NASDAQ$KUST

Kustom Entertainment Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported a 29% increase in total revenues compared to 2020 and earnings per share of $0.16.

Digital Ally reported a 29% increase in total revenues for the third quarter of 2021 compared to 2020, with improvements in revenue and net income margin. The company reported earnings per share of $0.16 for the three months ended September 30, 2021.

  • Total revenue increased by 29% to $4,639,822 compared to $3,588,640 in Q3 2020.
  • Gross profit increased 15% to $1,400,570 versus $1,222,648 in 2020.
  • Net income was $8,068,799, or $0.16 per share, compared to a prior-year net income of $527,442 or $0.02 per share.
  • Announced the release of its next-generation body-worn camera, the FirstVu II, and its most advanced body camera docking station, QuickVu.

Headline financials

Total Revenue

$4.64M

Previous: $3.59M+29.3%
EPS (adj)

$3.20

Previous: $0.40+700.0%
Capital Expenditures

-$5.58M

Previous: -$599K-830.0%
Free Cash Flow

$2.49M

Previous: -$72K+3563.2%
Net Income

$8.07M

Previous: $527K+1429.8%
Operating Income

-$3.6M

Previous: -$1.84M-95.2%
Gross Profit

$1.4M

Previous: $1.22M+14.6%
Cash & Equivalents

$40.7M

Previous: $8.13M+401.1%
Total Assets

$91.9M

Previous: $21.9M+320.5%
Stock-Based Comp

$492K

Previous: $498K-1.3%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$4.64M

Q3 2021+29.3%vs Q3 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Digital Ally · $4.31M total across 2 segments · Q1 2026

  • Entertainment
    $3.21M
  • Video Solutions
    $1.11M

Forward guidance

The company anticipates growth potential from its healthcare venture and expects the TicketSmarter acquisition to be accretive to earnings immediately. They plan to expand existing business lines and pursue new business opportunities, while proceeding cautiously due to current uncertainties.

Tailwinds

  • Expansion of ThermoVu and Shield product lines to include complementary products, services, and other offerings.
  • Addition of TicketSmarter to the company's holdings, expected to be accretive to earnings immediately.
  • Substantial liquid resources available to pursue organic expansion of legacy business and potential acquisitions.
  • Actively pursuing other acquisitions to complete during the fourth quarter within Digital Ally Healthcare venture.
  • Second acquisition of a medical billing company demonstrates the roll-up strategy is attractive to potential targets.

Headwinds

  • Challenges to the legacy business caused by the COVID-19 pandemic during 2021 and 2020.
  • Increased selling, general, and administrative expenses due to various factors including increased insurance premiums and legal expenses.
  • Operating loss as a percentage of revenues worsened to 77% from 51% in the same period in 2020.
  • Uncertainties related to the COVID-19 pandemic and future economic conditions.
  • Proceeding cautiously given the current environment and future uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-1.2%

Avg return

Earnings day

-4.9%

Avg return

5 days after

+3.9%

Avg return

30 days after

44%

28 / 64 earnings

Positive

+41.8%

Q1 2013

Best reaction

-25.3%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-7.7%-50.7%
Q3 2025-4.6%-18.7%-27.1%
Q2 2025-0.6%+8.1%+16.2%
Q1 2025-19.8%-42.2%-46.3%
Q4 2024+1.0%-37.5%-39.7%
Q3 2024-0.5%+13.2%-54.7%
Q2 2024-25.3%-25.3%-22.6%
Q1 2024-3.5%-7.5%-13.5%
Q4 2023-6.0%-2.0%-3.6%
Q3 2023-13.5%-17.1%-24.2%
Q2 2023-6.7%-8.9%-21.0%
Q1 2023+6.8%+9.3%+42.2%
Q4 2022-14.7%-17.7%-29.2%
Q3 2022+0.0%+0.0%-24.3%
Q2 2022-11.2%-13.5%-39.3%
Q1 2022-4.0%-14.9%-20.8%
Q4 2021+4.6%+3.7%-10.1%
Q3 2021+3.2%-0.8%-13.5%
Q2 2021+0.8%+0.0%-0.8%
Q1 2021+1.8%+1.8%+9.0%
Q4 2020+0.0%-0.6%+4.0%
Q3 2020+5.0%+0.4%+8.3%
Q2 2020-24.9%-31.0%-34.0%
Q1 2020-4.8%-4.8%+435.7%
Q4 2019+0.0%+11.7%+13.0%
Q3 2019-0.8%-0.8%-3.4%
Q2 2019-14.3%-14.3%+20.2%
Q1 2019-10.1%-13.3%-21.0%
Q4 2018+2.4%+2.7%+15.3%
Q3 2018-1.8%-0.4%-7.4%
Q2 2018-3.8%+0.0%+62.3%
Q1 2018-7.4%+0.0%-4.4%
Q4 2017+17.4%+15.2%+13.0%
Q3 2017+8.0%+10.3%+31.5%
Q2 2017+1.7%+13.6%-1.7%
Q1 2017+2.7%-7.2%-7.2%
Q4 2016+2.2%+4.6%+3.4%
Q3 2016+3.0%+12.0%-4.4%
Q2 2016-9.0%-11.8%+3.2%
Q1 2016+1.3%
Q4 2015-12.1%
Q3 2015-1.0%
Q2 2015-17.9%
Q1 2015-7.8%
Q4 2014+19.2%
Q3 2014-11.5%
Q2 2014-19.2%
Q1 2014+3.7%
Q4 2013-22.0%
Q3 2013-17.0%
Q2 2013+6.7%
Q1 2013+41.8%
Q4 2012+3.4%
Q3 2012+13.3%
Q2 2012+5.1%
Q1 2011+11.1%
Q1 2012-10.4%
Q4 2011+40.0%
Q3 2010-3.3%
Q3 2011-3.3%
Q4 2010+10.7%
Q2 2010+10.7%
Q2 2011+10.7%
Q1 2010+2.9%

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