4 unchanged sentences
Three Months Ended
+Added: March 31, 2023
+Added: March 31, 2022
Cost Of Goods Sold
1 unchanged sentence
Income from operations
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: March 31, 2023
+Added: March 31, 2022
Cost Of Goods Sold
4 unchanged sentences
(Dollars in thousands)
−Removed: December 31, 202 2
−Removed: December 31, 202 1
+Added: March 31, 2023
+Added: March 31, 2022
Products purchased for resale
Total Net Sales
−Removed: Six Months Ended
+Added: Nine Months Ended
(Dollars in thousands)
−Removed: December 31, 2022
−Removed: December 31, 2021
+Added: March 31, 2023
+Added: March 31, 2022
Products purchased for resale
Total Net Sales
−Removed: Three Months Ended December 31, 2022 Compared to Three Months Ended December 31, 2021
−Removed: Sales for the three months ended December 31, 2022 were approximately $8,135,000, a 13.2% increase from the comparable prior year period.
+Added: Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022
+Added: Sales for the three months ended March 31, 2023 were approximately $6,903,000, a 2.2% increase from the comparable prior year period.
The major components of net sales, by product, are as follows:
Liberator sales - Sales of Liberator branded products increased $1,230,000, or 38%, during the quarter from the comparable prior year period, due primarily to higher sales through the Company’s e-commerce site, Liberator.com, and higher sales through Amazon.
−Removed: Jaxx sales – Jaxx product sales decreased 11% from the prior year second quarter to $2,088,000, primarily due to reallocating our production resources to fulfill increased demand for the Liberator products.
+Added: Jaxx sales – Jaxx product sales decreased 36% from the prior year third quarter to $1,220,000, primarily due to reallocating our production resources to fulfill increased demand for the Liberator products and overall market demand for outdoor furniture products.
Avana sales – Net sales of Avana products decreased 12% during the quarter from the comparable prior year quarter to $646,000.
Sales of this product line have been impacted by lower-priced competitive products in the marketplace, production constraints which resulted in longer delivery lead times which resulted in lower sales through drop ship channels including Amazon, Overstock and Wayfair.
−Removed: Products purchased for resale – This product category decreased by 24%, or $120,000, from the prior year second quarter due to lower sales of certain products through our e-commerce website, Liberator.com.
+Added: Products purchased for resale – This product category decreased by 37%, or $89,000, from the prior year third quarter due to lower sales of certain products through our e-commerce website, Liberator.com.
Gross margin .
Gross profit, derived from net sales less the cost of goods sold, includes the cost of materials, direct labor, manufacturing overhead, freight costs, royalties and depreciation.
−Removed: Gross profit margin, as a percentage of sales, increased to 28% from 22% in the prior year second quarter.
−Removed: Gross profit increased to $2,259,000 from $1,577,000 in the prior year second quarter.
+Added: Gross profit margin, as a percentage of sales, was 26% compared to 27% in the prior year third quarter.
+Added: Gross profit decreased to $1,769,000 from $1,794,000 in the prior year third quarter.
Operating expenses .
−Removed: Total operating expenses for the three months ended December 31, 2022 were approximately 18% of net sales, or approximately $1,476,000, compared to 19% of net sales, or approximately $1,326,000, for the same period in the prior year.
+Added: Total operating expenses for the three months ended March 31, 2023 were approximately 20% of net sales, or approximately $1,386,000, compared to 19% of net sales, or approximately $1,261,000, for the same period in the prior year.
Other income (expense) .
−Removed: Interest expense during the second quarter increased slightly from approximately ($84,000) in fiscal 2021 to approximately ($88,000) during the second quarter of fiscal 2022.
+Added: Interest expense during the third quarter increased slightly from approximately ($81,000) in fiscal 2022 to approximately ($90,000) during the third quarter of fiscal 2023.
The increase was primarily due to higher average borrowing balances.
−Removed: Six Months Ended December 31, 2022 Compared to Six Months Ended December 31, 2021
−Removed: Sales for the six months ended December 31, 2022 were approximately $16,195,000, a 21% increase from the $13,411,000 recorded in the comparable prior year period.
+Added: Nine Months Ended March 31, 2023 Compared to Nine Months Ended March 31, 2022
+Added: Sales for the nine months ended March 31, 2023 were approximately $23,098,000, a 15% increase from the $20,164,000 recorded in the comparable prior year period.
The major components of net sales, by product, are as follows:
−Removed: Liberator sales - Sales of Liberator branded products increased $3,967,000, or 66%, during the first six months from the comparable prior year period, due primarily to greater sales through the company’s Liberator.com website and through Amazon.com;
−Removed: Jaxx sales – Jaxx product sales decreased $358,000, or 8%, from the prior year first half, primarily due to reallocating our production resources to fulfill increased demand for the Liberator products;
−Removed: Avana sales – Net sales of Avana products decreased $435,000, or 28%, to $1,096,000 during the first six months from the comparable prior year period.
