Innovest Global Inc. (OTC Markets: IVST), a diversified industrials company, today announced record financial results for the third quarter ended September 30, 2019.
- Third quarter 2019 sales of $17.6 million eclipse previous second quarter 2019 record.
- Gross profit for the quarter grew to $2.4 million, or 14% of sales.
- Operating income for the quarter of $532 thousand, or 3% of sales, the first positive operating income reported since inception.
- Third quarter 2019 year to date sales of $47.4 million, nearly surpassing the $50 million annual sales guidance provided at the beginning of the year (click here for guidance).
Innovest Global’s most profitable segment, Commercial Solutions grew over 80% organically in sales over the second quarter 2019 to $8.1 million at 28% gross profit. Wholesale Purchasing segment had sales of $9.4 million which represents a sequential decline of 26% due to seasonality with consistent gross profit of 1.2%.
The Company's Commercial Solutions segment is a fabricator of large curtainwall systems and provides energy consumption solutions for high-use commercial and industrial customers to lower demand, improve utilization and drastically reduce spending. The Wholesale Purchasing segment includes a distributor of building supplies to independent building materials providers.
Dan Martin, Chief Executive Officer and Chairman, said, “Our team was able to execute strong profitable growth over second quarter results in a limited capital environment. The growth trend in Commercial Solutions has surpassed our expectations by putting unique and valuable solutions into the market. Our Commercial Solutions segment has created a strong foundation entering 2020 that can now scale to yield meaningful returns.”
Notable information from the third-quarter 2019 financial report:
- Third quarter ended September 30, 2019 net sales of $17.6 million; an increase of $16.6 million over the third quarter of 2018, and $0.2 million or 2% higher than the second quarter of 2019.
- Nine months ended September 30, 2019 net sales of $47.4 million, an increase of $44.5 million over $2.9 million reported in the nine month period ended September 30, 2018.
- Third quarter ended September 30, 2019 consolidated net profit of $393 thousand; an increase of $646 thousand over the third quarter of 2018.
- Nine months ended September 30, 2019 diluted EPS of $0.003
-
Balance Sheet figures as of September 30, 2019:
- Cash: $0.61 million
- Current Assets: $15.6 million
- Total Assets: $21.7 million
- Current Liabilities: $17.2 million
- Long-term debt: $0
The quarterly report can be found in its entirety by clicking here. Financial statements without notes are located at the end of this release.
As previously announced, the Company continues to focus on the uplist process to move to the QB Venture Market with plans to achieve this milestone in the near term pending regulatory approval. Additionally, Innovest Global is also prioritizing the spin-off of the biotechnology holdings to focus on the above industrial revenue opportunities. This action was expected to be completed no later than the end of the year but may ultimately be in first quarter 2020.
Mr. Martin added, “Now, more than ever, is a great time to be a stakeholder of Innovest Global. Our team has proven Innovest’s value proposition to our markets even under growth capital constraints and remains focused and dedicated to taking the Company to the next level with strategic execution, capital structure formation, and market share growth.”
About Innovest Global, Inc.
Innovest Global, Inc. (OTC Markets: IVST) is a diversified industrial company providing value-added solutions across multiple business sectors. The Company has a commitment to building long-term shareholder value through acquisitions and organic growth achieved through the “Innovest Way”, the Company’s internal path to success. For more information visit http://innovestglobal.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the OTC Markets. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
