Bethlehem, P.A., June 30, 2020 (GLOBE NEWSWIRE) — Edison Nation, Inc. (NASDAQ:EDNT), a multifaceted ecosystem that fosters innovation and drives IP, media and consumer products, today announced results for the first quarter ended March 31, 2020.
Company HighlightsReaffirms 2020 revenue guidance of $34 million.First quarter in company history with positive Earnings Per Share (“EPS”). EPS was $0.16 compared to a negative $0.25 for the comparable period.Appointment of Media Industry Leader Mary Ann Halford to the Company’s Board of DirectorsRelaunch of Edison Nation Medial division (“EN Medical), distributing personal protective equipment (“PPE”) and ancillary medical supplies to hospitals, government agencies, and distributors.Creation of Global Clean Solutions, producing proprietary sanitizer stands with subscription-based refills of our in-house sanitizer, Purple Mountain Clean.4 Keeps Roses has developed Artist Versions of our Single Rose that will be rolled out for Day of The Dead and Halloween this fall, available for sale at 7-Eleven and other convenience stores nationwide.Common stock shares outstanding of 9,210,401 at March 31, 2020.Further balance sheet improvement with the sale of Cloud B, Inc.Acquisition of HMNRTH, a leading producer of cannabidiol health and wellness products.Beta version of ENovation ENgine, a SaaS platform to engage early stage businesses and entrepreneurs.Expansion of Pressix licensing agreement, and licensing of Table-to-Go from Edison Nation community.Return of Emmy-Award winning television show, Everyday Edisons, streaming on Crackle.First Quarter 2020 Financial Summary
RevenueFirst quarter 2020 revenue decreased to $3.6 million, compared to $5.7 million in the first quarter of 2019. The decrease was primarily the result of a decrease in business operations due to the COVID-19 pandemic in China and the US. The full impact of the COVID-19 outbreak to the Company’s operations remains uncertain. Some of our larger customers, such as amusement parks remain closed or operating in a limited capacity. After operating at lower than planned production levels during most of the first quarter due to COVID-19, the Company’s third-party manufacturing facilities in China are currently operating at planned capacity for this time of year. Manufacturing and warehouse partners outside of China are operating at varying levels of productivity depending on local government and safety considerations, with some markets operating at lower than normal production levels while other facilities have been closed entirely. The COVID-19 situation continues to be fluid, but we currently expect all manufacturing facilities to reopen in the third quarter, based upon our understanding of local governments’ directions at this time.Net Income (Loss)Net income in the first quarter of 2020 was $1.2 million, or $0.16 per basic and $0.13 per diluted share, compared to a net loss of $1.4 million, or ($0.25) per basic and diluted share in the first quarter of 2019.Gain on divestiture of $4,911,760 related to the deconsolidation of liabilities in connection with the sale of Cloud B, Inc. on February 17, 2020. The table below shows the assets and liabilities that the Company was relieved of in the transaction:Adjusted EBITDAAdjusted EBITDA, a non-GAAP measure, totaled negative $0.9 million in the first quarter of 2020, compared to negative $0.2 million in the first quarter of 2019.See below, under the heading “Use of Non-GAAP Financial Information,” for a discussion of Adjusted EBITDA and a reconciliation of such measure to the most comparable measure calculated under U.S. generally accepted accounting principles (“GAAP”).Management CommentaryChris Ferguson, Chief Executive, commented, “The beginning of 2020 has been a testament to the ingenuity and capacity for innovation within the Edison Nation team and community, and allows us to confidently reaffirm 2020 revenue guidance of $34mm. We are looking forward to a year of continued growth and expansion of our product lines and related media and SaaS efforts.”About Edison Nation, Inc.Edison Nation, Inc. is a multifaceted ecosystem which fosters innovation, driving IP, media and innovative consumer products. Edison Nation offers innovation sourcing, design, sales, fulfillment and shipping services. The Edison Nation Innovation Platform sources innovative ideas for internal launch or license to brand partners. Edison Nation hopes to leverage its television property “Everyday Edisons” to become the recognized leader in the innovator community.For more information, please visit www.edisonnation.com.Use of Non-GAAP Financial InformationEBITDA and Adjusted EBITDA is a financial measure that is not calculated in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Management believes that because Adjusted EBITDA excludes (i) certain non-cash expenses (such as depreciation, amortization and stock-based compensation) and (ii) expenses that are not reflective of the Company’s core operating results over time (such as restructuring costs, litigation or dispute settlement charges or gains, and transaction-related costs), this measure provides investors with additional useful information to measure the Company’s financial performance, particularly with respect to changes in performance from period to period. Edison Nation management uses EBITDA and Adjusted EBITDA (a) as a measure of operating performance; (b) for planning and forecasting in future periods; and (c) in communications with the Company’s Board of Directors concerning Edison Nation’s financial performance. The Company’s presentation of EBITDA and Adjusted EBITDA are not necessarily comparable to other similarly titled captions of other companies due to different methods of calculation and should not be used by investors as a substitute or alternative to net income or any measure of financial performance calculated and presented in accordance with U.S. GAAP. Instead, management believes EBITDA and Adjusted EBITDA should be used to supplement the Company’s financial measures derived in accordance with U.S. GAAP to provide a more complete understanding of the trends affecting the business.Forward-Looking StatementsThis press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing the Company’s views as of any subsequent date. Such forward-looking statements are based on information available to the Company as of the date of this release and involve a number of risks and uncertainties, some beyond the Company’s control, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including consumer, regulatory and other factors affecting demand for the Company’s products, any difficulty in marketing the Company’s products in global markets, competition in the market for consumer products and inability to raise capital to fund operations and service the Company’s debt. Additional information that could lead to material changes in the Company’s performance is contained in its filings with the SEC. The Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of new information, future events or otherwise.
Edison Nation, Inc. (formerly known as Xspand Products Lab, Inc.) and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETSEdison Nation, Inc. (formerly known as Xspand Products Lab, Inc.) and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSEdison Nation, Inc. (formerly known as Xspand Products Lab, Inc.) and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSInvestor Relations:
Aimee Carroll, Edison Nation, Inc.
Phone: (484) 893-0060
Email: [email protected]

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