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CompoSecure, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports net sales of $107.1 million for the quarter, an increase from $96.9 million in the same quarter the previous year. This growth is attributed to a significant rise in international sales.
Domestic sales decreased by 5% to $80.0 million, while international sales increased by 115% to $27.1 million, contributing to the overall revenue growth.
Gross profit for the quarter was $55.4 million, compared to $48.9 million in the previous year, with a gross margin increase to 52% from 50%.
Operating expenses rose to $26.3 million from $20.1 million, primarily due to increased professional fees, salaries, and stock-based compensation.
Income from operations was $29.1 million, a slight increase from $28.8 million. However, the operating margin decreased to 27% from 30% due to higher operating expenses.
Other expenses increased significantly to $113.9 million, primarily due to changes in the fair value of earnout consideration liability and warrant liability.
The company reported a net loss of $85.5 million, compared to a net income of $38.0 million in the previous year, largely due to the aforementioned increase in other expenses.
During the quarter, CompoSecure completed the Resolute Transaction, resulting in Resolute becoming the majority owner with a 60% voting interest.
The filing also details the impact of the Resolute Transaction on the company's tax receivable agreement and the temporary increase in the exchange rate for the company's exchangeable notes.
CompoSecure's balance sheet shows total assets of $435.4 million, with cash and cash equivalents increasing to $52.7 million from $41.2 million at the end of 2023.
The company continues to focus on expanding its international market presence and enhancing its product offerings, particularly in the digital asset storage and authentication solutions sectors.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CompoSecure Inc. quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.