PowerFleet, Inc. (Nasdaq:
PWFL), a global leader and provider of
subscription-based wireless IoT and M2M solutions for securing,
controlling, tracking, and managing high-value enterprise assets,
reported results for the fourth quarter and full year ended
December 31, 2019.
Management Commentary“The fourth quarter was a
strong finish to a transformational year for PowerFleet,” said CEO
Chris Wolfe. “As our results for the quarter demonstrated, we are
beginning to recognize the material financial benefits as well as
operational efficiencies and deal flow as a larger organization.
This was highlighted by the record $35.1 million in total revenue,
which was up 17% year-over-year on a pro forma basis, driven by
solid contribution in high-margin recurring solutions and services
revenue. We ended the quarter with approximately 550,000 mobile
subscription units on our platform, putting us on track to meet our
target of at least 600,000 mobile subscriber units by the end of
2020.
“Our powerful portfolio of solutions spanning the industrial,
logistics and commercial vehicle industries continues to
differentiate PowerFleet in the market. The best companies in the
world continue to choose our mobility platforms and full end-to-end
solutions to power their asset and fleet monitoring and management
needs, and this was again validated in the fourth quarter. We
secured several major new wins with leading transportation
companies in our logistics business and had similar success in our
industrial business, highlighted by multiple wins through our
dealer channel. Our sales through Jungheinrich continue to build
momentum, as we are seeing an increasing volume of orders secured
in Europe. In our connected car business, we continued to execute
on our program with Avis Budget Group and are in the process of
bringing Pointer’s products into the U.S. to pursue the class 1
through class 5 fleet management market.
“Along that line, the integration of Pointer is proceeding
rapidly, with several milestones achieved in the first six months
post-close, including the consolidation of our strategic and
tactical plans and product roadmaps. The alignment of our sales and
go-to-market motions are yielding early success, validating one of
the core theses for the business combination. In addition to our
growth and cross-selling initiatives, we’ve already eliminated
duplicative corporate costs and have identified more than $3
million in supply chain savings that we expect to realize in 2020
as well as incremental cost savings expected in 2021 related to the
platform consolidation currently underway.
“Today, we are a much stronger business with greater scale and
resources, an industry-leading end-to-end IoT platform, significant
cross-selling opportunities, and robust secular tailwinds working
in our favor. Longer term, our vision of creating PowerFleet as a
global IoT software and solutions provider is progressing, which we
believe will generate significant shareholder value through global
operational and financial scale, sustainable profitability and cash
flow generation.”
Fourth Quarter 2019 Financial ResultsFinancial
results for the quarter ended December 31, 2019 include
consolidated results for both I.D. Systems, Inc. and Pointer
Telocation Ltd., which was acquired on October 3, 2019. Financial
results for the quarter ended December 31, 2018 include only
financial results from I.D. Systems, Inc. prior to its acquisition
of Pointer Telocation Ltd.
Total revenue increased to $35.1 million from $11.5 million in
the same year-ago period. Services revenue was $18.7 million (53.2%
of total revenue), compared to $4.3 million (37.6% of total
revenue) in the same year-ago period. Product revenue was $16.5
million (46.8% of total revenue), compared to $7.2 million (62.4%
of total revenue) in the same year-ago period.
Gross profit increased to $16.6 million (47.4% of total revenue)
from $6.1 million (53.3% of total revenue) in the same year-ago
period. Service gross profit was $11.6 million (62.3% of total
service revenue), compared to $3.1 million (70.7% of total service
revenue) in the same year-ago period. Product gross profit was $5.0
million (30.4% of total product revenue), compared to $3.1 million
(42.8% of total product revenue) in the same year-ago period.
Selling, general and administrative expenses were $12.7 million,
compared to $6.2 million in the same year-ago period. Research and
development expenses were $3.0 million, compared to $1.9 million in
the same year-ago period. Depreciation and amortization expenses
were $2.0 million, compared to $387,000 in the same year-ago
period. Severance expenses related to the Pointer acquisition were
$1.7 million, compared to no severance expenses in the same
year-ago period. Acquisition-related expenses were $462,000,
compared to $428,000 in the same year-ago period.
Net loss attributable to common stockholders totaled $5.2
million or $(0.18) per basic and diluted share (based on 28.6
million weighted average shares outstanding), compared to net loss
of $2.8 million or $(0.16) per basic and diluted share in the same
year-ago period (based on 17.6 million weighted average shares
outstanding).
