Schmitt Announces Second Quarter Fiscal 2021 Operating Results

Highlights of the three months and six months ended
- Consolidated revenues increased
$996,610 , or 96.5%, to$2,029,712 for the three months endedNovember 30, 2020 , as compared to$1,033,102 for the three months endedNovember 30, 2019 . For the six months endedNovember 30, 2020 , consolidated revenues increased$1,409,318 , or 66.2%, to$3,537,197 , as compared to$2,127,879 for the six months endedNovember 30, 2019 . - The company's newly formed Ice Cream Segment's first full quarter of operations generated revenues of
$1,158,989 for the three months endedNovember 30, 2020 . From the date of the Company's acquisition of Ample Hills onJuly 9, 2020 throughNovember 30, 2020 , the ice cream segment generated revenue of$1,660,409 . - Measurement Segment revenue decreased
$162,379 , or 15.7%, to$870,723 for the three months endedNovember 30, 2020 , as compared to$1,033,102 for the three months endedNovember 30, 2019 . Measurement Segment revenue decreased$251,092 , or 11.8%, to$1,876,788 for the six months endedNovember 30, 2020 , as compared to$2,127,880 for the six months endedNovember 30, 2020 . The decreases are primarily due to a$33,202 , or 9.0%, decline in sales of the Company's Acuity products for the three months ended and$112,747 , or 13.8%, for the six months endedNovember 30, 2020 . Recurring revenue from the Company's Xact products monitoring services continued to grow, increasing$39,158 , or 10.3%, to$420,133 for the three months endedNovember 30, 2020 and$59,754 , or 8.0%, increase to$808,570 for the six months endedNovember 30, 2020 , as compared to the three and six month periods endedNovember 30, 2019 . The increase in Xact product monitoring services was offset by a decrease in Xact product sales of$122,917 , or 56.6%, to$94,413 for the three months ended and$120,968 , or 28.2%, decrease to$307,406 for the six months endedNovember 30, 2020 . - Gross margin increased to 47.4% for the three months ended
November 30, 2020 , as compared to 37.7% for the three months endedNovember 30,2020 . Gross margin increased to 44.4% for the six months endedNovember 30, 2020 as compared to 40.7% for the six months endedNovember 30, 2019 . The increase in gross margin is due to the start-up of the Ample Hill's factory and the decline in lower margin Acuity sales. - Operating expenses increased
$2,110,785 , or 211.4%, to$3,109,392 for the three months endedNovember 30, 2020 , as compared to$998,607 for the three months endedNovember 30, 2019 . The increase was primarily due to the inclusion of the Ample Hills business along with increased stock compensation, professional fees, and investments in information technology. - Net loss from continuing operations was
$2,366,469 , or ($0.63 ) per share, for the three months endedNovember 30, 2020 , as compared to a net loss of ($599,058 ), or ($0.15 ) per share, for the three months endedNovember 30, 2019 . Net loss from the continuing operations was$2,215,810 , or ($0.59 ) per share, for the six months endedNovember 30, 2020 , as compared to a net loss of ($821,185 ), or ($0.20 ) per share for the six months endedNovember 30, 2019 . Excluding the$1,189,512 bargain purchase gain realized as a result of the acquisition of Ample Hills, stock-based compensation, transaction fees and re-organization expenses, and income from discontinued product lines, non-GAAP earnings per share from continuing operations for the three months was$(0.59) and$(0.82) for the six months endedNovember 30, 2020 . - Adjusted EBITDA decreased
$2,120,611 , to ($2,132,309 ), for the three months endedNovember 30, 2020 , as compared to ($11,698 ) for the three months endedNovember 30, 2019 . For the six months endedNovember 30, 2020 , Adjusted EBITDA decreased$3,199,214 to$3,301,839 , as compared to ($102,625 ).
The Company finished the quarter ended
"In our SMS Measurement segment, we redesigned our Acuity website and Xact portal for an improved customer service experience while continuing to build our sales pipeline and implementing production process improvements. Despite uncertain economic conditions, our teams have maintained discipline in execution and will continue to do so as we enter the new year."
