ToughBuilt Industries Announces Second Quarter 2022 Results
August 19 2022 - 8:30AM
ToughBuilt Industries,
Inc. ("ToughBuilt") (NASDAQ: TBLT;
TBLTW), today reported financial results for the second
quarter ended June 30, 2022. The Company will discuss the results,
and a business update, during the Company’s earnings conference
call scheduled for 5:00 p.m. (ET) today.
Second Quarter 2002 and Subsequent Financial
Highlights:
-
Revenues for the three months ended June 30, 2022, were
approximately $17.9 million, an increase of 12.8% compared to the
same period in 2021. The increase in revenue was primarily the
result of expanded acceptance of ToughBuilt products. This was a
result of recurring orders from existing customers and addition of
new customers and new product launches.
-
Operating expenses were approximately $17.3 million in the second
quarter of 2022, compared to approximately $10.7 million in the
second quarter of 2021. The increase in operating expenses was
primarily due to increased shipping costs, headcount, marketing,
and advertising, as well as fees related to product research and
development.
-
However, compared to Q1 2022, Q2 2022 expenses decreased from $18.5
million to $17.2 million as a result of our operational cost
cutting efforts, reduction in shipping costs and slowdown in hiring
and general expenditure.
-
Net loss attributable to common stockholders in the second quarter
of 2022 was approximately $12.1 million, or $9.45 per share,
compared to a net loss of approximately $7.4 million, or $13.64 per
share in the second quarter of 2021.
-
Closed $20 million Private Placement priced at a premium to
market.
-
Reported $3.56 million in Q2 2022 sales through Amazon.
Michael Panosian, ToughBuilt’s CEO, commented,
“The second quarter of 2022 saw sales growth of 13% over the same
period last year. We remain focused on expanding the national and
global distribution of our product lines and have already seen
validating success through partnerships with leading retailers.
This expansion of distribution and participating in multiple
categories is and will increase revenue to help us reach
profitability in 2023.” Panosian continued, “ToughBuilt remains on
track to accelerate growth in the second half of the year with the
launch of five to ten new product lines and plans to continue to
leverage new and existing partnerships. As a result of this
initiatives, combined with our cost cutting efforts, we expect to
grow approximately 25% in 2022 and are targeting profitability in
2023.”
Second Quarter 2022 Business Highlights:
-
Second quarter 2022 Amazon.com gross sales increased by 41% to
approximately $3.54 million, compared to approximately $2.4 million
for the second quarter of 2021.
-
Expanded Distribution in Spain and Enters into Supply Agreements
with Predominate Hardware Distributor and a Hardware
Super-Cooperative.
-
Launched 93 products on Amazon Italy and Amazon Germany.
-
Launched 35 products in Ace Hardware Locations.
The foregoing discussion highlights certain information
contained in the Company’s quarterly report on Form 10-Q filed with
the U.S. Securities and Exchange Commission (the “SEC”) earlier
today and does not intend to be complete. Investors should read the
foregoing discussion together with the Company’s unaudited
consolidated financial statements and related notes thereto and the
Management’s Discussion and Analysis of Financial Condition and
Results of Operations (MD&A) included in the Company’s Form
10-Q, and in conjunction with the Company’s Form 10-K for the year
ended December 31, 2021 filed with the SEC on April 18, 2022
available on the SEC’s website at www.sec.gov.
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. 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.
REPLAY U.S. TOLL-FREE: 1-844-512-2921
REPLAY INTERNATIONAL: 1-412-317-6671
REPLAY PIN: 13732326
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, (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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