PHOENIX, Nov. 4, 2021 /PRNewswire/ -- Alpine 4
Holdings, Inc. (Nasdaq: ALPP), a leading operator and owner of
small market businesses, is pleased to announce that its Q3 2021
revenue grew by 23% over Q2 2021 revenue and that it posted a net
profit of $2.48 million for the 3rd
Quarter 2021. The company's Assets also grew by $3.08 million for the quarter as
well.
Kent Wilson, CEO / President,
shared the following letter regarding the company's Q3
results.
"Dear Shareholders,
This will be my first 10Q commentary while listed on the
Nasdaq, and I can say that it is a great honor that you are here
with us. As we begin our next chapter in the story of Alpine
4, the Company will begin to report and break out each of its
operating companies into its silos; A4 Manufacturing, Inc., A4
Construction Services, Inc., A4 Technologies, Inc., A4 Defense
Services, Inc., and A4 Aerospace, Inc. We are doing this to enhance
the visibility of our operating segments as a whole and also to
allow institutional investors greater insight to how our holdings
perform in the ebbs and flows of our economy.
It is important to note that the Company is making great
strides in recovering from the effects of COVID-19 in our market
spaces. However, employee participation in our revenue was an issue
in Q3 as our operating subsidiaries Morris Sheet Metal and
Alternative Laboratories had an outbreak of the novel coronavirus
in August and September that reduced our ability to produce
products for our growing customer base.
Q3 Highlights:
Revenue: The Company's overall revenue
grew from $14.13 million in Q2 2021
to $17.39 million in Q3 2021, which
represents $3.26 million in
additional revenue for the quarter or growth of 23%, and the
Company also grew at 99% over Q3 2020 revenue of $8.72 million. The Company as a whole is
still experiencing supply chain issues in our construction
services, manufacturing, and aerospace holdings. Alternative
Laboratories, experienced significant delays of critical
manufacturing nutrients during the quarter. These delayed
deliveries and inhibited labor force, due to COVID-19, resulted in
roughly $1.2 million in postponed
revenue which would have driven Q3 revenue to over $18.59 million. The Company expects supply chain
issues to continue into Q1 and Q2 2022.
Gross Profit: Q3 gross profit continues
its Q2 improvement over Q1 2021 and all of 2020. This rise stems
from more robust gross profit performance at our A4 Manufacturing
companies, Quality Circuit Assembly and Alternative Laboratories.
Conversely, the A4 Construction Services portfolio of companies,
Morris Sheet Metal and Excel Fabrication, continue to have
suppressed gross profit due to escalating prices in steel in the
first three quarters of the year. As these prices stabilize, we
expect the gross profit margin in this holding group to improve,
thus pushing our combined gross profit further upward. Q3 2021
gross profit was slightly down by percentage compared to Q2 2021,
but it was still at 25.57%, a 66.65% improvement over Q3 2020. The
importance of gross profit in our business model is that as we
cross over our breakeven point at the combined level, the Company's
gross profit percentage will then fall to the bottom line. I say
this to make the point that as we grow our gross profit percentage,
we also will begin to push much larger dollar margins to the bottom
line.
Net Profit: Q3 2021 represented a huge
leap forward in our net profitability. The Company netted out
$2.48 million in profit for the
quarter. The four more significant contributors to this gain in Q3
2021 were; G&A expenses dropped by $814
thousand, interest expense dropped by $678 thousand, other income grew by $408 thousand, and the debt forgiveness of our
PPP loans of $4.30 million all added
to this success.
Balance Sheet: Our balance sheet continues
to be a bright spot in our success as a company. Our total asset
base swelled by $3.08 million in Q3
2021. The Company continues to use its cash to provide our
subsidiaries with the best competitive position it can. For
example, our Inventory levels grew by $1.8
million in Q3 2021 vs. Q2 2021. As many competitors struggle
to bring materials in to make their products, Alpine 4 is
empowering our subsidiaries to purchase in bulk where we can with
the goal to make our vendors choose us as a priority customer vs.
our competitors. This tactic is starting to bear fruit in a highly
competitive market for resources. The Company has allowed its
subsidiaries to offer more favorable terms to its customers to win
new business, which represents our accounts receivable balance
growing. Our liabilities only increased by $239 thousand, allowing us to still see a
$2.84 million increase in the
Company's stockholders' equity.
In closing, the Company is looking forward to 2022 and all it
will bring. I know that I have said this before, but we are just
only getting started, and our future as a company looks
bright!
Kent Wilson
CEO / President / Founder"
About Alpine 4 Holdings: Alpine 4 Holdings, Inc. (ALPP) is
a NASDAQ traded conglomerate that acquires businesses that fit into
its disruptive DSF business model of Drivers, Stabilizers, and
Facilitators. At Alpine 4, we understand the nature of how
technology and innovation can accentuate a business. Our
focus is on how the adaptation of new technologies, even in
brick-and-mortar businesses, can drive innovation. We
also believe that our holdings should benefit synergistically from
each other, have the ability to collaborate across varying
industries, spawn new ideas, and create fertile ground for
competitive advantages.
Four principles at the core of our business are Synergy.
Innovation. Drive. Excellence. At Alpine 4, we believe
synergistic innovation drives excellence. By anchoring these
words to our combined experience and capabilities, we can
aggressively pursue opportunities within and across vertical
markets. We deliver solutions that not only drive industry
standards, but also increase value for our shareholders.
Contact: Investor Relations
investorrelations@alpine4.com
www.alpine4.com
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS:
The CEO letter and commentary above contain "forward-looking
statements," that is, statements related to future events that by
their nature address matters that are, to different degrees,
uncertain. Except for statements of historical fact, the
information contained herein that constitutes forward-looking
statements includes, but is not limited to, the (i) projected
financial performance of the Company; (ii) the expected development
of the Company's business, projects, and joint ventures; (iii)
execution of the Company's vision and growth strategy, including
with respect to future M&A activity and global growth; (iv)
sources and availability of third-party financing for the Company's
projects; (v) completion of the Company's projects that are
currently underway, in development or otherwise under
consideration; (vi) renewal of the Company's current customer,
supplier and other material agreements; and (vii) future liquidity,
working capital, and capital requirements. This document also
includes certain forward-looking projected financial information
that is based on current estimates and forecasts. Actual results
could differ materially. For additional information on the
uncertainties that may cause our actual future results to be
materially different from those expressed in the forward-looking
statements, please review the Company's annual reports on Form
10-K, quarterly reports on Form 10-Q, and other filings with the
Securities and Exchange Commission that discuss the risks facing
the Company. We expressly disclaim any intention or obligation to
update any our forward-looking statements.
View original
content:https://www.prnewswire.com/news-releases/alpine-4-holdings-alpp-reports-q3-2021-revenue-grew-by-23-over-q2-2021-and-a-net-profit-of-2-48-million-for-the-quarter-301417241.html
SOURCE Alpine 4 Holdings, Inc.