On April 18, the home building materials company, ToughBuilt Industries Inc. (TBLT) declared record 2021 financial results. Consequently, the stock rebounded and rallied big in the after-hours to add a nice 45.13%. Thus, TBLT was trading at a price of $0.2129 per share at a super heavy volume of 22.86 million in the session.
TBLT’s 2021 Financials
The company’s 2021 financial results marked a stark increase of 77.6% YOY in sales for the year while the ending quarter’s sales grew by 105%. Recurring orders in addition to new customers and new products had a revenues total of $70.0 million for the year. Moreover, the final quarter revenues stood at $24.6 million.
The gross profit for the year also showed great improvement with the figure standing at $19.1 million against the previous year’s $12.9 million. But on the other hand, industry-wide supply chain disruptions impacted gross profit margins due to historically high shipping costs along with increased materials costs. Hence, the gross profit margin was 27.2% against the prior year’s 32.6%.
Furthermore, the increased shipping costs along with marketing and advertising costs resulted in increased operating expenses of $58.4 million for the year. Comparatively, the same was $27.3 million in fiscal 2020.
Therefore, the net loss for the year was $37.5 million with a per-share loss standing at $0.37. The comparative figures were $18.6 million and $0.68 a share in 2020.
Industry Woes
The home building industry has been having a tough time lately. Barely recovering from the impact of Covid-19, the industry has been under the woes of global supply chain constraints. Added to this, the Russian invasion of Ukraine has commodities like oil and metals surging up and thus causing a mammoth increase in their prices. Ultimately, this has caused a spike in shipping costs in addition to materials costs. Cherry on top, the Federal Reserve’s tightening monetary policy with higher interest rates for curbing inflation has not been good either.
But the extreme supply-demand imbalance is also expected to dampen the hit to activity from higher rates.
At the same time, things are expected to start easing this year with supply chain shortages and price pressures calming down a notch.
TBLT’s Outlook
Despite the numerous woes of the industry, the company proved its potential and efforts by reporting mammoth growth in sales. Currently, TBLT is planning to launch up to 10 new products in 2022. Thus, with possible ease beginning in the market this year, and new products in the plan, the company expects another year of growth.