Adjusted EBITDA, a non-GAAP metric, totaled $2.1 million or
$0.06 per diluted share (based on 35.5 million weighted average
shares outstanding), compared to adjusted EBITDA loss of $595,000
or $(0.03) per basic and diluted share (based on 17.6 million
weighted average shares outstanding) in the same year-ago period
(See the section below titled “Non-GAAP Financial Measures” for
more information about adjusted EBITDA and its reconciliation to
GAAP net income/loss).
At quarter-end, the company had $16.4 million in
cash and cash equivalents. The company’s working capital position
at quarter-end was $29.3 million.
Full Year 2019 Financial
ResultsFinancial results for the full year ended
December 31, 2019 include financial results from Pointer Telocation
Ltd., which was acquired on October 3, 2019. Financial results for
the year ended December 31, 2018 include only financial results
from I.D. Systems, Inc. prior to its acquisition of Pointer
Telocation Ltd.
Total revenue increased to $81.9 million from $53.1 million in
2018. Services revenue was $36.5 million (44.6% of total revenue),
compared to $16.2 million (30.5% of total revenue) in 2018. Product
revenue was $45.4 million (55.4% of total revenue), compared to
$36.9 million (69.5% of total revenue) in 2018.
Gross profit increased to $38.4 million (46.8% of total revenue)
from $25.8 million (48.6% of total revenue) in 2018. Services gross
profit was $22.9 million (62.8% of services revenue), compared to
$11.5 million (71.4% of services revenue) in 2018. Product gross
profit was $15.4 million (34.0% of product revenue), compared to
$14.3 million (38.6% of product revenue) in 2018.
Selling, general and administrative expenses were $29.8 million,
compared to $22.2 million in 2018. Research and development
expenses were $8.5 million, compared to $6.9 million in 2018.
Depreciation and amortization expenses were $3.3 million, compared
to $1.6 million in 2018. Severance expenses related to the Pointer
acquisition were $1.7 million, compared to no severance expenses in
2018. Acquisition-related expenses were $5.1 million, compared to
$867,000 in 2018.
Net loss attributable to common stockholders totaled $12.0
million or $(0.59) per basic and diluted share (based on $20.5
million weighted average shares outstanding), compared to net loss
of $5.8 million or $(0.34) per basic and diluted share in 2018
(based on 17.2 million weighted average shares
outstanding).
Adjusted EBITDA, a non-GAAP metric, totaled $3.2 million or
$0.14 per diluted share (based on 22.3 million weighted average
shares outstanding), compared to adjusted EBITDA loss of $23,000 or
$0.00 per basic and diluted share (based on 17.2 million weighted
average shares outstanding) in 2018 (See the section below titled
“Non-GAAP Financial Measures” for more information about adjusted
EBITDA and its reconciliation to GAAP net income/loss).
Investor Conference
CallPowerFleet management will discuss these
results and business outlook on a conference call today (Thursday,
March 12, 2020) at 8:30 a.m. Eastern time (5:30 a.m. Pacific
time).
PowerFleet CEO Chris Wolfe and CFO Ned Mavrommatis
will host the call, followed by a question and answer session where
sell-side analysts and major institutional shareholders can ask
questions.
U.S. dial-in: (877) 307-1379International dial-in: (443)
877-4066Passcode: 3989798
The conference call will be broadcast
simultaneously and available for replay in the investor section of
the company’s website at ir.powerfleet.com.
If you have any difficulty connecting with the conference call,
please contact PowerFleet’s investor relations team at (949)
574-3860.
Non-GAAP Financial
MeasuresTo supplement its financial statements
presented in accordance with Generally Accepted Accounting
Principles (GAAP), PowerFleet provides certain non-GAAP measures of
financial performance. These non-GAAP measures include adjusted
EBITDA and adjusted EBITDA per basic and diluted share. Reference
to these non-GAAP measures should be considered in addition to
results prepared under current accounting standards, but are not a
substitute for, or superior to, GAAP results. These non-GAAP
measures are provided to enhance investors’ overall understanding
of PowerFleet’s current financial performance. Specifically,
PowerFleet believes the non-GAAP measures provide useful
information to both management and investors by excluding certain
expenses, gains and losses that may not be indicative of its core
operating results and business outlook. Adjusted EBITDA is not a
measure of financial performance or liquidity under GAAP and,
accordingly, should not be considered as an alternate to net income
or cash flow from operating activities as an indicator of operating
performance or liquidity. Because PowerFleet’s method for
calculating the non-GAAP measures may differ from other companies’
methods, the non-GAAP measures may not be comparable to similarly
titled measures reported by other companies. Reconciliation of all
non-GAAP measures included in this press release to the nearest
GAAP measures can be found in the financial tables included in this
press release.
