Core Insights - Stran & Company, Inc. reported a 17.9% increase in revenue to approximately $18.8 million for Q1 2024 compared to Q1 2023, and a 6.4% increase in revenue to approximately $35.5 million for the first half of 2024 compared to the same period in 2023, indicating successful execution of its growth strategy [2][9] - The company maintained a strong cash position with approximately $21.5 million in cash, equivalents, and investments as of June 30, 2024 [2] - Stran acquired strategic assets from Gander Group to enhance its technology and product offerings, supporting its long-term growth strategy [2] Financial Performance First Quarter 2024 Results - Sales increased by 17.9% to approximately $18.8 million for the three months ended March 31, 2024, from approximately $16.0 million for the same period in 2023 [3] - Gross profit increased by 3.8% to approximately $5.6 million, representing 29.8% of sales, compared to 33.9% of sales in Q1 2023 [4] - Net loss remained stable at approximately $0.5 million for Q1 2024, similar to Q1 2023, despite increased sales [5] Second Quarter 2024 Results - Sales decreased by 4.1% to approximately $16.7 million for the three months ended June 30, 2024, from approximately $17.3 million for the same period in 2023 [6] - Gross profit increased by 4.2% to approximately $5.5 million, with a gross profit margin of 32.8%, up from 30.1% in Q2 2023 [7][8] - Net loss for Q2 2024 was approximately $1.0 million, compared to approximately $0.9 million for Q2 2023 [8] Six Months Ended June 30, 2024 Results - Sales increased by 6.4% to approximately $35.5 million for the six months ended June 30, 2024, from approximately $33.4 million for the same period in 2023 [9] - Gross profit increased by 4.0% to approximately $11.1 million, with a gross profit margin of 31.2%, down from 31.9% in the same period in 2023 [10] - Net loss for the six months ended June 30, 2024, was approximately $1.5 million, compared to approximately $1.4 million for the same period in 2023 [11] Company Overview - Stran has over 30 years of experience in the promotional products industry, specializing in complex marketing programs for Fortune 500 companies [12] - The company focuses on building long-term relationships with clients to enhance brand loyalty through promotional products and loyalty incentive programs [12]

