Cantaloupe, Inc. (Nasdaq: CTLP) (“Cantaloupe” or the “Company”),
a leading company in digital payments and software services, that
provides end-to-end technology solutions for the convenience retail
market, today reported results for the fiscal year 2022 third
quarter ended March 31, 2022.
“We are pleased to report another strong quarter, with 18%
growth in revenue, primarily driven by a 31% increase in
transaction fees, another record,” said Sean Feeney, chief
executive officer, Cantaloupe, Inc. "We showcased many of our
products at the recent National Automatic Merchandising Association
(NAMA) show, and saw tremendous interest and engagement from
customers and prospects. The industry is poised to continue to grow
due to strong secular tailwinds and innovation at the forefront of
operator’s minds. Cantaloupe is well positioned with our portfolio
of innovative products and customer support services to help
operators, engage their customers, optimize their businesses and
increase same store sales, now and in the future.”
Third Quarter Financial Highlights:
- Total Dollar Volumes of Transactions in the third quarter were
$562 million, an increase of 36% year over year
- Revenue in the third quarter of $50.3 million, an increase of
18% year over year
- Transaction fees of $27.5 million, an increase of 31% year over
year
- Subscription fees of $14.6 million, an increase of 7% year over
year
- Equipment sales of $8.2 million, an increase of 1% year over
year
- Gross margin improvement to 32.2% compared with 29.7% in the
prior year period
- Subscription and transaction fees margins of 40.0% compared to
41.0% in the prior year quarter
- Equipment sales margins of (8.0)% compared to (18.8)% in the
prior year quarter
- Operating income improvement to $0.9 million for the quarter
ended March 31, 2022, compared to operating loss of $2.0 million in
the prior year period
- U.S. GAAP Net income applicable to common shares improved to
$1.8 million, or $0.03 per share, compared to Net loss applicable
to common shares of $2.2 million, or a loss of $0.03 per share, in
the prior year period
- Adjusted EBITDA1 improved to $3.7 million compared to $2.2
million in the prior year period, an increase of 68%
- Active Customers totaled 22,818 at the end of the third quarter
of 2022 compared to 18,763 at the end of the third quarter of 2021,
an increase of 22%
- Active Devices totaled 1.12 million at the end of the third
quarter of 2022 compared to 1.08 million at the end of the third
quarter of 2021, an increase of 4%
Third Quarter Business Highlights:
- Launched an innovative bundled subscription model, the
Cantaloupe ONE Platform, which provides operators the flexibility
and predictability of a monthly, fixed subscription amount covering
the hardware and service fees
- Continued successful rollout of the ePort Engage Series, with
the release of the ePort Engage Combo to the market in March
2022
- Announced the general availability of the newly enhanced Yoke
Micro Market Platform upgrade that includes new features and
functionality for Yoke Pay, Yoke POS, and the Yoke Portal
- Expanded and restructured our JPMorgan Credit facility
- Successfully completed the HIVERY Enhance™ AI powered
merchandising product integration and expanded machine type
compatibility for Remote Price Change (RPC)
Fiscal Year 2022 Outlook:
For full fiscal year 2022, the Company expects the
following:
- Revenue to be between $200 million and $210 million,
representing a 20% to 26% increase year over year
- U.S. GAAP Net loss applicable to common shares to be between
$(1) million and $(3) million
- Adjusted EBITDA1 to be between $8.5 million and $10.5 million,
a 12% to 38% increase year over year
1 Adjusted earnings before income taxes, depreciation, and
amortization, stock-based compensation expense, and certain other
significant infrequent or unusual losses and gains that are not
indicative of our core operations (“Adjusted EBITDA”) is a non-GAAP
financial measure which is not required by or defined under GAAP.
We use this non-GAAP financial measure for financial and
operational decision-making purposes and as a means to evaluate
period-to-period comparisons. See Reconciliations of Non-GAAP
Measures for a reconciliation U.S. GAAP net income to Adjusted
EBITDA.
Webcast and Conference Call:
Cantaloupe will host a conference call and webcast at 5:00 p.m.
Eastern Time today. To participate in the conference call, please
dial + 1 (866) 393-1608, approximately 10 minutes prior to the
call. International callers should dial +1 (224) 357-2194. Please
reference conference ID # 5389692.
A live webcast of the conference call will be available at:
https://cantaloupeinc.gcs-web.com/events-and-presentations. Please
access the website 15 minutes prior to the start of the call to
download and install any necessary audio software.
A telephone replay of the conference call will be available from
8:00 p.m. Eastern Time on May 5, 2022, until 8:00 p.m. Eastern Time
on May 8, 2022 and may be accessed by calling +1 (855) 859-2056
(domestic dial-in) or +1 (404) 537-3406 (international dial-in) and
reference conference ID # 5389692.
