SRM Entertainment Reports Third Quarter 2023 Financial Results
14 November 2023 - 2:30PM
SRM Entertainment, Inc. (Nasdaq: SRM) (the “Company” or “SRM”) is a
trusted toy and souvenir designer and developer, selling into the
world’s largest theme parks and entertainment venues, announced its
fiscal results for the third quarter ended September 30, 2023.
SRM had sales of $1,128,062 and $1,517,546 for
the three months ended September 30, 2023 and 2022. The decrease in
sales can be attributed to certain theme parks rebalancing and
adjusting inventory balances post COVID-19. Cost of goods sold
varies directly with sales with only a difference in margins. Due
to a 2022 one-time adjustment in VAT tax for goods sold in Beijing,
our overall gross margins were increased to approximately 26%. Our
normalized gross margins of approximately 20% were reflected for
the quarter ended September 30, 2023.
Operating expenses for the three months ended
September 30, 2023 and 2022 were $1,717,777 and $159,375,
respectively. The increase was due to new expenses primarily
related to the Company’s initial public offering including legal
fees, audit and accounting fees, insurance, investor and public
relations, regulatory and exchange fees.
|
|
Nine Months EndedSeptember
30 |
|
Income statements |
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
Sales |
|
$ |
4,556,905 |
|
|
$ |
5,199,807 |
|
Cost of Sales |
|
|
3,583,713 |
|
|
|
4,195,629 |
|
Gross profit |
|
|
973,192 |
|
|
|
1,004,178 |
|
|
|
|
|
|
|
|
|
|
Operating
expense |
|
|
2,227,433 |
|
|
|
470,673 |
|
|
|
|
|
|
|
|
|
|
Net Income (loss) |
|
|
(1,296,729 |
) |
|
$ |
533,520 |
|
Throughout Q3 2023, SRM focused on its business
plan to allow the Company to deliver future growth. Our management
team is building strong relationships with content providers,
retailers, and third-party manufacturers as we move innovative
products from concept to design.
SRM successfully completed its initial public
offering in August 2023. Since that time, we’ve been expanding
beyond our core international theme park business, adding to our
licensing relationships with established content providers.
Sip with Me® children’s cups were
launched featuring Smurfs and
Zoonicorn franchise characters. SRM’s design team
continued to create new and innovative products for Orlando’s top
theme parks.
“The SRM team delivered strong operational
performance in the third quarter. We plan to build on the momentum
and success we have had with many of our innovative products this
year as we move into 2024. We continue to execute our strategic
priorities, including our recently launched SMURF and Zoonicorn
Sip with Me® collections. These
products should help build on SRM’s strategy to expand our core
business and add new licensing partnerships” stated Rich Miller
SRM’s CEO.
About SRM Entertainment, Inc.
SRM Entertainment, Inc. designs, develops, and
manufactures custom toys and souvenirs for the world's largest
theme parks and entertainment venues. The Company provides
exclusive custom products that are available worldwide at venues
such as Walt Disney Parks and Resorts, Universal Studios, SeaWorld
and other attractions. Additionally, SRM recently launched its
retail product line which includes its patented SMURFS Sip with Me
cups.
Caution Regarding Forward-Looking
Statements
Certain statements in this announcement are
forward-looking statements. Investors can identify these
forward-looking statements by words or phrases such as “may,”
“will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,”
“plan,” “believe,” “is/are likely to,” “potential,” “continue” or
other similar expressions. These statements are subject to
uncertainties and risks including, but not limited to, the risk
factors discussed in the “Risk Factors” section of the registration
statement for the Offering filed with the SEC. Although the Company
believes that the expectations expressed in these forward-looking
statements are reasonable, it cannot assure you that such
expectations will turn out to be correct, and the Company cautions
investors that actual results may differ materially from the
anticipated results and encourages investors to review other
factors that may affect its future results in the Company's
registration statement and other filings with the SEC. Additional
factors are discussed in the Company's filings with the SEC, which
are available for review at www.sec.gov. The Company undertakes no
obligation to update or revise publicly any forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations that arise after the date hereof,
except as may be required by law.
Media and Investor Relations
Info@SRMentertainment.com(407)-230-8100
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