FirsTime Design Limited Announces Second Quarter 2022 Results
FirsTime Design Limited (FTDL) reported its second-quarter financial results for the period ending June 30, 2022. The company closed a convertible note with investor Karl Brewer and refinanced its line of credit with Aequum Capital Financial. Key financial metrics showed net sales of $3.66 million, a decline of 31% year-over-year. The EBITDA was negative at $(1.01 million), leading to a net loss of $(1.1 million).
Despite the challenges, FirsTime aims for recovery, expecting new inventory deliveries and a positive shift in shipping costs.
- Closed convertible note with investor Karl Brewer.
- Successfully refinanced line of credit with Aequum Capital Financial.
- Launched Direct-to-Consumer strategy on firstime.com.
- Net sales decreased by 31% year-over-year.
- Reported a negative EBITDA of $(1.01 million).
- Net loss of $(1.1 million) for the second quarter.
PEWAUKEE, WI / ACCESSWIRE / September 26, 2022 / FIRSTIME DESIGN LIMITED (FTDL) today announced financial results for the second-quarter period ending June 30, 2022. Highlights of the second quarter and after include:
- The Company closed on a convertible note with investor Karl Brewer; Founder of Cervecero Investments and former Portfolio Manager of the William Blair Small Cap Growth Fund
- The Company closed on a refinancing of its line of credit with Aequum Capital Financial, LLC
- The Company's new Oracle ERP system went live on August 1, 2022
- The Company successfully launched its Direct-to-Consumer strategy with www.firstime.com
Financial Results Summary
Income Statement Summary | Second Quarter Period | Year to Date Period | ||||||||||||||
| 6/30/2022 | 6/30/2021 | 6/30/2022 | 6/30/2021 | |||||||||||||
Net Sales | $ | 3,661,000 | $ | 5,305,000 | $ | 9,799,000 | $ | 12,614,000 | ||||||||
Sales Growth % | -31.0 | % | 23.2 | % | -22.3 | % | 65.0 | % | ||||||||
EBITDA | $ | (1,014,000 | ) | $ | 187,000 | $ | (1,623,000 | ) | $ | 886,000 | ||||||
Margin % | -27.7 | % | 3.5 | % | -16.6 | % | 7.0 | % | ||||||||
Net Income | $ | (1,098,000 | ) | $ | 43,000 | $ | (1,808,000 | ) | $ | 668,000 | ||||||
Margin % | -30.0 | % | 0.8 | % | -18.5 | % | 5.3 | % | ||||||||
Earnings per Share | $ | (0.95 | ) | $ | 0.04 | $ | (1.57 | ) | $ | 0.58 | ||||||
EPS Growth % | NMF | -90.7 | % | NMF | 18.4 | % | ||||||||||
Wtd. Avg. Shares Out. | 1,154,651 | 1,154,651 | 1,154,651 | 1,154,651 | ||||||||||||
Balance Sheet Summary | Year to Date Period | |||||||||||||||
| 6/30/2022 | 6/30/2021 | |||||||||||||||
Net Tangible Working Capital | $ | 8,519,000 | $ | 11,870,000 | ||||||||||||
Net Debt | $ | 4,638,000 | $ | 6,133,000 | ||||||||||||
Total Shareholder's Equity | $ | 7,693,000 | $ | 9,727,000 | ||||||||||||
Operational Results Summary
Chairman and CEO Christopher D. Bering said "the second and third quarters of 2022 will be a reset for our Company as we put the losses driven by the hyperinflationary container environment of 2021 and 2022 behind us. Not only did we bring in fresh capital in the form of a new asset-based line of credit with Aequum Capital Financial, LLC out of Chicago, but we are also fortunate enough to have secured an additional investment from professional small cap investor Karl Brewer. Karl brings expertise to our Company having been a professional small cap investor with William Blair for decades, and we value his insight as we work towards returning to our long-term growth and profitability objectives."
Bering continued, "The organization continues to look forward and we see bright spots as we approach the end of the year. Though we expect the third quarter to be as challenging as the second quarter, the cost of shipping from Asia into the United States has fully normalized which has allowed us to restart the flow of inventory from overseas. We had previously put such imports on pause due to hyperinflation in the container shipping market. The Company will have close to
Investor Karl Brewer added "I'm excited to have the opportunity to invest into FirsTime Design. The Company's exposure to the fast-growing home furnishings eCommerce market coupled with its lean and scalable platform made this an attractive investment for me. I look forward to working with the Company to achieve great things."
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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