Innovest Global Announces Third Quarter 2019 Earnings

Record Quarter in Sales, Gross Profit, and Net Income Validate Company’s Strategy and Market Approach

CLEVELAND--()--Innovest Global Inc. (OTC Markets: IVST), a diversified industrials company, today announced record financial results for the third quarter ended September 30, 2019.

  • Third quarter 2019 sales of $17.6 million eclipse previous second quarter 2019 record.
  • Gross profit for the quarter grew to $2.4 million, or 14% of sales.
  • Operating income for the quarter of $532 thousand, or 3% of sales, the first positive operating income reported since inception.
  • Third quarter 2019 year to date sales of $47.4 million, nearly surpassing the $50 million annual sales guidance provided at the beginning of the year (click here for guidance).

Innovest Global’s most profitable segment, Commercial Solutions grew over 80% organically in sales over the second quarter 2019 to $8.1 million at 28% gross profit. Wholesale Purchasing segment had sales of $9.4 million which represents a sequential decline of 26% due to seasonality with consistent gross profit of 1.2%.

The Company's Commercial Solutions segment is a fabricator of large curtainwall systems and provides energy consumption solutions for high-use commercial and industrial customers to lower demand, improve utilization and drastically reduce spending. The Wholesale Purchasing segment includes a distributor of building supplies to independent building materials providers.

Dan Martin, Chief Executive Officer and Chairman, said, “Our team was able to execute strong profitable growth over second quarter results in a limited capital environment. The growth trend in Commercial Solutions has surpassed our expectations by putting unique and valuable solutions into the market. Our Commercial Solutions segment has created a strong foundation entering 2020 that can now scale to yield meaningful returns.”

Notable information from the third-quarter 2019 financial report:

  • Third quarter ended September 30, 2019 net sales of $17.6 million; an increase of $16.6 million over the third quarter of 2018, and $0.2 million or 2% higher than the second quarter of 2019.
  • Nine months ended September 30, 2019 net sales of $47.4 million, an increase of $44.5 million over $2.9 million reported in the nine month period ended September 30, 2018.
  • Third quarter ended September 30, 2019 consolidated net profit of $393 thousand; an increase of $646 thousand over the third quarter of 2018.
  • Nine months ended September 30, 2019 diluted EPS of $0.003
  • Balance Sheet figures as of September 30, 2019:
    • Cash: $0.61 million
    • Current Assets: $15.6 million
    • Total Assets: $21.7 million
    • Current Liabilities: $17.2 million
    • Long-term debt: $0

The quarterly report can be found in its entirety by clicking here. Financial statements without notes are located at the end of this release.

As previously announced, the Company continues to focus on the uplist process to move to the QB Venture Market with plans to achieve this milestone in the near term pending regulatory approval. Additionally, Innovest Global is also prioritizing the spin-off of the biotechnology holdings to focus on the above industrial revenue opportunities. This action was expected to be completed no later than the end of the year but may ultimately be in first quarter 2020.

Mr. Martin added, “Now, more than ever, is a great time to be a stakeholder of Innovest Global. Our team has proven Innovest’s value proposition to our markets even under growth capital constraints and remains focused and dedicated to taking the Company to the next level with strategic execution, capital structure formation, and market share growth.”

About Innovest Global, Inc.

Innovest Global, Inc. (OTC Markets: IVST) is a diversified industrial company providing value-added solutions across multiple business sectors. The Company has a commitment to building long-term shareholder value through acquisitions and organic growth achieved through the “Innovest Way”, the Company’s internal path to success. For more information visit http://innovestglobal.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical facts included in this press release are forward-looking statements. These statements relate to future events or to the Company's future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown, uncertainties and other factors which are, in some cases, beyond the Company's control which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects the Company's current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to operations, results of operations, growth strategy and liquidity. Such risks, uncertainties and other factors, which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the OTC Markets. The Company assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Innovest Global, Inc.
Consolidated Balance Sheet
 

Period Ended
September 30,

2019

 

2018

 
Current Assets:
Cash and cash equivalents

$

614,988

$

390,186

Accounts receivable:
Trade

 

7,840,023

 

320,863

Retentions

 

843,922

 

-

Inventory

 

40,925

 

4,915

Cost in excess of billings

 

6,300,554

 

-

Notes Receivable

 

-

 

25,000

Prepaid expenses and other current assets

 

8,286

 

