Applied UV Reveals 88.5% Revenue Increase, 29.6% Gross Profit Increase and 49% Net Loss Improvement in Latest Quarterly Report

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Applied UV, Inc. AUVI announced its financial results for the third quarter of 2021. The company also provided key operational metrics on pro forma combined results of operations for the three and nine-month periods ended September 30, 2021, in accordance with Article 11 of Regulation S-X, which assumes the acquisitions of Akida, KES/JJS, and Scientific Air Management occurred on January 1, 2021. 

Applied UV believes such combined information is useful to compare how the combined companies would have performed over time against the performance of the company without such acquisitions.

Financial Results

• The third quarter net sales increased by 127.6% to $3,551,564 from $1,560,633 in the third quarter of 2020. Due to the continuing logistics and transportation challenges in many regions, the company experienced delays in fulfilling orders in the second quarter. As previously expected, many of those orders shipped to the customer in the third quarter while others are expected to ship in the fourth quarter.
• Net loss for the third quarter of 2021 was $1,080,805, compared to a net loss of $890,559 in the third quarter of 2020. The net loss in 2021 was due primarily to an increase in SG&A costs to improve future operations and expand the disinfection segment of the company's business. Applied UV’s net loss for the third quarter of 2021 improved more than 49% compared to the second quarter of 2021.
• Net sales for the nine months ended September 30, 2021, increased by 63.9% to $7,748,499 from $4,727,631 in the nine months ended September 30, 2020 [restated].
• Net loss in the nine months ended September 30, 2021, was $4,251,987 compared to a net loss of $975,128 in the nine months ended September 30, 2020. The net loss in 2021 was due primarily to an increase in SG&A costs to improve future operations and expand the disinfection segment of our business.
• The Company had approximately $11.7 million of cash available on its consolidated balance sheet as of September 30, 2021.

Q Saeed, Applied UV's Chief Executive Officer said, "In the third quarter we delivered strong results in an environment that has been impacted by ongoing global supply chain challenges. Our teams have done a commendable job navigating supply chain bottlenecks to deliver products to our customers. Sales for Q3 and the nine-month period of 2021 grew over 127% and 63%, respectively, driven by continued strong demand for our SteriLumen product portfolio and a gradual recovery in the hospitality market for our MunnWorks subsidiary.”

Saeed added, "During the quarter, we continued to execute our growth strategy through synergistic acquisitions to expand the commercialization of our product portfolio to drive both short and long-term growth. The acquisition of KES in Q3, followed by Scientific Air Management in early Q4, marked a major step forward in building out our air purification business to create a broad portfolio of patented, air disinfection and purification technologies.

“Under the SteriLumen brand, we are now capable of addressing virtually every major commercial market, including hospitals and assisted living facilities, schools, hospitality, museums, stadiums, food processing facilities and other large public spaces. In addition to the strengthening of our product portfolio, these two acquisitions significantly enhance our financial profile, adding approximately $10-14 million in current annualized revenues while being immediately accretive to our earnings per share. We continue to build momentum, and we are just beginning to see the tangible results from our investments in these businesses."

Recent Announcements & Additional Highlights

• Completed $13.8 million Offering of Series A Cumulative Perpetual Preferred Stock (non-convertible)
• Applied UV closed on the acquisition of KES Science & Technology, Inc. ("KES") to manufacture and sell its patented, air disinfection and purification technologies and bolster SteriLumen's presence in major markets including food distribution, wineries, and the retail sector. KES Airocide® systems are purpose-built for the food processing, storage, and transportation industries and are expected to contribute approximately $5-7 million in revenue in 2022 and be immediately accretive to Applied UV's earnings per share.
• In Q3, the company continued its global commercialization strategy, announcing multiple installations at museums, wineries, a U.S. military facility, hospitals, and schools as enhanced infection prevention protocols become standard practice.
• Signed a Master Distributor agreement with Lootah Batta Water and Environment, LLC for the distribution of the Airocide® consumer and commercial air purification systems within the United Arab Emirates.
• Announced testing results from an independent third-party laboratory confirming that the SteriLumen's Airocide® HD Air Purification System kills SARS-CoV-2 (COVID-19 Virus).
• On October 13 the Company acquired substantially all of the assets of Scientific Air Management which is expected to significantly strengthen its ability to address the growing health challenge caused by Hospital Associated Infections. The acquisition provides established access to large hospitals and healthcare facilities throughout N. America via a premier medical supply distributor, is expected to contribute approximately $5~$7 million in sales to the Company's current annual revenue and be immediately accretive to Applied UV's earnings per share.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.