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 six months ended June 30, 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, reflecting financial stability [2] - Stran acquired strategic assets from Gander Group to enhance its technology and product offerings, supporting its long-term growth strategy [2] Financial Results First Quarter 2024 - 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, driven by higher spending from existing clients and new customers [3] - Gross profit rose by 3.8% to approximately $5.6 million, representing 29.8% of sales, although the gross profit margin decreased from 33.9% in Q1 2023 due to increased product costs [4] - The net loss for Q1 2024 was approximately $0.5 million, consistent with the loss reported in Q1 2023, attributed to increased operating expenses and cost of sales [5] Second Quarter 2024 - 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, primarily due to lower spending from clients [6] - Gross profit increased by 4.2% to approximately $5.5 million, with a gross profit margin of 32.8%, an improvement from 30.1% in Q2 2023, attributed to better purchasing from suppliers [7][8] - The net loss for Q2 2024 was approximately $1.0 million, slightly higher than the loss of approximately $0.9 million in Q2 2023, mainly due to increased operating expenses [8] Six Months Ended June 30, 2024 - Total sales increased by 6.4% to approximately $35.5 million for the six months ended June 30, 2024, compared to approximately $33.4 million for the same period in 2023, driven by higher spending from existing clients and new customers [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 prior year, due to rising product costs [10] - The 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, reflecting increased costs of sales and operating expenses [11] Company Overview - Stran has over 30 years of experience in the promotional products industry, specializing in complex marketing programs that enhance brand awareness and drive sales [12] - The company serves many Fortune 500 clients across various industries, providing promotional marketing, loyalty and incentive programs, and utilizing advanced technology for order processing and fulfillment [12]
Stran & Company Reports Financial Results for Three Months Ended March 31, 2024 and Three and Six Months Ended June 30, 2024