116,271

Total current assets

$

15,648,697

$

857,235

 
Property and Equipment – Net

 

309,170

 

-

Goodwill

 

5,295,770

 

82,381

Intangible Assets ‑ Net

 

324,000

 

-

 
Other Assets:
Leasehold Improvements

 

5,000

 

-

Investment

 

141,742

 

-

Other noncurrent assets

 

12,410

 

132,000

Total other assets

$

159,152

$

132,000

 
Total assets

$

21,736,788

$

1,071,616

 
Innovest Global, Inc.
Consolidated Balance Sheet
(Continued)

Period Ended
September 30,

2019

 

2018

Current Liabilities:
Accounts payable

 

9,815,323

 

 

320,026

 

Bank line of credit

 

348,640

 

 

-

 

Notes payable

 

107,576

 

 

-

 

Bond Payable

 

5,630,755

 

 

-

 

Deposit on Assets

 

644,695

 

 

-

 

 
Accrued and other current liabilities:
Accrued Compensation

 

236,184

 

 

-

 

Accrued Expenses

 

24,769

 

 

12,472

 

Other accrued liabilities

 

395,929

 

 

165,779

 

Total current liabilities

$

17,203,870

 

$

498,277

 

 
Shareholder Loan Payable

 

162,300

 

 

-

 

Stock Guarantee Liability

 

4,449,000

 

 

-

 

Share Issuance Liability

 

750,000

 

 

-

 

Other Long Term Liabilities

 

44,812

 

 

-

 

Total liabilities

$

22,609,982

 

$

498,277

 

 
Stockholders' Equity (Deficit):
Common stock, par value $0.001 per share:
Authorized shares: 500,000,000 in 2018 and 2017
Issued and outstanding shares: 148,338,959 at September 30, 2019 and 109,188,071 at September 30, 2018

 

148,339

 

 

109,188

 

Preferred stock, par value $0.001 per share:
Authorized shares: 10,000,000 in 2019 and 2018
Issued and outstanding shares: 1,250,000 at September 30, 2019 and 1,250,000 at September 30, 2018

 

1,250

 

 

1,250

 

Stock subscriptions, common shares: 0 at September 30, 2019 and 16,193,183 at September 30, 2018

 

-

 

 

312,000

 

Additional paid‑in capital

 

3,884,973

 

 

996,453

 

Retained deficit

 

(4,907,756

)

 

(845,552

)

Total stockholders' equity (deficit)

$

(873,194

)

$

573,339

 

 
Total liabilities and stockholders' equity (deficit)

$

21,736,788

 

$

1,071,616

 

 
Innovest Global, Inc.
Consolidated Statement of Income (Loss)
 

Three months ended
September 30,

2019

 

2018

 
Net Sales

$

17,638,128

 

$

1,064,152

 

Cost of Sales

 

15,218,258

 

 

602,351

 

Gross Profit

$

2,419,870

 

$

461,801

 

 
Operating Expenses

 

1,887,907

 

 

722,978

 

Operating Income / (Loss)

$

531,963

 

$

(261,177

)

 
Non-operating Income (Expenses)
Interest income
Other income

 

(2,792

)

 

8,380

 

Loss on Asset Sale - A/R

 

(135,798

)

 

-

 

Fair value adjustment for stock guarantee liability credit

 

-

 

 

-

 

Total nonoperating income

 

(138,589

)

 

8,380

 

 
Consolidated Net Profit/(Loss)

$

393,374

 

$

(252,797

)

 
Net Gain/(Loss) Per Share ‑ Basic

$

0.003

 

$

(0.002

)

Net Gain/(Loss) Per Share ‑ Diluted

$

0.001

 

$

(0.001

)

 
Weighted average Common Shares Outstanding ‑ Basic

 

148,338,959

 

 

109,188,071

 

Weighted average Fully Diluted Common Shares

 

273,338,959

 

 

234,188,071

 

 
Innovest Global, Inc.
Consolidated Statement of Income (Loss)
 

Nine months ended
September 30,

2019

 

2018

 
Net Sales

$

47,423,657

 

$

2,874,323

 

Cost of Sales

 

44,516,698

 

 

1,512,362

 

Gross Profit

$

2,906,959

 

$

1,361,961

 

 
Operating Expenses

 

5,086,633

 

 

1,993,443

 

Operating Income / (Loss)

$

(2,179,674

)

$

(631,482

)

 
Non-operating Income (Expenses)
Interest income
Other income

 

