Utilized UV, Inc. (NasdaqCM: AUVI) (“Utilized UV” or the “Firm”), a pathogen elimination expertise firm that applies the facility of narrow-range ultraviolet gentle (“UVC”) for floor areas and catalytic bioconversion expertise for air purification to destroy pathogens safely, completely, and routinely, introduced its monetary outcomes for the fourth quarter and full yr 2021.
The Firm can also be offering key operational metrics on outcomes of operations for the three and 12-month intervals ended December 31, 2021.
Latest Enterprise Highlights
- Expanded distribution functionality of Airocide(TM) with three-year distribution settlement with one in all Europe’s largest Distributors, Plandent Division, a completely owned unit of Planmeca Oy, initially concentrating on 21,000 dental suppliers in Scandinavia with the potential to develop into Europe
- Additional penetrated high-growth hashish market with massive order from U.S. distributor
- Entered Jail and Correctional Services vertical market with preliminary and follow-on orders from Tennessee Division of Corrections
- Bolstered steadiness sheet with $19.3 million in internet proceeds from public choices in 2021
- Introduced a standard share repurchase program by means of September 2022 to repurchase as much as a million shares in open market transactions
- Subsequent to the top of the primary quarter 2022, accomplished the acquisition of Visionmark, increasing our product providing past high-quality mirrors to incorporate furnishings permitting Munnworks to compete head-to-head in new development and transforming within the luxurious hospitality market
Strategic Positioning and Market Technique
- Improved margins because of air purification merchandise being excluded from 25% China Tariff and improved product combine
- Backlog and pipeline constructing throughout a number of verticals together with, Dental, Lengthy-Time period Care, Hospital, Wine and Colleges (EANS II)
- Launching focused gross sales and advertising initiatives within the second quarter of 2022 to coincide with latest Authorities “Clear The Air” initiatives aimed toward hashish, faculties meals preservation and transportation, faculties, long-term care (CMS), hospitality and dental verticals. Packages will embody digital, radio, a promotional supplier portal, new internet, consolidated and focused social media with the aim of driving gross sales within the U.S.
- Exploring three way partnership and strategic partnerships providing product placement pilot packages with established corporations in long run care, hospitality, logistics meals preservation and transportation in addition to floral verticals offering a primary to market aggressive benefit with market leaders (shopper & business)
- Strengthening of the Senior Government Workforce with CEO announcement anticipated.
Max Munn, Utilized UV’s President and Interim Chief Government Officer commented, “2021 was a yr of strategic acquisitions that diversified our enterprise and enabled us to shortly construct a extremely efficient air and floor pathogen elimination platform backed by impartial medical analysis. We’ve got made substantial progress in figuring out methods to additional leverage the portfolio of property that we imagine will allow us to deal with the rising international demand for options that safely and successfully cease the unfold of contagious airborne illnesses and are simple to implement. Key wins with high-profile prospects that serve massive venues such because the Palace of Versailles in France and Uruguayan Faculty Programs, Armed Forces Analysis Institute, US Military Aberdeen Proving Grounds, which additional validate each our technique in addition to present referenceable installations for brand new enterprise pursuits validating our air purification expertise efficacy, effectiveness, and ease of use.”
Munn added, “Globally, scientists, governments and healthcare specialists have been advocating for bettering air high quality to regulate the transmission of airborne pathogens. Now, Governments are mandating, and extra importantly, funding and, driving, the implementation of options which might be confirmed to enhance air high quality and shield its populations. There have been 4 authorities initiatives introduced within the first quarter of 2022 together with CMS’ (Facilities for Medicare and Medicaid) $3,000 reimbursement program for long-term care services, the $2.5B EANS II grants for personal faculties which offers funds for cellular and put in air purification expertise, the EPA’s new Clear Air Pointers and lastly, the White Home’s Clear Air Initiative. Our go-to-market plans embody the selective pursuit of alternatives which might be benefiting from these market tailwinds. We’ve got a stable steadiness sheet, a rising pipeline and are on robust footing from an operational perspective to execute our technique and ship worth for our shareholders.”
