Toughbuilt Industries Announces Fourth Quarter and Full Year 2022 Results
March 15 2023 - 4:05PM
ToughBuilt Industries,
Inc. ("ToughBuilt") (NASDAQ: TBLT;
TBLTW), today reported financial results for the fourth
quarter and full year ended December 31, 2022.
Twelve Months Ended December 31, 2022 Financial
Highlights:
-
Revenues for the twelve months ended December 31, 2022, were
approximately $94.9 million, an increase of 36% compared to 2021.
The increase in revenue was primarily the result of wide acceptance
of ToughBuilt products, and a combination of onboarding new retail
customers, introduction of new SKUs and continued demand for our
existing products.
-
Gross profit increased to approximately $21.8 million in 2022,
compared to approximately $19.1 million in 2021. 2022 gross profit
margins were 27.2%, compared to 23% in 2021. Margins increased due
to the decrease of shipping rates and overall logistics
improvements.
-
Operating expenses were approximately $58.4 million in the full
year of 2022, compared to approximately $51.4 million in 2021. The
increase in operating expenses was primarily due to the hiring
additional employees and marketing expenses to grow the
Company.
- Net
loss attributable to common stockholders in the full year of 2022
was approximately $39.8 million, or $(7.16) loss per share,
compared to a net loss of approximately $37.5 million, or $(56.08)
loss per share in the full year of 2021.
Three Months Ended December 31, 2022 Financial
Highlights:
-
Revenues for the fourth quarter of 2022 increased 20% to $29.6
million, compared to $24.7 million in the fourth quarter of 2021.
The increase in revenue was primarily due to to wide acceptance of
our products, receipt of recurring sales orders for metal goods and
soft goods from our existing and new customers, and the
introduction of new soft and electronic goods products to our
customers.
Michael Panosian, ToughBuilt’s CEO, commented,
“In 2022 we successfully executed our plan to launch 5-10 new
products as well as drove new SKU units into existing retail
partnerships. We are pleased to report record breaking revenue of
$94.9 million, we look forward to carrying this momentum through
this year.”
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
5:00pm ET today.
To attend the conference call, please dial one
of the teleconference numbers below or follow the live audio
webcast here: Q4 Earnings Call. Attendees are encouraged to dial in
to the conference call at least five minutes prior to the start
time.
U.S. TOLL-FREE: 1-877-407-9716
INTERNATIONAL: 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: Q4
Earnings Call.
REPLAY U.S. TOLL-FREE:
1-844-512-2921 REPLAY INTERNATIONAL:
1-412-317-6671REPLAY PIN: 13736816
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 STATEMENTSThis 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) the impact of the worldwide COVID-19 pandemic
and government actions, on our business, (ii) supply chain
disruptions, (iii) market acceptance of our existing and new
products, (iv) delays in bringing products to key markets; (v) an
inability to secure regulatory approvals for the ability to sell
our products in certain markets, (vi) intense competition in our
industry from much larger, multinational companies, (vii) product
liability claims, (viii) product malfunctions, (ix) our limited
manufacturing capabilities and reliance on subcontractors for
assistance, (x) our efforts to successfully obtain and maintain
intellectual property protection covering our products or defend
ourselves from third parties’ infringement claims, (xi) our
reliance on a single supplier for certain product components, (xii)
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 (xiii) the fact
that we conduct business in multiple foreign jurisdictions,
exposing us to tariffs, 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 and (xiv) changes in e-commerce
marketplaces. 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 our Annual
Report on Form 10-K and our subsequent 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 encourages you to consider all of
these risks, uncertainties and other factors carefully in
evaluating the forward-looking statements contained in this press
release. As a result of these matters, changes in facts,
assumptions not being realized or other circumstances, the
Company's actual results may differ materially from the expected
results discussed in the forward-looking statements contained in
this press release. The forward-looking statements made in this
press release are made only as of the date of this press release,
and the Company undertakes no obligation to update them to reflect
subsequent events or circumstances.
Investor Relations Contact:KCSA Strategic
CommunicationsDavid Hanovertoughbuilt@kcsa.com
Source: ToughBuilt Industries, Inc
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