Castellum, Inc. Announces Third Quarter Financial Results
November 14 2023 - 6:45AM
Castellum, Inc. (the "Company") (NYSE-American: CTM), a
cybersecurity, electronic warfare, and software services company
focused on the federal government, announces highlights of its
operating results for its third quarter ended September 30, 2023.
Third Quarter 2023 Financial
Highlights
- Revenues were $11.7 million.
- Gross profit was $4.8 million.
- Operating loss, inclusive of all non-cash and non-recurring
charges, including a $6.9 million write-down of goodwill triggered
by the Company's stock price, was $8.6 million.
- Non-GAAP Recurring Cash Operating Profit was positive $194.7
thousand (see reconciliation to GAAP below).
Castellum, Inc.'s full financial results for the
three and nine months ending September 30, 2023, will be published
on Form 10-Q at www.sec.gov.
"We are proud to announce a quarter with continued
solid revenue and gross profit along with improved Non-GAAP
Recurring Cash Operating Profit ("RCOP") of $194,741," said Mark
Fuller, President and Chief Executive Officer of Castellum. "The
higher RCOP shows that our previously announced cost-cutting
efforts are starting to show some results and keeps us on the path
toward our 2024 projected RCOP of $3.5 million. Our pipeline of
business development opportunities continues to grow, as does the
number of submitted proposals for new contract opportunities. We
anticipate that the pipeline is starting to convert to realized
revenue in 2024. We also continue to selectively look at M&A
opportunities and evaluate other strategic opportunities related to
the Company."
Forward-Looking Statements:
This release contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements represent the Company's
expectations or beliefs concerning future events and can generally
be identified by the use of statements that include words such as
"estimate,” "project,” "believe,” "anticipate,” "shooting to,”
"intend,” "in a position,” "looking to,” "pursue,” "positioned,”
"will,” "likely,” "would," or similar words or phrases.
Forward-looking statements include, but are not limited to,
statements regarding the Company's expectations for revenue growth,
RCOP growth, and new customer opportunities, improvements to cost
structure, and profitability. These forward-looking statements are
subject to risks, uncertainties, and other factors, many of which
are outside of the Company's control, that could cause actual
results to differ (sometimes materially) from the results expressed
or implied in the forward-looking statements, including, among
others: the Company's ability to compete against new and existing
competitors; its ability to effectively integrate and grow its
acquired companies; its ability to identify additional acquisition
targets and close additional acquisitions; the impact on the
Company's revenue due to a delay in the U.S. Congress approving a
federal budget; and the Company's ability to maintain the listing
of its common stock on the NYSE American LLC. For a more detailed
description of these and other risk factors, please refer to the
Company's Annual Report on Form 10-K and its Quarterly Reports on
Form 10-Q and other filings with the Securities and Exchange
Commission ("SEC") which can be viewed at www.sec.gov. All
forward-looking statements are inherently uncertain, based on
current expectations and assumptions concerning future events or
the future performance of the Company. Readers are cautioned not to
place undue reliance on these forward-looking statements, which are
only predictions and speak only as of the date hereof. The Company
expressly disclaims any intent or obligation to update any of the
forward-looking statements made in this release or in any of its
SEC filings except as may be otherwise stated by the Company.
Non-GAAP Financial Measures and Key
Performance Metrics
This press release contains Non-GAAP Recurring
Cash Operating Profit (Loss), which is a Non-GAAP financial measure
that is used by management to measure the Company's operating
performance. A reconciliation of this measure to the most directly
comparable GAAP financial measure is contained herein. To the
extent required, statements disclosing this measure's definition,
utility, and purpose are also set forth herein.
Definition: Non-GAAP Recurring Cash Operating
Profit (Loss) represents the Company's GAAP operating loss,
excluding non-cash charges such as stock-based compensation,
depreciation, amortization, and change in the value of contingent
earnout, as well as, any non-recurring charges.
Utility and Purpose: The Company discloses
Non-GAAP Recurring Cash Operating Profit (Loss) because this
Non-GAAP measure is used by management to evaluate our business,
measure its operating performance, and make strategic decisions. We
believe Non-GAAP Recurring Cash Operating Profit (Loss) is useful
for investors and others in understanding and evaluating our
operating results in the same manner as its management. However,
Non-GAAP Recurring Cash Operating Profit (Loss) is not a financial
measure calculated in accordance with GAAP and should not be
considered as a substitute for GAAP operating loss or any other
operating performance measure calculated in accordance with GAAP.
Using this Non-GAAP measure to analyze our business would have
material limitations because the calculations are based on the
subjective determination of management regarding the nature and
classification of events and circumstances that investors may find
significant. In addition, although other companies in our industry
may report a measure titled Non-GAAP Recurring Cash Operating
Profit (Loss), this measure may be calculated differently from how
we calculate this Non-GAAP financial measure, which reduces its
overall usefulness as a comparative measure. Because of these
inherent limitations, you should consider Non-GAAP Recurring Cash
Operating Profit (Loss) alongside other financial performance
measures, including net loss and our other financial results
presented in accordance with GAAP.
Castellum,
Inc. Reconciliation of unaudited Non-GAAP
Recurring Cash Operating Profit to Operating Loss
Three Months Ended September 30, 2023 |
|
Revenues |
$ |
11,741,164 |
|
Gross profit |
|
4,837,475 |
|
Operating loss |
|
(8,573,382 |
) |
|
|
Non-cash charges: |
|
Depreciation
and amortization |
|
674,865 |
|
Stock based
compensation |
|
1,174,164 |
|
Impairment
loss |
|
6,919,094 |
|
Total non-cash charges |
|
8,768,123 |
|
|
|
Non-GAAP Recurring Cash Operating Profit |
$ |
194,741 |
|
Contact:
Mark Fuller, President & CEO
info@castellumus.com 301-961-4895
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/2e5f25e4-7d7c-4817-be33-ccd3f7e0d431.
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