PHOENIX, AZ / ACCESSWIRE / April 15, 2021 / Alpine 4 Holdings, Inc. (OTCQB:ALPP), a leading operator and owner of small market businesses, is pleased to announce that its revenue for 2020 grew at a rate of 19% over 2019 and that the Company expects to report its shareholder equity to grow to $40 million in Q1 2021.
I am pleased to say that our year-over-year revenue grew to $33.5 million at a rate of 19% over 2019. I will also add that our revenue should have grown to $47 million, which would have been 64% growth over 2019, but COVID 19 had other plans for the global economic outlook.
There are times in life where what you do in the "now" has a significant impact on your journey. 2020 brought on great challenges for our community, families, and business and Alpine 4 was not immune to those challenges. At the onset of the COVID 19 pandemic, the Executive Leadership Team and the Board of Directors made the decision to put our employees and their families first. We purchased 10,000 KN95 masks for our 293 employees, redesigned workflow areas to ensure that employees had greater space between them on the production floors, modified our work schedules to allow for fewer people in one area, and pushed nonproduction employees to work from home.
We rode through 2020 with over 278 employees and retained 95% of our workforce. Achieving this employee retention was no easy feat. Our revenue was off by over 26%, if you annualized our combined revenue from newly acquired subsidiaries, Excel Fabrication and Deluxe Sheet Metal, not accounted for in 2019. This decision to retain our employees did have consequences. Financially, we took a significant hit to our profit and loss statement of $3.2 million in additional expense by keeping our employees at the level we did and not reducing our workforce to match our revenue. As financially painful as this employee retention was, we never lose sight that our employees are the backbone of our Company, and consequently, retention was the only option. Additionally, we decided to write down some customer-based assets across our subsidiaries to adjust for the loss of revenue from businesses that halted purchasing from us. This added an additional $1.5 million in noncash losses. Add in other adjustments to our pricing to keep our customers from going to competitors, and the net result of COVID-19 on financial statements helped drive a $8 million loss. Our decision to do whatever it took to keep our employees will pay huge dividends in 2021 and 2022. With the current US-based labor pool experiencing monumental shortages, Alpine 4 will have the ability to meet the growing demand of our customers, giving us a unique advantage over the competition. I am very pleased to say that in Q2 2021, the Company will begin to post sales revenue that exceeds pre-COVID 19 revenue. When you combine the cost-cutting measures of our MIDK (maintain, invest, divest, kill) exercise we did in Q2 and Q3 of 2020, the $50 million capital raise we did in Q1 2021, and our paying down of our debt by over $14 million to date, profitability is forthcoming, and the Company looks as healthy as it has ever been.
I am also pleased to announce that in Q1 2021, we were able to effectuate a large capital raise that fundamentally strengthened the Company. We accomplished this through five strategic institutional investment groups to raise over $50 million dollars. This capital raise does so much more than add cash to our financial statements. It created the ability to reduce our debt burden at the subsidiary level, infuse cash to empower them to strategically purchase time-sensitive materials, hire new employees, and finally make capital investments that will differentiate our product offerings. In Q1 and Q2 2021, you will begin to our financial statements take on fundamental changes; strong cash reserves, a much lower cost of debt, gross profit margin beginning to rise, increased shareholder equity from a negative $8.7 million to positive equity estimated to be in excess of $40 million, and ultimately, net profit beginning to express itself in our financial statements.
All this being said, we will look back at 2020 as a year of significant change for Alpine 4. But these changes pale in comparison to the fundamental changes that have already occurred in 2021. We are undeniably in a new position of strength from a financial structure standpoint, and we will be a force to be reckoned with as we continue to implement our DSF business model and we begin to trade on the NASDAQ. Best regards,
Kent B. Wilson
CEO / President / Founder"
About Alpine 4 Holdings: Alpine 4 Holdings, Inc. (ALPP) is a publicly traded conglomerate that acquires businesses that fit into its disruptive DSF business model of Drivers, Stabilizers, and Facilitators. At Alpine 4, we understand the nature of how technology and innovation can accentuate a business. Our focus is on how the adaptation of new technologies, even in brick-and-mortar businesses, can drive innovation. We also believe that our holdings should benefit synergistically from each other, have the ability to collaborate across varying industries, spawn new ideas and create fertile ground for competitive advantages.
Four principles at the core of our business are Synergy. Innovation. Drive. Excellence. At Alpine 4, we believe synergistic innovation drives excellence. By anchoring these words to our combined experience and capabilities, we can aggressively pursue opportunities within and across vertical markets. We deliver solutions that not only drive industry standards, but also increase value for our shareholders.
Forward-Looking Statements: The information disclosed in this press release is made as of the date hereof and reflects Alpine 4 most current assessment of its historical financial performance. Actual financial results filed with the SEC may differ from those contained herein due to timing delays between the date of this release and confirmation of final audit results. These forward-looking statements are not guarantees of future performance and are subject to uncertainties and other factors that could cause actual results to differ materially from those expressed in the forward-looking statements including, without limitation, the risks, uncertainties, including the uncertainties surrounding the current market volatility, and other factors the Company identifies from time to time in its filings with the SEC. Although Alpine 4 believes that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate and, as a result, the forward-looking statements based on those assumptions also could be incorrect. You should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this release are made as of the date hereof, and Alpine 4 disclaims any intention or obligation to update the forward-looking statements for subsequent events.
SOURCE: Alpine 4 Technologies, Ltd.