“I am very pleased with our financial results and continued progress on a number of key strategic fronts,” said
“We strengthened our platform and positioned ourselves for future growth with the addition of new talent and the completion of large long-term customer and vendor agreements,” Bailly said. “Our expansion in the
“We also have an exciting pipeline of active acquisition opportunities, with multiple projects already in the due diligence phase,” Bailly said. “Given this, combined with our continued growth, progress on strategic initiatives, and strong balance sheet with only around
Financial Highlights:
- Sales for the first quarter increased 7.4% to
$105.0 million , from$97.8 million in the first quarter of 2023. First quarter sales to the medical market increased 7.4% to$90.0 million from$83.8 million in the first quarter of 2023. First quarter sales to all other markets increased 7.4% to$15.0 million from$13.9 million in the first quarter of 2023. - Gross profit as a percentage of sales (“gross margin”) decreased to 28.6% for the first quarter of 2024, from 29.4% in the first quarter of 2023.
- Selling, general, and administrative expenses (“SG&A”) for the first quarter increased 7.0% to
$13.9 million compared to$13.0 million in the first quarter of 2023. As a percentage of sales, SG&A decreased to 13.2% in the first quarter of 2024 compared to 13.3% in the first quarter of 2023. - Operating income for the first quarter of 2024 increased 24.0% to
$15.9 million , from$12.8 million in the first quarter of 2023. Adjusted operating income for the first quarter increased 3.0% to$16.2 million from$15.7 million in the first quarter of 2023. See the reconciliation provided in Table 1. Adjusted Operating Income is a financial measure not presented in accordance with generally accepted accounting principles ("GAAP") (a "Non-GAAP Financial Measure"). Please see "Non-GAAP Financial Information" at the end of this news release. - Net income increased 30.3% to
$12.7 million in the first quarter of 2024, from$9.7 million in the first quarter of 2023. Adjusted net income increased 8.6% to$12.9 million in the first quarter of 2024, from$11.9 million in the first quarter of 2023. See the reconciliation provided in Table 2. Adjusted Net Income is a Non-GAAP financial measure. Please see "Non-GAAP Financial Information" at the end of this news release. - Earnings per share increased to
$1.64 per diluted share outstanding in the first quarter of 2024, from$1 .27 in the first quarter of 2023. - Adjusted EBITDA increased 6.5% to
$20.7 million from$19.5 million in the first quarter of 2023. See the reconciliation provided in Table 3. EBITDA and adjusted EBITDA are Non-GAAP Financial Measures. Please see "Non-GAAP Financial Information" at the end of this news release.
About
Consolidated Condensed Statements of Income (in thousands, except per share data) (unaudited) | |||||||
Three Months Ended | |||||||
March, 31 | |||||||
2024 | 2023 | ||||||
Net sales | $ | 105,009 | $ | 97,753 | |||
Cost of sales | 74,926 | 69,052 | |||||
Gross profit | 30,083 | 28,701 | |||||
Selling, general and administrative expenses | 13,912 | 13,006 | |||||
Change in fair value of contingent consideration | 238 | 2,853 | |||||
Loss on disposal of fixed assets | 9 | 1 | |||||
Operating income | 15,924 | - | 12,841 | ||||
Interest expense, net | 631 | 869 | |||||
Other (income) expense | (42 | ) | 77 | ||||
Income before income tax expense | 15,335 | 11,895 | |||||
Income tax expense | 2,642 | 2,156 | |||||
Net income | $ | 12,693 | $ | 9,739 | |||
Net income per share | $ | 1.66 | $ | 1.28 | |||
Net income per diluted share | $ | 1.64 | $ | 1.27 | |||
Weighted average shares outstanding | 7,651 | 7,592 | |||||
Weighted average diluted shares outstanding | 7,737 | 7,681 | |||||
Consolidated Condensed Balance Sheets (in thousands) (unaudited) | |||||||
2024 | 2023 | ||||||
Assets: | |||||||
Cash and cash equivalents | $ | 11,372 | $ | 5,263 | |||
Receivables, net | 61,250 | 64,449 | |||||
Inventories | 73,900 | 70,191 | |||||
Other current assets | 4,017 | 4,730 | |||||
Property, plant, and equipment, Net | 61,931 | 62,137 | |||||
113,104 | 113,263 | ||||||
Intangible assets, net | 62,914 | 64,116 | |||||
Other assets | 19,191 | 19,987 | |||||
Total assets | $ | 407,679 | $ | 404,136 | |||
