Cemtrex (CETX) Reports Operating Profit & 114% Sales Increase for the First Quarter Ended December 31, 2019
February 19 2020 - 9:00AM
Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a leading multi-industry
technology company that is driving innovation in a wide range of
consumer and commercial sectors, announced its financial results
for the quarter ending December 31st, 2019 by reporting an
operating income of $118,943, EBITDA of $909,162 and an increase of
114% in sales.
First Quarter Highlights:
Sales: $12,220,083EBITDA: $909,162EBITDA Margin
%: 7.4%Operating Profit: $118,943Cash and Equivalents:
$3,963,958Total Assets: $48,713,569Total Stockholder’s Equity:
$21,966,080
First Quarter Results:
- Sales: Total
Revenue for the three months ended December 31, 2019 and 2018 was
$12,220,083 and $5,717,589, respectively, an increase of
$6,502,494, or 114%. Total revenue for the fiscal year
increased, as compared to total revenue in the same period last
year, due to increased sales in the Advanced Technology segment.
Our Advanced Technologies segment revenues for the three months
ended December 31, 2019, increased by $6,757,398 or 1,444% to
$7,225,233 from $467,835 for the three months ended December 31,
2018. This increase represents mainly the Consolidation of Vicon
Industries, Inc.
- Gross Profit:
Gross Profit for the three months ended December 31, 2019 was
$5,348,486 or 44% of revenues as compared to gross profit of
$2,187,586 or 38% of revenues for the three months ended December
31, 2018. Gross profit increased in the three months ended
December 31, 2019, compared to the three months ended December 31,
2018 due shift to by management in the last fiscal year to focus on
products and services with higher gross margins.
- Operating Income:
The Company had an operating income of $118,943 or 1% of revenues,
for the three-month period ended December 31, 2019 as compared to
an operating loss of $1,526,492 or 26.7% of revenues, for the three
months ended December 31, 2018. Operating Income increased
$1,645,435, or 108% in the first quarter as compared to the same
period last year, as a result of the reduction of general and
administrative expenses in proportion to Revenues.
- Comprehensive Income /
Loss: The Company had a comprehensive loss of $829,218 or
6.8% of revenues, for the three-month period ended December 31,
2019 as compared to a comprehensive loss of $3,991,630 or 70% of
revenues, for the three months ended December 31, 2018, a decrease
of 79%. Comprehensive loss decreased in the first quarter as
compared to comprehensive loss in the same period last year, as a
result of the reduction of general and administrative
expenses.
Cemtrex’s Chairman and CEO, Saagar Govil,
commented on the results, “We are thrilled with the tremendous
progress we have made in restructuring our businesses for the
future as we generated over 900K in EBITDA this quarter. We have
demonstrated improvement in our gross margins which we believe will
continue to strengthen as we grow our top line. Our Company is back
to generating an operating profit which will provide the foundation
for future growth and creating more shareholder value.”
“We continue to receive new orders across all
our business segments and are bullish on our security, software
development, and IoT businesses going forward. We believe our
Company is well positioned in several high growth, exciting markets
that will lead to gross and net margin expansion over the next
couple years. We will continue to balance our desire for growing
our operating cash flow with making investments in our businesses
that will create long-term value. Furthermore, we are always on the
lookout for synergistic and opportunistic acquisitions that can
help drive value over the long term.”
|
|
For the
Three Months Ending |
EBITDA Reconciliation |
|
Dec 31 of
Each Year |
|
|
2020 |
|
|
2019 |
|
Total Operating (loss)/income |
|
$118,943 |
|
|
$(1,526,492) |
|
Depreciation and amortization |
|
$695,319 |
|
|
$796,301 |
|
Non-Cash Series C Stock Expense |
|
$94,900 |
|
|
$0 |
|
EBITDA (Non-GAAP) |
|
$909,162 |
|
|
$(730,191 |
|
Total Revenues |
|
$12,220,083 |
|
|
$5,717,589 |
|
EBITDA Margin % |
|
7.4% |
|
|
(12.8%) |
|
Earnings before interest, taxes, and
depreciation and amortization (EBITDA) are non-GAAP measures. In
defining Non-GAAP EBITDA, the Company excludes the impact of
non-recurring, non-cash stock-based compensation, and depreciation
and amortization. EBITDA has limitations as an analytical tool and
should not be evaluated in isolation or as a substitute for
analysis of results as reported under U.S. GAAP. Management
utilizes this metric as a basis for evaluating our ongoing
operations, and believes investors' understanding of our
performance is enhanced by including this non-GAAP financial
measure as a reasonable basis for evaluating our ongoing results of
operations, without the effects of interest, taxes, depreciation,
and amortization and other non-recurring expenses.
About Cemtrex
Cemtrex, Inc. (NASDAQ:CETX) is the manufacturer
of the SmartDesk, the world’s most advanced workstation. Cemtrex is
a diversified technology company that is driving innovation in a
wide range of sectors, including smart technology, virtual and
augmented realities, advanced electronic systems, industrial
solutions, and intelligent security systems. www.cemtrex.com
Safe Harbor StatementThis press
release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995, including
statements relating to our new product offerings or any proposed
fundraising activities. These forward-looking statements are based
on management's current expectations and are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those set forth in or implied by such forward
looking statements. These risks and uncertainties include, but are
not limited to: operational losses and negative cash flows; any
need for additional financing; market acceptance of our products;
our ability to manufacture and develop effective products and
solutions; indebtedness to our lenders; current and future economic
conditions that may adversely affect our business and customers;
potential fluctuation of our revenues and profitability from period
to period which could result in our failure to meet expectations;
our ability to maintain adequate levels of working capital; our
ability to incentivize and retain our current senior management
team and continue to attract and retain qualified scientific,
technical and business personnel; our ability to expand our product
offerings or to develop other new products and services; our
ability to generate sales and profits from current product
offerings; rapid technological changes and new technologies that
could render certain of our products and services to be obsolete;
competitors with significantly greater financial resources;
introduction of new products and services by competitors;
challenges associated with expansion into new markets; and, other
factors discussed under the heading "Risk Factors" contained in our
Form 10-K filed with the Securities and Exchange Commission. All
information in this press release is as of the date of the release
and we undertake no duty to update this information unless required
by law.
For further information, please contact:
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
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