TOMI Environmental Solutions, Inc. Reports 170% Sequential Growth in Second Quarter Revenue With Break Even EPS
Rhea-AI Summary
TOMI Environmental Solutions, Inc. (NASDAQ: TOMZ) reported 170% sequential growth in Q2 2024 revenue, reaching $3,013,000 with break-even EPS. The company achieved profitability with a net income of $30,000, compared to a net loss in Q2 2023. Key highlights include:
- Operating income of $122,000
- Gross margin improvement to 61.5%
- 8.6% year-over-year revenue growth
- Strong mobile equipment sales, accounting for over 60% of revenue
- 31% increase in BIT Solution sales compared to Q2 2023
- 130% growth in international revenue
TOMI's CEO, Dr. Halden Shane, attributed the growth to revitalized revenue and cost reduction initiatives. The company's focus on expanding business development and improving shareholder value has led to nearly matching the entire 2023 mobile equipment sales in just the first half of 2024.
Positive
- 170% sequential quarterly revenue growth to $3,013,000 in Q2 2024
- Achieved profitability with net income of $30,000 in Q2 2024
- Operating profit of $122,000 compared to a loss in Q2 2023
- Gross margin improved to 61.5% from 61.3% year-over-year
- Mobile equipment sales accounted for over 60% of Q2 2024 revenue
- BIT Solution sales increased by 31% compared to Q2 2023
- International revenue grew by 130% year-over-year
- Nearly matched total mobile equipment sales of entire 2023 in first half of 2024
- Implemented cost reduction initiatives, lowering operating expenses by 3% year-over-year
Negative
- Net loss of $1,280,000 for the six months ended June 30, 2024
- Cash and cash equivalents decreased to $709,000 as of June 30, 2024
News Market Reaction – TOMZ
On the day this news was published, TOMZ declined 8.23%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Company Reports Operating Income of
$122,000 And Positive Net Income - - Performance Driven By Growth in International, Mobile Equipment and BIT Solutions Sales -
FREDERICK, Md., Aug. 01, 2024 (GLOBE NEWSWIRE) -- TOMI Environmental Solutions, Inc.® (“TOMI”) (NASDAQ: TOMZ), a global company specializing in disinfection and decontamination utilizing its premier Binary Ionization Technology (BIT) platform through its SteraMist brand of products, today announced its second quarter 2024 results.
TOMI Chief Executive Officer, Dr. Halden Shane, stated, “In the second quarter of 2024, we achieved profitability and delivered improved financial results through revitalized revenue growth. These efforts contributed to a quarterly profit of
“We’re off to strong start in 2024. For the first time since the end of 2020, our outlier year due to the COVID-19 pandemic, we surpassed
Financial Results for the three months ended June 30, 2024, compared to June 30, 2023
- Total net revenue was
$3,013,000 compared to$2,775,000 . - Gross margin was
61.5% compared to61.3% . - Operating profit was
$122,000 , compared to an operating loss of ($89,000) . - Net income was
$30,000 or$0.00 per basic and diluted share, compared to a net loss ($89,000) or ($0.00) per basic and diluted share. - Adjusted EBITDA was
$343,000 compared to$2,000 in the same prior year period. A table reconciling EBITDA to the appropriate GAAP financial measure is included with the Company’s financial information below
Financial Results for the six months ended June 30, 2024, compared to June 30, 2023
- Total net revenue was
$4,127,000 compared to$4,357,000 . - Gross margin was
61.2% compared to60.6% . - Operating loss was (
$1,105,000) , compared to ($1,277,000) . - Net loss was (
$1,280,000) or ($0.06) per basic and diluted share, compared to a net loss ($1,276,000) or ($0.06) per basic and diluted share. - Adjusted EBITDA was (
$806,000) compared to ($939,000) in the same prior year period. A table reconciling EBITDA to the appropriate GAAP financial measure is included with Company’s financial information below
Balance sheet highlights as of June 30, 2024
- Cash and cash equivalents were approximately
$709,000 - Working capital was
$6.8 million . - Shareholders’ equity was
$7.3 million .
