Last10K.com

Insignia Systems Incmn (ISIG) SEC Filing 10-K Annual report for the fiscal year ending Monday, December 31, 2018

Insignia Systems Incmn

HISTORY TOOLS
CIK: 875355 Ticker: ISIG
 
EXHIBIT 99.1
Contact:
 
Insignia Systems, Inc.
Kristine Glancy, CEO
(763) 392-6200
 
 
 
  FOR IMMEDIATE RELEASE
 
INSIGNIA SYSTEMS, INC. ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS
 
 
MINNEAPOLIS, MN – March 5, 2019 – Insignia Systems, Inc. (Nasdaq: ISIG) (“Insignia”) today reported financial results for the fourth quarter (“Q4”) and the full year ended December 31, 2018.
 
Overview
●
Q4 2018 net sales increased 0.3% to $8.1 million from $8.1 million in Q4 2017, driven by innovation revenue, offset by a decrease in POPS program revenue.
●
2018 net sales were $33.2 million, an increase of 25.8% from $26.4 million in 2017.
●
Q4 2018 operating income was $0.5 million compared to $1.0 million in Q4 2017.
●
2018 operating income was $1.8 million, compared to an operating loss of $0.9 million in 2017.
●
Q4 2018 net income was $0.4 million, or $0.04 per basic and diluted share, compared to $0.6 million, or $0.05 per basic and diluted share in Q4 2017.
●
2018 net income was $1.4 million, or $0.12 per basic and diluted share, compared to a net loss of $0.6 million, or $0.06 per basic and diluted share in 2017.
 
Insignia’s President and CEO Kristine Glancy commented, “We are proud of our performance in 2018 delivering $1.8 million in operating income and growing revenue 25.8% versus 2017. All solutions of our business grew versus 2017 and contributed to our overall results. Our innovation development drove the most significant growth in 2018; representing over $5.0 million in sales, an increase of $4.8 million versus 2017. I want to personally thank our entire organization and especially our functional leaders, as our results would not have been possible without all their contributions to our success.
 
●
CPG Sales grew sales with both existing and new clients in our core business while also building our innovation pipeline
●
Retail Sales identified new channels of business, negotiated increased stores and improved terms in existing retailers and built a pipeline of potential new retailers
●
Marketing increased overall corporate awareness by executing a new web platform, updated corporate branding, attended trade shows and created an overall social campaign
●
Business development created, tested and executed thirteen new solutions enabling us to enter into new retailers and engage with new CPG manufacturers
●
Operations delivered against all of their performance KPIs including on-time shipments, quality and accuracy of our programs while reducing operational costs
 
Ms. Glancy continued, “Despite delivering our most successful year, our performance has resulted in significant competitive pressures as shared earlier this year. While we have decreased our reliance on our top customers through our innovation development, any changes in their performance will still have an adverse
 
 
 
 
impact to our business. As we start the year in 2019, we are challenged with the loss of both a significant retailer and CPG manufacturer. As a result of these customer losses, we expect to incur operating losses in the 1st half of 2019. We are continuing to identify ways to work with these customers; however, competition has entered into agreements that are limiting our success in being able to do so. We are aggressively pursuing opportunities to replace the gap created from these lost customers via continued focus against our new solutions introduced in 2018, continued portfolio expansion in 2019 and new retailer acquisition opportunities. We will manage our overall business by aligning both costs and strategic investments while also identifying new sales drivers to remain relevant in the industry. While we face challenges in 2019, we have a strong balance sheet, a high-performing team and innovative solutions for our customers to manage the current challenges we are facing.”
 
Q4 2018 Results
Net sales increased 0.3% to $8,117,000 in Q4 2018, from $8,091,000 in Q4 2017, primarily due to an increase in innovation solutions. POPS program revenue was down due to a decrease in the number of signs placed partially offset by an increase in average price per sign, which was the result of a favorable mix of CPG clients and contracts.
 
Gross profit in Q4 2018 decreased to $3,247,000, or 40.0% of net sales, from $3,531,000, or 43.6% of net sales, in Q4 2017. The lower gross profit was primarily the result of product mix combined with a decrease in the number of POPS program signs placed.
 
Selling expenses in Q4 2018 were $899,000, or 11.1% of net sales, compared to $941,000, or 11.6% of net sales, in Q4 2017.
 
Marketing expenses in Q4 2018 were $801,000, or 9.9% of net sales, compared to $454,000, or 5.6% of net sales, in Q4 2017. Increased marketing expenses were primarily due to increased staffing and staff related costs, promotional activities, and an increase in new product development activities.
 
