ToughBuilt(TBLT) - 2023 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Gross profit for Q1 2023 was $3.6 million, an 18% improvement compared to Q1 2022 [4] - Revenues for Q1 2023 were $20.2 million, a 17% increase from $17.2 million in Q1 2022 [15] - Net loss for Q1 2023 was $8.3 million, improved from a net loss of $12.1 million in Q1 2022 [7] - Cost of goods sold increased to $16.7 million in Q1 2023 from $14.2 million in Q1 2022, a 17% increase [6] Business Line Data and Key Metrics Changes - Online sales through Amazon reached $3.8 million in Q1 2023, a 10% improvement from the same period in 2022 [14] - The company introduced over 100 new SKUs, including innovative lines of pliers, wrenches, and screwdrivers [21] Market Data and Key Metrics Changes - The company is servicing over 18,500 storefronts and online portals worldwide, with a catalog of over 550 SKUs [5] - The expansion of the South American distribution agreement with Sodimac included the launch of 15 SKUs in-store and 23 SKUs online [21] Company Strategy and Development Direction - The company plans to continue expanding its product portfolio prudently, raise prices, and cut costs globally [27] - Management anticipates improved capital resources as products gain wider market recognition [25] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute on growth, cost savings, and profitability plans [8] - The company expects continued year-over-year growth in retail and online revenue in 2023 due to strong global market demand [22] Other Important Information - Research and development costs increased to $3.5 million in Q1 2023 from $2.5 million in Q1 2022, primarily for new tool development [16] - Selling, general and administrative expenses decreased to $15.1 million in Q1 2023 from $15.9 million in Q1 2022, with SG&A as a percentage of revenues improving from 93% to 78% [24] Q&A Session Summary - The Q&A session was conducted but no specific questions or answers were documented in the provided content [28]