Syntec Optics Holdings, Inc. (Nasdaq: OPTX) Reports Second Quarter 2024 Financial Results
Syntec Optics Holdings, Inc. (Nasdaq: OPTX) reported Q2 2024 financial results, showing sequential revenue growth and a return to positive EBITDA and EPS. Key highlights include:
- Net sales of $7.01 million, up 12% from Q1 2024
- Adjusted EBITDA increased to $1.32 million from negative $0.67 million in Q1 2024
- EPS improved to $0.01 from negative $0.03 in Q1 2024
The company secured significant orders for space optics, defense microdisplays, and entered the high-growth data center market. Syntec expects Q3 2024 revenue to be between $9.5 - $11.0 million, with continued strength in communications and biomedical end-markets, and additional growth from defense-based product launches.
Syntec Optics Holdings, Inc. (Nasdaq: OPTX) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando una crescita sequenziale dei ricavi e un ritorno a EBITDA e EPS positivi. I principali risultati includono:
- Vendite netti di 7,01 milioni di dollari, un aumento del 12% rispetto al primo trimestre 2024
- EBITDA rettificato aumentato a 1,32 milioni di dollari rispetto a un EBITDA negativo di 0,67 milioni di dollari nel primo trimestre 2024
- EPS migliorato a 0,01 dollari rispetto a un EPS negativo di 0,03 dollari nel primo trimestre 2024
La società ha ottenuto ordini significativi per ottiche spaziali, microdisplay per la difesa ed è entrata nel mercato dei data center in rapida crescita. Syntec prevede ricavi nel terzo trimestre 2024 compresi tra 9,5 e 11,0 milioni di dollari, con una continua solidità nei mercati delle comunicazioni e biomedicali, e ulteriore crescita dai lanci di prodotti basati sulla difesa.
Syntec Optics Holdings, Inc. (Nasdaq: OPTX) informó los resultados financieros del segundo trimestre de 2024, mostrando un crecimiento secuencial de ingresos y un retorno a EBITDA y EPS positivos. Los puntos destacados incluyen:
- Ventas netas de 7,01 millones de dólares, un aumento del 12% en comparación con el primer trimestre de 2024
- EBITDA ajustado aumentó a 1,32 millones de dólares desde un EBITDA negativo de 0,67 millones de dólares en el primer trimestre de 2024
- EPS mejoró a 0,01 dólares desde un EPS negativo de 0,03 dólares en el primer trimestre de 2024
La empresa aseguró pedidos significativos para ópticas espaciales, micropantallas de defensa y entró en el mercado de centros de datos de alto crecimiento. Syntec espera que los ingresos del tercer trimestre de 2024 estén entre 9,5 y 11,0 millones de dólares, con una continua fortaleza en los mercados de comunicaciones y biomédicos, y un crecimiento adicional de los lanzamientos de productos basados en la defensa.
신텍 옵틱스 홀딩스, Inc. (Nasdaq: OPTX)는 2024년 2분기 재무 결과를 발표하며 수익이 증가하고 긍정적인 EBITDA 및 EPS로 돌아섰습니다. 주요 하이라이트는 다음과 같습니다:
- 순매출 701만 달러, 2024년 1분기 대비 12% 증가
- 조정된 EBITDA가 132만 달러로 증가, 2024년 1분기에서 -67만 달러에서 개선됨
- EPS가 0.01 달러로 개선, 2024년 1분기에서 -0.03 달러에서 상승
회사는 우주 광학, 방위용 마이크로디스플레이에 대한 중요한 주문을 확보했으며 성장세가 높은 데이터 센터 시장에 진입했습니다. 신텍은 2024년 3분기 매출이 950만에서 1100만 달러 사이일 것으로 예상하며, 통신 및 생의학 최종 시장에서 지속적인 강세와 방위 기반 제품 출시로 추가 성장을 예상하고 있습니다.