Monetary Outcomes
Segments
The Firm has three reportable segments: the design, manufacture, meeting and distribution of disinfecting programs to be used in healthcare, hospitality, and business municipal and residential markets (Disinfection section); the manufacture of high-quality mirrors particularly for the Hospitality business (hospitality section); and the Company Section, which incorporates bills primarily associated to company governance, reminiscent of board charges, authorized bills, audit charges, govt administration, and itemizing prices.
Internet Gross sales
Internet gross sales of $11,667,579 represented a rise of $5,934,845, or 103.5% for the yr ended December 31, 2021 as in comparison with internet gross sales of $5,732,734 for the yr ended December 31, 2020. This enhance was primarily attributable to the addition of the Disinfection section in 2021 on account of the strategic acquisitions of Akida, KES, and Scientific Air. The 2021 internet gross sales for Disinfection of $5,723,915 contains near 11 months of Akida-related gross sales (acquisition closed February 8, 2021), one quarter of KES-related gross sales (acquisition closed September 28, 2021), and simply over 2 months of Scientific Air-related gross sales (acquisition closed October 13, 2021). The Hospitality section started to rebound from the slowdown brought on by the pandemic and completed the yr ended December 31, 2021 with internet gross sales of $5,943,664, which represented a rise of $210,930, or 3.7% as in comparison with the yr ended December 31, 2020.
Gross Revenue
Gross revenue elevated $3,089,050, or 306%, for the yr ended December 31, 2021 as in comparison with the yr ended December 31, 2020, pushed by each quantity progress and the upper margin contribution from the Disinfection section. The Disinfection section’s gross revenue for the yr ended December 31, 2021 was $2,643,374, or 46.2% as a proportion of internet gross sales. The Hospitality section’s gross margin for the yr ended December 31, 2021 was $1,455,012, or 24.4% as a proportion of internet gross sales, as in comparison with $1,009,336, or 17.6% as a proportion of internet gross sales for the yr ended December 31, 2020. The Hospitality section’s gross revenue was impacted final yr by the gross sales slowdown brought on by the pandemic, in addition to greater overhead price absorption as the corporate stored lots of their direct labor workers in compliance with the payroll safety program forgiveness necessities. The corporate is targeted on realizing price synergies from consolidation and streamlining of producing operations to assist offset will increase in materials and logistics prices.
Working Bills
Promoting, Common, and Administrative – SG&A prices, excluding inventory compensation expense of $1,549,787 for the yr ended December 31, 2021 and $687,505 for the yr ended December 31, 2020, had been $9,791,925 for the yr ended December 31, 2021, which represented a rise of $6,467,874 as in comparison with the yr ended December 31, 2020. This enhance was pushed primarily by the enlargement of the Disinfection section. The infrastructure to assist this section was initially carried out within the fourth quarter of 2020, and extra investments had been made throughout 2021 to assist the three strategic acquisitions of Akida, KES, and Scientific Air. Payroll prices elevated $2.4 million yr over yr as headcount elevated from 33 at December 31, 2020 to 61 at December 31, 2021. Consulting prices elevated $0.7 million and authorized expense elevated $0.4 million, primarily because of acquisition-related bills. Amortization expense, largely associated to the intangible property related to the acquisitions, elevated $1.0 million, and depreciation expense elevated $0.1 million. Extra will increase had been because of promoting $0.3 million, product certification and testing $0.3 million, insurance coverage $0.2 million, and lease $0.1 million. We anticipate effectivity features within the coming yr as we totally combine all 3 acquisitions and leverage synergies the place sensible. The Company section contains bills primarily associated to company governance, reminiscent of board charges, authorized bills, audit charges, govt administration, and itemizing prices, permitting for a greater reflection of operational measurement of every of the 2 working segments.
Internet Loss
We recorded a internet lack of $7,390,355 for the yr ended December 31, 2021, in comparison with a internet lack of $3,368,810 for the yr ended December 31, 2020. The rise of $3,807,244 within the internet loss was primarily as a result of investments made to develop the Disinfection section and loss on contingent consideration, offset by the elevated income and gross margin from that section, as mentioned above, plus a rise in company governance prices.
