Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen and welcome to the ToughBuilt Third Quarter 2022 Earnings Call.

During the presentation, all participants will be in a listen-only mode. [Operator Instructions].

As a reminder, today’s conference is being recorded.

I would now like to turn the call over to Martin Galstyan, Chief Financial Officer. ahead. go Please

Martin Galstyan

the thank discuss and results. for us I joining my of Good third you quarter to am and Galstyan, ToughBuilt is operating Financial XXXX today Officer name ToughBuilt. morning Martin all Chief financial Again, and

on and Michael Panosian, same today’s will the quarter. financial Officer highlights Chief XXXX President discussion today’s then is; conclude will the plans our and remainder will financial Michael I the Michael beyond. from period. ToughBuilt. begin call performance review by me and Executive with Joining of providing for the our operational third discussion for of

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

refer of principles In financial generally addition, accounting non-GAAP and course the are the accepted with by measures that during we in the used different companies. United other to prepared accordance financial from be that States non-GAAP not in may may measures call,

ToughBuilt’s in the are noted, Investors in for to measures earlier today, most review on press to of financial the otherwise furnished reconciliation release financial non-GAAP and with unless, earnings earnings directly therein. GAAP contained report measures its the are those release X-K, non-GAAP SEC encouraged Form reasons ToughBuilt measures comparable for current including our financial issued presentation. A

to Michael. now call I will turn the

Michael Panosian

on us for and you, thank Martin Thank all call. joining you today’s

XX% increase $XX.X strong was compared million for to of and quarter in third XXXX. The revenue ToughBuilt, QX XXXX year-over-year approximate culminating

year-over-year. strong our both we revenue of to grow revenues online expansion result see efforts, continue and to a As store and expect numbers

reach centers that utilizing to to on Ace and regional we sell XX and entered that service Italy started XXXX, products, products XXXX, into In stores. Germany. Hardware, XX July announced individual we sell XX which, Ace ToughBuilt will X,XXX with August agreement Amazon International distribute to Ace announced In an have ToughBuilt we USA Amazon, we in

agreement also retailers hardware our many with market. into We Spain entry announced in supply top

Finally announced particularly of Knife, our expansion month, new in with cutting Utility was groundbreaking a new we September all Reload in tool. the lines. busy and tool networks both launch August, a major our our

entry During and into measures segments and our the $X.X measuring the chalk marking, we month, billion a global announced family of reels. with market tape

that an that into major with European of also distribution we than XXX food retailers. expansion entered agreement an includes two Switzerland, in wholesale We more marking announced distributors

major announced in We collective storefronts of also agreements expansion Britain. more XXX with locations confirming for our and expanding in Great than network Britain, Great new retail

announced launch seven a beginning in will tools. new home leading our and our international retailer by expand momentum quarter, a of of we Finally third our line handsaws purchase September Subsequent to The distribution continuing the we line SKUs XX strong improvement through global to XXXX retail with lines. segment, product the US of the available be network. QX both and end network continued into throughout XXXX, a new cutting our for

supplier retailers largest In home a stores secured product distribution and agreement striking agreements and expanding We more in a SKUs in Mexico. new of launched Kit. of an and America, XXX XX four Laser with Rotary the Sodimac, line October, XX South with innovative we all tools, Level major distributor Germany, in comprehensive improvement Sears’ in construction reaching

September supply the operations. any not nine have effect the months for disruptions XXXX, great caused adverse had are have XX aware, difficulty chain year, in our inventory industries XX, levels the supply chain over XX, on many to ongoing our all last material ended due As you strong disruptions and

chain a fiscal disruptions supply And of material our any XXXX. for effect year we on adverse the do not will operations remainder currently have continuous that the anticipate

a continue success the going to the see, path quarter proved has growth period, year. milestone to us As yielding to our confidence of third validated into you and and remainder by the profitability can be revenue, our giving sales

I to will cover results turn detail. back Martin the greater to call our financial Martin? in

Martin Galstyan

in period you, of products to for Revenues goods primarily XX% increase for customers our and our Michael. metal of an introduction our our and wide orders to existing Thank through were and approximately receive million, customers. of the due and product of tool quarter compared a industry and goods sale new Amazon. soft The to an the third new $XX.X from recurring XXXX acceptance sales increase good sales XXXX, and soft same the in

XX, sold to million goods, due and to and manufacture goods labor our goods ended September $XX.X period an to materials metal goods million, increase of sold XXXX in by same and XXXX XX% soft primarily respectively. last for three sales Cost costs compared was China. an months increased and well increase year, the as in of in as $XX.X Cost increased

were in and administrative some XXXX $XX.X Selling, expenses XX, primarily due X.X% costs by $XX.X XXXX ended three lower months over general and cutbacks. million, SG&A shipping for respectively. to and XXXX million September and the XXXX expenses decreased

develop at we rate matures, our business a of expect SG&A that and start We as expenses lower will economies scale. increase to our

were in XXXX. XXXX for three a XX, loss September the the This to costs We months respectively. of for development million, net and income XXXX ended new September primarily construction a and industry. was the developing XX, the company ended for XXXX increase of XX, million tools months $X.X $X million due $XXX,XXX months net three as compared for $X.X Research September and to recorded three ended

September of million. our XX, as was sheet $X.X cash balance XXXX, position Our

receivable $XX.X million. were accounts Our

was $XX inventory million. Our

current of $XX.X $XX.X $X.X asset gives was Subtracting our prepaid capital and other us of liabilities Our which current a million. working million. million

into Additionally, are daily the coming sell we our industry. we as company down cash seeing

now will his Michael for call the I turn Michael? remarks. to back final

Michael Panosian

Thank Martin. you,

to the we ToughBuilt, in have the like I capitalize for to opportunities. I place tremendous would market on to at continue questions, that reiterate Before infrastructure open and those opportunities call exist the

are retailers around the upon We our with positioned uniquely successes. ToughBuilt selling more products building top world, and

to be growth leading repeat from to base. due strong driver retail a continue our sales Amazon.com orders

opportunities In buckets, in new As I confident expanding three mentioned retail adding are our entire maintain our partners, growth items. introducing the the committed with position. categories. of ability partners, I product future revenue third quarter, existing relationships broken all can be retail executed to these along down previously, with organization our ToughBuilt new three into and we on

Q -

questions for your line. and you And, be there’ll you disconnect ladies please We gentlemen, your today. no that and ask thank participation

ToughBuilt Industries (TBLT) 14 Nov 222022 Q3 Earnings call transcript