Syntec Optics Holdings, Inc. (Nasdaq: OPTX) a annoncé les résultats financiers du deuxième trimestre 2024, montrant une croissance séquentielle du chiffre d'affaires et un retour à un EBITDA et un EPS positifs. Les principaux points forts comprennent :
- Ventes nettes de 7,01 millions de dollars, en hausse de 12 % par rapport au premier trimestre 2024
- EBITDA ajusté passé à 1,32 millions de dollars, contre -0,67 millions de dollars au premier trimestre 2024
- EPS amélioré à 0,01 dollar, contre -0,03 dollar au premier trimestre 2024
La société a sécurisé des commandes importantes dans les domaines de l'optique spatiale, des micro-affichages de défense et a pénétré le marché en forte croissance des centres de données. Syntec prévoit des revenus pour le troisième trimestre 2024 compris entre 9,5 et 11,0 millions de dollars, avec une solidité continue sur les marchés des communications et biomédical, ainsi qu'une croissance supplémentaire grâce à des lancements de produits basés sur la défense.
Syntec Optics Holdings, Inc. (Nasdaq: OPTX) berichtete über die Finanzergebnisse für das zweite Quartal 2024, die ein sequenzielles Umsatzwachstum sowie eine Rückkehr zu positiver EBITDA und EPS zeigen. Zu den wichtigsten Highlights gehören:
- Nettoumsatz von 7,01 Millionen Dollar, ein Anstieg von 12% im Vergleich zum ersten Quartal 2024
- Bereinigtes EBITDA stieg auf 1,32 Millionen Dollar von einem negativen Betrag von 0,67 Millionen Dollar im ersten Quartal 2024
- EPS verbesserte sich auf 0,01 Dollar von einem negativen Wert von 0,03 Dollar im ersten Quartal 2024
Das Unternehmen sicherte sich bedeutende Aufträge für Raumoptik und Mikrodarstellungen für die Verteidigung und trat in den wachstumsstarken Markt der Rechenzentren ein. Syntec erwartet, dass der Umsatz im dritten Quartal 2024 zwischen 9,5 und 11,0 Millionen Dollar liegen wird, mit anhaltender Stärke in den Märkten für Kommunikation und Biomedizin sowie zusätzlichem Wachstum durch Produkteinführungen im Bereich Verteidigung.
- Net sales increased 12% quarter-over-quarter to $7.01 million
- Adjusted EBITDA improved to $1.32 million from negative $0.67 million in Q1 2024
- Earnings per Share turned positive to $0.01 from negative $0.03 in Q1 2024
- Product sales revenue increased 20% year-over-year to $7.0 million
- Secured significant orders for space optics and defense microdisplays
- Entered high-growth data center market with first product order forecasted to more than double to $3.2 million annually
- Guidance for Q3 2024 revenue between $9.5 - $11.0 million, indicating strong growth
- Overall sales decreased by 8.9% year-over-year
- Custom tooling revenue decreased by $0.8 million year-over-year
- Non-recurring engineering revenue decreased by $1.1 million year-over-year
- Adjusted EBITDA decreased year-over-year from $1.8 million to $1.32 million
- Net income decreased year-over-year from $0.6 million to $0.3 million
Insights
Syntec Optics' Q2 2024 results show promising signs of recovery and growth. The company achieved 12% sequential revenue growth to
The 20% year-over-year increase in product sales to
Looking ahead, the Q3 2024 revenue guidance of
Syntec's strategic pivot towards high-growth tech sectors is noteworthy. Their entry into the data center market, driven by AI deployment, is particularly timely. With a product order expected to more than double to
The company's focus on space optics for LEO satellites aligns with the projected
Syntec's development of high-performance, disposable optics for biomedical imaging showcases their innovation capabilities. This positions them well in the
Syntec's market positioning is impressive, targeting multiple high-growth sectors. The data center market's projected growth to
The company's expansion in space optics for LEO satellites is strategic, given the expected growth in satellite broadband. Their advancements in defense and night vision optics cater to ongoing military modernization efforts.
Syntec's emphasis on mission-critical products with proprietary techniques provides a competitive edge. The shift towards laser-based satellite communications and focus on biomedical automation align with industry trends. However, the decline in custom tooling and non-recurring engineering revenue warrants attention, as it may impact overall growth rates in the near term.
Syntec achieves sequential revenue growth and returns to positive EBITDA and Earnings per Share.
ROCHESTER, NEW YORK, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Syntec Optics Holdings, Inc. (“Syntec Optics” or the “Company”) (Nasdaq: OPTX), a leading provider of mission-critical products to advanced technology defense, biomedical, and communications equipment manufacturers, today reported financial results for the first quarter of 2024.
