Executive Summary

Q4 2016 delivered positive EPS ($0.14) and EBITDA ($0.892M) on $5.725M revenue; revenue grew 14.3% YoY but declined 2.2% QoQ as deliveries normalized from Q3 delays .
Full-year 2016 improved materially despite a 10.1% revenue decline: net loss narrowed to $0.611M, EPS to -$0.47, and EBITDA rose to $1.471M; management cited higher gross margins and lower SG&A as drivers .
No formal quantitative guidance or Q4 earnings call transcript was found; the prior quarter indicated delayed shipments would be delivered in Q4, supporting Q4 profitability and margin execution .
Street consensus estimates via S&P Global were unavailable for TNLX; as such, no beat/miss vs. estimates can be determined for Q4 2016.

What Went Well and What Went Wrong

What Went Well

Positive quarterly profitability: Q4 net income of $0.284M ($0.14 EPS) and EBITDA of $0.892M, reflecting improved gross margins and reduced SG&A .
Sequential margin expansion: EBITDA margin improved QoQ as EBITDA rose to $0.892M on $5.725M revenue vs. $0.727M on $5.855M in Q3; management highlighted gross margin improvements across the year .
Strategic execution and operational normalization: Q3 commentary anticipated deliveries delayed by facility consolidation would occur in Q4, supporting Q4 results (“shipments that were delayed in third quarter, will be delivered in fourth quarter”) .

What Went Wrong

Full-year top-line pressure: 2016 revenue fell 10.1% YoY to $21.191M; despite margin gains, revenue contraction reflects demand/transition headwinds .
QoQ revenue dip: Q4 revenue decreased 2.2% vs. Q3 2016 ($5.725M vs. $5.855M), partly reflecting timing of deliveries around facility changes .
Higher quarterly interest expense vs. prior year: Q4 2016 interest expense was $0.168M vs. $0.096M in Q4 2015, modestly offsetting operating gains .

Financial Results

Quarterly Comparison (oldest → newest)

Metric	Q4 2015	Q3 2016	Q4 2016
Revenue ($USD Millions)	$5.007	$5.855	$5.725
Net Income ($USD Millions)	-$0.659	$0.140	$0.284
Diluted EPS ($USD)	-$0.41	$0.05	$0.14
EBITDA ($USD Millions)	$0.022	$0.727	$0.892
EBITDA Margin (%)	0.4%	12.4%	15.6%
Interest Expense ($USD Millions)	$0.096	$0.131	$0.168
Depreciation & Amortization ($USD Millions)	$0.570	$0.449	$0.440
Shares Outstanding (Millions)	1.676	1.711	1.711

Note: EPS reflects the impact of Series B Preferred dividends ($49K in Q4 2016; $23K in Q4 2015; $50K in Q3 2016) .

Change Analysis

Change vs. Prior Period	Revenue (%)	EPS ($)	EBITDA (%)
QoQ (Q4 2016 vs. Q3 2016)	-2.2%	+$0.09	+22.7%
YoY (Q4 2016 vs. Q4 2015)	+14.3%	+$0.55	+3,954%

Full-Year Comparison

Metric	FY 2015	FY 2016
Revenue ($USD Millions)	$23.567	$21.191
Net Income (Loss) ($USD Millions)	-$1.749	-$0.611
Diluted EPS ($USD)	-$1.06	-$0.47
EBITDA ($USD Millions)	$1.024	$1.471

Non-GAAP: EBITDA excludes interest, income taxes, and depreciation/amortization; management provides this for performance assessment, noting it is not a GAAP measure .

Segment Breakdown

Not disclosed in Q4 2016 press materials or 8-K exhibits .