Liabilities and equity: | |||||||
Accounts payable | $ | 23,654 | $ | 22,286 | |||
Current portion of long-term debt | 4,000 | 4,000 | |||||
Other current liabilities | 24,782 | 31,923 | |||||
Long-term debt, excluding current installments | 30,000 | 28,000 | |||||
Other liabilities | 30,227 | 31,836 | |||||
Total liabilities | 112,663 | 118,045 | |||||
Total equity | 295,016 | 286,091 | |||||
Total liabilities and stockholders' equity | $ | 407,679 | $ | 404,136 | |||
Forward-Looking Statements
Certain statements in this press release may be considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may be identified by words such as “may,” “should,” “expect,” “intend,” “will,” “estimate,” “anticipate,” “believe,” “predict,” or similar words. Such statements include, but are not limited to, statements about the Company’s future financial or operating performance; the continuing operation of the Company’s locations, the maintenance of its facilities and the sufficiency of the Company’s supply chain, inventory, liquidity and capital resources, including increased costs in connection with such efforts; statements about the Company’s acquisition strategies and opportunities and the Company’s growth potential and strategies for growth; statements about the integration and performance of recent acquisitions; statements about the Company’s ability to realize the benefits expected from our pipeline of acquisition opportunities and recently completed acquisitions, including any related synergies; expectations regarding customer demand and the impact of long-term customer and vendor agreements; and any indication that the Company may be able to sustain or increase its sales, earnings or earnings per share, or its sales, earnings or earnings per share growth rates. Such forward-looking statements are based upon assumptions made by the Company as of the date hereof and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company's general ability to execute its business plans; industry conditions, including fluctuations in supply, demand and prices for the Company's products and services due to inflation, the war in
Non-GAAP Financial Information
This news release includes non-generally accepted accounting principles (“GAAP”) performance measures. Management considers Adjusted Operating Income, Adjusted Net Income, EBITDA and Adjusted EBITDA, non-GAAP measures. The Company uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of the Company’s historical operating results. The Company’s management believes these non-GAAP measures are useful in evaluating the Company’s operating performance and are similar measures reported by publicly listed
Table 1: Adjusted Operating Income Reconciliation (in thousands) | |||||
Three Months Ended | |||||
2024 | 2023 | ||||
Operating income (GAAP) | $ | 15,924 | $ | 12,841 | |
Adjustments: | |||||
Change in fair value of contingent consideration | 238 | 2,853 | |||
Loss on disposal of fixed assets | 9 | 1 | |||
Adjusted operating income (Non-GAAP) | $ | 16,171 | $ | 15,695 | |
Table 2: Adjusted Net Income and Diluted Common Share Outstanding Reconciliation (in thousands, except per share data) | |||||
Three Months Ended | |||||
2024 | 2023 | ||||
Net income (GAAP) | $ | 12,693 | $ | 9,739 | |
Adjustments (net of taxes): | |||||
Change in fair value of contingent consideration | 177 | 2,120 | |||
Loss on disposal of fixed assets | 7 | 1 | |||
Adjusted net income (Non-GAAP) | $ | 12,877 | $ | 11,860 | |
Adjusted Net Income per diluted share outstanding (Non-GAAP) | $ | 1.66 | $ | 1.54 | |
Weighted average diluted common shares outstanding | 7,737 | 7,681 | |||
Table 3: EBITDA Reconciliation (in thousands) | |||||||
Three Months Ended | |||||||
2024 | 2023 | ||||||
Net income (GAAP) | $ | 12,693 | $ | 9,739 | |||
Income tax expense | 2,642 | 2,156 | |||||
Interest expense, net | 631 | 869 | |||||
Depreciation | 1,899 | 1,671 | |||||
Amortization of intangible assets | 1,099 | 1,106 | |||||
EBITDA (Non-GAAP) | $ | 18,964 | $ | 15,541 | |||
Adjustments: | |||||||
Share based compensation | 1,513 | 1,056 | |||||
Change in fair value of contingent consideration | 238 | 2,853 | |||||
Loss on disposal of fixed assets | 9 | 1 | |||||
Adjusted EBITDA (Non-GAAP) | $ | 20,724 | $ | 19,451 |
Source:
2024 GlobeNewswire, Inc., source