 
General and administrative expenses in Q4 2018 were $1,046,000, or 12.9% of net sales, compared to $1,183,000, or 14.6% of net sales, in Q4 2017.
 
Income tax expense for Q4 2018 was 22.7% of pretax income, or an expense of $119,000, compared to income tax expense of 32.8% of pretax income, or $310,000, in Q4 2017. The decrease in income tax rate was primarily due to the tax impact of The Tax Cut and Jobs Act of 2017.
 
As a result of the items above, the net income for Q4 2018 was $406,000, or $0.04 per basic and diluted share, compared to $635,000, or $0.05 per basic and diluted share, in Q4 2017.
 
As of December 31, 2018, cash and cash equivalents totaled $10.2 million, compared to $4.7 million as of December 31, 2017.
 
Share Repurchase Plan
As announced on April 5, 2018, the Board of Directors has approved a Stock Repurchase Plan authorizing the repurchase of up to $3.0 million of the Company’s common stock, from time to time on the open market or in privately negotiated transactions through March 31, 2020. During Q4 2018, the Company purchased approximately 17,000 shares at an average price of $1.77 per share.
 
 
 
 
About Insignia Systems, Inc.
 
Insignia Systems, Inc. markets in-store advertising products, programs and services primarily to both consumer-packaged goods manufacturers and retailers. Insignia has provided in-store media solutions in over 20,000 retail outlets, inclusive of grocery, mass merchants and dollar over the course of 2018. We partner with over 300 consumer packaged goods manufacturers across various categories including center store, refrigerated, frozen and the perimeter.
 
For additional information, contact (800) 874-4648, or visit the Insignia website at www.insigniasystems.com.
Investor inquiries can be submitted to investorrelations@insigniasystems.com.
 
Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995
 
Statements in this press release that are not statements of historical or current facts are considered forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. The words “anticipates,” “expects,” “seeks,” “will” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on these or any forward-looking statements, which speak only as of the date of this press release. Statements made in this press release regarding, for instance, anticipated future profitability, future service revenues, innovationand transformation of the Company’s business are forward-looking statements. These forward-looking statements are based on current information, which we have assessed and which by its nature is dynamic and subject to rapid and even abrupt changes. As such, actual results may differ materially from the results or performance expressed or implied by such forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including those set forth in our Annual Report on Form 10-K for the year ended December 31, 2017 and additional risks, if any, identified in our Quarterly Reports on Form 10-Q and our Current Reports on Forms 8-K filed with the SEC. Such forward-looking statements should be read in conjunction with the Company's filings with the SEC. Insignia assumes no responsibility to update the forward-looking statements contained in this press release or the reasons why actual results would differ from those anticipated in any such forward-looking statement, other than as required by law.
 
 
 
 
 
Insignia Systems, Inc.
 
 
STATEMENTS OF OPERATIONS
 
 
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
 
Year Ended
 
 
 
December 31,
 
 
December 31,
 
 
 
2018
 
 
2017
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 $8,117,000 
 $8,091,000 
 $33,236,000 
 $26,430,000 
Cost of sales
  4,870,000 
  4,560,000 
  20,675,000 
  18,029,000 
Gross profit
  3,247,000 
  3,531,000 
  12,561,000 
  8,401,000 
Operating expenses:
    
    
    
    
Selling
  899,000 
  941,000 
  3,429,000 
  3,539,000 
Marketing
  801,000 
  454,000 
  2,674,000 
  1,716,000 
General and administrative
  1,046,000 
  1,183,000 
  4,626,000 
  4,054,000 
 
    
    
    
    
Operating income (loss)
  501,000 
  953,000 
  1,832,000 
  ( 908,000)
Other income (loss), net
  24,000 
  ( 8,000)
  51,000 
  ( 1,000)
 
    
    
    
    
Income (loss) before taxes
  525,000 
  945,000 
  1,883,000 
  ( 909,000)
Income tax expense (benefit)
  119,000 
  310,000 
  484,000 
  ( 270,000)
 
    
    
    
    
Net income (loss)
 $406,000 
 $635,000 
 $1,399,000 
 $( 639,000)
 
    
    
    
    
Net income (loss) per share:
    
    
    
    
Basic
 $0.04 
 $0.05 
 $0.12 
 $( 0.06)
Diluted
 $0.04 
 $0.05 
 $0.12 
 $( 0.06)
 
