Costar Technologies, Inc. Announces Financial Results For the Fourth Quarter and Year Ended December 31, 2021

COPPELL, Texas, March 31, 2022

COPPELL, Texas, March 31, 2022 /PRNewswire/ -- Costar Technologies, Inc. (the "Company") (OTC Markets Group: CSTI) announced today its financial results for the fourth quarter and year ended December 31, 2021.

Financial Results for the Quarter Ended December 31, 2021

• Revenues of $14,779, a 13.9% increase compared to the fourth quarter of 2020.
• Operating expenses were up 2.2% to $4,465, compared to $4,368 in the fourth quarter of 2020.
• GAAP net loss of ($61) or ($0.04) per diluted share, compared to GAAP net income of $12, or $0.01 per diluted share, in the fourth quarter of 2020.
• Adjusted earnings of $286, or $0.17 per diluted share, compared to ($156), or ($0.09) per diluted share, for the quarter ended December 31, 2020. Adjusted earnings, a non-GAAP measure, is defined below.
• Adjusted EBITDA of $665, compared to $140 for the quarter ended December 31, 2020. Adjusted EBITDA, a non-GAAP measure, is defined below.

Financial Results for the Year Ended December 31, 2021

• Revenues of $52,924, a 12.3% decrease compared to the prior year.
• Operating expenses, excluding a third quarter 2020 impairment loss of $939 and restructuring costs of $635, were down 17.6% to $17,600, compared to $21,368 in the prior year.
• GAAP net income of $4,366 or $2.64 per diluted share, compared to GAAP net loss of ($8,971), or ($5.60) per diluted share, in the prior year.
• Adjusted earnings of ($70), or ($0.04) per diluted share, compared to $880, or $0.55 per diluted share, for the year ended December 31, 2020. Adjusted earnings, a non-GAAP measure, is defined below.
• Adjusted EBITDA of $1,395, compared to $2,264 for the year ended December 31, 2020. Adjusted EBITDA, a non-GAAP measure, is defined below.

Scott Switzer, the Company's Interim Chief Executive Officer, stated, "Our fourth quarter results demonstrate the successful execution of our One Costar initiative. We ended the year with a record backlog of over $6 million that will ship throughout 2022. We believe our ability to adapt our business model to meet shifting customer demands helped drive our results, and more importantly, better positions us for when macroeconomic conditions and supply chain shortages improve. While we continue to face ongoing material and labor inflation, we are pleased with the progress made, the initiatives we are pursuing and our positioning for long-term, sustainable growth."

Sarah Ryder, the Company's Chief Financial Officer, went on to say, "We closed out 2021 with our strongest revenue quarter of the year. Although the overall inefficiencies produced by the global supply chain and labor conditions created some gross margin contraction during the quarter, continued expense management drove an additional $0.4 million decrease to our overall debt position in the fourth quarter of 2021. As we enter 2022, I'm confident we will continue to drive revenue growth and improved profitability in the coming year." 

The Company's independent auditors completed their analysis of the Company's financial condition. The Independent Auditor's Review Report, including financial statements and applicable footnote disclosures, is available on our website at www.costartechnologies.com.