Insignia Systems, Inc. Announces Fourth Quarter And Full Year 2021 Financial Results
Insignia Systems reported its Q4 2021 financial results, showing a net sales decrease of 10.4% to $4.5 million from Q4 2020. The operating loss widened to $1.3 million with a net loss of $1.0 million, or $0.56 per share. However, annual net sales for 2021 rose 11.6%, reaching $19.5 million. Despite progress in client engagement and restructuring, the company faces challenges due to competitive pressures and expensive litigation. Insignia is considering strategic options for maximizing shareholder value, with no current updates available.
- 2021 net sales increased by 11.6% to $19.5 million.
- Non-signage businesses contributed 72% of overall sales.
- Reduction in general and administrative expenses due to less litigation cost.
- Q4 2021 net sales fell 10.4%, impacted by a 64.3% drop in POPS revenue.
- Operating loss increased to $1.3 million in Q4.
- Cash and cash equivalents decreased to $3.9 million from $7.1 million in 2020.
MINNEAPOLIS, MN / ACCESSWIRE / March 8, 2022 / Insignia Systems, Inc. (Nasdaq:ISIG) ("Insignia") today reported financial results for the fourth quarter ("Q4") and the full year ended December 31, 2021.
Overview
- Q4 2021 net sales decreased
10.4% to$4.5 million from$5.1 million in Q4 2020. - Q4 2021 operating loss was
$1.3 million compared to operating loss of$1.0 million in Q4 2020. - Q4 2021 net loss was
$1.0 million , or$0.56 per basic and diluted share, compared to net loss of$1.0 million , or$0.55 per basic and diluted share in Q4 2020. - 2021 net sales were
$19.5 million , an increase of11.6% from$17.5 million in 2020. - 2021 operating loss was
$4.8 million compared to operating loss of$4.8 million in 2020. - 2021 net loss was
$3.5 million , or$2.01 per basic and diluted share, compared to net loss of$4.6 million , or$2.66 per basic and diluted share in 2020.
Insignia's President and CEO, Kristine Glancy, commented, "Overall 2021 was a pivotal year for our organization. We successfully launched our new branding at the beginning of the year, and have realized increased engagement, new leads and higher rates of retention from our clients. We transformed our organization with both an overall restructure and recruitment of new talent focused on our future growth. We expanded our overall client base, with new brands, retailers and categories increasing our overall reach in the marketplace. Our strong revenue growth, of
Ms. Glancy continued, "As I reflect on our transformation, we have taken an organization that primarily produced and sold signage for over two decades to an organization that sells sophisticated brand-specific retail experiences to a diversified brand and retailer base. We are working with a broader range of brands and retailers as a result of our diversification of both internal talent and external solutions, which has allowed us to grow and expand into new revenue streams. While we will continue to optimize our cost structure and investments to improve overall profitability, I would be hardpressed to not recognize and appreciate the journey we have been on and the impact we have made for so many of our amazing clients."
We are also continuing to explore strategic options to maximize shareholder value. Potential strategic alternatives include, but are not limited to, an acquisition, merger, business combination, in-licensing, or other strategic transaction. There can be no assurance that this process will result in any transaction, and the Company has no updates at this stage. Insignia has engaged Chardan to act as its strategic financial advisor to assist the Company in this review process.
Q4 2021 Results
Net sales decreased
Gross profit in Q4 2021 decreased to
Selling expenses in Q4 2021 were
Marketing expenses in Q4 2021 were
General and administrative expenses in Q4 2021 were
Other income in Q4 2021 was
Income tax for Q4 2021 was (1.0)% of pretax loss, or an expense of
As a result of the items above, the net loss for Q4 2021 was
As of December 31, 2021, 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/A for the year ended December 31, 2020 and additional risks, if any, identified in our Quarterly Reports on Form 10-Q and 10-Q/A 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.
Contact:
Insignia Systems, Inc.
Kristine Glancy, CEO
(763) 392-6200
Insignia Systems, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net sales | $ | 4,528,000 | $ | 5,054,000 | $ | 19,503,000 | $ | 17,482,000 | ||||||||
Cost of sales | 3,980,000 | 4,022,000 | 16,273,000 | 14,626,000 | ||||||||||||
Gross profit | 548,000 | 1,032,000 | 3,230,000 | 2,856,000 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling | 525,000 | 645,000 | 1,931,000 | 2,877,000 | ||||||||||||
Marketing | 271,000 | 215,000 | 1,032,000 | 1,015,000 | ||||||||||||
General and administrative | 1,006,000 | 1,162,000 | 5,058,000 | 3,998,000 | ||||||||||||
Gain on sale of custom print business | - | - | - | (195,000 | ) | |||||||||||
Operating loss | (1,254,000 | ) | (990,000 | ) | (4,791,000 | ) | (4,839,000 | ) | ||||||||
Other income, net | 282,000 | 41,000 | 1,299,000 | 33,000 | ||||||||||||
Loss before taxes | (972,000 | ) | (949,000 | ) | (3,492,000 | ) | (4,806,000 | ) | ||||||||
Income tax expense (benefit) | 10,000 | 12,000 | 42,000 | (191,000 | ) | |||||||||||
Net Loss | $ | (982,000 | ) | $ | (961,000 | ) | $ | (3,534,000 | ) | $ | (4,615,000 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.56 | ) | $ | (0.55 | ) | $ | (2.01 | ) | $ | (2.66 | ) | ||||
Diluted | $ | (0.56 | ) | $ | (0.55 | ) | $ | (2.01 | ) | $ | (2.66 | ) | ||||
Shares used in calculation of net loss per share: | ||||||||||||||||
Basic | 1,770,000 | 1,745,000 | 1,760,000 | 1,734,000 | ||||||||||||
Diluted | 1,770,000 | 1,745,000 | 1,760,000 | 1,734,000 | ||||||||||||
SELECTED BALANCE SHEET DATA
(Unaudited)
December 31, | December 31, | |||||||
2021 | 2020 | |||||||
Cash and cash equivalents | $ | 3,851,000 | $ | 7,128,000 | ||||
Working capital | 3,716,000 | 7,668,000 | ||||||
Total assets | 10,650,000 | 14,289,000 | ||||||
Total liabilities | 7,457,000 | 7,621,000 | ||||||
Shareholders' equity | 3,193,000 | 6,668,000 | ||||||
Working capital represents current assets less current liabilities.
SOURCE: Insignia Systems, Inc.
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