$BOMH Boomer Naturals Provides First Quarter 2021
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Posted On: 12/16/2020 12:29:55 PM
$BOMH Boomer Naturals Provides First Quarter 2021 Results and Business Update
https://www.otcmarkets.com/stock/BOMH/news/Bo...?id=283610
Boomer Naturals (the “Company”) (OTC: BOMH), a health and wellness company, today provided a business update on the Company’s operations in conjunction with the filing of its form 10-Q for the fiscal first quarter 2021 ended October 31, 2020.
Management Comments
Mike Quaid, the Company’s Chief Executive Officer, stated, “As expected, we generated record revenue, dramatically increased our gross margin to 68% and operating income grew to $7.9 million. Our successful expansion into the Personal Protective Equipment category has exceeded our expectations and positions us well to expand into ancillary health and wellness categories by leveraging our expertise and unique access to manufacturing capacity in Vietnam.”
Mr. Quaid continued, “Our strategic decision to dramatically expand advertising during our fourth fiscal quarter resulted in very strong top and bottom line results for our first fiscal quarter of 2021. This initial advertising blitz helped establish our brand and we believe has us very well positioned to continue our momentum for the remainder of fiscal 2021. We also recently partnered with Core-Mark to expand our offerings into many additional retail locations throughout the North America. We believe our momentum and expected expanded offerings and distribution will enable us to achieve strong full year top and bottom line growth.”
Fiscal First Quarter 2021 and Recent Accomplishments:
In November 2020, the company began a distribution deal with the Chevron Terrible Herbst network in Nevada, with over 100 locations, to distribute Boomer Naturals, facemasks.
In December 2020, Boomer became a vendor partner with Core-Mark, a leading marketer to the North American Convenience retail industry, to distribute the Company’s face coverings.
First Fiscal Quarter of 2021 Financial Results
Revenue for the fiscal first quarter of 2021 increased to $28.8 million compared to $174,144 in the fiscal first quarter of 2020. The improvement in revenue is primarily the result of sales of PPE products launched in the fiscal fourth quarter 2020. The Company generates significant revenues derived from the PPE products.
Gross margin for the fiscal first quarter of 2021 dramatically improved 68% compared to last year’s fiscal first quarter gross margin of 51%. The increase in gross margin was primarily due to the increase in revenue during the current quarter from expanding the Company’s offerings to face coverings and other products within Personal Protective Equipment category, as well as sales, retail and wholesale income from customers that purchased our Boomer Botanics wellness products.
Operating expenses decreased by $5.4 million to $11.6 million for the fiscal first quarter of 2021 compared to $17 million for the fiscal fourth quarter 2020 but increased from $1.5 million in the first fiscal quarter of 2021. This sequential change was primarily driven by the decrease in advertising expense to $6.6 million for the fiscal first quarter of 2021 compared to $12.7 million for the fiscal fourth quarter of 2020. As mentioned in the fiscal fourth quarter 2020 results, we expected a decrease in advertising and marketing expenses during the first quarter of 2021. In the fiscal fourth quarter of 2020, we incurred a one-time increase in advertising and marketing related to the initial launch of the Company’s PPE products.
Operating income for the fiscal first quarter of 2021 improved to $7.9 million as compared to an operating loss of $1.4 for the first quarter of 2020. This improvement is principally attributable to the increase in revenue in the current quarter and dramatic improvement in gross margins and operating margins.
Net Income for the fiscal first quarter of 2021 increased to $7.4 million compared to a loss of $1.3 million for the same period last year.
https://www.otcmarkets.com/stock/BOMH/news/Bo...?id=283610
Boomer Naturals (the “Company”) (OTC: BOMH), a health and wellness company, today provided a business update on the Company’s operations in conjunction with the filing of its form 10-Q for the fiscal first quarter 2021 ended October 31, 2020.
Management Comments
Mike Quaid, the Company’s Chief Executive Officer, stated, “As expected, we generated record revenue, dramatically increased our gross margin to 68% and operating income grew to $7.9 million. Our successful expansion into the Personal Protective Equipment category has exceeded our expectations and positions us well to expand into ancillary health and wellness categories by leveraging our expertise and unique access to manufacturing capacity in Vietnam.”
Mr. Quaid continued, “Our strategic decision to dramatically expand advertising during our fourth fiscal quarter resulted in very strong top and bottom line results for our first fiscal quarter of 2021. This initial advertising blitz helped establish our brand and we believe has us very well positioned to continue our momentum for the remainder of fiscal 2021. We also recently partnered with Core-Mark to expand our offerings into many additional retail locations throughout the North America. We believe our momentum and expected expanded offerings and distribution will enable us to achieve strong full year top and bottom line growth.”
Fiscal First Quarter 2021 and Recent Accomplishments:
In November 2020, the company began a distribution deal with the Chevron Terrible Herbst network in Nevada, with over 100 locations, to distribute Boomer Naturals, facemasks.
In December 2020, Boomer became a vendor partner with Core-Mark, a leading marketer to the North American Convenience retail industry, to distribute the Company’s face coverings.
First Fiscal Quarter of 2021 Financial Results
Revenue for the fiscal first quarter of 2021 increased to $28.8 million compared to $174,144 in the fiscal first quarter of 2020. The improvement in revenue is primarily the result of sales of PPE products launched in the fiscal fourth quarter 2020. The Company generates significant revenues derived from the PPE products.
Gross margin for the fiscal first quarter of 2021 dramatically improved 68% compared to last year’s fiscal first quarter gross margin of 51%. The increase in gross margin was primarily due to the increase in revenue during the current quarter from expanding the Company’s offerings to face coverings and other products within Personal Protective Equipment category, as well as sales, retail and wholesale income from customers that purchased our Boomer Botanics wellness products.
Operating expenses decreased by $5.4 million to $11.6 million for the fiscal first quarter of 2021 compared to $17 million for the fiscal fourth quarter 2020 but increased from $1.5 million in the first fiscal quarter of 2021. This sequential change was primarily driven by the decrease in advertising expense to $6.6 million for the fiscal first quarter of 2021 compared to $12.7 million for the fiscal fourth quarter of 2020. As mentioned in the fiscal fourth quarter 2020 results, we expected a decrease in advertising and marketing expenses during the first quarter of 2021. In the fiscal fourth quarter of 2020, we incurred a one-time increase in advertising and marketing related to the initial launch of the Company’s PPE products.
Operating income for the fiscal first quarter of 2021 improved to $7.9 million as compared to an operating loss of $1.4 for the first quarter of 2020. This improvement is principally attributable to the increase in revenue in the current quarter and dramatic improvement in gross margins and operating margins.
Net Income for the fiscal first quarter of 2021 increased to $7.4 million compared to a loss of $1.3 million for the same period last year.
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