ToughBuilt Anticipates Positive Operating Cash Flow by Q3 2024
February 13 2024 - 8:00AM
ToughBuilt Industries, Inc. ("ToughBuilt”
or the “Company”) (NASDAQ: TBLT), announced today its goal
of achieving positive operating cash flow by the third quarter of
fiscal 2024. The Company intends to focus on generating revenue
through the sales of newly launched products in various categories,
implementing cost-saving measures, and considering price
adjustments where necessary. ToughBuilt is also exploring expansion
into new markets and engaging with online and brick-and-mortar
global retail partners.
Michael Panosian, ToughBuilt Chief Executive and Co-Founder,
expressed optimism about the Company’s progress, stating, “I am
pleased to see our revenue and gross margins growing, and the
Company approaching the point of covering its SG&A expenses. By
focusing on the continued sales of our new products in
revenue-generating categories, attracting new customers, and
implementing efficiency measures while making careful adjustments
to pricing, we anticipate achieving positive operating cash flow by
Q3 2024.”
Mr. Panosian continued, “Our SG&A cost savings come as the
result of lowered shipping rates, consolidated 3PL operations and
cutbacks in overhead. We anticipate implementing additional
workforce reductions and senior management salary reductions which
will contribute to our goal of achieving operating cash flow
positivity.” He further acknowledged the Company’s dedicated team,
steadfast retail partners, and committed shareholders for their
ongoing support during this phase of growth.
ABOUT TOUGHBUILT INDUSTRIES, INC.
ToughBuilt is an innovative advanced product
developer, manufacturer, and distributor with emphasis on
innovative products, currently focused on tools and other
accessories for the professional and do-it-yourself construction
industries. We market and distribute various home improvement and
construction product lines for both the do-it-yourself and
professional markets under the TOUGHBUILT brand name, within the
global multibillion dollar per year tool market industry. All our
products are designed by our in-house design team. Since launching
product sales in 2013, we have experienced significant annual sales
growth. Our current product line includes three major categories,
with several additional categories in various stages of
development, consisting of Soft Goods & Kneepads and Sawhorses
& Work Products. Our mission is to provide products to the
building and home improvement communities that are innovative, of
superior quality derived in part from enlightened creativity for
our end users while enhancing performance, improving well-being,
and building high brand loyalty. Additional information about the
Company is available at: https://www.toughbuilt.com/.
FORWARD-LOOKING
STATEMENTS
This press release contains “forward-looking
statements.” Such statements include, but are not limited to,
statements regarding the intended use of proceeds from the offering
and may be preceded by the words “intends,” “may,” “will,” “plans,”
“expects,” “anticipates,” “projects,” “predicts,” “estimates,”
“aims,” “believes,” “hopes,” “potential” or similar words.
Forward-looking statements are not guarantees of future
performance, are based on certain assumptions, and subject to
various known and unknown risks and uncertainties, many of which
are beyond the Company’s control, and cannot be predicted or
quantified and consequently, actual results may differ materially
from those expressed or implied by such forward-looking statements,
including but not limited to our achieving operating cash flow
positivity. Such risks and uncertainties include, without
limitation, risks and uncertainties associated with (i) the impact
the war in Ukraine and the war in the Middle East on our business,
(ii) supply chain disruptions, (iii) market acceptance of our
existing and new products, including the Company’s StackTech®
mobile stacking toolbox system (iv) delays in bringing products to
key markets, (v) an inability to secure regulatory approvals for
the ability to sell our products in certain markets, (vi) intense
competition in the industry from much larger, multinational
companies, (vii) product liability claims, (viii) product
malfunctions, (ix) our limited manufacturing capabilities and
reliance on subcontractors for assistance, (x) our efforts to
successfully obtain and maintain intellectual property protection
covering our products, which may not be successful, (xi) our
reliance on single suppliers for certain product components, (xii)
the fact that we will need to raise additional capital to meet our
business requirements in the future and that such capital raising
may be costly, dilutive or difficult to obtain, (xiii) the fact
that we conduct business in multiple foreign jurisdictions,
exposing us to foreign currency exchange rate fluctuations,
logistical and communications challenges, burdens and costs of
compliance with foreign laws and political and economic instability
in each jurisdiction, and (xiv) market and other conditions. More
detailed information about the Company and the risk factors that
may affect the realization of forward-looking statements is set
forth in the Company’s filings with the Securities and Exchange
Commission (SEC), including the Company’s Annual Report on Form
10-K and its Quarterly Reports on Form 10-Q. Investors and security
holders are urged to read these documents free of charge on the
SEC’s web site at http://www.sec.gov. The Company assumes no
obligation to publicly update or revise its forward-looking
statements as a result of new information, future events, or
otherwise, except as required by law.
Investor Relations Contact: David Hanover
toughbuilt@kcsa.com, KCSA Strategic Communications
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