Press release

iGo Reports First Quarter Financial Results

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iGo, Inc. (OTC PINK: IGOI) today announced operating results for the first quarter ended March 31, 2020.

Financial Overview

First quarter of 2020 compared with first quarter of 2019

  • Revenue for the first quarter of 2020 was $15.2 million, as compared to revenue of $15.6 million in the same period of the prior year.
  • Net income was $0.4 million, or $0.05 per share, for the first quarter of 2020, as compared to net income of $58,000, or $0.01 per share, in the same period of the prior year.

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)

 

 

 

 

 

March 31, 2020

 

December 31, 2019

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

3,247

 

 

$

1,687

 

Accounts receivable, net

7,878

 

 

7,731

 

Inventories

4,681

 

 

4,844

 

Prepaid expenses and other current assets

1,104

 

 

1,012

 

Total current assets

16,910

 

 

15,274

 

Property, plant and equipment, net

11,185

 

 

11,498

 

Operating lease right-of-use assets

1,091

 

 

1,225

 

Intangible assets, net

1,029

 

 

1,070

 

Deferred tax assets

1,408

 

 

1,408

 

Total Assets

$

31,623

 

 

$

30,475

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

3,748

 

 

$

2,974

 

Accrued expenses

3,348

 

 

3,051

 

Short-term debt

279

 

 

570

 

Payable to related parties

869

 

 

301

 

Operating lease liabilities

460

 

 

478

 

Total current liabilities

8,704

 

 

7,374

 

Long-term debt

7,650

 

 

7,600

 

Long-term operating lease liabilities

620

 

 

734

 

Other non-current liabilities

1,928

 

 

1,928

 

Total Liabilities

18,902

 

 

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

79

 

 

79

 

Accumulated other comprehensive loss

(1,413)

 

 

(867)

 

Capital deficit

(20,608)

 

 

(20,608)

 

Retained earnings

34,663

 

 

34,235

 

Total Stockholders’ Equity

12,721

 

 

12,839

 

Total Liabilities and Stockholders’ Equity

$

31,623

 

 

$

30,475

 

iGo, Inc.

Consolidated Statements of Income

(unaudited)

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

 

 

 

Three Months Ended

 

March 31,

 

2020

 

2019

Revenue

$

15,196

 

 

$

15,623

 

 

 

 

 

Costs and expenses

 

 

 

Cost of goods sold

7,909

 

 

7,934

 

Selling, general and administrative expenses

6,594

 

 

7,535

 

Restructuring charges

(28)

 

 

—

 

Interest expense

76

 

 

121

 

Gain from asset dispositions

(30)

 

 

(77)

 

Other (income) loss, net

(37)

 

 

22

 

Total costs and expenses

14,484

 

 

15,535

 

Income before income taxes

712

 

 

88

 

Income tax provision

284

 

 

30

 

Net income

$

428

 

 

$

58

 

Net income per common share – basic and diluted

$

0.05

 

 

$

0.01

 

Weighted average common shares outstanding – basic and diluted

7,877,278

 

 

7,877,278