TOMI Environmental Solutions Inc (TOMZ) Q2 2024 Earnings Call Highlights: A Return to ...

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In This Article:

  • Revenue: $3.013 million, a 9% increase from $2.775 million in the prior year.

  • Gross Profit: 61.5%, up from 61.3% in the previous year.

  • Operating Profit: $121,000, compared to an $89,000 loss in the prior year.

  • Net Profit: $30,000, compared to a net loss of $89,000 in the previous year.

  • Cash and Cash Equivalents: Approximately $709,000 as of June 30, 2024.

  • Working Capital: $6.8 million.

  • Shareholders' Equity: $7.3 million.

  • Mobile Equipment Revenue: Over 60% of total revenue.

  • BIT Solutions Sales: Increased by approximately 171% over the first quarter.

  • Year-to-Date Sales: Approximately $5.6 million.

  • iHP Service Revenue: Almost $1 million year-to-date.

  • EMAQ Partnership: Contributed $1 million in sales for Q2 and will generate approximately $60,000 in annual BIT Solution sales.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • TOMI Environmental Solutions Inc (NASDAQ:TOMZ) returned to profitability in Q2 2024, marking a significant milestone for the company.

  • Revenue for the quarter exceeded $3 million, representing a 170% sequential increase compared to the previous quarter.

  • BIT Solutions sales increased by approximately 171% over the first quarter, contributing to strong financial performance.

  • The company has secured approximately $5.6 million in sales year-to-date, indicating strong future growth potential.

  • TOMI expanded its global footprint with new customers in Canada, Mexico, Philippines, and the UAE, enhancing its market presence.

Negative Points

  • The company experienced a significant increase in accounts receivable, raising concerns about cash flow and collection efficiency.

  • Despite the return to profitability, the company's historical results have been described as 'lumpy,' indicating potential volatility in future earnings.

  • The company did not secure a DoD grant for the ethylene oxide market, which could have provided additional funding and opportunities.

  • There is a need for more awareness and understanding of TOMI's products in certain markets, such as data centers, which may slow adoption.

  • The company faces challenges in penetrating certain markets, such as the ambulance market, which requires long-term processes and education.

Q & A Highlights

Q: How do you manage visibility and inventory for mobile equipment sales? A: (Elissa Shane, COO) Mobile equipment sales are typically immediate delivery. Orders come in, and we deliver them immediately. We maintain an inventory of over $4 million, mostly composed of mobile equipment.

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