Shareholder Rights Plan
As previously disclosed, the Schmitt Board of Directors ("Board") believes the Section 382 Rights Agreement ("Agreement") that was implemented in 2019 has served its purpose of preserving the Net Operating Losses ("NOLs") so they could be used to offset cash taxes for shareholders. Effective
Real Estate Update
Schmitt listed the 28th Street building for sale on
Summary data for the three and six months ended
Three months ended |
Change |
||||||||||||
2020 |
2019 |
$ |
% |
||||||||||
Total net revenue |
$ |
2,029,712 |
$ |
1,033,102 |
$ |
996,610 |
96.5% |
||||||
Gross margin |
47.4% |
37.7% |
|||||||||||
Operating expenses |
3,109,393 |
998,607 |
2,110,786 |
211.4% |
|||||||||
Net loss from continued operations |
(2,366,469) |
(599,058) |
(1,767,411) |
295.0% |
|||||||||
Net loss per common share |
$ |
(0.63) |
$ |
(0.15) |
$ |
(0.48) |
320.0% |
||||||
Six months ended |
Change |
||||||||||||
2020 |
2019 |
$ |
% |
||||||||||
Total net revenue |
$ |
3,537,197 |
$ |
2,127,879 |
$ |
1,409,318 |
66.2% |
||||||
Gross margin |
44.4% |
40.7% |
|||||||||||
Operating expenses |
5,338,729 |
1,705,845 |
3,632,884 |
213.0% |
|||||||||
Net loss from continued operations |
(2,215,810) |
(821,185) |
(1,394,625) |
169.8% |
|||||||||
Net loss per common share |
$ |
(0.59) |
$ |
(0.20) |
$ |
(0.39) |
195.0% |
Reconciliation of Adjusted EBITDA:
Three months ended |
|||||||
2020 |
2019 |
||||||
Loss before income taxes from continuing operations |
$ |
(2,364,832) |
$ |
(603,497) |
|||
Depreciation and amortization |
100,724 |
41,249 |
|||||
EBITDA from continuing operations |
$ |
(2,264,108) |
$ |
(562,248) |
|||
Adjusted for: |
|||||||
Bargain purchase gain |
82,103 |
- |
|||||
Income from discontinued product line |
(18,852) |
(64,270) |
|||||
Transaction fees and re-organization expenses |
- |
466,707 |
|||||
Stock-based compensation |
68,549 |
72,014 |
|||||
Unrecoverable Inventory Costs |
- |
76,099 |
|||||
Adjusted EBITDA from continuing operations |
$ |
(2,132,308) |
$ |
(11,698) |
|||
Six months ended |
|||||||
2020 |
2019 |
||||||
Loss before income taxes from continuing operations |
$ |
(2,618,840) |
$ |
(829,014) |
|||
Depreciation and amortization |
187,114 |
83,277 |
|||||
EBITDA from continuing operations |
$ |
(2,431,726) |
$ |
(745,737) |
|||
Adjusted for: |
|||||||
Bargain purchase gain |
(1,189,512) |
- |
|||||
Income from discontinued product line |
(57,139) |
(134,270) |
|||||
Transaction fees and re-organization expenses |
125,167 |
508,681 |
|||||
Stock-based compensation |
251,371 |
192,602 |
|||||
Unrecoverable Inventory Costs |
- |
76,099 |
|||||
Adjusted EBITDA from continuing operations |
$ |
(3,301,839) |
$ |
(102,625) |
Reconciliation of Adjusted Net Loss and Non-GAAP EPS:
Three months ended |
|||||||
2020 |
2019 |
||||||
Net loss from continuing operations |
$ |
(2,366,469) |
$ |
(599,058) |
|||
Adjusted for: |
|||||||
Bargain purchase gain |
82,103 |
- |
|||||
Income from discontinued product line |
(18,852) |
(64,270) |
|||||
Transaction fees and re-organization expenses |
- |
466,707 |
|||||
Stock-based compensation |
68,549 |
72,014 |
|||||
Unrecoverable Inventory Costs |
- |
76,099 |
|||||
Adjusted net loss from continuing operations (Non-GAAP) |
$ |
(2,234,669) |
$ |
(48,508) |
|||
Non-GAAP loss per fully diluted share |
$ |
(0.59) |
$ |
(0.01) |
|||
Six months ended |
|||||||
2020 |
2019 |
||||||
Net loss from continuing operations |
$ |
(2,215,810) |
$ |
(821,185) |
|||
Adjusted for: |
|||||||
Bargain purchase gain |
(1,189,512) |
- |
|||||
Income from discontinued product line |
(57,139) |
(134,270) |
|||||
Transaction fees and re-organization expenses |
125,167 |
508,681 |
|||||
Stock-based compensation |
251,371 |
192,602 |
|||||
Unrecoverable Inventory Costs |
- |
76,099 |
|||||
Adjusted net loss from continuing operations (Non-GAAP) |
$ |
(3,085,923) |
$ |
(178,073) |
|||
Non-GAAP loss per fully diluted share |
$ |
(0.82) |
$ |
(0.04) |
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 Ample Hills acquisition, related transaction and re-organization expenses, and stock-based compensation.
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 |
View original content:http://www.prnewswire.com/news-releases/schmitt-announces-second-quarter-fiscal-2021-operating-results-301208973.html
SOURCE