BusinessWire

iGo Reports Second Quarter Financial Results

NEW YORK--(BUSINESS WIRE)--iGo, Inc. (OTC PINK: IGOI), today announced operating results for the second quarter and six months ended June 30, 2020.

Financial Overview

Second quarter of 2020 compared with second quarter of 2019

  • Revenue for the second quarter of 2020 was $15.4 million, as compared to revenue of $14.9 million in the same period of the prior year.
  • Net income was $0.8 million, or $0.11 per share, for the second quarter of 2020, as compared to net income of $0.4 million, or $0.05 per share, in the same period of the prior year.

Six months ended June 30, 2020 compared with six months ended June 30, 2019

  • Revenue for the six months ended June 30, 2020 was $30.6 million, as compared to revenue of $30.5 million in the same period of the prior year.
  • Net income was $1.3 million, or $0.16 per share, for the six months ended June 30, 2020, as compared to net income of $0.5 million, or $0.06 per share, in the same period of the prior year.

The spread of the COVID-19 outbreak has caused significant disruptions in the U.S. and global economies. The Company continues to evaluate the global risks and the slowdown in business activity related to COVID-19, including the potential impacts on its employees, customers, suppliers, and financial results. As the situation surrounding COVID-19 remains fluid, it is difficult to predict the duration of the pandemic and its continued impact on the Company's business, operations, financial condition, and cash flows. As the COVID-19 pandemic progressed, the Company initiated cost reduction actions, including hiring freezes, employee furloughs, staffing and force reductions, salary reductions, bonus payment deferrals, and 401(k) match suspension to help mitigate the financial impact of the COVID-19 pandemic. The Company also froze all discretionary spend, implemented strict approvals for capital expenditures, and is aggressively managing working capital. The Company continues to evaluate further actions as circumstances warrant.

While the Company developed and implemented, and continues to develop and implement, health and safety protocols, business continuity plans, and crisis management protocols in an effort to try to mitigate the negative impact of COVID-19 to its employees and business, the severity of the impact of the COVID-19 pandemic on the Company's business in the remaining quarters of 2020 and beyond will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic, governmental actions that have been taken, or may be taken in the future, in response to the pandemic, and the extent and severity of the impact on the Company's customers and suppliers, all of which are uncertain and cannot be predicted.

About iGo

iGo, Inc. was previously a provider of mobile accessories and is evaluating alternative strategies for uses of its capital and the iGo brand. iGo's Kasco subsidiary provides metallic blade products for the meat cutting, food cutting, and wood cutting industries to the global market. Its route distribution unit provides the U.S. and Canada retail grocery and retail food industries with quality butcher supplies, resupply products, and seasonings. Headquartered in St. Louis and founded in 1901, Kasco has manufacturing, sales, and warehouse operations in St. Louis, Canada, Mexico, Wales, and Germany.

Forward-Looking Statements

Certain information in this press release may constitute forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those stated. Such forward-looking statements do not guaranty future performance and are subject to various factors that could cause actual results to differ materially. Undue reliance should not be placed on such forward-looking statements. Due to the continued uncertainty of the impact of COVID-19 on the global economy, it is difficult to predict the duration of the pandemic and its impact on the Company's business, operations, and financial condition. iGo undertakes no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements. Additionally, iGo does not undertake any responsibility to provide updates on the occurrence of unanticipated events which may cause actual results to differ from those expressed or implied by these forward-looking statements.

iGo, Inc.

Consolidated Balance Sheets

(unaudited)

(in thousands, except common shares)

 

 

 

 

 

June 30, 2020

 

December 31, 2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,852

 

 

$

1,687

 

Accounts receivable, net

7,869

 

 

7,731

 

Inventories

5,158

 

 

4,844

 

Prepaid expenses and other current assets

1,081

 

 

1,012

 

Total current assets

15,960

 

 

15,274

 

Property, plant and equipment, net

11,195

 

 

11,498

 

Operating lease right-of-use assets

986

 

 

1,225

 

Intangible assets, net

989

 

 

1,070

 

Deferred tax assets

1,408

 

 

1,408

 

Total Assets

$

30,538

 

 

$

30,475

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

3,433

 

 

$

2,974

 

Accrued expenses

4,299

 

 

3,051

 

Short-term debt

92

 

 

570

 

Payable to related parties

409

 

 

301

 

Operating lease liabilities

464

 

 

478

 

Total current liabilities

8,697

 

 

7,374

 

Long-term debt

5,500

 

 

7,600

 

Long-term operating lease liabilities

511

 

 

734

 

Other non-current liabilities

1,928

 

 

1,928

 

Total Liabilities

16,636

 

 

17,636

 

Commitments and Contingencies

 

 

 

Stockholders' equity:

 

 

 

Common stock, $0.01 par value: authorized 10,000,000 shares; 7,877,278
shares issued and outstanding

79

 

 

79

 

Accumulated other comprehensive loss

(1,060)

 

 

(867)

 

Capital deficit

(20,608)

 

 

(20,608)

 

Retained earnings

35,491

 

 

34,235

 

Total Stockholders' Equity

13,902

 

 

12,839

 

Total Liabilities and Stockholders' Equity

$

30,538

 

 

$

30,475

 

iGo, Inc.

Consolidated Statements of Income

(unaudited)

(in thousands, except common shares and per common share data)

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

June 30,

 

June 30,

 

2020

 

2019

 

2020

 

2019

Revenue

$

15,366

 

 

$

14,925

 

 

$

30,562

 

 

$

30,548

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Cost of goods sold

7,863

 

 

7,528

 

 

15,772

 

 

15,462

 

Selling, general and administrative expenses

6,203

 

 

6,589

 

 

12,797

 

 

14,124

 

Restructuring charges

 

 

 

 

(28)

 

 

 

Interest expense

71

 

 

130

 

 

147

 

 

251

 

Gain from asset dispositions

(32)

 

 

(56)

 

 

(62)

 

 

(133)

 

Other (income) loss, net

(72)

 

 

7

 

 

(109)

 

 

29

 

Total costs and expenses

14,033

 

 

14,198

 

 

28,517

 

 

29,733

 

Income before income taxes

1,333

 

 

727

 

 

2,045

 

 

815

 

Income tax provision

505

 

 

312

 

 

789

 

 

342

 

Net income

$

828

 

 

$

415

 

 

$

1,256

 

 

$

473

 

Net income per common share - basic and diluted

$

0.11

 

 

$

0.05

 

 

$

0.16

 

 

$

0.06

 

Weighted average common shares outstanding - basic and diluted

7,877,278

 

 

7,877,278

 

 

7,877,278

 

 

7,877,278

 

 


Contacts

Jennifer Golembeske
212-520-2300
jgolembeske@steelpartners.com