Second Quarter 2024 Financial Highlights
- Net Sales of
$7.01 million increased by12% from$6.26 million in Q1 2024, and sales from products increased by20% from$5.8 million in Q2 2023. - Adjusted EBITDA increased to
$1.32 million from negative$0.67 million in Q1 2024. - Earnings per Share increased to
$0.01 from negative$0.03 in Q1 2024.
Dean Rudy, CFO, said, “At the previous earnings call, we provided guidance for second quarter 2024 revenue to be between
Strong Order Momentum and End-Market Expansion:
- Secured significant orders for space optics to continue growth in Low Earth Orbit (LEO) satellites. Satellite broadband could represent a significant portion of the
$1 trillion global space economy by 2040. - Secured follow-up order for defense heads-up microdisplays and a new order for advanced technology – high-resolution, wide-field-of-view, innovative freeform prism subsystem that makes up high-brightness and high-contrast defense microdisplays for viewing vital information. The 2021 SPIE review valued the photonics-enabled defense marketplace at
$343.6 billion . - Entered the high-growth data center market driven by the deployment of Artificial Intelligence, with the first product order forecasted to more than double to
$3.2 million annually within a year. The data center market is expected to reach$622.4 billion by 2030.
Technological Leadership and Innovation:
- Developed advanced optical solutions, including high-performance, disposable optics for biomedical imaging with a multi-angled, wider field of view and increased imaging detail. SPIE assessed the 2021 photonics-enabled biomedical marketplace as
$201 billion in total revenues. - Demonstrated expertise in designing and manufacturing complex optical systems, such as high numerical aperture lens systems for digital night vision. These systems allow more light to reach the camera sensor, thus enabling better performance in low-light conditions. Such pioneering systems require Syntec’s high technical skills to architect and make the system.
- Developed dedicated production cells to ramp volumes with high yield for space optics and data center connectivity. According to SPIE, one of the ten major end-markets in optics and photonics, communications was valued at nearly
$43 billion in the global marketplace.
Operational Excellence and Strategic Growth:
- Enhanced manufacturing capabilities to support increased production volumes and meet customer demands – launched process development for a fully automated high-volume production line to make disposable medical optics.
- Implemented a strategic growth plan with executive changes to optimize organizational structure and focus on key priorities – Chairman Al Kapoor extended his role to CEO to oversee strategy and inorganic growth. At the same time, then-CEO Joe Mohr took the role of Chief Manufacturing Officer to focus on manufacturing excellence.
- Strengthened financial leadership by appointing a new CFO to support the company's growth trajectory.
Second Quarter 2024 Financial and Operating Results
The
The decrease in net sales compared to the prior year is due to decreases in our custom tooling and non-recurring engineering revenue streams. Custom tooling revenue decreased by
The second quarter of 2024 adjusted EBITDA was
The Company ended the second quarter of 2024 with an unused
Our net income for the three months ended in the second quarter of 2024 was
Guidance
Our recent increases in ongoing sales into the communications, medical, and defense industries are expected to accelerate in the third quarter, particularly within our space communications optics and datacom microlens arrays. As such, the third quarter 2024 revenue is expected to be in the range of
We expect our gross margin to hold level or slightly improve based on the profitability of ramping up products. General and administrative costs are expected to increase modestly to enable ramped-up engineering, quality, and pilot production to support continued growth in the third quarter.
Looking to the fourth quarter, we anticipate continued strength from the communications and biomedical end-markets, with additional growth coming from defense-based product launches.
Our products are propelled by tailwinds as we move towards laser-based satellite communications versus radar-based for low latency, biomedical automation, defense equipment modernization, and on-shoring. Mission-critical products use proprietary techniques that provide an economic moat.
Lastly, we expect positive net income in the second half of the year, enabling further investments to energize our continued growth.