68,162

 

 

31,950

 

Loss on Asset Sale - A/R

 

(384,755

)

Fair value adjustment for stock guarantee liability credit

 

2,470,000

 

Total nonoperating income

 

2,153,407

 

 

31,950

 

 
Consolidated Net Profit/(Loss)

$

(26,267

)

$

(599,532

)

 
Net Gain/(Loss) Per Share ‑ Basic

$

(0.000

)

$

(0.005

)

Net Gain/(Loss) Per Share ‑ Diluted

$

(0.000

)

$

(0.003

)

 
Weighted average Common Shares Outstanding ‑ Basic

 

148,338,959

 

 

109,188,071

 

Weighted average Fully Diluted Common Shares

 

273,338,959

 

 

234,188,071

 

 
Innovest Global, Inc.
Consolidated Statement of Cash Flows

Nine Month Period
Ended September 30,

2019

 

2018

 
Net Gain/ (Loss)

$

(26,267

)

$

(599,532

)

 
Cash Flows from Operating Activities
Depreciation & Amortization

 

78,437

 

 

-

 

Adjustment for stock guarantee liability

 

(2,470,000

)

 

-

 

Change in non current assets

 

16,762

 

 

-

 

Changes in operating assets and liabilities that (used) provided cash and cash equivalents:
Accounts receivable

 

(3,875,241

)

 

(322,415

)

Inventory

 

(10,554

)

 

979

 

Costs and estimated earnings in excess of billings

 

(6,300,554

)

 

-

 

Prepaid expenses and other assets

 

117,897

 

 

(116,271

)

Accounts payable

 

6,237,644

 

 

363,937

 

Accrued expenses

 

106,785

 

 

12,472

 

Billings in excess of costs and estimated earnings

 

(1,523,824

)

 

-

 

Accrued and other liabilities

 

235,958

 

 

51,183

 

Net cash used in operating activities

 

(7,412,957

)

 

(609,647

)

 
Cash Flows from Investing Activities
Leasehold Improvements

 

(5,000

)

 

-

 

Investment in StemVax

 

-

 

 

(17,500

)

Net cash provided by (used in) investing activities

 

(5,000

)

 

(17,500

)

 
Cash Flows from Financing Activities
Proceeds on stock subscriptions

 

342,000

 

 

1,013,500

 

Proceeds from bond payable

 

5,630,755

 

 

-

 

Proceeds from cash advances (deposit on assets)

 

644,695

 

 

-

 

Proceeds from shareholder loan

 

162,300

 

 

-

 

Proceeds from stock issuances

 

459,293

 

 

-

 

Net cash provided by financing activities

 

7,239,042

 

 

1,013,500

 

 
Net Increase in Cash and Cash Equivalents

$

(178,915

)

$

386,353

 

 
Cash and Cash Equivalents – Beginning of Period

$

793,903

 

$

3,833

 

Cash and Cash Equivalents – End of Period

$

614,988

 

$

390,186

 

 
Innovest Global, Inc.
Segment Reporting
 
 

Three Months Ended

September 30, 2019

 

September 30, 2018

 

June 30, 2019

Revenues
Commercial Solutions

 

8,166,118

 

1,064,152

 

4,516,509

 

Wholesale Purchasing

 

9,472,010

 

-

 

12,845,001

 

Total Revenues

$

17,638,128

$

1,064,152

$

17,361,510

 

 
Gross Profit
Commercial Solutions

 

2,305,198

 

461,801

 

(390,773

)

Wholesale Purchasing

 

114,672

 

-

 

142,698

 

Total Gross Profit

$

2,419,870

$

461,801

$

(248,075

)

 

Nine Months Ended

September 30, 2019

 

September 30, 2018

Revenues
Commercial Solutions

 

16,305,854

 

2,874,323

Wholesale Purchasing

 

31,117,803

 

-

Total Revenues

$

47,423,657

$

2,874,323

 
Gross Profit
Commercial Solutions

 

2,572,194

 

1,361,961

Wholesale Purchasing

 

334,765

 

-

Total Gross Profit

$

2,906,959

$

1,361,961

 

Contacts

Investor Contact:
Indrani Egleston, EVP, Chief Financial Officer
(440) 644-1027
info@innovestglobal.com

Contacts

Investor Contact:
Indrani Egleston, EVP, Chief Financial Officer
(440) 644-1027
info@innovestglobal.com