FirsTime Design Limited Announces Third Quarter 2020 Results

Rhea-AI Summary

Firstime Design Limited (OTC PINK:FTDL) announced substantial growth in its financial results for Q3 2020, with net sales increasing by 82% to $6.36 million and EPS soaring by 498% to $0.67. Year-to-date figures also reflect a positive trend, with net income rising to $1.34 million and total shareholder's equity reaching $5.66 million. The company expanded its working capital line of credit by 140% and opened a new West Coast distribution facility, enhancing its operational efficiency and response to COVID-19 challenges.

Positive

• Q3 2020 net sales increased by 82% to $6,355,478.
• EPS grew by 498% to $0.67.
• Year-to-date net income rose to $1,338,000.
• Total shareholder's equity increased to $5,660,600.
• Working capital line of credit expanded by 140%.
• Opened a new West Coast distribution facility.

Negative

• None.

PEWAUKEE, WI / ACCESSWIRE / October 19, 2020 / FIRSTIME DESIGN LIMITED (OTC PINK:FTDL) today announced financial results for the third quarter and year to date periods ending September 30, 2020. Third quarter highlights include:

• Q3 2020 net sales and EPS growth of 82% and 498%, respectively
• Increased working capital line of credit availability by 140%
• Grand opening of the Company's West Coast distribution facility

Financial Results Summary

		Third Quarter Period								Year to Date Period
		9/30/2020				9/30/2019				9/30/2020				9/30/2019
Net Sales		$	6,355,478			$	3,487,800			$	14,000,100			$	9,636,400
Sales Growth %			82.2	%			-2.6	%			45.3	%			-4.6	%
EBITDA		$	832,349			$	203,691			$	1,499,900			$	464,000
Margin %			13.1	%			5.8	%			10.7	%			4.8	%
Net Income		$	773,734			$	129,426			$	1,338,000			$	503,200
Margin %			12.2	%			3.7	%			9.6	%			5.2	%
Earnings per Share		$	0.67			$	0.11			$	1.16			$	0.44
EPS Growth %			497.8	%			N/A				165.9	%			N/A
Wtd. Avg. Shares Out.			1,154,651				1,154,651				1,154,651				1,154,651

		Year to Date Period
		9/30/2020				9/30/2019
Net Tangible Working Capital		$	6,839,800			$	4,287,300
Net Debt		$	3,109,000			$	2,347,100
Total Shareholder's Equity		$	5,660,600			$	4,057,100

Operational Results Summary

Christopher D. Bering, Chairman & CEO, said, "we are delighted with the organization's overall performance, both top and bottom line. These results come from years of strategic initiatives that have allowed us to take advantage of the shift in consumer spending patterns. The diversification of our customers, and the increase in our eCommerce presence, combined with our global manufacturing base with locations in China, Egypt, Italy, Vietnam, Taiwan, India and the USA, has allowed us to successfully overcome the supply issues from COVID-19. I am also very excited to announce the opening of our new West Coast distribution facility. This location complements our already diversified distribution capabilities in the Midwest and East Coast. This new facility allows us to get our products to market expeditiously which is critical to our continued success. I am enthusiastic about the Company's operational positioning, which has taken several restructurings over many years to complete. These moves have allowed the organization to stay agile and fluid, imperative in these ever-changing markets. In addition, the COVID-19 pandemic has challenged all of us to think, live, and work in new ways. The Company is working with all employees to offer flexibility by supporting individual work styles while balancing operational needs, and more importantly, safety for them and their families."

Mr. Bering concluded, "the business momentum is strong, and the trends we are experiencing gives me the confidence in the vision and path forward. We remain focused on value-driving strategies, which should continue to create favorable results in the years to come."

Andrew Bass, Chairman of the Capital Allocation Committee, added that "the Company secured a meaningful increase in its Line of Credit in the third quarter. This increase will ensure that our balance sheet can keep up with the higher business activity that we started to see in 2020. Accordingly, this has led to sizable improvements in income generation, allowing the Company to continue to use its over $14 million Federal and $5 million State Net Operating Loss. The Company does not expect to pay any meaningful amounts of cash taxes for the foreseeable future, which significantly benefits our ability to generate free cash flow and maintain high returns on invested capital. In addition to running a growing and profitable business, we continue to explore ways to increase our per-share intrinsic value over market cycles."

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 InnerSpace, including statements that involve risks and uncertainties concerning FirsTime's acquisition of InnerSpace and 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 synergies of FirsTime and InnerSpace may not be achieved, the combined operations may not be successfully integrated in a timely manner, if at all, general economic conditions in regions in which FirsTime and InnerSpace do business, and the possibility that FirsTime or InnerSpace 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 or InnerSpace.

Contact:

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

SOURCE: FirsTime Design Limited

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FAQ

What were Firstime Design Limited's Q3 2020 sales figures?

Firstime Design Limited reported net sales of $6,355,478 for Q3 2020, an increase of 82% compared to the previous year.

How much did EPS grow for Firstime Design Limited in Q3 2020?

Earnings per share (EPS) for Q3 2020 increased by 498% to $0.67.

What is the net income for Firstime Design Limited for the year to date period ending September 30, 2020?

For the year to date period ending September 30, 2020, Firstime Design Limited reported a net income of $1,338,000.

How did Firstime Design Limited's total shareholder's equity change by September 30, 2020?

By September 30, 2020, Firstime Design Limited's total shareholder's equity increased to $5,660,600.

What major operational development did Firstime Design Limited announce in the PR?

Firstime Design Limited announced the opening of a new West Coast distribution facility to enhance operational efficiency.