Key Second Quarter FY 2024 and Subsequent Highlights
- Revenue for Q2’24 increased 7% to
$17.2 million , compared to revenue of$16.1 million for Q2’23.- Security segment revenues decreased 18% to
$8.1 million in Q2’24 due to the delay of certain projects for the segment’s products and services. - Industrial Services segment revenues for Q2’24 increased 47% to
$9.1 million , on increased demand and additional revenue from the Heisey Mechanical acquisition completed in Q4’23.
- Security segment revenues decreased 18% to
- Security segment revenues for the six months ended
March 31, 2024 , increased 2% to$17.3 million compared to$16.9 million for the six months endedMarch 31, 2023 . This increase was due to an increased demand for the Security segment’s products and services. - Industrial Services segment revenues for the six months ended
March 31, 2024 , increased 51%, to$16.8 million compared to$11.1 million for the six months endedMarch 31, 2023 . - Closed
$10 million upsized underwritten public offering to conduct operations, increase marketing efforts, invest in existing business initiatives and products, and for the partial repayment of indebtedness. - Cash, cash equivalents and restricted cash as of
March 31, 2024 was$4.1 million .
Management Commentary
“Turning to our Security segment, Vicon continued to push the deployment of new technologies and products, including its innovative new cloud security platform Anavio. The platform enables users to manage their access control, video, and intercom via a single tool, so there’s no shuffling between separate security systems in order to achieve complete situational awareness and control. New features include face authentication that ensures only authorized people can access facilities, and a powerful ‘person of interest’ feature, whereby users can forensically track a specific person (or people) throughout a facility. We continue to make investments into our sales and marketing resources in the segment to drive further sales over the next several quarters. We also were able to reduce our inventory by over
“AIS and our Industrial services segment captured new orders from leading companies, building a pipeline of growth that we believe will produce a record year of revenue. We continue to believe with additional orders ahead, AIS has the potential to reach more than 30% annual revenue growth in FY’24. During the quarter AIS secured orders including a
“Looking ahead, strengthened by an improved balance sheet from our
Second Quarter FY 2024 Financial Results
Revenue for the three months ended
Gross Profit for the three months ended
Total operating expenses for three months ended
Operating loss for the second quarter of 2024 was
Net loss for the quarter ended
Cash, cash equivalents and restricted cash totaled
Inventories decreased to
Second Quarter FY 2024 Results Conference Call
To access the call, please use the following information:
Date: | |
Time: | |
Toll-free dial-in number: | 1-800-717-1738 |
International dial-in number: | 1-646-307-1865 |
Conference ID: | 1182838 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact
The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1668765&tp_key=084fe1071c and via the investor relations section of the Company's website at www.cemtrex.com.
A replay of the conference call will be available after
Toll-free replay number: | 1-844-512-2921 |
International replay number: | 1-412-317-6671 |
Replay ID: | 1182838 |
About
AIS –
For more information visit www.cemtrex.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the closing of the offering, gross proceeds from the offering, our new product offerings, expected use of proceeds, or any proposed fundraising activities. These forward-looking statements are based on management’s current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such forward looking statements. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. These risks and uncertainties are discussed under the heading “Risk Factors” contained in our Form 10-K filed with the
Condensed Consolidated Balance Sheets
(Unaudited) | ||||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 2,916,120 | $ | 5,329,910 | ||||
Restricted cash | 1,172,416 | 1,019,652 | ||||||
Short-term investments | 13,853 | 13,663 | ||||||
Trade receivables, net | 11,535,880 | 9,209,695 | ||||||