An archived replay of the conference call will also be available
in the investor relations section of the Company's website.
About Cantaloupe, Inc.
Cantaloupe, Inc. is a software and payments company that
provides end-to-end technology solutions for the unattended retail
market. Cantaloupe is transforming the unattended retail community
by offering one integrated solution for payments processing,
logistics, and back-office management. The Company’s
enterprise-wide platform is designed to increase consumer
engagement and sales revenue through digital payments, digital
advertising and customer loyalty programs, while providing
retailers with control and visibility over their operations and
inventory. As a result, customers ranging from vending machine
companies, to operators of micro-markets, gas and car charging
stations, laundromats, metered parking terminals, kiosks,
amusements and more, can run their businesses more proactively,
predictably, and competitively. For more information, please visit
our website at www.cantaloupe.com.
Discussion of Non-GAAP Financial Measures:
This press release contains discussion of Adjusted EBITDA, a
non-GAAP financial measure which is not required or defined under
U.S. GAAP (Generally Accepted Accounting Principles). Generally, a
non-GAAP financial measure is a numerical measure of a company's
performance, financial position or cash flows that either excludes
or includes amounts that are not normally excluded or included in
the most directly comparable measure calculated and presented in
accordance with GAAP. Reconciliations between non-GAAP financial
measures and the most comparable GAAP financial measures are set
forth below.
We use Adjusted EBTIDA for financial and operational
decision-making purposes and as a means to evaluate
period-to-period comparisons. We believe that this non-GAAP
financial measure provides useful information about our operating
results, enhances the overall understanding of past financial
performance and future prospects and allows for greater
transparency with respect to metrics used by our management in its
financial and operational decision making. The presentation of this
financial measure is not intended to be considered in isolation or
as a substitute for the financial measures prepared and presented
in accordance with GAAP, including our net income or net loss or
net cash used in operating activities. Management recognizes that
non-GAAP financial measures have limitations in that they do not
reflect all of the items associated with our net income or net loss
as determined in accordance with GAAP, and are not a substitute for
or a measure of our profitability or net earnings. Adjusted EBITDA
is presented because we believe it is useful to investors as a
measure of comparative operating performance. Additionally, we
utilize Adjusted EBITDA as a metric in our executive officer and
management incentive compensation plans.
We define Adjusted EBITDA as U.S. GAAP Net loss before (i)
interest income, (ii) interest expense on debt and reserves, (iii)
income tax expense, (iv) depreciation, (v) amortization, (vi)
stock-based compensation expense, and (vii) certain other
significant infrequent or unusual losses and gains that are not
indicative of our core operations.
See reconciliation below for a description of itemized EBITDA
adjustments.
Forward-looking Statements:
All statements other than statements of historical fact included
in this release, including without limitation Cantaloupe’s future
prospects and performance, the business strategy and the plans and
objectives of Cantaloupe's management for future operations, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. When used in this
release, words such as “may,” “could,” “expect,” “intend,” “plan,”
“seek,” “anticipate,” “believe,” “estimate,” “guidance,” “predict,”
“potential,” “continue,” “likely,” “will,” “would” and variations
of these terms and similar expressions, or the negative of these
terms or similar expressions, as they relate to Cantaloupe or its
management, may identify forward-looking statements. Such
forward-looking statements are based on the reasonable beliefs of
Cantaloupe's management, as well as assumptions made by and
information currently available to Cantaloupe's management. Actual
results could differ materially from those contemplated by the
forward-looking statements as a result of certain factors,
including but not limited to the incurrence by Cantaloupe of any
unanticipated or unusual non-operational expenses which would
require us to divert our cash resources from achieving our business
plan; the uncertainties associated with COVID-19, including its
possible effects on Cantaloupe’s operations, financial condition
and the demand for Cantaloupe’s products and services; the ability
of Cantaloupe to predict or estimate its future quarterly or annual
revenue and expenses given the developing and unpredictable market
for its products; the ability of Cantaloupe to retain key customers
from whom a significant portion of its revenues is derived; the
ability of Cantaloupe to compete with its competitors to obtain
market share; the ability of Cantaloupe to make available and
successfully upgrade current customers to new standards and
protocols; whether Cantaloupe's existing or anticipated customers
purchase, rent or utilize ePort or Seed devices or our other
products or services in the future at levels currently anticipated
by Cantaloupe; the ability of Cantaloupe to execute on mergers,
acquisitions and/or strategic alliances, including the timing and
closing of acquisitions and our ability to integrate and operate
such acquisitions consistent with our forecasts; disruptions to our
systems, breaches in the security of transactions involving our
products or services, or failure of our processing systems;
geopolitical conflicts, such as the ongoing conflict between Russia
and Ukraine; or other risks discussed in Cantaloupe’s filings with
the U.S. Securities and Exchange Commission, including but not
limited to its Annual Report on Form 10-K for the year ended June
30, 2021 and Quarterly Report on Form 10-Q for the period ended
September 30, 2021 and December 31, 2021. Readers are cautioned not
to place undue reliance on these forward-looking statements. Any
forward-looking statement made by us in this release speaks only as
of the date of this release. Unless required by law, Cantaloupe
does not undertake to release publicly any revisions to these
forward-looking statements to reflect future events or
circumstances or to reflect the occurrence of unanticipated events.