About Syntec Optics
Syntec Optics Holdings, Inc. (Nasdaq: OPTX), headquartered in Rochester, NY, is a provider of advanced technology products to diverse end-market equipment manufacturers in the United States. Operating for over two decades, Syntec Optics runs a state-of-the-art facility with extensive core capabilities of various optics manufacturing processes, both horizontally and vertically integrated, to provide a competitive advantage for mission-critical OEMs. Syntec Optics recently launched new products, including Low Earth Orbit (LEO) satellite optics, lightweight night vision goggle optics, biomedical equipment optics, and precision microlens arrays. To learn more, visit www.syntecoptics.com.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended, including certain financial forecasts and projections. All statements other than statements of historical fact contained in this press release, including statements as to the transactions contemplated by the business combination and related agreements, future results of operations and financial position, revenue and other metrics, planned products and services, business strategy and plans, objectives of management for future operations of Syntec Optics, market size, and growth opportunities, competitive position and technological and market trends, are forward-looking statements. Some of these forward-looking statements can be identified by the use of forward-looking words, including “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” “plan,” “targets,” “projects,” “could,” “would,” “continue,” “forecast” or the negatives of these terms or variations of them or similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors (some of which are beyond the control of Syntec Optics), which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements are based upon estimates, forecasts and assumptions that, while considered reasonable by Syntec Optics and its management, as the case may be, are inherently uncertain and many factors may cause the actual results to differ materially from current expectations which include, but are not limited to: 1) risk outlined in any prior SEC filings; 2) ability of Syntec Optics to successfully increase market penetration into its target markets; 3) the addressable markets that Syntec Optics intends to target do not grow as expected; 4) the loss of any key executives; 5) the loss of any relationships with key suppliers including suppliers abroad; 6) the loss of any relationships with key customers; 7) the inability to protect Syntec Optics’ patents and other intellectual property; 8) the failure to successfully execute manufacturing of announced products in a timely manner or at all, or to scale to mass production; 9) costs related to any further business combination; 10) changes in applicable laws or regulations; 11) the possibility that Syntec Optics may be adversely affected by other economic, business and/or competitive factors; 12) Syntec Optics’ estimates of its growth and projected financial results for the future and meeting or satisfying the underlying assumptions with respect thereto; 13) the impact of any pandemic, including any mutations or variants thereof and the Russian/Ukrainian or Israeli conflict, and any resulting effect on business and financial conditions; 14) inability to complete any investments or borrowings in connection with any organic or inorganic growth; 15) the potential for events or circumstances that result in Syntec Optics’ failure to timely achieve the anticipated benefits of Syntec Optics’ customer arrangements; and 16) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in prior SEC filings including registration statement on Form S-4 filed with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Syntec Optics does not give any assurance that Syntec Optics will achieve its expected results. Syntec Optics does not undertake any duty to update these forward-looking statements except as otherwise required by law.
For further information, please contact:
Sara Hart
Investor Relations
InvestorRelations@syntecoptics.com
SOURCE: Syntec Optics Holdings, Inc. (Nasdaq: OPTX)
SYNTEC OPTICS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
JUNE 30, 2024 AND DECEMBER 31, 2023
| 2024 (unaudited) | 2023 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 830,479 | $ | 2,158,245 | ||||
| Accounts Receivable, Net | 5,939,091 | 6,800,064 | ||||||
