Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries DecisionPoint Systems Announces Third Quarter 2023 Results By: DecisionPoint™ Systems, Inc. via Business Wire November 14, 2023 at 07:00 AM EST Record third quarter revenue of $27.1 million (+5%) Record gross margin of 27.6% (+520 bps) and software/services mix of 45% Provides 2023 guidance of 14-16% revenue growth and 13-17% adjusted EBITDA growth DecisionPoint™ Systems, Inc. (NYSE American: DPSI), the leading mobility-first enterprise services and solutions company, today announced third quarter 2023 financial results ended September 30, 2023. Steve Smith, chief executive officer of DecisionPoint Systems, commented: “Our services-oriented strategy is fueling our growth model and clearly differentiates us from our peers in the industry. We continued to show year-over-year growth in the third quarter, driven by a record mix of software and services at 45% of revenue. This differentiation has allowed us to buck industry trends and drive profitable growth. “We also continued to see synergies from our acquisition of Macro Integration Services (MIS) and are already creating growth opportunities due to the cross-selling activities across the Company. For example, we’re conducting broader, CIO-level meetings around our combined mobile and services portfolio at several MIS customers. “Finally, strong cash flow from operations enabled us to pay down another $1.5 million in debt related to the Macro Integration Services acquisition.” Third Quarter Highlights (2023 versus 2022) Revenue increased 5.4% to $27.1 million; Gross Profit increased 30.3% to $7.5 million; Gross Margin increased 520 basis points to 27.6%; GAAP Operating Income was flat at $1.5 million; GAAP Net Income and diluted EPS decreased 1.0% and 11.2% to $1.0 million and $0.13, respectively; Non-GAAP Net Income1 and non-GAAP diluted EPS decreased 8.4% and 16.6% to $1.1 million and $0.13, respectively; Adjusted EBITDA1 increased 1.3% to $2.3 million; Paid down $1.5 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 Third Quarter Select Financial Metrics: 2023 versus 2022 (in $M except for EPS) 3Q23 3Q22 Change YTD 2023 YTD 2022 Change Total Revenue $ 27.1 $ 25.7 5.4 % $ 85.1 $ 73.0 16.5 % Hardware Solutions Revenue $ 14.0 $ 19.2 -27.1 % $ 52.8 $ 54.1 -2.4 % Software and Services Revenue $ 11.7 $ 4.7 147.6 % $ 27.7 $ 13.7 102.5 % Consumables Revenue $ 1.4 $ 1.8 -21.5 % $ 4.5 $ 5.2 -13.5 % Gross Profit $ 7.5 $ 5.8 30.3 % $ 21.3 $ 16.8 26.8 % Operating Income $ 1.5 $ 1.5 -0.7 % $ 4.1 $ 3.8 6.6 % GAAP Net Income $ 1.1 $ 1.1 -1.0 % $ 2.8 $ 2.7 3.7 % GAAP Diluted Earnings Per Share $ 0.13 $ 0.15 -11.2 % $ 0.36 $ 0.36 0.0 % Non-GAAP Net Income $ 1.1 $ 1.2 -8.4 % $ 3.5 $ 3.3 4.6 % Non-GAAP Diluted EPS $ 0.13 $ 0.16 -16.6 % $ 0.45 $ 0.43 4.8 % Adjusted EBITDA $ 2.3 $ 2.3 1.5 % $ 6.8 $ 6.1 11.5 % *numbers may not add due to rounding Balance Sheet and Liquidity as of September 30, 2023 Cash and cash equivalents were $3.6 million, compared to $7.6 million on December 31, 2022. Short-term and long-term debt were $1.0 million and $5.7 million, respectively. 