TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ:TOMZ), is a
global company specializing in disinfection and decontamination
utilizing its premier Binary Ionization Technology (BIT) platform
through its SteraMist brand of products today announced its results
financial results for the calendar year 2020 which includes annual
revenue growth of 297% and a 95% increase in fourth quarter sales.
TOMI Chief Executive Officer, Dr. Halden Shane stated, “Our
Company made tremendous progress in 2020, resulting in record
annual revenues reaching $25 million and net income of $4.4
million. The COVID-19 pandemic elevated the way the world looks at
disinfection protocols. This shift in thinking allowed us to expand
our SteraMist brand, and to onboard a diverse group of customers
from a wide range of verticals, significantly enhancing our
customer base. TOMI’s customers are great referrals for the
advancement of SteraMist technology in the marketplace and the
promotion of TOMI as a company, particularly in the emergency
services and long-term care facilities.
“Our TOMI Service Network members continue to fight at the front
lines assisting in the reopening of the economy by enabling
businesses to maintain a new level of clean. Our Life Science
division is seeing a return to normal for our current customers and
the majority of our long-term projects with top tier pharmaceutical
companies have resumed after being placed on hold due to COVID-19.
As we move through 2021, we expect the launch of new products
including the SteraBot, SteraBox, and SteraPack to drive continued
growth and meet customer demand for more agile solutions. With
these initiatives, the potential for 2021 performance is even
stronger than what we achieved in 2020. We’re excited about the
launch of these new products, which demonstrate the versatility of
our superior technology and we believe our strengthened portfolio
of offerings, coupled with our recently announced new sales
executives, position us well to continue increasing our market
share throughout 2021.”
Financial Results for the year ended December 31, 2020
compared to December 31, 2019
- Total net revenue was $25.0 million compared to $6.3 million,
an increase of $18.7 million or 297%.
- SteraMist® equipment-based revenues were $16.9 million and $3.9
million respectively, an increase of 333%.
- SteraMist® BIT Solution-based revenues were $4.3 million and
$0.7 million respectively, an increase of 514%.
- Service-based revenues were $2.1 million and $1.3
million, respectively, an increase of 62%.
- Domestic revenues were $18.4 million and $5.0 million,
respectively, an increase of 268%; International revenues were
approximately $6.7 million and $1.3 million, respectively, an
increase of 415%.
- Gross margin was 60.1% compared to 61.7%. The decrease in gross
profit is attributable to product mix.
- Operating income was $4.5 million compared to an operating loss
of ($2.1 million).
- Net Income was $4.4 million or $0.27 per basic and $0.23 per
diluted share, compared to a net loss of $2.3 million or ($0.15)
per basic and diluted share.
- EBITDA was $5.2 million compared to an EBITDA loss of ($1.4
million). A table reconciling EBITDA to the appropriate GAAP
measure is included with the Company's financial information
below.
- Adjusted EBITDA was $8.4 million as compared to adjusted EBITDA
loss of ($1.2 million). Adjusted EBITDA margin was 33% for full
year 2020. A table reconciling Adjusted EBITDA to the appropriate
GAAP measure is included with the Company's financial information
below.
- Cash provided from operations for the year ended December 31,
2020 was $4.6 million compared to cash used in operations of
($814,000) for the year ended December 31, 2019.
Financial Results for the three months ended December
31, 2020 compared to December 31, 2019
- Total net revenue was $3.7 million compared to $1.9 million, an
increase of 95%.
- SteraMist® equipment-based revenues were $2.3 million and $1.3
million respectively, an 77% increase.
- SteraMist® BIT Solution-based revenues were $0.8 million and
$0.2 million, respectively, an increase of 300%.
- Service-based revenues were $0.2 million and $0.3 million,
respectively, a decrease of 33%.
- Domestic revenues were $2.9 million and $1.2 million,
respectively, an increase of 142%; International revenues were
consistent at approximately $0.7 million in both 2020 and
2019.
