Surge Components, Inc. Announces Second Quarter 2024 Results
Company Delivers Strong Q2 Net Sales of
Generated Positive Net Income and EPS; Improvement from Q1
First Half 2024 Gross Margins Remained above
Operational Highlights
-
The Company continues to invest in growth assets, including hiring new sales talent in
Europe andAsia . - Challenge and Surge divisions are well-positioned to capitalize on the industry’s eventual rebound as industry dynamics and prospects begin to improve.
- The Company continues to maintain its superior lead times and stable production to better serve customers and preserve a competitive advantage over peers.
- The Company continues to successfully design customized new products for customers to differentiate and increase competitiveness.
Financial Highlights for the Second Quarter Ended May 31, 2024
-
Net income available to common shareholders of
; earnings per share (fully diluted) of$197,940 compared to net income available to common shareholders of$0.03 ; earnings per share of$524,261 in the prior-year-period.$0.09 -
Net sales of
, compared to$7.3 million in the prior-year period.$10.2 million -
Gross profit of
, compared to$2.0 million in the prior-year period.$2.9 million -
Gross profit margin of
27.3% , compared to28.6% in the prior-year period.
“Surge’s second quarter financial and operations performance again validated our strategy and ability to remain agile and navigate a difficult macroeconomic environment that has, and continues, to weigh heavily on our entire industry,” said Ira Levy, President and Chief Executive Officer of Surge. “Customer inventory levels, though showing signs of slowly reducing, remain significantly elevated from their record highs due to the one-time supply-constrained dynamic previously discussed. In the face of these headwinds, we have focused on improving our operational efficiencies to drive better operational and financial results, achieving net cashflow from operating activities, remained positive in the first half of 2024 while gross margins remained above the
“Concurrently, we continue to position the company to capitalize on the industry’s approaching turnaround. Building on last quarter, we again hired new sales talent – this quarter in
“We continue to see difficulty for the broader industry over the second half of 2024 and believe that the eventual turnaround will begin closer to the end of the year and beginning of 2025. As customers continue to consume excess inventory, the company is optimistic and remains positive on our business’ outlook and we will continue to position ourselves to capitalize on this eventual turnaround by investing in our business and our people.”
Results of Operations for the Three Months Ended May 31, 2024
Net sales for the three months ended May 31, 2024, decreased by
Gross profit for the three months ended May 31, 2024, decreased by
Selling and shipping expenses for the three months ended May 31, 2024, was
General and administrative expenses for the three months ended May 31, 2024, was
Net income for the three months ended May 31, 2024, was
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including statements regarding global economic conditions, expected rebound in the market, supply chain challenges, customer lead times, our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "expected," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar words. These statements are only predictions and are based largely on our current expectations and projections about future events and financial trends that may affect our business, financial condition and results of operations. We discuss many of the risks in greater detail under the heading "Risk Factors" in our Annual Report on Form 10-K. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update any forward-looking statements for events or circumstances occurring after the date of this press release, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240712162433/en/
Investor Contacts:
Sloane & Company
Neal Nagarajan, nnagarajan@sloanepr.com
Source: Surge Components, Inc.