SCHMITT ANNOUNCES FY22 Q3 RESULTS AND STRATEGIC INTENTION TO FOCUS ON AMPLE HILLS CREAMERY

"The Board and I are excited about the potential for Ample Hills. Given this potential and in line with our long-term strategy to increase shareholder value, we believe a strategic focus on the Ample Hills business will allow us to accelerate growth," said
Ample Hills has signed four new leases, including the recently announced Upper
In conjunction with the focus on Ample Hills, Schmitt is announcing a strategic review of its Schmitt Measurement Systems ("SMS") business lines based in
"In line with the Board's announcement, we are pursuing a strategic review of both the Xact and Acuity business lines," said
Schmitt will provide further details when available on the transition plan. The full transition of Ample Hills and SMS is expected to take place in the 2022 calendar year.
FY22 3Q Earnings Highlights
Schmitt announced its operating results for the fiscal quarter ended
- Consolidated revenues increased
$180,469 , or 10.8%, to$1,848,913 . - Ice Cream Segment revenue increased
$351,190 , or 56.5%, to$972,920 . - Gross margin increased to 50.7% for the three months ended
February 28, 2022 , as compared to 49.8% for the three months endedFebruary 28, 2021 . - Operating expenses decreased
$12,491 , or 0.4% to$3,323,159 . - Operating loss was (
$2,386,322 ) for the three months endedFebruary 28, 2022 , as compared to ($2,504,460 ) for the three months endedFebruary 28, 2021 . - Net loss was (
$893,244 ), or ($0.24 ), per fully diluted share, for the three months endedFebruary 28, 2022 . - The Company finished the quarter with
$1,999,241 in cash, as compared to$4,032,690 for the year endedMay 31, 2021 .
"Ample Hills continues to perform well with increased revenue performance on a same store basis. The team is driving forward with our growth plans and we are excited to continue to open new locations this year while bringing our unique and best in class ice cream to our fans and the neighborhoods we serve," said
"As we look ahead, I want to thank all of our Schmitt team members for their passion and commitment. We are excited for our business lines as we evaluate the best vehicles for each to maximize their potential and better serve our customers and business partners while enhancing value for our team and all stakeholders."
Summary data for the three months ended
Three Months Ended |
|||||||||||||||||||||||||||
|
Change |
||||||||||||||||||||||||||
2022 |
2021 |
$ |
% |
||||||||||||||||||||||||
Net sales |
$ |
1,848,913 |
100.0% |
$ |
1,668,444 |
100.0% |
$ |
180,469 |
10.8% |
||||||||||||||||||
Gross margin |
50.7% |
- |
49.8% |
- |
- |
- |
|||||||||||||||||||||
Operating expenses |
$ |
3,323,159 |
179.7% |
$ |
3,335,650 |
199.9% |
$ |
(12,491) |
(0.4%) |
||||||||||||||||||
Net loss |
$ |
(893,244) |
(48.3)% |
$ |
(2,419,797) |
145.0% |
$ |
1,526,553 |
63.1% |
||||||||||||||||||
Net loss per common share, |
$ |
(0.24) |
- |
$ |
(0.64) |
- |
$ |
0.41 |
63.3% |
||||||||||||||||||
Summary data for the nine months ended
Nine Months Ended |
|||||||||||||||||||||||||||
|
Change |
||||||||||||||||||||||||||
2022 |
2021 |
$ |
% |
||||||||||||||||||||||||
Net sales |
$ |
8,570,053 |
100.0% |
$ |
5,205,641 |
100.0% |
$ |
3,364,412 |
64.6% |
||||||||||||||||||
