Jul 3, 2021   SOURCE: BusinessWire

iGo Reports Fourth Quarter Financial Results

iGo, Inc. (OTC PINK: IGOI) today announced operating results for the fourth quarter and year ended December 31, 2020.

Financial Overview

Fourth quarter of 2020 compared with fourth quarter of 2019

  • Revenue for the fourth quarter of 2020 was $16.4 million, an increase of 12%, as compared to revenue of $14.6 million in the same period of the prior year.
  • Net income was $1.4 million, or $0.18 per share, for the fourth quarter of 2020, as compared to a net income of $0.7 million, or $0.09 per share, in the same period of the prior year.

Year Ended December 31, 2020 compared with year ended December 31, 2019

  • Revenue for year ended December 31, 2020 was $62.7 million, an increase of 6%, as compared to $59.4 million in 2019.
  • Net income was $4.4 million, or $0.56 per share, for the year ended December 31, 2020, as compared to net income of $1.0 million, or $0.13 per share, in 2019.

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. The impact on the Company's business beyond 2020 will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic, the disruption to the demand for our businesses' products and services, and the impact of the global business and economic environment on liquidity and the availability of capital, all of which are uncertain and cannot be predicted. To help mitigate the financial impact of the COVID-19 pandemic, the Company initiated cost reduction actions, including hiring freezes, staffing and force reductions, salary reductions, bonus payment deferrals, and temporary 401(k) match suspension. The Company has fully restored the prior salary reductions; however, management continues its focus on cash management and liquidity, which includes the elimination of discretionary spending, aggressive working capital management, and strict approvals for capital expenditures. The Company will evaluate further actions if circumstances warrant.

At December 31, 2020, the Company had carryforwards of federal net operating losses (“NOLs”) of approximately $113 million available to reduce future federal taxes. Of the Company’s Federal NOLs, $111 million were incurred prior to 2018 and may expire if unused by 2037, and $1.8 million were incurred in 2018 and can be carried forward indefinitely subject to an 80% taxable income annual limitation. The Company has a valuation allowance to reserve its deferred tax asset associated with the NOLs of approximately $105 million as of December 31, 2020. The Company’s Federal NOLs may be subject to an Internal Revenue Code Section 382 limitation, and as a result, may not be available to reduce taxable income.

About the Company

The Company was previously a provider of mobile accessories and is evaluating alternative strategies for uses of its capital and the iGo brand. The Company's Kasco subsidiary (www.kasco.com) 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. The Company 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, the Company 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

(in thousands, except common shares)

 

 

 

 

 

December 31, 2020

 

December 31, 2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,427

 

 

$

1,687

 

Accounts receivable - net of allowance for doubtful accounts of $464 and $265 at December 31, 2020 and 2019, respectively

7,208

 

 

7,731

 

Inventories

6,342

 

 

4,844

 

Prepaid expenses and other current assets

1,366

 

 

1,012

 

Total current assets

17,343

 

 

15,274

 

Property, plant and equipment, net

12,085

 

 

11,498

 

Operating lease right-of-use assets

758

 

 

1,225

 

Intangible assets, net

913

 

 

1,070

 

Deferred tax assets

1,343

 

 

1,408

 

Total Assets

$

32,442

 

 

$

30,475

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

4,806

 

 

$

2,974

 

Income taxes payable

608

 

 

—

 

Accrued expenses

3,371

 

 

3,051

 

Short-term debt

—

 

 

570

 

Payable to related parties

392

 

 

301

 

Operating lease liabilities

467

 

 

478

 

Total current liabilities

9,644

 

 

7,374

 

Long-term debt

3,000

 

 

7,600

 

Long-term income taxes payable

382

 

 

—

 

Deferred tax liabilities

199

 

 

—

 

Long-term operating lease liabilities

280

 

 

734

 

Other non-current liabilities

1,343

 

 

1,928

 

Total Liabilities

14,848

 

 

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 at December 31, 2020 and 2019

79

 

 

79

 

Accumulated other comprehensive loss

(537

)

 

(867

)

Capital deficit

(20,608

)

 

(20,608

)

Retained earnings

38,660

 

 

34,235

 

Total Stockholders' Equity

17,594

 

 

12,839

 

Total Liabilities and Stockholders' Equity

$

32,442

 

 

$

30,475

 

 

iGo, Inc.

Consolidated Statements of Operations

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

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

 

December 31,

 

2020

 

2019

 

2020

 

2019

 

(Unaudited)

 

 

 

 

Revenue

$

16,356

 

 

$

14,585

 

 

$

62,716

 

 

$

59,413

 

 

 

 

 

 

 

 

 

Costs and expenses

 

 

 

 

 

 

 

Cost of goods sold

8,397

 

 

7,523

 

 

32,327

 

 

30,255

 

Selling, general and administrative expenses

6,452

 

 

6,085

 

 

25,455

 

 

25,963

 

Interest expense

29

 

 

86

 

 

200

 

 

443

 

Gain from asset dispositions

(30

)

 

(46

)

 

(119

)

 

(231

)

Asset impairment charges

—

 

 

—

 

 

—

 

 

659

 

Restructuring and other charges

28

 

 

213

 

 

—

 

 

906

 

Other income, net

(35

)

 

(76

)

 

(194

)

 

(87

)

Total costs and expenses

14,841

 

 

13,785

 

 

57,669

 

 

57,908

 

Income before income taxes

1,515

 

 

800

 

 

5,047

 

 

1,505

 

Income tax provision

69

 

 

111

 

 

622

 

 

463

 

Net income

$

1,446

 

 

$

689

 

 

$

4,425

 

 

$

1,042

 

Net income per common unit - basic and diluted

$

0.18

 

 

$

0.09

 

 

$

0.56

 

 

$

0.13

 

Weighted average common shares outstanding - basic and diluted

7,877,278

 

 

7,877,278

 

 

7,877,278

 

 

7,877,278