iGo Reports Second Quarter Financial Results

Rhea-AI Summary

iGo, Inc. (OTC PINK: IGOI) reported strong revenue growth in its Q2 2021 results. Revenue reached $18.1 million, an increase from $15.4 million in Q2 2020. Net income also rose to $1.1 million, or $0.14 per share, compared to $0.8 million, or $0.11 per share, in the previous year. For the six months ending June 30, 2021, revenue was $34.1 million, up from $30.6 million year-over-year, with net income at $1.8 million, or $0.23 per share, compared to $1.3 million, or $0.16 per share, in 2020.

Positive

• Revenue increased by 17.6% YoY in Q2 2021.
• Net income rose by 37.5% YoY in Q2 2021, signaling improved profitability.
• First half of 2021 revenue grew by 17.9% YoY.

Negative

• Potential limitations on $113.2 million federal net operating losses may affect future tax benefits.

iGo, Inc. (OTC PINK: IGOI) (the "Company") today announced operating results for the second quarter and six months ended June 30, 2021.

Financial Overview

Second quarter of 2021 compared with second quarter of 2020

• Revenue for the second quarter of 2021 was $18.1 million, as compared to revenue of $15.4 million in the same period of the prior year.
• Net income was $1.1 million, or $0.14 per share, for the second quarter of 2021, as compared to net income of $0.8 million, or $0.11 per share, in the same period of the prior year.

Six months ended June 30, 2021 compared with six months ended June 30, 2020

• Revenue for the six months ended June 30, 2021 was $34.1 million, as compared to revenue of $30.6 million in the same period of the prior year.
• Net income was $1.8 million, or $0.23 per share, for the six months ended June 30, 2021, as compared to net income of $1.3 million, or $0.16 per share, in the same period of the prior year.

Net Operating Losses

At December 31, 2020, the Company had carryforwards of federal net operating losses ("NOLs") of approximately $113.2 million available to reduce future federal taxes. The Company has a valuation allowance to reserve its deferred tax asset associated with the NOLs. The Company’s Federal NOLs may be subject to an Internal Revenue Code Section 382 limitation, and as a result, may not be available to reduce taxable income.

About the Company

The Company was previously a provider of mobile accessories and is evaluating alternative strategies for uses of its capital and the iGo brand. The Company's Kasco subsidiary (www.kasco.com) provides metallic blade products for the meat cutting, food cutting, and wood cutting industries to the global market. Its route distribution unit provides the U.S. and Canada retail grocery and retail food industries with quality butcher supplies, resupply products, and seasonings. Headquartered in St. Louis and founded in 1901, Kasco has manufacturing, sales, and warehouse operations in St. Louis, Canada, Mexico, Wales, and Germany.

Forward-Looking Statements

Certain information in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated. Such forward-looking statements do not guaranty future performance and are subject to various factors that could cause actual results to differ materially. Undue reliance should not be placed on such forward-looking statements. Due to the continued uncertainty of the impact of COVID-19 on the global economy, it is difficult to predict the duration of the pandemic and its impact on the Company's business, operations, and financial condition. The Company undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Additionally, the Company does not undertake any responsibility to provide updates on the occurrence of unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.

(Financial Tables Follow)

iGo, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands, except common shares)
	June 30, 2021			December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	2,745		$	2,427
Accounts receivable - net of allowance for doubtful accounts of $422 and $464 at June 30, 2021 and December 31, 2020, respectively		7,643			7,208
Inventories		6,418			6,342
Prepaid expenses and other current assets		2,349			1,366
Total current assets		19,155			17,343
Property, plant and equipment, net		12,447			12,085
Operating lease right-of-use assets		520			758
Intangible assets, net		836			913
Deferred tax assets		1,327			1,343
Total Assets	$	34,285		$	32,442
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	3,394		$	4,806
Income taxes payable		—			608
Accrued expenses		5,428			3,371
Payable to related parties		—			392
Operating lease liabilities		413			467
Total current liabilities		9,235			9,644
Long-term debt		3,550			3,000
Long-term income taxes payable		—			382
Deferred tax liabilities		190			199
Long-term operating lease liabilities		101			280
Other non-current liabilities		1,558			1,343
Total Liabilities		14,634			14,848
Commitments and Contingencies
Stockholders' equity:
Common stock, $0.01 par value: authorized 10,000,000 shares; 7,877,278 shares issued and outstanding at June 30, 2021 and December 31, 2020		79			79
Accumulated other comprehensive loss		(312)			(537)
Capital deficit		(20,608)			(20,608)
Retained earnings		40,492			38,660
Total Stockholders' Equity		19,651			17,594
Total Liabilities and Stockholders' Equity	$	34,285		$	32,442

iGo, Inc.
Consolidated Statements of Operations
(Unaudited)
(in thousands, except common shares and per common share data)
	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Revenue	$	18,094		$	15,366		$	34,121		$	30,562
Costs and expenses
Cost of goods sold	12,100			7,863			22,646			15,772
Selling, general and administrative expenses	4,487			6,203			9,089			12,797
Restructuring charges	—			—			(1)			(28)
Interest expense	23			71			39			147
Gains from asset dispositions	(25)			(32)			(55)			(62)
Other expense (income), net	13			(72)			36			(109)
Total costs and expenses	16,598			14,033			31,754			28,517
Income before income taxes	1,496			1,333			2,367			2,045
Income tax provision	390			505			535			789
Net income	$	1,106		$	828		$	1,832		$	1,256
Net income per common share - basic and diluted	$	0.14		$	0.11		$	0.23		$	0.16
Weighted average common shares outstanding - basic and diluted	7,877,278			7,877,278			7,877,278			7,877,278

 

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FAQ

What were iGo, Inc.'s Q2 2021 revenue and net income?

iGo, Inc. reported Q2 2021 revenue of $18.1 million and net income of $1.1 million.

How does iGo, Inc.'s Q2 2021 performance compare to Q2 2020?

In Q2 2021, iGo, Inc. saw a revenue increase from $15.4 million in Q2 2020 to $18.1 million, and net income rose from $0.8 million to $1.1 million.

What is the status of iGo, Inc.'s net operating losses?

As of December 31, 2020, iGo, Inc. had approximately $113.2 million in federal net operating losses, which may face limitations under IRS rules.

What were the total revenues for the first half of 2021 for iGo, Inc.?

For the first half of 2021, iGo, Inc. reported total revenues of $34.1 million, up from $30.6 million in the same period of 2020.

What was iGo, Inc.'s net income for the first half of 2021?

iGo, Inc. achieved a net income of $1.8 million, or $0.23 per share, for the first half of 2021.