Stran & Company, Inc. ("Stran" or the "Company")
(NASDAQ: STRN) (NASDAQ: STRNW), a leading outsourced
marketing solutions provider that leverages its promotional
products and loyalty incentive expertise, today provided a business
update and reported financial results for the three months ended
September 30, 2022.
“We continued to achieve steady growth in sales
for the third quarter of 2022, as evidenced by our revenue of $13.6
million, a 24% increase compared to the same period last year.
Notably, our revenue increased 50% year-over-year for the
nine-month period ended September 30, 2022 when compared to the
same period in 2021,” commented Andy Shape, President and CEO of
Stran. “We have effectively implemented a growth strategy that we
believe is allowing us to reach new records, operationally,
financially, and geographically. We are executing on our strategy
and have fully integrated Trend Brand Solutions, which we acquired
in August 2022, thereby broadening our geographic reach across the
United States. Specifically, Trend brings an established footprint
in Houston, Texas which is home to two dozen Fortune 500 companies,
and we believe provides opportunities to further penetrate the
Southern U.S. market. The acquisitions we have completed to date
are synergistic with Stran and allow us to enhance already
successful businesses by leveraging our growing sales force,
first-in-class technology solutions and expanding geographic
presence. In addition to our continued organic growth, M&A
continues to be a fundamental pillar of our strategy to accelerate
growth, further establish our leadership position within this
highly fragmented industry, and benefit from economies of
scale.”
Mr. Shape continued, “Additionally, we are
continuing to secure significant, multi-year contracts with
high-profile customers. This includes our contract with a leading
North American infrastructure service company announced during the
quarter. This contract is projected to generate over one million in
revenue annually and came as a referral from an existing customer,
which we believe further validates the quality of our products and
services as well as our value proposition for our customers.
Moreover, we are witnessing significant traction with our newly
implemented sales and marketing initiative, which has already
resulted in meaningful discussions with potential customers,
validating the vast untapped opportunities within the industry that
we intend to capitalize on. Overall, we have maintained a strong
balance sheet with $22 million of cash and cash equivalents and
short-term investments as of September 30, 2022, and no long-term
debt. We believe we are well-positioned to execute on our business
growth strategy and firmly position Stran at the forefront of the
industry.”
Financial Results
Revenue for the three months ended September 30,
2022 was $13.6 million compared to $10.9 million for the same
period in 2021. The increase was primarily due to higher spending
from existing clients as well as business from new customers.
Additionally, the Company benefited from the acquisition of the
G.A.P. Promotions assets in January 2022 and the Trend Brand
Solutions assets in August 2022.
Gross profit increased to $4.2 million, or 31.3%
of revenue, for the three months ended September 30, 2022, compared
to $3.7 million, or 34.0% of revenue, for the same period last
year. The increase in gross profit was due to increased sales,
partially offset by an increase in purchasing costs.
Net loss for the three months ended September
30, 2022 was approximately $0.7 million, compared to net earnings
of approximately $0.7 million for the same period last year. This
decrease was primarily due to lead generation initiatives,
integration expenses related to the acquisition of the G.A.P.
Promotions and Trend Brand Solutions assets, ongoing expenses
related to being a public company and higher cost of purchases.
These factors were partially offset by the increase in sales from
the G.A.P. Promotions and Trend Brand Solution assets and the
increase from recurring organic sales.
Conference Call
Stran will host a conference call at 10:00 A.M.
Eastern Time on Monday, November 14, 2022, to discuss the company’s
financial results for the third quarter ended September 30, 2022,
as well as the company’s corporate progress and other
developments.
The conference call will be available via
telephone by dialing toll-free 888-506-0062 for U.S. callers
or +1 973-528-0011 for international callers and using entry
code: 153630. A webcast of the call may be accessed
at https://www.webcaster4.com/Webcast/Page/2855/47093 or
on the company’s Investors section of the
website: ir.stran.com.
A webcast replay will be available on the
company’s Investors section of the website (ir.stran.com) through
November 14, 2023. A telephone replay of the call will be available
approximately one hour following the call, through November 28,
2022, and can be accessed by dialing 877-481-4010 for U.S. callers
or +1 919-882-2331 for international callers and entering
conference ID: 47093.
