Fourth Quarter 2023 Financial Highlights
Net Sales of$8.3 million , increased from$7.1 million compared to Q4 2022- Adjusted EBITDA was
$1.3 million , compared to$1.1 million in Q4 2022 - Cash was
$2.2 million , increased from$0.5 million in 2022 and debt decreased to$8.9 million from$9.9 million in 2022
Full Year 2023 Financial Highlights
Net Sales of$29.4 million were higher compared to$27.8 million in 2022- Adjusted EBITDA for the full year 2023 was
$5.3 million , compared to$4.5 million in 2022 - Earnings per Share rises to
$0.06 from Negative$0.01 in 2022 - Cash was
$2.2 million , increased from$0.5 million in 2022 and debt decreased to$8.9 million from$9.9 million in 2022
First Quarter 2024 Financial Highlights
Net Sales of$6.3 million , decreased from$6.9 million compared to Q1 2023- Adjusted EBITDA was negative
$0.7 million , compared to$1.0 million in Q1 2023 - Cash was
$1.7 million , decreased from$2.2 million end of Quarter 4 2023, and debt decreased to$8.8 million from$8.9 million end of Quarter 4 2023
Operational and Business Highlights
Entered Communications end market with the launch of space optics for Low Earth Orbit Satellites and recorded revenue of$5.3 million in the year 2023- Launched three new products in defense in the third and fourth quarter of 2023
- Launched one new product in high precision biomedical optics in Quarter 4 2023
- Launched one product in biomedical disposable optics in Quarter 1 of 2024
- Launched one product in telecommunications microlens arrays in Quarter 4 2023 and created a higher volume production line in Quarter 1 2024
The calendar year 2023 was marked by record-high
Fourth Quarter and Full Year 2023 Financial and Operating Results
Fourth quarter 2023 Net Sales were
Fourth quarter 2023 Adjusted EBITDA was
The Company ended the fourth quarter of 2023 with
First Quarter 2024 Financial and Operating Results
First quarter 2024 Net Sales were
First quarter 2024 Adjusted EBITDA was negative
The Company ended the first quarter of 2024 with
Full year 2023 earnings per share rises over 2022. Several new products were launched in 2023. Space optics achieved production ramp. In the First Quarter of 2024, the new product telecom microlens array advanced to the production ramp, the new biomedical mirrors approach the production ramp, and a new high-volume biomedical disposable optics product development was launched.
About Syntec
Forward-Looking Statements
The 2023 financial results contained in this press release are subject to finalization in connection with the completion of the audit and the preparation of the Company’s Annual Report Form 10-K report for the year ended
If any of these risks materialize or any of the Company’s assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that the Company presently does not know or that it currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. All forward-looking statements contained in this press release speak only as of the date they were made. Except to the extent required by law, the Company undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.
For further information, please contact:
Investor Relations
InvestorRelations@syntecoptics.com
SOURCE:
CONSOLIDATED BALANCE SHEETS
2023 | 2022 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 2,158,245 | 526,182 | |||||
Accounts Receivable, Net | 6,800,064 | 5,925,724 | ||||||
Inventory | 5,834,109 | 3,626,360 | ||||||
Prepaid Expenses and Other Assets | 359,443 | 689,385 | ||||||
Total Current Assets | 15,151,861 | 10,767,651 | ||||||
Property and Equipment, Net | 11,101,052 | 11,624,819 | ||||||
Operating Lease Right of Use Assets, Net | - | 63,227 | ||||||
Intangible Assets, Net | 295,000 | - | ||||||
Total Assets | $ | 26,547,913 | $ | 22,455,697 | ||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts Payable | $ | 3,042,315 | $ | 412,058 | ||||
Accrued Expenses | 1,071,257 | 539,966 | ||||||
