Record revenue of $31 million (+12%), GAAP
Diluted EPS increased 17%, Non-GAAP Diluted EPS1 increased 20%
versus prior year
Higher gross margin software, services and
consumables mix increased to 40% of revenue
Paid down $4.3 million in debt related to the
early second quarter acquisition of Macro Integration Services
DecisionPoint™ Systems, Inc. (NYSE American: DPSI), the leading
mobility-first enterprise services and solutions company, today
announced second quarter 2023 financial results ended June 30,
2023.
Steve Smith, chief executive officer of DecisionPoint,
commented: “We continued to execute on our proven growth model
during the second quarter, benefiting from the synergies upside of
our past M&A and cross-selling activities. Additionally, we
acquired Macro Integration Services (MIS) at the beginning of the
quarter, which shifted our mix towards higher gross margin software
and services and gave us a significantly deeper presence in the
retail vertical, especially grocery and foodservice.
“The MIS acquisition is already playing an important role in
transforming the Company. In addition to the revenue mix shift
towards higher margin services and software, it expands our core
competencies, geographic footprint and solutions offering. Finally,
strong cash flow from operations enabled us to pay down a material
portion of the debt we took on at the end of the first quarter to
acquire MIS.”
Second Quarter Highlights
(2023 versus 2022)
- Revenue increased 12.4% to $30.9 million;
- Gross Profit increased 22.5% to $7.7 million; Gross Margin
increased 210 basis points to 25.1%;
- GAAP Operating Income decreased 32.1% to $1.3 million;
- GAAP Net Income and diluted EPS increased 15.8% and 16.9% to
$0.8 million and $0.11, respectively;
- Non-GAAP Net Income1 and non-GAAP diluted EPS increased 26.6%
and 19.6% to $1.0 million and $0.13, respectively;
- Adjusted EBITDA1 decreased 9.4% to $2.5 million;
- Paid down $4.3 million of debt related to the April 1, 2023
acquisition of MIS.
1See GAAP to non-GAAP explanations and reconciliations at the end
of this release
Second Quarter Select
Financial Metrics: 2023 versus 2022
(in $M except for EPS)
2Q23
2Q22
Change
YTD FY23
YTD FY22
Change
Total Revenue
$ 30.9
$ 27.5
12.4%
$ 58.0
$ 47.2
22.8%
Hardware
$ 19.7
$ 22.7
-13.0%
$ 41.9
$ 38.3
9.5%
Software and Services
$ 11.2
$ 4.8
132.6%
$ 16.0
$ 8.9
79.4%
Gross Profit
$ 7.7
$ 6.3
22.5%
$ 13.8
$ 11.0
25.4%
Gross Margin
25.1%
23.0%
23.8%
23.3%
GAAP Operating Income
$ 1.3
$ 2.0
-32.1%
$ 2.5
$ 2.2
14.1%
GAAP Net Income
$ 0.8
$ 0.7
15.8%
$ 1.7
$ 1.6
8.0%
GAAP Diluted EPS
$ 0.11
$ 0.09
16.9%
$ 0.22
$ 0.20
8.2%
Non-GAAP Net Income
$ 1.0
$ 0.8
26.6%
$ 2.3
$ 2.1
11.8%
Non-GAAP Diluted EPS
$ 0.13
$ 0.11
19.6%
$ 0.30
$ 0.27
9.5%
Adjusted EBITDA
$ 2.5
$ 2.7
-9.4%
$ 4.6
$ 3.8
21.3%
*numbers may not add due to rounding
Balance Sheet and Liquidity as of June
30, 2022
Cash and cash equivalents were $7.2 million, compared to $7.6
million on December 31, 2022. Short-term and long-term debt were
$1.0 million and $6.9 million, respectively. The decrease in cash
and increase in debt was related to the Company drawing down on its
credit facilities to close the acquisition of MIS on April 1, 2023
and subsequently paying down $4.3 million in debt at the end of the
quarter.
