Stran & Company Reports Financial Results for Three and Nine Months Ended September 30, 2024
Rhea-AI Summary
Stran & Company (NASDAQ: SWAG) reported Q3 2024 financial results and received a Nasdaq listing extension. Sales grew 2.4% to $20.1 million in Q3 2024, while gross profit decreased 7.0% to $6.0 million. The company reported a net loss of $2.0 million compared to a $1.3 million profit in Q3 2023.
For the nine months ended September 30, 2024, sales increased 4.9% to $55.7 million, while gross profit slightly decreased 0.1% to $17.0 million. The company maintained a strong financial position with $17.0 million in cash and investments.
Notable developments include the strategic acquisition of Gander Group's assets in August 2024, enhancing the company's casino continuity and loyalty programs offerings. The company has met two of three Nasdaq compliance conditions and plans to hold its 2024 annual shareholder meeting to achieve full compliance.
Positive
- Sales grew 2.4% to $20.1M in Q3 2024
- Nine-month sales increased 4.9% to $55.7M
- Strong cash position of $17.0M
- Strategic acquisition of Gander Group completed
- Met two of three Nasdaq compliance requirements
Negative
- Q3 net loss of $2.0M vs $1.3M profit in Q3 2023
- Gross profit decreased 7.0% to $6.0M in Q3
- Gross profit margin declined to 29.5% from 32.5%
- Reduced customer spending in H2 2024
- Nine-month net loss increased to $3.6M from $0.1M
News Market Reaction 1 Alert
On the day this news was published, SWAGW declined 7.97%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Granted Listing Extension from Nasdaq Hearing Panel -
QUINCY, Mass., March 07, 2025 (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 provided a business update and reported financial results for the three and nine months ended September 30, 2024.
On March 3, 2025, the Nasdaq Hearings Panel informed the Company that it determined to grant the request of Stran to continue its listing on Nasdaq subject to three conditions. The first was that the Company become current on its financial filings, which the Company has met as of today through the filing of its Form 10-Q for the third quarter of 2024. The second was that the Company meet the Nasdaq minimum closing bid price requirement. As the Company previously reported, it received written notice on February 20, 2025 of regaining compliance with this requirement. The third was that the Company hold its annual shareholder meeting for 2024, which it intends to do in a timely manner following the filing of its Form 10-K for 2024.
Andy Shape, President and CEO of Stran, commented, "We are pleased to report our third-quarter 2024 financial results, marking our return to full compliance with Nasdaq’s periodic financial reporting requirement. With this milestone behind us, only our annual meeting remains in order to regain full Nasdaq compliance. For the three months ended September 30, 2024, sales grew by
“Importantly, during the quarter we acquired the strategic assets of Gander Group. This acquisition reinforces our commitment to expanding our market presence and delivering greater value to our clients and shareholders. Gander Group’s industry-leading expertise in casino continuity and loyalty programs perfectly complements our promotional solutions, creating powerful cross-selling opportunities and operational efficiencies. Additionally, welcoming Gander Group’s leadership strengthens our capabilities, allowing us to further enhance our offerings and drive long-term growth."
"With our re-audited financials complete and filings up to date, we are fully focused on driving significant growth and expanding our market presence. As we look to 2025, we are optimistic about our trajectory, with strong organic growth opportunities and strategic initiatives positioning us for accelerated expansion. We look forward to capitalizing on these opportunities and reconnecting with our shareholders soon through our quarterly conference calls."
