Revenue increased 22.7% to a record
$19.7 million
GAAP net Income and diluted EPS of
$0.9 million and $0.11
Non-GAAP net income and non-GAAP diluted EPS
increased 116.3% and 200.0%
Adjusted EBITDA increased 38.7% to
$1.1 million
DELRAY
BEACH, Fla., May 16, 2022
/PRNewswire/ -- DecisionPoint™ Systems, Inc. (NYSE American: DPSI),
a mobility-first enterprise services and solutions company today
announced first quarter 2022 financial results.
"Our mobility-first strategy is working as we had our best
revenue quarter ever," said Steve
Smith, chief executive officer. "We saw broad-based strength
across our verticals and continued to take advantage of our strong
relationships to procure products from our OEM and distribution
partners, enabling us to build up inventory for deals that will
ship over the next few quarters.
"We also made two strategic acquisitions during the quarter –
Advanced Mobile Group and Boston Technologies. These acquisitions
strengthen our positions in the Transportation and Direct Store
Delivery verticals and the integration is progressing quickly, and
we expect to realize cost synergies over the next few quarters.
Looking to sales, we are already seeing evidence that we are
capturing synergies with 10 to 20 new cross-selling opportunities
in various stages of the sales pipeline."
First Quarter Highlights (2022 versus 2021)
- Revenue increased 22.7% to $19.7
million;
- Gross Profit increased 21.8% to $4.7
million;
- GAAP Net Income and diluted EPS decreased to $0.9 million and $0.11, respectively;
- Non-GAAP Net Income and non-GAAP diluted EPS increased 116.3%
and 200.0% to $0.5 million and
$0.06, respectively;
- Adjusted EBITDA increased 38.7% to $1.1
million;
- Backlog as of March 31, 2022 was
$21 million.
First Quarter Select
Financial Metrics: 2022 versus 2021
|
(in $M except
for EPS)
|
1Q22
|
1Q21
|
Change
|
Total
Revenue
|
$19.7
|
$16.1
|
22.7%
|
Hardware and
Software
|
$14.3
|
$10.5
|
36.6%
|
Services
Revenue
|
$4.1
|
$4.1
|
-0.1%
|
Consumables
Revenue
|
$1.3
|
$1.5
|
-12.3%
|
Gross
Profit
|
$4.7
|
$3.8
|
21.8%
|
Operating
Income
|
$0.2
|
$0.3
|
-27.7%
|
GAAP Net
Income
|
$0.9
|
$1.3
|
-35.9%
|
GAAP Diluted
Earnings Per Share
|
$0.11
|
$0.17
|
-35.3%
|
Non-GAAP Net
Income
|
$0.5
|
$0.2
|
116.3%
|
Non-GAAP Diluted
EPS
|
$0.06
|
$0.02
|
200.0%
|
Adjusted
EBITDA
|
$1.1
|
$0.8
|
38.7%
|
*numbers may not add
due to rounding
|
|
|
|
Balance Sheet and Liquidity as of March 31, 2022
Cash and cash equivalents
were $9.3 million, compared to
$2.6 million on December 31, 2021. Long-term debt was
$0.1 million, roughly flat to
December 31, 2021.
Net cash provided by operating activities was $11.7 million compared to $1.3 million in the first quarter of 2021.
2022 Commentary
"Looking to the remainder of the year,
we have several ongoing initiatives that will drive our
mobility-first strategy. We continue to build out our services
offerings, especially managed services, that will bring higher
margin growth opportunities. We will also continue to integrate our
recent acquisitions and maximize synergies, including continued
cross and upselling. As a result, we are providing full-year
2022 revenue guidance of $79 to
$82 million, which represents 22 to
26% growth versus 2021. We also expect approximately $19 million to come from services. Within this
range, we expect Adjusted EBITDA to be between $3.5 and $3.9
million," concluded Smith.
