ToughBuilt Industries Announces Third Quarter 2022 Results
November 14 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 September 30, 2022. The Company will discuss the results, and provide a business update, during the Company’s earnings conference call scheduled for 5:00 p.m. (ET) today.
Third Quarter 2022 and Subsequent Financial Highlights:
Revenues for the three months ended September 30, 2022 were approximately $30.2 million, an increase of 76% compared to the same period in 2021. The growth in revenue was primarily due to the expansion of existing customers and their recurring orders, adding new customers globally, launching more products in different categories and an increase in sales through Amazon.
Margins were 26.1% and COGS were $22.3 million for Q3 2022, compared to 31.6% and $11.7 million, respectively for Q3 2021.
Operating expenses were approximately $14.7 million in the third quarter of 2022, compared to approximately $15.2 million in the third quarter of 2021, primarily due to a decrease in shipping costs and marketing and other cutbacks.
Net income in the third quarter of 2022 was approximately $539 thousand, or $0.05 per share, compared to a net loss of approximately $9.0 million, or $(11.18) per share in the third quarter of 2021.
Working capital as of September 30, 2022, of $28.5 million.
Michael Panosian, ToughBuilt’s CEO, commented, “We are thrilled to announce strong results for the third quarter of 2022, with the entrance into to three large global markets with the launch of our striking, cutting and measuring lines.” Panosian continued, “We remain confident in our long-term strategy, building upon our partnerships and relevant opportunities to grow our market share in different categories. We expect revenues to continue to increase rapidly as our recently announced product introductions and distribution partnerships ramp-up. We remain focused on delivering profitable growth and are targeting profitability in 2023.”
Third Quarter 2022 and Subsequent Business Highlights:
Third quarter 2022 Amazon.com gross sales were approximately $3.91 million, compared to approximately $3.4 million for the third quarter of 2021.
Expanded distribution of 84 ToughBuilt products in all Sears’ Mexico locations, totaling 96 storefronts.
Entered into a distribution agreement with Sodimac, the largest home improvement and construction supplier in South America, beginning with Peru and Colombia with 15 ToughBuilt SKUs.
Entered into four, new major retailers in Germany, representing tens of thousands of new end users across Europe.
Entered Global Tool-Hammer Category with launch of a series of ShockStop™ hammers.
Expanded to Great Britain with new and expanding agreements with Huws Gray, Selco Builders Warehouse, MKM, City Electrical Factors, and Carpet & Flooring.
Launched 21 new SKUs into the global handsaws segment, featuring QuickSet™ Double-Edge Pull Saw in 15,500 stores.
Entered the Global Measuring and Marking Category with the launch Imperial and Metric ProBlade™ Tape.
Entered into an agreement with two major wholesale tool distributors in Switzerland, expanding into of European distribution that includes more than 250 retailers, nationwide
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: 1-877-200-1292
INTERNATIONAL: 1-212-231-2925
To listen to a replay of the conference call, please dial one of the teleconference numbers below. The replay will also be available through the audio webcast link.
REPLAY U.S. TOLL-FREE: 1-844-512-2921
REPLAY INTERNATIONAL: 1-412-317-6671
REPLAY PIN: 1-412-317-6671
ABOUT TOUGHBUILT INDUSTRIES, INC.
