Margo Caribe, Inc. Announces 2020 and Year-to-Date 2nd Quarter 2021 Results

Rhea-AI Summary

Margo Caribe, Inc. (OTC: MRGO) reported a stellar financial performance, achieving $42.9 million in revenue for 2020, a 97% increase from 2019. The company also revealed second-quarter 2021 sales of $33.3 million, marking a 51% rise year-over-year. Net income surged to $6.7 million in 2020, up 339%, with a net income per diluted share of $1.92. Significant production capacity expansion is noted, with a new warehouse and robotic lines boosting output threefold. The company continues to build momentum in eCommerce sales, showcasing a solid growth trajectory.

Positive

• Revenue increased by 97% to $42.9 million in 2020.
• Net income reached $6.7 million, a 339% increase from the previous year.
• Production capacity improved significantly with the new 552,000 sq. ft. warehouse and threefold increase in robotic lines.

Negative

• None.

JACKSONVILLE, Fla., July 13, 2021 /PRNewswire/ -- Margo Caribe, Inc. (OTC SYMBOL: MRGO) (Margo), a market leader in the home and garden segment, today announced sales of $42.9 million for the year 2020, an increase of $21.1 million, or 97% percent from fiscal 2019.  The Company also reported year-to-date second quarter 2021 unaudited results that were highlighted by sales of $33.3 million, an increase of 51 % over prior year.   

"We are very pleased with our sales and earnings growth trend for 2020 and through the 1^st half of 2021," said Michael Spector, CEO of Margo.  "We believe we are still in the early innings in getting our diversified line of products established as proven winners within our big-box customer product offering.  I would also like to thank our employees and suppliers for the exceptional performance and resilience demonstrated during what was a difficult year to operate."

2020 Highlights

• Revenue, net of allowances, increased 97% to $42.9 million.
• Net income of $6.7 million, or $1.92 per diluted share increased 339% from prior year.
• Pre-tax income increased 324% to $8.4 million.
• Total assets ended at $20.8 million, up 63% from prior year.

The Company significantly increased warehouse and production capacity with its move into a new warehouse with 552,000 square feet.  Four additional robotic lines were added effectively increasing production capacity by 3 times the previous facility.    

Six Months Ended June 30, 2021 Highlights

• Revenue, net of allowances, increased 51% to $33.3 million over the same period last year.
• Net income of $6.4 million, increased 31%, or $1.81 per diluted share.
• Ecommerce sales, despite the significant growth experienced in 2020 of 97%, continued to trend positively this year.

"Fiscal 2021 continues to build off of the strong growth trend experienced last year leveraging the significant investment placed in our operating facilities and production capacity over the prior year," said Michael Spector, CEO.   

Statements of Operations:
In Thousands except per share data
	Year Ended December 31,			Six Months Ended June 30,
	Audited			Unaudited
	2019	2020		2020	2021
Revenue	$             21,754	$            42,870		$     22,140	$      33,351
Cost of Sales	15,227	27,024		13,900	21,250
Gross Margin	6,527	15,846		8,240	12,101
Operating Expense	4,045	6,739		1,939	3,806
Operating Income	2,481	9,107		6,301	8,295
Interest Expense	584	529		287	259
Other Expense	72	225		-	-
Pre-tax Income	1,969	8,353		6,014	8,036
Income Tax	433	1,613		1,160	1,551
Net Income	1,537	6,740		4,854	6,485
Net Income per share
Basic	$0.54	$2.35		$1.70	$2.27
Diluted	$0.44	$1.92		$1.38	$1.85

About Margo Caribe, Inc.

Margo Caribe, Inc. through its subsidiary Margo Outdoor Living, Inc. (MOL). has benefited by building key relationships with the largest big-box retailers in its industry segment. Its focus on product development, world-wide supplier sourcing, cost effective logistics and state-of-the-art automation has contributed to its success in growing both top and bottom-line results.   MOL offers a wide range of products in the lawn and garden segment.  This includes sales of landscaping pebbles, mulch, glass, pottery and tile products. The Company's customer base is predominately big-box retailers but also sells products directly to consumers through the eCommerce sales channel. 

MOL is a wholly-owned subsidiary of Margo Caribe, Inc., a Puerto Rico entity.   Effective December 22, 2020, MOL converted from a Florida corporation to a Delaware corporation and changed its name from Margo State Line, Inc. to Margo Outdoor Living, Inc.

View original content:https://www.prnewswire.com/news-releases/margo-caribe-inc-announces-2020-and-year-to-date-2nd-quarter-2021-results-301332973.html

SOURCE Margo Caribe, Inc.

FAQ

What were Margo Caribe's total revenues for 2020?

Margo Caribe reported total revenues of $42.9 million for 2020.

How much did Margo Caribe's net income increase in 2020?

Margo Caribe's net income increased by 339% to $6.7 million in 2020.

What is the stock symbol for Margo Caribe?

The stock symbol for Margo Caribe is MRGO.

How much sales did Margo Caribe achieve in the second quarter of 2021?

Margo Caribe achieved sales of $33.3 million in the second quarter of 2021, a 51% increase over the prior year.

What is the significance of the new warehouse for Margo Caribe?

The new warehouse, spanning 552,000 square feet, significantly increases Margo Caribe's production capacity by three times.