Powerfleet, Inc. (Nasdaq: PWFL), a global leader
of Internet of Things (IoT) software-as-a-service (SaaS) solutions
that optimize the performance of mobile assets and resources to
unify business operations, reported results for the first quarter
ended March 31, 2023.
FIRST QUARTER 2023 AND RECENT OPERATIONAL
MILESTONES
- Continued strong execution of SaaS
growth strategy demonstrated by an increase in high-margin services
revenue, which was up 9% on a GAAP basis and 17% on a constant
currency basis compared to Q1 2022, led by impressive 20% recurring
revenue growth in the U.S.
- Go-forward core business (excluding
Argentina, Brazil, and South Africa business units, and third-party
hardware only business) gross margin expanded to 53% and core
business services gross margin increased to 71%.
- Launched phase two of cost
optimization plan and expect to hit the $3 million annualized
operating expense reduction target.
- Secured several strategic Unity
sales deals in Q1, with H2 pipeline growing by 47%.
- Closed Movingdots acquisition,
bringing solution advantage in the safety, insurance and
sustainability strategic verticals, alongside increasing data
science and AI talent.
FIRST QUARTER 2023 FINANCIAL HIGHLIGHTS (COMPARED TO
FIRST QUARTER 2022)
- High-margin services revenue
increased 9% to $20.4 million. On a constant currency basis, the
year-over-year increase was 17%.
- Gross profit increased 15% to $16.6
million, with gross margin expanding from 43% to 51%.
- Product gross margin expanded from
17% to 27% with deal discipline and product re-engineering being
the key drivers.
- Loss from operations improved by
49%, or $1.9 million.
- Adjusted EBITDA, a non-GAAP metric,
improved by $2.0 million to $1.4 million, compared to $(0.6)
million.
- Ended the quarter with $25.1 million
in cash and cash equivalents and a working capital position of
$41.8 million.
MANAGEMENT COMMENTARY
“Our positive start to the new year reflects our unwavering
focus on driving profitable growth and SaaS recurring revenue
expansion despite the challenging macroeconomic pressures and
highly significant FX headwinds,” said Steve Towe, CEO at
Powerfleet. “On a constant currency basis, total revenue increased
by 4% year-over-year, with high-margin services revenue increasing
by an impressive 17% year-over-year.
“Our transformation strategy involves divesting low-margin,
low-growth, and sub-scale business units, allowing us to focus on
our high quality, profitable business segments. We're making good
progress in exploring strategic alternatives for our Argentina,
Brazil, and South Africa business units while also ruthlessly
rationalizing hardware-only revenue from the Cellocator sales
channel and diminishing other loss-making contracts. This exercise
naturally moderates our overall total revenue growth in the short
term but allows us to focus on value enhancing recurring revenue
expansion, which drives attractive gross margin expansion, improved
cash flow and EBITDA.
“This was demonstrated with the Q1 performance of our go-forward
core markets, which exclude non-core territories and third party
Cellocator sales. We are proud to report a total gross margin
performance of 53% with services gross margin of 71%. These strong
and exciting numbers, combined with the successful launch of new
software modules on our Unity platform, strengthened by the
capabilities of the Movingdots technology and talent, provide an
excellent platform to drive significant shareholder value in the
future.
“From a sales perspective, our new prospect engagement levels
are much improved, and we are aggressively ramping up our cross and
upsell activity to scale Powerfleet into a faster-growing SaaS
company. We are confident that the growing Unity customer wins and
increased pipeline proof points, through the shift to compelling
data led integrated solutions, are key indicators of compelling
growth opportunities for the business.
“As we integrate Movingdots, we expect incremental transitional
investments in Opex, particularly to accelerate research and
development. Although this will result in some fluctuation in our
short-term combined cost base, we expect revenue growth and EBITDA
expansion in Q2 from our core business, with an even stronger
performance in the second half of 2023. We remain on track
executing our transformation plan to deliver our strategic
foundational pillars - sustainable top-line growth, increased
profitability, and cash flow.”
FIRST QUARTER 2023 FINANCIAL RESULTS
Total revenue was $32.8 million, compared to $33.2 million in
the same year-ago period, with growth in services revenue
offsetting lower product sales. On a constant currency basis, total
revenue would have been $34.6 million, an increase of $1.4 million,
or 4%, compared to the prior year.