- Gross margin was 58.9% compared to 56.0%. The increased gross
margin is attributable to product mix.
- Operating loss was ($2.9 million) compared to an operating loss
of ($0.5 million). The increased loss from operations is
attributable to non-cash equity compensation expense charge
incurred in the fourth quarter in the amount of $2.8 million.
- Net loss was ($2.9 million) or ($0.17) per basic and diluted
share, compared to a net loss of ($0.5 million) or ($0.03) per
basic and diluted share.
- EBITDA loss was ($2.7 million) and ($0.3 million). A table
reconciling EBITDA to the appropriate GAAP measure is included with
the Company's financial information below.
- Adjusted EBITDA was $0.1 million compared to EBITDA loss of
($0.3 million). A table reconciling Adjusted EBITDA to the
appropriate GAAP measure is included with the Company's financial
information below.
Balance sheet highlights
as of December 31, 2020
- Cash and cash equivalents were approximately $5.2 million
compared to $0.9 million at December 31, 2019, an increase of $4.3
million.
- Working capital was $11.5 million compared to ($1.3 million) at
December 31, 2019.
- Shareholders’ equity was $13.2 million compared to $0.9 million
at December 31, 2019, an increase of $12.3 million.
Current Business Highlights To Date
Revenues
- Record total revenue exceeding $25 million in a calendar
year.
- Added approximately 250 new customers across our five divisions
for the year ended December 31, 2020.
- Sold 650 machines and 29,000 gallons of our SteraMist® BIT
Solution during 2020 calendar year.
Business Highlights
- Conversion of $4.5 million convertible note into shareholder
equity.
- Effected a 1-for-8 reverse stock split of the outstanding
shares of our common stock and preferred A stock; Common stock was
approved for listing on the Nasdaq Stock Market and our shares
commenced trading on the Nasdaq Stock Market on October 1,
2020.
- Added additional manufacturer through agreement with Planet
Innovation.
- TOMI Service Network provider memberships increased and BIT
solution sales dramatically increased related to the number of
service jobs conducted by TSN providers, including the treatment of
schools, residential and commercial buildings, rapid transit,
airplanes and other transportation methods.
- Launched our Commercial Division to capitalize on increased
demand from Federal Government facilities and agencies, the
aircraft industry, manufacturing companies, the automobile, naval,
education, retail, housing and recreation sectors, and emergency
preparedness for counties and cities.
- SteraMist equipment and BIT solution officially approved and
registered with the China CDC (Received two separate
registrations).
- Successfully tested for direct produce application efficacy,
with testing results published in Food Control for the third time,
highlighting the USDA paper “Cold plasma-activated hydrogen
peroxide aerosol on populations of Salmonella Typhimurium and
Listeria innocua and quality changes of apple, tomato and
cantaloupe during storage – A pilot scale study” authored by Dr.
Xuetong Fan. The study sought to test direct application of iHP™
directly onto the smooth surfaces of tomatoes and apples, the stem
scars of of tomatoes, and the rinds of cantaloupes. Resulting
efficacy on the reduction of Salmonella Typhimurium and Listeria
innocua bacteria as well as any changes in quality parameters for
simulated storage were observed.
- Released preliminary scientific results on one of two studies
conducted with the University of Virginia demonstrating kill on
SARS CoV-2 Virus in five seconds. The Company looks forward to
results on the second study achieving kill on Adenovirus, which
will benefit the TOMI’s efforts in the Hospital-HealthCare, TOMI
Service Network, and Commercial markets.
- Continued development and testing of the “SteraBot” and launch
of pilot program at Lithuanian University Hospital.
- Ongoing development of new products such as SteraBox and
SteraPack, with the latter to have a tentative launch set for
second quarter 2021.
- Received first Australian patent protecting use of its iHP
technology, and pursuing patent rights in diverse regions of the
world, encompassing the European Union, Brazil, Mexico, Korea,
China, India, and many other countries.
