Paragon Technologies News Release

Rhea-AI Summary

Paragon Technologies, Inc. (OTC PINK:PGNT) reported its financial results for the three and nine months ending September 30, 2022, with net sales of $34,498 thousand for the quarter and $105,773 thousand year-to-date, showing a decline from $36,771 thousand and $100,958 thousand respectively in 2021. Operating income rose to $2,323 thousand in Q3 2022, compared to $2,109 thousand in Q3 2021, but the company faced challenges due to the COVID-19 pandemic and geopolitical issues impacting bookings and cash flow. Investment portfolio gains positively affected net income, while the company prudently managed expenses in a fluctuating environment.

Positive

• Operating income increased to $2,323 thousand in Q3 2022 from $2,109 thousand in Q3 2021.
• Net income benefited from a significant realized one-time gain in the investment portfolio.

Negative

• Net sales decreased to $34,498 thousand in Q3 2022 compared to $36,771 thousand in Q3 2021.
• The COVID-19 pandemic and geopolitical conditions negatively impacted bookings and future revenue expectations.

EASTON, PA / ACCESSWIRE / November 18, 2022 / Paragon Technologies, Inc. (OTC PINK:PGNT), announced its results for the three and nine months ended September 30, 2022, on November 11, 2022.

For further detail on our results, shareholders should carefully review our quarterly report, which can be found at www.pgntgroup.com.

		Three Months Ended								Nine Months Ended
		Sept 30,				Sept 30,				Sept 30,				Sept 30,
(In Thousands)		2022				2021				2022				2021
Net Sales		$	34,498			$	36,771			$	105,773			$	100,958
Operating Income			2,323				2,109				5,624				4,269
Other Income / (Expense)
Interest Income			18				2				33				8
Interest Expense			(332	)			(78	)			(669	)			(250	)
Employee Retention Credit			-				-				-				138
Realized Gain / (Loss) on Investment
Marketable Securities			693				(10	)			650				(404	)
Unrealized Gain / (Loss) on Investment
Marketable Securities			139				(107	)			(26	)			(25	)
Gain / (Loss) on Sale of Fixed Assets			-				-				-				1
Grant Income			-				26				18				43
Total Other Income / (Expense)			518				(167	)			6				(489	)
Income before Taxes and
Noncontrolling Interest			2,841				1,942				5,630				3,780
Income Tax Expense			904				861				1,991				1,726
Net Income before Noncontrolling Interest			1,937				1,081				3,639				2,054
Net Income Attributable to
Noncontrolling Interest			132				189				422				396
Net Income Attributable to
Paragon Technologies Inc. and Subsidiaries		$	1,805			$	892			$	3,217			$	1,658

Analysis of Results and General Business Commentary:

In 2018 newly issued accounting rules required that all companies record any unrealized losses or gains from equity investments in the income statement.

Paragon's investment gains or losses reflect realized gains or losses in the company's investment portfolio. Paragon utilizes pre-tax operating income, a non-GAAP financial measure, in its analysis of financial results. Paragon Technologies defines pre-tax operating earnings outside of the investment gains/losses of the Company.

Our distribution operation continues to manage the impact of the strengthening dollar and its effect on our operations in Latin America. Paragon's net income was favorably impacted by a significant realized one-time gain in our investment portfolio. We continue to encourage shareholders to analyze Paragon's continuing operating income exclusive of the short-term mark to market effects from our investment portfolio.

The COVID-19 pandemic continues to adversely affect our operations across our various subsidiaries. We have experienced a slowdown in bookings which may result in lower cash flow, revenue, and operating profit in the future. In response, we have prudently managed our expenses in response to uncertainty. In addition, the on-going geopolitical conditions, including but not limited to the Russia - Ukraine conflict may negatively affect our financial results through inflationary pressures, and supply chain disruptions.

About Paragon Technologies

Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate, and investments.

Cautionary Note Regarding Forward-Looking Statements

These forward-looking statements concern the Company's operations, financial condition and performance and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others, those related to: general economic conditions, including those in the markets in which the Company operates; the Company's ability to expand its revenue streams; technological changes in the Company's industry; the continued acceptance of the Company's distribution channel by vendors and customers; decreased demand for the Company's products and services and the Company's ability to retain or replace its significant customers; factors affecting the capital markets and share prices generally; economic and political risks of selling products in foreign countries, including risks of non-compliance with U.S. and foreign laws and regulations; cybersecurity risks and risks of damage and interruptions of information technology systems; and the Company's ability to complete acquisitions, strategic investments, divestitures, mergers or other transactions on acceptable terms or at all. New risk factors emerge from time to time, and it is not possible for management to predict all such risk factors, nor can management assess the impact of all such factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All statements in this press release other than statements that are purely historical are forward-looking statements. The Company does not intend and assumes no obligation, to update any forward-looking statements made in this press release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release. For further information, contact the company at info@pgntgroup.com

SOURCE: Paragon Technologies, Inc

View source version on accesswire.com:
https://www.accesswire.com/727050/Paragon-Technologies-News-Release

FAQ

What were Paragon Technologies' net sales for Q3 2022?

Paragon Technologies reported net sales of $34,498 thousand for the three months ended September 30, 2022.

How did operating income change in Q3 2022 for PGNT?

Operating income increased to $2,323 thousand in Q3 2022, up from $2,109 thousand in the same period in 2021.

What challenges did Paragon Technologies face in 2022?

Paragon faced challenges due to the COVID-19 pandemic and geopolitical issues, leading to a slowdown in bookings and potential future cash flow declines.

What was the impact of the investment portfolio on PGNT's net income?

Net income was positively impacted by a significant realized one-time gain from Paragon's investment portfolio.

What are the net sales figures for the nine months ended September 30, 2022?

For the nine months ended September 30, 2022, net sales were $105,773 thousand, compared to $100,958 thousand in 2021.