Conference Call and Webcast
Information
DecisionPoint's earnings release will be filed
on Form 8-K and posted on the DecisionPoint investor relations
website (https://www.decisionpt.com/investing-in-decisionpoint/) at
approximately 7:30 a.m. Eastern on
May 16, 2022. Management will host an
earnings conference call and webcast beginning at 10:00 a.m. Eastern Time. Management's
presentation of the results, outlook and strategy will be followed
by Q&A with investors.
Live Call Information:
Date: May 16, 2022
Time: 10:00 a.m. Eastern Time
Dial-in: Toll Free: 1-877-407-3982
Dial-in: Toll/International: 1-201-493-6780
Webcast:
https://event.choruscall.com/mediaframe/webcast.html?webcastid=rxHnoEzM
Replay Information:
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13730026
Replay Start: Monday May 16, 2022, 1:00
PM ET
Replay Expiry: Monday May 23, 2022, 11:59 PM 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
This press release contains
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995 that are based on management's
beliefs and assumptions and on information currently available to
management. These statements involve risks, uncertainties and other
factors that may cause actual results, levels of activity,
performance, or achievements to be materially different from the
information expressed or implied by forward-looking statements.
Forward-looking statements in this press release may include
statements about our plans to obtain funding for our current and
proposed operations and potential acquisition and expansion
efforts; the ultimate impact of the COVID-19 pandemic, or any other
health epidemic, on our business, our clientele or the global
economy as a whole; debt obligations of the Company; our general
history of operating losses; our ability to compete with companies
producing products and services; the scope of protection we are
able to establish and maintain for intellectual property rights
covering our products and technology; the accuracy of our estimates
regarding expenses, future revenue, capital requirements and needs
for additional financing; our ability to develop and maintain our
corporate infrastructure, including our internal controls; our
ability to develop innovative new products; and our financial
performance. In addition, statements that "we believe" and similar
statements reflect our beliefs and opinions on the relevant
subject. These statements are based upon information available to
us as of the date of this press release, and while we believe such
information forms a reasonable basis for such statements, such
information may be limited or incomplete, and our statements should
not be read to indicate that we have conducted an exhaustive
inquiry into, or review of, all potentially available relevant
information. These statements are inherently uncertain and
investors are cautioned not to unduly rely upon these statements.
We qualify all of our forward-looking statements by these
cautionary statements. Forward-looking statements speak only as of
the date they are made, and we do not undertake to update these
statements other than as required by law. You are advised, however,
to review any further disclosures we make on related subjects in
our periodic filings with the Securities and Exchange
Commission.
Investor Relations Contact:
Brian Siegel, IRC, MBA
Senior Managing Director, Hayden
IR
(346) 396-8696
Brian@haydenir.com