| Innovest Global, Inc. | ||||||
| Consolidated Balance Sheet | ||||||
Period Ended
|
||||||
2019 |
2018 |
|||||
| Current Assets: | ||||||
| Cash and cash equivalents | $ |
614,988 |
$ |
390,186 |
||
| Accounts receivable: | ||||||
| Trade | 7,840,023 |
320,863 |
||||
| Retentions | 843,922 |
- |
||||
| Inventory | 40,925 |
4,915 |
||||
| Cost in excess of billings | 6,300,554 |
- |
||||
| Notes Receivable | - |
25,000 |
||||
| Prepaid expenses and other current assets | 8,286 |
116,271 |
||||
| Total current assets | $ |
15,648,697 |
$ |
857,235 |
||
| Property and Equipment – Net | 309,170 |
- |
||||
| Goodwill | 5,295,770 |
82,381 |
||||
| Intangible Assets ‑ Net | 324,000 |
- |
||||
| Other Assets: | ||||||
| Leasehold Improvements | 5,000 |
- |
||||
| Investment | 141,742 |
- |
||||
| Other noncurrent assets | 12,410 |
132,000 |
||||
| Total other assets | $ |
159,152 |
$ |
132,000 |
||
| Total assets | $ |
21,736,788 |
$ |
1,071,616 |
||
| Innovest Global, Inc. | ||||||||
| Consolidated Balance Sheet | ||||||||
| (Continued) | ||||||||
Period Ended
|
||||||||
2019 |
2018 |
|||||||
| Current Liabilities: | ||||||||
| Accounts payable | 9,815,323 |
320,026 |
||||||
| Bank line of credit | 348,640 |
- |
||||||
| Notes payable | 107,576 |
- |
||||||
| Bond Payable | 5,630,755 |
- |
||||||
| Deposit on Assets | 644,695 |
- |
||||||
| Accrued and other current liabilities: | ||||||||
| Accrued Compensation | 236,184 |
- |
||||||
| Accrued Expenses | 24,769 |
12,472 |
||||||
| Other accrued liabilities | 395,929 |
165,779 |
||||||
| Total current liabilities | $ |
17,203,870 |
$ |
498,277 |
||||
| Shareholder Loan Payable | 162,300 |
- |
||||||
| Stock Guarantee Liability | 4,449,000 |
- |
||||||
| Share Issuance Liability | 750,000 |
- |
||||||
| Other Long Term Liabilities | 44,812 |
- |
||||||
| Total liabilities | $ |
22,609,982 |
$ |
498,277 |
||||
| Stockholders' Equity (Deficit): | ||||||||
| Common stock, par value $0.001 per share: Authorized shares: 500,000,000 in 2018 and 2017 Issued and outstanding shares: 148,338,959 at September 30, 2019 and 109,188,071 at September 30, 2018 |
148,339 |
109,188 |
||||||
| Preferred stock, par value $0.001 per share: Authorized shares: 10,000,000 in 2019 and 2018 Issued and outstanding shares: 1,250,000 at September 30, 2019 and 1,250,000 at September 30, 2018 |
1,250 |
1,250 |
||||||
| Stock subscriptions, common shares: 0 at September 30, 2019 and 16,193,183 at September 30, 2018 | - |
312,000 |
||||||
| Additional paid‑in capital | 3,884,973 |
996,453 |
||||||
| Retained deficit | (4,907,756 |
) |
(845,552 |
) |
||||
| Total stockholders' equity (deficit) | $ |
(873,194 |
) |
$ |
573,339 |
|||
| Total liabilities and stockholders' equity (deficit) | $ |
21,736,788 |
$ |
1,071,616 |
||||
| Innovest Global, Inc. | ||||||||
| Consolidated Statement of Income (Loss) | ||||||||
Three months ended
|
||||||||
2019 |
2018 |
|||||||
| Net Sales | $ |
17,638,128 |
$ |
1,064,152 |
||||
| Cost of Sales | 15,218,258 |
602,351 |
||||||
| Gross Profit | $ |
2,419,870 |
$ |
461,801 |
||||
| Operating Expenses | 1,887,907 |
722,978 |
||||||
| Operating Income / (Loss) | $ |
531,963 |
$ |
(261,177 |
) |
|||
| Non-operating Income (Expenses) | ||||||||
| Interest income | ||||||||
| Other income | (2,792 |
) |
8,380 |
|||||
| Loss on Asset Sale - A/R | (135,798 |
) |
- |
|||||
| Fair value adjustment for stock guarantee liability credit | - |
- |
||||||
| Total nonoperating income | (138,589 |
) |
8,380 |
|||||
| Consolidated Net Profit/(Loss) | $ |
393,374 |
$ |
(252,797 |
) |
|||
| Net Gain/(Loss) Per Share ‑ Basic | $ |
0.003 |
$ |
(0.002 |
) |
|||
| Net Gain/(Loss) Per Share ‑ Diluted | $ |
0.001 |
$ |
(0.001 |
) |
|||
| Weighted average Common Shares Outstanding ‑ Basic | 148,338,959 |
109,188,071 |
||||||
| Weighted average Fully Diluted Common Shares | 273,338,959 |
234,188,071 |
||||||
| Innovest Global, Inc. | ||||||||
| Consolidated Statement of Income (Loss) | ||||||||
Nine months ended
|
||||||||
2019 |
2018 |
|||||||
| Net Sales | $ |
47,423,657 |
$ |
2,874,323 |
||||