Federal Income Tax Payable | 370,206 | 108,738 | ||||||
Deferred Revenue | - | 348,095 | ||||||
Line of Credit | 6,537,592 | 6,400,000 | ||||||
Current Maturities of Debt Obligations | 362,972 | 1,624,851 | ||||||
Current Maturities of Operating Lease Liabilities | - | 13,374 | ||||||
Total Current Liabilities | 11,384,342 | 9,447,082 | ||||||
Long-Term Liabilities | ||||||||
Long-Term Debt Obligations | 2,024,939 | 1,913,538 | ||||||
Long-Term Operating Lease Liabilities | - | 49,853 | ||||||
Due to Related Parties | - | 11,767 | ||||||
Deferred Grant Revenue | - | 300,000 | ||||||
Deferred Income Taxes | 74,890 | 1,274,104 | ||||||
Total Long-Term Liabilities | 2,099,829 | 3,549,262 | ||||||
Total Liabilities | 13,484,171 | 12,996,344 | ||||||
Commitments and Contingencies (Note 22) | - | - | ||||||
Stockholder’s Equity | ||||||||
CL A Common Stock, Par value | 3,669 | 3,160 | ||||||
1,927,204 | 237,692 | |||||||
Retained Earnings | 11,132,869 | 9,218,501 | ||||||
Total Stockholder’s Equity | 13,063,742 | 9,459,353 | ||||||
Total Liabilities and Stockholder’s Equity | $ | 26,547,913 | $ | 22,455,697 |
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED
2023 | 2022 | |||||||
$ | 29,441,180 | $ | 27,839,312 | |||||
Cost of Goods Sold | 21,520,189 | 21,713,220 | ||||||
Gross Profit | 7,920,991 | 6,126,092 | ||||||
General and Administrative Expenses | 6,379,879 | 6,654,326 | ||||||
Income (Loss) from Operations | 1,541,112 | (528,234 | ) | |||||
Other Income (Expense) | ||||||||
Interest Expense, Including Amortization of Debt Issuance Costs | (654,765 | ) | (335,974 | ) | ||||
Other Income | 370,914 | 274,810 | ||||||
Total Other Expense, Net | (283,851 | ) | (61,164 | ) | ||||
Income (Loss) Before Provision for (Benefit) Income Taxes | 1,257,261 | (589,398 | ) | |||||
Benefit From Income Taxes | (719,172 | ) | (154,829 | ) | ||||
Net Income (Loss) | $ | 1,976,433 | $ | (434,569 | ) | |||
Net Income (Loss) per Common Share | ||||||||
Basic and diluted | $ | 0.06 | $ | (0.01 | ) | |||
Weighted Average Number of Common Shares Outstanding | ||||||||
Basic and diluted | 32,366,725 | 31,600,000 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED
2023 | 2022 | |||||||
Cash Flows From Operating Activities | ||||||||
Net Income (Loss) | $ | 1,976,433 | $ | (434,569 | ) | |||
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||||||||
Depreciation and Amortization | 2,769,284 | 3,140,601 | ||||||
Amortization of Debt Issuance Costs | 12,451 | 10,847 | ||||||
Grant Revenue Income | (300,000 | ) | - | |||||
Change in Allowance for Expected Credit Losses | (25,820 | ) | - | |||||
Change in Reserve for Obsolescence | 124,911 | (331,881 | ) | |||||
Deferred Income Taxes | (1,199,214 | ) | (507,913 | ) | ||||
(Increase) Decrease in: | ||||||||
Accounts Receivable | (848,520 | ) | (756,520 | ) | ||||
Inventory | (2,332,660 | ) | 1,267,263 | |||||
Federal Income Tax Receivable | - | 100,000 | ||||||
Prepaid Expenses and Other Assets | 340,298 | (104,407 | ) | |||||
Increase (Decrease) in: | ||||||||
Accounts Payables and Accrued Expenses | 2,493,826 | (597,709 | ) | |||||
Federal Income Tax Payable | 129,328 | 108,738 | ||||||
Deferred Revenue | (348,095 | ) | 34,265 | |||||
Net Cash Provided By Operating Activities | 2,792,222 | 1,928,715 | ||||||
Cash Flows From Investing Activities | ||||||||
Borrowings (Repayments) from Related Parties, Net | - | 40,837 | ||||||
Purchases of Property and Equipment | (1,921,182 | ) | (1,241,637 | ) | ||||
Proceeds from Disposal of Property and Equipment | - | 515,372 | ||||||
(1,921,182 | ) | (685,428 | ) | |||||
Cash Flows From Financing Activities | ||||||||
Borrowings (Repayments) on Line of Credit, Net | 137,592 | (1,600,000 | ) | |||||
Borrowing on Debt Obligations | 1,745,573 | - | ||||||
Repayments on Debt Obligations | (2,908,502 | ) | (917,400 | ) | ||||
Repayments on Finance Lease Obligations | - | (222,376 | ) | |||||