Financial Performance - For the three months ended June 30, 2024, sales decreased by 4.1% compared to the same period in 2023, while for the six months ended June 30, 2024, sales increased by 6.4% compared to the same period in 2023[153]. - Sales decreased by 4.1% to approximately $16.7 million for the three months ended June 30, 2024, compared to approximately $17.3 million for the same period in 2023[170]. - Total sales for the six months ended June 30, 2024, increased by 6.4% to approximately $35.5 million, compared to approximately $33.4 million for the same period in 2023[183]. - Gross profit increased by 4.2% to approximately $5.5 million, or 32.8% of sales, for the three months ended June 30, 2024, compared to approximately $5.2 million, or 30.1% of sales, for the same period in 2023[173]. - Gross profit for the six months ended June 30, 2024, increased by 4.0% to approximately $11.1 million, or 31.2% of sales, compared to approximately $10.7 million, or 31.9% of sales, for the same period in 2023[185]. - Net loss for the three months ended June 30, 2024, was approximately $1.0 million, compared to approximately $0.9 million for the same period in 2023[180]. - Net loss for the six months ended June 30, 2024, was approximately $1.5 million, compared to approximately $1.4 million for the same period in 2023[191]. Revenue Composition - Program clients accounted for 81.3% of total revenue for the three months ended June 30, 2024, up from 77.4% in the same period of 2023[152]. - For the three and six months ended June 30, 2024, program clients represented 82.7% of total revenue, indicating a growing reliance on programmatic business[152]. Assets and Equity - As of June 30, 2024, the company had approximately $46.6 million in total assets and approximately $34.3 million in total stockholders' equity[154]. - As of June 30, 2024, the company had cash and cash equivalents of approximately $11.9 million and investments of approximately $9.6 million, indicating sufficient liquidity for anticipated cash needs[192]. Costs and Expenses - Total cost of sales decreased by 7.7% to approximately $11.2 million for the three months ended June 30, 2024, from approximately $12.2 million for the same period in 2023, with cost of sales as a percentage of sales decreasing to 67.2%[172]. - Total cost of sales for the six months ended June 30, 2024, increased by 7.5% to approximately $24.4 million, with cost of sales as a percentage of sales decreasing to 68.8%[184]. - Operating expenses increased by 5.3% to approximately $6.6 million for the three months ended June 30, 2024, resulting in operating expenses as a percentage of sales increasing to 39.4%[174]. Cash Flow - Net cash provided by operating activities increased to approximately $4.2 million for the six months ended June 30, 2024, compared to $3.7 million for the same period in 2023, primarily due to a decrease in accounts receivable[194]. - Net cash provided by investing activities was approximately $0.4 million for the six months ended June 30, 2024, compared to a net cash used of approximately $3.1 million in the same period of 2023, driven by increased proceeds from the sale of investments[195]. - Net cash used in financing activities increased to approximately $0.8 million for the six months ended June 30, 2024, compared to $0.6 million for the same period in 2023, mainly due to reduced payments of contingent earn-out liabilities[196]. Debt and Financing - The company terminated its Revolving Line of Credit, which had an aggregate principal amount of up to $7.0 million, effective August 26, 2024[158]. - The company has a Revolving Line of Credit of up to $7.0 million, with no funds drawn as of June 30, 2024[212]. - The company’s debt service coverage ratio requirement was modified to a "Minimum Interest Coverage" of 1.25:1 for the fiscal year ending December 31, 2024[209]. Acquisitions and Investments - The company acquired the assets of Bangarang Enterprises, LLC for approximately $1.1 million in cash and assumed liabilities totaling approximately $5.5 million[160]. - The company benefited from the acquisition of T R Miller Co., Inc. in June 2023, contributing to revenue growth from existing clients and new customers[153]. Stock Repurchase - As of June 30, 2024, the company had repurchased a total of 1,815,166 shares of common stock for approximately $3.4 million, with approximately $6.6 million remaining available under the stock repurchase program[200]. - The company’s stock repurchase program allows for repurchases up to $10.0 million, with no defined number of shares to be repurchased over a specified timeframe[198]. Lease Obligations - The company entered into a seven-year lease agreement for new office space with an initial base rent of approximately $21 thousand per month, subject to annual escalations of 2.2% - 2.5%[156]. - Future minimum lease payments total approximately $1.1 million, with $287,000 due in the remainder of 2024[214]. Financial Reporting and Assumptions - The company performs an annual impairment review of goodwill during the fourth fiscal quarter, which is highly subjective and requires significant judgment[219]. - The fair value of reporting units is determined using both the income approach and the market approach, incorporating significant estimates and assumptions[220]. - The company assesses impairment of long-lived assets whenever events indicate that the carrying value may not be recoverable, considering various macroeconomic and company-specific factors[221]. - Contingent earn-out liabilities are measured at fair value using significant unobservable inputs, with the Black-Scholes-Merton Call Option Formula applied[222]. - The company evaluates its estimates and assumptions on an ongoing basis, which could lead to significant differences between estimated and actual results[217]. - The assumptions related to the valuation of goodwill and intangible assets have the greatest potential impact on the financial statements[218]. - Changes in assumptions and estimates regarding long-lived assets could materially impact reported financial results[221]. - The company considers significant underperformance relative to historical or projected future operating results as a trigger for impairment reviews[221]. Regulatory Compliance - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to rely on certain exemptions from disclosure requirements[164]. - Recent accounting pronouncements are discussed in Note A.16 of the financial statements[223].

