Schmitt Announces Fiscal 2021 Operating Results

For the year ended
Gross margins decreased to 41.6% for Fiscal 2021 from 46.6% in Fiscal 2020. The decrease primarily due to lower gross margins in the newly acquired Ice Cream Segment and increased material costs for the Measurement Segment due to market effects of the COVID-19 pandemic.
Operating expenses for Fiscal 2021 increased to
Net loss from continuing operations was (
The Company finished the year ended
"
"For our Measurement Segment, our
"As we look ahead, we are focusing on our cash positions to continue to further invest in our businesses."
Real Estate Update
Schmitt listed the 28th Street building for sale on
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Consolidated Balance Sheets |
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Fiscal Year Ended |
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2021 |
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2020 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
4,032,690 |
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$ |
10,146,531 |
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Restricted cash |
|
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— |
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|
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420,000 |
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Accounts receivable, net |
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1,154,645 |
|
|
|
574,926 |
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Inventories |
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1,553,310 |
|
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1,059,357 |
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Prepaid expenses |
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|
198,345 |
|
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60,674 |
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Income taxes receivable |
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|
18,057 |
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|
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— |
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Total current assets |
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6,957,047 |
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12,261,488 |
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Leasehold assets |
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10,448,486 |
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— |
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Property and equipment, net |
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2,824,017 |
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652,136 |
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Property and equipment held for sale, net |
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174,847 |
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|
— |
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Leasehold, utilities, and ERP deposits |
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|
431,808 |
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— |
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Other assets |
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Intangible assets, net |
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337,725 |
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|
287,602 |
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TOTAL ASSETS |
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$ |
21,173,930 |
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$ |
13,201,226 |
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LIABILITIES & STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
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$ |
583,750 |
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$ |
267,660 |
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Accrued commissions |
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|
60,614 |
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|
41,450 |
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Accrued payroll liabilities |
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|
527,608 |
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|
86,372 |
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Accrued liabilities |
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465,146 |
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265,349 |
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Customer deposits and prepayments |
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93,364 |
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12,239 |
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Other accrued liabilities |
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694,590 |
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587,492 |
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Income taxes payable |
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— |
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47,462 |
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Current portion of long-term lease liabilities |
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1,042,331 |
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|
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— |
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Current portion of long-term debt |
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541,691 |
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— |
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Total current liabilities |
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4,009,094 |
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1,308,024 |
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Long-term debt |
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3,253,389 |
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— |
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Long-term leasehold liabilities |
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10,141,864 |
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— |
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Total liabilities |
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17,404,347 |
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1,308,024 |
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Stockholders' equity |
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Common stock, no par value, 20,000,000 shares authorized, 4,204,553 and |
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12,223,359 |
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12,257,306 |
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Accumulated deficit |
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(8,453,776) |
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(364,104) |
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Total stockholders' equity |
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3,769,583 |
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11,893,202 |
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
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$ |
21,173,930 |
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$ |
13,201,226 |
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The accompanying notes are an integral part of these consolidated financial statements. |
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Consolidated Statements of Operations and Comprehensive (Loss) Income |
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Fiscal Year Ended |
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2021 |
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2020 |
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Net sales |
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$ |
7,864,350 |
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$ |
4,189,924 |
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Cost of revenue |
