Surge Components, Inc. Announces First Quarter 2024 Results
Delivered Solid Q1
Drove Strong Operating Leverage and Expanded Gross Margin to 29.0%
Reduced Liabilities and Strengthened Balance Sheet
Operational Highlights
- The Company continues to invest in growth assets, including new sales talent.
- Challenge and Surge divisions are well-positioned to capitalize on the industry’s eventual rebound as industry dynamics and prospects begin to improve.
- The Company continues to maintain its superior lead times and stable production to better serve customers and preserve a competitive advantage over peers.
- The Company continues to successfully design customized new products for customers to differentiate and increase competitiveness.
Financial Highlights for the First Quarter Ended
-
Net loss available to common shareholders of
$74,501 ; loss per share of$0.01 compared to net income available to common shareholders of$392,660 ; EPS of$0.07 in the prior-year-period. -
Net sales of
$7.1 million , compared to$9.2 million in the prior-year period. -
Gross profit of
$2.0 million , compared to$2.6 million in the prior-year period. - Gross profit margin of 29.0%, compared to 28.8% in the prior-year period.
“Our first quarter results again demonstrated our ability to successfully adapt to and navigate a challenging and difficult macroeconomic backdrop that continues to weigh on our entire industry,” said
“Simultaneously, we continued to lay the groundwork to position the company to capitalize on the industry’s eventual turnaround. In the quarter, we hired more sales and engineering talent while maintaining our best-in-class industry lead times despite the challenging industry environment to remain competitive. The Surge division now has local sales managers in both the southern and eastern regions of
“We continue to believe the near-term will be difficult for the broader industry, with the eventual turnaround likely to begin towards the end of 2024. We remain positive on our business’ overall outlook as we strengthen our foundation and continue to invest in our capabilities and our people while solidifying our relationships to capitalize on the future rebound.”
Results of Operations for the Three Months Ended
Net sales for the three months ended
Gross profit for the three months ended
Selling and shipping expenses for the three months ended
General and administrative expenses for the three months ended
Net loss for the three months ended
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including statements regarding global economic conditions, expected rebound in the market, supply chain challenges, customer lead times, our future results of operations and financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
In some cases, forward-looking statements can be identified by terms such as "may," "will," "should," "expected," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar words. These statements are only predictions and are based largely on our current expectations and projections about future events and financial trends that may affect our business, financial condition and results of operations. We discuss many of the risks in greater detail under the heading "Risk Factors" in our Annual Report on Form 10-K. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update any forward-looking statements for events or circumstances occurring after the date of this press release, except as required by law.
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