KPIs / Operating Metrics

Operational drivers noted qualitatively: improved gross margins and lower SG&A drove Q4 and FY operating results; specific gross margin percentages and SG&A amounts were not provided .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q4 2016 / FY 2016	Not provided	Not provided	Maintained (no formal guidance)
Margins (Gross/EBITDA)	Q4 2016 / FY 2016	Not provided	Directional: “improved gross margins” (no numeric range)	N/A (directional only)
OpEx (SG&A)	Q4 2016 / FY 2016	Not provided	Directional: lower SG&A	N/A (directional only)
Tax Rate / OI&E	Q4 2016	Not provided	Not provided	N/A
Dividends	Q4 2016	Preferred dividends continued	Continued (Series B)	Maintained

Earnings Call Themes & Trends

No Q4 2016 earnings call transcript was found. Trend commentary below relies on Q2/Q3 press releases and Q4 press release.

Topic	Previous Mentions (Q-2: Q2 2016)	Previous Mentions (Q-1: Q3 2016)	Current Period (Q4 2016)	Trend
Margins	Higher gross profit and gross margin YoY; focus on bottom-line improvement	Improved gross margins supported income despite lower revenue	Improved gross margins cited for quarterly and annual results	Improving
Manufacturing/Deliveries	Facility financing and operations improvements; setting for growth	New St. Louis facility and coordination impacted deliveries; expected catch-up in Q4	Implicit normalization; Q4 profitability suggests deliveries executed	Normalizing post-transition
Liquidity/Balance Sheet	Secured $3M revolver, $1M term loan; redeemed $353K high-interest notes at discount	Continued focus on strengthening balance sheet	No new items disclosed in Q4 release	Improved and stable
Revenue Trajectory	Slightly lower revenue but operational improvements	Revenue down YoY due to delivery timing; confidence in Q4 shipments	Q4 revenue up YoY (+14.3%) but down QoQ (-2.2%)	Mixed: YoY up, QoQ down modestly
Profitability (EBITDA/EPS)	Positive quarterly EPS and strong EBITDA	Positive EPS; EBITDA softened YoY but remained strong	EPS $0.14; EBITDA $0.892M; full-year EBITDA $1.471M	Improving through H2

Management Commentary

“Trans-Lux… reported improved financial results for both the fourth quarter and the year ended December 31, 2016… both the fourth quarter and the year had positive EBITDA.” – J.M. Allain (President, CEO & CAO) .
“Improved gross margins and lower selling, general and administrative expenses were the primary reasons for the improved operating results and increased EBITDA in the fourth quarter.” .
“Strengthening the balance sheet and increasing margins continues to be our ultimate goal… we fully believe that when complete, our new manufacturing base will provide great and sustained returns and efficiencies… shipments that were delayed in third quarter, will be delivered in fourth quarter.” – J.M. Allain (Q3) .
“These improvements to operating results, working capital liquidity and our financial statements position us well for continued growth.” – J.M. Allain (Q2) .
Non-GAAP reminder: EBITDA is presented for performance assessment and is not a GAAP measure .

Q&A Highlights

No Q4 2016 earnings call transcript was available; no analyst Q&A captured for this period.

Estimates Context

Wall Street consensus estimates via S&P Global were attempted but unavailable for TNLX in this period; no EPS or revenue consensus figures were retrieved to assess beat/miss.

Key Takeaways for Investors

Q4 inflection to profitability: Positive EPS and strong EBITDA underscore successful margin and cost actions; monitor sustainability into 2017 .
Margin execution is the core driver: Improved gross margins and lower SG&A materially lifted Q4 and FY results despite revenue headwinds; watch for continued discipline .
Operational transition progressing: Q3 facility-related delivery impacts appear to have normalized by Q4; execution continuity is key to maintaining profitability .
Revenue quality over volume: QoQ revenue dip with YoY growth suggests timing effects; maintaining pricing/margins during transitions is supportive of the thesis .
Balance sheet/liquidity improved in H2 2016 (new revolver/term loan, debt redemption); provides flexibility for operations and potential growth investments .
Absence of formal guidance and lack of Street coverage increase volatility potential; traders should focus on operational updates, backlog visibility, and margin disclosures in upcoming filings .
Non-GAAP reliance: EBITDA is central to management’s performance lens; investors should triangulate with GAAP metrics and watch for disclosure of gross margin and SG&A detail in subsequent filings .

TRANS LUX Corp (TNLX)·Q4 2016 Earnings Summary