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4,593,588 |
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2,239,376 |
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Gross profit |
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3,270,762 |
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1,950,548 |
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Operating expenses: |
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General, administrative and sales |
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12,045,174 |
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4,061,621 |
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Impairment of intangible assets |
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|
903,422 |
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— |
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Transaction costs |
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125,167 |
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— |
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Research and development |
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83,130 |
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68,849 |
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Total operating expenses |
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13,156,893 |
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4,130,470 |
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Operating loss |
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(9,886,131) |
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(2,179,922) |
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Bargain purchase gain |
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1,138,808 |
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— |
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Interest expense |
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(19,038) |
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— |
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Other income, net |
|
|
273,023 |
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|
322,980 |
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Loss before income taxes |
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(8,493,338) |
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(1,856,942) |
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Income tax benefit from continuing operations |
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(403,666) |
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(14,638) |
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Net loss from continuing operations |
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(8,089,672) |
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|
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(1,842,304) |
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Income from discontinued operations, including gain on sale, net of tax |
|
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— |
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|
|
5,722,879 |
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Net (loss) income |
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$ |
(8,089,672) |
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|
$ |
3,880,575 |
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Net loss per common share from continuing operations: |
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Basic |
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$ |
(2.15) |
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$ |
(0.47) |
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Weighted-average number of common shares, basic |
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3,765,783 |
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3,939,833 |
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Diluted |
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$ |
(2.15) |
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$ |
(0.47) |
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Weighted-average number of common shares, diluted |
|
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3,765,783 |
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3,939,833 |
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Net income per common share from discontinued operations: |
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Basic |
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$ |
— |
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$ |
1.45 |
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Weighted-average number of common shares, basic |
|
|
3,765,783 |
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3,939,833 |
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Diluted |
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$ |
— |
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$ |
1.45 |
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Weighted-average number of common shares, diluted |
|
|
3,765,783 |
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3,939,833 |
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Net (loss) income per common share: |
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Basic |
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$ |
(2.15) |
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$ |
0.98 |
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Weighted-average number of common shares, basic |
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|
3,765,783 |
|
|
|
3,939,833 |
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Diluted |
|
$ |
(2.15) |
|
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$ |
0.98 |
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Weighted-average number of common shares, diluted |
|
|
3,765,783 |
|
|
|
3,939,833 |
|
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|
|
|
|
|
|
|
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Comprehensive (loss) income |
|
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Net (loss) income |
|
$ |
(8,089,672) |
|
|
$ |
3,880,575 |
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Total comprehensive (loss) income |
|
$ |
(8,089,672) |
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|
$ |
3,880,575 |
|
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The accompanying notes are an integral part of these consolidated financial statements. |
Consolidated Summary Data for the Three Months and Fiscal Year Ended
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Three Months Ended, |
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Change |
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2021 |
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2020 |
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$ |
|
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% |
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Revenue, net |
$ |
2,658,709 |
|
|
$ |
967,708 |
|
|
$ |
1,691,001 |
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|
174.7% |
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Gross margin |
|
32.7% |
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49.7% |
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Operating expenses |
$ |
4,482,514 |
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$ |
1,312,283 |
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$ |
3,151,154 |
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236.7% |
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Net loss from continuing operations |
$ |
(3,454,065) |
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$ |
(703,823) |
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$ |
(2,737,671) |
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389.0% |
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Net loss per common shares from continued operations, |
$ |
(0.92) |
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|
$ |
(0.18) |
