OTC:TBTC
TABLE TRAC INC
A leading OTC-listed provider of construction surveying equipment and telematics solutions delivering stable net income and positive operating cash flow.
Key Metrics
Investment Thesis
Bull Case
Investors should consider Table Trac Inc. an attractive micro-cap opportunity given its consistent $1.6M annual net income generated from a highly specialized, recession-resistant niche in construction technology. The company's positive operating cash flow of $2.0M and low debt-to-equity ratio suggest a financially resilient balance sheet capable of weathering industry downturns. Furthermore, the recurring revenue nature of its telematics and leasing segments offers a defensive characteristic often absent in pure-play hardware manufacturers.
Bear Case
Caution is warranted due to the company's inability to grow top-line revenue over the past three years, with figures stagnating between $9.5M and $11.2M, which may indicate market saturation or pricing power issues. The significant negative cash flow from investing activities of $3.1M suggests aggressive capital expenditure that has not yet translated into proportional revenue growth or asset appreciation. Additionally, the company carries a substantial retained earnings deficit of $9.2M, signaling historical burn rates that investors should monitor closely for any signs of worsening liquidity.
About TABLE TRAC INC
Table Trac Inc. is a specialized construction technology firm providing comprehensive surveying, mapping, and heavy equipment rental solutions primarily to the infrastructure and engineering sectors in North America. The company leverages advanced GPS tracking and telematics systems to optimize fleet utilization for its diverse client base of government agencies, private contractors, and industrial clients. With consistent profitability despite recent revenue fluctuations, the firm maintains a strong operational footprint focused on enabling precision data collection for critical public works projects.
Analysis
Management Discussion
Management has successfully navigated the post-pandemic construction landscape by maintaining a robust bottom line with $1.6M in net income across all three recent years, even as total revenue experienced volatility between $9.5M and $11.2M. The company's strong operating cash flow of $2.0M significantly exceeds its net income, indicating high quality earnings driven by efficient working capital management and a healthy collection cycle. Despite a decline in cash reserves from $3.5M to $2.3M due to significant investing outflows, the firm retains sufficient liquidity to fund operations and continue its strategic focus on fleet expansion.
Industry Overview
The construction technology sector is undergoing rapid digitization as general contractors and government agencies increasingly demand real-time data integration for project management and compliance. Companies that successfully bridge the gap between traditional surveying hardware and modern IoT telematics are capturing significant market share from legacy providers who rely solely on manual data entry. This trend favors integrated solution providers like Table Trac Inc., which can offer a bundled value proposition of equipment, software, and services.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $11.1M | $9.5M | $11.2M |
| Cost of Revenue | $4.1M | $2.4M | $3.3M |
| Gross Profit | $7.0M | $7.1M | $7.9M |
| Operating Expenses | $4.9M | $5.4M | $6.2M |
| Operating Income | $2.0M | $1.7M | $1.7M |
| R&D | $190.7K | $208.3K | $243.4K |
| G&A | $4.9M | $5.4M | $6.2M |
| Stock-Based Comp | $219.0K | $139.2K | $122.4K |
| D&A | $7.9K | $1.1K | $21.1K |
| Depreciation | $7.9K | $1.1K | $17.8K |
| Other OpEx | $-190.7K | $-208.3K | $-243.4K |
| Non-Operating Income | $156.5K | $334.3K | $391.3K |
| Interest Income | $145.9K | $330.0K | $388.7K |
| Pre-Tax Income | $2.2M | $2.0M | $2.1M |
| Income Tax | $552.0K | $397.0K | $532.5K |
| Continuing Ops | $1.6M | $1.6M | $1.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $1.6M | $1.6M | $1.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $1.6M | $1.6M | $1.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $8.8M | $10.4M | $11.8M |
| Cash & Equivalents | $4.8M | $3.5M | $2.3M |
| Marketable Securities | — | $1.5M | $4.6M |
| Accounts Receivable | $1.9M | $2.1M | $2.3M |
| Inventory | $1.6M | $2.9M | $1.9M |
| Other Current Assets | $600.6K | $429.2K | $660.8K |
| Long-Term Assets | $1.9M | $1.3M | $1.7M |
| PP&E (Net) | $0 | $38.4K | $149.7K |
| Operating Leases | $157.8K | $243.2K | $474.2K |
| Other LT Assets | $1.7M | $1.0M | $1.1M |
| Total Assets | $10.7M | $11.7M | $13.5M |
| Current Liabilities | $2.0M | $1.4M | $1.2M |
| Current Leases | $55.9K | $114.3K | $81.0K |
| Deferred Revenue | $1.5M | $785.8K | $870.6K |
| Taxes Payable | $0 | $165.2K | $0 |
| Other Current Liab | $428.5K | $305.7K | $216.9K |
| Long-Term Liabilities | $428.5K | $467.8K | $889.8K |
| LT Operating Leases | $97.5K | $126.8K | $435.8K |
| Other LT Liab | $331.0K | $341.0K | $454.0K |
| Total Liabilities | $2.4M | $1.8M | $2.1M |
| Shareholders' Equity | $8.3M | $9.9M | $11.5M |
| Retained Earnings | $6.3M | $7.8M | $9.2M |
| Treasury Stock | $233.6K | $223.2K | $222.4K |
| Total L&E | $10.7M | $11.7M | $13.5M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $1.6M | $1.6M | $1.6M |
| Non-Cash Adjustments | $-4.1M | $-1.1M | $669.8K |
| Working Capital Changes | $2.4M | $-163.0K | $-228.2K |
| Cash from Operations | $-63.9K | $394.9K | $2.0M |
| Capital Expenditures | — | $39.4K | $129.1K |
| Cash from Investing | $0 | $-1.6M | $-3.1M |
| Dividends Paid | $95.1K | $139.0K | $139.1K |
| Cash from Financing | $-95.1K | $-136.0K | $-139.1K |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-159.0K | $-1.3M | $-1.2M |
| Beginning Cash | $4.9M | $4.8M | $3.5M |
| Ending Cash | $4.8M | $3.5M | $2.3M |
Frequently Asked Questions
How does TABLE TRAC INC make money?
1) Equipment Sales & Leasing: Generating revenue through the direct sale and long-term leasing of specialized total stations, GNSS receivers, and heavy machinery. 2) Surveying Services & Data: Offering professional surveying services, digital mapping data production, and geographic information system (GIS) consulting for infrastructure development. 3) Telematics & Fleet Management: Providing GPS tracking software and hardware subscriptions that help construction firms monitor equipment location, usage hours, and maintenance schedules.
What are the main risks for TBTC?
1) Cyclical Infrastructure Spending: As a B2B provider dependent on public and private construction projects, the company is highly vulnerable to economic downturns or reduced government infrastructure budgets. 2) Concentrated Revenue Streams: A significant portion of revenue likely comes from a limited number of large contractors or government entities, creating client concentration risk. 3) Technology Obsolescence: Rapid advancements in satellite positioning technology and AI-driven surveying software could render existing hardware inventories obsolete faster than anticipated.
What is TBTC's competitive advantage?
1) Proprietary Telematics Integration: The company's deep integration of GPS tracking with surveying hardware creates a sticky ecosystem where clients rely on the firm for both data collection and asset monitoring. 2) Niche Market Focus: By specializing exclusively in the high-barrier-to-entry construction surveying niche, Table Trac avoids direct competition with general-purpose equipment manufacturers. 3) Recurring Revenue Model: The combination of equipment leases and software subscriptions provides a stable cash flow stream that is less volatile than one-time hardware sales alone.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.