Applied UV Announces Selected Preliminary Third Quarter 2023 Financial Results

Rhea-AI Summary

Applied UV, Inc. (NASDAQ: AUVI) announced a 94.8% increase in total revenues for Q3 2023, reaching approximately $11.4 million, with gross profit growing by 216.6% to $2.7 million. The company also reiterated its 2023 revenue guidance of around $45 million. The preliminary financial results for the nine months ended September 30, 2023, showed a 117.6% increase in total revenues to approximately $32.9 million. Adjusted EBITDA for Q3 2023 is expected to be a loss of $1.5 million, an improvement from the $2.1 million loss in Q3 2022. Net cash and cash equivalents as of September 30, 2023, are approximately $1.5 million, with a secured revolving credit facility of around $1.2 million available. The company expects to be cash flow neutral in the latter half of 2024 by implementing its strategic plan for 2024.

Positive

• Significant increase in total revenues and gross profit for Q3 2023
• Positive outlook for achieving cash flow neutrality in 2024

Negative

• None.

• Total revenues for the third quarter of 2023 of approximately $11.4 million, representing an 94.8% increase over the comparable period in 2022
  
  
• Gross profit grew to approximately $2.7 million, up 216.6% from $0.8 million in the comparable period in 2022.
  
  

NEW YORK, NY, Nov. 13, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Applied UV, Inc. (NASDAQ: AUVI), a leader in global food security, air quality, and specialty building solutions today announced preliminary financial results for the third quarter and nine months ended September 30, 2023, and reiterated its previous guidance of approximately $45 million in revenue for 2023.

Preliminary Q3 2023 Results

Applied UV expects total revenues for the third quarter of 2023 to be approximately $11.4 million, an increase of 94.8% compared to total revenues of $5.9 million in the prior year.  Gross profit grew to approximately $2.7 million, up 216.6% from $0.8 million in the comparable period in 2022. Operating loss is expected to be approximately $2.4 million for the third quarter of 2023, compared to an operating loss of $2.8 million for the third quarter of 2022. Net loss is expected to be approximately $2.6 million for the third quarter of 2023, compared to a net loss of $2.7 million for the third quarter of 2022.

Total revenues for the nine months ended September 30, 2023 are approximately $32.9 million, an increase of 117.6% compared to total revenues of $15.1 million in the nine months ended September 30, 2022.

Adjusted EBITDA, a non-GAAP financial measure, is defined as Operating Profit (Loss), excluding Depreciation and Amortization, and excluding Stock Based Compensation and Loss on Impairment of Goodwill/Intangible Assets. Adjusted EBITDA is expected to be a loss of $1.5 million for the third quarter of 2023, compared to a loss of $2.1 million for the third quarter of 2022.

Adjusted EBITDA Non-GAAP Financial Measure
				2023 Q3	2022 Q3
Operating (Loss)				($2.4 million)	($2.8 million)
Exclude: Depreciation and Amortization				$0.7 million	$0.5 million
Exclude: Stock Based Compensation				$0.2 million	$0.2 million
Adjusted EBITDA				($1.5 million)	($2.1 million)

Net cash and cash equivalents as of September 30, 2023, are approximately $1.5 million.   The Company’s secured revolving credit facility with Pinnacle Bank has approximately $1.2 million available as of September 30, 2023. Total cash and borrowing availability is approximately $2.7 million as of September 30, 2023. Net cash used in operating activities was approximately $7.8 million for the nine months ended September 30, 2023. Net cash used in operating activities improved in the third quarter when compared to the net cash used of $6.6 million for the six months ended June 30, 2023.

The Company believes by implementing its strategic plan for 2024, including the continued realization of cost savings from the synergies of its acquisitions completed in 2023, that it expects to be cash flow neutral in the latter half of 2024.

“We continued to see momentum in our business in the third quarter as we continue to benefit from the focused commercial strategy that we implemented earlier this year to accelerate revenue growth and establish new customer partnerships,” said Max Munn, CEO of Applied UV. “We remain focused on delivering the safest and most innovative air quality and specialty building solutions and we are encouraged by our customer engagements as we gain momentum from new products such as Airocide™ Pro and Fighter Flex coil disinfection system. Our initiatives to improve operational execution and efficiency, combined with our cost reduction actions completed in the second quarter, positions us well to drive improved operating performance and we plan to provide more detail on our earnings call in mid-November. We remain confident in our strategy and the long-term trends that fuel our business.”

The expected third quarter 2023 results set out above are still preliminary and subject to the Company’s quarter-end closing procedures. The Company’s consolidated financial statements as of, and for the three months ended, September 30, 2023, are not yet available. Accordingly, the information presented herein reflects the Company’s preliminary estimates subject to the completion of the Company’s financial closing procedures and any adjustments that may result from the completion of the quarterly review of the Company’s consolidated financial statements. As a result, these preliminary estimates may differ from the actual results that will be reflected in the Company’s consolidated financial statements for the third quarter when they are completed and publicly disclosed. These preliminary estimates may change, and those changes may be material. The Company’s expectations with respect to its unaudited results for the period discussed above are based upon management estimates.

The preliminary full year 2023 revenue outlook estimates described above are based on information available to management as of the date of this report, and as a result, these expectations could change.

Adjusted EBITDA, a non-GAAP financial measure, is defined as Operating Profit (Loss), excluding Depreciation and Amortization, and excluding Stock Based Compensation and Loss on Impairment of Goodwill/Intangible Assets. We believe Adjusted EBITDA provides investors with useful information on period-to-period performance as evaluated by management and comparison with our past financial performance. We believe Adjusted EBITDA is useful in evaluating our operating performance compared to that of other companies in our industry, as this measure generally eliminates the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

About Applied UV

Applied UV, Inc. engages in the pursuit of technologies focused on global food security, air quality, and specialty building solutions tailored for the commercial and hospitality sectors. More details about Applied UV, Inc., and its subsidiaries can be found at https://www.applieduvinc.com.

Forward-Looking Statements

The information contained herein may contain “forward‐looking statements.” Forward‐looking statements reflect the current view about future events. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. Such statements include, but are not limited to, statements contained in this press release relating to the view of management of Applied UV concerning the Company’s preliminary third quarter 2023 financial results, its business strategy, future operating results and liquidity and capital resources outlook. Forward‐looking statements are based on the Company’s current expectations and assumptions regarding its business, the economy and other future conditions. Because forward–looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company’s actual results may differ materially from those contemplated by the forward‐looking statements. They are neither statements of historical fact nor guarantees of assurance of future performance. We caution you therefore against relying on any of these forward‐looking statements. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward‐looking statements. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release.

For Additional Company Information:

Applied UV, Inc.
Max Munn
Applied UV Founder, CEO & Director
Max.munn@applieduvinc.com

Investor Relations Contact:
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com

FAQ

What are the total revenues for Q3 2023?

The total revenues for Q3 2023 were approximately $11.4 million, representing a 94.8% increase over the comparable period in 2022.

What is the expected adjusted EBITDA for Q3 2023?

The expected adjusted EBITDA for Q3 2023 is a loss of $1.5 million, an improvement from the $2.1 million loss in Q3 2022.

What is the company's cash position as of September 30, 2023?

The net cash and cash equivalents as of September 30, 2023, are approximately $1.5 million, with a secured revolving credit facility of around $1.2 million available.