About Stran
Over the past 27 years, Stran has grown to
become a leader in the promotional products industry, specializing
in complex marketing programs to help recognize the value of
promotional products, branded merchandise and loyalty incentive
programs as a tool to drive awareness, build brands and impact
sales. Stran is the chosen partner of many Fortune 500 companies,
across a variety of industries, to execute their promotional
marketing, loyalty and incentive, sponsorship activation,
recruitment, retention, and wellness campaigns. Stran provides
world-class customer service and utilizes cutting-edge technology,
including efficient ordering and logistics technology to provide
order processing, warehousing and fulfillment functions. The
Company’s mission is to develop long-term relationships with its
clients, enabling them to connect with both their customers and
employees in order to build lasting brand loyalty. Additional
information about the Company is available at: www.stran.com.
Forward Looking Statements
This press release contains “forward-looking
statements” that are subject to substantial risks and
uncertainties. All statements, other than statements of historical
fact, contained in this press release are forward-looking
statements. Forward-looking statements contained in this press
release may be identified by the use of words such as “anticipate,”
“believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,”
“seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,”
“target,” “aim,” “should,” "will” “would,” or the negative of these
words or other similar expressions, although not all
forward-looking statements contain these words. Forward-looking
statements are based on the Company’s current expectations and are
subject to inherent uncertainties, risks and assumptions that are
difficult to predict. Further, certain forward-looking statements
are based on assumptions as to future events that may not prove to
be accurate. These and other risks and uncertainties are described
more fully in the section titled “Risk Factors” in the final
prospectuses related to the Company’s public offerings which have
been filed with the Securities and Exchange Commission (“SEC”) and
the Company’s periodic reports which have also been filed with the
SEC. Forward-looking statements contained in this announcement are
made as of this date, and the Company undertakes no duty to update
such information except as required under applicable law.
Contacts:
Investor Relations Contact:Crescendo
Communications, LLCTel: (212) 671-1021STRN@crescendo-ir.com
Press Contact:Howie Turkenkopf
press@stran.com
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
September 30, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
CURRENT ASSETS: |
|
|
|
|
|
|
Cash |
|
$ |
12,296,662 |
|
|
$ |
32,226,668 |
|
Short-Term Investments |
|
|
9,684,208 |
|
|
|
- |
|
Accounts Receivable, Net |
|
|
10,297,020 |
|
|
|
8,982,768 |
|
Deferred Income Taxes |
|
|
545,800 |
|
|
|
113,000 |
|
Inventory |
|
|
7,118,378 |
|
|
|
5,230,792 |
|
Prepaid Corporate Taxes |
|
|
87,459 |
|
|
|
87,459 |
|
Deposits |
|
|
342,323 |
|
|
|
623,402 |
|
Prepaid Expenses |
|
|
313,183 |
|
|
|
299,411 |
|
|
|
|
40,685,033 |
|
|
|
47,563,500 |
|
|
|
|
|
|
|
|
|
|
PROPERTY AND EQUIPMENT, NET: |
|
|
804,607 |
|
|
|
615,837 |
|
|
|
|
|
|
|
|
|
|
OTHER ASSETS: |
|
|
|
|
|
|
|
|
Intangible Assets - Customer Lists, Net |
|
|
5,459,240 |
|
|
|
1,929,294 |
|
Right of Use Asset - Office Leases |
|
|
864,050 |
|
|
|
1,094,778 |
|
|
|
|
6,323,290 |
|
|
|
3,024,072 |
|
|
|
$ |
47,812,930 |
|
|
$ |
51,203,409 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDER’S EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Current Portion of Contingent Earn-Out Liabilities |
|
$ |
1,780,578 |
|
|
$ |
665,855 |
|
Current Obligation under Right of Use Asset - Office Leases |