Powerfleet,
Inc. and Subsidiaries |
Reconciliation of GAAP to Adjusted EBITDA Financial
Measures |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year
Ended |
December 31, |
December 31, |
|
2018 |
2019 |
|
2018 |
2019 |
|
|
|
|
|
|
Net loss attributable to common stockholders |
|
$ |
(2,809,000) |
|
$ |
(5,169,000) |
|
|
$ |
(5,812,000) |
|
$ |
(12,047,000) |
Minority
interest |
|
|
- |
|
|
(18,000) |
|
|
|
|
|
(18,000) |
Dividends on
preferred stock |
|
|
- |
|
|
1,084,000 |
|
|
|
|
|
1,084,000 |
Interest
(income) expense, net |
|
|
(22,000) |
|
|
877,000 |
|
|
|
(89,000) |
|
|
823,000 |
Other
(income) expense, net |
|
|
12,000 |
|
|
4,000 |
|
|
|
165,000 |
|
|
50,000 |
Income tax
(benefit) expense |
|
|
- |
|
|
(75,000) |
|
|
|
- |
|
|
(75,000) |
Depreciation
and amortization |
|
|
387,000 |
|
|
2,042,000 |
|
|
|
1,561,000 |
|
|
3,341,000 |
Stock-based
compensation |
|
|
505,000 |
|
|
801,000 |
|
|
|
2,163,000 |
|
|
2,533,000 |
Foreign
currency translation losses |
|
|
68,000 |
|
|
179,000 |
|
|
|
214,000 |
|
|
467,000 |
Litigation
expenses and settlement |
|
|
836,000 |
|
|
- |
|
|
|
968,000 |
|
|
- |
Acquisition-related fees |
|
|
428,000 |
|
|
462,000 |
|
|
|
807,000 |
|
|
5,135,000 |
Severance
expenses related to the acquistion |
|
|
- |
|
|
1,724,000 |
|
|
|
- |
|
|
1,724,000 |
Impact of
the fair value mark-up of acquired inventory |
|
|
- |
|
|
211,000 |
|
|
|
|
|
211,000 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
$ |
(595,000) |
|
$ |
2,122,000 |
|
|
$ |
(23,000) |
|
$ |
3,228,000 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted EBITDA per share - basic |
|
$ |
(0.03) |
|
$ |
0.07 |
|
|
$ |
- |
|
$ |
0.16 |
Non-GAAP adjusted EBITDA per share - diluted |
|
$ |
(0.03) |
|
$ |
0.06 |
|
|
$ |
- |
|
$ |
0.14 |
Weighted average common shares outstanding -
basic |
|
|
17,564,000 |
|
|
28,582,000 |
|
|
|
17,233,000 |
|
|
20,476,000 |
Weighted average common shares outstanding -
diluted |
|
|
17,564,000 |
|
|
35,511,000 |
|
|
|
17,233,000 |
|
|
22,305,000 |
|
|
|
|
|
|
|
|
|
|
About PowerFleetPowerFleet® Inc. (NASDAQ: PWFL;
TASE: PWFL) is a global leader and provider of subscription-based
wireless IoT and M2M solutions for securing, controlling, tracking,
and managing high-value enterprise assets such as industrial
trucks, tractor trailers, containers, cargo, and vehicles and truck
fleets. The company is headquartered in Woodcliff Lake, New Jersey,
with offices located around the globe. PowerFleet’s patented
technologies address the needs of organizations to monitor and
analyze their assets to increase efficiency and productivity,
reduce costs, and improve profitability. Our offerings are sold
under the global brands PowerFleet, Pointer, and Cellocator. For
more information, please visit www.powerfleet.com, the content
of which does not form a part of this press release.
Cautionary Note Regarding Forward-Looking
Statements This press release contains forward-looking
statements within the meaning of federal securities laws.
