05/17/2021 | Press release | Distributed by Public on 05/17/2021 14:02
FREDERICK, Md., May 17, 2021 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® ('TOMI') (NASDAQ:TOMZ), a global company specializing in disinfection and decontamination utilizing its premier Binary Ionization Technology (BIT) platform through its SteraMist brand of products, today announced its financial results for the first quarter 2021.
TOMI Chief Executive Officer, Dr. Halden Shane stated, 'Our first quarter 2021 revenues had a steep comparison to last year's first quarter, when the onset of COVID-19 pandemic created an unprecedented demand in the marketplace for disinfection and decontamination solutions, including demand for our products. While the economy has begun to reopen, this year's first quarter results reflect headwinds from the impact of many of our customers' continued remote work environment as well as delays in capital expenditure projects across our customer base. As a result, it has been difficult for us to fully implement our strategies to generate sustained growth following the spike of demand we experienced in 2020. For example, our in-person demos with potential customers remained suspended in the quarter and many custom engineered systems (CES) were postponed. That said, we made considerable progress advancing key building blocks for our long term growth, including expanding our internal sales force and continuing the development of three exciting new products. We are particularly excited about the upcoming launch of our SteraPak product, a much anticipated offering which further differentiates our 6-log kill solutions in the marketplace and better position us to continue our mission to make the world a safer place.'
Dr. Shane continued, 'The pandemic accelerated the introduction of our product to a broader, highly satisfied customer base, many of whom ordered our hardware and solution quickly at the outset of the pandemic and are beginning to integrate our solution into their ongoing disinfection procedures. This pandemic has truly changed how people think about proactive decontamination and we are optimistic about our ability to capitalize on that new thinking as we continue to execute our long term plan to become the standard in decontamination worldwide. We believe these factors will drive sustained, higher margin sales at levels above pre-pandemic levels as more businesses reopen and commercial activities accelerate.'
Financial Results for the Three Months Ended March 31, 2021 compared to March 31, 2020
Balance sheet highlights as of March 31, 2021
Current Business Highlights To Date
Conference Call Information
TOMI will hold a conference call to discuss first quarter 2021 results at 4:30 p.m. ET today, May 17, 2021.
To participate in the call by phone, dial (877) 545-0320 and entry code 408875 approximately five minutes prior to the scheduled start time. International callers please dial (973) 528-0016 and entry code 408875. To access the live webcast or view the press release, please visit the Investor Relations section of the TOMI website at:
http://investor.tomimist.com/TOMZ/webcasts_and_events/2145
A replay of the teleconference will be available until May 28, 2021 and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code: 41341 A replay of the webcast will be available for at least 90 days on the company's website, starting approximately one hour after the completion of the call.
TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®
TOMI™ Environmental Solutions, Inc. (NASDAQ:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BIT™ solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP™). Represented by the SteraMist® brand of products, iHP™ produces a germ-killing aerosol that works like a visual non-caustic gas.
TOMI products are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.
TOMI develops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, America Seed Trade Association, and The Restoration Industry Association.
For additional information, please visit http://www.tomimist.com/ or contact us at [email protected].
Forward-Looking Statements
This press release contain forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management's judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, statements relating to anticipated financial performance and operating results; upcoming launch of new products; expected growth in sales and market demand; timing and process relating to research studies and testing; impact of COVID-19 pandemic on our business operation; and our ability to execute sale strategies. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, the impact of COVID-19 pandemic on our business and customers; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2020 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today's date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.
Use of Non-GAAP Financial Measures
To supplement our unaudited consolidated financial statements presented on a basis consistent with U.S. GAAP, we disclose certain non-GAAP financial measures for our historical performance, including EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. We define EBITDA as net income (loss), adjusted to exclude: interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure and is intended to serve as a supplement to our results provided in accordance with GAAP. We define Adjusted EBITDA as net income (loss), adjusted to exclude: interest, taxes, depreciation and amortization; stock-based compensation expense. We define Adjusted EBITDA margin as Adjusted EBITDA divided by net revenue. We believe that these historical non-GAAP financial measures provide useful information to both management and investors by excluding certain items and expenses that are not indicative of our core operating results or do not reflect our normal business operations. In addition, our management uses non-GAAP measures to evaluate our performance internally and to benchmark our performance externally against competitors. Our use of non-GAAP financial measures has certain limitations in that such non-GAAP financial measures may not be directly comparable to those reported by other companies. Although we believe that the use of non-GAAP financial measures enhances its investors' understanding of its business and performance, our use of non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures and should be read in conjunction with the relevant GAAP financial measures. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. Because of these limitations, the non-GAAP financial measure used in this release should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable U.S. GAAP as set forth below. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures.
TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||
ASSETS | |||||||
March 31, 2021 | |||||||
Current Assets: | (Unaudited) | December 31, 2020 | |||||
Cash and Cash Equivalents | $ | 3,945,658 | $ | 5,198,842 | |||
Accounts Receivable - net | 3,743,430 | 3,716,701 | |||||
Other Receivables | - | 198,951 | |||||
Inventories | 4,765,455 | 3,781,515 | |||||
Vendor Deposits | 146,130 | 388,712 | |||||
Prepaid Expenses | 316,439 | 421,305 | |||||
Total Current Assets | 12,917,114 | 13,706,027 | |||||
Property and Equipment - net | 1,235,483 | 1,298,103 | |||||
Other Assets: | |||||||
Intangible Assets - net | 720,494 | 722,916 | |||||
Operating Lease - Right of Use Asset | 619,989 | 631,527 | |||||
Capitalized Software Development Costs - net | 41,902 | 52,377 | |||||
Other Assets | 516,230 | 358,935 | |||||
Total Other Assets | 1,898,614 | 1,765,755 | |||||
Total Assets | $ | 16,051,211 | $ | 16,769,885 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current Liabilities: | |||||||
Accounts Payable | $ | 2,046,667 | $ | 1,501,469 | |||
Accrued Expenses and Other Current Liabilities | 629,797 | 501,849 | |||||
Customer Deposits | 28,949 | 118,880 | |||||
Current Portion of Long-Term Operating Lease | 83,768 | 81,223 | |||||
Total Current Liabilities | 2,789,181 | 2,203,421 | |||||
Long-Term Liabilities: | |||||||
Loan Payable | 410,700 | 410,700 | |||||
Long-Term Operating Lease, Net of Current Portion | 931,697 | 953,190 | |||||
Total Long-Term Liabilities | 1,342,397 | 1,363,890 | |||||
Total Liabilities | 4,131,577 | 3,567,311 | |||||
Commitments and Contingencies | - | - | |||||
Shareholders' Equity: | |||||||
Cumulative Convertible Series A Preferred Stock; | |||||||
par value $0.01 per share, 1,000,000 shares authorized; 63,750 shares issued | |||||||
and outstanding at March 31, 2021 and December 31, 2020 | 638 | 638 | |||||
Cumulative Convertible Series B Preferred Stock; $1,000 stated value; | |||||||
7.5% Cumulative dividend; 4,000 shares authorized; none issued | |||||||
and outstanding at March 31, 2021 and December 31, 2020 | - | - | |||||
Common stock; par value $0.01 per share, 250,000,000 shares authorized; | |||||||
16,811,513 and 16,761,513 shares issued and outstanding | |||||||
at March 31, 2021 and December 31, 2020, respectively. | 168,115 | 167,615 | |||||
Additional Paid-In Capital | 52,369,899 | 52,142,399 | |||||
Accumulated Deficit | (40,619,018 | ) | (39,108,078 | ) | |||
Total Shareholders' Equity | 11,919,634 | 13,202,574 | |||||
Total Liabilities and Shareholders' Equity | $ | 16,051,211 | $ | 16,769,885 | |||
TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | |||||||
(UNAUDITED) | |||||||
For The Three Months Ended | |||||||
March 31, | |||||||
2021 | 2020 (1) | ||||||
Sales, net | $ | 2,073,455 | $ | 7,053,418 | |||
Cost of Sales | 838,297 | 2,565,410 | |||||
Gross Profit | 1,235,158 | 4,488,008 | |||||
Operating Expenses: | |||||||
Professional Fees | 173,493 | 136,125 | |||||
Depreciation and Amortization | 83,449 | 171,909 | |||||
Selling Expenses | 474,389 | 378,645 | |||||
Research and Development | 195,620 | 59,458 | |||||
Equity Compensation Expense | - | 182,772 | |||||
Consulting Fees | 106,174 | 81,545 | |||||
General and Administrative | 1,712,366 | 818,145 | |||||
Total Operating Expenses | 2,745,491 | 1,828,599 | |||||
Income (loss) from Operations | (1,510,333 | ) | 2,659,409 | ||||
Other Income (Expense): | |||||||
Interest Income | 427 | 542 | |||||
Interest Expense | (1,035 | ) | (40,689 | ) | |||
Total Other Income (Expense) | (608 | ) | (40,147 | ) | |||
Income (loss) before income taxes | (1,510,940 | ) | 2,619,261 | ||||
Provision for Income Taxes | - | - | |||||
Net Income (loss) | $ | (1,510,940 | ) | $ | 2,619,261 | ||
Net income (loss) Per Common Share | |||||||
Basic | $ | (0.09 | ) | $ | 0.17 | ||
Diluted | $ | (0.09 | ) | $ | 0.14 | ||
Basic Weighted Average Common Shares Outstanding | 16,805,402 | 15,850,352 | |||||
Diluted Weighted Average Common Shares Outstanding | 16,805,402 | 18,117,710 |
(1) Share amounts with respect to the common stock and Convertible Series A Preferred Stock have been retroactively restated to reflect the reverse split thereof, which was effected as of the close of business on September 10, 2020.
The following is a reconciliation of net income (loss) to EBITDA and Adjusted EBITDA (in thousands, except percentages; unaudited):
For The Three Months Ended | |||||||
March 31, | |||||||
2021 | 2020 | ||||||
(Unaudited) | (Unaudited) | ||||||
Net income (loss) | $ | (1,510,940 | ) | $ | 2,619,261 | ||
Interest Income | (427 | ) | (542 | ) | |||
Interest Expense | 1,035 | 40,689 | |||||
Depreciation and Amortization | 83,449 | 171,909 | |||||
Other | - | - | |||||
EBITDA | $ | (1,426,883 | ) | $ | 2,831,317 | ||
Equity Compensation Expense | - | 182,772 | |||||
Adjusted EBITDA | $ | (1,426,883 | ) | $ | 3,014,089 | ||
Net revenue | $ | 2,073,455 | $ | 7,053,418 | |||
Adjusted EBITDA Margin | (69 | %) | 43 | % | |||
INVESTOR RELATIONS CONTACT:
John Nesbett/Jennifer Belodeau
IMS Investor Relations
[email protected]