TOUGHBUILT INDUSTRIES ANNOUNCES FIRST QUARTER 2021 RESULTS
May 17 2021 - 4:05PM
ToughBuilt Industries, Inc.
("ToughBuilt") (NASDAQ: TBLT;
TBLTW), today reported financial results for the first
quarter ended March 31, 2021.
First Quarter 2021 Financial Highlights:
- Revenues for the first quarter of 2021 increased 214% to $12.3
million, compared to $3.9 million in the first quarter of 2020. The
increase in revenues was primarily driven by strong demand for
ToughBuilt products that across all product lines from leading
customers in the United States and Canada.
- GAAP gross profit increased 128% to $3.5 million, compared to
$1.5 million in the first quarter of 2020. GAAP gross profit
margins for the quarter were 28.2%, compared to 38.9% in the year
ago period. The decrease was primarily due to an increase in cost
of goods sold following the recategorization of logistic-related
expenses such as custom duty fees, warehouse storage & handling
costs, and freight costs. Prior to Q4 2020, these expenses were
reported under operating expenses.
- On an adjusted* basis, first quarter gross margins were 28.2%,
compared to 36.0% in the prior period. The decrease in adjusted
gross margins was primarily driven by increased year-over-year
shipping costs.
- GAAP operating expense were $9.4 million, compared to $5.0
million in the first quarter of 2020. The increase in operating
expense was primarily driven by higher SG&A expenses due to an
expanded workforce from 32 to 82 employees, increased R&D
expenses, increased fulfillment fees related to increased online
order volume, and marketing costs.
- Net loss attributable to common stockholders was $6.1 million,
or $0.09 per share, as compared to a net loss of $5.0 million, or
$0.43 per share in the first quarter of 2020.
- Cash and cash equivalents was $32.5 million as of March 31,
2021.
*adjusted gross margins reflect the
recategorization of logistic-related expenses under cost of goods
sold. Prior to Q4 2020, these expenses were reported under
operating expenses.
“The strategic investments we’ve made in
research and development, coupled with our manufacturing and
distribution capabilities, continue to pay off, which translated
into significant revenue growth and a robust backlog coming out of
the first quarter of 2021,” commented Michael Panosian,
ToughBuilt’s Chief Executive Officer. “The growth in revenue was
driven in part by the quarter-over-quarter introduction of new SKUs
across Soft and Metal Goods, as well as increased demand for our
job site support products. The unique design and functionality of
our ToughBuilt product suite continues to resonate with our
customers, resulting in increased interest from large retailers
across the globe and the expansion of our existing retail
relationships. For the remainder of 2021, our strategic priorities
include leveraging our existing retail network to launch several
additional product lines, expanding into high-growth international
markets and enhancing our manufacturing and distribution
capabilities.”
Mr. Panosian continued, “I am extremely proud of
the ToughBuilt team and their unwavering commitment to innovation
and execution. In light of the global pandemic, we have implemented
several measures to ensure the health and safety of our employees,
and to address the uncertainties caused by global
dislocations.”
ABOUT TOUGHBUILT INDUSTRIES, INC.
ToughBuilt is an advanced product design,
manufacturer and distributor with emphasis on innovative products.
Currently focused on tools and other accessories for the
professional and do-it-yourself construction industries. We market
and distribute various home improvement and construction product
lines for both the do-it-yourself and professional markets under
the TOUGHBUILT brand name, within the global multibillion dollar
per year tool market industry. All of our products are designed by
our in-house design team. Since launching product sales in 2013, we
have experienced significant annual sales growth. Our current
product line includes three major categories, with several
additional categories in various stages of development, consisting
of Soft Goods & Kneepads and Sawhorses & Work Products. Our
mission is to provide products to the building and home improvement
communities that are innovative, of superior quality derived in
part from enlightened creativity for our end users while enhancing
performance, improving well-being and building high brand loyalty.
Additional information about the Company is available at:
https://www.toughbuilt.com/.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking
statements.” Such statements may be preceded by the words
“intends,” “may,” “will,” “plans,” “expects,” “anticipates,”
“projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,”
“potential” or similar words. Forward-looking statements are not
guarantees of future performance, are based on certain assumptions
and are subject to various known and unknown risks and
uncertainties, many of which are beyond the Company’s control, and
cannot be predicted or quantified and consequently, actual results
may differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
without limitation, risks and uncertainties associated with (i)
market acceptance of our existing and new products, (ii) delays in
bringing products to key markets, (iii) an inability to secure
regulatory approvals for the ability to sell our products in
certain markets, (iv) intense competition in the industry from much
larger, multinational companies, (v) product liability claims, (vi)
product malfunctions, (vii) our limited manufacturing capabilities
and reliance on subcontractors for assistance, (viii) our efforts
to successfully obtain and maintain intellectual property
protection covering our products, which may not be successful, (ix)
our reliance on single suppliers for certain product components,
(x) the fact that we will need to raise additional capital to meet
our business requirements in the future and that such capital
raising may be costly, dilutive or difficult to obtain and (xi) the
fact that we conduct business in multiple foreign jurisdictions,
exposing us to foreign currency exchange rate fluctuations,
logistical and communications challenges, burdens and costs of
compliance with foreign laws and political and economic instability
in each jurisdiction. More detailed information about the Company
and the risk factors that may affect the realization of forward
looking statements is set forth in the Company’s filings with the
Securities and Exchange Commission (SEC), including the Company’s
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
Investors and security holders are urged to read these documents
free of charge on the SEC’s web site at http://www.sec.gov. The
Company assumes no obligation to publicly update or revise its
forward-looking statements as a result of new information, future
events or otherwise.
Investor Relations Contact:KCSA Strategic
CommunicationsDavid Hanovertoughbuilt@kcsa.com
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