Trade receivables, net - related party | 1,479,703 | 1,143,342 | ||||||
Inventory, net | 7,397,747 | 8,739,219 | ||||||
Contract assets, net | 1,979,679 | 1,739,201 | ||||||
Prepaid expenses and other current assets | 1,910,415 | 2,098,359 | ||||||
Total current assets | 28,405,813 | 29,293,041 | ||||||
Property and equipment, net | 8,902,051 | 9,218,701 | ||||||
Right-of-use operating lease assets | 2,193,011 | 2,287,623 | ||||||
Royalties receivable, net - related party | 440,049 | 674,893 | ||||||
Note receivable, net - related party | 761,585 | 761,585 | ||||||
4,381,891 | 4,381,891 | |||||||
Other | 2,161,862 | 1,836,009 | ||||||
Total Assets | $ | 47,246,262 | $ | 48,453,743 | ||||
Liabilities & Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 5,741,091 | $ | 6,196,406 | ||||
Accounts payable - related party | 9,214 | 68,509 | ||||||
Sales tax payable | 37,487 | 35,829 | ||||||
Revolving line of credit | 4,019,234 | - | ||||||
Current maturities of long-term liabilities | 914,170 | 14,507,711 | ||||||
Operating lease liabilities - short-term | 792,141 | 741,487 | ||||||
Deposits from customers | 207,708 | 57,434 | ||||||
Accrued expenses | 2,676,079 | 2,784,390 | ||||||
Contract liabilities | 1,899,409 | 980,319 | ||||||
Deferred revenue | 1,404,608 | 1,583,406 | ||||||
Accrued income taxes | 404,288 | 388,627 | ||||||
Total current liabilities | 18,105,429 | 27,344,118 | ||||||
Long-term liabilities | ||||||||
Long-term debt | 21,553,920 | 9,929,348 | ||||||
Long-term operating lease liabilities | 1,462,545 | 1,607,202 | ||||||
Other long-term liabilities | 317,093 | 501,354 | ||||||
Deferred Revenue - long-term | 654,617 | 727,928 | ||||||
Total long-term liabilities | 23,988,175 | 12,765,832 | ||||||
Total liabilities | 42,093,604 | 40,109,950 | ||||||
Commitments and contingencies | - | - | ||||||
Stockholders’ equity | ||||||||
Preferred stock , | 2,408 | 2,293 | ||||||
Series C, 100,000 shares authorized, 50,000 shares issued and outstanding at | 50 | 50 | ||||||
Common stock, | 1,056 | 1,046 | ||||||
Additional paid-in capital | 68,936,696 | 68,881,705 | ||||||
Accumulated deficit | (66,806,600 | ) | (64,125,895 | ) | ||||
(217,996 | ) | (148,291 | ) | |||||
Accumulated other comprehensive income | 2,773,784 | 3,076,706 | ||||||
Total | 4,689,398 | 7,687,614 | ||||||
Non-controlling interest | 463,260 | 656,179 | ||||||
Total liabilities and stockholders’ equity | $ | 47,246,262 | $ | 48,453,743 |
Condensed Consolidated Statements of Operations
(Unaudited)
For the three months ended | For the six months ended | ||||||||||||||||
Revenues | $ | 17,159,595 | $ | 16,073,397 | $ | 34,037,761 | $ | 28,043,639 | |||||||||
Cost of revenues | 10,220,179 | 8,734,916 | 20,015,946 | 15,662,543 | |||||||||||||
Gross profit | 6,939,416 | 7,338,481 | 14,021,815 | 12,381,096 | |||||||||||||
Operating expenses | |||||||||||||||||
General and administrative | 7,020,157 | 5,318,267 | 13,992,123 | 10,482,605 | |||||||||||||
Research and development | 951,400 | 1,615,341 | 1,800,205 | 3,445,054 | |||||||||||||
Total operating expenses | 7,971,557 | 6,933,608 | 15,792,328 | 13,927,659 | |||||||||||||
Operating (loss)/income | (1,032,141 | ) | 404,873 | (1,770,513 | ) | (1,546,563 | ) | ||||||||||
Other (expense)/income | |||||||||||||||||
Other income/(expense), net | 144,765 | 376,504 | 223,176 | 359,421 | |||||||||||||
Interest expense | (592,804 | ) | (1,335,138 | ) | (1,176,487 | ) | (2,463,372 | ) | |||||||||
Total other (expense)/income, net | (448,039 | ) | (958,634 | ) | (953,311 | ) | (2,103,951 | ) | |||||||||
Net loss before income taxes | (1,480,180 | ) | (553,761 | ) | (2,723,824 | ) | (3,650,514 | ) | |||||||||
Income tax expense | (100,004 | ) | - | (170,755 | ) | - | |||||||||||
Loss from Continuing operations | (1,580,184 | ) | (553,761 | ) | (2,894,579 | ) | (3,650,514 | ) | |||||||||
Income/(loss) from discontinued operations, net of tax | 10,463 | 14,232 | 20,955 | (3,225,389 | ) | ||||||||||||
Net loss | (1,569,721 | ) | (539,529 | ) | (2,894,579 | ) | (6,875,903 | ) | |||||||||
Less (loss)/income in noncontrolling interest | (96,510 | ) | 55,265 | (192,919 | ) | (3,898 | ) | ||||||||||
Net loss attributable to | $ | (1,473,211 | ) | $ | (594,794 | ) | $ | (2,680,705 | ) | $ | (6,872,005 | ) | |||||
