Q looks better than I thought it would.
ToughBuilt Industries Announces Second Quarter 2022 Results
August 19 2022 - 08:30AM
GlobeNewswire Inc.
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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: 1-877-407-9716
INTERNATIONAL: 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