Cash proceeds from OLIT | 45,946 | - | ||||||
Net proceeds from | 1,802,479 | - | ||||||
Distributions | (62,065 | ) | (280,770 | ) | ||||
Net Cash Provided By (Used in) Financing Activities | 761,023 | (3,020,546 | ) | |||||
Net Increase (Decrease) in Cash | 1,632,063 | (1,777,259 | ) | |||||
Cash - Beginning | 526,182 | 2,303,441 | ||||||
Cash - Ending | $ | 2,158,245 | $ | 526,182 | ||||
Supplemental Cash Flow Disclosures: | ||||||||
Cash Paid for Interest | $ | 652,778 | $ | 319,056 | ||||
Cash Paid for Taxes | $ | 283,561 | $ | 159,968 | ||||
Supplemental Disclosures of Non-Cash Investing Activities: | ||||||||
Asset Acquired and Included in Accounts Payable and Accrued Expenses | $ | 642,547 | $ | 23,213 | ||||
Loan to Stockholder Settled | $ | - | $ | 5,505,957 | ||||
Stock Subscription Receivable Settled | - | 176,071 | ||||||
Non-Cash Distributions | $ | - | $ | 5,682,028 |
NON-GAAP RECONCILICATION OF EBITDA
FOR THE YEARS ENDED
2023 | 2022 | |||||||
Net (Loss) Income | $ | 1,976,433 | $ | (434,569 | ) | |||
Depreciation & Amortization | 2,781,735 | 3,151,448 | ||||||
Interest Expenses | 642,314 | 325,127 | ||||||
Taxes | (719,172 | ) | (154,829 | ) | ||||
Non-Recurring Items | 653,018 | 1,613,112 | ||||||
Adjusted EBITDA | $ | 5,334,328 | $ | 4,500,289 |
The table above presents our adjusted EBITDA, reconciled to net income for the periods indicated.
CONDENSED CONSOLIDATED BALANCE SHEETS
2024 (unaudited) | 2023 | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 1,684,308 | 2,158,245 | |||||
Accounts Receivable, Net | 5,094,215 | 6,800,064 | ||||||
Inventory | 6,473,850 | 5,834,109 | ||||||
Prepaid Expenses and Other Assets | 397,122 | 359,443 | ||||||
Total Current Assets | 13,649,495 | 15,151,861 | ||||||
Property and Equipment, Net | 10,585,538 | 11,101,052 | ||||||
Deferred Income Taxes | 106,992 | - | ||||||
Intangible Assets, Net | 280,000 | 295,000 | ||||||
Total Assets | $ | 24,622,025 | $ | 26,547,913 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts Payable | $ | 2,389,071 | $ | 3,042,315 | ||||
Accrued Expenses | 1,271,965 | 1,071,257 | ||||||
Federal Income Tax Payable | 247,430 | 370,206 | ||||||
Deferred Revenue | 20,363 | - | ||||||
Line of Credit | 5,437,204 | 6,537,592 | ||||||
Current Maturities of Debt Obligations | 447,702 | 362,972 | ||||||
Total Current Liabilities | 9,813,735 | 11,384,342 | ||||||
Long-Term Liabilities | ||||||||
Long-Term Debt Obligations | 2,953,691 | 2,024,939 | ||||||
Deferred Income Taxes | - | 74,890 | ||||||
Total Long-Term Liabilities | 2,953,691 | 2,099,829 | ||||||
Total Liabilities | 12,767,426 | 13,484,171 | ||||||
Commitments and Contingencies (Note 15) | ||||||||
Stockholders’ Equity | ||||||||
CL A Common Stock, Par value $.0001 per share; 121,000,000 authorized; 36,688,266 issued and outstanding as of | 3,669 | 3,669 | ||||||
1,927,204 | 1,927,204 | |||||||
Retained Earnings | 9,923,726 | 11,132,869 | ||||||
Total Stockholders’ Equity | 11,854,599 | 13,063,742 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 24,622,025 | $ | 26,547,913 |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
1 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED
2024 | 2023 | |||||||
$ | 6,255,908 | $ | 6,884,436 | |||||
Cost of Goods Sold | 5,548,465 | 5,172,735 | ||||||
Gross Profit | 707,443 | 1,711,701 | ||||||
General and Administrative Expenses | 2,114,543 | 1,517,961 | ||||||
(Loss) Income from Operations | (1,407,100 | ) | 193,740 | |||||
Other Income (Expense) | ||||||||
Interest Expense, Including Amortization of Debt Issuance Costs | (159,867 | ) | (130,021 | ) | ||||
Other Income | 19,349 | 751 | ||||||
Total Other Expense, Net | (140,518 | ) | (129,270 | ) | ||||
(Loss) Income Before (Benefit) Provision for Income Taxes | (1,547,618 | ) | 64,470 | |||||
(Benefit) Provision for Income Taxes | (338,475 | ) | 11,448 | |||||
Net (Loss) Income | $ | (1,209,143 | ) | $ | 53,022 | |||