Forward-looking statements include statements with respect to
PowerFleet’s beliefs, plans, goals, objectives, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond PowerFleet’s control, and which
may cause its actual results, performance or achievements to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. All statements other than statements of historical fact
are statements that could be forward-looking statements. For
example, forward-looking statements include statements regarding:
prospects for additional customers; potential contract values;
market forecasts; projections of earnings, revenues, synergies,
accretion or other financial information; emerging new products;
and plans, strategies and objectives of management for future
operations, including growing revenue, controlling operating costs,
increasing production volumes, and expanding business with core
customers. The risks and uncertainties referred to above include,
but are not limited to, future economic and business conditions,
the ability to recognize the anticipated benefits of the
acquisition of Pointer, which may be affected by, among other
things, the loss of key customers or reduction in the purchase of
products by any such customers, the failure of the market for
PowerFleet’s products to continue to develop, the possibility that
PowerFleet may not be able to integrate successfully the business,
operations and employees of I.D. Systems and Pointer, the inability
to protect PowerFleet’s intellectual property, the inability to
manage growth, the effects of competition from a variety of local,
regional, national and other providers of wireless solutions, and
other risks detailed from time to time in PowerFleet’s, I.D.
Systems’ and Pointer’s filings with the Securities and Exchange
Commission, including I.D. Systems’ annual report on Form 10-K for
the year ended December 31, 2018, Pointer’s annual report on Form
20-F for the year ended December 31, 2018 and PowerFleet’s
registration statement on Form S-4 filed with the Securities and
Exchange Commission on May 24, 2019, as amended on July 1, 2019 and
July 23, 2019. These risks could cause actual results to differ
materially from those expressed in any forward-looking statements
made by, or on behalf of, PowerFleet. Unless otherwise required by
applicable law, PowerFleet assumes no obligation to update the
information contained in this press release, and expressly
disclaims any obligation to do so, whether a result of new
information, future events, or otherwise.
PowerFleet Company Contact Ned Mavrommatis,
CFO NMavrommatis@powerfleet.com (201) 996-9000
PowerFleet Investor Contact Matt Glover
Gateway Investor Relations PWFL@gatewayIR.com (949)
574-3860
Powerfleet,
Inc. and Subsidiaries |
Condensed
Consolidated Statements of Operations Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Year
Ended |
December 31, |
December 31, |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
Revenue: |
|
|
|
|
|
|
|
Products |
|
$ |
7,171,000 |
|
|
$ |
16,462,000 |
|
|
$ |
36,897,000 |
|
|
$ |
45,416,000 |
Services |
|
|
4,320,000 |
|
|
|
18,684,000 |
|
|
|
16,167,000 |
|
|
|
36,499,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,491,000 |
|
|
|
35,146,000 |
|
|
|
53,064,000 |
|
|
|
81,915,000 |
Cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
Cost of
products |
|
|
4,101,000 |
|
|
|
11,454,000 |
|
|
|
22,638,000 |
|
|
|
29,982,000 |
Cost of
services |
|
|
1,266,000 |
|
|
|
7,047,000 |
|
|
|
4,628,000 |
|
|
|
13,569,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5,367,000 |
|
|
|
18,501,000 |
|
|
|
27,266,000 |
|
|
|
43,551,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
6,124,000 |
|
|
|
16,645,000 |
|
|
|
25,798,000 |
|
|
|
38,364,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
6,246,000 |
|
