UNITED COMMUNICATIONS PARTNERS INC. Report for January-June 2022
Letter from the Chairman of the Board
We hereby file the UCP Quarterly Report for Q2 2022. The complete report can be viewed here. In addition to the report, we want to highlight the following in the UCP group development.
Net revenues
Net revenues the six months ending June 30, 2022, are up 12% compared to the same period last year. During the three months ending June 30, 2022, the net revenues are 5% higher than the same period last year. The first quarter of the year the net revenues were 23% higher than the same period last year, as many new clients (+13) came onboard during the first quarter. In the second quarter the Company has also successfully sold many new projects and services to current clients as well as entered contracts with several new clients (+6). The Company is increasingly selling tech, research and analytic projects, digital solutions, and digital specialist services to clients. We have recently recruited a Nordic Sales Manager that will start in September and strengthen our sales team.
The ongoing war in Ukraine and the increasing inflation has to date not had a significant impact on the Company's business or on most clients' marketing budgets, even though it has had significant impact on a few of the Company's clients. The latter mentioned clients are experiencing shortage of supply of material for production of its products and/or distribution challenges and hence these clients' marketing plans have had to be adapted accordingly. We foresee that the high inflation and the challenges in the global economy will increasingly affect our clients' marketing activities. We are well equipped for the future and have incorporated the expected tougher market conditions into our business plan.
Gross profit and result of operations
Gross profit has increased 6.6% the first six months of the year compared to the same period 2021.
The operations generated a profit of $509,000 the six months ended June 30, 2022, compared to a loss of $366,000 the same period last year. The main explaining factor for the increase in income from operations is that the selling, general and administrative expenses of the operations have decreased 30% year to date compared with the same period in year 2021. The review of our organizational set-up and staffing conducted the second half of year 2021 resulted in a decision to have a smaller top management, to clear out parts that were not profitable and to review our overhead costs, which has resulted in significant savings this year. The selling, general and administrative expenses share of net revenues is 6.4% the first half year compared to 10.4% last year. We will invest a part of the made savings in the second half of the year for new hires of top-of- the class resources to meet the demand for specific digital services and strengthening our offering as well as to ensure we have sufficient resources to secure delivery of our services to our clients as our client base is growing.
Profit before taxes and minority interest
Profit before taxes and minority interest year to date is $416,000 compared to a loss of $474,000 in 2021. The profit available to shareholders by June 30, 2022, is $372,000.
We will continue our core business objective of contributing to our clients´ attainment of their objectives through efficient and creative solutions granting a good return on their marketing and media investments. It is our firm belief that our chosen strategy will ensure the Company's continued growth and profitability. The powering by Making Science has strengthen UCP and its subsidiaries and given the group a competitive edge in the market. It has also contributed to the fast competence enhancement of our business and our staff. We can provide clients with top level tech and digital consulting for marketing and media as well as with top-of-the-class traditional media services.
New York, USA, 15th of August 2022
Niclas Fröberg, Chairman of the Board
UNITED COMMUNICATIONS PARTNERS INC 625 Broadway, New York, NY10012, USA
Table of Contents
Page | |
FINANCIAL INFORMATION | |
Financial Statements. | |
Consolidated Balance Sheets as of June 30, 2022 (unaudited) and December 31, | |
2021 (unaudited) | 2-3 |
Consolidated Statements of Operations for the three and six months ended June | |
30, 2022 (unaudited) and 2021 (unaudited) | 4 |
Consolidated Statement of Stockholder's Equity and Comprehensive Loss for the | |
six months ended June 30, 2022 (unaudited) and for the year ended December 31, | |
2021 (unaudited) | 5 |
Consolidated Statements of Cash Flows for the six months ended June 30, 2022 | |
(unaudited) and 2021 (unaudited) | 6 |
Notes to Consolidated Financial Statements | 7-18 |
Certifications | 19 |
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United Communications Partners Inc. and Subsidiaries
Consolidated Balance Sheets (Unaudited)
(In thousands of USD)
Assets | June 30, | December 31, | |||
2022 | 2021 | ||||
Current Assets: | |||||
Cash and cash equivalents | $ | 3,170 | $ | 2,742 | |
Accounts receivable, net | 5,168 | 5,440 | |||
Costs and estimated earnings in excess of billings on projects in | |||||
progress | 202 | 133 | |||
Value added tax refund receivable | - | 41 | |||
Prepaid expenses and other current assets | 572 | 351 | |||
Total Current Assets | 9,112 | 8,707 | |||
Non-Current Assets: | |||||
Equipment, net | 44 | 47 | |||
Equity investments | (40) | (9) | |||
Other investments | 212 | 239 | |||
Goodwill | 2,954 | 2,954 | |||
Other intangible assets, net | - | - | |||
Total Non-Current Assets | 3,170 | 3,231 | |||
Total Assets | $ | 12,282 | $ | 11,938 |
See notes to the consolidated financial statements.