+Added: Liberator sales - Sales of Liberator branded products increased $5,198,000, or 56%, during the nine months from the comparable prior year period, due primarily to greater sales through the company’s Liberator.com website and through Amazon.com;
+Added: Jaxx sales – Jaxx product sales decreased $1,043,000, or 17%, from the prior year nine months, primarily due to reallocating our production resources to fulfill increased demand for the Liberator products and decrease market demand for outdoor furniture products;
+Added: Avana sales – Net sales of Avana products decreased $524,000, or 23%, to $1,742,000 during the nine months from the comparable prior year period.
Sales of this product line have been impacted by lower-priced competitive products in the marketplace, production constraints which resulted in longer delivery lead times which resulted in lower sales through drop ship channels including Amazon, Overstock and Wayfair;
−Removed: Products purchased for resale – This product category decreased by $233,000, or 25%, from the prior year first half due to lower sales of certain products through our e-commerce website, Liberator.com.
+Added: Products purchased for resale – This product category decreased by $392,000, or 29%, from the prior year nine months due to lower sales of certain products through our e-commerce website, Liberator.com.
Gross margin .
Gross profit, derived from net sales less the cost of goods sold, includes the cost of materials, direct labor, manufacturing overhead, freight costs and depreciation.
−Removed: Gross profit margin, as a percentage of sales, increased to 26% from 23% in the prior year first half.
−Removed: Gross profit increased by 38% to $4,232,000 from $3,076,000 in the prior year first six months.
+Added: Gross profit margin, as a percentage of sales, increased to 26% from 24% in the prior year nine months.
+Added: Gross profit increased by 23% to $6,001,000 from $4,870,000 in the prior year nine months.
Operating expenses .
−Removed: Total operating expenses for the six months ended December 31, 2022 were 18% of net sales, or approximately $2,873,000, compared to 19% of net sales, or approximately $2,502,000, for the same period in the prior year.
+Added: Total operating expenses for the nine months ended March 31, 2023 were 18% of net sales, or approximately $4,259,000, compared to 19% of net sales, or approximately $3,763,000, for the same period in the prior year.
Of the $496,000 increase, approximately $138,000 was due to higher advertising expense.
Other income (expense) .
−Removed: Interest expense during the first six month decreased from expense of approximately ($180,000) in fiscal 2021 to expense of approximately ($171,000) during the first half of fiscal 2022.
+Added: Interest expense during the nine months increased from expense of approximately ($261,000) in fiscal 2022 to expense of approximately ($262,000) during the nine months of fiscal 2023.
Variability of Results
7 unchanged sentences
The following table summarizes our cash flows:
−Removed: Six Months Ended
+Added: Nine Months Ended
(Dollars in thousands)
3 unchanged sentences
Cash used in financing activities
−Removed: As of December 31, 2022, our cash and cash equivalents totaled $1,875,371, compared to $1,080,564 in cash and cash equivalents as of December 31, 2021.
+Added: As of March 31, 2023, our cash and cash equivalents totaled $1,352,619, compared to $935,110 in cash and cash equivalents as of March 31, 2022.
For purposes of reporting cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
1 unchanged sentence
Operating Activities
−Removed: Net cash provided by operating activities was $1,402,000 during the six months ended December 31, 2022 compared to $444,000 net cash provided by operating activities in the six months ended December 31, 2021.
−Removed: The primary components of the cash provided by operating activities in the current year is the net income of $1,188,000, a decrease in accounts receivable of $159,000, offset in part by an increase in inventory of $114,000, and a decrease in accounts payable of $61,000.
+Added: Net cash provided by operating activities was $906,000 during the nine months ended March 31, 2023 compared to $263,000 net cash provided by operating activities in the nine months ended March 31, 2022.
+Added: The primary components of the cash provided by operating activities in the current year is the net income of $1,480,000, and a decrease in accrued expenses and payroll of $293,000, offset in part by an increase in accounts receivable of $262,000, increase in inventory of $624,000, and a decrease in accounts payable of $344,000.
Investing Activities
−Removed: Cash used in investing activities in the six months ended December 31, 2022 was $54,000 and related to the purchase and installation of certain production equipment during the period.
+Added: Cash used in investing activities in the nine months ended March 31, 2023 was $113,000 and related to the purchase and installation of certain production equipment during the period.
Financing Activities
−Removed: Cash used in financing activities during the six months ended December 31, 2022 of $332,000 was primarily attributable to the repayment of the line of credit and payments made on equipment notes.
+Added: Cash used in financing activities during the nine months ended March 31, 2023 of $299,000 was primarily attributable to the repayment of the line of credit and payments made on equipment notes.
During fiscal 2022, we experienced increases in various raw material costs and increases in labor and transportation costs.
2 unchanged sentences
Non-GAAP Financial Measures
−Removed: Reconciliation of net income to Adjusted EBITDA for the six months ended December 31, 2022 and 2021:
+Added: Reconciliation of net income to Adjusted EBITDA for the nine months ended March 31, 2023 and 2022:
(Dollars in thousands)
−Removed: Six months ended December 31,
+Added: Nine months ended March 31,
Plus interest expense, net
11 unchanged sentences
Accordingly, our liquidity and capital resources are not subject to off-balance sheet risks from unconsolidated entities.
−Removed: As of December 31, 2022, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
+Added: As of March 31, 2023, we did not have any off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.
Critical accounting policies
8 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.