Recent Business Highlights:
170% sequential quarterly revenue growth for the three months ended June 30, 2024, compared to the three months ended March 31, 2024- With increased revenue and lower operating expenses, we reported a profit of approximately
$30,000 . This marks a significant milestone for the company and a major improvement compared to both the first quarter of this year and the second quarter of 2023. - Overall sales volume and sales order activity for the first and second quarters of 2024 amounted to
$5,100,000 which consisted of approximately$4,100,000 in recognized revenue and an approximate sales backlog of$1,000,000 at the end of the quarter. - Second quarter BIT Solution sales increased by approximately
31% compared to the second quarter of 2023 and by171% sequentially over the first quarter of 2024. - Our second quarter international revenue grew by
130% , driven by new customers in Canada, Mexico, the Philippines, and the United Arab Emirates, compared to the same period in 2023. - As of June 30, 2024, we have nearly matched the total number of mobile equipment sales achieved during the entire calendar year of 2023.
- During the second quarter, management implemented cost reduction initiatives that lowered our operating expenses by
3% compared to the same period last year. Additionally, our operating expenses in the second quarter of 2024 decreased by9% compared to the first quarter of 2024 - To expand our reach and increase our presence in the western United States via our iHP Service offerings, we have partnered with EMAQ. EMAQ has invested over a million dollars in SteraMist iHP equipment and will serve as our partner to expand iHP services in this region.
- In Q2 2024, we received an order for our CES system from a global leader in advanced laboratory services. This customer added two more Environment Systems to their existing set of two, along with a seven-applicator iHP Custom Engineered System (CES), which is scheduled for installation by the end of the year.
- We maintained an active focus on digital marketing initiatives and business development plans with existing customers. To optimize our budget, we reduced our participation in tradeshows and redirected resources towards more effective lead generation strategies such as referrals and references.
- We are steadily increasing our presence in the food safety marketplace and are currently conducting numerous feasibility studies with both small and large companies.
- On April 3, 2024, we announced the company has received the Gold Safety Award from Highwire. The award is presented to TOMI in recognition of the Company achieving a score of between 85-94 on the Highwire Safety Assessment. Highwire’s Safety Assessment reviews a company’s historic and current safety performance. The program provides a thorough, objective, and consistent evaluation of company performance so clients and contractors can identify, monitor, and mitigate risks more effectively. The results provide a strong indicator of how a contractor values safety and serve as a reliable predictor of future performance.
Conference Call Information
TOMI will hold a conference call to discuss second Quarter 2024 results at 4:30 p.m. ET today, August 1, 2024.
To participate in the call by phone, dial (888) 506-0062 approximately five minutes prior to the scheduled start time and request the "TOMI Environmental Solutions second quarter earnings call” or provide the participant access code: 574947. International callers please dial (973) 528-0011. To access the live webcast or view the press release, please visit the Investor Relations section of the TOMI website or register at the following link: https://www.webcaster4.com/Webcast/Page/2262/50974.
A replay of the teleconference will be available until Thursday, August 15, 2024, and may be accessed by dialing (877) 481-4010. International callers may dial (919) 882-2331. Callers should use replay access code: 50974. A replay of the webcast will be available for at least 90 days on the company’s website, starting approximately one hour after the completion of the call.
TOMI™ Environmental Solutions, Inc.: Innovating for a safer world®
TOMI™ Environmental Solutions, Inc. (NASDAQ:TOMZ) is a global decontamination and infection prevention company, providing environmental solutions for indoor surface disinfection through the manufacturing, sales and licensing of its premier Binary Ionization Technology® (BIT™) platform. Invented under a defense grant in association with the Defense Advanced Research Projects Agency (DARPA) of the U.S. Department of Defense, BIT™ solution utilizes a low percentage Hydrogen Peroxide as its only active ingredient to produce a fog of ionized Hydrogen Peroxide (iHP™). Represented by the SteraMist® brand of products, iHP™ produces a germ-killing aerosol that works like a visual non-caustic gas. TOMI products are designed to service a broad spectrum of commercial structures, including, but not limited to, hospitals and medical facilities, cruise ships, office buildings, hotel and motel rooms, schools, restaurants, meat and produce processing facilities, military barracks, police and fire departments, and athletic facilities. TOMI products and services have also been used in single-family homes and multi-unit residences.