2
United Communications Partners Inc. and Subsidiaries
Consolidated Balance Sheets (continued)
(In thousands of USD)
Liabilities | June 30, | December 31, | ||
2022 | 2021 | |||
Current Liabilities: | ||||
Accounts payable | $ | 7,124 | $ | 6,588 |
Accrued expenses and other current liabilities | 938 | 1,291 | ||
Billings in excess of costs and estimated earnings on projects | ||||
in progress | 2,938 | 3,261 | ||
Value added tax payable | 73 | - | ||
Note payables | 902 | 1,292 | ||
Advances from related parties | - | - | ||
Total Current Liabilities | 11,975 | 12,432 | ||
Contingent consideration - Tre Kronor | - | - | ||
Total Liabilities | 11,975 | 12,432 | ||
Non-controlling interest | 58 | 36 | ||
Commitments and contingencies | ||||
Stockholders' Equity | ||||
Preferred stock $0.001 per share par value; 100,000,000 | ||||
shares authorized; 0 issued and outstanding. | - | - | ||
Common stock $0.001 per share par value; 2,000,000,000 | ||||
shares authorized, 1,617,887,264 shares issued, and | ||||
1,610,887,264 shares outstanding on December 31, 2021, | ||||
and June 30, 2022. | 1,618 | 1,618 | ||
Additional paid-in capital | 9,179 | 9,179 | ||
Accumulated deficit | (11,433) | (11,805) | ||
Treasury Stock, at cost, 7,000,000 shares | (7) | (7) | ||
Accumulated other comprehensive income | 892 | 485 | ||
Total Stockholders' Equity | 249 | (530) | ||
Total liabilities and stockholders' equity | $ | 12,282 | $ | 11,938 |
See notes to the consolidated financial statements.
3
United Communications Partners Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(In thousands of USD, except for per share amounts)
For the three months ended
June 30,
20222021
For the six months ended
June 30,
20222021
Net revenues | $ | 15,052 | $ | 14,309 | $ | 26,257 | $ | 23,382 |
Cost of revenues | (13,832) | (13,124) | (24,045) | (21,305) | ||||
Gross Profit | 1,220 | 1,185 | 2,212 | 2,077 | ||||
Selling, general and administrative expenses | (845) | (1,218) | (1,691) | (2,429) | ||||
Depreciation and amortization | (6) | (7) | (12) | (14) | ||||
Income (Loss) from operations | 369 | (40) | 509 | (366) | ||||
Other income (expense), net: | ||||||||
Income (loss) from equity investments | (22) | (9) | (45) | (48) | ||||
Profit (loss) from disposal of equipment | - | - | - | - | ||||
Interest expense | (17) | (30) | (48) | (60) | ||||
Total other income (expense), net | (39) | (39) | (93) | (108) | ||||
Net Income (Loss) before taxes and minority | 330 | (79) | 416 | (474) | ||||
Interest | ||||||||
Provision for income taxes | (19) | - | (21) | - | ||||
Net loss (gain) attributable to the | (20) | (5) | (23) | 31 | ||||
Non-Controlling Interest | ||||||||
Net Income (loss) available to common | ||||||||
Shareholders | $ | 291 | $ | (84) | $ | 372 | $ | (443) |
Net Income (loss) per share - Basic and diluted | ||||||||
Continuing operations | $ | (-) | $ | (-) | $ | (-) | $ | (-) |
Discontinued operations | (-) | (-) | (-) | (-) | ||||
Net Income (loss) | $ | (-) | $ | (-) | $ | (-) | $ | (-) |
Weighted-average shares outstanding: | ||||||||
Basic and diluted | 1,610,887,264 | 1,610,887,264 | 1,610,887,264 | 1,610,887,264 |
See notes to the consolidated financial statements.
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United Communications Partners Inc. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 August 2022 22:51:08 UTC.
