FirsTime Design Limited Announces Fourth Quarter 2021 Results

Rhea-AI Summary

FirsTime Design Limited (OTC PINK:FTDL) announced its fourth-quarter financial results for the period ending December 31, 2021. Key highlights include the completion of the company's first clean financial audit for FY 2021 and significant advancements in migrating to a new Oracle ERP system, set for full implementation by Q3 2022. Financial results showed net sales of $4.95 million, a 37.6% decline from the previous year. The company reported a net income loss of $584,000, with EBITDA at ($541,000). Despite challenges, the company is strategically positioning itself for future growth.

Positive

• Completion of the first clean financial audit for FY 2021
• Progress in migrating to a new Oracle ERP system, expected to boost operational efficiency
• Expansion of freight forwarding relationships and additional warehousing space to strengthen supply chain

Negative

• Net sales decreased by 37.6% year-over-year
• Net loss of $584,000 for the fourth quarter
• Negative EBITDA of $541,000

PEWAUKEE, WI / ACCESSWIRE / May 11, 2022 / FIRSTIME DESIGN LIMITED (OTC PINK:FTDL) today announced financial results for the fourth quarter period ending December 31, 2021. Fourth-quarter highlights include:

• The Company completed and received its first clean Financial Audit for Fiscal Year End 2021
• The Company made further progress in migrating to a new Oracle ERP system which will be fully implemented by Q3 2022
• The Company expanded into a new freight forwarding relationship, as well as procured additional warehousing space near the east coast, to further strengthen its supply chain

Financial Results Summary

Income Statement Summary		Fourth Quarter Period								Year to Date Period
		12/31/2021				12/31/2020				12/31/2021				12/31/2020
Net Sales		$	4,949,000			$	7,927,200			$	23,558,000			$	21,927,000
Sales Growth %			-37.6	%			92.9	%			7.4	%			59.5	%
EBITDA		$	(541,000	)		$	1,133,400			$	908,000			$	2,633,000
Margin %			-10.9	%			14.3	%			3.9	%			12.0	%
Net Income		$	(584,000	)		$	3,413,000			$	405,000			$	4,751,000
Margin %			-11.8	%			43.1	%			1.7	%			21.7	%
Earnings per Share		$	(0.51	)		$	2.95			$	0.35			$	4.11
EPS Growth %			-117.2	%			4826.5	%			-91.5	%			514.1	%
Wtd. Avg. Shares Out.			1,154,651				1,154,651				1,154,651				1,154,651

Balance Sheet Summary		Year to Date Period
		12/31/2021				12/31/2020
Net Tangible Working Capital		$	13,463,000			$	9,493,000
Net Debt		$	7,991,000			$	4,652,000
Total Shareholder's Equity		$	9,480,000			$	9,083,000

Operational Results Summary

Chairman and CEO Christopher D. Bering said "though I have not seen an operational environment this challenging in the over 20 years that I have been managing international supply chains, I am elated at how we have not only navigated through the challenging times but also strengthened the business for massive scale once the supply chain environment begins to settle down. While the cost to bring product into the United States went hyperinflationary with container prices increasing by 400% seemingly overnight starting in late Summer 2021, we took a few swift and decisive actions including halting all product importing until container costs normalize, staging finished goods inventory in Asia in the event that if we saw further importing restrictions we would not be reliant upon sub-component manufacturers, and diversifying our freight forwarding relationships in order to create a competitive cost environment."

Bering continued with "while we were managing through the hyperinflationary environment, we cultivated further action to strengthen our model for when we get through these unprecedented times. We have fully tested and vetted our late 2021 product rollout of over 300 items which positions us well for when the environment normalizes to restart the flow of inventory for that program, as well as we developed our next round of product rollouts which amounts to over an additional 500 items. Additionally, we made significant progress on our ERP implementation strategy with a Companywide rollout to occur in the third quarter of this year, and we have fully vetted and set up relationships for new warehousing space on the east coast of the United States which will not only provide some diversity away from the Port of Los Angeles, but also allow us to stage more inventory closer to our customers. In the long run, these actions should allow us to stay competitively positioned and grow at above market rates in the future."

Andrew Bass, Chairman of the Capital Allocation Committee, said that "Christopher and the team are doing an exceptional job of navigating through these challenging times and strengthening the business model for when the operating environment normalizes. At a corporate level, the Company has completed its first Financial Audit for Fiscal Year 2021 which will set up the business for opportunities in the future. Finally, the Company remains focused on long term profitability to use its sizable Federal Net Operating Loss."

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

View source version on accesswire.com:
https://www.accesswire.com/700853/FirsTime-Design-Limited-Announces-Fourth-Quarter-2021-Results

FAQ

What were the fourth-quarter results for FirsTime Design Limited (FTDL)?

FirsTime Design Limited reported net sales of $4.95 million for the fourth quarter, a decline of 37.6% year-over-year, with a net loss of $584,000.

When will FirsTime Design Limited fully implement its new Oracle ERP system?

The new Oracle ERP system is expected to be fully implemented by Q3 2022.

What strategic actions is FirsTime Design Limited taking to enhance its supply chain?

The company expanded freight forwarding relationships and procured additional warehousing space to strengthen its supply chain.

What is the financial audit status for FirsTime Design Limited?

The company completed its first clean financial audit for Fiscal Year 2021.

What challenges did FirsTime Design Limited face in the fourth quarter?

The company faced a 37.6% decrease in net sales and reported a net loss of $584,000 during the fourth quarter.