TOMI develops training programs and application protocols for its clients and is a member in good standing with The American Biological Safety Association, The American Association of Tissue Banks, Association for Professionals in Infection Control and Epidemiology, Society for Healthcare Epidemiology of America, America Seed Trade Association, and The Restoration Industry Association.
For additional information, please visit https://www.steramist.com or contact us at info@tomimist.com.
Forward-Looking Statements
This press release contain forward-looking statements that are based on current expectations, estimates, forecasts and projections of future performance based on management’s judgment, beliefs, current trends, and anticipated product performance. These forward-looking statements include, without limitation, our strategies to grow revenue and expand business development, financial performance and operating results for 2024; and our ability to generate lead and referral for sales. Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include, but are not limited to, our ability to acquire new customers and expands sales; our ability to maintain and manage growth and generate sales, our reliance on a single or a few products for a majority of revenues; the general business and economic conditions; and other risks as described in our SEC filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed by us with the SEC and other periodic reports we filed with the SEC. The information provided in this document is based upon the facts and circumstances known at this time. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements. All information provided in this press release is as of today’s date, unless otherwise stated, and we undertake no duty to update such information, except as required under applicable law.
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| June 30, 2024 (Unaudited) | December 31, 2023 | ||||||
| Cash and Cash Equivalents | $ | 709,110 | $ | 2,339,059 | |||
| Accounts Receivable - net | 3,663,862 | 2,429,929 | |||||
| Other Receivables | 164,150 | 164,150 | |||||
| Inventories | 4,281,614 | 4,627,103 | |||||
| Vendor Deposits | 126,185 | 29,335 | |||||
| Prepaid Expenses | 290,195 | 371,298 | |||||
| Total Current Assets | 9,235,116 | 9,960,874 | |||||
| Property and Equipment – net | 983,601 | 1,048,642 | |||||
| Other Assets: | |||||||
| Intangible Assets – net | 1,113,491 | 1,123,246 | |||||
| Operating Lease - Right of Use Asset | 434,607 | 467,935 | |||||
| Long Term Accounts Receivable - net | 206,240 | 206,240 | |||||
| Other Assets | 638,392 | 550,677 | |||||
| Total Other Assets | 2,392,730 | 2,348,098 | |||||
| Total Assets | $ | 12,611,447 | $ | 13,357,614 | |||
| | | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts Payable | $ | 1,714,489 | $ | 1,267,029 | |||
| Accrued Expenses and Other Current Liabilities | 512,829 | 675,491 | |||||
| Deferred Revenue | 57,192 | - | |||||
| Current Portion of Long-Term Operating Lease | 122,259 | 115,658 | |||||
| Total Current Liabilities | 2,406,769 | 2,058,178 | |||||
| Long-Term Liabilities: | |||||||
| Long-Term Operating Lease, Net of Current Portion | 579,715 | 642,527 | |||||
| Convertible Notes Payable, net of unamortized debt discount of | 2,329,254 | 2,298,015 | |||||
| Total Long-Term Liabilities | 2,908,969 | 2,940,542 | |||||
| Total Liabilities | 5,315,738 | 4,998,720 | |||||
| Commitments and Contingencies | |||||||
| Shareholders’ Equity: | |||||||
| Cumulative Convertible Series A Preferred Stock; | |||||||
| par value | |||||||
| and outstanding at June 30, 2024 and December 31, 2023, respectively | 638 | 638 | |||||