The Firm had roughly $7.9 million of unrestricted money accessible on its consolidated steadiness sheet as of December 31, 2021.
Convention Name/Webcast Data
Utilized UV’s administration workforce will host an investor convention name and dwell webcast on April 7, 2022, at 9 am ET. Traders can entry the dwell webcast by way of a hyperlink on Utilized UV’s site at AUVI Occasions and Shows. For these planning to take part on the decision, please dial +1-877-545-0523 (for home calls), or +1-973-528-0016 (for worldwide calls), passcode 651204. A replay of the convention name will likely be accessible on-line on the Utilized UV site, and a dial-in replay will likely be accessible for one week following the decision at +1-877-481-4010 (for home calls) or +1-919-882-2331 (for worldwide calls), replay passcode 44897.
About Utilized UV
Utilized UV is targeted on the event and acquisition of expertise that handle an infection management within the healthcare, hospitality, business and municipal markets. The Firm has two wholly owned subsidiaries – SteriLumen, Inc. (“SteriLumen”) and Munn Works, LLC (“Munn Works”). SteriLumen’s linked platform for Information Pushed Disinfection(TM) applies the facility of ultraviolet gentle (UVC) to destroy pathogens safely, completely, and routinely, addressing the problem of healthcare-acquired infections (“HAIs”). Focused to be used in services which have excessive buyer turnover reminiscent of hospitals, motels, business services, and different public areas, the Firm’s Lumicide(TM) platform makes use of UVC LEDs in a number of patented designs for an infection management in and round high-traffic areas, together with sinks and restrooms, killing micro organism, viruses, and different pathogens residing on laborious surfaces inside gadgets’ proximity. The Firm’s patented in-drain disinfection system, Lumicide Drain, is the one product in the marketplace that addresses this crucial pathogen intensive location. SteriLumen’s Airocide(TM) air purification gadgets are analysis backed, clinically confirmed and developed for NASA with help from the College of Wisconsin. Airocide(TM) is listed as an FDA Class II Medical system, makes use of a proprietary photo-catalytic (PCO) bioconversion expertise that pulls air right into a response chamber that converts damaging molds, microorganisms, harmful airborne pathogens, damaging VOCs, allergens, odors and organic gasses into innocent water vapor and inexperienced carbon dioxide with out producing ozone or different dangerous byproducts. Airocide(TM) purposes embody healthcare, hospitality, grocery chains, wine making services, business actual property, faculties, dental workplaces, post-harvest, grocery, hashish services and houses.
For extra details about Utilized UV, Inc., and its subsidiaries, please go to the next web sites: https://www.applieduvinc.com/; https://sterilumen.com/; https://www.airocide.comhttps://kesscience.com; https://scientificairmanagement.com and, https://munnworks.com/.
Ahead-Wanting Statements
The data contained herein might include “forward-looking statements.” Ahead-looking statements mirror the present view about future occasions. When used on this press launch, the phrases “anticipate,” “imagine,” “estimate,” “count on,” “future,” “intend,” “plan,” or the adverse of those phrases and related expressions, as they relate to us or our administration, determine forward-looking statements. Such statements embody, however will not be restricted to, statements contained on this press launch referring to the view of administration of Utilized UV regarding its enterprise technique, future working outcomes and liquidity and capital sources outlook. Ahead-looking statements are primarily based on the Firm’s present expectations and assumptions relating to its enterprise, the financial system and different future situations. As a result of forward-looking statements relate to the longer term, they’re topic to inherent uncertainties, dangers and adjustments in circumstances which might be tough to foretell. The Firm’s precise outcomes might differ materially from these contemplated by the forward-looking statements. They’re neither statements of historic reality nor ensures of assurance of future efficiency. We warning you subsequently towards counting on any of those forward-looking statements. Components or occasions that might trigger the Firm’s precise outcomes to vary might emerge once in a while, and it isn’t doable for the Firm to foretell all of them. The Firm can not assure future outcomes, ranges of exercise, efficiency, or achievements. Besides as required by relevant legislation, together with the securities legal guidelines of the USA, the Firm doesn’t intend to replace any of the forward-looking statements to adapt these statements to precise outcomes.
