Stran & Company Reports Preliminary Selected Unaudited Results for the First Quarter of 2024

Rhea-AI Summary

Stran & Company (NASDAQ: SWAG) reported a preliminary, unaudited 17% year-over-year revenue growth for Q1 2024. Gross margin is projected to increase by over 100 basis points compared to Q1 2023. The company's cash, cash equivalents, and investments are expected to rise to $20.2 million as of March 31, 2024, up from $18.5 million at the end of 2023. CEO Andy Shape attributed the performance to new customer acquisitions and expanded contracts despite a challenging market. Stran also noted the engagement of Marcum LLP as their new independent public accounting firm. Complete financial results will follow upon final audit completion.

Positive

• Year-over-year revenue expected to grow 17% for Q1 2024 compared to Q1 2023.
• Gross margin projected to increase by over 100 basis points versus Q1 2023.
• Cash, cash equivalents, and investments expected to rise to $20.2 million as of March 31, 2024, up from $18.5 million at the end of 2023.

Negative

• Results are preliminary and subject to adjustments upon final audit completion.

Insights

Financial Analyst

Stran & Company, Inc.'s preliminary results for Q1 2024 indicate a robust year-over-year revenue growth of 17%. This growth trajectory is quite promising, especially in a challenging market environment. Stran's ability to expand customer base and enhance existing client contracts reflects effective strategic initiatives and market penetration. Such performance, despite industry headwinds, suggests efficient operational management and a strong competitive position.

Another positive indicator is the projected gross margin improvement by over 100 basis points. Gross margin gains typically imply better cost management or higher pricing power, both favorable signs for profitability. For a company in the marketing solutions sector, this can hint at optimized production costs, effective cost controls, or successful upselling of higher-margin products.

Significant to note is the increase in cash, cash equivalents and investments to $20.2 million, up from $18.5 million at year-end 2023. A strong cash position not only enhances financial stability but also provides flexibility for future growth initiatives or to buffer against market volatility.

Investors should however be cautious about the ongoing transition in auditors. While Marcum LLP is highly regarded, such transitions can sometimes introduce procedural delays or adjustments. It's important to monitor this aspect until the final audited results are released.

Market Research Analyst

Stran & Company’s preliminary results for the first quarter of 2024 reveal a notable market share expansion. This reflects favorably on their reputation and market positioning as a leading outsourced marketing solutions provider. The addition of new customers and expansion of existing contracts signal that Stran’s value proposition is resonating well in the market. This is essential for sustaining long-term growth and can be particularly advantageous during periods of economic uncertainty.

The reported gross margin improvement further suggests that Stran might be successfully differentiating its offerings or leveraging economies of scale, both of which are critical for maintaining competitive edges in the promotional products sector. Higher gross margins allow for reinvestment into business development and innovation.

The increase in cash reserves reinforces the company’s financial health, potentially enabling them to explore strategic acquisitions or invest in technology enhancements to drive further efficiencies and growth. Investors should see this as a sign of fiscal prudence and strategic foresight.

Year-over-year revenue expected to grow 17% compared to first quarter of 2023

Gross margin expected to increase by over 100 basis points versus first quarter of 2023

Cash, cash equivalents and investments expected to increase to $20.2 million as of March 31, 2024, compared to $18.5 million at December 31, 2023

Quincy, MA, June 28, 2024 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today reported preliminary selected unaudited results for the first quarter of 2024.

“We are pleased to report we project strong growth for the first quarter of 2024,” commented Andy Shape, President and CEO of Stran. “Specifically, sales are expected to have increased approximately 17% over the same period last year, which reflects our continued addition of new customers and expansion of existing contracts with existing clients. We expect these results despite a challenging market for our industry, which reflects our strong reputation and increasing market share. In addition, we project that our gross margin improved by over 100 basis points for the quarter compared to the same quarter in the prior year. Lastly, we continue to maintain a strong balance sheet, as illustrated by the fact our cash, cash equivalents and investments are expected to have increased to $20.2 million as of March 31, 2024, compared to $18.5 million as of December 31, 2023. As previously reported, we have engaged Marcum LLP as our new independent public accounting firm, one of the top-ranked by market share and largest PCAOB-registered audit and accounting firms in the U.S., after we were required to dismiss our prior independent public accounting firm. We believe we are making rapid progress toward completing applicable quarterly reporting procedures with our new audit firm, and look forward to reporting our complete and final financial results for the first quarter upon completion of this process.”

The selected unaudited results in this press release are preliminary and subject to the completion of accounting and interim review procedures and are therefore subject to adjustment.

About Stran
For over 29 years, Stran has grown to become a leader in the promotional products industry, specializing in complex marketing programs to help recognize the value of promotional products, branded merchandise, and loyalty incentive programs as a tool to drive awareness, build brands and impact sales. Stran is the chosen promotional programs manager of many Fortune 500 companies, across a variety of industries, to execute their promotional marketing, loyalty and incentive, sponsorship activation, recruitment, retention, and wellness campaigns. Stran provides world-class customer service and utilizes cutting-edge technology, including efficient ordering and logistics technology to provide order processing, warehousing and fulfillment functions. The Company’s mission is to develop long-term relationships with its clients, enabling them to connect with both their customers and employees in order to build lasting brand loyalty. Additional information about the Company is available at: www.stran.com.

Forward Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will,” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s periodic reports which are filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.

Contacts:

Investor Relations Contact
Crescendo Communications, LLC
Tel: (212) 671-1021
SWAG@crescendo-ir.com

Press Contact
Howie Turkenkopf
press@stran.com

FAQ

What is the expected revenue growth for Stran & Company (SWAG) in Q1 2024?

Stran & Company projects a 17% year-over-year revenue growth for Q1 2024 compared to Q1 2023.

How much are Stran & Company's cash, cash equivalents, and investments expected to be as of March 31, 2024?

Stran & Company's cash, cash equivalents, and investments are expected to increase to $20.2 million as of March 31, 2024.

What is the projected increase in gross margin for Stran & Company (SWAG) in Q1 2024?

Stran & Company expects its gross margin to improve by over 100 basis points compared to the same quarter in the prior year.

Which accounting firm has Stran & Company (SWAG) engaged for their quarterly reporting?

Stran & Company has engaged Marcum LLP as their new independent public accounting firm.

Are Stran & Company's Q1 2024 results final?

No, Stran & Company's Q1 2024 results are preliminary and subject to adjustments upon final audit completion.