2023 Commentary and Third Quarter
Guidance (ending 9/30/23)
“Looking to the third quarter, we are targeting $27.0 to $29.0
million in revenue (5 to 13% revenue growth) and adjusted EBITDA in
the range of $2.0 to 2.3 million. Our business remains robust as,
with the acquisition of MIS, we now have five new top ten customers
and a much deeper play in providing retail technology solutions to
customers,” concluded Smith.
Conference Call and Webcast
Information
Management will host an earnings conference call and webcast at
11:00 a.m. Eastern Time. Q&A with investors will follow
management's presentation of the results, outlook and strategy.
Live Call Information:
Date: August 15, 2023 Time: 11:00 a.m. Eastern Time
Toll-Free: 1-877-407-3982 Toll/International:
1-201-493-6780 Call me™: Click Call me Link for instant
telephone access to the event (Call me™ link will be made active 15
minutes before the scheduled start time). Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1628170&tp_key=86d6b02517
Replay Information:
Toll-Free: 1-844-512-2921 Toll/International:
1-412-317-6671 Replay Pin Number: 13740529 Replay
Start: Tuesday, August 15, 2023, 12:00 p.m. ET Replay
Expiry: Tuesday, August 22, 2023 at 11:59 p.m. ET
About DecisionPoint
Systems
DecisionPoint Systems Inc. delivers mobility-first managed
service and integration solutions to healthcare, supply chain, and
retail customers, enabling them to make better and faster decisions
in the moments that matter—the decision points. Our mission is to
help businesses consistently deliver on those moments—accelerating
growth, improving worker productivity, and lowering risks and
costs. For more information about DecisionPoint Systems, Inc.,
visit https://www.decisionpt.com.
Forward-Looking Statements
In this press release, all statements that are not purely about
historical facts, including, but not limited to, those in which we
use the words "believe," "anticipate," "expect," "plan," "intend,"
"estimate, "target" and similar expressions, are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. While these forward-looking statements
represent our current judgment of what may happen in the future,
actual results may differ materially from the results expressed or
implied by these statements due to numerous important factors,
including, but not limited to, those described in our most recent
report on SEC Form 10-K (under the headings "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations"), which may be revised or supplemented in
subsequent reports on SEC Forms 10-Q and 8-K. We are under no
obligation, and expressly disclaim any obligation, to update the
forward-looking statements in this press release, whether as a
result of new information, future events or otherwise.
DecisionPoint Systems,
Inc.
Condensed Consolidated Balance
Sheets
(in thousands, except par
value)
(Unaudited)
June 30,
December 31,
2023
2022
ASSETS
Current assets:
Cash
$
7,225
$
7,642
Accounts receivable, net
16,566
17,085
Inventory, net
2,446
4,417
Deferred costs
3,184
2,729
Prepaid expenses and other current
assets
397
399
Total current assets
29,818
32,272
Operating lease assets
3,778
2,681
Property and equipment, net
2,920
1,817
Deferred costs, net of current portion
2,744
2,868
Deferred tax assets
-
848
Intangible assets, net
8,993
4,531
Goodwill
24,379
10,499
Other assets
105
41
Total assets
$
72,737
$
55,557
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
12,628
$
19,755
Accrued expenses and other current
liabilities
6,283
5,357
Deferred revenue
7,367
6,021
Current portion of earnout
consideration
5,520
-
Current portion of long-term debt
1,003
3
Current portion of operating lease
liabilities
866
529
Total current liabilities
33,667
31,665
Deferred revenue, net of current
portion
3,724
4,331
Long-term debt
6,891
143
Noncurrent portion of operating lease
liabilities
3,516
2,706
Long-term portion of earnout
consideration
4,316
-
Deferred tax liabilities
1,909
-
Other liabilities
6
130
Total liabilities
54,029
38,975
Commitments and contingencies (Notes 6 and
10)
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000
shares authorized; no shares issued or outstanding
-
-
Common stock, $0.001 par value; 50,000
shares authorized; 7,628 and 7,416 shares issued and outstanding,
respectively
8
7
Additional paid-in capital
38,853
38,429
Accumulated deficit
(20,153
)
(21,854
)
Total stockholders’ equity
18,708
16,582
Total liabilities and stockholders’
equity
$
72,737
$
55,557
DecisionPoint Systems,
Inc.
