In This Article:
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Revenue Growth and Significant Margin Improvement Drives Increase in Quarterly Net Income to $1.98 Million -
FT. LAUDERDALE, FL / ACCESSWIRE / November 15, 2023 / Cardiff Lexington Corporation (OTC PINK:CDIX) announced today financial results for its third quarter ended September 30, 2023.
Third Quarter Financial Highlights
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9.8% growth in the Company's healthcare division drove 3.5% consolidated revenue growth to $3.4 million
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83% gross profit margin in the Company's healthcare division up from 64.7% last year drove consolidated gross profit margin to 79.6% for the quarter
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Operating income increased 52% to $2.3 million, or 67% of sales from $1.5 million, or 45% of sales in Q3 last year due to a deliberate focus on higher margin business and disciplined cost containment
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Net income increased 415% to $1.98 million from a loss of $628,000 in Q3 last year
Nine Month Financial Highlights
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16.2% growth in the Company's healthcare division drove 5.1% consolidated revenue growth to $9.8 million
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72.7% gross profit margin in the Company's healthcare division up from 63.4% last year drove consolidated gross profit margin to 73% for the nine-month period
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Operating income increased 41% to $4.7 million, or 47.9% of sales from $3.3 million, or 35.7% of sales in the nine-month period last year due to a deliberate focus on higher margin business and disciplined cost containment
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Net income increased 247% to $2.8 million from a loss of $1.9 million in the comparable nine-month period last year
Balance Sheet Highlights at September 30, 2023
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39% increase in total assets to $18.5 million compared to December 31, 2022
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250% increase in stockholders' equity to $975,351 from a negative shareholders' equity of $1.47 million at December 31, 2022
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Slightly positive working capital compared to a negative working capital at December 31, 2022
Alex Cunningham, Cardiff Lexington CEO, stated, "Results from our most recent third quarter reflect the culmination of efforts over the past several years to successfully position the Company within a growing healthcare sector, implement efficiencies, and streamline operations. We have taken the actions necessary to achieve and report sustainable, profitable results over consecutive quarters. Net income has reached $2.8 million thus far in 2023 which represents significant, quantifiable advancement for the Company. We expect this number to continue to grow moving forward as we begin to see the impact of the additional working capital being deployed from our new revolving financing.
Mr. Cunningham continued, "In conjunction with our significantly improving results from operations, we continue to prepare for a targeted early 2024 uplisting to a major exchange. To that end have filed with FINRA for the required share consolidation and also anticipate updating and amending our S1 registration filing to include 2023 Q3 results. In conjunction with this uplisting, it is also our intention to simplify our capital structure to best support our long term growth for shareholders."