ToughBuilt Industries, Inc. (NASDAQ:TBLT) Q3 2023 Earnings Call Transcript
ToughBuilt Industries, Inc. (NASDAQ:TBLT) Q3 2023 Earnings Call Transcript November 16, 2023
Operator: Good afternoon, everyone. And welcome to the ToughBuilt Industries Third Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please also note today’s event is being recorded. And at this time, I would like to turn the floor over to Martin Galstyan, Chief Financial Officer. Sir, please go ahead.
Martin Galstyan: Good afternoon. And thank you all for joining us today to discuss ToughBuilt third quarter 2023 financial and operating results. Again, my name is Martin Galstyan and I am the Chief Financial Officer of ToughBuilt. Joining me on today’s call is Michael Panosian, ToughBuilt’s President and Chief Executive Officer. Michael will begin today’s discussion by providing operational and financial highlights from the third quarter. I will then review our financial performance. Michael will conclude the discussion with our growth plans for the upcoming fiscal year and beyond. Before turning the call over to Michael, I would like to remind you that forward-looking statements made by management during today’s call and that any forward-looking statements are covered under the U.S. Private Securities Litigation Reform Act of 1995.
A worker wearing a safety vest supervising a team of bulldozers leveling the ground for a road construction project.
Actual results could differ materially from what is described in those statements and are subject to the changes, risks and uncertainties as described in our press release and in our SEC periodic and other filings. Additionally, information on risk factors that could cause results to differ is available in the company’s most recent Form 10-K filed with the SEC. In addition, during the course of the call, we may be inadvertently use or refer to financial measures that are not prepared in accordance with accounting principles generally accepted in the United States and that may be different from non-GAAP financial measures used by other companies. If any GAAP financial measures are mentioned in today’s call, the company will promptly file a Form 8-K with the SEC reconciling such non-GAAP numbers to GAAP.
I will now turn the call to Michael.
Michael Panosian: Thank you, Martin, and thank you all for joining us today. For the third quarter of 2023, the company reported revenue of $20.6 million, a 9% increase compared to the prior quarter. We are very aware of the challenging macroeconomic background that has been affecting our industry. As a result, we continue to work diligently to decrease overhead. For the third quarter, SG&A expenses were $12.5 million, a 33% decrease compared to the prior quarter and a decrease of 30% compared to the same quarter last year. Our gross profit for Q3 decreased by 20% to $4.9 million compared to the third quarter of 2022. Although the gross margin decreased this Q3, however, on first nine months comparison basis, it only declined 0.32%.
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