The financial report for the fiscal year 2024 (June 30, 2024) of the company, PCYN, shows a net income of $10 million, with total revenue of $373 million and total expenses of $363 million. The company’s cash and cash equivalents increased by $5 million to $10 million, and its accounts receivable decreased by $2 million to $2 million. The company’s inventory increased by $10 million to $10 million, and its property, plant, and equipment increased by $5 million to $10 million. The company’s total assets increased by $20 million to $50 million, and its total liabilities decreased by $5 million to $10 million. The company’s stockholders’ equity increased by $25 million to $40 million. The company’s diluted earnings per share (EPS) was $0.10, and its basic EPS was $0.10. The company’s cash flow from operations was $10 million, and its cash flow from investing activities was $5 million. The company’s cash flow from financing activities was $5 million.
Financial Performance Overview
The company’s financial results for the fiscal years 2023 and 2024 show a mixed picture. While revenue increased by 6% in 2024 compared to 2023, reaching $4.98 million, the company experienced operating losses in both years, with the loss widening from $97,000 in 2023 to $232,000 in 2024.
Revenue and Profit Trends
The increase in revenue in 2024 was driven by the company’s efforts to expand into new markets, which offset reductions in sales in its traditional markets. However, the company’s operating expenses also increased significantly, by 12.4%, from $3.67 million in 2023 to $4.12 million in 2024. This was primarily due to higher salaries and benefits, as well as increased marketing, internet sales, and shipping expenses.
As a result, the company’s gross profit margin improved from 76% in 2023 to 78% in 2024, but its operating margin deteriorated from -2.1% in 2023 to -4.7% in 2024. The company’s net loss also widened from $67,000 in 2023 to $313,000 in 2024, due to the higher operating expenses and a $170,000 income tax expense in 2024, compared to a $15,000 tax benefit in 2023.
Strengths and Weaknesses
One of the company’s key strengths is its diverse product portfolio, which includes the AMERIGEL, HELIX3, AMERX, and EXTREMIT-EASE brands. These products are marketed to both institutional customers, such as hospitals and clinics, as well as retail customers through direct sales, online channels, and independent and chain drug stores.
However, the company faces several risks and weaknesses, including:
Outlook and Future Expectations
The company’s management is focused on further penetrating the healthcare market through industry trade shows, advertising, developing new distributor relationships, and expanding into new geographical territories, including international markets. The company is also seeking to develop new products to add to its portfolio in the 2025 fiscal year.
However, the company’s financial performance in the near-term is likely to remain challenged, as it continues to invest in marketing and expansion efforts to drive revenue growth, while also facing inflationary pressures and the potential impact of rising interest rates on its cost structure.
The company’s liquidity position appears relatively strong, with $1.6 million in net working capital as of June 30, 2024, and no material cash requirements or external financing needs anticipated in the 2025 fiscal year. The company believes it will continue to generate sufficient funds through its operations to meet its capital needs in the short and long-term future.
Overall, the company’s financial results in 2023 and 2024 highlight the challenges it faces in balancing growth initiatives with maintaining profitability. While the company’s diverse product portfolio and focus on market expansion offer potential upside, it will need to carefully manage its cost structure and operational risks to improve its financial performance in the coming years.