Surge Components, Inc. Announces Fiscal Full Year 2023 Results

Surge Components, Inc. (“Surge” or the “Company”) (OTC Pink: SPRS), a leading supplier of capacitors, discrete semi-conductors, switches, and audible/sounding devices, today announced financial results for the fiscal year ended November 30, 2023.

Operational Highlights

• The Company continues to invest in growth assets, including new sales talent.
• Challenge and Surge divisions are well-positioned to capitalize on the industry’s eventual rebound as industry dynamics and prospects begin to improve.
• The Company continues to maintain its superior lead times and stable production to better serve customers and preserve a competitive advantage over peers.
• The Company continues to successfully design customized new products for customers to differentiate and increase competitiveness.

Financial Highlights for the Fiscal Year Ended November 30, 2023

• Net income available to common shareholders of $967,110; EPS of $0.17 compared to net income available to common shareholders of $3,731,146; EPS of $0.65 in the prior-year-period.
• Net sales of $36.3 million, compared to $51.9 million in the prior-year period.
• Gross profit of $9.9 million, compared to $14.3 million in the prior-year period.
• Gross profit margin of 27.4%, compared to 27.6% in the prior-year period.

“I am especially proud of the team’s hard and diligent work to remain agile and maintain cost discipline in the face of a sustained and challenging macroeconomic environment,” said Ira Levy, President and Chief Executive Officer of Surge. “While in 2023 the industry was marked by customers consuming their excess inventory levels due to 2022’s one-time over-ordering to ensure supply during a period of disruptive supply chain issues, the company was prepared and continued to execute against its strategic plan. In this challenging environment we remained profitable by being nimble and fiscally prudent in our operations as we achieved gross profit margins in line with the same period last year, 27.4% in FY2023 versus 27.6% in FY2022. Furthermore, we strengthened our balance sheet by reducing our debt burden by over 14%, or $1 million, while increasing our liquidity, both over the prior year period.