STOCK TITAN

Costar Technologies, Inc. Announces Financial Results For the Second Quarter Ended June 30, 2022

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary

Costar Technologies (CSTI) reported its Q2 2022 financial results, revealing revenues of $12,393, a 15.8% drop from Q2 2021. Operating expenses decreased by 9.9% to $4,159. The company faced a GAAP net loss of ($337) or ($0.20) per diluted share, contrasting with a profit of $4,862 or $2.94 per diluted share in the same quarter last year. Adjusted EBITDA also fell to $194 from $783. Despite these challenges, the backlog reached a record high of $11.2 million, and management remains optimistic about future revenue growth after addressing supply chain issues.

Positive
  • Record backlog of $11.2 million, indicating strong future demand.
  • Reduction in operating expenses by 9.9%, saving approximately $456,000 compared to Q2 2021.
Negative
  • 15.8% revenue decrease year-over-year, signaling declining sales.
  • GAAP net loss of ($337) compared to net income of $4,862 in Q2 2021.

($ in thousands except per share amounts)

COPPELL, Texas, Aug. 15, 2022 /PRNewswire/ -- Costar Technologies, Inc. (the "Company") (OTC Markets Group: CSTI) announced today its financial results for the second quarter ended June 30, 2022.

Financial Results for the Quarter Ended June 30, 2022

  • Revenues of $12,393, a 15.8% decrease compared to the second quarter of 2021.
  • Operating expenses were down 9.9% to $4,159, compared to $4,615 in the second quarter of 2021.
  • GAAP net loss of ($337) or ($0.20) per diluted share, compared to GAAP net income of $4,862, or $2.94 per diluted share, in the second quarter of 2021.
  • Adjusted earnings of ($92), or ($0.06) per diluted share, compared to $371, or $0.22 per diluted share, for the quarter ended June 30, 2021. Adjusted earnings, a non-GAAP measure, is defined below.
  • Adjusted EBITDA of $194, compared to $783 for the quarter ended June 30, 2021. Adjusted EBITDA, a non-GAAP measure, is defined below.

Scott Switzer, the Company's Chief Executive Officer, stated "Costar continues to build momentum with strong demand for our products producing a steady stream of orders and increasing our backlog to a record high of $11.2 million at the end of the second quarter. Further, we addressed many of the supply chain issues that will allow us to start working through the backlog in the third quarter. For the remainder of the year, we are focused on driving revenue, reducing leverage, and improving shareholder value."

Sarah Ryder, the Company's Chief Financial Officer, went on to say, "Supply chain challenges pushed potential second quarter revenue into the back half of the year resulting in revenues consistent with the prior quarter, but down from the prior year second quarter. Despite inflationary pressures we managed controllable costs, reducing operating expenses a quarter of million dollars compared to the first quarter. With a solid backlog and booking activity we are on track to deliver strong revenue and earnings growth in the second half of the year." 

The Company's independent auditors completed their analysis of the Company's financial condition. The Independent Accountant's Review Report, including financial statements and applicable footnote disclosures, is available on our website at www.costartechnologies.com.

Non-GAAP Financial Measures

The Company defines adjusted earnings, a non-GAAP measure, as net income (loss) excluding stock-based compensation, amortization of acquisition-related intangible assets, PPP loan forgiveness and accrual of Employee Retention Credit. The Company defines adjusted EBITDA, a non-GAAP measure, as earnings before interest, taxes, depreciation, amortization, stock-based compensation, PPP loan forgiveness and accrual of Employee Retention Credit. The following tables reconcile the non-GAAP financial measures disclosed in this release to GAAP income (loss):







Quarter
Ended
6/30/22

Quarter
Ended
6/30/21

Six Months
Ended
6/30/22

Six Months
Ended
6/30/21

Adjusted Earnings

(92)

371

(391)

(110)

Less:





    Stock-Based Compensation

(3)

(31)

(7)

(35)

    Intangible Amortization

(242)

(314)

(485)

(628)

    PPP Loan Forgiveness


3,060


3,060

    Accrual of Employee Retention Credit


1,776

29

1,776

Net Income (Loss)

(337)

4,862

(854)

4,063








Quarter
Ended
6/30/22

Quarter
Ended
6/30/21

Six Months
Ended
6/30/22

Six Months
Ended
6/30/21

Adjusted EBITDA

194

783

178

665

Less:





    Interest

(252)

(255)

(473)

(500)

    Income Taxes 

(7)

(57)

(15)

(67)

    Depreciation

(27)

(100)

(81)

(208)

    Intangible Amortization

(242)

(314)

(485)

(628)

    Stock-Based Compensation

(3)

(31)

(7)

(35)

    PPP Loan Forgiveness


3,060


3,060

    Accrual of Employee Retention Credit


1,776

29

1,776

Net Income (Loss)

(337)

4,862

(854)

4,063

 

These reconciliations of GAAP to non-GAAP measures should be considered together with the Company's financial statements. These non-GAAP measures are not meant as a substitute for GAAP but are included solely for informational and comparative purposes. The Company's management believes that this information can assist investors in evaluating the Company's operational trends, financial performance, and cash generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company's financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for (or superior to) corresponding, similarly captioned, GAAP measures.

About Costar Technologies, Inc.

