Insignia Systems, Inc. Announces 2022 Third Quarter and Nine-Month Financial Results
Insignia Systems reported a strong Q3 2022, with net sales increasing by 39.4% to $4.87 million compared to $3.49 million in Q3 2021. Operating income surged to $11.54 million, aided by a $12 million gain from litigation. While non-POPS revenue grew by 101%, POPS revenue declined by 82%. Gross profit improved to 17.2% of net sales, with a net income of $11.8 million or $6.57 per share. Cash reserves also increased significantly to $14.3 million.
- Net sales increased by 39.4% to $4.87 million.
- Operating income rose to $11.54 million, including a $12 million litigation gain.
- Gross profit improved to 17.2% of net sales.
- Net income of $11.8 million or $6.57 per share.
- POPS revenue declined by 82% compared to the prior year.
MINNEAPOLIS, MN / ACCESSWIRE / November 8, 2022 / Insignia Systems, Inc. (NASDAQ:ISIG) ("Insignia") today reported financial results for the third quarter ended September 30, 2022 ("Q3").
Overview
- Q3 2022 net sales increased
39.4% to$4,869,000 from$3,493,000 in Q3 2021. - Q3 2022 operating income was
$11,539,000 (including a$12 million gain on litigation) compared to operating loss of$925,000 in Q3 2021.
Insignia's President and CEO Kristine Glancy commented, "Q3 2022 sales increased
"Our turn-key approach of being a one-stop shop of retail experts from design to execution continues to resonate with our clients and retail partners. Our clients know when they choose to work with Insignia that we will manage every detail along the journey to deliver them a best-in-class program. This has resulted in increased client retention rates this year, and we have also added a meaningful number of new brands, many of which were referred to us from existing clients based on their overall satisfaction. One of our clients leveraged our expertise for an execution in Canada, creating our first display in another country. Our team continues to exceed expectations with the vast array of experience we bring to the table, and I couldn't be prouder of how they continue to step up to any challenge or opportunity and make it better for our clients."
In July 2022, we settled the ongoing litigation with News America Marketing, resulting in net proceeds after expenses of
Q3 2022 Results
Net sales increased
Gross profit in Q3 2022 increased to
Selling expenses in Q3 2022 were
Marketing expenses in Q3 2022 were
General and administrative expenses in Q3 2022 were
Gain from litigation settlement in Q3 2022 was
Income tax benefit for Q3 2022 was
As a result of the items above, the net income for Q3 2022 was
As of September 30, 2022, cash and cash equivalents and restricted cash totaled
About Insignia Systems, Inc.
Insignia Systems, Inc. is a leading provider of in-store solutions to consumer-packaged goods ("CPG") manufacturers, retailers, shopper marketing agencies and brokerages. The Company's primary solutions are merchandising solutions, on-pack solutions and signage.
For additional information, contact (800) 874-4648, or visit the Insignia website at www.insigniasystems.com
Investor inquiries can be submitted to investorrelations@insigniasystems.com.
Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
Statements in this press release that are not statements of historical or current facts are considered forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. The words "anticipate," "continue," "expect," "intend," "remain," "seek," "will" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these or any forward-looking statements, which speak only as of the date of this press release. Statements made in this press release regarding, for instance, the ongoing exploration of strategic alternatives, anticipated future profitability, future service revenues, innovation and transformation of Insignia's business, allocations of resources, benefits of new relationships, and the impacts of the COVID-19 pandemic and efforts to mitigate the same are forward-looking statements. These forward-looking statements are based on current information, which we have assessed and which by its nature is dynamic and subject to rapid and even abrupt changes. As such, actual results may differ materially from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including those set forth in our Annual Report on Form 10-K for the year ended December 31, 2021 and additional risks, if any, identified in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K filed with the SEC. Such forward-looking statements should be read in conjunction with Insignia's filings with the SEC. Insignia assumes no responsibility to update the forward-looking statements contained in this press release or the reasons why actual results would differ from those anticipated in any such forward-looking statement, other than as required by law.
Insignia Systems, Inc.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Net sales | $ | 4,869,000 | $ | 3,493,000 | $ | 14,271,000 | $ | 14,975,000 | ||||||||
Cost of sales | 4,031,000 | 2,948,000 | 11,737,000 | 12,293,000 | ||||||||||||
Gross profit | 838,000 | 545,000 | 2,534,000 | 2,682,000 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling | 294,000 | 425,000 | 926,000 | 1,406,000 | ||||||||||||
Marketing | 249,000 | 266,000 | 787,000 | 761,000 | ||||||||||||
General and administrative | 756,000 | 779,000 | 2,310,000 | 4,052,000 | ||||||||||||
Total operating expenses | 1,299,000 | 1,470,000 | 4,023,000 | 6,219,000 | ||||||||||||
Gain from litigation settlement, net | 12,000,000 | - | 12,000,000 | - | ||||||||||||
Operating income (loss) | 11,539,000 | (925,000 | ) | 10,511,000 | (3,537,000 | ) | ||||||||||
Other income, net | 72,000 | 13,000 | 100,000 | 1,017,000 | ||||||||||||
Income (loss) before income taxes | 11,611,000 | (912,000 | ) | 10,611,000 | (2,520,000 | ) | ||||||||||
Income tax expense (benefit) | (190,000 | ) | 9,000 | (168,000 | ) | 32,000 | ||||||||||
Net income (loss) | $ | 11,801,000 | $ | (921,000 | ) | $ | 10,779,000 | $ | (2,552,000 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 6.57 | $ | (0.52 | ) | $ | 6.02 | $ | (1.45 | ) | ||||||
Diluted | $ | 6.57 | $ | (0.52 | ) | $ | 6.00 | $ | (1.45 | ) | ||||||
Shares used in calculation of net income (loss) per share: | ||||||||||||||||
Basic | 1,795,000 | 1,766,000 | 1,790,000 | 1,757,000 | ||||||||||||
Diluted | 1,796,000 | 1,766,000 | 1,796,000 | 1,757,000 | ||||||||||||
SELECTED BALANCE SHEET DATA
| (Unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2022 | 2021 | |||||||
Cash and cash equivalents and restricted cash | $ | 14,253,000 | $ | 3,851,000 | ||||
Working capital | 14,000,000 | 3,716,000 | ||||||
Total assets | 20,067,000 | 10,650,000 | ||||||
Total liabilities | 5,965,000 | 7,457,000 | ||||||
Shareholders' equity | 14,102,000 | 3,193,000 | ||||||
| Working capital represents current assets less current liabilities. | ||||||||
Contact:
Insignia Systems, Inc.
Kristine Glancy, CEO
(763) 392-6200
SOURCE: Insignia Systems, Inc.
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FAQ
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