Alpine 4 Technologies sees 3Q revenue jump 23% driven by sales from its subsidiaries

Alpine 4 Technologies Ltd (OTCQB:ALPP), a technology holding company that provides electronic contract manufacturing solutions, posted third-quarter results on Monday that saw its revenue jump 23% year-over-year driven by strong sales from its subsidiaries.

For the period ended September 30, 2020, the Phoenix, Arizona-based group reported revenue of $8.72 million, bringing the group’s total revenue for the first three quarters this year to around $26.6 million.

Alpine 4 has business ventures in automotive technologies, electronics manufacturing, fabrication technologies and clean energy solutions.

READ: Alpine 4 Technologies says it has been approved on one of two patents filed around its Brake Active rear-end avoidance collision product 

In a statement accompanying the numbers, Alpine 4 CEO Kent B. Wilson said: “The third quarter was an interesting quarter for Alpine 4 and our subsidiaries. Despite the lingering effects of the coronavirus (COVID-19) epidemic, Alpine 4 grew at an impressive rate.”

“I estimate that Q3 2020 would have been closer to $11.4 million if production and labor restrictions were not a hindrance during the quarter. What these numbers do not show is the locked up kinetic revenue looming in these delayed sales. We estimate that $1.8 million of this revenue is still available to be generated and should lead to some impressive numbers in mid-2021.”

Wilson said the pandemic played a major role in its “fixed and variable labor costs.”

“The company accepted the Paycheck Protection Program (PPP) funds that were available to us, and because of that, we were able to maintain our labor force at close to 92%. However, our revenue was off by almost 30%. Those added payroll costs are also reflected in our financials,” he said. “I will also point out that we feel very confident that all of the $3.4 million in PPP funds will be forgiven, and we expect that number to be reflected in our year-end financials.”

Wilson noted that despite the challenges that “COVID brought on during the quarter,”  the group still feels “very bullish” about where it is headed.

The company said that its construction service company, Morris Sheet Metal, showed “strength” through the COVID-19 pandemic due to its health care clientele.

Alpine 4 is a publicly-traded group that acquires businesses that fit into its disruptive business model for Drivers, Stabilizers and Facilitators (DSF).

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Story by ProactiveInvestors