PromoWire (8/11-8/16): Notes And News Releases From Around The Industry
(Editor’s Note: PromoWire by PPAI Media is a running digest of news releases and updates submitted from organizations around the industry. PPAI Media edits these only slightly, including for length, and will consider newsworthy entries from any member organization.)
NWPMA Is Hosting Its 2022 Fall Showcase This Month
The Northwest Promotional Marketing Association (NWPMA) 2022 Fall Showcase will take place on Wednesday, August 31st at the DoubleTree by Hilton Exhibit Center in Portland, OR. Attend this event for a chance to win 1 of 7 premium gifts valued at over $50 by finding an illustrious Golden Ticket. Receive an extra chance to find a Golden Ticket by attending the Keynote Speaker, Kevin Walsh, CAS, Incoming PPAI Chair and President of Showdown Displays, at 9 am before exhibits open at 10 am. Register to Attend
Additional chances to win a golden ticket the day before the showcase on Tuesday, August 30th at the NWPMA Campfire Social Event where a panel of industry experts will give an in-person comprehensive look at advanced shipping. The panelists will discuss burning questions related to shipping with an LTL, fulfillment programs and eco-friendly options. All the shipping tips and don'ts you need to increase your shipping margins.
Immediately following our Campfire Social Event, the NWPMA promo community is invited to a networking party at Spirit of '77, featuring free food, drinks and fun! More Information
Stran & Company Reports 73% Increase in Sales And Achieves Record Revenue Of $14.8 Million For The Second Quarter Of 2022
Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: STRN) (NASDAQ: STRNW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today provided a business update and reported financial results for the three months ended June 30, 2022.
Andy Shape, President and CEO of Stran, commented, “We continued our growth trajectory during the second quarter, illustrated by record revenue of $14.8 million, a 72.5% increase compared to the same period last year. Importantly, on an organic basis, our year-over-year revenue increased 49.4%, reinforcing our traction in the market. We remain committed to our business growth strategy involving expansion of our geographic footprint, entering new verticals and opportunistic acquisitions that complement our existing platform. Towards this end, I’m proud to report that we have fully integrated G.A.P. Promotions into our business operations, which we acquired in January 2022. More recently, we entered into a definitive agreement to acquire Trend Brand Solutions, a leading global brand solutions company, strategically headquartered in Tomball, Texas. As we work toward realizing our M&A goals, we expect to increase our customer base, grow our capabilities within the beverage space, and expand our geographic presence within the United States. Given the fragmented nature of the industry, we believe that our strategy of acquiring under-valued and accretive businesses will remain a key aspect of our strategy, bringing together innovation, relationships, and top-tier talent.”
Mr. Shape continued, “In order to further accelerate growth and leverage our established infrastructure, we recently expanded our sales and marketing initiatives by establishing a dedicated lead generation team and increasing our digital marketing spend. Although we are now carrying public company expenses that we did not incur last year and added other fixed expenses to support our planned growth, we expect to resume and build upon our track record of profitability given our highly scalable operations. Overall, we have maintained a solid balance sheet with over $28 million of cash and cash equivalents as of June 30, 2022, which provides us significant resources to execute on our business growth strategy and establish Stran as a preeminent force in the promotional products industry.”
Revenue for the three months ended June 30, 2022 was $14.8 million compared to $8.6 million for the same period in 2021. The increase was primarily due to higher spending from existing clients as well as business from new customers. Additionally, the Company benefited from the acquisition of the G.A.P. Promotions assets in January 2022.
Gross profit increased to $3.8 million, or 25.4% of revenue, for the three months ended June 30, 2022, compared to $2.1 million, or 25.0% of revenue, for the same period last year. The increase in gross profit was due to increased sales, partially offset by an increase in purchasing costs.
Net loss for the three months ended June 30, 2022 was approximately $0.4 million, compared to net loss of approximately $0.2 million for the same period last year. This increase was primarily due to integration expenses related to the January 2022 acquisition of the G.A.P. Promotions assets, ongoing expenses related to being a public company, and higher cost of purchases. These factors were partially offset by the increase in sales from the G.A.P. Promotions asset purchase and the increase from recurring organic sales.
Toddy Gear Names New Business Development Director
Toddy Gear has promoted Amanda Maynord to director of national accounts and business development. Maynord, who has worked in the promotional products industry for almost a decade, joined Bolingbrook, Illinois-based Toddy Gear at the beginning of 2021 as its national key account manager.