Brownie's Marine Group Reports 8.2% Revenue Growth, Improved Gross Profit Margin, and Turnaround in Operating Income in Q3 2024

Brownie's Marine Group, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $2.44 million for the three months ended September 30, 2024, marking an 8.2% increase from $2.03 million in the same period of 2023. For the nine months ended September 30, 2024, total revenues reached $6.47 million, up 4.9% from $5.99 million in the prior year. Notably, the revenue growth was driven by strong performances in its subsidiaries, with BLU3 and SSI reporting increases of 25.1% and 42.8%, respectively. However, declines were observed in BTL and LBI, with decreases of 13.9% and 50.9% attributed to soft demand and loss of sales momentum.

The company's gross profit for Q3 2024 was $1.10 million, compared to $737,371 in Q3 2023, resulting in a gross profit margin of 44.7%, up from 32.3% a year earlier. This improvement was largely due to reduced manufacturing labor costs and increased margins for SSI. Operating income for the quarter was $189,943, a turnaround from an operating loss of $77,773 in Q3 2023. The net income for Q3 2024 was $173,943, compared to a net loss of $98,549 in the same quarter of the previous year.

As of September 30, 2024, the company reported total current assets of $3.66 million, a 32.9% increase from $2.74 million at the end of 2023. Total liabilities rose to $3.84 million from $3.18 million, while total stockholders' equity decreased slightly to $1.57 million from $1.59 million. The working capital surplus improved significantly to approximately $424,805, up 94.8% from $233,814 at the end of 2023.

Cash flow analysis revealed net cash used in operating activities of $(56,568) for the nine months ended September 30, 2024, a notable improvement from $(367,628) in the same period of 2023. The company also reported net cash provided by financing activities of $286,187, up from $199,740 in the prior year.

Strategically, Brownie's Marine Group continues to focus on enhancing its operational capabilities and addressing internal control weaknesses. The company has identified material weaknesses in its financial reporting processes and is planning to engage experienced consultants and expand its finance department to improve compliance and internal controls. The management is also evaluating various accounting systems to strengthen its financial oversight.