EASTON, PA / ACCESSWIRE / April 2, 2018 / Paragon Technologies, Inc. (OTC PINK: PGNT), a holding company, announced its results for the year ended December 31, 2017, on March 29, 2018.
Paragon Technologies, Inc.'s Consolidated Statement of Operations for the years ended December 31, 2017, 2016 and 2015 are summarized below. For further detail on our results, shareholders should carefully review our annual report, which can found at www.pgntgroup.com.
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(In Thousands)
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December 31, 2017
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December 31, 2016
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December 31, 2015
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Net Sales
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$ | 64,615 | $ | 8,574 | $ | 11,582 | ||||||
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Operating Income (loss)
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(82 | ) | (1,472 | ) | 1,028 | |||||||
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Other income (expense)
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Interest Income
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117 | 39 | 20 | |||||||||
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Interest expense
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(351 | ) | (12 | ) | (1 | ) | ||||||
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Gain on investment, marketable securities
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321 | 138 | 17 | |||||||||
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Gain on bargain purchase
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4,226 | - | - | |||||||||
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Total other income (expense), net
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4,313 | 165 | 36 | |||||||||
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Income (loss) before income taxes and noncontrolling interest
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4,231 | (1,307 | ) | 1,064 | ||||||||
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Income tax (expense) benefit
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(609 | ) | 223 | (216 | ) | |||||||
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Net income (loss) before noncontrolling interest
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3,622 | (1,084 | ) | 848 | ||||||||
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Net income attributable to noncontrolling interest
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882 | - | - | |||||||||
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Net income (loss) attributable to Paragon Technologies, Inc and subsidiaries
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$ | 2,740 | $ | (1,084 | ) | $ | 848 | |||||
Analysis of Results and General Business Commentary:
In 2017 operating income was negatively impacted by a litigation matter that was fully resolved and settled in 2017. Other income in 2017 was positively impacted by a one-time, non-cash bargain purchase gain of $4.2 million relating to wholly owned subsidiary Ark Investments, LLC's successful acquisition of SED International Latin America.
"2017 was an important and significant year for Paragon as we successfully completed a major acquisition and launched a real estate division, Ohana Home Services," stated Hesham Gad, Chairman, and CEO of Paragon. "Paragon now possesses several levers of revenue generation that we believe will create a more versatile and consistent stream of revenues," continued Gad. "We still have a lot of work to do as we continue to focus on streamlining various parts of our businesses, but we are excited about the future of the company. Late in 2017 Paragon's newly created subsidiary Ohana Home Services acquired an attractive residential property in Las Vegas that we fully expect to generate positive, albeit initially modest, cash flow and net income in 2018."
Mr. Gad continues, "Our material handling business SI Systems enters 2018 with some exciting projects and partnerships that we believe will positively transform our business. Our distribution operations, acquired in the first quarter of 2017, had a strong year and are seeing a strong start to 2018."
"Our singular focus going forward in 2018 is delivering quality profits and maintaining a relentless focus on generating cash flow for future growth. We strongly believe the intrinsic value of Paragon vastly exceeds the company's market value and we are focused on closing that gap. In the coming weeks, Paragon will be releasing its first ever Investor Presentation which we believe will serve as a useful tool to investors," states Gad.
Paragon's investment gains or losses reflect realized gains or losses in the company's investment portfolio.
Paragon utilizes pre-tax operating income, a non-GAAP financial measure, in its analysis of financial results. Paragon Technologies defines pre-tax operating earnings outside of the investment gains/losses of the Company.
About Paragon Technologies
Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate and investments.
This press release contains forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. All statements in this press release other than statements that are purely historical are forward-looking statements. The Company does not intend and assumes no obligation, to update any forward-looking statements made in this press release. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this press release.
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SOURCE: Paragon Technologies, Inc.