(Loss)/income per share - Basic & Diluted | |||||||||||||||||
Continuing Operations | $ | (1.46 | ) | $ | (0.82 | ) | $ | (2.62 | ) | $ | (4.70 | ) | |||||
Discontinued Operations | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | (4.09 | ) | ||||||||
Weighted Average Number of Shares-Basic & Diluted | 1,055,636 | 815,498 | 1,051,630 | 788,265 |
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the six months ended | ||||||||
2024 | 2023 | |||||||
Cash Flows from Operating Activities | ||||||||
Net loss | $ | (2,873,624 | ) | $ | (6,875,903 | ) | ||
Adjustments to reconcile net loss to net cash used by operating activities | ||||||||
Depreciation and amortization | 673,190 | 448,388 | ||||||
Gain on disposal of property and equipment | - | 64,908 | ||||||
Noncash lease expense | 389,125 | 420,411 | ||||||
Bad debt expense | 35,213 | (1,543 | ) | |||||
Share-based compensation | 15,116 | 66,577 | ||||||
Income tax expense | (96,750 | ) | - | |||||
Interest expense paid in equity shares | - | 32,145 | ||||||
Accounts payable paid in equity shares | 40,000 | 102,500 | ||||||
Accrued interest on notes payable | 657,355 | 1,290,615 | ||||||
Non-cash royalty income | (26,564 | ) | - | |||||
Gain/(loss) on marketable securities | (190 | ) | 58 | |||||
Amortization of original issue discounts on notes payable | - | 883,467 | ||||||
Amortization of loan origination costs | 36,267 | - | ||||||
Changes in operating assets and liabilities net of effects from acquisition of subsidiaries: | ||||||||
Trade receivables | (2,317,074 | ) | (1,870,729 | ) | ||||
Trade receivables - related party | (178,980 | ) | (408,464 | ) | ||||
Inventory | 1,341,472 | (73,209 | ) | |||||
Contract assets | (240,478 | ) | (12,597 | ) | ||||
Prepaid expenses and other current assets | 483,043 | (141,562 | ) | |||||
Other assets | (225,853 | ) | (185,165 | ) | ||||
Accounts payable | (455,315 | ) | 256,584 | |||||
Accounts payable - related party | 408 | (15,765 | ) | |||||
Sales tax payable | 1,658 | 90,204 | ||||||
Operating lease liabilities | (388,516 | ) | (356,176 | ) | ||||
Deposits from customers | 150,274 | 1,618 | ||||||
Accrued expenses | (108,311 | ) | 701,414 | |||||
Contract liabilities | 919,090 | 554,966 | ||||||
Deferred revenue | (252,109 | ) | (86,106 | ) | ||||
Income taxes payable | (146,422 | ) | (37,698 | ) | ||||
Other liabilities | (184,261 | ) | (231,998 | ) | ||||
Net cash used by operating activities - continuing operations | (2,752,236 | ) | (5,383,060 | ) | ||||
Net cash provided by operating activities - discontinued operations | - | 2,488,144 | ||||||
Net cash used by operating activities | (2,752,236 | ) | (2,894,916 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Purchase of property and equipment | (355,308 | ) | (263,732 | ) | ||||
Proceeds from sale of property and equipment | - | 11,026 | ||||||
Investment in MasterpieceVR | (100,000 | ) | - | |||||
Net cash used by investing activities | (455,308 | ) | (252,706 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Proceeds on revolving line of credit | 19,360,672 | - | ||||||
Payments on revolving line of credit | (15,413,971 | ) | - | |||||
Payments on debt | (2,429,743 | ) | (544,370 | ) | ||||
Payments on Paycheck Protection Program Loans | (20,242 | ) | (10,033 | ) | ||||
Proceeds on bank loans | 28,331 | - | ||||||
Payments on bank loans | (204,802 | ) | (365,724 | ) | ||||
Purchases of treasury stock | (69,705 | ) | ||||||
Net cash provided by/(used by) financing activities | 1,250,540 | (920,127 | ) | |||||
Effect of currency translation | (304,022 | ) | (126,593 | ) | ||||
Net decrease in cash, cash equivalents, and restricted cash | (1,957,004 | ) | (4,067,749 | ) | ||||
Cash, cash equivalents, and restricted cash at beginning of period | 6,349,562 | 11,473,676 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 4,088,536 | $ | 7,279,334 | ||||
Balance Sheet Accounts Included in Cash, Cash Equivalents, and Restricted Cash | ||||||||
Cash and cash equivalents | $ | 2,916,120 | $ | 6,634,037 | ||||
Restricted cash | 1,172,416 | 645,297 | ||||||
Total cash, cash equivalents, and restricted cash | $ | 4,088,536 | $ | 7,279,334 |
Investor RelationsChris Tyson Executive Vice President –MZ North America Direct: 949-491-8235 CETX@mzgroup.us www.mzgroup.us
Source:
2024 GlobeNewswire, Inc., source