Pompano Beach, FL (GLOBE NEWSWIRE) — Brownie’s Marine Group, Inc. (OTCQB: BWMG), a leading developer, manufacturer and distributor of tankless dive equipment and high-pressure air and industrial compressors in the marine industry, today announced results for the fiscal first quarter and three months ending March 31, 2021.
Chris Constable, CEO of Brownie’s Marine Group, Inc. stated, “Brownie’s Marine Group continued its strong performance in the first quarter with revenue increasing 49.8% year over year. Our company and subsidiaries are well positioned as we head into the summer months. Historically, because of the seasonality of our business, we have a tendency to lose money in Q4 and Q1 and have a much stronger financial performance in Q2 and Q3. As our revenues increase, we believe we can be much stronger in the seasonally less robust quarters, as evidenced by our much stronger Q1 this year versus last. The team has executed well at expanding our reach across our distribution channels, as well as seeking out new markets for our products. Brownie’s Third Lung division continues to show offseason improvement with year over year growth during the first quarter of 58%. BLU3 continues to grow as well, increasing 134% during that same period. The company has recently focused on reaching the consumer directly, and those efforts have yielded a 162% increase in direct-to-consumer sales with Brownie’s Third Lung, as well as a 154% increase in direct-to-consumer revenues for BLU3, across both Amazon.com and the BLU3 website for first quarter 2021 as compared to the same quarter in 2020. We are also seeing improvements in Dealer revenue with a 25% increase for Brownie’s Third Lung and a 127% increase for BLU3.”
1st Fiscal Quarter and YTD Highlights
- Net Revenues increased 49.8% to $0.95 million versus $0.63 million last year;
- Adjusted Net loss for Q1-2021 was reduced by 50.7% as compared to the same quarter last year; and
- At the close of the first quarter, cash and cash equivalents totaled $343,900, and the Company had a working capital surplus of $733,700.
Select Financial Metrics: Fiscal 1st Quarter and Three Months Ended March 31, 2021 Comparisons
|Total Net Revenues||$||950.8||$||634.80||49.78||%|
|Legacy SSA Products – Brownies Third Lung||$||466.10||$||294.10||58.48||%|
|High Pressure Gas Systems – LW America’s||$||150.10||$||198.20||-24.27||%|
|Ultra-Portable Tankless Dive Systems – Blu3||$||334.60||$||142.50||134.81||%|
|Operating Income (loss)||$||(447.20||)||$||(290.80||)||53.78||%|
|Net Income (loss)||$||(441.00||)||$||(296.70||)||48.63||%|
|Adjusted Net Income (loss)||$||(97.50||)||$||(197.80||)||-50.71||%|
|NM = not measurable/meaningful|
Select Segment Metrics: Fiscal 1st Quarter and Three Months Ended March 31, 2021 Comparisons
|Percentage Change Q1-21 vs Q1-20|
|Legacy SSA Products – Brownie’s Third Lung||Ultra-Portable Tankless Dive Systems – Blu3||Total Company|
|Total Net Revenues||58.5||%||134.9||%||49.8||%|
|Direct to Consumer Revenue-Website & Amazon||162.3||%||138.6||%||75.7||%|
Robert M. Carmichael, President and Chairman of the Board added, “We are anticipating a very busy summer for Brownie’s Marine Group, as COVID restrictions ease and families make returning to water activities a priority. Our family of subsidiaries will continue to innovate and bring best in class products to the marketplace. We look forward to BLU3’s introduction of the Nomad this year and anticipate significant traction in the marketplace around launch.”
Non-GAAP Financial Measures
This press release includes certain financial measures that exclude the impact of certain items and therefore have not been calculated in accordance with U.S. generally accepted accounting principles (“GAAP”). We report adjusted net income (loss) to measure our overall results because we believe it better reflects our net results by excluding the impact of non-cash equity-based compensation. We believe the presentation of adjusted net income (loss) enhances our investors’ overall understanding of the financial performance of our business.
We believe that investors should have access to the same set of tools that we use in analyzing our results. This non-GAAP measure should be considered in addition to results prepared in accordance with GAAP but should not be considered a substitute for or superior to GAAP results.
The following is an unaudited reconciliation of adjusted net income (loss) to net income (loss) for the periods presented:
|Three Months Ended March 31,|
|Net income (loss)||$||(440,981||)||$||(296,693||)|
|Stock issued for services||$||125,000||$||97,570|
|Stock-based compensation incentive bonus shares issued to CEO and employees||–||$||1,280|
|Stock-based compensation – options||$||218,505|
|Adjusted net income (loss)||$||(97,476||)||$||(197,843||)|
About Brownie’s Marine Group
Brownie’s Marine Group, Inc., is the parent company to a family of innovative brands with a unique concentration in the industrial, and recreational diving industry. The Company, together with its subsidiaries, designs, tests, manufactures, and distributes recreational hookah diving, yacht-based scuba air compressors and nitrox generation systems, and scuba and water safety products in the United States and internationally. The Company has three subsidiaries: Trebor Industries, Inc., founded in 1981, dba as “Brownie’s Third Lung”; BLU3, Inc.; and Brownie’s High-Pressure Services, Inc., dba LW Americas. The Company is headquartered in Pompano Beach, Florida.
For more information, visit: www.BrowniesMarineGroup.com.
Safe Harbor Statement
This press release may contain forward looking statements which are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially from those anticipated or expected. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors. Stockholders and potential investors should not place undue reliance on these forward-looking statements. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements in this report are reasonable, we cannot assure stockholders and potential investors that these plans, intentions or expectations will be achieved. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. Except to the extent required by law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, a change in events, conditions, circumstances or assumptions underlying such statements, or otherwise. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 as filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2021, and our other periodic and quarterly filings with the SEC.