Executive Summary

Q3 2016 delivered positive EPS and EBITDA despite lower revenue: revenue $5.86M vs $8.16M YoY; EPS $0.05 vs $0.10 YoY; EBITDA $0.73M vs $0.90M YoY, supported by improved gross margins and a gain on extinguishment of debt .
Sequentially, revenue was modestly above Q2 ($5.77M), with EPS up to $0.05 from $0.02 and EBITDA up to $0.73M from $0.49M, reflecting continued cost discipline and margin improvement .
Management flagged delayed shipments tied to the buildout and coordination of a new St. Louis manufacturing facility, but expressed confidence those shipments would be delivered in Q4, setting up a potential near‑term revenue timing tailwind .
No formal guidance provided and no earnings call transcript located; Wall Street consensus via S&P Global was unavailable for TNLX, limiting beat/miss assessment. Potential stock catalysts include Q4 delivery catch‑up and ongoing margin progress .

What Went Well and What Went Wrong

What Went Well

Delivered positive net income ($0.14M) and EPS ($0.05) in Q3 despite lower revenue, driven by improved gross margins and a gain on extinguishment of debt .
EBITDA strength: $0.73M in Q3 vs $0.49M in Q2, reflecting better operational efficiency and lower selling, general and administrative expenses year‑to‑date .
Management emphasized strategic progress: “Strengthening the balance sheet and increasing margins continues to be our ultimate goal,” and highlighted the long‑term benefits expected from the new St. Louis facility .

What Went Wrong

Revenue contracted materially YoY (−28.2%): $5.86M vs $8.16M, as deliveries were impacted by construction and facility coordination .
EBITDA declined YoY to $0.73M from $0.90M as lower revenue volume offset margin improvements; nine‑month EBITDA also trailed the prior year ($0.58M vs $1.00M) .
No formal guidance and no earnings call transcript located, limiting insight into forward demand signals and segment dynamics for TL Vision vs TL Energy .

Financial Results

Metric	Q3 2015	Q2 2016	Q3 2016
Revenue ($USD Millions)	$8.16	$5.77	$5.86
Net Income ($USD Millions)	$0.17	$0.08	$0.14
EPS ($USD)	$0.10	$0.02	$0.05
EBITDA ($USD Millions)	$0.90	$0.49	$0.73
EBITDA Margin (%)	11.0% (0.90/8.16)*	8.5% (0.49/5.77)*	12.4% (0.73/5.86)*
Net Income Margin (%)	2.1% (0.17/8.16)*	1.4% (0.08/5.77)*	2.4% (0.14/5.86)*

Notes: *Margins computed from cited revenue and net income/EBITDA figures.

Segment breakdown: Not disclosed in the Q3 2016 press release (Exhibit 99.1) .

KPIs (operational and financing metrics)

KPI	Q3 2015	Q2 2016	Q3 2016
Average Shares Outstanding (000s)	1,673	1,711	1,711
Interest Expense, Net ($USD Thousands)	87	40	131
Income Tax Expense (Benefit) ($USD Thousands)	—	(73)	7
Depreciation & Amortization ($USD Thousands)	637	631	449

Guidance Changes

No formal financial guidance was provided. Management commentary noted shipment delays in Q3 with expected delivery in Q4 due to the new St. Louis manufacturing facility buildout and coordination across facilities .

Metric	Period	Previous Guidance	Current Guidance	Change
Formal Revenue Guidance	Q4 2016	Not provided	Not provided; management expects delayed shipments delivered in Q4	Maintained (no formal guidance)
Margins/OpEx/Tax Rate	FY/Q4 2016	Not provided	Not provided	Maintained (no formal guidance)
Segment Guidance	FY/Q4 2016	Not provided	Not provided	Maintained (no formal guidance)

Earnings Call Themes & Trends

No Q3 2016 earnings call transcript was located; thematic tracking below relies on press releases.

Topic	Previous Mentions (Q2 2016 / Q1 2016)	Current Period (Q3 2016)	Trend
Supply chain / Deliveries	Q2: Operational improvements; financing and note redemptions improved liquidity; no delivery constraints specifically highlighted . Q1: Not available.	Deliveries impacted by construction/coordination of new St. Louis facility; delayed shipments expected to be delivered in Q4 .	Near‑term constraint easing into Q4 (timing shift) .
Balance sheet & Liquidity	Q2: New $3M revolver and $1M term loan; redemption of $353k high‑interest notes at discount .	Gain on extinguishment of debt benefited Q3 earnings .	Ongoing strengthening (financing + debt actions) .
Margins & Cost Discipline	Q2: Improved gross margins and lower operating expenses drove net income .	Improved gross margins supported profitability despite lower revenue .	Positive margin trajectory .
Product/Manufacturing	Q2: Focus on expanding product line and channels .	New state‑of‑the‑art St. Louis manufacturing facility under construction to drive sustained efficiencies .	Strategic capacity buildout .

Management Commentary

“Strengthening the balance sheet and increasing margins continues to be our ultimate goal. In the third quarter, construction of our new state-of-the art manufacturing facility in St. Louis and the coordination of several facilities has impacted deliveries. However, we fully believe that when complete, our new manufacturing base will provide great and sustained returns and efficiencies. We are confident that shipments that were delayed in third quarter, will be delivered in fourth quarter,” — J.M. Allain, President & CEO .
Q2 strategic actions: “The Company completed a successful financing package for up to $3 million in a revolving credit line... and a $1 million term loan... [and] redeemed $353,000 of high interest Notes & Debentures... at a significant discount,” positioning for growth — J.M. Allain .

Q&A Highlights

No Q3 2016 earnings call transcript was located; therefore, Q&A highlights and any guidance clarifications are unavailable [Search attempt; none found].

Estimates Context

We attempted to pull Wall Street consensus estimates via S&P Global (EPS and revenue for Q3 and Q2 2016), but estimates were unavailable due to missing CIQ company mapping for TNLX. As a result, we cannot provide a beat/miss assessment against consensus for this quarter.

Key Takeaways for Investors

Profitability resilience: Positive EPS ($0.05) and higher EBITDA ($0.73M) despite revenue softness, aided by improved gross margins and a gain on extinguishment of debt .
Sequential momentum: Q3 revenue and EBITDA improved vs Q2, with EPS up from $0.02 to $0.05, indicating cost/margin progress continuing into 2H .
Near‑term timing catalyst: Management expects delayed Q3 shipments to be delivered in Q4; monitor revenue catch‑up and factory ramp execution in St. Louis .
Balance sheet actions: Q2 liquidity enhancement (revolver/term loan) and debt redemptions, plus Q3 debt extinguishment gains, support operational flexibility .
Risk: Revenue variability linked to manufacturing transition and coordination; execution at the new facility will be critical to sustain margins and deliveries .
Visibility: No formal guidance and no call transcript limits forward indicators; watch for subsequent disclosures on Q4 deliveries and any segment/market commentary .
Actionable focus: Track Q4 volumes, gross margin trend, and any additional debt/liquidity actions; absence of Street estimates suggests relying on company disclosures and realized delivery cadence .

TRANS LUX Corp (TNLX)·Q3 2016 Earnings Summary