FGI Industries .(FGI)2022-05-13 21:17Revenue Performance - Revenues increased by $7.2 million, or 19.8%, to $43.6 million for the three months ended March 31, 2022, compared to $36.4 million for the same period in 2021[162]. - Sanitaryware sales accounted for 64.7% of total revenues, increasing by 23.6% to $28.2 million for the three months ended March 31, 2022[168]. - Bath Furniture sales decreased by 11.9% to $10.1 million, representing 23.3% of total revenues for the three months ended March 31, 2022[169]. - Revenues from other products increased by 152.9% to $5.3 million, driven by strong sales of Jetcoat Shower wall systems[170]. - For the three months ended March 2022, revenue was $43,575,239, an increase from $36,375,689 in the same period of 2021, representing a growth of approximately 19.1%[211]. Profitability - Gross profit increased by $0.2 million, or 2.8%, to $7.5 million, with gross profit margin decreasing to 17.3% due to higher raw material and freight costs[176][177]. - Income from operations decreased by 63.3% to $690,746 for the three months ended March 31, 2022, compared to $1,883,771 in 2021[162]. - Net income fell by 82.1% to $530,193 for the three months ended March 31, 2022, down from $2,961,414 in the same period last year[162]. - Adjusted income from operations for March 2022 was $923,058, down from $1,999,671 in March 2021, reflecting a decrease of about 53.8%[211]. - Adjusted net income for March 2022 was $804,321, compared to $1,114,714 in March 2021, showing a decrease of around 28%[211]. - Adjusted operating margins fell to 1.6% in March 2022 from 5.2% in March 2021, a decline of 3.6 percentage points[211]. Expenses - Selling and distribution expenses rose by $0.7 million, or 18.7%, to $4.7 million, attributed to increased sales and returning business activities to pre-COVID-19 levels[178]. - General and administrative expenses increased by $0.5 million, or 35.6%, to $1.8 million for the three months ended March 31, 2022, compared to the same period in 2021[179]. - Research and development expenses remained stable and are relatively immaterial to the company's financial statements[180]. - Non-recurring IPO-related compensation and stock-based compensation expense for March 2022 was $232,312, with no such expense reported in March 2021[211]. - COVID one-time expenses were recorded as $115,900 in March 2021, with no such expenses in March 2022[211]. Cash Flow and Debt - Cash and cash equivalents increased to $8.8 million as of March 31, 2022, from $3.9 million as of December 31, 2021[185]. - Net cash used in operating activities was approximately $9.1 million for the three months ended March 31, 2022, primarily due to a decrease in accounts payable of approximately $8.1 million[195]. - Net cash provided by financing activities was approximately $14.0 million for the three months ended March 31, 2022, which includes net proceeds from the IPO of $12.4 million[200]. - Total debt as of March 31, 2022, was represented by a credit facility with East West Bank, with an outstanding balance of $16.3 million[192]. - The interest rate on the East West Bank loan was 3.75% as of March 31, 2022, up from 3.50% as of December 31, 2021[190]. Future Outlook - The company expects to resume margin expansion in the latter half of 2022 as measures to offset supply chain disruptions take effect[156]. - The company may seek additional cash resources in the future for investments, acquisitions, or strategic cooperation[186]. - The tax impact of adjustments for March 2022 was $41,816, compared to a tax impact of $(281,700) in March 2021[211]. - The company recorded an income tax expense of $0.1 million for the three months ended March 31, 2022, down from $0.5 million for the same period in 2021, reflecting a decrease in reported income before taxes of $2.8 million, or 80.7%[182].