DecisionPoint
Systems, Inc.
|
Condensed
Consolidated Balance Sheets
|
(in thousands,
except par value)
|
(Unaudited)
|
|
|
|
March 31,
2022
|
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash
|
|
$
|
9,349
|
|
|
$
|
2,587
|
|
Accounts receivable,
net
|
|
|
15,806
|
|
|
|
12,302
|
|
Inventory,
net
|
|
|
1,050
|
|
|
|
2,111
|
|
Deferred
costs
|
|
|
1,918
|
|
|
|
1,998
|
|
Prepaid expenses and
other current assets
|
|
|
561
|
|
|
|
336
|
|
Total current assets
|
|
|
28,684
|
|
|
|
19,334
|
|
Operating lease
assets
|
|
|
3,077
|
|
|
|
329
|
|
Property and equipment,
net
|
|
|
1,190
|
|
|
|
834
|
|
Deferred costs, net of
current portion
|
|
|
1,698
|
|
|
|
1,492
|
|
Deferred tax
assets
|
|
|
2,638
|
|
|
|
1,999
|
|
Intangible assets,
net
|
|
|
6,650
|
|
|
|
3,564
|
|
Goodwill
|
|
|
9,122
|
|
|
|
8,128
|
|
Other assets
|
|
|
68
|
|
|
|
50
|
|
Total assets
|
|
$
|
53,127
|
|
|
$
|
35,730
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
9,424
|
|
|
$
|
10,273
|
|
Accrued expenses and
other current liabilities
|
|
|
4,740
|
|
|
|
3,220
|
|
Deferred
revenue
|
|
|
18,563
|
|
|
|
4,599
|
|
Current portion of
long-term debt
|
|
|
3
|
|
|
|
3
|
|
Current portion of
operating lease liabilities
|
|
|
418
|
|
|
|
257
|
|
Total current liabilities
|
|
|
33,148
|
|
|
|
18,352
|
|
Deferred revenue, net
of current portion
|
|
|
2,825
|
|
|
|
2,510
|
|
Long-term
debt
|
|
|
145
|
|
|
|
146
|
|
Noncurrent portion of
operating lease liabilities
|
|
|
2,854
|
|
|
|
83
|
|
Other
liabilities
|
|
|
221
|
|
|
|
381
|
|
Total liabilities
|
|
|
39,193
|
|
|
|
21,472
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
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; 7,221 and 7,007 shares
issued and outstanding, respectively
|
|
|
7
|
|
|
|
7
|
|
Additional paid-in
capital
|
|
|
38,038
|
|
|
|
39,216
|
|
Accumulated
deficit
|
|
|
(24,111)
|
|
|
|
(24,965)
|
|
Total stockholders'
equity
|
|
|
13,934
|
|
|
|
14,258
|
|
Total liabilities and
stockholders' equity
|
|
$
|
53,127
|
|
|
$
|
35,730
|
|
DecisionPoint Systems, Inc.
|
Condensed
Consolidated Statements of Income and Comprehensive
Income
|
(in thousands,
except per share data)
|
(Unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2022
|
|
|
2021
|
|
Net sales:
|
|
|
|
|
|
|
|
|
Product
|
|
$
|
15,580
|
|
|
$
|
11,925
|
|
Service
|
|
|
4,141
|
|
|
|
4,147
|
|
Net sales
|
|
|
19,721
|
|
|
|
16,072
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Product
|
|
|
12,422
|
|
|
|
9,451
|
|
Service
|
|
|
2,625
|
|
|
|
2,783
|
|
Cost of
sales
|
|
|
15,047
|
|
|
|
12,234
|
|
Gross profit
|
|
|
4,674
|
|
|
|
3,838
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Sales and marketing
expense
|
|
|
2,175
|
|
|
|
1,889
|
|
General and
administrative expenses
|
|
|
2,261
|
|
|
|
1,620
|
|
Total operating
expenses
|
|
|
4,436
|
|
|
|
3,509
|
|
Operating
income
|
|
|
238
|
|
|
|
329
|
|
Interest
expense
|
|
|
(25)
|
|
|
|
(29)
|
|
Gain on extinguishment
of debt
|
|
|
-
|
|
|
|
1,211
|
|
Other, net
|
|
|
4
|
|
|
|
-
|
|
Income before income
taxes
|
|
|
217
|
|
|
|
1,511
|
|
Income tax benefit
(expense)
|
|
|
637
|
|
|
|
(178)
|
|
Net income and
comprehensive income attributable to common shareholders
|
|
$
|
854
|
|
|
$
|
1,333
|
|
Earnings per share
attributable to common shareholders:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.12
|
|
|
$
|
0.19
|
|
Diluted
|
|
$
|
0.11
|
|
|
$
|
0.17
|
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
