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CST: 15/10/2019 08:20:59   

Schmitt Announces Positive First Quarter 2020 Operating Results and Annual Shareholders Meeting

6 Days ago

PORTLAND, Ore., Oct. 08, 2019 (GLOBE NEWSWIRE) -- Schmitt Industries, Inc. (NASDAQ: SMIT) (the “Company” or “Schmitt”) today announced its operating results for the first quarter of Fiscal 2020.

Highlights of the quarter ended August 31, 2019:

  • Consolidated revenue decreased $98,568, or 2.9%, to $3,341,885 for the three months ended August 31, 2019 from $3,440,453 for three months ended August 31, 2018, attributed to a decrease in Measurement segment revenue.
  • Balancer segment revenue increased $52,775, or 2.4%, to $2,247,107 for the three months ended August 31, 2019 as compared to $2,194,332 for the three months ended August 31, 2018, attributed to growth in the North American market.
  • Measurement segment revenue decreased $151,343, or 12.1%, to $1,094,778 for the three months ended August 31, 2019 as compared to $1,246,121 for the three months ended August 31, 2018, attributed to a decrease in Xact product revenue. Xact’s services in the “Internet of Things” environment continued to grow with monitoring revenue increasing 16.3% to $367,841 for the three months ended August 31, 2019 as compared to $316,173 for the three months ended August 31, 2018.
  • Operating expenses decreased $162,426, or 11.2%, to $1,291,174 for the three months ended August 31, 2019 from $1,453,600 for the three months ended August 31, 2018.
  • Net income (loss) was $169,808, or $0.04 per fully diluted share, for the three months ended August 31, 2019 as compared to net income (loss) of $(211,819), or $(0.05) per fully diluted share, for the three months ended August 31, 2018.

Michael Zapata, Chief Executive Officer and President, commented, “I would like to thank management and the entire Schmitt team for their commitment and hard work as we have implemented change these past nine months. The reorganization, which was announced December 2018, has led to our profitability and increased our cash flow position, with positive net income and earnings per share gains as we enter fiscal year 2020. While there is much to do, this quarter is one key step in the right direction and shows true improvement over prior practices.”

Schmitt’s 2019 Annual Meeting of Shareholders

Schmitt’s 2019 Annual Meeting of Shareholders will be held on December 5, 2019, in Portland, Oregon. The Company expects a record date of October 21, 2019, with an expected mailing date of November 4, 2019.

 
Summary data for the three months ended August 31, 2019 and 2018:
 
  Three Months Ended August 31,              
  2019   2018   Change ($)   Change (%)
Total net revenue $ 3,341,885     $ 3,440,453     $ (98,568 )   (2.9 %)
Balancer segment   2,247,107       2,194,332       52,775     2.4 %
Measurement segment   1,094,778       1,246,121       (151,343 )   (12.1 %)
                             
Gross margin   46.7 %     38.9 %              
                             
Operating expenses $ 1,291,174     $ 1,453,600       (162,426 )   (11.2 %)
                             
Net income (loss) $ 169,808     $ (211,819 )     381,627        
                             
Net income (loss) per fully diluted share $ 0.04     $ (0.05 )              
                             

About Schmitt Industries

Schmitt Industries, Inc. (“Schmitt” or the “Company”), founded in 1987, designs, manufactures and sells high precision test and measurement products, solutions and services through our SBS®, Acuity® and Xact® product lines, which are reported in two business segments. In the Balancer segment, our SBS product line provides computer-controlled vibration detection, balancing and process control systems for the worldwide machine tool industry. In the Measurement segment, our Acuity line provides laser and white light sensor distance measurement and dimensional sizing products, and our Xact line provides ultrasonic-based remote tank monitoring products and related monitoring revenues for markets in the Internet of Things environment.

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. A complete discussion of the risks and uncertainties that may affect Schmitt’s business, including the business of its subsidiary, is included in “Risk Factors” in the Company’s most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.

For further information regarding risks and uncertainties associated with the Company’s business, please refer to Schmitt’s SEC filings, including, but not limited to, its Forms 10-K, 10-Q and 8-K.

The forward-looking statements in this release speak only as of the date on which they were made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release, or for changes to this document made by wire services or internet service providers.

   
For more information contact: Michael R. Zapata, President and CEO
Ann M. Ferguson, CFO and Treasurer
(503) 227-7908 or visit our web site at www.schmitt-ind.com


SCHMITT INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
 
  August 31, 2019   May 31, 2019
ASSETS
Current assets          
Cash and cash equivalents $ 1,592,847     $ 1,411,732  
Restricted cash   54,895       55,703  
Accounts receivable, net   2,004,159       1,996,240  
Inventories   5,019,109       5,019,044  
Prepaid expenses   155,405       150,975  
Total current assets   8,826,415       8,633,694  
           
Property and equipment, net   817,478       839,374  
           
Other assets          
Intangible assets, net   366,039       392,185  
Operating lease right-of-use assets   102,767       -  
TOTAL ASSETS $ 10,112,699     $ 9,865,253  
 
LIABILITIES & STOCKHOLDERS’ EQUITY
Current liabilities          
Accounts payable $ 505,496     $ 496,362  
Accrued commissions   173,491       200,116  
Accrued payroll liabilities   171,768       239,476  
Customer deposits and prepayments   197,982       188,236  
Other accrued liabilities   127,635       218,268  
Income taxes payable   14,134       491  
Current portion of long-term liabilities   21,258       20,828  
Current portion of operating lease liabilities   32,721       -  
Total current liabilities   1,244,485       1,363,777  
           
Long-term liabilities   23,065       28,543  
Long-term operating lease liabilities   70,046       -  
Total liabilities   1,337,596       1,392,320  
           
Stockholders’ equity          
Common stock, no par value, 20,000,000 shares authorized, 4,032,878 shares      
issued and outstanding at August 31, 2019 and May 31, 2019   13,317,453       13,245,439  
Accumulated other comprehensive loss   (467,479 )     (527,827 )
Accumulated deficit   (4,074,871 )     (4,244,679 )
Total stockholders’ equity   8,775,103       8,472,933  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 10,112,699     $ 9,865,253  


SCHMITT INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED AUGUST 31, 2019 AND 2018
(UNAUDITED)
 
  Three Months Ended August 31,
  2019   2018
           
Net revenue $ 3,341,885     $ 3,440,453  
Cost of revenue   1,781,547       2,100,655  
Gross profit   1,560,338       1,339,798  
           
Operating expenses:          
General, administration and sales   1,279,007       1,405,363  
Research and development   12,167       48,237  
Total operating expenses   1,291,174       1,453,600  
           
Operating income (loss)   269,164       (113,802 )
           
Other income (expense), net   (83,388 )     (91,651 )
           
Income (loss) before income taxes   185,776       (205,453 )
           
Provision for income taxes   15,968       6,366  
           
Net income (loss) $ 169,808     $ (211,819 )
           
Net income (loss) per common share, basic $ 0.04     $ (0.05 )
           
Weighted average number of common shares, basic   4,032,878       3,994,545  
           
Net income (loss) per common share, diluted $ 0.04     $ (0.05 )
           
Weighted average number of common shares, diluted   4,059,279       3,994,545  
           

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