“First Quarter Fiscal Year 2021 results are encouraging given the challenges the Company is facing during the COVID-19 pandemic,” said
Total sales for the first quarter of fiscal 2021 were
First Quarter Financial Highlights
(All comparisons are relative to the three-month period ended
- Adjusted EBITDA of
($0.2) million , compared to adjusted EBITDA of($0.7) million - Net income before taxes of
$3.4 million compared to net loss before taxes of$0.7 million . This quarter’s results were positively impacted by other income from government grants of$2.7 million and significant unrealized gain on derivatives of$2.2 million , partially offset by$0.3 million of foreign exchange loss. - Total sales of
$11.4 million , a decrease of 45.0% - Gross margin of 30.2%, with gross profit down by
$2.3 million , versus gross margin of 27.9%. - SG&A expenses of
$4.7 million , a decrease of$2.6 million versus$7.3 million . - Inventory of
$4.7 million , a decrease of$2.5 million , versus$7.2 million the prior year - At
July 31, 2020 , Inscape had$6.0 million in cash with additional borrowing capacity of$2.9 million
Summary of Consolidated Financial Results
(in thousands except EPS)
Three Months Ended | ||||
2020 | 2019 | |||
Sales | $ | 11,370 | $ | 20,677 |
Gross profit | 3,430 | 5,778 | ||
Selling, general & administrative expenses | 4,645 | 7,263 | ||
Unrealized loss on foreign exchange | 334 | 31 | ||
Unrealized gain on derivatives | (2,738) | (848) | ||
Loss on disposal of capital assets & intangibles | - | 28 | ||
Investment income | - | (5) | ||
Other income – government grant | (2,193) | - | ||
Income (loss) before taxes | $ | 3,382 | $ | (691) |
Income taxes | 2 | 53 | ||
Net income (loss) | $ | 3,380 | $ | (744) |
Basic and diluted income (loss) per share | $ | 0.24 | $ | (0.05) |
Weighted average number of shares (in thousands) | ||||
for basic EPS calculation | 14,381 | 14,381 | ||
for diluted EPS calculation | 14,381 | 14,381 |
Sales in the first quarter were 45.0% lower than the same quarter of last year. The decline in the first quarter is primarily due to the economic impact of the COVID-19 pandemic which resulted in shutdown of many cities and states in
Adjusted net income (loss) and adjusted EBITDA are non-GAAP measures, which do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers.
The following is a reconciliation of net income (loss) calculated in accordance with GAAP to adjusted net loss before taxes, the non-GAAP measure:
Three Months Ended | ||||||
(in thousands) | 2020 | 2019 | ||||
Net income (loss) before taxes | $ | 3,382 | $ | (691 | ) | |
Adjust non-operating or unusual items: | ||||||
Unrealized gain on derivatives, net | $ | (2,738 | ) | $ | (848 | ) |
Unrealized loss on foreign exchange | $ | 334 | $ | 31 | ||
Loss on disposal of PP&E and intangibles | $ | - | $ | 28 | ||
Other income – government grant | $ | (2,193 | ) | $ | - | |
Stockbased compensation | $ | (9 | ) | $ | (270 | ) |
Severance obligation | $ | 27 | $ | 235 | ||
Adjusted net loss before taxes | $ | (1,197 | ) | $ | (1,515 | ) |
The following is a reconciliation of net income (loss) before taxes calculated in accordance with GAAP to EBITDA and adjusted EBITDA, the non-GAAP measures:
Three Months Ended | ||||||
(in thousands) | 2020 | 2019 | ||||
Net income (loss) before taxes | $ | 3,382 | $ | (691 | ) | |
Interest | $ | - | $ | (5 | ) | |
Depreciation | $ | 479 | $ | 523 | ||
Amortization | $ | 533 | $ | 317 | ||
EBITDA | $ | 4,394 | $ | 144 | ||
Adjust non-operating or unusual items: | ||||||
Unrealized gain on derivatives | $ | (2,738 | ) | $ | (848 | ) |
Unrealized loss on foreign exchange | $ | 334 | $ | 31 | ||
Loss on disposal of PP&E and intangibles | $ | - | $ | 28 | ||
Other income – government grant | $ | (2,193 | ) | $ | - | |
Stockbased compensation | $ | (9 | ) | $ | (270 | ) |
Severance obligation | $ | 27 | $ | 235 | ||
Adjusted EBITDA | $ | (185 | ) | $ | (680 | ) |
The first quarter gross profit as a percentage of sales of 30.2% was 2.3 percentage points higher than the same quarter of last year, largely due to favourable product mix, improvements in quality expenses and cost efficiencies in the Walls business segment.
The current quarter’s SG&A of
At the end of the quarter, the Company had cash totaling
Financial Statements
Financial statements are available from our website as of this press release.
First Quarter Call Details
Inscape will host a conference call at
Forward-looking Statements
Certain of the above statements are forward-looking statements that involve risks and uncertainties. Actual results could differ materially as a result of many factors including, but not limited to, further changes in market conditions and changes or delays in anticipated product demand. In addition, future results may also differ materially as a result of many factors, including: fluctuations in the Company’s operating results due to product demand arising from competitive and general economic and business conditions in
About Inscape
Since 1888, Inscape has been designing products and services that are focused on the future, so businesses can adapt and evolve without investing in their workspaces all over again. Our versatile portfolio includes systems furniture, storage, and walls – all of which are adaptable and built to last. Inscape’s wide dealer network, showrooms in
For more information, visit www.myinscape.com
Contact
Chief Financial Officer
T 905 952 4102
jszczur@myinscape.com
Source:
2020 GlobeNewswire, Inc., source