Applied UV, Inc. (NASDAQ:AUVI) Q2 2022 Earnings Conference Call August 16, 2022 9:00 AM ET

Company Participants

Brett Maas - Investor Relations

John Andrews - Chief Executive Officer

Mike Riccio - Chief Financial Officer

Conference Call Participants

Chip Moore - EF Hutton

Operator

Good morning, ladies and gentlemen and welcome to the Applied UV Second Quarter 2022 Financial Results Conference Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Brett Maas of Hayden IR. Sir, the floor is yours.

Brett Maas

Thank you. Once again, welcome to Applied UV second quarter 2022 earnings call. With me on the call today are John Andrews, Chief Executive Officer and Mike Riccio, Chief Financial Officer. As a reminder, all materials for today’s live presentation are available on the company’s Investor Relations website.

Before we begin, please take a moment to read the forward-looking statements in our earnings press release. During today’s call, we will make certain predictive statements that reflect our current views about future performance and financial results. We make these statements and certain assumptions and expectations on future events that are subject to risks and uncertainties. Our most recent Form 10-K lists some of the most important risk factors that could cause actual results to differ from our predictions.

With that, I will turn the call over to John Andrews. John, the floor is yours.

John Andrews

Thank you, Brett and good morning everyone. It’s a pleasure to be with you this morning to review the results of our second quarter and provide an update on our business. I’d like to start by thanking the entire Applied UV team for delivering strong results amidst a confluence of factors, including inflationary uncertainty, extended supply chain timelines, and overseas market shutdowns due to COVID and the war in Ukraine. Our team’s hard work fueled by our high performance culture resulted in another quarter of solid growth, capping a strong first half of the year, and creating greater momentum going into the second half of the year.

Our financial results for the second quarter include record revenue of $5.9 million versus $1.9 million in the same quarter last year for a total increase of 213.5%. A portion of this growth was derived from acquisitions, primarily our recent acquisition of VisionMark. Importantly though, on a pro forma basis, we grew our revenue by 39.2%. We continued our investment in marketing, sales, engineering, and other growth initiatives in the second quarter, while at the same time following a disciplined capital allocation process. We expect our operating margins excluding one-time expenses will improve as we take advantage of synergies between our operating subsidiaries. One-time expenses in the second quarter were approximately $739,000.