WARRENVILLE, IL—(Marketwired – May 23, 2016) – Sports Field Holdings, Inc. (OTCQB: SFHI) (Sports Field”, the “Company” “we”, “us” or “our”) announced its financial results for the quarter ended March 31, 2016 and provided an update on its 2016 strategic objectives.
Highlights for the three months ended March 31, 2016
- Revenues increased 57% to $811,075 primarily due to the large contract with IMG Academy;
- Awarded over $15.75 Million in sales contracts so far in 2016;
- Completed our first project of the year at IMG Academy in scheduled time, earning a profit;
- Selling, general and administrative expenses, adjusted for non–cash expenses, decreased 5% to $398,133;
- Signed first contract for indoor athletic turf fields, a new market opportunity for the Company;
- Completed strategic rebranding and launched new website and investor portal (www.firstform.com).
Revenues grew 57% to $811,075 compared to $517,860 a year ago. Gross profit margin decreased to 5.8% due to legacy projects having experienced predicted losses, but nearing completion. Going forward, project profit margins are expected to be positive and to meet predicted levels.
Selling, general and administrative expenses, adjusted for stock and options compensation, decreased 5% to $398,133 compared to $420,838 a year ago. We anticipate economies of scale from larger inventory orders and streamlining of operations will reduce cost of sales and operating expenses, respectively. Given the foregoing and contracts that have been awarded to date, we expect to achieve profitability targets on a go–forward basis prior to the end of the 2016 fiscal year.
Since the start of the year, more than $1.5 Million has been raised from investors to improve our working capital position and support our backlog and anticipated order flow. We've identified $122.7 Million in sales opportunities for our PrimePlayâ¢ in the next twelve months and we have built a robust sales team to pursue these opportunities.
“Q1 demonstrated that the Company's synthetic turf is gaining adoption within the $1.6 Billion Turf Installation Market and that our company is improving our operational efficiencies. We believe we are positioned to capitalize on a robust pipeline of potential projects and deliver tangible results to our shareholders for the remainder of 2016,” stated Jeromy Olson, President and CEO of Sports Field.
New Market Opportunities
Recently, we signed a contract to supply Nex Level Sports with a 21,000 square–foot indoor turf field, positioning Sports Field as a solution provider in the fast–growing indoor soccer and lacrosse sports facilities market. We continue to invest in R&D to provide evidence of the superiority and broad applicability of our PrimePlayâ¢ best–in–class synthetic turf products.
We anticipate Ray Lewis, a future NFL Hall of Fame player, Rick Honeycutt, former MLB pitcher and current pitching coach of the Los Angeles Dodgers, and Chris Wingert, a 12–year veteran MLS player currently with the Salt Lake City Real, will play instrumental roles in capitalizing on new opportunities as Brand Ambassadors for the Company.
Rebranding to First Form
In the second quarter, we completed a comprehensive rebranding campaign which included changing the name of our operating subsidiary to “First Form, Inc.” Our new brand communicates to both current customers and potential customers that we continue to put our customerÂ FIRSTÂ as we help them toÂ FORMÂ their vision into reality.
As part of this strategic rebrand, we launched a new website and investor portal (www.firstform.com) to keep stakeholders updated on the latest happenings. The Company has also identified strategic investor relations objectives, which include one–on–one meetings with institutional investors and improved and timely communication with existing investors, with the aim of enhancing awareness regarding the Company.
We are committed to expanding its board of directors in 2016 with the aim of enhancing corporate governance. The Company is in discussions with potential independent board members with extensive experience in our business and in building shareholder value.