ToughBuilt Industries Announces Second Quarter 2021 Results
August 16 2021 - 07:00AM
ToughBuilt Industries, Inc.
("ToughBuilt") (NASDAQ:
TBLT; TBLTW), today reported financial results for the
second quarter ended June 30, 2021.
Second Quarter 2021 Financial Highlights:
-
Revenues for the second quarter of 2021 increased 132% to $15.9
million, compared to $6.8 million in the second quarter of 2020.
The significant increase in revenue was primarily the result of
wide acceptance of our products in the tool industry by new
customers, combined with follow-on sales orders of metal goods and
soft goods from our existing customers.
-
Gross profit increased 41% to $3.4 million, compared to $2.4
million in the second quarter of 2020. Gross profit margins for the
quarter were 21.2%, compared to 34.8% in the year ago period. The
decline in margins for Q2 was primarily due to industry-wide supply
chain disruptions, which have led to historically high shipping
costs, as well as substantial increases in inventory levels during
Q2.
-
Operating expenses were $10.7 million, compared to $4.6 million in
the second quarter of 2020. The increase in operating expense was
primarily driven by higher SG&A expenses due to an expanded
workforce from approximately 30 to 121 global employees and
contractors, increased R&D expenses, and marketing costs.
- Net
loss attributable to common stockholders was $7.4 million, or $0.09
per share, as compared to a net loss of $2.5 million, or $0.11 per
share in the second quarter of 2020.
- Cash
and cash equivalents was $20.2 million as of June 30, 2021.
“Our second quarter 2021 revenue increased
significantly year-over-year and sequentially to $15.9 million,
driven by strong demand from leading retailers in the US and abroad
across all product lines. Additionally, we recorded record Amazon
sales in the first half of 2021, which is a positive signal that
our brand continues to resonate with the end user. We strengthened
relationships with our U.S. and Canada-based retail partners, and,
at the same time, penetrated new large retailers in European
markets,” commented Michael Panosian, ToughBuilt’s Chief Executive
Officer. “Shortly after the quarter end, we launched our two-in-one
scraper/utility knife, bringing a never-before-seen innovation to a
previously static hand tool category, and already we’re seeing
accelerated order volumes online and in-stores throughout the
world. Consistent with last quarter, our strategy for the remainder
of 2021 is to leverage our existing retail network to launch
several additional product lines, to expand into high-growth
international markets and to enhance our manufacturing and
distribution capabilities through hiring industry
professionals.”
CONFERENCE CALL INFORMATION
Michael Panosian, Chief Executive Officer, and
Martin Galstyan, Chief Financial Officer, will host a conference
call to review the Company’s financial and operating results at
8:30am ET today.
To attend the conference call, please dial one
of the teleconference numbers below or follow the live audio
webcast here: http://public.viavid.com/index.php?id=146251.
Attendees are encouraged to dial in to the conference call at least
five minutes prior to the start time.
U.S. TOLL-FREE:
1-877-407-9716INTERNATIONAL: 1-201-493-6779
To listen to a replay of the conference call,
please dial one of the teleconference numbers below. The replay
will also be available through the audio webcast link here:
http://public.viavid.com/index.php?id=146251.
REPLAY U.S. TOLL-FREE:
1-844-512-2921REPLAY INTERNATIONAL:
1-412-317-6671REPLAY PIN: 13722358
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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