FirsTime Design Limited Announces First Quarter 2022 Results

Rhea-AI Summary

FirsTime Design Limited (FTDL) reported its financial results for Q1 2022, noting a 16% decrease in net sales to $6.14 million from $7.31 million in Q1 2021. The company faced a loss of $710,000 versus a net income of $625,000 in the same period last year. This resulted in an EPS of $(0.61). Despite challenges, FTDL aims to consolidate warehouse expenses and reduce its line of credit. The new ERP system is on track for Q3 2022. Chairman Christopher D. Bering emphasized the importance of creating an efficient operational structure for future growth amidst current market volatility.

Positive

• Consolidation of warehouse space to reduce expenses.
• Utilization of excess cash flow to pay down Line of Credit.
• Implementation of a new ERP system expected in Q3 2022.

Negative

• Net sales decreased by 16% year-over-year.
• EBITDA recorded a loss of $609,000 compared to a gain of $699,000 in Q1 2021.
• Net loss of $710,000 compared to net income of $625,000 in Q1 2021.
• EPS decreased from $0.54 to $(0.61).
• Total shareholders' equity fell from $9.71 million to $8.79 million.
• Net debt increased from $4.89 million to $7.37 million.

PEWAUKEE, WI / ACCESSWIRE / May 12, 2022 / FIRSTIME DESIGN LIMITED (FTDL) today announced financial results for the first-quarter period ending March 31, 2022. First-quarter highlights include:

• The Company consolidated warehouse space of its commercial mattress business as well as its mid-west location to continue to bring down warehouse expense
• The Company continues to use excess cash flow to pay down its Line of Credit
• The Company remains on track to implement its new ERP system in Q3 2022

Financial Results Summary

Income Statement Summary

			First Quarter Period
			3/31/2022	3/31/2021
Net Sales			$6,138,000	$7,309,000
Sales Growth %			-16.0%	118.8%
EBITDA			$(609,000)	$699,000
Margin %			-9.9%	9.6%
Net Income/(Loss)			$(710,000)	$625,000
Margin %			-11.6%	8.6%
Earnings per Share			$(0.61)	$0.54
EPS Growth %			N/A	518.8%
Wtd. Avg. Shares Out.			1,154,651	1,154,651

Balance Sheet Summary			First Quarter Period
			3/31/2022	3/31/2021
Net Tangible Working Capital			$ 12,325,000	$ 10,552,000
Net Debt			$ 7,372,000	$ 4,885,000
Total Shareholder's Equity			$ 8,792,000	$ 9,708,000

Operational Results Summary

Chairman and CEO Christopher D. Bering said "the first quarter of 2022 was a difficult one. Inflation costs in the shipping environment remain elevated though we have seen some normalization in the market which we hope bodes well for the back half of the year. We remain committed to the long-term strategy of creating an efficient and flexible operating structure to scale growth when the business environment returns to further normalcy. We have deliberately and specifically attempted to improve everything in our control to be in the best position possible when that occurs. We are working hard on behalf of all stakeholders in the business to make sure we get through this period of volatility and ready to get back to profitable growth when the environment allows it."

Andrew Bass, Chairman of the Capital Allocation Committee, said that "as we harvest losses, we remain committed to long term profitable growth in order to maximize the value of FirsTime."

About FirsTime Design Limited

FirsTime Design Limited is an industry-leading designer, marketer, and distributor of home goods and sleep environment products, which are sold through multiple, national retailers as well as through a vast network of e-commerce channels. More information about the Company can be found at www.firstime.com or www.otcmarkets.com/stock/FTDL/quote.

Cautionary Statement Regarding Forward-Looking Statements

This document contains certain forward-looking statements about FirsTime and its general business outlook. When used in this document, the words "anticipates", "can", "will", "look forward to", "expected" and similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of FirsTime, that could cause actual outcomes and results to be materially different from those projected, described, expressed, or implied in this document due to several risks and uncertainties. Potential risks and uncertainties include, among others, the possibility that the anticipated continued growth of FirsTime may not be achieved, general economic conditions in regions in which FirsTime does business, and the possibility that FirsTime may be adversely affected by other financial, business, and/or competitive factors. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of FirsTime.

SOURCE: FirsTime Design Limited

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FAQ

What were FirsTime Design Limited's Q1 2022 net sales?

FirsTime Design Limited reported Q1 2022 net sales of $6.14 million, a 16% decrease from $7.31 million in Q1 2021.

What was the net income for FirsTime Design Limited in Q1 2022?

FirsTime Design Limited reported a net loss of $710,000 in Q1 2022 compared to a net income of $625,000 in Q1 2021.

How much is FirsTime Design Limited's EPS for Q1 2022?

FirsTime Design Limited's earnings per share (EPS) for Q1 2022 was $(0.61), down from $0.54 in Q1 2021.

What new initiatives is FirsTime Design Limited implementing in 2022?

FirsTime Design Limited is consolidating warehouse space to reduce expenses and is on track to implement a new ERP system in Q3 2022.

What is the current financial position of FirsTime Design Limited?

As of Q1 2022, FirsTime Design Limited has net debt of $7.37 million and total shareholders' equity of $8.79 million.