    
    
    
    
Shares used in calculation of net income (loss) per share:
    
    
    
    
Basic
  11,751,000 
  11,774,000 
  11,776,000 
  11,717,000 
Diluted
  11,958,000 
  11,867,000 
  12,007,000 
  11,717,000 
 
 
 
SELECTED BALANCE SHEET DATA
 
 
(Unaudited)
 
 
 
  December 31,
 
 
 
2018
 
 
2017
 

  

Cash and cash equivalents
 $10,160,000 
 $4,695,000 
Working capital
  13,315,000 
  11,833,000 
Total assets
  23,917,000 
  21,688,000 
Total liabilities
  7,593,000 
  6,847,000 
Shareholders' equity
  16,324,000 
  14,841,000 
 
    
    
Working capital represents current assets less current liabilities.
    
    
 
 
 
 
 
 
The following information was filed by Insignia Systems Incmn (ISIG) on Tuesday, March 5, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one year to another to evaluate Insignia Systems Incmn's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-K Annual Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Insignia Systems Incmn.

Continue

Assess how Insignia Systems Incmn's management team is paid from their Annual Proxy

Definitive Proxy Statement (Form DEF 14A)
Screenshot example of actual Proxy Statement

Insignia Systems Incmn's Definitive Proxy Statement (Form DEF 14A) filed after their 2019 10-K Annual Report includes:

  • Voting Procedures
  • Board Members
  • Executive Team
  • Salaries, Bonuses, Perks
  • Peers / Competitors

Continue

SEC Filing Tools

Rating

Learn More
Bullish Bearish Neutral
Filter Sentiment:
All
Positive
Negative
Filter Category:
All
Financial
Revenue
M & A
Other
Filter Subcategory:
All
Earnings
Product
Expense
Other
Inside Insignia Systems Incmn's 10-K Annual Report:

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Document And Entity Information
Balance Sheets
Balance Sheets (Parenthetical)
Statements Of Cash Flows
Statements Of Operations And Comprehensive Income (Loss)
Statements Of Shareholders' Equity
Commitments And Contingencies
Commitments And Contingencies (Details 1)
Commitments And Contingencies (Details Narrative)
Commitments And Contingencies (Details)
Commitments And Contingencies (Tables)
Concentrations
Concentrations (Details Narrative)
Employee Benefit Plans
Employee Benefit Plans (Details Narrative)
Income Taxes
Income Taxes (Details 1)
Income Taxes (Details 2)
Income Taxes (Details 3)
Income Taxes (Details Narrative)
Income Taxes (Details)
Income Taxes (Tables)
Property And Equipment
Property And Equipment (Details Narrative)
Property And Equipment (Details)
Property And Equipment (Tables)
Quarterly Financial Data
Quarterly Financial Data (Details)
Quarterly Financial Data (Tables)
Retail Access And Distribution Agreement
Retail Access And Distribution Agreement (Details Narrative)
Revenue Recognition
Revenue Recognition (Details 1)
Revenue Recognition (Details Narrative)
Revenue Recognition (Details)
Revenue Recognition (Tables)
Selling Arrangement
Selling Arrangement (Details Narrative)
Selling Arrangement (Details)
Selling Arrangement (Tables)
Shareholders' Equity
Shareholders' Equity (Details 1)
Shareholders' Equity (Details 2)
Shareholders' Equity (Details 3)
Shareholders' Equity (Details 4)
Shareholders' Equity (Details 5)
Shareholders' Equity (Details Narrative)
Shareholders' Equity (Details)
Shareholders' Equity (Tables)
Summary Of Significant Accounting Policies
Summary Of Significant Accounting Policies (Details 1)
Summary Of Significant Accounting Policies (Details 2)
Summary Of Significant Accounting Policies (Details 3)
Summary Of Significant Accounting Policies (Details Narrative)
Summary Of Significant Accounting Policies (Details)
Summary Of Significant Accounting Policies (Policies)
Summary Of Significant Accounting Policies (Tables)
Ticker: ISIG
CIK: 875355
Form Type: 10-K Annual Report
Accession Number: 0001654954-19-002427
Submitted to the SEC: Thu Mar 07 2019 12:30:51 PM EST
Accepted by the SEC: Thu Mar 07 2019
Period: Monday, December 31, 2018
Industry: Advertising

External Resources:
Stock Quote
Social Media

Bookmark the Permalink:
https://last10k.com/sec-filings/isig/0001654954-19-002427.htm