7,104
|
|
|
|
6,945
|
|
Diluted
|
|
|
7,664
|
|
|
|
7,894
|
|
DecisionPoint Systems, Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
March 31,
|
|
|
|
2022
|
|
|
2021
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net income
|
|
$
|
854
|
|
|
$
|
1,333
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
452
|
|
|
|
360
|
|
Gain on extinguishment of debt
|
|
|
-
|
|
|
|
(1,211)
|
|
Amortization of deferred financing costs
|
|
|
-
|
|
|
|
17
|
|
Share-based compensation expense
|
|
|
225
|
|
|
|
33
|
|
Deferred income taxes, net
|
|
|
(639)
|
|
|
|
43
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
(2,102)
|
|
|
|
5,847
|
|
Inventory,
net
|
|
|
1,190
|
|
|
|
(121)
|
|
Deferred
costs
|
|
|
(3)
|
|
|
|
(178)
|
|
Prepaid expenses and
other current assets
|
|
|
(225)
|
|
|
|
(326)
|
|
Other assets,
net
|
|
|
(18)
|
|
|
|
(5)
|
|
Accounts
payable
|
|
|
(1,407)
|
|
|
|
(4,696)
|
|
Accrued expenses and
other current liabilities
|
|
|
(901)
|
|
|
|
(109)
|
|
Due to related
parties
|
|
|
-
|
|
|
|
18
|
|
Operating lease
liabilities
|
|
|
184
|
|
|
|
(2)
|
|
Deferred
revenue
|
|
|
14,059
|
|
|
|
255
|
|
Net cash provided
by operating activities
|
|
|
11,669
|
|
|
|
1,258
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Cash paid for
acquisitions, net of cash acquired
|
|
|
(4,460)
|
|
|
|
(170)
|
|
Purchases of property
and equipment
|
|
|
(447)
|
|
|
|
(73)
|
|
Net cash used in investing
activities
|
|
|
(4,907)
|
|
|
|
(243)
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Line of credit,
net
|
|
|
—
|
|
|
|
(1,206)
|
|
Proceeds from exercise
of stock options
|
|
|
—
|
|
|
|
2
|
|
Net cash used in
financing activities
|
|
|
—
|
|
|
|
(1,204)
|
|
Change in
cash
|
|
|
6,762
|
|
|
|
(189)
|
|
Cash, beginning of
period
|
|
|
2,587
|
|
|
|
2,005
|
|
Cash, end of
period
|
|
$
|
9,349
|
|
|
$
|
1,816
|
|
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:
DecisionPoint Systems, Inc.
|
Supplemental
Financial Information
|
Reconciliation of
Select GAAP Financial Measures to Non-GAAP Financial
Measures
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
Three Months
Ended
March
31,
|
|
|
|
2022
|
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Net income,
as reported
|
|
$
|
854
|
|
|
$
|
1,333
|
|
Share-based
compensation, net of taxes
|
|
|
166
|
|
|
|
26
|
|
Business
acquisition costs, net of taxes
|
|
|
130
|
|
|
|
50
|
|
NYSE American uplisting
costs, net of taxes
|
|
|
-
|
|
|
|
11
|
|
Gain on
extinguishment of debt
|
|
|
-
|
|
|
|
(1,211)
|
|
Income tax
benefit for exercise of stock options
|
|
|
(698)
|
|
|
|
-
|
|
Non-GAAP net
income
|
|
$
|
452
|
|
|
$
|
209
|
|
Depreciation and
amortization
|
|
|
452
|
|
|
|
360
|
|
Income
taxes
|
|
|
167
|
|
|
|
192
|
|
Interest
expense
|
|
|
25
|
|
|
|
29
|
|
Adjusted
EBITDA
|
|
$
|
1,096
|
|
|
$
|
790
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS,
as reported
|
|
$
|
0.11
|
|
|
$
|
0.17
|
|
Share-based
compensation, net of taxes
|
|
|
0.02
|
|
|
|
0.00
|
|
Business
acquisition costs, net of taxes
|
|
|
0.02
|
|
|
|
0.01
|
|
Gain on
extinguishment of debt
|
|
|
-
|
|
|
|
(0.16)
|
|
Income tax
benefit for exercise of stock options
|
|
|
(0.09)
|
|
|
|
-
|
|
Non-GAAP
Diluted EPS
|
|
$
|
0.06
|
|
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
|
|
7,664
|
|
|
|
7,894
|
|
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SOURCE DecisionPoint Systems, Inc.