Net (Loss) Income per Common Share | ||||||||
Basic and diluted | $ | (0.03 | ) | $ | 0.00 | |||
Weighted Average Number of Common Shares Outstanding | ||||||||
Basic and diluted | 36,688,266 | 31,600,000 |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED
2024 | 2023 | |||||||
Cash Flows From Operating Activities | ||||||||
Net (Loss) Income | $ | (1,209,143 | ) | $ | 53,022 | |||
Adjustments to Reconcile (Loss) Income to | ||||||||
Depreciation and Amortization | 695,826 | 723,938 | ||||||
Amortization of Debt Issuance Costs | 1,973 | 2,712 | ||||||
Change in Allowance for Expected Credit Losses | (24,103 | ) | 51,375 | |||||
Change in Reserve for Obsolescence | 208,287 | (334 | ) | |||||
Deferred Income Taxes | (181,882 | ) | (228,415 | ) | ||||
(Increase) Decrease in: | ||||||||
Accounts Receivable | 1,729,951 | (44,131 | ) | |||||
Inventory | (848,028 | ) | (774,344 | ) | ||||
Prepaid Expenses and Other Assets | (37,679 | ) | 18,755 | |||||
Increase (Decrease) in: | ||||||||
Accounts Payables and Accrued Expenses | (522,630 | ) | 548,899 | |||||
Federal Income Tax Payable | (122,776 | ) | 229,855 | |||||
Deferred Revenue | 20,363 | (54,593 | ) | |||||
(289,841 | ) | 526,739 | ||||||
Cash Flows From Investing Activities | ||||||||
Purchases of Property and Equipment | (95,218 | ) | (226,871 | ) | ||||
(95,218 | ) | (226,871 | ) | |||||
Cash Flows From Financing Activities | ||||||||
Repayments on Line of Credit, Net | (1,100,388 | ) | - | |||||
Borrowing on Debt Obligations | 1,100,388 | - | ||||||
Repayments on Debt Obligations | (88,878 | ) | (246,380 | ) | ||||
Distributions | - | (46,106 | ) | |||||
(88,878 | ) | (292,486 | ) | |||||
Net (Decrease) Increase in Cash | (473,937 | ) | 7,382 | |||||
Cash- Beginning | 2,158,245 | 526,182 | ||||||
Cash- Ending | $ | 1,684,308 | $ | 533,564 | ||||
Supplemental Cash Flow Disclosures: | ||||||||
Cash Paid for Interest | $ | 157,895 | $ | 137,773 | ||||
Cash Paid for Taxes | $ | 85,098 | $ | 10,008 | ||||
Supplemental Disclosures of Non-Cash Investing Activities: | ||||||||
Assets Acquired and Included in Accounts Payable and Accrued Expenses | $ | 412,641 | $ | 30,891 |
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
NON-GAAP RECONCILIATION OF ADJUSTED EBITDA
FOR THE THREE MONTHS ENDED
2024 | 2023 | |||||||
Net (Loss) Income | $ | (1,209,143 | ) | $ | 53,022 | |||
Depreciation & Amortization | 697,799 | 726,650 | ||||||
Interest Expenses | 157,894 | 127,309 | ||||||
Taxes | (338,475 | ) | 11,448 | |||||
Non-Recurring Items | 25,265 | 81,258 | ||||||
Adjusted EBITDA | $ | (666,660 | ) | $ | 999,687 |
The table above presents our adjusted EBITDA, reconciled to net income for the periods indicated.
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial measures including EBITDA and Adjusted EBITDA as a supplement to GAAP financial information to enhance the overall understanding of the Company’s financial performance and to assist investors in evaluating the Company’s results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis.
Non-GAAP Financial Measures
This Annual Report includes a non-GAAP measure that the Company uses to supplement our results presented in accordance with
Adjusted EBITDA is not a recognized measure under
Adjusted EBITDA
The Company defines adjusted EBITDA, a non-GAAP financial measure, as net earnings (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude non-recurring items as outlined in our 10-K and 10-Q. The Company utilizes adjusted EBITDA as an internal performance measure in the management of our operations because we believe the exclusion of these non-cash and non-recurring charges allow for a more relevant comparison of our results of operations to other companies in our industry and is in accordance with the Non-GAAP Financial Measures Compliance & Disclosure Interpretations (Reference Question 102.03).
Source: Syntec Optics
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