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Stran & pany(SWAG) - 2025 Q1 - Quarterly Results
SWAGStran & pany(SWAG)2025-04-14 20:30

Financial Performance - Sales increased 8.8% to approximately 82.7millionforthefiscalyearendedDecember31,2024,comparedtoapproximately82.7 million for the fiscal year ended December 31, 2024, compared to approximately 76.0 million for 2023[7]. - Net loss for the year ended December 31, 2024, was approximately 4.1million,comparedtoanetlossofapproximately4.1 million, compared to a net loss of approximately 0.4 million for 2023[10]. - Basic and diluted net loss per common share was (0.22)in2024,comparedto(0.22) in 2024, compared to (0.02) in 2023[21]. - Loss from operations widened to (4,894)millionin2024,comparedto(4,894) million in 2024, compared to (1,268) million in 2023[21]. - Other income decreased to 759millionin2024,downfrom759 million in 2024, down from 924 million in 2023, a decline of 17.9%[21]. Gross Profit and Margins - Gross profit for 2024 was approximately 25.8million,representingagrossmarginof31.225.8 million, representing a gross margin of 31.2%, down from 32.7% in 2023[8]. - Gross profit for the Stran segment decreased to approximately 23.7 million in 2024 from approximately 24.9millionin2023,whiletheSLSsegmentsawanincreasetoapproximately24.9 million in 2023, while the SLS segment saw an increase to approximately 2.1 million[8]. - Gross profit rose to 25,813millionin2024,comparedto25,813 million in 2024, compared to 24,852 million in 2023, reflecting a growth of 3.9%[21]. Operating Expenses - Operating expenses rose 17.6% to approximately 30.7millionfor2024,leadingtoanincreaseintheoperatingexpenseratioto37.230.7 million for 2024, leading to an increase in the operating expense ratio to 37.2% from 34.4% in 2023[9]. - Total operating expenses increased to 30,707 million in 2024, up from 26,120millionin2023,markingariseof17.526,120 million in 2023, marking a rise of 17.5%[21]. Assets and Cash Position - Cash, cash equivalents, and investments totaled 18.2 million as of December 31, 2024[6]. - Total assets increased to 55.148millionasofDecember31,2024,comparedto55.148 million as of December 31, 2024, compared to 49.036 million in 2023[19]. Future Outlook - Stran expects to surpass 100millioninannualsalesin2025,drivenbyorganicgrowthandexpansionintohigh−valueverticals[5].−Thecompanysecuredmultiplenewmulti−year,six−figurecontractsacrossvariousindustries,indicatinggrowingdemandforitsservices[3].AcquisitionsandContributions−TheacquisitionofGanderGroupassetscontributedapproximately100 million in annual sales in 2025, driven by organic growth and expansion into high-value verticals[5]. - The company secured multiple new multi-year, six-figure contracts across various industries, indicating growing demand for its services[3]. Acquisitions and Contributions - The acquisition of Gander Group assets contributed approximately 9.9 million in sales within a few months, significantly expanding Stran's presence in the hospitality and entertainment sectors[2]. Cost of Sales - Total cost of sales increased to 56,841millionin2024,upfrom56,841 million in 2024, up from 51,148 million in 2023, an increase of 11.5%[21]. Share Information - Weighted-average common shares outstanding increased to 18,587,607 in 2024 from 18,519,892 in 2023[21]. Goodwill Impairment - The company recorded a goodwill impairment of $810 million in 2023, which was not present in 2024[21].