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|
$ |
(0.73) |
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(405.5%) |
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Fiscal Year Ended, |
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Change |
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2021 |
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2020 |
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|
$ |
|
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% |
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Revenue, net |
$ |
7,864,350 |
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$ |
4,189,924 |
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$ |
3,674,426 |
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87.7% |
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Gross margin |
|
41.6% |
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|
46.6 |
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|
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Operating expenses |
$ |
13,156,893 |
|
|
$ |
4,130,470 |
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|
$ |
9,026,423 |
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218.5% |
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Net loss from continuing operations |
$ |
(8,089,672) |
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|
$ |
(1,842,304) |
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|
$ |
(6,253,812) |
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(339.5%) |
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Net loss per common shares from continued operations, |
$ |
(2.15) |
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|
$ |
(0.47) |
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|
$ |
(1.68) |
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(357.4%) |
Segment Summary Data for the Three Months and Fiscal Year Ended
Measurement Segment
|
Three Months Ended, |
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Change |
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2021 |
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2020 |
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$ |
|
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% |
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Revenue, net |
$ |
897,412 |
|
|
$ |
967,078 |
|
|
$ |
(69,666) |
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(7.2%) |
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Gross margin |
|
24.9% |
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|
|
49.6% |
|
|
|
|
|
|
|
|||
Operating expenses |
$ |
917,493 |
|
|
$ |
1,312,283 |
|
|
$ |
34,718 |
|
|
2.61% |
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Net loss from continuing operations |
$ |
(465,203) |
|
|
$ |
(703,823) |
|
|
$ |
238,527 |
|
|
33.9% |
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Net loss per common shares from continued operations, |
$ |
(0.12) |
|
|
$ |
(0.18) |
|
|
$ |
0.06 |
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|
33.3% |
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Fiscal Year Ended, |
|
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Change |
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|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
||||
Revenue, net |
$ |
3,820,914 |
|
|
$ |
4,189,924 |
|
|
$ |
(369,010) |
|
|
8.8% |
|
Gross margin |
$ |
44.0% |
|
|
|
46.6% |
|
|
|
2.6% |
|
|
|
|
Operating expenses |
$ |
3,745,446 |
|
|
|
4,130,470 |
|
|
$ |
385,024 |
|
|
9.3% |
|
Net loss from continuing operations |
$ |
(1,789,814) |
|
|
$ |
(1,842,304) |
|
|
$ |
52,492 |
|
|
2.11% |
|
Net loss per common shares from continued operations, |
$ |
(0.48) |
|
|
$ |
(0.47) |
|
|
$ |
- |
|
|
- |
|
|
|
|
|
|
|
|
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|
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|
Ice Cream Segment
|
Three Months Ended, |
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Change |
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|
|
2021 |
|
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2020 |
|
|
$ |
|
|
% |
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Revenue, net |
$ |
1,761,297 |
|
|
$ |
- |
|
$ |
1,761,297 |
|
|
100.0% |
|
Gross margin |
|
36.7% |
|
|
|
- |
|
|
36.1% |
|
|
|
|
Operating expenses |
$ |
3,565,021 |
|
|
$ |
- |
|
$ |
3,174,236 |
|
|
100.0% |
|
Net loss from continuing operations |
$ |
(2,988,862) |
|
|
$ |
- |
|
$ |
(2,996,384) |
|
|
100.0% |
|
Net loss per common shares from continued operations, |
$ |
(0.79) |
|
|
$ |
- |
|
$ |
(0.79) |
|
|
100.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended, |
|
Change |
|||||||||||||
|
|
2021 |
|
|
2020 |
|
|
$ |
|
|
% |
|||||
Revenue, net |
$ |
4,043,436 |
|
|
$ |
- |
|
$ |
4,043,436 |
|
|
100.0% |
||||
Gross margin |
|
39.4% |
|
|
|
- |
|
|
39.4% |
|
|
|
||||
Operating expenses |
$ |
9,411,447 |
|
|
$ |
- |
|
$ |
9,411,447 |
|
|
100.0% |
||||
Net loss from continuing operations |
$ |
(6,299,858) |
|
|
$ |
- |
|
$ |
(6,299,858) |
|
|
100.0% |
||||
Net loss per common shares from continued operations, |
$ |
(1.67) |
|
|
$ |
- |
|
$ |
(1.67) |
|
|
100.0% |
Consolidated Reconciliation of Adjusted EBITDA for the Three Months and Fiscal Year Ended
|
|
Three Months Ended |
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|
|
2021 |
|
|
2020 |
||
|
|
|
|
|
|
|
|
Loss before income taxes from continuing operations |
|
$ |
3,453,064 |
|
|
$ |
(706,426) |
Depreciation and amortization |
|
|
241,491 |
|
|
|
40,057 |
EBITDA from continuing operations |
|
$ |
(3,211,573) |
|
|
$ |
(666,369) |
Adjusted for: |
|
|
|
|
|
|
|
Bargain purchase gain |
|
|
48,427 |
|
|
|
- |
Impairment of intangible assets |
|
|
903,422 |
|
|
|
- |
Stock-based compensation |
|
|
103,052 |
|
|
|
27,324 |
Income from discontinued product line |
|
|
10,206 |
|
|
|
(33,210) |
Reorganization, legal, and transaction fees |
|
|
- |
|
|
|
240,233 |
Unrecoverable inventory costs |
|
|
- |
|
|
|
- |
Software write-downs and recoveries |
|
|
- |
|
|
|
(40,469) |
Adjusted EBITDA from continuing operations |
|
$ |
(2,146,466) |
|
|
$ |
(472,491) |
|
|
Fiscal Year Ended |
|||||
|
|
2021 |
|
2020 |
|||
|
|
|
|
|
|
|
|
Loss before income taxes from continuing operations |
|
$ |
(8,493,338) |
|
|
$ |
(1,856,942) |
Depreciation and amortization |
|
|
549,223 |
|
|
|
161,137 |
EBITDA from continuing operations |
|
$ |
(7,944,115) |
|
|
$ |
(1,695,805) |
Adjusted for: |
|
|
|
|
|
|
|
Bargain purchase gain |
|
|
(1,138,808) |
|
|
|
- |
Impairment of intangible assets |
|
|
903,422 |
|
|
|
- |
Stock-based compensation |
|
|
266,545 |
|
|
|
354,048 |
Income from discontinued product line |
|
|
(46,934) |
|
|
|
(167,479) |
Reorganization, legal, and transaction fees |
|
|
125,167 |
|
|
|
842,162 |
Unrecoverable inventory costs |
|
|
- |
|
|
|
76,099 |
Software write-downs and recoveries |
|
|
- |
|
|
|
17,473 |
Adjusted EBITDA from continuing operations |
|
$ |
(7,834,723) |
|
|
$ |
(573,502) |
Use of Non-GAAP Financial Measures by
This release presents the non-GAAP financial measures "Adjusted EBITDA from continuing operations", "Adjusted net loss from continuing operations (Non-GAAP)", and "Non-GAAP loss per fully diluted share." The most directly comparable measure for these non-GAAP financial measures are net income and basic and diluted net income per share. The Company presents adjusted EBITDA after excluding the bargain purchase gain related to the
A discussion of the reasons why management believes that the presentation of non-GAAP financial measures provides useful information to investors regarding Schmitt's financial condition and results of operations is included as Exhibit 10.5 to Schmitt's report on Form 8-K filed with the
About
FORWARD-LOOKING STATEMENTS
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
For further information regarding risks and uncertainties associated with the Company's business, please refer to Schmitt's
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: |
(503) 227-7908 or visit our website at www.schmitt-ind.com |
|
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