iGo Reports Fourth Quarter Financial Results

iGo, Inc. (OTC PINK: IGOI) today announced operating results for the fourth quarter and year ended December 31, 2019.

Financial Overview

Fourth quarter of 2019 compared with fourth quarter of 2018

  • Revenue for the fourth quarter of 2019 was $14.6 million, as compared to revenue of $5.0 thousand in the same period of the prior year.
  • Net income was $689.4 thousand, or $0.09 per share, for the fourth quarter of 2019, as compared to a net loss of $434.0 thousand, or $0.15 per share, in the same period of the prior year.

Year ended December 31, 2019 compared with year ended December 31, 2018

  • Revenue for year ended December 31, 2019 was $59.4 million, as compared to $14.0 thousand in 2018.
  • Net income was $1.0 million, or $0.13 per share, for the year ended December 31, 2019, as compared to a net loss of $1.2 million, or $0.42 per share, in 2018.

On December 31, 2018, iGo completed the acquisition of Kasco, LLC in a share contribution transaction under which Kasco became a wholly-owned subsidiary of iGo. Results for the quarter and year ended December 31, 2019 reflect the impacts of this acquisition.

Prioritizing People

The Company has implemented a variety of measures to promote the health and safety of its employees and their families during the COVID-19 pandemic. These measures include business travel restrictions, remote work capabilities, social distancing practices, increased cleaning frequency and thoroughness, temperature screenings, and quarantine protocols. The Company's practices and policies are informed by recommendations from public health authorities, such as the Centers for Disease Control and Prevention and the World Health Organization.

Financial Position and Liquidity

Our management team is working closely with customers to maintain visibility of market developments. The Company continually aligns its resources as customer needs and market conditions change. The Company has initiated cost reduction actions, including hiring freezes, staffing and force reductions, and salary reductions to mitigate the financial impact of the COVID-19 pandemic. The Company continues its focus on cash management and liquidity, which includes the elimination of discretionary spending and strict approvals for capital expenditures.

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)

 

 

 

 

 

December 31, 2019

 

December 31, 2018

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,687

 

 

$

1,885

 

Accounts receivable, net

7,731

 

 

9,005

 

Inventories

4,844

 

 

5,552

 

Prepaid expenses and other current assets

1,012

 

 

832

 

Total current assets

15,274

 

 

17,274

 

Property, plant and equipment, net

11,498

 

 

10,368

 

Operating lease right-of-use assets

1,225

 

 

 

Intangible assets, net

1,070

 

 

1,227

 

Deferred tax assets

1,408

 

 

1,929

 

Total Assets

$

30,475

 

 

$

30,798

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,974

 

 

$

2,979

 

Accrued expenses

3,051

 

 

3,591

 

Short-term debt

570

 

 

441

 

Payable to related parties

301

 

 

 

Operating lease liabilities

478

 

 

 

Total current liabilities

7,374

 

 

7,011

 

Long-term debt

7,600

 

 

10,000

 

Long-term operating lease liabilities

734

 

 

 

Deferred tax liabilities

 

 

197

 

Other non-current liabilities

1,928

 

 

1,929

 

Total Liabilities

17,636

 

 

19,137

 

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

(867

)

 

(1,003

)

Capital deficit

(20,608

)

 

(20,608

)

Retained earnings

34,235

 

 

33,193

 

Total Stockholders' Equity

12,839

 

 

11,661

 

Total Liabilities and Stockholders' Equity

$

30,475

 

 

$

30,798

 

 

iGo, Inc.

Consolidated Statements of Operations

(unaudited)

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

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

2019

 

2018

 

2019

 

2018

Revenue

$

14,585

 

 

$

5

 

 

$

59,413

 

 

$

14

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Cost of goods sold

7,523

 

 

 

 

30,255

 

 

 

Selling, general and administrative expenses

6,085

 

 

461

 

 

25,963

 

 

1,323

 

Interest expense

86

 

 

 

 

443

 

 

 

Gain from asset dispositions

(46

)

 

 

 

(231

)

 

 

Asset impairment charges

 

 

 

 

659

 

 

 

Restructuring and other charges

213

 

 

 

 

906

 

 

 

Other income, net

(76

)

 

(22

)

 

(87

)

 

(67

)

Total costs and expenses

13,785

 

 

439

 

 

57,908

 

 

1,256

 

Income (loss) before income taxes

800

 

 

(434

)

 

1,505

 

 

(1,242

)

Income tax provision

111

 

 

 

 

463

 

 

 

Net income (loss)

$

689

 

 

$

(434

)

 

$

1,042

 

 

$

(1,242

)

Net income (loss) per common share - basic and diluted

$

0.09

 

 

$

(0.15

)

 

$

0.13

 

 

$

(0.42

)

Weighted average common shares outstanding - basic and diluted

7,877,278

 

 

2,962,742

 

 

7,877,278

 

 

2,933,921