Services revenues totaled $20.4 million, up $1.7 million
year-over-year, accounting for 62% of total revenue. On a constant
currency basis, services revenue grew by 17%, reflecting the
company's successful execution of its SaaS growth strategy.
Products revenue declined by $2.0 million to $12.4 million, or
38% of total revenue, with deal discipline being the key
driver.
Gross profit margin expanded to 51% in Q1 2023 from 43% in the
prior year, driven by an improved mix of high-margin services
revenue versus product revenue, deal discipline for product sales,
and lower purchase price variances.
Operating expenses increased to $18.5 million from $18.1 million
in the same year-ago period with deal costs associated with the
acquisition of Movingdots being the key driver.
Net income attributable to common stockholders, inclusive of a
$7.2 million gain on bargain purchase for Movingdots, totaled $3.5
million, or $0.10 per basic share (based on 35.5 million weighted
average shares outstanding), and $0.08 per fully diluted share
(based on 43.7 million weighted average shares outstanding),
compared to net loss attributable to common stockholders of $4.1
million, or $(0.12) per basic and diluted share, in the same
year-ago period.
Adjusted EBITDA, a non-GAAP metric, improved significantly to
$1.4 million, benefiting from a $2.2 million expansion in gross
margin. See the section below titled “Non-GAAP Financial Measures”
for more information about adjusted EBITDA and its reconciliation
to GAAP net income (loss).
Powerfleet had $25.1 million in cash and cash equivalents and a
working capital position of $41.8 million at quarter-end,
benefiting from $8.7 million in net proceeds from the acquisition
of Movingdots.
INVESTOR CONFERENCE CALLPowerfleet
management will discuss these results and business outlook on a
conference call today (Tuesday, May 9, 2023) at 8:30 a.m. Eastern
time (5:30 a.m. Pacific time).
Powerfleet management will host the presentation, followed by a
question-and-answer session.Toll Free: 888-506-0062International:
973-528-0011 Participant Access Code: 351317
The conference call will be broadcast simultaneously and
available for replay here and in via 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 MEASURES To 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 non-GAAP net income (loss), non-GAAP net income (loss) per
basic and diluted share, adjusted EBITDA and total revenue and
services revenue excluding foreign exchange effect. 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. These non-GAAP measures are
not measures 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 |
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders |
$ |
(4,124,000 |
) |
|
$ |
3,494,000 |
|
|
Non-controlling interest |
|
1,000 |
|
|
|
(3,000 |
) |
|
Preferred stock dividend and accretion |
|
1,196,000 |
|
|
|
1,275,000 |
|
|
Interest (income) expense, net |
|
431,000 |
|
|
|
517,000 |
|
|
Other (income) expense, net |
|
1,000 |
|
|
|
(1,000 |
) |
|
Income tax (benefit) expense |
|
(703,000 |
) |
|
|
397,000 |
|
|
Depreciation and amortization |
|
2,089,000 |
|
|
|
2,233,000 |
|
|
Stock-based compensation |
|
457,000 |
|
|
|
832,000 |
|
|
Foreign currency translation |
|
(341,000 |
) |
|
|
(580,000 |
) |
|
Severance related expenses |
|
379,000 |
|
|
|
134,000 |
|
|
Gain on Bargain purchase - Movingdots |
|
- |
|
|
|
(7,234,000 |
) |
|
Movingdots Related Expenses |
|
- |
|
|
|
317,000 |
|
|
Adjusted EBITDA |
$ |
(614,000 |
) |
|
$ |
1,381,000 |
|
|
|
|
|
|
|
|
|
POWERFLEET, INC. AND SUBSIDIARIES |
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME (LOSS)