|
|
12,682,000 |
|
|
|
22,243,000 |
|
|
|
29,807,000 |
Research and development expenses |
|
|
1,882,000 |
|
|
|
3,032,000 |
|
|
|
6,863,000 |
|
|
|
8,540,000 |
Depreciation and amortization expenses |
|
|
387,000 |
|
|
|
2,042,000 |
|
|
|
1,561,000 |
|
|
|
3,341,000 |
Severance expenses related to the acquistion |
|
|
- |
|
|
|
1,724,000 |
|
|
|
- |
|
|
|
1,724,000 |
Acquisition-related expenses |
|
|
428,000 |
|
|
|
462,000 |
|
|
|
867,000 |
|
|
|
5,135,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,943,000 |
|
|
|
19,942,000 |
|
|
|
31,534,000 |
|
|
|
48,547,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
|
(2,819,000) |
|
|
|
(3,297,000) |
|
|
|
(5,736,000) |
|
|
|
(10,183,000) |
Interest
income |
|
|
45,000 |
|
|
|
15,000 |
|
|
|
262,000 |
|
|
|
125,000 |
Interest
expense |
|
|
(23,000) |
|
|
|
(892,000) |
|
|
|
(173,000) |
|
|
|
(948,000) |
Other
expense |
|
|
(12,000) |
|
|
|
(4,000) |
|
|
|
(165,000) |
|
|
|
(50,000) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
before income taxes |
|
|
(2,809,000) |
|
|
|
(4,178,000) |
|
|
|
(5,812,000) |
|
|
|
(11,056,000) |
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit |
|
|
- |
|
|
|
75,000 |
|
|
|
- |
|
|
|
75,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
before minority interest |
|
|
(2,809,000) |
|
|
|
(4,103,000) |
|
|
|
(5,812,000) |
|
|
|
(10,981,000) |
Minority interest |
|
|
- |
|
|
|
18,000 |
|
|
|
- |
|
|
|
18,000 |
Preferred
stock dividends |
|
|
- |
|
|
|
(1,084,000) |
|
|
|
- |
|
|
|
(1,084,000) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to common stockholders |
|
$ |
(2,809,000) |
|
|
$ |
(5,169,000) |
|
|
$ |
(5,812,000) |
|
|
$ |
(12,047,000) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per
share - basic and diluted |
|
$ |
(0.16) |
|
|
$ |
(0.18) |
|
|
$ |
(0.34) |
|
|
$ |
(0.59) |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic and diluted |
|
|
17,564,000 |
|
|
|
28,582,000 |
|
|
|
17,233,000 |
|
|
|
20,476,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Powerfleet,
Inc. and Subsidiaries |
|
Condensed
Consolidated Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
|
2018 |
|
2019 |
|
ASSETS |
|
|
(Unaudited) |
|
Current
assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,159,000 |
|
|
$ |
16,395,000 |
|
Restricted cash |
|
|
307,000 |
|
|
|
308,000 |
|
Investments - short term |
|
|
394,000 |
|
|
|
- |
|
Accounts receivable, net |
|
|
9,247,000 |
|
|
|
27,016,000 |
|
Inventory, net |
|
|
4,649,000 |
|
|
|
16,381,000 |
|
Deferred costs - current |
|
|
3,660,000 |
|
|
|
3,720,000 |
|
Prepaid expenses and other current assets |
|
|
4,244,000 |
|
|
|
7,370,000 |
|
|
|
|
|
|
|
|
Total current assets |
|
|
32,660,000 |
|
|
|
71,190,000 |
|
|
|
|
|
|
|
|
Investments
- long term |
|
|
4,131,000 |
|
|
|
- |
|
Deferred
costs - less current portion |
|
|
5,409,000 |
|
|
|
4,810,000 |
|
Fixed
assets, net |
|
|
2,149,000 |
|
|
|
8,240,000 |
|
Goodwill |
|
|
7,318,000 |
|
|
|
89,068,000 |
|
Intangible
assets, net |
|
|
4,705,000 |
|
|
|
36,639,000 |
|
Right of use
asset |
|
|
- |
|
|
|
7,024,000 |
|
Severance
payable fund |
|
|
- |
|
|
|
3,530,000 |
|
Deferred tax
asset |
|
|
- |
|
|
|
2,475,000 |
|
Other
assets |
|
|
1,431,000 |
|
|
|
2,532,000 |
|
|
|
$ |
57,803,000 |
|
|
$ |
225,508,000 |
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Short-term bank debt and current maturities of long-term debt |
|
$ |
- |
|
|
$ |
3,475,000 |
|
Convertible note payable |
|
|
- |
|
|
|
5,000,000 |
|
Accounts payable and accrued expenses |
|
|
8,027,000 |
|
|
|
24,880,000 |
|
Deferred revenue - current |
|
|
7,902,000 |
|
|
|
7,687,000 |
|
Lease liability - current |
|
|
- |
|
|
|
868,000 |
|
Acquisition related contingent consideration and payable -
current |
|
|
946,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