| Inventory | 7,501,090 | 5,834,109 | ||||||
| Prepaid Expenses and Other Assets | 302,134 | 359,443 | ||||||
| Total Current Assets | 14,572,794 | 15,151,861 | ||||||
| Property and Equipment, Net | 10,651,951 | 11,101,052 | ||||||
| Deferred Income Taxes | 283,104 | - | ||||||
| Intangible Assets, Net | 265,000 | 295,000 | ||||||
| Total Assets | $ | 25,772,849 | $ | 26,547,913 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable | $ | 2,574,836 | $ | 3,042,315 | ||||
| Accrued Expenses | 1,197,066 | 1,071,257 | ||||||
| Federal Income Tax Payable | 51,966 | 370,206 | ||||||
| Deferred Revenue | 280,763 | - | ||||||
| Line of Credit | 6,263,863 | 6,537,592 | ||||||
| Current Maturities of Debt Obligations | 454,522 | 362,972 | ||||||
| Total Current Liabilities | 10,823,016 | 11,384,342 | ||||||
| Long-Term Liabilities | ||||||||
| Long-Term Debt Obligations | 2,813,391 | 2,024,939 | ||||||
| Deferred Income Taxes | - | 74,890 | ||||||
| Total Long-Term Liabilities | 2,813,391 | 2,099,829 | ||||||
| Total Liabilities | 13,636,407 | 13,484,171 | ||||||
| Commitments and Contingencies (Note 15) | - | - | ||||||
| Stockholder’s Equity | ||||||||
| CL A Common Stock, Par value $.0001 per share; 121,000,000 authorized; 36,688,266 issued and outstanding as of June 30, 2024; 36,688,266 issued and outstanding as of December 31, 2023 | 3,669 | 3,669 | ||||||
| Common Stock Value | 3,669 | 3,669 | ||||||
| Additional Paid-In Capital | 1,927,204 | 1,927,204 | ||||||
| Retained Earnings | 10,205,569 | 11,132,869 | ||||||
| Total Stockholder’s Equity | 12,136,442 | 13,063,742 | ||||||
| Total Liabilities and Stockholder’s Equity | $ | 25,772,849 | $ | 26,547,913 | ||||
SYNTEC OPTICS HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||
| Net Sales | $ | 7,006,000 | $ | 7,692,296 | $ | 13,261,908 | $ | 14,576,732 | ||||||||
| Cost of Goods Sold | 4,831,673 | 5,315,662 | 10,380,138 | 10,488,396 | ||||||||||||
| Gross Profit | 2,174,327 | 2,376,634 | 2,881,770 | 4,088,336 | ||||||||||||
| General and Administrative Expenses | 2,015,783 | 1,609,270 | 4,130,326 | 3,127,232 | ||||||||||||
| Income (Loss) from Operations | 158,544 | 767,364 | (1,248,556 | ) | 961,104 | |||||||||||
| Other Income (Expense) | ||||||||||||||||
| Interest Expense, Including Amortization of Debt Issuance Costs | (167,242 | ) | (131,562 | ) | (327,109 | ) | (261,583 | ) | ||||||||
| Other Income | 319,623 | 49,056 | 338,972 | 49,807 | ||||||||||||
| Total Other Income (Expense), Net | 152,381 | (82,506 | ) | 11,863 | (211,776 | ) | ||||||||||
| Income (Loss) Before Provision for (Benefit) Income Taxes | 310,925 | 684,858 | (1,236,693 | ) | 749,328 | |||||||||||
| Provision (Benefit) for Income Taxes | 29,082 | 117,093 | (309,393 | ) | 128,541 | |||||||||||
| Net Income (Loss) | $ | 281,843 | $ | 567,765 | $ | (927,300 | ) | $ | 620,787 | |||||||
| Net Income (Loss) per Common Share | ||||||||||||||||
| Basic and diluted | $ | 0.01 | $ | 0.02 | $ | (0.03 | ) | $ | 0.02 | |||||||
| Weighted Average Number of Common Shares Outstanding | ||||||||||||||||
| Basic and diluted | 36,688,266 | 31,600,000 | 36,688,266 | 31,600,000 | ||||||||||||
SYNTEC OPTICS HOLDINGS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
| 2024 | 2023 | |||||||
| Cash Flows From Operating Activities | ||||||||
| Net (Loss) Income | $ | (927,300 | ) | $ | 620,787 | |||
| Adjustments to Reconcile (Loss) Income to Net Cash (Used In) | ||||||||
| Provided By Operating Activities: | ||||||||
| Adjustments to Reconcile (Loss) Income to Net Cash (Used In) Provided By Operating Activities: | ||||||||
| Depreciation and Amortization | 1,385,606 | 1,404,552 | ||||||
| Amortization of Debt Issuance Costs | 4,387 | 4,825 | ||||||
| Gain on Disposal of Property and Equipment | (309,000 | ) | - | |||||
| Change in Allowance for Expected Credit Losses | (24,395 | ) | 48,080 | |||||
| Change in Reserve for Obsolescence | 291,576 | (8,032 | ) | |||||
| Deferred Income Taxes | (357,994 | ) | (461,514 | ) | ||||
| (Increase) Decrease in: | ||||||||
| Accounts Receivable | 885,368 | (1,177,615 | ) | |||||
| Inventory | (1,958,557 | ) | (942,781 | ) | ||||
| Prepaid Expenses and Other Assets | 57,309 | 159,125 | ||||||
| Increase (Decrease) in: | ||||||||
| Accounts Payables and Accrued Expenses | (993,406 | ) | 773,821 | |||||
| Federal Income Tax Payable | (318,240 | ) | 449,245 | |||||
| Deferred Revenue | 280,763 | (282,845 | ) | |||||
