Margo Caribe, Inc. Announces First Quarter 2022 Results

Published: May. 19, 2022 at 3:28 PM EDT

JACKSONVILLE, Fla., May 19, 2022 /PRNewswire/ -- Margo Caribe, Inc. (OTC SYMBOL: MRGO) (Margo), a market leader in the home and garden segment, today announced fourth quarter and full year operating results of its wholly-owned subsidiary, Margo Outdoor Living, Inc. for the quarter ended March 31, 2022.

Sales for the first quarter ended March 31, 2022, totaled $13.7 million, down less than 2 percent from prior year. The Company reported first quarter unaudited results including pre-tax income of approximately $3 million and net income of $2.3 million or $.58 per share.

"We consider the first quarter sales to be solid when put within the context of the extraordinary growth experience last year, a slow start to spring this year and that the U.S inflation rate is impacting discretionary sales for our big-box customer base," said Michael Spector, CEO.

Mr. Spector expanded, "our operating margins remain under pressure due to higher sea freight rates and increasing diesel costs, but we were able to stabilize our product margin in the first quarter and offset these higher costs through better pricing flexibility, diversification of product mix and more efficient operations.  Our capital investments over the last two years in technology are paying off with increased production output at lower costs.  We are also encouraged by recent business development initiatives that will further diversify our product offering, particularly into the pottery, tile and commodity rock segments."

Three Months Ended March 31, 2022 Highlights

  • Gross revenue was $15 million for the quarter, down .7% from prior year.
  • The sales growth profile remains strong, up 81% over 2020 pre-Covid sales levels.
  • Pre-tax income of $3 million, declined 2% from prior year due primarily to higher warehouse and supply costs. Product margins improved slightly compared to last year due to more efficient fulfillment costs, product diversification and pricing flexibility.
  • Pre-tax quarterly income is up 191% from 2020 levels.
  • Cash flow remains strong, net debt (debt less cash), ended the quarter at approximately $8 million, down 30% from first quarter last year.

Three Months Ended March 31,

2022

2021

Unaudited



In thousands except for per share data



Revenue

$        13,686

$         13,957

Cost of Sales

8,572

8,762

Gross margin

5,114

5,194

Operating expense

2,012

1,972

Operating income

3,012

3,222

Interest expense

91

146

Other income / (expense)

0

0

Pre-tax income

3,012

3,076

Income Tax

(675)

(689)

Net Income

2,337

2,387

Net income per share

$.58

$.60

About Margo Caribe, Inc.

Margo Caribe, Inc. through its subsidiary Margo Outdoor Living, Inc. (MOL). has benefited by building key relationships with the largest big-box retailers in its industry segment. Its focus on product development, world-wide supplier sourcing, cost effective logistics and state-of-the-art automation has contributed to its success in growing both top and bottom-line results.   MOL offers a wide range of products in the lawn and garden segment.  This includes sales of landscaping pebbles, mulch, glass, pottery and tile products. The Company's customer base is predominately big-box retailers but also sells products directly to consumers through the eCommerce sales channel.

MOL is a wholly-owned subsidiary of Margo Caribe, Inc., a Puerto Rico entity.   Effective December 22, 2020, MOL converted from a Florida corporation to a Delaware corporation and changed its name from Margo State Line, Inc. to Margo Outdoor Living, Inc.

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SOURCE Margo Caribe, Inc.

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