Condensed Consolidated
Statements of Income and Comprehensive Income
(in thousands, except per share
data)
(Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2023
2022
2023
2022
Net sales:
Product
$
19,746
$
22,692
$
41,912
$
38,272
Service
11,166
4,814
16,039
8,955
Net sales
30,912
27,506
57,951
47,227
Cost of sales:
Product
15,980
17,869
33,865
30,290
Service
7,184
3,310
10,287
5,935
Cost of sales
23,164
21,179
44,152
36,225
Gross profit
7,748
6,327
13,799
11,002
Operating expenses:
Sales and marketing expense
2,491
2,384
4,859
4,560
General and administrative expenses
3,911
1,960
6,406
4,220
Total operating expenses
6,402
4,344
11,265
8,780
Operating income
1,346
1,983
2,534
2,222
Interest expense
(210
)
(9
)
(223
)
(35
)
Other income (expense)
9
(21
)
9
(16
)
Income before income taxes
1,145
1,953
2,320
2,171
Income tax expense
(310
)
(1,232
)
(619
)
(598
)
Net income and comprehensive income
attributable to common stockholders
$
835
$
721
$
1,701
$
1,573
Earnings per share attributable to
stockholders:
Basic
$
0.11
$
0.10
$
0.23
$
0.22
Diluted
$
0.11
$
0.09
$
0.22
$
0.20
Weighted average common shares
outstanding
Basic
7,601
7,222
7,447
7,209
Diluted
7,935
7,691
7,869
7,720
DecisionPoint Systems,
Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(Unaudited)
Six Months Ended
June 30,
2023
2022
Cash flows from operating
activities
Net income
$
1,701
$
1,573
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
1,297
1,128
Amortization of inventory valuation
adjustment
120
-
Loss on fixed asset disposal
235
22
Share-based compensation expense
216
275
Provision for inventory obsolescense
2
-
Deferred income taxes, net
(447
)
589
Provision for doubtful accounts
118
-
Changes in operating assets and
liabilities:
Accounts receivable
10,525
(4,950
)
Inventory, net
4,479
1,369
Deferred costs
(331
)
(305
)
Prepaid expenses and other current
assets
93
(171
)
Accounts payable
(9,936
)
4,479
Accrued expenses and other current
liabilities
(2,596
)
(501
)
Operating lease liabilities
(63
)
264
Deferred revenue
(405
)
9,100
Net cash provided by operating
activities
5,008
12,872
Cash flows from investing
activities
Purchases of property and equipment
(579
)
(1,095
)
Cash paid for acquisitions, net of cash
acquired
(12,794
)
(4,525
)
Net cash used in investing activities
(13,373
)
(5,620
)
Cash flows from financing
activities
Repayment of term debt
(252
)
(2
)
Line of credit, net
3,000
-
Proceeds from term loan
5,000
-
Cash paid for taxes on the cashless
exercises of stock options
-
(1,403
)
Proceeds from exercise of warrants
187
-
Proceeds from exercise of stock
options
13
25
Net cash provided by (used in) financing
activities
7,948
(1,380
)
Change in cash
(417
)
5,872
Cash, beginning of period
7,642
2,587
Cash, end of period
$
7,225
$
8,459
Supplemental disclosures of cash flow
information
Cash paid for interest
$
88
$
31
Cash paid for income taxes
$
419
$
109
Supplemental disclosure of non-cash
activities
Right-of-use assets obtained in exchange
