NEW BERLIN, Wis.--(BUSINESS WIRE)--(Numbers in thousands, except per share amounts)
FIRSTIME DESIGN LIMITED (FTDL) today announced net sales for the six months ended June 30, 2017 of $3,516, a decrease of 8.5% compared to the same period last year. The Company reported a consolidated net loss of $169 or ($0.11) per common share for the six month period, with a second quarter net loss of $361 or ($0.24) per common share. The loss for the quarter was attributed in part with the acquisition costs related to InnerSpace Luxury Products, LLC (“InnerSpace”) of $263. The Company ended the quarter with $2,495 of cash and cash equivalents on the balance sheet.
FirsTime acquired 100% of InnerSpace, located in Dalton GA, through a stock purchase on June 16, 2017. InnerSpace is a distributor of high quality custom bedding and home goods with a strong online and e-commerce platform. Q2 2017 financial results included 15 days of InnerSpace activity. Assuming InnerSpace was acquired on January 1, 2017, the combined net sales would have been $6,736, a 75.4% increase over the six months ended June 30, 2016. These figures are compiled / unaudited accounts of the normalized performance of the combined operations intended to give shareholders a snapshot of the financial impact of the acquisition of InnerSpace.
Christopher D. Bering, Chairman and Chief Executive Officer of FTDL, commented, “We are very pleased with both the addition of high quality product lines and with the quality of the people and talent who have joined our team as a result of the acquisition of InnerSpace. InnerSpace is an online retailer of home décor products, similar to our core product offering at FirsTime, as well as a distributor of mattresses and other related products for the Over the Road Truck Industry called the Mobile InnerSpace division. We feel that both the online retailer of home décor, as well as the Mobile InnerSpace division, provide significant growth opportunities. We have already begun to integrate our design expertise and innovative marketing approach at InnerSpace which will allow us to reveal exciting new products in 2018.”
Andrew Bass, a member of FTDL’s Board of Directors said, “More opportunity and synergies are being discovered each week as we move through the overall integration process. We feel that the overlap between InnerSpace and FirsTime’s home décor businesses should continue to provide ample profit margins to reinvest into robust revenue growth going forward. The financial benefit that InnerSpace is expected to provide comes at an important time in our history as we continue to expand our product offerings and further diversify our market channels in order to de-risk FirsTime as a whole.”
About FirsTime Design Limited
FirsTime Design Limited, through its subsidiary, FirsTime Manufactory, Inc., is an industry leading designer, marketer and distributor of decorative home décor products sold through major-national retailers and e-commerce channels. More information can be found at: www.firstimeonline.com or http://www.otcmarkets.com/stock/FTDL/quote.
Cautionary Statement Regarding Forward-Looking Statements
This document contains certain forward-looking statements about FirsTime and InnerSpace, including statements that involve risks and uncertainties concerning FirsTime’s acquisition of InnerSpace and general business outlook. When used in this document, the words "anticipates", "can", "will", "look forward to", "expected" and similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of FirsTime, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this document due to a number of risks and uncertainties. Potential risks and uncertainties include, among others, the possibility that the anticipated synergies of FirsTime and InnerSpace may not be achieved, the combined operations may not be successfully integrated in a timely manner, if at all, general economic conditions in regions in which FirsTime and InnerSpace do business, and the possibility that FirsTime or InnerSpace may be adversely affected by other economic, business, and/or competitive factors. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of FirsTime or InnerSpace.
