Sierra Monitor Corporation Announced Financial Results for the Second Quarter Ended June 30, 2018

Sierra Monitor Corporation Announced Financial Results for the Second Quarter Ended June 30, 2018

Posted by: Sierra Monitor Corporation | Posted on: Friday, July 27, 2018

Milpitas, California, July 27, 2018 (GLOBE NEWSWIRE) -- Sierra Monitor Corporation (OTCQB: SRMC), a provider of Industrial Internet of Things (IIoT) solutions that target facility automation and facility safety requirements, today announced financial results for the second quarter ended June 30, 2018.

Sierra Monitor hosted a conference call to discuss the financial results on Thursday, July 26, 2018 at 10:00 AM Pacific Time. The conference call recording can be accessed on our investor relations website www.investor.sierramonitor.com/news-releases/news-release-details/q2-2018-earnings-call

Financial Highlights

  • Reported Q2 2018 net sales of approximately $5.6 million, compared to approximately $4.8 million in the same prior year period.
  • Recorded Q2 2018 gross profit of 58%, compared to 58% in the same prior year period.
  • Reported Q2 2018 GAAP net income per share of $0.00 (basic and diluted), compared to GAAP net loss of $0.04 per share (basic and diluted) for the same prior year period.
  • Posted Q2 2018 EBITDA income of $0.1 million, compared to EBITDA loss of approximately $0.6 million for the same prior year period.
  • Reported Q2 2018 Non-GAAP net income per share of $0.02 (basic and diluted), compared to Non-GAAP net loss of $0.03 per share (basic and diluted) in the same prior year period.
  • Ended Q2 2018 with a cash balance of approximately $2.7 million and no bank debt compared to a cash balance of $3.2 million and no bank debt on December 31, 2017.
  • Declared twenty-third consecutive quarterly dividend of $0.01 per share, to be paid on May 15, 2018.

Second Quarter and Six Month 2018 Financial Results

Net sales for the quarter ended June 30, 2018 were $5,550,598, compared to $4,835,420 reported for the same period of 2017. Sierra Monitor posted a GAAP net income of $45,864 or $0.00 per share (basic and diluted), for the quarter ended June 30, 2018, compared to GAAP net loss of $425,464 or $0.04 per share (basic and diluted), for the same period of 2017. See Table A of this release for condensed statements of operations. Approximately $400,000 of the prior year period net loss was attributable to one-time reorganization costs.

Sierra Monitor posted non-GAAP net income of $181,675 or $0.02 per share (basic and diluted), for the quarter ended June 30, 2018, compared to non-GAAP net loss of $275,102 or $0.03 per share (basic and diluted), for the same period of 2017. See Table C of this release for a reconciliation of GAAP to non-GAAP operating results. Approximately $400,000 of the prior year period non-GAAP net loss was attributable to one-time reorganization costs.

Sierra Monitor recorded EBITDA of $142,222 for the quarter ended June 30, 2018, compared to negative EBITDA of $580,982 for the same period of 2017. See Table D of this release for reconciliation between GAAP Net Income and EBITDA operating results. Approximately $580,000 of the prior year period EBITDA loss was attributable to one-time reorganization costs.

Net sales for the six months ended June 30, 2018 were $10,701,614, compared to $9,362,610 reported for the same period of 2017. Sierra Monitor posted GAAP net income of $97,125 or $0.01 per share (basic and diluted), for the six months ended June 30, 2018, compared to GAAP net loss of $559,306 or $0.05 per share (basic and diluted), for the same period of 2017. See Table A of this release for condensed statements of operations. Approximately $400,000 of the prior period year-to-date net loss was attributable to one-time reorganization costs.

Sierra Monitor posted non-GAAP net income of $360,329 or $0.04 per share (basic) and $0.03 (diluted), for the six months ended June 30, 2018, compared to non-GAAP net loss of $253,007 or $0.02 per share (basic and diluted) for the same period of 2017. See Table C of this release for a reconciliation of GAAP to non-GAAP operating results. Approximately $400,000 of the prior period year-to-date non-GAAP net loss was attributable to one-time reorganization costs.