Costar Technologies, Inc. develops, designs, manufactures, and distributes a range of security solution products including surveillance cameras, lenses, digital video recorders and high-speed domes. The Company also develops, designs, and distributes industrial vision products to observe repetitive production and assembly lines, thereby increasing efficiency by detecting faults in the production process. Headquartered in Coppell, Texas, the Company's shares currently trade on the OTC Markets Group under the ticker symbol "CSTI". Costar was ranked as the 40th largest company in a&s magazine's Security 50 for 2020. Security 50 is an annual ranking by the magazine of the world's largest security manufacturers in the areas of video surveillance, access control and intruder alarms, based on sales revenue.

Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements regarding the Company's ability to grow revenue and earnings, that are subject to substantial risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements, including but not limited to risks related to the ability to diversify business across vertical markets, secure new customer wins, and launch new products. You can often identify forward-looking statements by words such as "believe," "may," "estimate," "continue," "anticipate," "intend," "plan," "expect," "predict," "potential," or the negative of these terms or other comparable terminology. These forward-looking statements are based on management's current expectations, but they involve risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of the risks and uncertainties.

You should not place undue reliance on any forward-looking statements. The Company assumes no obligation to update forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting forward-looking information, except to the extent required by applicable laws.

 

COSTAR TECHNOLOGIES, INC. AND SUBSIDIARIES  


CONSOLIDATED BALANCE SHEETS
(AMOUNTS SHOWN IN THOUSANDS)






June 30, 2022


December 31, 2021






(Reviewed)



(Audited)

ASSETS












Current assets








   Cash and cash equivalents



$

3


$

4

   Accounts receivable, less allowance for doubtful accounts






      of $282 and $205, respectively


5,923



6,544

   Inventories




19,178



15,069

   Prepaid expenses and other current assets



3,222



3,562


Total current assets




28,326



25,179










Non-current assets









   Property and equipment, net




82



164

   Intangible assets, net




4,789



5,274

   Goodwill





5,574



5,574

   Right of use assets, net




1,060



1,214

   Other non-current assets




117



114


Total non-current assets



11,622



12,340


Total assets



$

39,948


$

37,519











LIABILITIES AND STOCKHOLDERS' EQUITY

























Current liabilities








   Accounts payable



$

8,948


$

6,935

   Accrued expenses and other current liabilities


3,133



3,894

   Line of credit




11,942



9,337

   Current maturities of long-term debt, net of unamortized 






       financing fees




2,414



2,807

   Current maturities of lease liabilities



624



732


Total current liabilities



27,061



23,705










Long-Term liabilities








   Deferred tax liability




179



179

   Non-current maturities of lease liabilities



525



608


Total long-term liabilities



704



787


Total liabilities




27,765



24,492










Stockholders' Equity








   Preferred stock








   Common stock




3



3

   Additional paid-in capital




157,909



157,899

   Accumulated deficit




(141,208)



(140,354)

Less common stock held in treasury, at cost



(4,521)



(4,521)


Total stockholders' equity



12,183



13,027











Total liabilities and stockholders' equity

$

39,948


$

37,519

 

 

COSTAR TECHNOLOGIES, INC. AND SUBSIDIARIES


CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS SHOWN IN THOUSANDS, EXCEPT NET INCOME PER SHARE)












Three Months Ended June 30,


Six Months Ended June 30,




2022


2021


2022


2021






(Reviewed)



(Reviewed)



(Reviewed)



(Reviewed)
















Net revenues



$

12,393


$

14,717


$

25,182


$

25,499

Cost of revenues




8,325



9,728



17,013



16,690
















Gross profit




4,068



4,989



8,169



8,809
















Selling, general and administrative expenses



3,657



3,764



7,495



7,365

Engineering and development expense



502



851



1,087



1,618






4,159



4,615



8,582



8,983

Income (Loss) from operations



(91)



374



(413)



(174)
















Other income (expenses)















Interest expense




(252)



(255)



(473)



(500)


Other income, net




13



4,800



47



4,804

Total other income (expenses), net



(239)



4,545



(426)



4,304
















Loss before taxes




(330)



4,919



(839)



4,130

Income tax provision




7



57



15



67
















Net income (loss)



$

(337)


$

4,862


$

(854)


$

4,063































Net (income) loss per share:














Basic



$

(0.20)


$

2.94


$

(0.52)


$

2.47
































Diluted



$

(0.20)


$

2.94


$

(0.52)


$

2.46






5879






5879



















Weighted average shares outstanding:














Basic




1,654



1,652



1,653



1,648
































Diluted




1,654



1,655



1,653



1,650

 

Cision View original content:https://www.prnewswire.com/news-releases/costar-technologies-inc-announces-financial-results-for-the-second-quarter-ended-june-30-2022-301606112.html

SOURCE Costar Technologies, Inc.

FAQ

What were Costar Technologies' revenues for Q2 2022?

Costar Technologies reported revenues of $12,393 for Q2 2022, a decrease of 15.8% from the previous year.

What was the GAAP net loss for Costar Technologies in Q2 2022?

The GAAP net loss for Costar Technologies in Q2 2022 was ($337), or ($0.20) per diluted share.

What factors influenced Costar Technologies' financial performance in Q2 2022?

Costar Technologies' financial performance was influenced by supply chain challenges and a decrease in revenues compared to Q2 2021.

How did Costar Technologies' operating expenses change in Q2 2022?

Operating expenses for Costar Technologies decreased by 9.9% to $4,159 in Q2 2022.

What is the outlook for Costar Technologies following the Q2 2022 results?

Costar Technologies is optimistic about strong revenue and earnings growth in the second half of the year, supported by a record backlog.

COSTAR TECHNOLOGIES INC

OTC:CSTI

CSTI Rankings

CSTI Latest News

CSTI Stock Data

9.74M
Security & Protection Services
Industrials
Link
United States
Coppell