- Added three Vice Presidents of Sales to oversee the Company’s
sales efforts, to capitalize on the growing pipeline of
opportunities across the Commercial, Healthcare and Food Divisions
respectively.
- Increased demand for TOMI’s product and services has led to the
hiring and onboarding of additional employees to assist in a wide
variety of company operations, including accounting, procurement,
customer satisfaction, and quality control.
Conference Call InformationTOMI will hold a
conference call to discuss fourth quarter and year end 2020 results
at at 4:30 p.m. ET today, March 30, 2021.
To participate in the call by phone, dial (877) 545-0320 and
entry code 259942 approximately five minutes prior to the scheduled
start time. International callers please dial (973) 528-0016 and
entry code 259942. To access the live webcast or view the press
release, please visit the Investor Relations section of the TOMI
website
at: http://investor.tomimist.com/TOMZ/webcasts_and_events/2145
A replay of the teleconference will be available until April 13,
2021 and may be accessed by dialing (877) 481-4010. International
callers may dial (919) 882-2331. Callers should use replay access
code: 40536. A replay of the webcast will be available for at least
90 days on the company’s website, starting approximately one hour
after the completion of the call.
TOMI™ Environmental Solutions, Inc.: Innovating for
a safer world®TOMI™ Environmental Solutions, Inc.
(NASDAQ:TOMZ) is a global decontamination and infection prevention
company, providing environmental solutions for indoor surface
disinfection through the manufacturing, sales and licensing of its
premier Binary Ionization Technology® (BIT™) platform.
Invented under a defense grant in association with the Defense
Advanced Research Projects Agency (DARPA) of the U.S. Department of
Defense, BIT™ solution utilizes a low percentage Hydrogen
Peroxide as its only active ingredient to produce a fog of
ionized Hydrogen Peroxide (iHP™). Represented by the
SteraMist® brand of products, iHP™ produces a
germ-killing aerosol that works like a visual non-caustic
gas. TOMI products are designed to service a broad
spectrum of commercial structures, including, but not limited to,
hospitals and medical facilities, cruise ships, office buildings,
hotel and motel rooms, schools, restaurants, meat and produce
processing facilities, military barracks, police and fire
departments, and athletic facilities. TOMI products and
services have also been used in single-family homes and multi-unit
residences.
TOMI develops training programs and application protocols
for its clients and is a member in good standing with The American
Biological Safety Association, The American Association of Tissue
Banks, Association for Professionals in Infection Control and
Epidemiology, Society for Healthcare Epidemiology of America,
America Seed Trade Association, and The Restoration Industry
Association.
For additional information, please
visit http://www.tomimist.com/ or contact us
at info@tomimist.com.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995Certain written and oral
statements made by us may constitute “forward-looking statements”
as defined in the Private Securities Litigation Reform Act of 1995
(the “Reform Act”). Forward-looking statements are identified by
such words and phrases as “we expect,” “expected to,” “estimates,”
“estimated,” “current outlook,” “we look forward to,” “would equate
to,” “projects,” “projections,” “projected to be,” “anticipates,”
“anticipated,” “we believe,” “could be,” and other similar phrases.
All statements addressing operating performance, events, or
developments that we expect or anticipate will occur in the future,
including statements relating to revenue growth, earnings,
earnings-per-share growth, or similar projections, are
forward-looking statements within the meaning of the Reform Act.
They are forward-looking, and they should be evaluated in light of
important risk factors that could cause our actual results to
differ materially from our anticipated results. The information
provided in this document is based upon the facts and circumstances
known at this time. We undertake no obligation to update these
forward-looking statements after the date of this release.
Use of Non-GAAP Financial MeasuresThis press
release includes information relating to EBITDA, Adjusted EBITDA
and Adjusted EBITDA margin, each of which the Securities and
Exchange Commission has defined as a "non-GAAP financial
measure."
