Margo Caribe, Inc. Announces First Quarter 2022 Results
Margo Caribe, Inc. (OTC SYMBOL: MRGO) reported its first quarter results for 2022, with sales of $13.7 million, a decline of less than 2% year-over-year. Pre-tax income was approximately $3 million, resulting in a net income of $2.3 million, or $0.58 per share. Despite facing challenges from high freight costs and U.S. inflation affecting sales, the company improved product margins through pricing flexibility and operational efficiencies. Cash flow remained strong, with net debt reducing by 30% to approximately $8 million.
- Sales only declined by less than 2% year-over-year, indicating stability.
- Net income remained strong at $2.3 million, or $0.58 per share.
- Net debt decreased by 30% to approximately $8 million, enhancing financial stability.
- Product margins improved due to operational efficiencies and pricing strategies.
- Sales down 2%, potentially indicating a trend affected by inflation.
- Operating margins under pressure from higher sea freight and diesel costs.
JACKSONVILLE, Fla., May 19, 2022 /PRNewswire/ -- Margo Caribe, Inc. (OTC SYMBOL: MRGO) (Margo), a market leader in the home and garden segment, today announced fourth quarter and full year operating results of its wholly-owned subsidiary, Margo Outdoor Living, Inc. for the quarter ended March 31, 2022.
Sales for the first quarter ended March 31, 2022, totaled
"We consider the first quarter sales to be solid when put within the context of the extraordinary growth experience last year, a slow start to spring this year and that the U.S inflation rate is impacting discretionary sales for our big-box customer base," said Michael Spector, CEO.
Mr. Spector expanded, "our operating margins remain under pressure due to higher sea freight rates and increasing diesel costs, but we were able to stabilize our product margin in the first quarter and offset these higher costs through better pricing flexibility, diversification of product mix and more efficient operations. Our capital investments over the last two years in technology are paying off with increased production output at lower costs. We are also encouraged by recent business development initiatives that will further diversify our product offering, particularly into the pottery, tile and commodity rock segments."
Three Months Ended March 31, 2022 Highlights
- Gross revenue was
$15 million for the quarter, down .7% from prior year. - The sales growth profile remains strong, up
81% over 2020 pre-Covid sales levels. - Pre-tax income of
$3 million , declined2% from prior year due primarily to higher warehouse and supply costs. Product margins improved slightly compared to last year due to more efficient fulfillment costs, product diversification and pricing flexibility. - Pre-tax quarterly income is up
191% from 2020 levels. - Cash flow remains strong, net debt (debt less cash), ended the quarter at approximately
$8 million , down30% from first quarter last year.
Three Months Ended March 31, | 2022 | 2021 |
Unaudited | ||
In thousands except for per share data | ||
Revenue | $ 13,686 | $ 13,957 |
Cost of Sales | 8,572 | 8,762 |
Gross margin | 5,114 | 5,194 |
Operating expense | 2,012 | 1,972 |
Operating income | 3,012 | 3,222 |
Interest expense | 91 | 146 |
Other income / (expense) | 0 | 0 |
Pre-tax income | 3,012 | 3,076 |
Income Tax | (675) | (689) |
Net Income | 2,337 | 2,387 |
Net income per share | $.58 | $.60 |
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.
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SOURCE Margo Caribe, Inc.
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