Cemtrex, Inc. (CETX) Announces Results for the Second Quarter Ending March 31, 2020
May 14 2020 - 4:45PM
– Cemtrex Inc. (Nasdaq: CETX, CETXP, CETXW), a leading
multi-industry technology company that is driving innovation in a
wide range of commercial sectors such as Internet of Things (IoT),
Augmented and Virtual Reality (AR & VR), and Artificial
Intelligence and Computer Vision (AI & CV) announced its
financial results for the quarter ending March 31st, 2020.
Fiscal Second Quarter Highlights:
Six Month EBITDA: $1,041,316Six Month EBITDA Margin %: 4.3%Gross
Margin: 44%Sales: $12,113,847Cash on Hand: $2,809,591Total Assets:
$50,273,206Total Stockholder’s Equity: $22,997,460
Results of Operations:
|
|
For the Six
Months Ending |
|
|
Mar 31 of
Each Year |
|
|
|
2020 |
|
|
|
2019 |
|
Total Revenues |
|
$ |
24,333,930 |
|
|
$ |
17,442,996 |
|
Total Operating (loss)/income |
|
|
(668,160 |
) |
|
|
(4,165,370 |
) |
Depreciation and amortization |
|
|
1,709,476 |
|
|
|
2,470,169 |
|
EBITDA (Non-GAAP) |
|
|
1,041,316 |
|
|
|
(1,695,201 |
) |
EBITDA Margin % |
|
|
4.3 |
% |
|
|
(9.7 |
%) |
Cemtrex’s Chairman and CEO, Saagar Govil, commented on the
results, “We continue to see improvement in our businesses with a
positive overall EBITDA for the fiscal year and better gross
margins. Our Company is highly focused on executing our development
roadmap consisting of exciting high tech products in IoT, AR &
VR, as well as in Artificial Intelligence and Machine Vision over
the coming 18 months. Our shift into these technology areas in
recent years has placed us in markets that will continue to thrive
despite the short-term effects of COVID-19. In particular, we have
a new SmartDesk slated for release later this year that will be the
ideal solution for many workers at their home office.”
“Additionally, despite the challenges presented by COVID-19 and
the overall anemic economic outlook, we continue to be fully
operational and win new business. While the short-term outlook due
to the coronavirus has created an enormous amount of uncertainty
and unpredictability, we remain optimistic about the Company’s
medium-term prospects. Based on the types of businesses we are in,
we believe the second half of 2020 will see an increase in demand
as the economy returns to a more normal state and stay at home
orders are lifted,” he continued.
For the Six Months Ending March 31, 2020:
- Revenues: Total revenue for the six months
ended March 31, 2020 and 2019 was $24,333,930 and $17,442,996,
respectively, an increase of $6,890,934, or 40%. Total revenue for
the first two quarters increased, as compared to total revenue in
the same period last year, due to sales increases in the Advanced
Technologies Segment.
- Our Advanced Technologies segment revenues for the six months
ended March 31, 2020, increased by $6,016,020or 81% to $13,411,633
from $7,395,613 for the six months ended March 31, 2019. This
increase represents mainly the consolidation of Vicon Industries,
Inc starting in the second quarter of fiscal year 2019.
- Our Industrial Services segment revenues for the six months
ended March 31, 2020, increased by $874,914 or 9%, to $10,922,297
from $10,047,383 for the six months ended March 31, 2019. The
increase was primarily due to the timing and recognition of
revenue.
- Gross Profit: Gross Profit for the six months
ended March 31, 2020 was $10,694,590 or 44% of revenues as compared
to gross profit of $6,994,384 or 40% of revenues for the six months
ended March 31, 2019. Gross profit increased in the six
months ended March 31, 2020, compared to the six months ended March
31, 2019 due to a shift by management in the last fiscal year to
focus on products with higher gross margins.
