FirsTime Design Limited Announces Preliminary Fourth Quarter 2020 Results

Rhea-AI Summary

FirsTime Design Limited (OTC PINK:FTDL) reported impressive financial results for Q4 and FY 2020, with net sales growing by 92.9% in Q4 and 59.5% year-to-date. EBITDA surged by 198% in Q4 and 212% for the year. The company launched new products ahead of the holiday season and received full forgiveness on its Payroll Protection Program loan. Notably, net debt stands at $4,653,800, and net tangible working capital is $9,674,800, positioning the company favorably for continued growth amid a challenging retail environment.

Positive

• Q4 2020 net sales rose to $7,927,200, marking a 92.9% increase.
• EBITDA for Q4 2020 reached $1,133,400, reflecting a 198% growth.
• For FY 2020, net sales totaled $21,927,300, with a 59.5% increase.
• EBITDA for FY 2020 was $2,633,300, a substantial 212% growth.
• Full forgiveness of the Payroll Protection Program loan improves cash flow.
• The company launched a new product line before the holiday season.

Negative

• The company has a net debt of $4,653,800, which could impact future financial flexibility.

PEWAUKEE, WI / ACCESSWIRE / February 4, 2021 / FIRSTIME DESIGN LIMITED (OTC PINK:FTDL) today announced financial results for the fourth quarter and year-end periods ending December 31, 2020. Fourth quarter highlights include:

• Q4 2020 net sales and EBITDA growth of 92.9% and 198%, respectively

• FYE 2020 net sales and EBITDA growth of 59.5% and 212%, respectively

• The Company launched a full suite of new products preceding the 2020 holiday period

• The Company received full forgiveness on its Payroll Protection Program Loan

Financial Results Summary

Income Statement Summary	Fourth Quarter Period			Year to Date Period
	12/31/2020	12/31/2019		12/31/2020	12/31/2019
Net Sales	$ 7,927,200	$ 4,110,000		$ 21,927,300	$ 13,746,000
Sales Growth %	92.9%	-0.1%		59.5%	-3.3%
EBITDA	$ 1,133,400	$ 380,700		$ 2,633,300	$ 844,700
Margin %	14.3%	9.3%		12.0%	6.1%

Balance Sheet Summary				Year to Date Period
				12/31/2020	12/31/2019
Net Tangible Working Capital				$ 9,674,800	$ 4,035,000
Net Debt				$ 4,653,800	$ 1,893,000

Operational Results Summary

Christopher D. Bering, Chairman & CEO, said, "the Company produced record revenue and profits this year. Additionally, our current set of products in the market today is the most diversely designed our team of artisan designers has made to date. We are exhilarated with our 2020 financial results. Part of the success came from our international supply chains agility, including the addition of suppliers in several new countries that we set up in 2020, as well as the Company's state-of-the-art West Coast distribution center which proved to be a perfectly timed move for our supply chain improvements. Our newly procured product launches, and expanded assortments are producing robust results. This is all being done during the most challenging and complex retail environment that I have experienced in 20 years. Though these time periods provide many tough lessons, they have allowed us to build quality, flexibility, character, and a culture prepared for sustainable growth in any market environment. A tremendous amount of gratitude goes out to our entire FirsTime Team, Directors, shareholders and other stakeholders, without whom, we could not have achieved these results."

Andrew Bass, Chairman of the Capital Allocation Committee, added that "any way you spin it, it is hard not to be humbled by the significant revenue and income generation capability of the business in 2020. Given the continued shift of the consumer into the e-commerce space, and the Company's additionally planned new product introductions in 2021, we expect to continue to put up record results. This is an extremely positive development given our significant Federal and State Net Operating Loss. Accordingly, the Company will have minimal cash tax obligations in respect of its 2020 revenues which we feel is a catalyst to unlock per share value in our Company. We are actively exploring ways to unlock further value in our business including actively working on corporate level initiatives through the Capital Allocation Committee. No options are off the table as we work to create meaningful, and sustainable, increases in the risk-adjusted returns that we offer our shareholders. Finally, the Company expects to have its annual accountants review of financial results completed in the Spring of 2021 at which time we will release our full financial results."

About FirsTime Design Limited

FirsTime Design Limited, through its subsidiaries, FirsTime Manufactory, Inc. and InnerSpace Luxury Products, LLC, are industry-leading designers, marketers, and distributors of home goods and sleep environment products, which are sold through multiple, national retailers as well as through a vast network of eCommerce channels. More information 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. The Company's results are preliminary and unreviewed and are subject to change once FirsTime posts its financial results for the year ended 2020.

Contact

Andrew Bass
FirsTime Design Ltd.
abass@firstime.com
262.364.5200

SOURCE: FirsTime Design Limited

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FAQ

What were the financial results for FirsTime Design Limited (FTDL) in Q4 2020?

FirsTime Design Limited reported a 92.9% increase in net sales for Q4 2020, totaling $7,927,200, along with a 198% rise in EBITDA reaching $1,133,400.

How did FirsTime Design Limited perform in FY 2020?

For FY 2020, FirsTime Design Limited saw net sales grow by 59.5% to $21,927,300 and EBITDA increase by 212% to $2,633,300.

What is the status of FirsTime Design Limited's Payroll Protection Program loan?

FirsTime Design Limited received full forgiveness on its Payroll Protection Program loan, enhancing its cash flow.

What challenges did FirsTime Design Limited face in 2020?

The company successfully navigated a challenging retail environment while achieving record revenues and profits in 2020.

What are FirsTime Design Limited's net debt and working capital figures?

FirsTime Design Limited reported a net debt of $4,653,800 and net tangible working capital of $9,674,800 as of December 31, 2020.