Mon, May 20, 8:32 PM (200 days ago)
Reliant Holdings, Inc. reported a net income of $125,301 for Q1 2024, a significant increase from $29,969 in Q1 2023. Revenue decreased by 27.7% to $575,758, primarily due to a downturn in demand for in-ground swimming pools. Cost of goods sold dropped by 47.1% to $274,276, reflecting fewer pool constructions. Gross margin improved to 52.4% from 34.8% in the prior year, attributed to higher pricing power and reduced costs. Operating expenses fell by 33.6% to $162,878, driven by cost-cutting measures. The company’s financial position showed total assets of $824,282 and total liabilities of $521,535, resulting in a working capital of $244,289. Cash flow from operations was negative at $67,567, mainly due to changes in contract liabilities. Reliant closed the sale of a custom home in May 2024, expected to generate net proceeds of $495,049. The company is exploring strategic alternatives to improve profitability and may consider mergers or acquisitions. Despite the challenges, Reliant maintains a cautious outlook, focusing on cost management and potential strategic transactions to enhance shareholder value.