Attached files
file | filename |
---|---|
8-K - FORM 8-K - INSIGNIA SYSTEMS INC/MN | a2019_0118isiform8k.htm |
EXHIBIT 99.1
Contact:
Insignia Systems,
Inc.
Kristine Glancy,
CEO
(763)
392-6200
|
FOR IMMEDIATE RELEASE
INSIGNIA SYSTEMS, INC. ANNOUNCES
Preliminary Fourth Quarter and Full Year 2018 Results
MINNEAPOLIS, MN – January 18, 2019 – Insignia Systems, Inc. (Nasdaq: ISIG)
(“Insignia”) today reported information
regarding its preliminary unaudited financial results for the
fourth quarter of 2018 (“Q4”), fiscal year 2018 and
updated expectations for the first half of 2019.
Overview
●
Preliminary Q4 2018
net sales ranging from $8.0 to $8.1 million and Q4 2018 pre-tax
income results ranging from $0.3 to $0.5 million
●
Preliminary fiscal
year 2018 net sales ranging from $33.1 to $33.2 million and fiscal
year 2018 pre-tax income results ranging from $1.6 to $1.8
million
●
Loss of significant
clients expected to result in substantial downward pressure in
future periods
Insignia expects fourth quarter
of 2018 net sales ranging from $8.0 to $8.1 million, roughly flat
with fourth quarter of 2017 and expects pre-tax income for the
fourth quarter of 2018 ranging from $0.3 to $0.5 million.
Preliminary fiscal year 2018 net sales ranging from $33.1 to $33.2
million and fiscal year 2018 pre-tax income results ranging from
$1.6 to $1.8 million.
Insignia’s
President and CEO Kristine Glancy commented, “Our 2018
results are expected to be the highest net sales the Company has
reported in its history, while also delivering significant net
profit improvements versus our 2017 and 2016 losses. The
Company’s performance has resulted primarily from our focus
on retaining and acquiring clients, our expanded product solutions
and our increased corporate awareness within our industry. Brand
and retailer consolidation, shrinking advertising budgets among
consumer-packaged goods manufacturers (“CPGs”) and
overall commodity uncertainties continue to place significant
pressure on our industry. We have been working diligently to align
our overall business and innovation pipeline to capture and
anticipate our clients’ needs, while also working to address
our transforming industry and significantly increased and focused
competition. Behind these efforts, we are excited to share that
Insignia generated significant revenue from thirteen new products
in 2018. We are proud of our 2018 results and will continue to
aggressively pursue expanding both our client and product base
where we can build natural scale.”
Ms. Glancy continued,
“As disclosed previously, both retailer and CPG volatility in
our POPS program are making our future results difficult to
predict. We now have visibility to changes in our retail and
CPG network during 2019, inclusive of the pending exit of a
significant retailer in the first half of 2019, both because of new
and exclusive arrangements with a competitor. These changes are
expected to have a significant adverse impact on our financial
results in future periods. We are aggressively working towards
replacing the lost sales driven by this retailer via continued
expansion of new products introduced in 2018, further portfolio
expansion in 2019 and new retailer acquisition opportunities.
However, based on our recent marketplace success, we expect
increased competition to continue with growing focus against
Insignia. As evidenced by our
success
in 2018, we remain committed to managing our overall business by
identifying new sales drivers while also aligning both costs and
strategic investments, to remain relevant and resilient in the
industry. The combination of a dynamic industry along with our
talented organization and strong balance sheet gives us confidence
in the long-term success of the Company.”
The
foregoing preliminary unaudited financial information for the
fiscal year and fourth quarter ended December 31, 2018 is based
upon estimates and subject to completion of our financial closing
procedures and external audit process. Such financial information
has been prepared by management solely based on currently available
information. The preliminary unaudited financial information does
not represent and is not a substitute for a comprehensive statement
of financial results, and our actual results may differ materially
from these estimates because of final adjustments, the completion
of our financial closing procedures including the pending audit of
Insignia’s annual financial statements, and other
developments after the date of this release.
Insignia expects to
release final fourth quarter and full year 2018 results in early
March 2019, consistent with our year-end process and prior year
timing.
About Insignia Systems, Inc.
Insignia Systems, Inc. markets in-store advertising products,
programs and services primarily to both consumer-packaged goods
manufacturers and retailers. Insignia has provided in-store media
solutions in over 20,000 retail outlets, inclusive of grocery, mass
merchants and dollar over the course of 2018. We partner with over
300 consumer packaged goods manufacturers across various categories
including center store, refrigerated, frozen and the perimeter. For
additional information, contact (800) 874-4648, or visit the
Insignia website at www.insigniasystems.com.
Investor inquiries can be submitted to investorrelations@insigniasystems.com.
Cautionary Statement for the Purpose of Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995
Statements in this press release that are not statements of
historical or current facts are considered forward-looking
statements within the meaning of the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995, as amended. The
words “anticipates,” “expects,”
“estimates,” “seeks,” “will”
and similar expressions identify forward-looking statements.
Readers are cautioned not to place undue reliance on these or any
forward-looking statements, which speak only as of the date of this
press release. Statements made in this press release regarding,
such as our preliminary results, expected results for future
periods and anticipated changes in our retailer and CPG networks
are forward-looking statements. These forward-looking statements
are based on current information, which we have assessed and which
by its nature is dynamic and subject to rapid and even abrupt
changes. As such, actual results may differ materially from the
results or performance expressed or implied by such forward-looking
statements. Forward-looking statements involve known and unknown
risks, uncertainties and other factors, including those set forth
in our Annual Report on Form 10-K for the year ended December 31,
2017 and additional risks, if any, identified in our Quarterly
Reports on Form 10-Q and our Current Reports on Forms 8-K filed
with the SEC. Such forward-looking statements should be read in
conjunction with the Company's filings with the SEC. Insignia
assumes no responsibility to update the forward-looking statements
contained in this press release or the reasons why actual results
would differ from those anticipated in any such forward-looking
statement, other than as required by law.