MINNEAPOLIS, MN – March 9, 2021 – Insignia Systems, Inc. (Nasdaq: ISIG) (“Insignia”) today reported financial results
for the fourth quarter (“Q4”) and the full year ended December 31, 2020.
OVERVIEW
- Q4 2020 net sales decreased 19.2% to $5.1 million from $6.3 million in Q4 2019.
- Q4 2020 operating loss was $0.9 million compared to operating loss of $2.5 million in Q4 2019.
- Q4 2020 net loss was $0.9 million, or $0.50 per basic and diluted share, compared to net loss of $2.5 million,
or $1.43 per basic and diluted share in Q4 2019. - 2020 net sales were $17.7 million, a decrease of 19.5% from $22.0 million in 2019.
- 2020 operating loss was $4.6 million compared to operating loss of $5.6 million in 2019.
- 2020 net loss was $4.3 million, or $2.48 per basic and diluted share, compared to net loss of $5.0 million, or
$2.94 per basic and diluted share in 2019.
Insignia’s President and CEO, Kristine Glancy, commented, “2020 was a challenging year in our industry due to
COVID, however I’m very pleased with the progress the organization made, primarily driven by our non-POPS revenue.
Overall, non-POPS revenue increased 11% in 2020 versus 2019, and 12% in Q4 2020 versus Q4 2019. Our non-POPS
revenue contributed 53% of our total revenue in 2020, and continues to unlock new CPGs and retailers to our
organization, building a strong revenue pipeline. Our POPS revenue continues to be negatively impacted by
competitive pressures and brands not spending on POPS signage due to COVID, resulting in our POPS business
decreasing 34% in 2020 versus 2019 and 28% in Q4 2020 versus Q4 2019. We will continue to have increased pressure
on our POPS business heading into 2021, including the expiration in April 2021 of our 10 year selling agreement with
News America Marketing. Despite 2020 being a challenging year for the organization, the team was relentless in
navigating the unique environment, building pathways for future growth and optimizing our overall approach and
structure.”
Ms. Glancy continued, “We will continue to emphasize our focus and investments on our non-POPS revenue, as
we are optimistic about our future business pipeline. These businesses have allowed us to not only diversify our product
portfolio, but also our competitors and clients. Our display portfolio has experienced the most growth, followed by our
on-pack and digital solutions. We invested in rebranding ourselves with a whole new look, one in which highlights our
reinvigorated commitment to relationships and dynamic, high-level marketing efforts. We plan on having a stronger
voice in the industry with our new brand and are confident our new positioning will resonate with our clients. We
previously announced our decisions to optimize costs on our POPS signage business by relocating our office into a
significantly smaller space to save on lease expense, as well as shifting our production and IT to external partners and
will continue to further optimize our fixed costs. We have completed the majority of this transition, and will be fully
transitioned by the end of Q1 2021. Our team made extremely difficult decisions in 2020 regarding our people, portfolio
and clients, especially in the midst of a global pandemic. However, these decisions were deliberate to strategically shift
our source of revenue due to the intense market and competitive challenges to position ourselves for success in the
future. The company worked tirelessly to re-establish itself in the marketplace with a new look, develop new business
pipelines and optimize our overall go-to-market approach. None of this would be possible without the amazing team
members I have the honor of working alongside on a daily basis.”