FINANCIAL MEASURES |
(Unaudited) |
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders |
$ |
(4,124,000 |
) |
|
$ |
3,494,000 |
|
|
Preferred stock dividend and accretion |
|
1,196,000 |
|
|
|
1,275,000 |
|
|
Other (income) expense, net |
|
1,000 |
|
|
|
(1,000 |
) |
|
Intangible assets amortization expense |
|
1,274,000 |
|
|
|
1,207,000 |
|
|
Stock-based compensation |
|
457,000 |
|
|
|
832,000 |
|
|
Foreign currency translation |
|
(341,000 |
) |
|
|
(580,000 |
) |
|
Non-cash portion of income tax expense |
|
(706,000 |
) |
|
|
392,000 |
|
|
Severance related expenses |
|
379,000 |
|
|
|
134,000 |
|
|
Gain on Bargain purchase - Movingdots |
|
0 |
|
|
|
(7,234,000 |
) |
|
Movingdots Related Expenses |
|
0 |
|
|
|
317,000 |
|
|
Non-GAAP net income (loss) |
$ |
(1,864,000 |
) |
|
$ |
(164,000 |
) |
|
|
|
|
|
|
|
|
Non-GAAP net income (loss) - basic |
$ |
(0.05 |
) |
|
$ |
(0.00 |
) |
|
Non-GAAP net income (loss) - diluted |
$ |
(0.05 |
) |
|
$ |
(0.00 |
) |
|
Weighted average common shares outstanding - basic |
|
35,332,000 |
|
|
|
35,548,000 |
|
|
Weighted average common shares outstanding - diluted |
|
35,332,000 |
|
|
|
43,702,000 |
|
|
ABOUT POWERFLEETPowerfleet (Nasdaq: PWFL; TASE:
PWFL) is a global leader of internet of things (IoT)
software-as-a-service (SaaS) solutions that optimize the
performance of mobile assets and resources to unify business
operations. Our data science insights and advanced modular software
solutions help drive digital transformation through our customers’
and partners’ ecosystems to help save lives, time, and money. We
help connect companies, enabling customers and their customers to
realize more effective strategies and results. Powerfleet’s tenured
and talented team is at the heart of our approach to partnership
and tangible success. The company is headquartered in Woodcliff
Lake, New Jersey, with our Pointer Innovation Center (PIC) in
Israel and field offices around the globe. For more information,
please visit www.powerfleet.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTSThis 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 Movingdots, 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
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 filings with the Securities and Exchange Commission,
including Powerfleet’s most recent annual report on Form 10-K.
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 Investor Contact Matt GloverGateway
Group, Inc. PWFL@gatewayir.com (949) 574-3860
Powerfleet Media ContactHeather
Smithhsmith@powerfleet.com(605) 203-0605
POWERFLEET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
DATA |
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
|
2023 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Revenue: |
|
|
|
|
|
|
Products |
$ |
14,392,000 |
|
|
$ |
12,404,000 |
|
|
Services |
|
18,769,000 |
|
|
|
20,435,000 |
|
|
|
|
|
|
|
|
|
Total Revenues |
|
33,161,000 |
|
|
|
32,839,000 |
|
|
Cost of revenue: |
|
|
|
|
|
|
Cost of products |
|
11,978,000 |
|
|
|
9,002,000 |
|
|
Cost of services |
|
6,784,000 |
|
|
|
7,219,000 |
|
|
|
|
|
|
|
|
|
Total cost of revenues: |
|
18,762,000 |
|
|
|
16,221,000 |
|
|
|
|
|
|
|
|
|
Gross Profit |
|
14,399,000 |
|
|
|
16,618,000 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
Selling, general and administrative expenses |
|
14,912,000 |
|
|
|
16,787,000 |
|
|
Research and development expenses |
|
3,229,000 |
|
|
|
1,723,000 |
|
|
|
|
|
|
|
|
|
Total Operating Expenses |
|
18,141,000 |
|
|
|
18,510,000 |
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(3,742,000 |
