Achieved significant profit improvement on strong 29% top-line growth
Gross profit, operating and net income outpaced growth in total revenues
Earnings Per Share increased 25% to $0.05 from $0.04
Added 2 new stores ending the fiscal year with 3 locations and a food service division
Launched DoRide experience within its DoGetGo App in Western Jamaica
For fiscal 2023, expects revenues of $40M- $42M, and net income of $2.5M+
Miami, April 10, 2023 (GLOBE NEWSWIRE) --
OM Holdings International, Inc. (OTCQX: OMHI) an owner and operator of OneMart supermarkets and provider a of a multi-tenant on-demand technology platform for the delivery of goods and services, today announced record financial results for the fiscal year ended August 31,2022.
Financial Highlights for the Fiscal Year Ended August 31, 2022 (as compared to the fiscal year ended August 31, 2021):
- Total revenues increased 28.7% to $37.2 million, from $28.9 million.
- Gross Profit grew 37.4% to $12.2 million from $8.9 million, and gross margin widened. 210 basis points to 32.9%.
- Operating income expanded 44.0% to $2.6 million, from $1.8 million, and operating margin improved 80 basis points to 6.9%.
- Net income increased 42.0% to $2.4 million, from $1.7 million, and the net income margin widened by 60 basis points to 6.5%.
- Earnings per share improved to $0.05 from $0.04.
- Net margins increased due to higher food service and yacht provisioning sales increase buying power.
Operational Highlights for the Fiscal Year Ended August 31, 2022:
- Qualified to be traded on the OTCQX® Best Market from the Pink® market on January 4, 2022.
- Opened two stores in Fiscal 2022, ending the year with 3 locations and a food service division.
- Signed License Agreement to Offer Mobile Banking and Payment Transfers with DoPay within DoGetGo Super App.
- Launched DoRide experience within its DoGetGo super app in Western Jamaica.
Fiscal 2023 Outlook:
- Expect to open 2 stores to end the year with 5 stores total.
- Expect total revenues of $40 million - $42 Million.
- Expect net income to exceed $2.5 million from retail and food services alone.
- Expects to add 10,000+ DoGetGo app users.
Mark Vanterpool, President and CEO of OM Holdings International commented, “Even with widespread disruption in the global supply chain that has affected many of our peers, OM Holdings International delivered an outstanding year of growth, achieving record revenues and profitability as we emerged strongly from a demand-challenged environment caused by the Covid-19 pandemic.”
“We didn’t just get by – we grew exponentially as we expanded our retail footprint and launched our super app in its first market. Our vision is simple: develop a network of modern retail outlets which can serve as warehouse hubs and offer real-time delivery through our DoGetGo Super App.”
“This year, as we continue to build additional stores, we plan to explore retail acquisitions to further accelerate growth, increase buying power, and expand market share. With our technology subsidiary, we plan to launch more on-demand experiences - DoPay, DoTours, DoMart, DoFood, DoSend, DoShop - all within our DoGetGo app in our current market. We also look forward to establishing more synergistic partnerships in other non-homogenous global emerging markets.”
“We are still early in our growth trajectory and feel more confident than ever about the opportunity ahead. As we add additional revenue expected from our technology subsidiary and possible new retail acquisitions, our growth trajectory will accelerate even further, bringing us closer to the realization of our mission, while driving long-term value for our shareholders. For 2023 we will also commit to a much more frequent program of news updates for investors. Over the past year we have laid the groundwork for building a higher growth rate company. Now that momentum is picking up we want to make sure to keep everyone well informed on all of our progress as it develops,” Mr. Vanterpool added."
Fiscal 2022 Results for Year Ended August 31 (Audited)
Revenues and Cost of Revenue
Total company revenues were $37.2 million, up 28.7% from fiscal 2021 revenues of $28.9 million.
By division, sales from our Retail Stores increased by 20% to $28.1 million, from $23.5 million, reflecting sales from 2 new stores opened in fiscal 2022 and a same-store sales increase of 15%. Our Food Service sales jumped 68% to $9.1 million in 2022, from $5.4 million in 2021. This was primarily due to a return to strong overnight tourism post lock down during the Covid-19 Pandemic. Sales for Yacht Provisioning advanced 224% to $1.5 million, from $0.5 million, for the same reason.
In addition, improved gross margins of 2% resulted from more bulk purchases resulting in lower product costs.
Operating Expenses
Total operating expenses were $9.7 million, up 35.7% from $7.1 million in fiscal 2021.
Professional fees, consisting of accounting, audit, legal, security and management fees, grew 24.5% to $0.9 million, from $0.7 million in fiscal 2022. Management and security fees led the increase.
Payroll expense was $2.9 million, up 16.6% compared to $2.5 million for the 2021 fiscal year. We had an increase in payroll expense as our staff went from a 32-hour work week during the Covid-19 curfews, back to a reinstated 40 hours.
Director fees were $56,110, up 0.6% from $55,750 in fiscal 2021, respectively, an increase of $360, or 0.6%.
Lease expense was $1.8 million, up 10.3% from $1.6 million in fiscal 2021, reflecting the addition of two new store leases.
General and administrative expense was $3.9 million, and increase of 78.9% from $2.2 million in fiscal 2021, attributed to higher promotional expense, utilities, and depreciation expense.
Other Income/Expense
Total other expense for the year ended August 31, 2022, was $127,646 compared to total other expense of $65,282, for year ended August 31, 2021, an increase of $62,364 or 95.5%. In the current year we had $136,324 of interest expense offset by $8,678 of other income. In the prior year we had $113,282 of interest expense offset by $48,000 of other income.
Net Income
Total net income came in at $2.5 million, increasing 44.9% from $1.7 million in fiscal 2021. Our solid increase in net income reflects leverage on the acceleration in revenues, demonstrating our ability to scale and the success of the model.
Liquidity and Capital Resources
As of August 31, 2022, we had cash of $358 thousand, accounts receivable of $2.7 million and working capital of $2.9 million.
About OM Holdings International, Inc.
OM Holdings International, Inc. operates delivery services and grocery stores in the Caribbean, with a mobile application delivery platform that provides an expedient, contactless option for the transportation of people and essential goods. The company's storefront, OneMart, is the second-largest grocery store in the BVI. OHMI's delivery subsidiary, Rydeum, has partnered with Jamacia’s largest taxicab union, JUTA. The company also provides lumber and other construction supplies to contractors throughout the Caribbean. For more information, please visit https://omholdingsinc.com/.
Forward-Looking Statements
With the exception of the historical information contained in this news release, the matters described herein, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing. These statements, involve unknown risks and uncertainties that may individually or materially impact the matters discussed herein for a variety of reasons that are outside the control of the company, including, but not limited to, the company’s ability to raise sufficient financing to implement its business plan, the impact of the COVID-19 pandemic on the company’s business, operations and the economy in general, and the Company’s ability to successfully develop and commercialize its proprietary products and technologies. Readers are cautioned not to place undue reliance on these forward-looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the company’s filings with the SEC, which are available at the SEC’s website (www.sec.gov). The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Michael Robbins
Chief Financial Officer
T: 305-901-1497
Email: us.info@omholdingsinc.com