| Net Cash (Used In) Provided By Operating Activities | (1,983,883 | ) | 587,648 | |||||
| Cash Flows From Investing Activities | ||||||||
| Purchases of Property and Equipment | (254,767 | ) | (828,299 | ) | ||||
| Proceeds from Disposal of Property and Equipment | 309,000 | - | ||||||
| Net Cash Provided By (Used in) Investing Activities | 54,233 | (828,299 | ) | |||||
| Cash Flows From Financing Activities | ||||||||
| (Repayments) Borrowing on Line of Credit, Net | (273,729 | ) | 324,114 | |||||
| Borrowing on Debt Obligations | 1,100,388 | - | ||||||
| Repayments on Debt Obligations | (224,775 | ) | (486,402 | ) | ||||
| Distributions | - | (62,065 | ) | |||||
| Net Cash Provided By (Used in) Financing Activities | 601,884 | (224,353 | ) | |||||
| Net Decrease in Cash | (1,327,766 | ) | (465,004 | ) | ||||
| Cash - Beginning | 2,158,245 | 526,182 | ||||||
| Cash - Ending | $ | 830,479 | $ | 61,178 | ||||
| Supplemental Cash Flow Disclosures: | ||||||||
| Cash Paid for Interest | $ | 276,809 | $ | 267,220 | ||||
| Cash Paid for Taxes | $ | 537,510 | $ | 140,810 | ||||
| Supplemental Disclosures of Non-Cash Investing Activities: | ||||||||
| Assets Acquired and Included in Accounts Payable and Accrued Expenses | $ | 651,736 | $ | 22,364 | ||||
NON-GAAP RECONCILIATION OF EBITDA
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |||||||||||||
| Net (Loss) Income | $ | 281,843 | $ | 567,765 | $ | (927,300 | ) | $ | 620,787 | |||||||
| Depreciation & Amortization | 692,194 | 685,439 | 1,389,993 | 1,409,377 | ||||||||||||
| Interest Expenses | 164,828 | 129,448 | 322,722 | 256,757 | ||||||||||||
| Taxes | 29,082 | 117,093 | (309,393 | ) | 128,541 | |||||||||||
| Non-Recurring Items | ||||||||||||||||
| Other Income - Sale of Equipment & Accessories | - | (10,068 | ) | - | (10,068 | ) | ||||||||||
| Discount Income | - | 192 | - | 192 | ||||||||||||
| Non-Recurring Transaction Fees | - | 158,056 | 25,265 | 158,056 | ||||||||||||
| Non-Recurring Contributions, Management Fees & Expenses | 149,235 | 131,258 | 149,235 | 212,516 | ||||||||||||
| Adjusted EBITDA | $ | 1,317,182 | $ | 1,779,183 | $ | 650,522 | $ | 2,776,158 | ||||||||
Use of Non-GAAP Financial Measures
The Company provides non-GAAP financial measures, including EBITDA and Adjusted EBITDA, as a supplement to GAAP financial information to enhance the overall understanding of the Company’s financial performance and to assist investors in evaluating the Company’s results of operations, period over period. Adjusted non-GAAP measures exclude significant unusual items. Investors should consider these non-GAAP measures as a supplement to, and not a substitute for financial information prepared on a GAAP basis.
Non-GAAP Financial Measures
This Annual Report includes a non-GAAP measure that the Company uses to supplement our results presented in accordance with U.S. GAAP. EBITDA is defined as earnings before interest and other income, tax and depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for non-recurring items, and business combination expenses. Adjusted EBITDA is a performance measure that we believe is useful to investors and analysts because it illustrates the underlying financial and business trends relating to our core, recurring results of operations and enhances comparability between periods.
Adjusted EBITDA is not a recognized measure under U.S. GAAP and is not intended to be a substitute for any U.S. GAAP financial measure and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry. Investors should exercise caution in comparing our non-GAAP measure to any similarly titled measure used by other companies. This non-GAAP measure excludes certain items required by U.S. GAAP and should not be considered as an alternative to information reported in accordance with U.S. GAAP.
Adjusted EBITDA
The Company defines adjusted EBITDA, a non-GAAP financial measure, as net earnings (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude non-recurring items as outlined in our 10-Q. The Company utilizes adjusted EBITDA as an internal performance measure in the management of our operations because we believe the exclusion of these non-cash and non-recurring charges allows for a more relevant comparison of our results of operations to other companies in our industry and is in accordance with the Non-GAAP Financial Measures Compliance & Disclosure Interpretations (Reference Question 102.03).
FAQ
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