{"id":6146,"date":"2022-05-22T03:58:09","date_gmt":"2022-05-22T08:58:09","guid":{"rendered":"https:\/\/1reason.com\/re\/andrew-arroyo-real-estate-inc-reports-full-year-2021-results-and-2022-outlook\/6146\/"},"modified":"2022-05-22T22:58:09","modified_gmt":"2022-05-23T03:58:09","slug":"andrew-arroyo-real-estate-inc-reports-full-year-2021-results-and-2022-outlook","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/andrew-arroyo-real-estate-inc-reports-full-year-2021-results-and-2022-outlook\/6146\/","title":{"rendered":"Andrew Arroyo Real Estate, Inc. Reports Full Year 2021 Results and 2022 Outlook"},"content":{"rendered":"
(AARE), a mission-driven real estate and lending brokerage in the United States, announced today that revenue for the full year 2021 was $9.1 million, up 24% year-over-year. Gross profit for the full year was $1.4 million, an increase of 45% year-over-year. AARE\u2019s diversified service model contributed to year-over-year growth for the full year 2021. <\/p>\n

Net loss was $48,625 for the full year 2021 compared to a net gain of $20,999 in 2020. The majority of the net losses in 2021 were driven by approximately $205,000 in one-time expenses related to the IPO (initial public offering).<\/p>\n

The Company\u2019s cash position remains solid, with $540,000 in cash and an unused $75,000 credit line and $150,000 credit revolver available to invest in the growth of the business.<\/p>\n

2021 Milestones & Q1 2022 Operational Updates<\/u><\/strong> <\/strong><\/p>\n

As of March 17, 2022, we surpassed the initial minimum raise of our Regulation A offering of $1,000,000. As a result, we accepted subscriptions from 94 investors who became new shareholders as of March 17, 2022.<\/p>\n

On April 11, 2022, we appointed AST (American Stock Transfer) as our transfer agent to administrate our common stock. Simultaneously, we filed an application with OTC Markets to quote on the OTCQB. We are currently awaiting approval and a date for the quotation of our common stock to begin.<\/p>\n

During the fourth quarter of 2021, we ceased our staging and moving operations. After careful consideration, we decided our time and resources could be better spent growing other divisions of the Company and developing other income streams with less liability and overhead costs. The demand for physical home staging services has slowed due to virtual staging services, and the costs of operating the moving division outweighed the income and potential liability. As a result, we sold our moving truck for $54,000, which is approximately 50% more than our purchase price (approximately $37,000) in 2017 because of the high demand for commercial box trucks and the shortage in inventory.<\/p>\n

During the first quarter of 2022, we dissolved our joint venture partnership with Smart Real Estate Tools, LLC. This mutual decision of the partners was based on our agents\u2019 feedback, limited utilization, limited adoption, and the rising ongoing costs without growing profits. After careful consideration, we decided our goal of supporting our agents can be achieved by traditional methods of agent support rather than an emphasis on software tools. Andy Parker, the original developer of Smart Real Estate Tools, LLC, was offered a full-time employee position with us to oversee our Business Support department. Mr. Parker accepted the employment contract and is now directing our staff in that department.<\/p>\n

Outlook<\/u><\/strong> <\/strong><\/p>\n

\u201cWe continue to achieve consistent, measurable revenue growth while improving profitability and reinvesting our net income and free cash flow into growing the business nationwide,\u201d said Andrew Arroyo, founder, chairman, and CEO of AARE. \u201cDespite the many challenges we all faced in 2021, AARE had a record year with increases in revenue and gross profits.\u201d<\/p>\n

Arroyo continued, \u201cThe economic and political landscape of 2022 is certainly dressing itself up to be much different than in recent years. After 25 years in the industry, I have learned how to prepare the agency ahead of these market cycles. To that end, we have systems in place that helped us through previous rising interest rate environments, recessions, and unusual market conditions. Our salesforce is ready to navigate a change in the market or a potential recession. We will continue to provide short-term guidance, financial outlooks, and long-term targets for our expected revenue, gross and net profits, and free cash flow. We want our shareholders to have clear visibility into our growth plans, strategies, and how we plan to navigate the landscape as economic and political events continue to unfold.\u201d<\/p>\n

1Q-2Q 2022 and FY2022 Outlook:<\/strong><\/p>\n