Gross margin |
57.8% |
- |
46.1% |
- |
- |
- |
|||||||||||||||||||||
Operating expenses |
$ |
11,630,580 |
135.7% |
$ |
8,674,379 |
166.6% |
$ |
2,956,201 |
34.1% |
||||||||||||||||||
Net income (loss) |
$ |
249,629 |
2.9% |
$ |
(4,635,607) |
(89.0%) |
$ |
4,885,236 |
105.4% |
||||||||||||||||||
Net income (loss) per common |
$ |
0.07 |
- |
$ |
(1.23) |
- |
$ |
1.30 |
105.3% |
||||||||||||||||||
Reconciliation of Adjusted EBITDA for the Three Months Ended
Three Months Ended |
|||||||
2022 |
2021 |
||||||
Income (loss) before income taxes |
$ |
(884,976) |
$ |
(2,421,434) |
|||
Depreciation and amortization |
106,851 |
120,647 |
|||||
Interest expense |
8,232 |
5,400 |
|||||
EBITDA |
$ |
(769,893) |
$ |
(2,295,387) |
|||
Adjusted for: |
|||||||
Bargain purchase gain |
- |
(2,277) |
|||||
Stock-based compensation |
25,647 |
(82,936) |
|||||
Adjusted EBITDA |
$ |
(744,246) |
$ |
(2,380,600) |
Reconciliation of Adjusted EBITDA for the Nine Months Ended
Nine Months Ended |
|||||||
2022 |
2021 |
||||||
Income (loss) before income taxes |
$ |
264,247 |
$ |
(5,040,274) |
|||
Depreciation and amortization |
401,448 |
307,732 |
|||||
Interest expense |
37,811 |
12,854 |
|||||
EBITDA |
$ |
703,506 |
$ |
(4,719,688) |
|||
Adjusted for: |
|||||||
Gain on sale of property and equipment |
(4,598,095) |
- |
|||||
Bargain purchase gain |
- |
(1,187,235) |
|||||
Stock-based compensation |
95,016 |
168,435 |
|||||
Transaction fees and reorganization expenses |
- |
125,167 |
|||||
Adjusted EBITDA |
$ |
(3,799,573) |
$ |
(5,613,321) |
Reconciliation of Adjusted Net loss and Non-GAAP EPS for the Three Months Ended
Three Months Ended |
|||||||
2022 |
2021 |
||||||
Net loss |
$ |
(893,244) |
$ |
(2,419,797) |
|||
Adjusted for: |
|||||||
Bargain purchase gain |
- |
(2,277) |
|||||
Stock-based compensation |
25,647 |
(82,936) |
|||||
Tax effect of adjustments |
(6,412) |
21,303 |
|||||
Adjusted loss (Non-GAAP) |
$ |
(874,009) |
$ |
(2,483,707) |
|||
Non-GAAP loss per fully diluted share |
$ |
(0.23) |
$ |
(0.66) |
Reconciliation of Adjusted Net income (loss) and Non-GAAP EPS for the Nine Months Ended
Nine Months Ended |
|||||||
2022 |
2021 |
||||||
Net income (loss) |
$ |
249,629 |
$ |
(4,635,607) |
|||
Adjusted for: |
|||||||
Gain on sale of property and equipment |
(4,598,095) |
- |
|||||
Bargain purchase gain |
- |
(1,187,235) |
|||||
Stock-based compensation |
95,016 |
168,435 |
|||||
Tax effect of adjustments |
1,125,770 |
254,700 |
|||||
Adjusted loss (Non-GAAP) |
$ |
(3,127,680) |
$ |
(5,399,707) |
|||
Non-GAAP loss per fully diluted share |
$ |
(0.82) |
$ |
(1.44) |
Use of Non-GAAP Financial Measures by
This release presents the non-GAAP financial measures "Adjusted EBITDA", "Adjusted net loss (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 Ample Hills acquisition, related transaction and re-organization expenses, income from discontinued product line and stock-based compensation.
About
Schmitt is a holding company owning subsidiaries engaged in diverse business activities. The Company was originally incorporated under the laws of
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 |
View original content:https://www.prnewswire.com/news-releases/schmitt-announces-fy22-q3-results-and-strategic-intention-to-focus-on-ample-hills-creamery-301526274.html
SOURCE