) |
|
|
(1,892,000 |
) |
|
Interest income |
|
13,000 |
|
|
|
24,000 |
|
|
Interest expense |
|
(444,000 |
) |
|
|
(541,000 |
) |
|
Gain on Bargain purchase - Movingdots |
|
- |
|
|
|
7,234,000 |
|
|
Foreign currency translation of debt |
|
544,000 |
|
|
|
404,000 |
|
|
Other (expense) income, net |
|
(1,000 |
) |
|
|
(66,000 |
) |
|
|
|
|
|
|
|
|
Net (loss) / income before income taxes |
|
(3,630,000 |
) |
|
|
5,163,000 |
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) |
|
703,000 |
|
|
|
(397,000 |
) |
|
|
|
|
|
|
|
|
Net (loss) / income before non-controlling interest |
|
(2,927,000 |
) |
|
|
4,766,000 |
|
|
Non-controlling interest |
|
(1,000 |
) |
|
|
3,000 |
|
|
|
|
|
|
|
|
|
Net (loss) / income |
|
(2,928,000 |
) |
|
|
4,769,000 |
|
|
Accretion of preferred stock |
|
(168,000 |
) |
|
|
(168,000 |
) |
|
Preferred stock dividend |
|
(1,028,000 |
) |
|
|
(1,107,000 |
) |
|
|
|
|
|
|
|
|
Net (loss) / income attributable to common stockholders |
$ |
(4,124,000 |
) |
|
$ |
3,494,000 |
|
|
|
|
|
|
|
|
|
Net (loss) / income per share - basic |
$ |
(0.12 |
) |
|
$ |
0.10 |
|
|
|
|
|
|
|
|
|
Net (loss) / income per share - diluted |
|
(0.12 |
) |
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic |
|
35,332,000 |
|
|
|
35,548,000 |
|
|
Weighted average common shares outstanding - diluted |
|
35,332,000 |
|
|
|
43,702,000 |
|
|
POWERFLEET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEET DATA |
|
|
|
As of |
|
|
|
|
|
December 31, 2022 |
|
March 31, 2023 |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
$ |
17,680,000 |
|
|
$ |
24,780,000 |
|
|
Restricted cash |
|
|
|
|
309,000 |
|
|
|
309,000 |
|
|
Accounts receivable, net |
|
|
|
|
32,493,000 |
|
|
|
31,442,000 |
|
|
Inventory, net |
|
|
|
|
22,272,000 |
|
|
|
22,649,000 |
|
|
Deferred costs - current |
|
|
|
|
762,000 |
|
|
|
523,000 |
|
|
Prepaid expenses and other current assets |
|
|
|
|
7,709,000 |
|
|
|
7,959,000 |
|
|
Total current assets |
|
|
|
|
81,225,000 |
|
|
|
87,662,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed assets, net |
|
|
|
|
9,249,000 |
|
|
|
9,953,000 |
|
|
Goodwill |
|
|
|
|
83,487,000 |
|
|
|
83,487,000 |
|
|
Intangible assets, net |
|
|
|
|
22,908,000 |
|
|
|
22,328,000 |
|
|
Right of use asset |
|
|
|
|
7,820,000 |
|
|
|
7,332,000 |
|
|
Severance payable fund |
|
|
|
|
3,760,000 |
|
|
|
3,684,000 |
|
|
Deferred tax asset |
|
|
|
|
3,225,000 |
|
|
|
2,496,000 |
|
|
Other assets |
|
|
|
|
5,761,000 |
|
|
|
5,984,000 |
|
|
Total assets |
|
|
|
$ |
217,435,000 |
|
|
$ |
222,926,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Short-term bank debt and current maturities of long-term debt |
|
|
|
$ |
10,312,000 |
|
|
$ |
9,359,000 |
|
|
Accounts payable and accrued expenses |
|
|
|
|
26,598,000 |
|
|
|
27,682,000 |
|
|
Deferred revenue - current |
|
|
|
|
6,363,000 |
|
|
|
6,327,000 |
|
|
Lease liability - current |
|
|
|
|
2,441,000 |
|
|
|
2,481,000 |
|
|
Total current liabilities |
|
|
|
|
45,714,000 |
|
|
|
45,849,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current maturities |
|
|
|
|
11,403,000 |
|
|
|
10,638,000 |
|
|
Deferred revenue - less current portion |
|
|
|
|
4,390,000 |
|
|
|
4,378,000 |
|
|
Lease liability - less current portion |
|
|
|
|
5,628,000 |
|
|
|
5,065,000 |
|
|
Accrued severance payable |
|
|
|
|
4,365,000 |
|
|
|
4,396,000 |
|
|
Deferred tax liability |
|
|
|
|
4,919,000 |
|
|
|
4,593,000 |
|
|
Other long-term liabilities |
|
|
|
|
636,000 |
|
|
|
623,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
|
|
77,055,000 |
|
|
|
