improving markets has been partially offset by significant global supply chain challenges , limiting sales revenue in the quarter . Foreign currency exchange had a $ 0.5 million positive impact on fiscal 2022 first quarter sales . John H. Batten , Chief Executive Officer , commented : " Demand across many of our global markets is improving , and I am encouraged by our strong first quarter performance as we worked tirelessly to navigate unprecedented global supply chain issues . We anticipate the supply chain challenges will persist through our second fiscal quarter before easing through the second half of the fiscal year . We continue to focus on strategies that modernize our global facilities and realign our cost structure . During the first quarter , we completed a sale leaseback of our Rolla production facility for net proceeds of $ 9.1 million ( resulting in a gain of $ 2.9 million recorded in Other Operating Income ) . The restructuring action at our Belgium operation announced in the fourth quarter of fiscal 2021 is expected to be completed this fiscal year and we anticipate incurring approximately $ 1.0 million of restructuring expenses in the second quarter . These actions as well as future actions are expected to generate annualized pre - tax savings of approximately $ 1.6 million , while reducing the capital requirements necessary to operate our business . " " Our six - month backlog at September 24 , 2021 , was $ 86.1 million , compared to $ 69.4 million at September 25 , 2020 , and $ 70.3 million at June 30 , 2021. The 22.5 % increase in our six - month backlog over past three months is encouraging and is supported by improving demand trends across many of our global markets . The investment cycle in the North America pressure pumping industry has yet to materialize . However , we are optimistic an oil and gas investment cycle will begin in the coming quarters supported by an aging fleet of equipment and higher oil and gas prices . Overall , I am pleased with the progress we are making to transform our business . We ended the quarter with strong order rates across many areas of our business and we believe fiscal 2022 will be a good year of profitable growth for Twin Disc . " Gross profit percent for the fiscal 2022 first quarter was 28.2 % , compared to 21.0 % in the fiscal 2021 first quarter . The 720 - basis point increase in gross profit margin percentage for the fiscal 2022 first quarter compared to the fiscal 2021 first quarter , was primarily due to higher , more profitable sales , the positive outcomes of targeted cost reduction initiatives and the favorable impact of the Employee Retention Credit ( " ERC " ) , a COVID - 19 relief program of the U.S. government , recorded in the quarter ( $ 1.3 million ) . The quarter also benefited from the incremental impact of the NOW subsidy ( $ 0.3 million ) , a COVID - 19 relief program of the Netherlands government . For the fiscal 2022 first quarter , marketing , engineering and administrative ( ME & A ) expenses increased $ 0.7 million to $ 13.1 million , compared to $ 12.4 million for the fiscal 2021 first quarter . The slight increase in ME & A expenses in the quarter was primarily due to a current year global bonus accrual and higher salary and benefit costs , partially offset by the favorable impact of the ERC . As a percent of revenues , ME & A expenses increased to 27.4 % for the fiscal 2022 first quarter , compared to 26.9 % for the same period last year . Twin Disc recorded restructuring charges of $ 48,000 in the fiscal 2022 first quarter , compared to restructuring charges of $ 0.4 million in the same period last fiscal year . Restructuring activities during the fiscal 2022 first quarter related primarily to ongoing cost reduction and productivity actions at the Company's European operations and actions to adjust the cost structure at our domestic operation .