Sierra Monitor posted EBITDA of $291,709 for the six months ended June 30, 2018, compared to negative EBITDA of $675,184 for the same period of 2017. See Table D of this release for reconciliation between GAAP Net Income and EBITDA operating results. Approximately $580,000 of the prior period year-to-date negative EBITDA was attributable to one-time reorganization costs.

Sierra Monitor had $2,730,511 in cash on June 30, 2018 with no bank borrowings, compared to $3,191,722 on December 31, 2017. Net trade receivables on June 30, 2018 were $2,957,167, compared to $3,254,681 on December 31, 2017. The company’s days’ sales outstanding were 50 days, compared to 48 days for the same period in 2017. Inventory at the end of Q2 2018 was $3,584,264 compared to $3,138,261 on December 31, 2017. See Table B of this release for a summary of the balance sheet.

Business Highlights

“The second quarter of 2018 was another very positive step in SMC’s growth. We are pleased to see sales growth and profitability particularly in relation to the same period of last year. We believe that we are starting to see the benefits of the investments we have made across the company in our Protect, Connect and Cloud offers. Customers are seeing the value of the solutions and are investing in Sierra Monitor’s products as a result”, said Jeff Brown, President/CEO. Our sales teams and channel partners are working to solve complex problems for your customers. Some examples include:

  • Safe Fire Detection: Safe Fire needed a way to interconnect their proprietary solutions to building management system using industry standard BACnet and Modbus protocols. In addition, they wanted the ability to manage, visualize and review their systems from the cloud. Working with SMC, Safe Fire used our gateway products to interface to both the building management and SMC’s cloud to achieve their objectives.
  • Rab Lighting: This manufacturer of cloud-based lighting control systems needed a way to interface to multiple protocols at each location with a building management system. As a cloud-based solution, interfaces were challenging locally but SMC’s ProtoNode gateway allowed Rab to meet the requirements of their customers for this connectivity.
  • SMC worked with one of the largest skid manufacturers in the US to implement gas sensing solutions focused on H2S and combustible gases. This customer needed out of the box high reliability, the ability to meet short lead times and high levels of customer service. Their previous suppliers were not able to deliver on these requirements. Working with SMC, they are able to meet their complex sensor needs in a very timely manner while getting the support they need from Sierra Monitor leading to more sales for the customer.

Additional financial tables can be found here.

About Sierra Monitor Corporation

Sierra Monitor Corporation addresses the industrial and commercial facilities management market with Industrial Internet of Things (IIoT) solutions that target facility automation and facility safety requirements.

The company’s FieldServer brand of protocol gateways and SMC Cloud target the facility automation segment and are used by OEMs and system integrators to enable local and remote monitoring and control. With more than 200,000 products, supporting over 140 protocols, installed in commercial and industrial facilities, FieldServer is the industry’s leading multi-protocol gateway.

Sierra Monitor’s Sentry IT fire and gas detection solutions address the facilities safety segment and are used by safety managers to protect facility personnel and assets. Tens of thousands of Sentry IT branded controllers, sensor modules, and software are installed at facilities such as natural gas vehicle fueling and maintenance stations, wastewater treatment plants, oil and gas refineries and pipelines, parking garages, and underground telephone vaults.

Headquartered in the heart of Silicon Valley in Milpitas, California, Sierra Monitor was founded in 1978 and has been a public company since 1989. By combining its distinguished track record in industrial sensing and automation with IoT technologies such as wireless, cloud connectivity, and data services, Sierra Monitor is at the forefront of the IIoT market expansion.

For more information visit: http://www.sierramonitor.com/

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, including those statements concerning future product plans and releases, market acceptance and adoption of our solutions, macroeconomic trends and market conditions, investment plans, results of operations, market position, and strategic plans and objectives. These statements are not guarantees of future performance and actual results may differ materially from those described in these forward-looking statements as a result of a number of factors. Further information on these risks, uncertainties and assumptions as well as information regarding other factors that could affect the company’s financial results is included in the reports on Forms 10-K, 10-Q and 8-K and in other filings we make with the Securities and Exchange Commission from time to time. Forward-looking statements contained in this announcement are made as of this date and will not be updated.

Source: Sierra Monitor Corporation

Sierra Monitor Corporation
Tamara Allen
CFO
tallen@sierramonitor.com