We define EBITDA as net income (loss), adjusted to exclude:
interest, taxes, depreciation and amortization (EBITDA) is a
non-GAAP financial measure and is intended to serve as a supplement
to our results provided in accordance with GAAP. We believe that
such information may provide our investors a better understanding
of our underlying operational performance, business and performance
trends.
We define Adjusted EBITDA as net income (loss), adjusted to
exclude: interest, taxes, depreciation and amortization;
stock-based compensation expense. We define Adjusted EBITDA margin
as Adjusted EBITDA divided by net revenue. We believe that such
information may provide our investors a better understanding of our
underlying operational performance, business and performance
trends.
Although we believe that the use of non-GAAP financial measures
enhance its investors’ understanding of its business and
performance, our use of non-GAAP financial measures should not be
considered an alternative to GAAP basis financial measures and
should be read in conjunction with the relevant GAAP financial
measures. Other companies in similar industries may define or
calculate non-GAAP financial measures differently than ours,
limiting their usefulness as a comparative measure. Because of
these limitations, the non-GAAP financial measure used in this
release should not be considered in isolation or as a substitute
for performance measures calculated in accordance with GAAP. A
reconciliation of the non-GAAP financial measures to the most
directly comparable GAAP measure is available in this news
release.
|
TOMI ENVIRONMENTAL SOLUTIONS, INC. |
CONSOLIDATED BALANCE SHEET |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
Current Assets: |
December 31, 2020 (1) |
December 31, 2019 (1) |
Cash and Cash Equivalents |
$ |
5,198,842 |
|
|
$ |
897,223 |
|
Accounts Receivable - net |
|
3,716,701 |
|
|
|
1,494,658 |
|
Other Receivables |
|
198,951 |
|
|
|
- |
|
Inventories |
|
3,781,515 |
|
|
|
2,315,214 |
|
Vendor Deposits |
|
388,712 |
|
|
|
141,052 |
|
Prepaid Expenses |
|
421,305 |
|
|
|
187,664 |
|
Total Current Assets |
|
13,706,027 |
|
|
|
5,035,811 |
|
|
|
|
|
Property and Equipment –
net |
|
1,298,103 |
|
|
|
1,367,864 |
|
|
|
|
|
Other Assets: |
|
|
|
Intangible Assets – net |
|
722,916 |
|
|
|
939,010 |
|
Operating Lease - Right of Use
Asset |
|
631,527 |
|
|
|
674,471 |
|
Capitalized Software
Development Costs - net |
|
52,377 |
|
|
|
94,278 |
|
Other Assets |
|
358,935 |
|
|
|
114,033 |
|
Total Other Assets |
|
1,765,755 |
|
|
|
1,821,792 |
|
Total Assets |
$ |
16,769,885 |
|
|
$ |
8,225,467 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
Current Liabilities: |
|
|
|
Accounts Payable |
$ |
1,501,469 |
|
|
$ |
713,222 |
|
Accrued Expenses and Other Current Liabilities |
|
501,849 |
|
|
|
450,112 |
|
Accrued Interest |
|
- |
|
|
|
66,667 |
|
Customer Deposits |
|
118,880 |
|
|
|
- |
|
Current Portion of Long-Term Operating Lease Convertible Notes