16,875,000 |
|
|
|
41,910,000 |
|
|
|
|
|
|
|
|
Long-term
debt, less current maturities |
|
|
- |
|
|
|
26,413,000 |
|
Deferred
revenue - less current portion |
|
|
9,186,000 |
|
|
|
8,544,000 |
|
Lease
liability - less current portion |
|
|
- |
|
|
|
6,371,000 |
|
Accrued
severance payable |
|
|
- |
|
|
|
4,062,000 |
|
Deferred tax
liability |
|
|
- |
|
|
|
6,197,000 |
|
Other
long-term liabilities |
|
|
208,000 |
|
|
|
438,000 |
|
|
|
|
|
|
|
|
|
|
|
26,269,000 |
|
|
|
93,935,000 |
|
MEZZANINE
EQUITY |
|
|
|
|
|
|
Convertible
redeemable Preferred stock: Series A |
|
|
- |
|
|
|
47,393,000 |
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Powerfleet, Inc. stockholders’ equity |
|
|
31,534,000 |
|
|
|
84,190,000 |
|
Non-controlling interest |
|
|
- |
|
|
|
(10,000) |
|
Total equity |
|
|
31,534,000 |
|
|
|
84,180,000 |
|
Total liabilities and stockholders’ equity |
|
$ |
57,803,000 |
|
|
$ |
225,508,000 |
|
|
|
|
|
|
|
|
Powerfleet,
Inc. and Subsidiaries |
Condensed
Consolidated Statements of Cash Flow Data |
(Unaudited) |
|
|
|
|
|
|
Year Ended December 31, |
|
2018 |
2019 |
|
|
|
Cash
flows from operating activities (net of net assets
acquired): |
|
|
|
|
Net loss before minority interest |
|
$ |
(5,812,000) |
|
$ |
(10,981,000) |
Adjustments
to reconcile net loss to cash (used in) provided by operating
activities: |
|
|
|
|
Inventory reserve |
|
|
321,000 |
|
|
207,000 |
Stock based compensation expense |
|
|
2,163,000 |
|
|
3,794,000 |
Depreciation and amortization |
|
|
1,561,000 |
|
|
3,347,000 |
Operating lease right-of-use assets, net of operating lease
liabilities |
|
|
|
|
(141,000) |
Bad debt expense |
|
|
31,000 |
|
|
319,000 |
Deferred income taxes |
|
|
- |
|
|
(167,000) |
Change in contingent consideration |
|
|
169,000 |
|
|
54,000 |
Other non-cash items |
|
|
85,000 |
|
|
(40,000) |
Changes in: |
|
|
|
|
Operating assets and liabilities |
|
|
(220,000) |
|
|
(3,661,000) |
|
|
|
|
|
Net cash used in operating activities |
|
|
(1,702,000) |
|
|
(7,269,000) |
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
Acquisitions, net of cash assumed |
|
|
- |
|
|
(69,005,000) |
Proceeds
from sale of property and equipment |
|
|
- |
|
|
24,000 |
Capital
expenditures |
|
|
(251,000) |
|
|
(1,042,000) |
Purchases of
investments |
|
|
(3,235,000) |
|
|
(99,000) |
Proceeds
from the sale and maturities of investments |
|
|
10,082,000 |
|
|
4,638,000 |
|
|
|
|
|
Net cash (used in) provided by investing activities |
|
|
6,596,000 |
|
|
(65,484,000) |
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
Net proceeds
from preferred stock offering |
|
|
- |
|
|
46,309,000 |
Proceeds
from convertible note |
|
|
- |
|
|
5,000,000 |
Proceeds
from long-term debt |
|
|
- |
|
|
30,000,000 |
Repayments
of long-term debt |
|
|
- |
|
|
(2,010,000) |
Debt
issuance costs |
|
|
- |
|
|
(742,000) |
Short-term
bank debt, net |
|
|
- |
|
|
75,000 |
Net proceeds
from underwritten public offering |
|
|
- |
|
|
- |
Borrowings
under revolving credit facility |
|
|
- |
|
|
- |
Repayments
under revolving credit facility |
|
|
- |
|
|
- |
Proceeds
from exercise of stock options |
|
|
721,000 |
|
|
330,000 |
Shares
repurchased pursuant to vesting of restricted stock |
|
|
(652,000) |
|
|
(317,000) |
|
|
|
|
|
Net cash provided by financing activities |
|
|
69,000 |
|
|
78,645,000 |
|
|
|
|
|
Effect of
foreign exchange rate changes on cash and cash equivalents |
|
|
100,000 |
|
|
345,000 |
Net
increase in cash, cash equivalents and restricted
cash |
|
|
5,063,000 |
|
|
6,237,000 |
Cash, cash
equivalents and restricted cash - beginning of period |
|
|
5,403,000 |
|
|
10,466,000 |
|
|
|
|
|
Cash, cash equivalents and restricted cash - end of
period |
$ |
|
10,466,000 |
$ |
|
16,703,000 |
|
|
|
|
|
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