CTM Q1 2024 Financial Results

Exchange: American Stock Exchange

Sector: Technology

Industry: Information Technology Services

Report Date: 2024-05-16

CIK: 0001877939

Reported Currency: USD

Report Filing Date: 2024-05-15

Report Published Date: 2024-03-31

Link to Full Report: SEC Archive

Direct Report Link: CTM Q1 2024 Financial Report

Executive Summary

CTM reported its Q1 2024 financial results, showing overall mixed performance metrics within the Technology sector, particularly in Information Technology Services.

Financial Performance

For the first quarter of 2024, CTM recorded a revenue of $11.34M. The cost of revenue stood at $6.82M, resulting in a gross profit of $4.52M and a gross profit margin of 39.84%.

Operating expenses were reported at $4.24M, aligning with the total selling, general, and administrative expenses. The company noted an operating income of $276K with associated ratios such as EBITDA ratio and operating income ratio at 2.44% each.

CTM faced significant other income and expense items totaling -$4.25M, leading to a pre-tax loss of $3.98M. After accounting for an income tax expense of -$134K, the net income for the period was -$4.11M, translating to an earnings per share (EPS) of -$0.08.

CTM's working capital stood at $9.71M, with a current market capitalization of $13.78M.

Cash Flow Analysis

Cash flows from operating activities reflected a deficit of $2.43M, and the net change in cash was -$2.37M. Ending cash and cash equivalents were reported at $2.25M. The company did not report material capital expenditures or significant changes in financing activities aside from debt repayment operations.

The free cash flow for the period was recorded at -$2.43M.

Balance Sheet Highlights

The company's total assets were valued at $30.47M with key components including net receivables of $6.94M, property, plant, and equipment net value of $1.56M, and goodwill and intangible assets collectively valued at $19.13M.

Total liabilities for the quarter were minimal at $76.31K, and the total stockholders' equity amounted to $258.57K.

Key Ratios and Metrics

CTM exhibited a strong current ratio (12,822.50%) and quick ratio (12,045.90%), indicating high liquidity. However, the return on equity (ROE) was -143.48%, and the return on assets (ROA) was -57.72%, signifying inefficiencies in asset utilization and equity returns.

Profitability ratios such as gross profit margin (41.06%), operating profit margin (-25.47%), and net profit margin (-37.71%) show mixed performance with a notable deficit at operating and net levels.

The company's price-to-earnings ratio (P/E) was -0.81, due to negative earnings, and the price-to-sales ratio was a modest 0.30x. Inventory turnover and payables turnover both reflected zero times, indicating potential inventory and accounts management issues. CTM's asset turnover was 1.53 times, suggesting relatively effective asset utilization to generate sales.

Comparative Peer Analysis

CTM's ratios were compared against peers with the following highlights:

• Gross Profit Margin (41.06%) was higher than the peer average of 21.36%.
• Operating Profit Margin (-25.47%) was better than the peer worst performance (-1,134.28%) but significantly below the peer best (3.24%).
• Net Profit Margin (-37.71%) was consistently below the best peer but better than the worst peer's performance.
• Return on Equity (-143.48%) was lower than the peer average of 55.10%, reflecting poor returns.
• Liquidity ratios (Current and Quick Ratios) significantly surpassed peer averages, indicating higher liquidity.
• Price metrics varied, with a low price-to-sales ratio (29.54%) compared to an average of 169.72% among peers.

2024 Financial Report of CTM. All rights reserved.