Financial Performance - Net revenues for 2021 were $6,116,000, representing a 10.0% increase from $5,561,000 in 2020[138] - Gross profit for 2021 was $2,448,000, a significant increase of 110.3% compared to $1,164,000 in 2020[138] - Other income surged to $10,223,000 in 2021, up 314.2% from $2,468,000 in 2020[138] - Net income from continuing operations for 2021 was $7,086,000, compared to a loss of $64,000 in 2020, marking a turnaround of $7,150,000[138] - The gross profit margin improved to 40.0% in 2021, up from 20.9% in 2020[138] - Selling and administrative expenses decreased slightly by 1.5% to $2,566,000 in 2021 from $2,604,000 in 2020[138] - The company experienced a loss from operations of $118,000 in 2021, a significant improvement from a loss of $1,458,000 in 2020[138] - Net revenues for the quarter ended September 30, 2021 increased 10.0% to $6.1 million from $5.6 million in the same quarter of 2020[140] - Revenue from Strong Entertainment increased 10.7% to $5.8 million in Q3 2021 from $5.3 million in Q3 2020, driven by higher revenues from screen systems and maintenance services[142] - Consolidated gross profit rose to $2.4 million in Q3 2021, representing 40.0% of revenue, compared to $1.2 million and 20.9% in Q3 2020[145] - Strong Entertainment segment gross profit was $2.2 million or 37.0% of revenues in Q3 2021, with a positive impact of $0.4 million from employee retention credits[147] - Consolidated loss from operations was $0.1 million in Q3 2021, a significant improvement from a loss of $1.5 million in Q3 2020[148] - Total other income for Q3 2021 was $10.2 million, primarily from an $8.4 million unrealized gain on investments[151] - Net income from continuing operations was $7.1 million, or $0.38 per share, in Q3 2021, compared to a net loss of $0.1 million in Q3 2020[155] - For the nine months ended September 30, 2021, net revenues increased 9.3% to $17.0 million from $15.5 million in the same period of 2020[156] - Consolidated gross profit for the nine months ended September 30, 2021 was $6.1 million, or 35.8% of revenue, compared to $3.2 million and 20.5% in the same period of 2020[160] - Strong Entertainment generated income from operations of $2.2 million in the first nine months of 2021, compared to a loss of $0.9 million in the same period of 2020[164] - The company generated a net income from continuing operations of $3.8 million, or $0.21 per share, in the first nine months of 2021, compared to a net loss of $5.0 million, or $0.34 per share, in the same period of 2020[170] Cash Flow and Investments - As of September 30, 2021, the company had total cash and cash equivalents of $10.5 million, an increase from $4.8 million as of December 31, 2020[172] - The company invested approximately $10.0 million in GreenFirst during the third quarter of 2021, bringing the fair value of its investment in GreenFirst to approximately $20.2 million[171] - Net cash used in operating activities from continuing operations was $0.3 million during the nine months ended September 30, 2021, primarily due to cash outflows for selling and administrative expenses[181] - Net cash used in investing activities from continuing operations was $10.6 million during the nine months ended September 30, 2021, compared to $4.6 million in the same period of 2020[182] - Net cash provided by financing activities from continuing operations was $3.6 million during the nine months ended September 30, 2021, primarily from the issuance of common stock[183] - The company entered into a demand credit agreement in June 2021, consisting of a revolving line of credit for up to CDN$2.0 million and a 20-year installment loan for up to CDN$5.1 million[173] - The company closed a public offering on February 8, 2021, issuing approximately 3.3 million shares at a price of $2.30 per share, resulting in net proceeds of approximately $6.7 million[177] - The company has outstanding intercompany loans from its Canadian subsidiary of approximately $34.6 million as of September 30, 2021[172] - The company believes its existing liquidity sources will be sufficient to meet projected capital needs for at least the next twelve months, but acknowledges potential impacts from COVID-19 restrictions[179] Legal and Regulatory Matters - The company is involved in ongoing legal proceedings related to asbestos exposure, but does not expect these to materially affect its financial condition[200] - The company has not reported any significant changes in internal controls over financial reporting during the fiscal quarter[197] - There were no significant changes in critical accounting policies during the three months ended September 30, 2021[196] Market Conditions and Risks - The impact of the COVID-19 pandemic continues to affect customer spending, particularly in the entertainment and advertising sectors[135] - The company anticipates ongoing challenges due to the COVID-19 pandemic, including potential disruptions in film production and customer operations[135] - Revenue and earnings are expected to fluctuate moderately due to seasonal patterns and market expansion efforts[193] - The company has a primary exposure to foreign currency fluctuations through its Canadian subsidiary and may use foreign exchange contracts to manage this risk[192] - The company experienced a foreign currency transaction loss of $162 million, impacting overall financial results[190] - Unrealized losses on investments totaled $8,376 million, reflecting market volatility and investment performance challenges[190] EBITDA and Performance Metrics - Net income from continuing operations for Strong Entertainment was $7,719 million, while Corporate and Other reported a loss of $3,899 million, resulting in a consolidated net income of $3,820 million for the quarter[191] - EBITDA for Strong Entertainment was $10,896 million, with Corporate and Other showing a loss of $3,073 million, leading to a total EBITDA of $7,823 million[191] - Adjusted EBITDA was reported at $(1,990) million, with Corporate and Other at $(4,167) million, indicating a significant decline in performance[191]
FG (FGH) - 2021 Q3 - Quarterly Report