- EBITDA: EBITDA for the six months ended March
31, 2020 was $1,041,476 or 4.3% of revenues as compared to a loss
of $1,695,201, or -9.7% of revenues for the six months ended March
31, 2019. EBITDA increased due an overall reduction in general and
administration expenses, an increase in revenues, and an increase
in gross profit margin.
- Comprehensive Loss: The Company had a
comprehensive loss of $4,474,570 or 18% of revenues, for the
six-month period ended March 31, 2020 as compared to a
comprehensive loss of $6,146,707 or 35% of revenues, for the six
months ended March 31, 2019. Comprehensive loss decreased in
the first and second quarters as compared to comprehensive loss in
the same period last year, as a result of a decrease in general and
administrative expenses.
Fiscal Second Quarter Results:
- Revenues: Total revenue for the three months
ended March 31, 2020 and 2019 was $12,113,847 and $11,725,407,
respectively, an increase of $388,440, or 3%. Total revenue
for the quarter increased, as compared to total revenue in the same
period last year, due to sales increases in the Industrial Services
Segment.
- Our Advanced Technologies segment revenues for the three months
ended March 31, 2020, decreased by $741,738 or 11% to $6,186,400
from $6,927,778 for the three months ended March 31, 2019. This
decrease is mainly due to the impact of the COVID-19
crisis.
- Our Industrial Services segment revenues for the three months
ended March 31, 2020, increased by $1,129,818 or 24%, to $5,927,447
from $4,797,629 for the three months ended March 31, 2019. The
increase was primarily due to the timing and recognition of
revenue.
- Gross Profit: Gross Profit for the three
months ended March 31, 2020 was $5,346,104 or 44% of revenues as
compared to gross profit of $4,806,798 or 41% of revenues for the
three months ended March 31, 2019. 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.
- G & A: General and administrative expenses
for the three months ended March 31, 2020 decreased $1,355,920 or
19% to $5,728,274 from $7,084,194 for the three months ended March
31, 2019. General and administrative expenses as a percentage of
revenue was 47% and 60% of revenues for the three-month periods
ended March 31, 2020 and 2019. The decrease in General and
Administrative Expenses both as a percentage of revenue and on a
dollar per dollar basis is the result of reduction in overhead
expenses.
- Operating loss: The Company had an operating
loss of $787,103 or 6.5% of revenues, for the three-month period
ended March 31, 2020 as compared to an operating loss of $2,749,007
or 23.5% of revenues, for the three months ended March 31,
2019. Operating Income increased in the second quarter as
compared to the same period last year, as a result of the reduction
of general and administrative expenses.
- Comprehensive Income / Loss: The Company had a
comprehensive loss of $3,645,352 or 30% of revenues, for the
three-month period ended March 31, 2020 as compared to a
comprehensive loss of $2,155,075 or 18% of revenues, for the three
months ended March 31, 2019. Comprehensive loss increased in
the second quarter as compared to comprehensive loss in the same
period last year, as a result of an increase in non-operating
expenses such as interest expense, foreign currency translation,
and the accrual of the Series 1 Preferred Stock dividend.
About Cemtrex
Cemtrex, Inc. (CETX) is a technology company specializing in the
development of Internet of Things (IoT), artificial Intelligence
(AI) and Virtual Reality (VR) enabled technologies that's driving
innovation in a wide range of sectors, including consumer
products, industrial manufacturing, digital applications, and
intelligent security & surveillance systems.www.cemtrex.com
Safe Harbor Statement This 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.
Use of Non-GAAP Measures: Earnings before interest, taxes, and
depreciation and amortization (EBITDA) and Adjusted EBITDA are
non-GAAP measures. In defining Non-GAAP EBITDA, the Company
excludes the impact of non-cash stock-based compensation and other
non-recurring items, such as R&D expenses and equity interest
loss. 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.
For further information, please contact:
Investor Relations
Cemtrex, Inc.
Phone: 631-756-9116
investors@cemtrex.com
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