Payable, net of discount of $0 at December 31, 2019 |
|
- |
|
|
|
5,000,000 |
|
Total Current Liabilities |
|
2,203,421 |
|
|
|
6,301,511 |
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
Loan Payable (Note 16) |
|
410,700 |
|
|
|
- |
|
Long-Term Operating Lease, Net of Current Portion |
|
953,190 |
|
|
|
1,034,413 |
|
Total Long-Term Liabilities |
|
1,363,890 |
|
|
|
1,034,413 |
|
Total Liabilities |
|
3,567,311 |
|
|
|
7,335,924 |
|
|
|
|
|
Commitments and
Contingencies |
|
- |
|
|
|
- |
|
|
|
|
|
Shareholders’ Equity: |
|
|
|
Cumulative Convertible Series A Preferred Stock; par value $0.01
per share, 1,000,000 shares authorized; 63,750 shares issued and
outstanding at December 31, 2020 and December 31, 2019 |
|
638 |
|
|
|
638 |
|
Cumulative Convertible Series B Preferred Stock; $1,000 stated
value; 7.5% Cumulative dividend; 4,000 shares authorized; none
issued and outstanding at December 31, 2020 and December 31,
2019 |
|
- |
|
|
|
- |
|
Common stock; par value $0.01 per share, 250,000,000 shares
authorized; 16,761,513 and 15,587,552 shares issued and outstanding
at December 31, 2020 and December 31, 2019, respectively. |
|
167,615 |
|
|
|
155,875 |
|
Additional Paid-In Capital |
|
52,142,399 |
|
|
|
44,232,274 |
|
Accumulated Deficit |
|
(39,108,078 |
) |
|
|
(43,499,244 |
) |
Total Shareholders’ Equity |
|
13,202,574 |
|
|
|
889,543 |
|
Total Liabilities and
Shareholders’ Equity |
$ |
16,769,885 |
|
|
$ |
8,225,467 |
|
|
|
|
|
(1) Share amounts
with respect to the common stock and Convertible Series A Preferred
Stock have been retroactively restated to reflect the reverse split
thereof, which was effected as of the close of business on
September 10, 2020. |
|
TOMI ENVIRONMENTAL SOLUTIONS, INC. |
CONSOLIDATED STATEMENT OF OPERATIONS |
|
|
|
|
|
|
|
|
|
For The Three Months Ended |
|
For The Years Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
Sales, net |
$ |
3,654,133 |
|
|
$ |
1,855,441 |
|
|
$ |
25,027,637 |
|
|
$ |
6,347,160 |
|
Cost of Sales |
|
1,500,466 |
|
|
|
816,563 |
|
|
|
9,985,046 |
|
|
|
2,433,243 |
|
Gross Profit |
|
2,153,667 |
|
|
|
1,038,878 |
|
|
|
15,042,591 |
|
|
|
3,913,917 |
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
Professional Fees |
|
262,861 |
|
|
|
66,440 |
|
|
|
681,377 |
|
|
|
363,789 |
|
Depreciation and Amortization |
|
198,274 |
|
|
|
177,095 |
|
|
|
719,760 |
|
|
|
716,165 |
|
Selling Expenses |
|
267,348 |
|
|
|
380,238 |
|
|
|
1,247,444 |
|
|
|
1,654,564 |
|
Research and Development |
|
209,603 |
|
|
|
91,209 |
|
|
|
455,046 |
|
|
|
340,582 |
|
Equity Compensation Expense |
|
2,823,300 |
|
|
|
27,189 |
|
|
|
3,130,986 |
|
|
|
114,222 |
|
Consulting Fees |
|
100,778 |
|
|
|
39,627 |
|
|
|
327,232 |
|
|
|
126,693 |
|
General and Administrative |
|
1,195,110 |
|
|
|
749,376 |
|
|
|
3,971,956 |
|
|
|
2,681,146 |
|
Total Operating
Expenses |
|
5,057,275 |
|
|
|
1,531,174 |
|
|
|
10,533,802 |
|
|
|
5,997,161 |
|
Income (loss) from
Operations |
|
(2,903,608 |
) |
|
|
(492,296 |
) |
|
|
4,508,789 |
