Paragon Technologies News Release

Rhea-AI Summary

Paragon Technologies, Inc. (OTC PINK:PGNT) reported its financial results for the three and six months ended June 30, 2020. For Q2 2020, net sales were $18,252,000, down from $27,252,000 in Q2 2019. Operating income increased to $895,000 from $664,000. However, total income before taxes rose to $974,000 from $555,000. The company recorded a net income of $564,000, up from $236,000 in the same quarter last year. Additionally, SI Systems received a $150,000 EIDL loan to support working capital. Paragon continues to navigate challenges posed by the pandemic.

Positive

• Net income increased to $564,000, up from $236,000 YoY.
• Operating income rose to $895,000 from $664,000 YoY.
• Successful PPP Loan Forgiveness of $10,000.

Negative

• Net sales decreased to $18,252,000 from $27,252,000 YoY.
• Total other expenses increased significantly, reaching $(393,000) compared to $(214,000) in the previous year.

EASTON, PA / ACCESSWIRE / August 13, 2020 / Paragon Technologies, Inc. (OTC PINK:PGNT), a holding company, announced its results for the three and six months ended June 30, 2020 and 2019, on August 13, 2020.

Paragon Technologies, Inc.'s Consolidated Statement of Operations for the three and six months ended June 30, 2020, and 2019 are summarized below. For further detail on our results, shareholders should carefully review our quarterly report, which can found at www.pgntgroup.com.

		Three Months Ended								Six Months Ended
(In Thousands)		June 30, 2020				June 30, 2019				June 30, 2020				June 30, 2019
Net Sales		$	18,252			$	27,252			$	47,846			$	50,952
Operating Income			895				664				1,838				916
Other income (expense):
Interest Income			3				7				7				11
Interest expense			(131	)			(112	)			(388	)			(233	)
Realized gain (loss) on investment, marketable securities			41				3				44				(8	)
Unrealized gain (loss) on investment, equity securities			156				(7	)			(66	)			16
PPP Loan Forgiveness			10				-				10				-
Total other income (expense)			79				(109	)			(393	)			(214	)
Income before income taxes and noncontrolling interest			974				555				1,445				702
Income tax expense			358				263				530				361
Net income before noncontrolling interest			616				292				915				341
Net income attributable to noncontrolling interest			52				56				69				82
Net income attributable to Paragon Technologies, Inc and subsidiaries		$	564			$	236			$	846			$	259

Analysis of Results and General Business Commentary:

"Despite the numerous uncertainties as result of the pandemic, we continue to take concrete steps to ensure our businesses are operating safely and efficiently," stated Sham Gad, Chairman and CEO of Paragon. "We are grateful to all our associates for their continued efforts and hard work as we continue to navigate the challening road ahead. Our sincerest gratitude goes out to all those individuals on the front lines who are working tirelessly to ensure our nation gets back on track."

On July 24, 2020, SI Systems received a $150,000 loan under the EIDL. Proceeds are to be used for working capital purposes. The EIDL Loan has a term of thirty years, and the interest accrues at the rate of 3.75% per annum. Installment payments, including principal and interest, are due monthly beginning July 22, 2021 (twelve months from the date of the execution of the promissory note for the EIDL Loan) in the amount of $731.00. The balance of principal and interest is payable thirty years from the date of the promissory note. The EIDL Loan is secured by a security interest on all of SI Systems' assets.

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.

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

This press release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. 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.

SOURCE: Paragon Technologies Inc.

View source version on accesswire.com:
https://www.accesswire.com/601566/Paragon-Technologies-News-Release

FAQ

What were Paragon Technologies' Q2 2020 net sales figures?

For Q2 2020, Paragon Technologies reported net sales of $18,252,000.

How did Paragon Technologies' operating income change in Q2 2020?

Operating income increased to $895,000 in Q2 2020, compared to $664,000 in Q2 2019.

What was the net income for Paragon Technologies for the first half of 2020?

For the six months ended June 30, 2020, the net income was $846,000.

What EIDL loan did SI Systems receive and for what purpose?

SI Systems received a $150,000 EIDL loan for working capital purposes.

How does Paragon Technologies define pre-tax operating earnings?

Pre-tax operating earnings exclude gains or losses from the company's investment portfolio.