Quality Industrial Corp. Reports Significant Revenue Growth, Net Income Turnaround in Latest Quarter

Quality Industrial Corp. (QIND) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $2.66 million for the three months and $5.98 million for the nine months, marking a substantial increase from the previous year when no revenue was reported. This growth is primarily attributed to the acquisition of Al Shola Gas, which contributed to a 17% revenue increase in Q3 2024 compared to the same period in 2023.

Gross profit for the three months ended September 30, 2024, was $1.08 million, resulting in a gross profit margin of 40.6%. For the nine-month period, gross profit totaled $3.65 million, with a gross profit margin of 38.9%. The increase in gross profit percentage is linked to a strategic shift towards higher-margin Bulk LPG products.

Operating expenses for Q3 2024 were reported at $1.19 million, a rise from $825,608 in Q3 2023, while total operating expenses for the nine months were $2.10 million, up from $900,067 in the prior year. This increase is attributed to the administrative and operational costs associated with Al Shola Gas and expenses related to the planned uplisting to NASDAQ.

Despite the revenue growth, QIND reported a net loss of $283,750 for Q3 2024, an improvement from a loss of $1.94 million in Q3 2023. For the nine months, the company recorded a net income of $271,383, a significant turnaround from a net loss of $3.61 million in the same period last year. The net loss attributable to QIND stockholders for Q3 2024 was $(469,107), compared to $(1,939,269) in Q3 2023.

As of September 30, 2024, QIND's total assets increased to $17.06 million, up from $8.84 million at the end of 2023. Total liabilities also rose to $15.11 million from $8.09 million, resulting in total stockholders' equity of $1.95 million, a notable increase from $743,499 at the end of the previous fiscal year.

The company has been active in strategic acquisitions, including the 51% interest in Al Shola Gas for $10 million, which is expected to enhance its operational capabilities in the LPG sector. However, the planned acquisition of Quality International was terminated in April 2024 due to failed negotiations.

Management has indicated plans to address cash flow deficits through borrowings and security sales over the next twelve months, as the company continues to navigate its growth trajectory in the industrial sector.