TBLT - Earnings call transcript Q2 2021 | ToughBuilt Industries, Inc.

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Operator

Greetings and welcome to the ToughBuilt Industries Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Martin Galstyan, Chief Financial Officer. Thank you.

begin. may You

Martin Galstyan

I thank quarterly and financial for us Galstyan, joining operating of Financial Good ToughBuilt. to you discuss our and Martin is call My XXXX the ToughBuilt’s on Chief results. Officer morning name all am second and quarter

today’s Michael where the ToughBuilt’s of the me second of provide our the inception operational and and to Officer our are Panosian, from journey Chief today, then overview on the Joining financial as vision Michael with I well review will quarter. an highlights financial quarter. President Executive as will we ToughBuilt. open call Michael is discussion our call for for performance will future. conclude from with

would forward-looking the of that uncertainties like to in filings. Before the the the Reform Securities subject turning remind U.S. to press statements Securities release covered risks under by changes, I any management U.S. are Private and are Act Litigation and call over XXXX Michael, our in made you described and to

that turn unless non-GAAP presentation. over during including The reasons otherwise of today, contained by encouraged accepted financial now ToughBuilt’s GAAP to to in for be companies. the press our are non-GAAP Michael? non-GAAP may furnished release to release not comparable refer are those non-GAAP call to reconciliation review most States that I’d to from used therein. current of Investors issued measures in with Michael. with course financial its addition, United financial and and the measures Form for like ToughBuilt’s financial SEC directly and noted the the accounting different measures, X-K earnings earlier earnings principles accordance measures the in financial call, generally on measures we In are may other prepared report

Michael Panosian

discuss call you, for And us Martin. and to on our you results. thank operational ToughBuilt’s joining Thank conference all financial

engineers we where gap review of a the a and our ToughBuilt in in XXXX innovation that launched identified I as of will and improvement history are an discuss quarter, designers today. industry. provide had I group and brief home We Before the industrial quality

technology tools remained the same many the the by While has functionality throughout using builders stuck world, for that and being of embraced with professional other decades. design was advancement industries existed

goal one advanced was usher product remains at which Our then, improvement to home the intact supplies, a one in and generation and today, line next quality-first innovation of time. SKU

our that part As durability building and brand, long-term innovation, products put we of our introducing functionality quality, goal, began else. all ToughBuilt, above

for have efforts, across Europe. leading in products the sold these and a our globally with loyalty. ToughBuilt Canada U.S., strong in retailers Currently, demand XX,XXX incredible of As in result placement brand experienced shelf are we over stores and products

terms million over XXXX. from in revenue, In XXXX to by $X of $XX have million we gone

evolution e-commerce portion and growing continued XXXX. indicated pipeline the Amazon a seeing manufacturing to products. sourcing, company we’ve from driven R&D we’ve revenue expand our are lines, tremendous our continued We half record of in sales support support of by demand, experienced Considering our our of to strengthen product innovative the the across and to of growth first

demand that long-term The of a was approximately progress increase for XXX our $XX.X totaled retailers second made me quarter. end-users that by million, For in lines. generated driven financial review of our XXX% was strong. have as Against revenues business on. headcount the Since from backdrop, of of XXXX, we compared XXXX, the product to quarter second across operational to revenue $X.X XXXX, context, quarter in rely a increase, in beginning year-over-year and we of million and the our leading building lasting June all the allow the highlights can XX. our In significant XXXX. XX headcount approximately for platform ToughBuilt’s XXXX, And worldwide in brand

the XX,XXX. XXX under store-count new quarter increasing storefronts, adding During our to alone, total just footprint we our second expanded

orders continue alike. ended, product Shortly introduced within all retail in X extremely the for the knife we in We expect market this product and customers. customers. we’ve Already SKUs XXXX. our the our feedback Europe to a line, for In utility years a efforts after second line received $X In increased to feedback with customers addition, to new dollar and significant innovation our be introduce will positive we our several in to patented versatile we by adding knife new X a quarter, lines believe introduce The second two-in-one new existing ToughBuilt market. lines come. globally accelerating professionals significant quarter from marketing and fantastic of from is product partners represents we large with tool a from contributor scraper/utility billion retailers highly penetration

