Implementation of Enterprise Resource Planning (ERP) System at ParkUSA
In the third quarter of 2022, we implemented our ERP system at the ParkUSA manufacturing facilities. Due primarily to an underinvestment in systems preceding our acquisition, and vastly broader product offerings, this implementation has caused, and may continue to cause, disruption and inefficiencies in ParkUSA's operations.
Impact of the COVID19 Pandemic on Our Business
Year Ended December 31, 2022 Compared to Year Ended December 31, 2021
Net sales. Net sales increased 37.3% to $457.7 million in 2022 compared to $333.3 million in 2021.
Gross profit. Gross profit increased 94.0% to $85.9 million (18.8% of net sales) in 2022 compared to $44.3 million (13.3% of net sales) in 2021.
As of December 31, 2022, our working capital (current assets minus current liabilities) was $187.9 million compared to $164.1 million as of December 31, 2021. Cash and cash equivalents totaled $3.7 million and $3.0 million as of December 31, 2022 and 2021, respectively.
Net Cash Provided by (Used in) Operating Activities
Net Cash Used in Investing Activities
Net Cash Provided by Financing Activities
Net cash provided by financing activities was $6.2 million in 2022 compared $71.0 million in 2021. Net borrowings (repayments) on the line of credit were $(3.1) million in 2022 compared $86.8 million in 2021. Net borrowings (repayments) on other debt were $10.8 million in 2022 compared to $(13.8) million in 2021.
The letters of credit outstanding as of December 31, 2022 relate to workers' compensation insurance. Based on the nature of these arrangements and our historical experience, we do not expect to make any material payments under these arrangements.
Our obligations under the Amended Credit Agreement are secured by a senior security interest in substantially all of our and our subsidiaries' assets.
Property and Equipment and Intangible Assets
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