TransAct Technologies rporated(US:TACT)2023-05-15 20:40Financial Performance - For the three months ended March 31, 2023, net sales increased to $22,270,000, a 129.4% increase compared to $9,702,000 in the same period of 2022[12] - Gross profit for the same period was $12,255,000, compared to $2,566,000 in Q1 2022, reflecting a significant improvement in profitability[12] - Operating income for Q1 2023 was $3,813,000, a turnaround from an operating loss of $5,604,000 in Q1 2022[12] - Net income for the three months ended March 31, 2023, was $3,139,000, compared to a net loss of $4,348,000 in the prior year[12] - Basic net income per share for Q1 2023 was $0.32, compared to a loss of $0.44 per share in Q1 2022[12] - The company reported a comprehensive income of $3,141,000 for Q1 2023, compared to a comprehensive loss of $4,390,000 in Q1 2022[14] - Net income for the three months ended March 31, 2023, was $3.139 million, compared to a net loss of $4.348 million for the same period in 2022[46] - Basic earnings per share for Q1 2023 was $0.32, while diluted earnings per share was $0.31, compared to a loss of $0.44 per share in Q1 2022[46] - Operating income improved to $3.813 million in Q1 2023, a $9.4 million increase from a loss of $5.604 million in Q1 2022[91] - Net income for Q1 2023 was $3.1 million, or $0.31 per diluted share, compared to a net loss of $4.3 million, or $0.44 per diluted share, in Q1 2022[95] Assets and Liabilities - Total current assets as of March 31, 2023, were $36,966,000, slightly up from $36,125,000 as of December 31, 2022[10] - Total liabilities decreased to $14,804,000 as of March 31, 2023, from $17,970,000 at the end of 2022, indicating improved financial health[10] - Shareholders' equity increased to $37,196,000 as of March 31, 2023, compared to $33,862,000 at the end of the previous year[10] - Cash and cash equivalents decreased to $6,644,000 at the end of Q1 2023, down from $7,946,000 at the end of 2022[10] - Accounts receivable rose by $3.0 million in 2023, primarily due to increased sales, while accounts payable decreased by $2.8 million, largely due to inventory sell-through[10] - The company maintained $2.3 million in outstanding borrowings under the Siena Credit Facility as of March 31, 2023, with a net borrowing capacity of $6.4 million available[102] - The company’s total liabilities decreased to $14.8 million as of March 31, 2023, down from $17.97 million at the end of 2022[10] - The company’s retained earnings increased to $12.77 million as of March 31, 2023, compared to $9.63 million at the end of 2022, indicating positive financial growth[10] Sales and Market Performance - The company experienced a significant decrease in inventory levels during 2021 due to supply chain disruptions, but managed to increase inventory levels in 2022 and expects to continue this trend into 2023[24] - For the three months ended March 31, 2023, total net sales reached $22.27 million, compared to $9.70 million for the same period in 2022, reflecting a substantial recovery in demand[36] - Net sales for Q1 2023 increased by $12.6 million, or 130%, compared to Q1 2022, driven by significant growth in the casino and gaming market[73] - Printer, terminal, and other hardware unit sales volume increased by 125% to approximately 51,000 units in Q1 2023, with a 175% increase in the casino and gaming market[74] - Food service technology sales for Q1 2023 reached $3.458 million, a 62.3% increase from $2.130 million in Q1 2022[77] - International sales for Q1 2023 increased by $2.1 million, or 80%, primarily due to growth in the international casino and gaming market[75] - Total sales of casino and gaming products surged by 232.0% to $15.811 million in Q1 2023 from $4.762 million in Q1 2022, driven by a 315.0% increase in domestic sales[81] Inventory and Supply Chain - The company recorded $12.39 million in total inventories as of March 31, 2023, compared to $12.03 million as of December 31, 2022[40] - The company expects to continue increasing inventory levels throughout 2023 to mitigate supply chain disruptions[68] - The company has taken actions to strengthen its financial position, including entering into a credit facility with a revolving credit line of up to $10 million, extended to March 13, 2025[41] - The company expects demand recovery to continue into 2023, supported by a strong backlog and market share expansion due to competitors' supply issues[24] Expenses and Financial Management - Engineering, design, and product development expenses remained relatively flat at $2.269 million in Q1 2023, a slight decrease of 0.6% from $2.283 million in Q1 2022[87] - Selling and marketing expenses increased by 2.8% to $2.757 million in Q1 2023, reflecting a return to pre-COVID spending levels[89] - General and administrative expenses rose by 6.6% to $3.416 million in Q1 2023, primarily due to increased compensation and audit fees[90] - The company expects to incur a severance charge of approximately $1.5 million in Q2 2023 related to the termination of the former CEO[91] - The company reported a decrease in cash flows from operating activities, with net cash used amounting to $757,000 for the three months ended March 31, 2023, compared to $6,819,000 in the same period of 2022[17] Leadership Changes - On April 4, 2023, the company appointed John M. Dillon as interim CEO following the resignation of Bart C. Shuldman[56] - The company signed a Letter Amendment to the Siena Credit Facility on May 1, 2023, confirming Mr. Dillon as an acceptable successor to Mr. Shuldman[58]