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Press Release

Schmitt Announces Positive First Quarter 2020 Operating Results and Annual Shareholders Meeting

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Oct 8, 2019

PORTLAND, Ore., Oct. 08, 2019 (GLOBE NEWSWIRE) -- Schmitt Industries, Inc. (NASDAQ: SMIT) (the “Company” or “Schmitt”) today announced its operating results for the first quarter of Fiscal 2020.

Highlights of the quarter ended August 31, 2019:

  • Consolidated revenue decreased $98,568, or 2.9%, to $3,341,885 for the three months ended August 31, 2019 from $3,440,453 for three months ended August 31, 2018, attributed to a decrease in Measurement segment revenue.
  • Balancer segment revenue increased $52,775, or 2.4%, to $2,247,107 for the three months ended August 31, 2019 as compared to $2,194,332 for the three months ended August 31, 2018, attributed to growth in the North American market.
  • Measurement segment revenue decreased $151,343, or 12.1%, to $1,094,778 for the three months ended August 31, 2019 as compared to $1,246,121 for the three months ended August 31, 2018, attributed to a decrease in Xact product revenue. Xact’s services in the “Internet of Things” environment continued to grow with monitoring revenue increasing 16.3% to $367,841 for the three months ended August 31, 2019 as compared to $316,173 for the three months ended August 31, 2018.
  • Operating expenses decreased $162,426, or 11.2%, to $1,291,174 for the three months ended August 31, 2019 from $1,453,600 for the three months ended August 31, 2018.
  • Net income (loss) was $169,808, or $0.04 per fully diluted share, for the three months ended August 31, 2019 as compared to net income (loss) of $(211,819), or $(0.05) per fully diluted share, for the three months ended August 31, 2018.

Michael Zapata, Chief Executive Officer and President, commented, “I would like to thank management and the entire Schmitt team for their commitment and hard work as we have implemented change these past nine months. The reorganization, which was announced December 2018, has led to our profitability and increased our cash flow position, with positive net income and earnings per share gains as we enter fiscal year 2020. While there is much to do, this quarter is one key step in the right direction and shows true improvement over prior practices.”

Schmitt’s 2019 Annual Meeting of Shareholders

Schmitt’s 2019 Annual Meeting of Shareholders will be held on December 5, 2019, in Portland, Oregon. The Company expects a record date of October 21, 2019, with an expected mailing date of November 4, 2019.

Summary data for the three months ended August 31, 2019 and 2018:
 Three Months Ended August 31,       
 2019 2018 Change ($) Change (%)
Total net revenue$3,341,885  $3,440,453  $(98,568) (2.9%)
Balancer segment 2,247,107   2,194,332   52,775  2.4%
Measurement segment 1,094,778   1,246,121   (151,343) (12.1%)
Gross margin 46.7%  38.9%       
Operating expenses$1,291,174  $1,453,600   (162,426) (11.2%)
Net income (loss)$169,808  $(211,819)  381,627    
Net income (loss) per fully diluted share$0.04  $(0.05)       

About Schmitt Industries

Schmitt Industries, Inc. (“Schmitt” or the “Company”), founded in 1987, designs, manufactures and sells high precision test and measurement products, solutions and services through our SBS®, Acuity® and Xact® product lines, which are reported in two business segments. In the Balancer segment, our SBS product line provides computer-controlled vibration detection, balancing and process control systems for the worldwide machine tool industry. In the Measurement segment, our Acuity line provides laser and white light sensor distance measurement and dimensional sizing products, and our Xact line provides ultrasonic-based remote tank monitoring products and related monitoring revenues for markets in the Internet of Things environment.


This document may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. A complete discussion of the risks and uncertainties that may affect Schmitt’s business, including the business of its subsidiary, is included in “Risk Factors” in the Company’s most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.

For further information regarding risks and uncertainties associated with the Company’s business, please refer to Schmitt’s SEC filings, including, but not limited to, its Forms 10-K, 10-Q and 8-K.

The forward-looking statements in this release speak only as of the date on which they were made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes to this document made by wire services or internet service providers.

For more information contact:Michael R. Zapata, President and CEO
Ann M. Ferguson, CFO and Treasurer
(503) 227-7908 or visit our web site at www.schmitt-ind.com


 August 31, 2019 May 31, 2019
Current assets     
Cash and cash equivalents$1,592,847  $1,411,732 
Restricted cash 54,895   55,703 
Accounts receivable, net 2,004,159   1,996,240 
Inventories 5,019,109   5,019,044 
Prepaid expenses 155,405   150,975 
Total current assets 8,826,415   8,633,694 
Property and equipment, net 817,478   839,374 
Other assets      
Intangible assets, net 366,039   392,185 
Operating lease right-of-use assets 102,767   - 
TOTAL ASSETS$10,112,699  $9,865,253 
Current liabilities     
Accounts payable$505,496  $496,362 
Accrued commissions 173,491   200,116 
Accrued payroll liabilities 171,768   239,476 
Customer deposits and prepayments 197,982   188,236 
Other accrued liabilities 127,635   218,268 
Income taxes payable 14,134   491 
Current portion of long-term liabilities 21,258   20,828 
Current portion of operating lease liabilities 32,721   - 
Total current liabilities  1,244,485   1,363,777 
Long-term liabilities 23,065   28,543 
Long-term operating lease liabilities 70,046   - 
Total liabilities 1,337,596   1,392,320 
Stockholders’ equity     
Common stock, no par value, 20,000,000 shares authorized, 4,032,878 shares   
issued and outstanding at August 31, 2019 and May 31, 2019 13,317,453   13,245,439 
Accumulated other comprehensive loss (467,479)  (527,827)
Accumulated deficit (4,074,871)  (4,244,679)
Total stockholders’ equity 8,775,103   8,472,933 

 Three Months Ended August 31,
 2019 2018
Net revenue$3,341,885  $3,440,453 
Cost of revenue 1,781,547   2,100,655 
Gross profit 1,560,338   1,339,798 
Operating expenses:     
General, administration and sales 1,279,007   1,405,363 
Research and development 12,167   48,237 
Total operating expenses 1,291,174   1,453,600 
Operating income (loss) 269,164   (113,802)
Other income (expense), net (83,388)  (91,651)
Income (loss) before income taxes 185,776   (205,453)
Provision for income taxes 15,968   6,366 
Net income (loss)$169,808  $(211,819)
Net income (loss) per common share, basic$0.04  $(0.05)
Weighted average number of common shares, basic 4,032,878   3,994,545 
Net income (loss) per common share, diluted$0.04  $(0.05)
Weighted average number of common shares, diluted 4,059,279   3,994,545 

Schmitt Industries, Inc.

Source: Schmitt Industries, Inc.