|
|
|
(2,083,244 |
) |
|
|
|
|
|
|
|
|
Other Income
(Expense): |
|
|
|
|
|
|
|
Amortization of Debt Discounts |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(17,534 |
) |
Interest Income |
|
568 |
|
|
|
613 |
|
|
|
2,915 |
|
|
|
3,045 |
|
Interest Expense |
|
(1,272 |
) |
|
|
(50,000 |
) |
|
|
(43,538 |
) |
|
|
(200,000 |
) |
Total Other Income
(Expense) |
|
(704 |
) |
|
|
(49,387 |
) |
|
|
(40,623 |
) |
|
|
(214,489 |
) |
|
|
|
|
|
|
|
|
Income (loss)
before income taxes |
|
(2,904,312 |
) |
|
|
(541,683 |
) |
|
|
4,468,166 |
|
|
|
(2,297,733 |
) |
Provision for
Income Taxes |
|
- |
|
|
|
- |
|
|
|
77,000 |
|
|
|
- |
|
Net Income
(loss) |
$ |
(2,904,312 |
) |
|
$ |
(541,683 |
) |
|
$ |
4,391,166 |
|
|
$ |
(2,297,733 |
) |
|
|
|
|
|
|
|
|
Net income (loss)
Per Common Share |
|
|
|
|
|
|
|
Basic |
$ |
(0.17 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.27 |
|
|
$ |
(0.15 |
) |
Diluted |
$ |
(0.17 |
) |
|
$ |
(0.03 |
) |
|
$ |
0.23 |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
Basic Weighted
Average Common Shares Outstanding |
|
16,759,058 |
|
|
|
15,587,552 |
|
|
|
16,512,126 |
|
|
|
15,586,258 |
|
Diluted Weighted
Average Common Shares Outstanding |
|
16,759,058 |
|
|
|
15,587,552 |
|
|
|
18,757,509 |
|
|
|
15,586,258 |
|
|
|
|
|
|
|
|
|
(1) Share amounts
with respect to the common stock and Convertible Series A Preferred
Stock have been retroactively restated to reflect the
reverse split thereof, which was effected as of the close of
business on September 10, 2020. |
|
The following is a reconciliation of net income (loss) to EBITDA
and Adjusted EBITDA (in thousands, except percentages;
unaudited):
|
For The Three Months Ended |
|
For The Year Ended |
|
December 31, |
|
December 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Net income (loss) |
$ |
(2,904,312 |
) |
|
$ |
(541,683 |
) |
|
$ |
4,391,166 |
|
|
$ |
(2,297,733 |
) |
|
|
|
|
|
|
|
|
Interest Income |
|
(568 |
) |
|
|
(613 |
) |
|
|
(2,915 |
) |
|
|
(3,045 |
) |
Interest Expense |
|
1,272 |
|
|
|
50,000 |
|
|
|
43,538 |
|
|
|
200,000 |
|
Depreciation and Amortization |
|
198,274 |
|
|
|
177,095 |
|
|
|
719,760 |
|
|
|
716,165 |
|
Provision for Income Taxes |
|
- |
|
|
|
|
|
77,000 |
|
|
|
Other |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
17,534 |
|
EBITDA |
$ |
(2,705,334 |
) |
|
$ |
(315,201 |
) |
|
$ |
5,228,549 |
|
|
$ |
(1,367,079 |
) |
|
|
|
|
|
|
|
|
Equity Compensation Expense |
|
2,823,300 |
|
|
|
10,621 |
|
|
|
3,130,986 |
|
|
|
114,222 |
|
Adjusted EBITDA |
$ |
117,996 |
|
|
$ |
(304,580 |
) |
|
$ |
8,359,535 |
|
|
$ |
(1,252,857 |
) |
|
|
|
|
|
|
|
|
Net revenue |
$ |
3,654,133 |
|
|
$ |
1,855,441 |
|
|
$ |
25,027,637 |
|
|
$ |
6,347,160 |
|
Adjusted EBITDA Margin |
|
3 |
% |
|
|
(16 |
%) |
|
|
33 |
% |
|
|
(20 |
%) |
INVESTOR RELATIONS CONTACT:John Nesbett/Jennifer
BelodeauIMS Investor Relationsjnesbett@imsinvestorrelations.com
TOMI Environmental Solut... (NASDAQ:TOMZ)
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