Margo Caribe, Inc. Announces Fiscal 2021 Results

Rhea-AI Summary

Margo Caribe, Inc. (OTC: MRGO) reported a strong performance for fiscal 2021, achieving $52 million in sales, a 21% increase from 2020. Pre-tax income reached $7.6 million, although it declined 9% due to higher logistics costs. The company showed significant growth, with sales up 138% compared to pre-COVID levels in 2019. Additionally, net income was $5.9 million or $1.47 per share. Margo is addressing challenges like supply chain disruptions and rising freight costs while pursuing initiatives to diversify suppliers.

Positive

• Sales increased 21% to $52 million in 2021.
• Pre-tax income rose 285% compared to fiscal 2019.
• Strong cash flow with net debt decreased from $8.4 million to $.33 million.
• Debt to equity ratio improved to 95% from 209% year-over-year.

Negative

• Pre-tax income declined 9% from the previous year due to increased logistics costs.
• Operating margins were pressured by supply chain issues and rising freight costs.

JACKSONVILLE, Fla., May 9, 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 year ended December 31, 2021. 

Sales for the year ended December 31, 2021, totaled $52 million, an increase of $9.0 million, or 21 percent from the prior year 2020.  The Company also reported full year 2021 audited results that included pre-tax income of $7.6 million and net income of $5.9 million or $1.47 per share.    

"Fiscal 2021 was another record year with sales increasing above the $50 million level," said Michael Spector, CEO. "We were pleased to achieve such strong sales growth in 2021 sequential to the extraordinary 98% growth rate posted in fiscal 2020 during the height of the pandemic."  

Mr. Spector added, "During 2021 we dealt with some unique issues that pressured our operating margins, including supply chain disruption, inventory availability and a material increase in freight costs from Asia. Although we believe supply chain issues will eventually normalize over the next twelve to eighteen months, recent trends have caused us to actively undertake initiatives to diversify suppliers, explore lower cost logistic alternatives, and broaden our product offerings."      

Twelve Months Ended December 31, 2021 Highlights

• Revenue, net of allowances, increased 21% to $52 million over prior year.
• Fiscal 2021 sales are up 138% over fiscal 2019 pre-Covid sales levels.
• Pre-tax income of $7.6 million, declined 9% from prior year due primarily to higher logistics costs and expansion of warehouse capacity and production facilities.
• Fiscal 2021 pre-tax income has increased 285% from fiscal 2019 levels
• 2021 saw strong cash flow, evidenced by net debt, debt less cash, declining from $8.4 million ended 2020 to $.33 million ended 2021.
• Debt to equity ratio ended 2021 at 95% compared to 209% in the prior year.

 

Statements of Operations:
Period Ended December 31,
In Thousands except per share data
		Twelve Months Ended			Three Months Ended
		Audited			Unaudited
		2021	2020		2021	2020
Revenue		$          51,825	$         42,870		$         7,803	$           7,275
Cost of Sales		36,191	27,024		7,873	4,167
Gross Margin		15,634	15,846		(70)	3,108
Operating Expense		7,903	6,739		2,005	4,376
Operating Income		7,731	9,107		(2,075)	(1,268)
Interest Expense		493	529		138	135
Other Income / (Expense)		337	(225)		(15)	(226)
Pre-tax Income		7,575	8,353		(1,524)	(1,628)
Income Tax		1,696	1,613		(78)	(341)
Net Income		5,879	6,740		(1,446)	(1,286)
Net income per share		$1.47	$1.68		-$0.36	-$0.32

 

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.

Media Contact: 
Priscilla Franco
pfranco@margocaribe.com

View original content:https://www.prnewswire.com/news-releases/margo-caribe-inc-announces-fiscal-2021-results-301543063.html

SOURCE Margo Caribe, Inc.

FAQ

What were Margo Caribe's fiscal 2021 sales results?

Margo Caribe reported sales of $52 million for fiscal 2021, a 21% increase from 2020.

What is Margo Caribe's net income for fiscal 2021?

The company reported a net income of $5.9 million, or $1.47 per share for fiscal 2021.

How did Margo Caribe's pre-tax income change in fiscal 2021?

Pre-tax income decreased by 9% to $7.6 million, largely due to increased logistics costs.

What is the future outlook for Margo Caribe regarding supply chain issues?

Margo Caribe expects supply chain issues to normalize over the next 12 to 18 months and is diversifying suppliers.