If Cantaloupe updates one or more forward-looking statements, no
inference should be drawn that Cantaloupe will make additional
updates with respect to those or other forward-looking
statements.
-F--CTLP
Cantaloupe, Inc. Condensed
Consolidated Balance Sheets
($ in thousands, except share
data)
March 31, 2022
(Unaudited)
June 30, 2021
Assets
Current assets:
Cash and cash equivalents
$
75,086
$
88,136
Accounts receivable, net
29,802
27,470
Finance receivables, net
6,586
7,967
Inventory, net
13,650
5,292
Prepaid expenses and other current
assets
3,737
2,414
Total current assets
128,861
131,279
Non-current assets:
Finance receivables due after one year,
net
13,214
11,632
Property and equipment, net
11,284
5,570
Operating lease assets
2,661
3,049
Intangibles, net
18,777
19,992
Goodwill
66,656
63,945
Other assets
2,792
2,205
Total non-current assets
115,384
106,393
Total assets
$
244,245
$
237,672
Liabilities, convertible preferred
stock and shareholders’ equity
Current liabilities:
Accounts payable
$
37,552
$
36,775
Accrued expenses
26,603
26,460
Current obligations under long-term
debt
771
675
Deferred revenue
1,970
1,763
Total current liabilities
66,896
65,673
Long-term liabilities:
Deferred income taxes
195
179
Long-term debt, less current portion
14,010
13,644
Operating lease liabilities,
non-current
2,763
3,645
Total long-term liabilities
16,968
17,468
Total liabilities
83,864
83,141
Commitments and contingencies (Note
13)
Convertible preferred stock:
Series A convertible preferred stock,
900,000 shares authorized, 445,063 issued and outstanding, with
liquidation preferences of $22,113 and $21,447 at March 31, 2022
and June 30, 2021, respectively
3,138
3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000
shares authorized
—
—
Common stock, no par value, 640,000,000
shares authorized, 71,097,674 and 71,258,047 shares issued and
outstanding at March 31, 2022 and June 30, 2021, respectively
468,248
462,775
Accumulated deficit
(311,005
)
(311,382
)
Total shareholders’ equity
157,243
151,393
Total liabilities, convertible preferred
stock and shareholders’ equity
$
244,245
$
237,672
Cantaloupe, Inc. Condensed
Consolidated Statements of Operations (Unaudited)
Three months ended
Nine months ended
March 31,
March 31,
($ in thousands, except per share
data)
2022
2021
2022
2021
Revenues:
Subscription and transaction fees
$
42,143
$
34,686
$
123,956
$
101,008
Equipment sales
8,157
8,074
23,215
16,913
Total revenues
50,300
42,760
147,171
117,921
Costs of sales:
Cost of subscription and transaction
fees
25,291
20,463
76,234
60,415
Cost of equipment sales
8,809
9,593
23,871
18,262
Total costs of sales
34,100
30,056
100,105
78,677
Gross profit
16,200
12,704
47,066
39,244
Operating expenses:
Sales and marketing
1,937
1,754
6,021
4,873
Technology and product development
5,532
4,425
16,701
11,422
General and administrative
6,788
7,552
21,724
28,076
Depreciation and amortization
1,062
991
3,197
3,111
Total operating expenses
15,319
14,722
47,643
47,482
Operating income (loss)
881
(2,018
)
(577
)
(8,238
)
Other income (expense):
Interest income
445
302
1,363
978
Interest expense
852
(88
)
(100
)
(3,970
)
Other income (expense)
(7
)
—
(83
)
—
Total other income (expense), net
1,290
214
1,180
(2,992
)
Income (loss) before income taxes
2,171
(1,804
)
603
(11,230
)
Provision for income taxes
(35
)
(44
)
(226
)
(133
)
Net income (loss)
2,136
(1,848
)
377
(11,363
)
Preferred dividends
(334
)
(334
)
(668
)
(668
)
Net income (loss) applicable to common
shares
$
1,802
$
(2,182
)
$
(291
)
$
(12,031
)
Net earnings (loss) per common share
Basic and diluted
$
0.03
$
(0.03
)
$
0.00
$
(0.18
)
Weighted average number of common shares
outstanding used to compute net income (loss) per share applicable
to common shares
Basic
71,083,044
67,112,511
71,076,022
65,617,458
Diluted
71,486,718
67,112,511
71,076,022
65,617,458
Cantaloupe, Inc. Condensed