for new operating lease liabilities
$
-
$
3,211
Cashless exercise of warrants
$
9
$
3,508
Trended Financial
Information
(in $M except for EPS)
1Q22
2Q22
3Q22
4Q22
1Q23
2Q23
FY21
FY22
YTD FY23
Total Revenue
$
19.7
$
27.5
$
25.7
$
24.5
$
27.0
$
30.9
$
65.9
$
97.4
$
58.0
Hardware
$
15.6
$
22.7
$
21.0
$
19.8
$
22.2
$
19.7
$
44.4
$
71.8
$
41.9
Software and Services
$
4.1
$
4.8
$
4.7
$
4.7
$
4.9
$
11.2
$
15.5
$
18.3
$
16.0
Gross Profit
$
4.7
$
6.3
$
5.8
$
6.3
$
6.1
$
7.7
$
15.3
$
23.1
$
13.8
Gross Margin
23.7
%
23.0
%
22.4
%
25.9
%
22.4
%
25.1
%
23.2
%
23.7
%
23.8
%
Operating (loss) Income
$
0.2
$
2.0
$
1.5
$
0.7
$
1.2
$
1.3
$
0.4
$
4.4
$
2.5
GAAP Net (loss) Income
$
0.9
$
0.7
$
1.1
$
0.4
$
0.9
$
0.8
$
1.4
$
3.1
$
1.7
GAAP Diluted EPS
$
0.11
$
0.09
$
0.15
$
0.07
$
0.11
$
0.11
$
0.19
$
0.41
$
0.22
Non-GAAP Net Income
$
1.3
$
0.8
$
1.2
$
0.7
$
1.3
$
1.0
$
1.5
$
4.1
$
2.3
Non-GAAP Diluted EPS
$
0.16
$
0.11
$
0.16
$
0.11
$
0.16
$
0.13
$
0.20
$
0.54
$
0.30
Adjusted EBITDA
$
1.1
$
2.7
$
2.3
$
1.8
$
2.2
$
2.5
$
3.1
$
7.8
$
4.6
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements
presented on a GAAP basis, we have provided non-GAAP financial
information, namely non-GAAP Net Income, non-GAAP diluted EPS and
Adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization adjusted for transaction-related and non-recurring
items). We believe that these non-GAAP measures provide investors
with a better understanding of how the results relate to our
historical performance as well as when comparing our results to
other publicly-traded companies. The additional adjusted
information is not meant to be considered in isolation or as a
substitute for GAAP financials. Management believes that these
adjusted measures reflect the essential operating activities of the
Company. A reconciliation of non-GAAP financial information appears
below:
Supplemental Financial
Information
Reconciliation of Select GAAP
Financial Measures to Non-GAAP Financial Measures
(in thousands, except per share
data)
(unaudited)
Three Months Ended
Six Months Ended
June 30
June 30
2023
2022
2023
2022
Net income, as reported
$
835
$
721
$
1,701
$
1,573
Share-based compensation
20
50
216
275
Business acquisition costs
189
25
410
202
NYSE American uplisting costs
-
29
-
-
Non-GAAP net income
$
1,044
$
825
$
2,327
$
2,050
Depreciation and amortization
908
676
1,472
1,128
Income taxes
310
1,232
619
595
Interest expense
210
9
223
34
Adjusted EBITDA
$
2,471
$
2,742
$
4,640
$
3,807
Diluted EPS, as reported
$
0.11
$
0.09
$
0.22
$
0.20
Adjusted Diluted EPS
$
0.13
$
0.10
$
0.30
$
0.27
Weighted average diluted common shares
outstanding
7,935
7,691
7,869
7,720
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230814893119/en/
Investor Relations Contact: Brian Siegel, IRC, MBA Senior
Managing Director, Hayden IR (346) 396-8696
Brian@haydenir.com
Grafico Azioni DecisionPoint Systems (AMEX:DPSI)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni DecisionPoint Systems (AMEX:DPSI)
Storico
Da Giu 2023 a Giu 2024