Financial Results
Three Months Ended September 30, 2024 Results
Sales increased
Gross profit decreased
Net loss for the three months ended September 30, 2024 was approximately
Nine Months Ended September 30, 2024 Results
Sales increased
Gross profit decreased
Net loss for the nine months ended September 30, 2024 was approximately
About Stran
For over 30 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 include, but are not limited to, the Company’s expectations regarding synergies from its acquired businesses, its financial position and operating performance, its expectations regarding its business initiatives, the Company’s expectations about its operating performance, trends in its business, the effectiveness of its growth strategies, its market opportunity, and demand for its products and services in general. 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
| BALANCE SHEETS (in thousands, except share and per share amounts) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | (unaudited) | |||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 10,036 | $ | 8,059 | ||||
| Investments | 6,934 | 10,393 | ||||||
| Accounts receivable, net | 13,748 | 16,223 | ||||||
| Accounts receivable - related parties | 1,092 | 853 | ||||||
| Inventory | 4,768 | 4,782 | ||||||
| Prepaid corporate taxes | 34 | 62 | ||||||
| Prepaid expenses | 1,310 | 953 | ||||||
| Deposits | 650 | 1,717 | ||||||
| Other current assets | 63 | — | ||||||
| Total current assets | 38,635 | 43,042 | ||||||
| Property and equipment, net | 1,727 | 1,521 | ||||||
| OTHER ASSETS: | ||||||||
| Intangible assets - customer lists, net | 4,301 | 3,114 | ||||||
| Intangible assets - trade name | 654 | — | ||||||
| Goodwill | 2,542 | — | ||||||
| Other assets | 23 | 23 | ||||||
| Right of use asset - office leases | 930 | 1,336 | ||||||
| Total other assets | 8,450 | 4,473 | ||||||
| Total assets | $ | 48,812 | $ | 49,036 | ||||
| LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable and accrued expenses | $ | 6,194 | $ | 4,745 | ||||
| Accrued payroll and related | 1,537 | 2,568 | ||||||
| Unearned revenue | 3,002 | 1,116 | ||||||
| Rewards program liability | 3,000 | 875 | ||||||
| Sales tax payable | 212 | 344 | ||||||
| Current portion of contingent earn-out liabilities | 156 | 224 | ||||||
| Current portion of installment payment liabilities | 372 | 786 | ||||||
| Current portion of lease liability | 443 | 528 | ||||||
| Total current liabilities | 14,916 | 11,186 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term contingent earn-out liabilities | 763 | 763 | ||||||
| Long-term installment payment liabilities | 339 | 639 | ||||||
| Long-term lease liability | 491 | 798 | ||||||
| Total long-term liabilities | 1,593 | 2,200 | ||||||
| Total liabilities | 16,509 | 13,386 | ||||||
| Commitments and contingencies | ||||||||
| STOCKHOLDER’S EQUITY: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 2 | 2 | ||||||
| Additional paid-in capital | 38,436 | 38,263 | ||||||
| Accumulated deficit | (6,156 | ) | (2,602 | ) | ||||
| Accumulated other comprehensive loss | 21 | (13 | ) | |||||
| Total stockholders’ equity | 32,303 | 35,650 | ||||||
| Total liabilities and stockholders’ equity | $ | 48,812 | $ | 49,036 | ||||
| STATEMENTS OF OPERATIONS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (in thousands, except share and per share amounts) | ||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Restated) | (Restated) | |||||||||||||||
| SALES | ||||||||||||||||
| Sales | $ | 19,730 | $ | 18,951 | $ | 55,204 | $ | 52,207 | ||||||||
| Sales – related parties | 414 | 723 | 460 | 853 | ||||||||||||
| Total sales | 20,144 | 19,674 | 55,664 | 53,060 | ||||||||||||
| COST OF SALES: | ||||||||||||||||
| Cost of sales | 13,873 | 12,719 | 38,278 | 35,348 | ||||||||||||
| Cost of sales - related parties | 319 | 556 | 354 | 656 | ||||||||||||
| Total cost of sales | 14,192 | 13,275 | 38,632 | 36,004 | ||||||||||||
| GROSS PROFIT | 5,952 | 6,399 | 17,032 | 17,056 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| General and administrative expenses | 8,136 | 5,732 | 20,993 | 17,968 | ||||||||||||
| Total operating expenses | 8,136 | 5,732 | 20,993 | 17,968 | ||||||||||||
| (LOSS) INCOME FROM OPERATIONS | (2,184 | ) | 667 | (3,961 | ) | (912 | ) | |||||||||
| OTHER INCOME: | ||||||||||||||||
| Other (expense) income | (22 | ) | 202 | (6 | ) | 219 | ||||||||||
| Interest income | 64 | 183 | 239 | 467 | ||||||||||||
| Realized gain on investments | 103 | 77 | 176 | 98 | ||||||||||||
| Total other income | 145 | 462 | 409 | 784 | ||||||||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (2,039 | ) | 1,129 | (3,552 | ) | (128 | ) | |||||||||
| Provision (benefit) for income taxes | (1 | ) | (136 | ) | 2 | 15 | ||||||||||
| NET (LOSS) INCOME | $ | (2,038 | ) | $ | 1,265 | $ | (3,554 | ) | $ | (143 | ) | |||||
| NET (LOSS) INCOME PER COMMON SHARE | ||||||||||||||||
| Basic | $ | (0.11 | ) | $ | 0.07 | $ | (0.19 | ) | $ | (0.01 | ) | |||||
| Diluted | $ | (0.11 | ) | $ | 0.04 | $ | (0.19 | ) | $ | (0.01 | ) | |||||
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||||||
| Basic | 18,589,086 | 18,534,772 | 18,584,359 | 18,514,875 | ||||||||||||
| Diluted | 18,589,086 | 29,239,195 | 18,584,359 | 18,514,875 | ||||||||||||
FAQ
What were Stran's (SWAG) Q3 2024 revenue and profit figures?
How much cash does Stran (SWAG) have as of September 30, 2024?
What are the Nasdaq compliance conditions for Stran (SWAG)?
How did the Gander Group acquisition impact Stran's (SWAG) Q3 2024 performance?