XXXX. in from As second million million we XXXX $X.X a $X.X result, second international the in the increased revenue quarter of to quarter of

support capabilities to Martin? to our engineering, detail. results marketing operational our additional now back cover employees hiring will in call our I the and expanded we to greater turn Additionally, by consultants financial efforts. Martin and

Martin Galstyan

XXXX costs, year. Cost from Thank X sales Selling, million cost primarily of industry to of sold XXXX $XX.X months increased for to chain This administrative and of general and approximately our approximately compared expenses with to million costs costs. SG&A XX, existing as Cost customers, follow-on goods was and primarily XXXX XXXX orders led due XX, supply employees as million products $X additional and disruptions, hiring customers. X were to labor of industry-wide as XXXX historically million XX.XX% $X.X were June same of by of increase a June period Michael. as metal of to million the over the XXXX revenues million, expenses X XX.X%. contractors, compared XXXX goods in goods by months expansion our shipping well goods of revenues and of XXXX. period increase period sold increased for ended which the a $X.X by goods due of Revenues for compared sold year-over-year result in $XX.X year, tool combined as ended high XXXX have high wide for approximately $X.X engaging grow Cost million to of material percentage the to $X.X our a existing in same in increased significant and to sold approximately primarily business XX, $X.X over approximately independent last soft for were you, million, compared new same advance acceptance consultants the XXXX the percentage XXX%. efforts. months in our of goods June representing last in in ended the was

ended XX, SG&A expect to compared of XXXX million and matures business approximately $XXX,XXX $X.X economies We the XXXX. decelerate were June scale. growth Research for expense in as develop and costs to X months development we

company new compared million, XXXX. of We per approximately a million expect a we of a approximately share, tools. quarter of second diluted In $X.X to stockholders in loss the to net had of develop diluted second maintain $X.X net as to the loss quarter or of or attributable levels costs continues of the share of loss $X.XX R&D loss $X.XX similar XXXX, common to per a

registered approximately XXXX, million. from inventory working to a July outstanding the for product offering operations. XX, direct million. totaled diluted we the offering completed XXXX, for On be common XX, $XX.X launches, proceeds company’s XX.X direct The As builds marketing for used of weighted purposes, funds capital registered are of June average shares net and including

cash short-term use cash I to the expenses from As as flow basis, balance of will June activities, invest operating its XX, coupled in the turn his remarks. cash no to call of percentage final to Based of remainder on expected $XX.X annual company have Michael XXXX, position current control in company’s revenue The million. with an was raise thus plans continues a now anticipated capital balances cash ToughBuilt’s the and XXXX. for cash may on for additional the to back its revenue growth. Michael? we

Michael Panosian

you, Thank Martin.

to I deliver expect gear at X to goal lines is beyond, DIY all to equipment and end look generation whom the could the we a product XXXX have launch the and Thank dedication builders. professional pandemic, times. our and made To product additional manufacturing focus this technology-enabled our the far. hardest we hard who As our success half second in of next we employees, without foundation designers. reiterate, for global of of the to through of launches, want executed thanks for your by and will continue while years. next XXXX ToughBuilt best-in-class a and of lines saves the will builders best to to distribution step and team and of of time robust be of over strengthen the we XX a course with a quality-first marketing To products. products special that relentlessly each support maintaining it of several the a project, products have technology of business industry’s with not work throughout released pipeline incorporate These network, our even money over you the give

to wait we you conclude if that want Operator, can’t to exciting please have And call. thank the our show for I supporting store. this all ToughBuilt’s journey. I us of along Finally, you developments shareholders all in would

Operator

you your lines conclude does this today’s We webcast. at and Ladies may gentlemen, for participation, and and thank teleconference this disconnect you time. your

ToughBuilt Industries (TBLT) 16 Aug 212021 Q2 Earnings call transcript