| Cumulative Convertible Series B Preferred Stock; | |||||||
| | |||||||
| and outstanding at June 30, 2024 and December 31, 2023, respectively | - | - | |||||
| Common stock; par value | |||||||
| 20,015,205 and 19,823,955 shares issued and outstanding | |||||||
| at June 30, 2024 and December 31, 2023, respectively | 200,152 | 199,240 | |||||
| Additional Paid-In Capital | 58,201,140 | 57,985,245 | |||||
| Accumulated Deficit | (51,106,221 | ) | (49,826,229 | ) | |||
| Total Shareholders’ Equity | 7,295,709 | 8,358,894 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 12,611,447 | $ | 13,357,614 | |||
| TOMI ENVIRONMENTAL SOLUTIONS, INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Sales, net | $ | 3,013,392 | $ | 2,774,699 | $ | 4,127,479 | $ | 4,356,871 | ||||||||
| Cost of Sales | 1,158,876 | 1,074,420 | 1,602,295 | 1,715,355 | ||||||||||||
| Gross Profit | 1,854,516 | 1,700,279 | 2,525,184 | 2,641,516 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Professional Fees | 84,327 | 111,660 | 282,326 | 248,845 | ||||||||||||
| Depreciation and Amortization | 76,554 | 90,560 | 154,475 | 179,336 | ||||||||||||
| Selling Expenses | 366,265 | 501,045 | 655,334 | 877,698 | ||||||||||||
| Research and Development | 61,614 | 73,728 | 129,585 | 144,248 | ||||||||||||
| Consulting Fees | 23,095 | 68,912 | 136,730 | 144,367 | ||||||||||||
| General and Administrative | 1,120,849 | 943,314 | 2,271,398 | 2,324,108 | ||||||||||||
| Total Operating Expenses | 1,732,704 | 1,789,219 | 3,629,848 | 3,918,602 | ||||||||||||
| Income (loss) from Operations | 121,812 | (88,940 | ) | (1,104,664 | ) | (1,277,086 | ) | |||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest Income | 1,845 | 349 | 11,751 | 1,008 | ||||||||||||
| Interest Expense | (93,459 | ) | - | (187,079 | ) | - | ||||||||||
| Total Other Income (Expense) | (91,614 | ) | 349 | (175,328 | ) | 1,008 | ||||||||||
| Income (loss) before income taxes | 30,198 | (88,591 | ) | (1,279,992 | ) | (1,276,078 | ) | |||||||||
| Provision for Income Taxes (Note 16) | - | - | - | - | ||||||||||||
| Net Income (loss) | $ | 30,198 | $ | (88,591 | ) | $ | (1,279,992 | ) | $ | (1,276,078 | ) | |||||
| Net income (loss) Per Common Share | ||||||||||||||||
| Basic | $ | 0.00 | $ | (0.00 | ) | $ | (0.06 | ) | $ | (0.06 | ) | |||||
| Diluted | $ | 0.00 | $ | (0.00 | ) | $ | (0.06 | ) | $ | (0.06 | ) | |||||
| Basic Weighted Average Common Shares Outstanding | 19,985,205 | 19,823,955 | 19,946,164 | 19,815,336 | ||||||||||||
| Diluted Weighted Average Common Shares Outstanding | 22,133,562 | 19,823,955 | 19,946,164 | 19,815,336 | ||||||||||||
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Net income (loss) | $ | 30,198 | $ | (88,591 | ) | $ | (1,279,992 | ) | $ | (1,276,078 | ) | |||||
| Depreciation and Amortization | 76,554 | 90,560 | 154,475 | 179,336 | ||||||||||||
| Interest Expense | 93,459 | - | 187,079 | - | ||||||||||||
| Interest Income | (1,845 | ) | (349 | ) | (11,751 | ) | (1,008 | ) | ||||||||
| Other | - | - | - | - | ||||||||||||
| EBITDA Profit/(Loss) | $ | 198,366 | $ | 1,620 | $ | (950,189 | ) | $ | (1,097,750 | ) | ||||||
| Equity Compensation Expense | 144,308 | - | 144,307 | 158,833 | ||||||||||||
| Other | - | - | - | - | ||||||||||||
| Adjusted EBITDA Profit/ (Loss) | $ | 342,674 | $ | 1,620 | $ | (805,882 | ) | $ | (938,917 | ) | ||||||
| Net revenue | $ | 3,013,392 | $ | 2,774,699 | $ | 4,127,479 | $ | 4,356,871 | ||||||||
| Adjusted EBITDA Margin | 11 | % | 0 | % | -20 | % | -22 | % | ||||||||
INVESTOR RELATIONS CONTACT:
John Nesbett/Roz Christian
IMS Investor Relations
tomi@imsinvestorrelations.com