Financial Performance - For the three months ended March 31, 2024, sales increased by 17.9% compared to the same period in 2023, attributed to higher spending from existing clients and new customer acquisitions [138]. - Sales increased by 17.9% to approximately $18.8 million for the three months ended March 31, 2024, compared to approximately $16.0 million for the same period in 2023 [157]. - Total cost of sales rose by 25.1% to approximately $13.2 million for the three months ended March 31, 2024, from approximately $10.6 million for the same period in 2023, with cost of sales as a percentage of sales increasing to 70.2% [158]. - Gross profit increased by 3.8% to approximately $5.6 million, representing 29.8% of sales for the three months ended March 31, 2024, down from 33.9% for the same period in 2023 [159]. - Operating expenses rose by 4.8% to approximately $6.3 million for the three months ended March 31, 2024, while as a percentage of sales, operating expenses decreased to 33.4% [160]. - Net loss for the three months ended March 31, 2024, was approximately $0.5 million, consistent with the net loss of approximately $0.5 million for the same period in 2023 [165]. - Net cash provided by operating activities was approximately $2.1 million for the three months ended March 31, 2024, compared to net cash used of approximately $3.6 million for the same period in 2023 [168]. Revenue Sources - Program clients accounted for 86.0% of total revenue for the three months ended March 31, 2024, up from 81.7% in the same period of 2023 [137]. - The majority of revenue is derived from program business, with fewer than 350 out of over 2,000 active customers classified as program clients [137]. Assets and Equity - As of March 31, 2024, the company reported total assets of approximately $47.9 million and total stockholders' equity of approximately $35.2 million [138]. - Cash and cash equivalents as of March 31, 2024, were approximately $9.5 million, with investments totaling approximately $10.7 million [166]. - The Company had net deposits totaling approximately $2.9 million as of March 31, 2024, under its reward card programs [188]. Financing and Debt - The company has transitioned from a revolving line of credit of up to $7.0 million to a factoring arrangement for accounts receivable financing [141]. - The amount available under the Revolving Line of Credit was capped at $7.0 million, with advances based on Eligible Inventory limited to $2.0 million [176]. - The Company was required to maintain a Minimum Liquidity of $7.5 million at all times, defined as cash and short-term investments, less rewards program liabilities [189]. - The Company must maintain a Minimum Interest Coverage of 1.25:1 for the fiscal year ending December 31, 2024 [183]. - The Debt Service Coverage Ratio was required to be at least 1.20:1, tested annually beginning with the fiscal year ending December 31, 2025 [183]. - The Revolving Line of Credit is subject to interest at the prime rate plus 0.5% per annum, with late payments incurring a 5.0% charge [177]. - The Company must use proceeds from the Revolving Line of Credit solely for general working capital related to accounts receivable and inventory purchases [180]. Lease and Acquisition - The company entered into a seven-year lease agreement for new office space with an initial base rent of approximately $21 thousand per month, subject to annual escalations of 2.2% - 2.5% [140]. - On August 23, 2024, the company acquired assets from Bangarang Enterprises, LLC for approximately $1.1 million in cash and assumed liabilities totaling approximately $5.5 million [145]. - The acquisition of Bangarang is expected to enhance the company's service offerings and market position [146]. - Future minimum lease payments total approximately $1.281 million, with $444,000 due in the remainder of 2024 [187]. Growth and Strategy - The company qualifies as an "emerging growth company," allowing it to rely on certain exemptions from disclosure requirements [149]. - The company aims to leverage technology and efficient processes to enhance its competitive position in the market [154]. - The company anticipates that its current cash levels will be sufficient to meet its anticipated cash needs for operations over the next 12 months and beyond [167]. - The company may seek additional cash resources in the future due to changing business conditions or potential investments and acquisitions [167]. Fair Value Measurements - The company measures contingent earn-out liabilities at fair value using significant unobservable inputs classified within Level 3 of the fair value hierarchy [195]. - The Black-Scholes-Merton Call Option Formula is utilized to determine the fair value of the earn-out liability [195]. - Key inputs for fair value measurements include operating income projections, strike price, and volatility [195]. - Significant changes to any of these inputs can lead to a higher or lower liability, capped by the contractual maximum of the contingent earn-out obligations [195]. - The liability will ultimately equal the amount paid, with differences recorded in earnings [195]. - Cash used in financing activities reflects amounts paid that are less than or equal to the contingent earn-out liability on the acquisition date [195]. - Any excess amount paid over the contingent earn-out liability is recorded as cash used in operating activities [195].

Core Insights - Stran & Company, Inc. reported preliminary unaudited results for Q4 and full year 2024, indicating strong revenue growth driven by successful expansion strategies [1][3] Financial Performance - Q4 2024 revenue is expected to be approximately $27 million, a 17.8% increase from about $23 million in Q4 2023 [2] - Full year 2024 revenue is projected to reach approximately $83 million, representing a 9.3% increase from $76 million in 2023 [2] - As of December 31, 2024, the company expects to have around $18 million in cash equivalents and investments, with no long-term debt [2] Strategic Initiatives - The company is focused on integrating assets from Gander Group™, enhancing capabilities and expanding its customer base in the gaming, casino, and entertainment sectors [3] - Stran continues to identify new cross-selling opportunities and drive operational efficiencies [3] - The company remains optimistic about long-term growth prospects and plans to invest in strategic initiatives to maximize shareholder value [3] Company Overview - Stran has over 30 years of experience in the promotional products industry, specializing in complex marketing programs [4] - The company serves many Fortune 500 clients across various industries, executing promotional marketing, loyalty, and incentive campaigns [4] - Stran aims to develop long-term relationships with clients to build lasting brand loyalty [4]

Core Insights - Stran & Company, Inc. reported strong revenue growth for Q4 2024 and the full year, driven by successful execution of its expansion strategy and integration of Gander Group™ assets [2][3] Financial Performance - Q4 2024 revenue is expected to be approximately $27 million, a 17.8% increase from about $23 million in Q4 2023 [2] - Full year 2024 revenue is projected to reach approximately $83 million, representing a 9.3% increase from $76 million in 2023 [2] - As of December 31, 2024, the company expects to have approximately $18 million in cash equivalents and investments, with no long-term debt [2] Strategic Initiatives - The company is focusing on enhancing capabilities and expanding its customer base in the gaming, casino, and entertainment sectors [3] - Stran continues to identify new cross-selling opportunities and drive operational efficiencies [3] - The company remains optimistic about long-term growth prospects and plans to invest in strategic initiatives to maximize shareholder value [3] Company Background - Stran has over 30 years of experience in the promotional products industry, specializing in complex marketing programs [4] - The company serves many Fortune 500 companies across various industries, executing promotional marketing, loyalty, and incentive campaigns [4] - Stran aims to develop long-term relationships with clients to build lasting brand loyalty [4]