75,542,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEZZANINE EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Convertible redeemable Preferred stock: Series A |
|
|
|
|
57,565,000 |
|
|
|
58,840,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
- |
|
|
|
- |
|
|
Total Powerfleet, Inc. stockholders� equity |
|
|
|
|
82,737,000 |
|
|
|
88,478,000 |
|
|
Non-controlling interest |
|
|
|
|
78,000 |
|
|
|
66,000 |
|
|
Total equity |
|
|
|
|
82,815,000 |
|
|
|
88,544,000 |
|
|
Total liabilities and stockholders� equity |
|
|
|
$ |
217,435,000 |
|
|
$ |
222,926,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
POWERFLEET, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
DATA |
|
|
|
|
Three Months Ended March 31, |
|
|
|
|
|
2022 |
|
|
2023 |
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Cash flows from operating activities (net of net assets
acquired): |
|
|
|
|
|
|
|
|
|
Net (loss) / income |
|
|
|
$ |
(2,928,000 |
) |
|
$ |
4,769,000 |
|
|
Adjustments to reconcile net loss to cash (used in) provided by
operating activities: |
|
|
|
|
|
|
|
|
|
Non-controlling interest |
|
|
|
|
(1,000 |
) |
|
|
(3,000 |
) |
|
Gain on bargain purchase |
|
|
|
|
- |
|
|
|
(7,234,000 |
) |
|
Inventory reserve |
|
|
|
|
53,000 |
|
|
|
2,000 |
|
|
Stock based compensation expense |
|
|
|
|
457,000 |
|
|
|
831,000 |
|
|
Depreciation and amortization |
|
|
|
|
2,089,000 |
|
|
|
2,233,000 |
|
|
Right-of-use assets, non-cash lease expense |
|
|
|
|
658,000 |
|
|
|
658,000 |
|
|
Bad debt expense |
|
|
|
|
252,000 |
|
|
|
229,000 |
|
|
Other non-cash items |
|
|
|
|
556,000 |
|
|
|
46,000 |
|
|
Deferred taxes |
|
|
|
|
(703,000 |
) |
|
|
377,000 |
|
|
Changes in: |
|
|
|
|
|
|
|
|
|
Operating assets and liabilities |
|
|
|
|
(2,558,000 |
) |
|
|
(153,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
|
|
|
(2,125,000 |
) |
|
|
1,755,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
Acquisitions, net of cash assumed |
|
|
|
|
- |
|
|
|
8,722,000 |
|
|
Purchase of investment |
|
|
|
|
- |
|
|
|
(100,000 |
) |
|
Capitalized software development costs |
|
|
|
|
- |
|
|
|
(680,000 |
) |
|
Capital expenditures |
|
|
|
|
(610,000 |
) |
|
|
(1,100,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) investing activities |
|
|
|
|
(610,000 |
) |
|
|
6,842,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
Repayment of long-term debt |
|
|
|
|
(1,497,000 |
) |
|
|
(1,329,000 |
) |
|
Short-term bank debt, net |
|
|
|
|
- |
|
|
|
(1,000 |
) |
|
Purchase of treasury stock upon vesting of restricted stock |
|
|
|
|
(181,000 |
) |
|
|
(44,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities |
|
|
|
|
(1,678,000 |
) |
|
|
(1,374,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash and cash
equivalents |
|
|
|
|
(1,480,000 |
) |
|
|
(124,000 |
) |
|
Net increase in cash, cash equivalents and restricted
cash |
|
|
|
|
(5,893,000 |
) |
|
|
7,099,000 |
|
|
Cash, cash equivalents and restricted cash - beginning of
period |
|
|
|
|
26,760,000 |
|
|
|
17,990,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash - end of
period |
|
|
|
$ |
20,867,000 |
|
|
$ |
25,089,000 |
|
|
|
|
|
|
|
|
|
|
|
|
POWERFLEET, INC. CORE BUSINESS |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
DATA |
|
Three Months Ended |
|
|
March 31, 2023 |
|
|
Total Powerfleet |
|
BASA / 3rd party Cellocator |
|
Core Business |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Revenue: |
|
|
|
|
|
|
|
|
|
Products |
$ |
12,404,000 |
|
|
$ |
966,000 |
|
|
$ |
11,438,000 |
|
|
Services |
|
20,435,000 |
|
|
|
3,109,000 |
|
|
|
17,326,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Revenues |
|
32,839,000 |
|
|
|
