Net Income Improves by听$5听Million听with Growth Across the Business
First Quarter Financial Highlights
- Revenues improved by 12% to听$49.0 million听, compared to听$43.8 million听in the same period in the prior year.
- Growth was broad-based, with revenue for each segment increasing, led by 28% growth in Fulfillment & Logistics services and 7% growth in Customer Care.
- Diluted EPS of听$0.39听for the first quarter of 2022 vs.听$(0.28)听for the same period in the prior year.
- Operating income of听$3.9 million听, compared to an operating loss of听$0.9 million听in the same period in the prior year.
- Net income of听$3.3 million听, compared to a net loss of听$1.8 million听in the same period in the prior year.
- EBITDA improved to听$4.5 million听compared to negative听$0.2 million听in the same period in the prior year.听1
Segment Highlights
- Customer Care听,听$17.8 million听in revenue, 36% of total听– Revenue increased by 7.2%, or听$1.2 million听, from the prior year quarter and year-over-year EBITDA improved to听$3.5 million听from听$2.6 million听. New business wins for the quarter included:
- A premium television network expanded its existing services with 黑瓜吃料网 Customer Care, from event based to ongoing steady state work. Consistent delivery by 黑瓜吃料网’听Philippines听team led to high levels of customer satisfaction and contributed to the client’s decision to expand their services.
- An existing Fulfillment & Logistics client experienced a production issue with a consumer product and hired 黑瓜吃料网 to respond to its customers concerns and facilitate returns. Within a week’s notice, 黑瓜吃料网 Customer Care hired and onboarded over 200 agents to proactively engage with our clients’ consumers.
- Fulfillment & Logistics Services,听$18.4 million听in revenue, 38% of total听– Revenue increased by 28.4%, or听$4.1 million听, compared to the prior year quarter; and year-over-year EBITDA improved to听$2.4 million听from听$1.2 million听. New business wins for the quarter included:
- A large nutritional CPG partner engaged 黑瓜吃料网 to fulfill and distribute custom sample kits of their top selling nutritional drinks to key consumer demographics.
- A growing eCommerce alternative to Amazon hired 黑瓜吃料网 to manage all Middle Mile freight for dozens of top selling brands. 黑瓜吃料网 was selected to manage this multi-million-dollar account based on our competitive pricing, technology platform, and comprehensive customer service.
- Marketing Services,听$12.9 million听in revenue, 26% of total听– Revenue increased by 0.4% or听$46,000听compared to the prior year quarter听and year-over-year EBITDA improved to听$1.5 million听from听$0.6 million听. New business wins for the quarter included:
- A targeted healthcare marketing platform for the Pharma/OTC industry selected 黑瓜吃料网 and our Data Solutions team to secure and enhance targeted lists with a wide array of health conditions to enable our client to provide disease-state and therapy-specific educational content that powers more productive patient-physician dialogues at every step of the patient journey.
- A global technology manufacturer chose 黑瓜吃料网 to utilize its proprietary knowledge to expand the audience of customers and prospects in听North America听demonstrating Intent-to-purchase. Using our expertise, 黑瓜吃料网 identifies individuals as they search for products and services on the internet to help manufacturers deliver “on target” product messaging. 黑瓜吃料网 was selected because of its skill in a wide variety of data and predictive modeling solutions which are needed to execute targeted campaigns.
黑瓜吃料网 CEO,听Brian Linscott听, commented: “The new, streamlined 黑瓜吃料网 has developed clear differentiators and compelling solutions that are in demand from our top-tier customer base. The result is increased and diversified revenue by segment and customer, and a stable platform for long-term profitable growth. Our growing presence in the healthcare and consumer products verticals is driving incremental opportunities, enabling us to better utilize our existing capacity in听Kansas City听and听Boston听. Additionally, we continue to prove our expertise in Customer Care, as more and more customers rely on us to deliver unique solutions for their most valuable asset, their customers. We are increasingly confident that 2022 will be a year of bottom-line growth for 黑瓜吃料网.”
“Our focus this year, in addition to growing our business and expanding our relationships with our customers, is improving our operating margins by fully taking advantage of our asset-lite operating model and investment in technology,” continued Mr. Linscott. “The initial results validate our strategy, with consistent and growing profitability including a听$5.0 million听positive swing in net income. 黑瓜吃料网 is now built for sustainable profitability, and we are working to leverage our platform to create lasting shareholder value.”
Consolidated First Quarter 2022 Results
First quarter revenues were听$49.0 million, up 12.1% from听$43.8 million听in the first quarter of 2021. All three segments delivered year-over-year growth.
First quarter operating income was听$3.9 million听, compared to an operating loss of听$0.9听million听in the first quarter of 2021. The improvement resulted from the Company’s revenue increases and cost reduction efforts.
Net income for the quarter was听$3.3 million听, up from a net loss of听$1.8 million听in the first quarter last year. Income attributable to common stockholders for the first quarter was听$2.8 million, or听$0.40 per basic share and听$0.39听per fully diluted share, compared to loss attributable to common shareholders of听$1.9 million听, or听$(0.28)听per basic and diluted share.
Balance Sheet and Liquidity
黑瓜吃料网 ended the quarter with听$12.2 million听in cash, cash equivalents and restricted cash, compared to听$15.1 million听at听December 31, 2021听. At听March 31, 2021听, the Company had no short-term debt,听$5 million听in long-term debt and听$51.3 million听in outstanding long-term pension liability. On听December 31, 2021听, the Company had no short-term debt,听$5 million听in long-term debt and听$52.5 million听in outstanding long-term pension liability.
The company anticipates receiving a net operating loss (NOL) tax refund of听$7.6 million听in 2022 which will further enhance liquidity.