Consolidated Statements of Cash Flows (Unaudited)
Nine months ended
March 31,
($ in thousands)
2022
2021
Cash flows from operating
activities:
Net income (loss)
$
377
$
(11,363
)
Adjustments to reconcile net loss to net
cash (used in) provided by operating activities:
Stock based compensation
4,624
6,366
Amortization of debt issuance costs and
discounts
68
2,696
Provision for expected losses
2,519
1,286
Provision for inventory reserve
334
768
Depreciation and amortization included in
operating expenses
3,197
3,111
Depreciation included in costs of sales
for rental equipment
738
1,055
Property and equipment write-off
—
1,658
Other
402
1,192
Changes in operating assets and
liabilities:
Accounts receivable
(4,415
)
(6,031
)
Finance receivables
(627
)
(252
)
Inventory
(8,691
)
2,297
Prepaid expenses and other assets
(1,909
)
(1,343
)
Accounts payable and accrued expenses
(206
)
7,218
Operating lease liabilities
(547
)
(795
)
Deferred revenue
207
(28
)
Net cash (used in) provided by operating
activities
(3,929
)
7,835
Cash flows from investing
activities:
Cash paid for acquisition
(2,966
)
—
Purchase of property and equipment
(7,198
)
(1,281
)
Proceeds from sale of property and
equipment
—
12
Net cash used in investing activities
(10,164
)
(1,269
)
Cash flows from financing
activities:
Proceeds from debt facilities, net of
issuance costs
738
14,550
Repayment of debt facilities
(437
)
(15,554
)
Proceeds from private placement
—
55,008
Payment of equity issuance costs
—
(2,598
)
Proceeds from exercise of common stock
options
849
77
Payment of third-party debt issuance
costs
(107
)
—
Payment of Antara prepayment penalty and
commitment termination fee
—
(1,200
)
Net cash provided by financing
activities
1,043
50,283
Net (decrease) increase in cash and cash
equivalents
(13,050
)
56,849
Cash and cash equivalents at beginning of
year
88,136
31,713
Cash and cash equivalents at end of
period
$
75,086
$
88,562
Supplemental disclosures of cash flow
information:
Interest paid in cash
$
542
$
804
Cantaloupe, Inc.
Reconciliation of U.S. GAAP Net Loss to Adjusted EBITDA
(Unaudited)
Three months ended March
31,
($ in thousands)
2022
2021
U.S. GAAP net income (loss)
$
2,136
$
(1,848
)
Less: interest income
(445
)
(302
)
Plus: interest expense
(852
)
88
Plus: income tax provision
35
44
Plus: depreciation expense included in
costs of sales for rentals
220
2
Plus: depreciation and amortization
expense in operating expenses
1,062
991
EBITDA
2,156
(1,025
)
Plus: stock-based compensation (a)
1,495
3,216
Adjustments to EBITDA
1,495
3,216
Adjusted EBITDA
$
3,651
$
2,191
(a) As an adjustment to EBITDA, we have excluded stock-based
compensation, as it does not reflect our cash-based operations.
Nine months ended March
31,
($ in thousands)
2022
2021
U.S. GAAP net income (loss)
$
377
$
(11,363
)
Less: interest income
(1,363
)
(978
)
Plus: interest expense
100
3,970
Plus: income tax provision
226
133
Plus: depreciation expense included in
costs of sales for rentals
738
1,055
Plus: depreciation and amortization
expense in operating expenses
3,197
3,111
EBITDA
3,275
(4,072
)
Plus: stock-based compensation (a)
4,624
6,366
Plus: asset impairment charge (b)
—
333
Adjustments to EBITDA
4,624
6,699
Adjusted EBITDA
$
7,899
$
2,627
(a) As an adjustment to EBITDA, we have excluded stock-based
compensation, as it does not reflect our cash-based operations. (b)
As an adjustment to EBITDA, we have excluded the non-cash
impairment charges related to long-lived operating lease assets
because we believe that these do not represent charges that are
related to our core operations.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220505005817/en/
Media and Investor Relations Contacts for Cantaloupe,
Inc: Sarah Toomey RH Strategic Communications
stoomey@rhstrategic.com Investor Relations: ICR, Inc.
CantaloupeIR@icrinc.com
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