4,075,000 |
|
|
|
28,764,000 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
Cost of products |
|
9,002,000 |
|
|
|
696,000 |
|
|
|
8,306,000 |
|
|
Cost of services |
|
7,219,000 |
|
|
|
2,124,000 |
|
|
|
5,095,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Total cost of revenues: |
|
16,221,000 |
|
|
|
2,820,000 |
|
|
|
13,401,000 |
|
|
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
16,618,000 |
|
|
|
1,255,000 |
|
|
|
15,363,000 |
|
|
Product Gross Margin % |
|
27.4 |
% |
|
|
28.0 |
% |
|
|
27.4 |
% |
|
Service Gross Margin % |
|
64.7 |
% |
|
|
31.7 |
% |
|
|
70.6 |
% |
|
Total Gross Margin % |
|
50.6 |
% |
|
|
30.8 |
% |
|
|
53.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
CONSTANT CURRENCYConstant currency information
has been presented to illustrate the impact of changes in currency
rates on the company’s results. The constant currency information
has been determined by adjusting the current financial reporting
period results to the prior period average exchange rates,
determined as the average of the monthly exchange rates applicable
to the period. The measurement has been performed for each of the
company’s currencies. The constant currency growth percentage has
been calculated by utilizing the constant currency results compared
to the prior period results.
The constant currency information represents non-GAAP
information. The company believes this provides a useful basis to
measure the performance of its business as it removes distortion
from the effects of foreign currency movements during the period;
however, this information should be considered as supplemental in
nature and should not be considered in isolation or as a substitute
for the related financial information prepared in accordance with
GAAP. See the section above titled “Non-GAAP Financial Measures”
for more information.
Due to a portion of the company’s customers who are invoiced in
non-U.S. Dollar denominated currencies, the company also calculates
subscription revenue growth rate on a constant currency basis,
thereby removing the effect of currency fluctuation on results of
operations.
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Mar 31, |
|
Year Over Year Change |
|
($ in Thousands) |
|
2022 |
|
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
|
|
|
Service Revenue: |
|
|
|
|
|
|
|
Service Revenue as reported |
$ |
18,769 |
|
$ |
20,435 |
|
$ |
1,666 |
|
8.9 |
% |
|
Conversion impact of U.S. Dollar |
|
|
$ |
1,580 |
|
$ |
1,580 |
|
|
|
Service revenue on a constant currency basis |
$ |
18,769 |
|
$ |
22,015 |
|
$ |
3,245 |
|
17.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Mar 31, |
|
Year Over Year Change |
|
($ in Thousands) |
|
2022 |
|
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
|
|
|
Product Revenue: |
|
|
|
|
|
|
|
Product Revenue as reported |
$ |
14,392 |
|
$ |
12,404 |
|
($ |
1,988 |
) |
(13.8 |
%) |
|
Conversion impact of U.S. Dollar |
|
|
$ |
175 |
|
$ |
175 |
|
|
|
Product Revenue revenue on a constant currency
basis |
$ |
14,392 |
|
$ |
12,579 |
|
($ |
1,813 |
) |
-12.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended Mar 31, |
|
Year Over Year Change |
|
($ in Thousands) |
|
2022 |
|
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
|
|
|
Total Revenue: |
|
|
|
|
|
|
|
Total Revenue as reported |
$ |
33,160 |
|
$ |
32,839 |
|
($ |
321 |
) |
(1.0 |
%) |
|
Conversion impact of U.S. Dollar |
$ |
0 |
|
$ |
1,755 |
|
$ |
1,755 |
|
|
|
Total revenue on a constant currency basis |
$ |
33,160 |
|
$ |
34,594 |
|
$ |
1,434 |
|
4.3 |
% |
|
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