Net sales were $116 million in 2021, compared to $96 million in 2020.

Net income was $3.07 million in 2021, compared to $0.52 million in 2020.

Earnings per diluted share of $0.10 in 2021, compared to $0.02 in 2020.

EBITDA¹ of $12.1 million in 2021, compared to $7.6 million in 2020.

Earnings before interest, taxes, depreciation, and amortization. EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measure so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from EBITDA are detailed in the reconciliation attached to this news release. Other companies (including the Company’s competitors) may define EBITDA differently.

Current assets:

Cash and cash equivalents

Receivables:

Trade, net of allowance for doubtful accounts of $3,979 and $3,297, respectively

Other

Total receivables, net

Inventories

Prepaid expenses

Income taxes receivable

Total current assets

Property, plant and equipment, net

Operating lease right-of-use assets

Intangible assets, net of applicable amortization

Goodwill

Other assets

Deferred income tax assets, net

Total assets

Current liabilities:

Current installments of other liabilities

Accounts payable

Deferred revenue

Accrued program costs

Accrued expenses and other payables

Operating lease liabilities, current

Total current liabilities

Long-term debt, net

Operating lease liabilities, long term

Other liabilities, net of current installments

Deferred income tax liabilities, net

Total liabilities

Commitments and contingent liabilities

Stockholders’ equity:

Preferred stock, $.10 par value per share; authorized 400,000 shares; none issued

Common stock, $.10 par value per share; authorized 40,000,000 shares; issued 33,874,322 shares at March 31, 2021 and 33,922,433 shares at December 31, 2020

Additional paid-in capital

Accumulated other comprehensive loss

Retained earnings

Less treasury stock at cost, 3,061,040 shares

Total stockholders’ equity

Total liabilities and stockholders’ equity

Net sales

Cost of sales

Gross profit

Operating expenses

Adjustment to bargain purchase gain on business acquisition

Operating income

Change in fair value of an equity investment

Other income

Interest expense, net

Income before provision for income taxes (benefit) and loss on equity method investment

Income tax (expense) benefit

Income before loss from equity method investment

Loss from equity method investment

Net income

Earnings per common share—basic

Earnings per common share—assuming dilution

Weighted average shares outstanding—basic

Weighted average shares outstanding—assuming dilution

Net sales:

U.S. crop

U.S. non-crop

Total U.S.

International

Total net sales:

Gross profit:

U.S. crop

U.S. non-crop

Total U.S.

International

Total gross profit:

Gross margin:

U.S. crop

U.S. non-crop

Total U.S.

International

Gross margin:

Cash flows from operating activities:

Net income

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization of fixed and intangible assets

Amortization of other long-term assets

Accretion of discounted liabilities

Amortization of deferred loan fees

Provision for bad debts

Loan principal and interest forgiveness

Stock-based compensation

Decrease in deferred income taxes

Change in fair value of an equity investment

Loss from equity method investment

Adjustment to bargain purchase gain on business acquisition

Changes in assets and liabilities associated with operations:

Increase in net receivables

Increase in inventories

Increase in prepaid expenses and other assets

(Increase) decrease in income tax receivable/payable, net

Decrease in net operating lease liability

Increase in accounts payable

Decrease in deferred revenue

Increase in accrued program costs

Decrease in other payables and accrued expenses

Net cash used in operating activities

Cash flows from investing activities:

Capital expenditures

Intangible assets

Net cash used in investing activities

Cash flows from financing activities:

Net borrowings under line of credit agreement

Net payments from the issuance of common stock (sale of stock under ESPP, exercise of stock options, and shares purchased for tax withholdings)

Payment of cash dividends

Net cash provided by financing activities

Net decrease in cash and cash equivalents

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Net income, as reported

Provision for income taxes

Interest expense, net

Depreciation and amortization

EBITDA²

Earnings before interest, taxes, depreciation and amortization. EBITDA is not a financial measure calculated and presented in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), operating income (loss) or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity. The items excluded from EBITDA are detailed in the reconciliation attached to this news release. Other companies (including the Company’s competitors) may define EBITDA differently.