|
|
324,309 |
|
|
|
310,095 |
|
Accounts Payable and Accrued Expenses |
|
|
2,846,934 |
|
|
|
4,983,496 |
|
Accrued Payroll and Related |
|
|
693,626 |
|
|
|
836,915 |
|
Unearned Revenue |
|
|
569,358 |
|
|
|
721,608 |
|
Rewards Program Liability |
|
|
- |
|
|
|
43,878 |
|
Sales Tax Payable |
|
|
221,157 |
|
|
|
106,824 |
|
Note Payable - Wildman |
|
|
162,358 |
|
|
|
162,358 |
|
|
|
|
6,598,320 |
|
|
|
7,831,029 |
|
|
|
|
|
|
|
|
|
|
LONG-TERM LIABILITIES: |
|
|
|
|
|
|
|
|
Long-Term Contingent Earn-Out Liability |
|
|
2,200,844 |
|
|
|
976,078 |
|
Long-Term Obligation under Right of Use Asset - Office Leases |
|
|
539,741 |
|
|
|
784,683 |
|
|
|
|
2,740,585 |
|
|
|
1,760,761 |
|
STOCKHOLDER’S EQUITY: |
|
|
|
|
|
|
|
|
Common Stock, $.0001 Par Value; 300,000,000 Shares Authorized,
18,537,410 and 19,753,852 Shares Issued and Outstanding as of
September 30, 2022 and December 31, 2021, respectively |
|
|
1,854 |
|
|
|
1,976 |
|
Additional Paid-In Capital |
|
|
38,291,586 |
|
|
|
39,747,649 |
|
Retained Earnings |
|
|
180,585 |
|
|
|
1,861,994 |
|
|
|
|
38,474,025 |
|
|
|
41,611,619 |
|
|
|
$ |
47,812,930 |
|
|
$ |
51,203,409 |
|
CONDENSED CONSOLIDATED STATEMENTS OF
EARNINGS (LOSS) AND RETAINED EARNINGS THREE AND
NINE MONTHS ENDED SEPTEMBER 30, 2022 AND
2021(UNAUDITED)
|
|
Three Months
EndedSeptember 30,
2022 |
|
|
Three Months EndedSeptember
30, 2021 |
|
|
Nine Months EndedSeptember 30,
2022 |
|
|
Nine Months EndedSeptember 30,
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES |
|
$ |
13,576,072 |
|
|
$ |
10,947,724 |
|
|
$ |
40,642,559 |
|
|
$ |
27,075,116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF SALES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases |
|
|
8,388,856 |
|
|
|
6,362,217 |
|
|
|
25,843,023 |
|
|
|
16,435,550 |
|
Freight |
|
|
939,865 |
|
|
|
860,813 |
|
|
|
3,573,830 |
|
|
|
2,478,457 |
|
|
|
|
9,328,721 |
|
|
|
7,223,030 |
|
|
|
29,416,853 |
|
|
|
18,914,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
|
4,247,351 |
|
|
|
3,724,694 |
|
|
|
11,225,706 |
|
|
|
8,161,109 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and Administrative Expenses |
|
|
4,896,386 |
|
|
|
2,689,101 |
|
|
|
13,152,774 |
|
|
|
8,333,132 |
|
|
|
|
4,896,386 |
|
|
|
2,689,101 |
|
|
|
13,152,774 |
|
|
|
8,333,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) FROM OPERATIONS |
|
|
(649,035 |
) |
|
|
1,035,593 |
|
|
|
(1,927,068 |
) |
|
|
(172,023 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME AND (EXPENSE): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Expense |
|
|
- |
|
|
|
- |
|
|
|
(27,461 |
) |
|
|
- |
|
Other Income |
|
|
20,471 |
|
|
|
6,378 |
|
|
|
119,585 |
|
|
|
776,440 |
|
Interest Expense |
|
|
(12,800 |
) |
|
|
(26,260 |
) |
|
|
(18,942 |
) |
|
|
(66,066 |
) |
Interest Income |
|
|
9,919 |
|
|
|
- |
|
|
|
9,919 |
|
|
|
- |
|
Unrealized Loss on Short Term Investments |
|
|
(231,214 |
) |
|
|
- |
|
|
|
(231,214 |
) |
|
|
- |
|
|
|
|
(213,624 |
) |
|
|
(19,882 |
) |
|
|
(148,113 |
) |
|
|
710,374 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES |
|
|
(862,659 |
) |
|
|
1,015,711 |
|
|
|
(2,075,181 |
) |
|
|
538,351 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME TAXES |
|
|
(174,507 |
) |
|
|
291,843 |
|
|
|
(393,772 |
) |
|
|
273,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS |
|
|
(688,152 |
) |
|
|
723,868 |
|
|
|
(1,681,409 |
) |
|
|
264,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.03 |
) |
|
$ |
0.07 |
|
|
$ |
(0.09 |
) |
|
$ |
0.03 |
|
Diluted |
|
$ |
(0.02 |
) |
|
$ |
0.07 |
|
|
$ |
(0.05 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
19,702,136 |
|
|
|
10,000,000 |
|
|
|
19,702,136 |
|
|
|
10,000,000 |
|
Diluted |
|
|
31,381,151 |
|
|
|
10,000,000 |
|
|
|
31,381,151 |
|
|
|
10,000,000 |
|
Stran (NASDAQ:STRNW)
過去 株価チャート
から 5 2024 まで 6 2024
Stran (NASDAQ:STRNW)
過去 株価チャート
から 6 2023 まで 6 2024