| Cost of Sales | 44,516,698 |
1,512,362 |
||||||
| Gross Profit | $ |
2,906,959 |
$ |
1,361,961 |
||||
| Operating Expenses | 5,086,633 |
1,993,443 |
||||||
| Operating Income / (Loss) | $ |
(2,179,674 |
) |
$ |
(631,482 |
) |
||
| Non-operating Income (Expenses) | ||||||||
| Interest income | ||||||||
| Other income | 68,162 |
31,950 |
||||||
| Loss on Asset Sale - A/R | (384,755 |
) |
||||||
| Fair value adjustment for stock guarantee liability credit | 2,470,000 |
|||||||
| Total nonoperating income | 2,153,407 |
31,950 |
||||||
| Consolidated Net Profit/(Loss) | $ |
(26,267 |
) |
$ |
(599,532 |
) |
||
| Net Gain/(Loss) Per Share ‑ Basic | $ |
(0.000 |
) |
$ |
(0.005 |
) |
||
| Net Gain/(Loss) Per Share ‑ Diluted | $ |
(0.000 |
) |
$ |
(0.003 |
) |
||
| Weighted average Common Shares Outstanding ‑ Basic | 148,338,959 |
109,188,071 |
||||||
| Weighted average Fully Diluted Common Shares | 273,338,959 |
234,188,071 |
||||||
| Innovest Global, Inc. | ||||||||
| Consolidated Statement of Cash Flows | ||||||||
Nine Month Period
|
||||||||
2019 |
2018 |
|||||||
| Net Gain/ (Loss) | $ |
(26,267 |
) |
$ |
(599,532 |
) |
||
| Cash Flows from Operating Activities | ||||||||
| Depreciation & Amortization | 78,437 |
- |
||||||
| Adjustment for stock guarantee liability | (2,470,000 |
) |
- |
|||||
| Change in non current assets | 16,762 |
- |
||||||
| Changes in operating assets and liabilities that (used) provided cash and cash equivalents: | ||||||||
| Accounts receivable | (3,875,241 |
) |
(322,415 |
) |
||||
| Inventory | (10,554 |
) |
979 |
|||||
| Costs and estimated earnings in excess of billings | (6,300,554 |
) |
- |
|||||
| Prepaid expenses and other assets | 117,897 |
(116,271 |
) |
|||||
| Accounts payable | 6,237,644 |
363,937 |
||||||
| Accrued expenses | 106,785 |
12,472 |
||||||
| Billings in excess of costs and estimated earnings | (1,523,824 |
) |
- |
|||||
| Accrued and other liabilities | 235,958 |
51,183 |
||||||
| Net cash used in operating activities | (7,412,957 |
) |
(609,647 |
) |
||||
| Cash Flows from Investing Activities | ||||||||
| Leasehold Improvements | (5,000 |
) |
- |
|||||
| Investment in StemVax | - |
(17,500 |
) |
|||||
| Net cash provided by (used in) investing activities | (5,000 |
) |
(17,500 |
) |
||||
| Cash Flows from Financing Activities | ||||||||
| Proceeds on stock subscriptions | 342,000 |
1,013,500 |
||||||
| Proceeds from bond payable | 5,630,755 |
- |
||||||
| Proceeds from cash advances (deposit on assets) | 644,695 |
- |
||||||
| Proceeds from shareholder loan | 162,300 |
- |
||||||
| Proceeds from stock issuances | 459,293 |
- |
||||||
| Net cash provided by financing activities | 7,239,042 |
1,013,500 |
||||||
| Net Increase in Cash and Cash Equivalents | $ |
(178,915 |
) |
$ |
386,353 |
|||
| Cash and Cash Equivalents – Beginning of Period | $ |
793,903 |
$ |
3,833 |
||||
| Cash and Cash Equivalents – End of Period | $ |
614,988 |
$ |
390,186 |
||||
| Innovest Global, Inc. | ||||||||||
| Segment Reporting | ||||||||||
Three Months Ended |
||||||||||
September 30, 2019 |
September 30, 2018 |
June 30, 2019 |
||||||||
| Revenues | ||||||||||
| Commercial Solutions | 8,166,118 |
1,064,152 |
4,516,509 |
|||||||
| Wholesale Purchasing | 9,472,010 |
- |
12,845,001 |
|||||||
| Total Revenues | $ |
17,638,128 |
$ |
1,064,152 |
$ |
17,361,510 |
||||
| Gross Profit | ||||||||||
| Commercial Solutions | 2,305,198 |
461,801 |
(390,773 |
) |
||||||
| Wholesale Purchasing | 114,672 |
- |
142,698 |
|||||||
| Total Gross Profit | $ |
2,419,870 |
$ |
461,801 |
$ |
(248,075 |
) |
|||
Nine Months Ended |
||||||||||
September 30, 2019 |
September 30, 2018 |
|||||||||
| Revenues | ||||||||||
| Commercial Solutions | 16,305,854 |
2,874,323 |
||||||||
| Wholesale Purchasing | 31,117,803 |
- |
||||||||
| Total Revenues | $ |
47,423,657 |
$ |
2,874,323 |
||||||
| Gross Profit | ||||||||||
| Commercial Solutions | 2,572,194 |
1,361,961 |
||||||||
| Wholesale Purchasing | 334,765 |
- |
||||||||
| Total Gross Profit | $ |
2,906,959 |
$ |
1,361,961 |
||||||
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