Sales Performance - Sales increased by 31.3% to $76.0 million in 2023 from $57.9 million in 2022, driven by higher spending from existing clients and new customers[3] - Acquisitions of G.A.P. Promotions, Trend Brand Solutions, Premier NYC, and T R Miller contributed $15.1 million to 2023 sales, accounting for 19.9% of total sales[3] Profitability - Gross profit rose by 61.5% to $24.9 million in 2023, with a gross profit margin of 32.7%, up from 26.6% in 2022[4] - Net loss improved to $0.4 million in 2023 from $3.5 million in 2022, primarily due to increased sales from acquisitions and organic growth[5] Client and Market Expansion - The company expanded agreements with existing clients, each representing six-figure annual revenue potential, across industries like automotive, engineering, and oil and gas[2] - In November 2024, the company acquired Gander Group, enhancing its position in the casino continuity and loyalty sector[2] - The company expects the Gander Group acquisition to contribute to long-term growth and market leadership[2] Financial Position - Cash and cash equivalents decreased to $8.1 million in 2023 from $15.3 million in 2022[10] - Accounts receivable increased to $16.2 million in 2023 from $13.8 million in 2022, reflecting higher sales[10] Operating Expenses - Operating expenses increased to $26.1 million in 2023 from $19.0 million in 2022, driven by higher general and administrative expenses[13]

Company Overview - Stran & Company is a leading outsourced marketing solutions provider specializing in promotional products and loyalty incentive programs [1] - The company has over 30 years of experience and serves many Fortune 500 companies across various industries [6][7] - Stran provides complex marketing programs, branded merchandise, and loyalty incentive programs to drive awareness, build brands, and impact sales [6][7] Financial Performance - Sales increased 31.3% to $76.0 million in 2023 from $57.9 million in 2022, driven by higher spending from existing clients and new customers [3] - Gross profit increased 61.5% to $24.9 million in 2023, with gross profit margin improving to 32.7% from 26.6% in 2022 [4] - Net loss decreased to $0.4 million in 2023 from $3.5 million in 2022, primarily due to increased sales from acquisitions and organic growth [5] Business Developments - The company secured key contracts with a leading recreational watercraft manufacturer and a premier U.S. pet supply retailer in 2024 [2] - Stran expanded agreements with multiple existing clients across industries such as automotive, engineering, and oil and gas, each representing six-figure annual revenue potential [2] - In November 2024, Stran acquired the assets of Gander Group, strengthening its position in the casino continuity and loyalty sector [2] Acquisitions Impact - Acquisitions of G.A.P. Promotions, Trend Brand Solutions, Premier NYC, and T R Miller contributed approximately $15.1 million, or 19.9%, of sales in 2023 [3] - These acquisitions accounted for $6.8 million, or 11.7%, of sales in 2022 [3] Balance Sheet Highlights - Total assets decreased to $49.036 million in 2023 from $50.230 million in 2022 [10] - Total liabilities decreased to $13.386 million in 2023 from $14.511 million in 2022 [10] - Stockholders' equity remained relatively stable at $35.650 million in 2023 compared to $35.719 million in 2022 [10] Operational Metrics - General and administrative expenses increased to $25.310 million in 2023 from $17.789 million in 2022 [12] - Goodwill impairment decreased to $810,000 in 2023 from $1.182 million in 2022 [12] - Net loss per common share improved to $0.02 in 2023 from $0.18 in 2022 [12]

Financial Results - Stran & Company, Inc. announced preliminary selected unaudited financial results for the nine months ended September 30, 2024[8]. Company Classification - The company is classified as an emerging growth company under the Securities Act[7]. Forward-Looking Statements - The press release includes forward-looking statements regarding the company's future financial performance and operating results[11].

Completed acquisition of strategic assets of Gander Group™ Revenue expected to grow approximately 7.8% compared to the first nine months of 2023 Quincy, MA, Dec. 23, 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 nine months ended September 30, 2024. “During the quar ...

Completed acquisition of strategic assets of Gander Group™ Revenue expected to grow approximately 7.8% compared to the first nine months of 2023 Quincy, MA, Dec. 23, 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 nine months ended September 30, 2024. "During the quarte ...