2023 Commentary and Guidance (ending 12/31/23) 2023 Guidance 2022 Actual 2023 vs 2022 Revenue $111.0 million - $113.0 million $97.1 million +14% - 16% Adjusted EBITDA $8.9 - $9.2 million $7.8 Million +13% - 17% “For the full year 2023, we now expect revenue in the range of $111.0 to $113.0 million with $8.9 to $9.2 million in adjusted EBITDA. Note this increase in adjusted EBITDA is coming despite investing $1 million in expanding our managed services capabilities in 2023, which we expect to begin generating positive returns in 2024. Additionally, to drive further growth, especially in our managed services offerings, we recently shifted resources internally while further increasing our investment in business development by adding several high-level, quota-carrying key account managers who are well-regarded within the industry. We expect these additions to contribute nominally to revenue in our fourth quarter and, more significantly, in 2024,” concluded Smith. Trended Financial Information* (in $M except for EPS) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 FY 2022 YTD FY2023 Total Revenue $ 19.7 $ 27.5 $ 25.7 $ 24.5 $ 27.0 $ 30.9 $ 27.1 $ 97.4 $ 85.1 Hardware Solutions Revenue $ 14.3 $ 20.6 $ 19.2 $ 17.7 $ 20.5 $ 18.3 $ 14.0 $ 71.8 $ 52.8 Software and Services Revenue $ 4.1 $ 4.8 $ 4.7 $ 4.7 $ 4.9 $ 11.2 $ 11.7 $ 18.3 $ 27.7 Consumables Revenue $ 1.3 $ 2.1 $ 1.8 $ 2.1 $ 1.6 $ 1.5 $ 1.4 $ 7.3 $ 4.5 Gross Profit $ 4.7 $ 6.3 $ 5.8 $ 6.3 $ 6.1 $ 7.7 $ 7.5 $ 23.1 $ 21.3 Operating (loss) Income $ 0.2 $ 2.0 $ 1.5 $ 0.7 $ 1.2 $ 1.3 $ 1.5 $ 4.4 $ 4.1 Net (loss) Income $ 0.9 $ 0.7 $ 1.1 $ 0.4 $ 0.9 $ 0.8 $ 1.1 $ 3.1 $ 2.8 Diluted EPS $ 0.11 $ 0.09 $ 0.15 $ 0.07 $ 0.11 $ 0.11 $ 0.13 $ 0.41 $ 0.35 Non-GAAP Net Income $ 1.3 $ 0.8 $ 1.2 $ 0.7 $ 1.3 $ 1.0 $ 1.1 $ 4.1 $ 3.5 Non-GAAP Diluted EPS $ 0.16 $ 0.11 $ 0.16 $ 0.11 $ 0.16 $ 0.13 $ 0.13 $ 0.54 $ 0.45 Adjusted EBITDA $ 1.1 $ 2.7 $ 2.3 $ 1.8 $ 2.1 $ 2.5 $ 2.3 $ 7.8 $ 6.9 nm = not measurable/meaningful *numbers may not add due to rounding Earnings Conference Call and Webcast Information Date: November 14, 2023 Time: 1:00 p.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: 13742540 Replay Start: Tuesday, November 14, 2023, 2:00 p.m. ET Replay Expiry: Tuesday, November 21, 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) September 30, December 31, 2023 2022 ASSETS Current assets: Cash $ 3,645 $ 7,642 Accounts receivable, net 18,939 17,085 Inventory, net 3,002 4,417 Deferred costs 3,443 2,729 Prepaid expenses and other current assets 259 399 Total current assets 29,288 32,272 Operating lease assets 3,586 2,681 Property and equipment, net 2,980 1,817 Deferred costs, net of current portion 3,365 2,868 Deferred tax assets - 848 Intangible assets, net 8,404 4,531 Goodwill 24,555 10,499 Other assets 140 41 Total assets $ 72,318 $ 55,557 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,848 $ 19,755 Accrued expenses and other current liabilities 5,826 5,357 Deferred revenue 6,886 6,021 Current portion of earnout consideration 5,520 - Current portion of long-term debt 1,003 3 Current portion of operating lease liabilities 870 529 Total current liabilities 32,953 31,665 Deferred revenue, net of current portion 4,845 4,331 Long-term debt 5,693 143 Noncurrent portion of operating lease liabilities 3,315 2,706 Long-term portion of earnout consideration 4,316 - Deferred tax liabilities 1,451 - Other liabilities 6 130 Total liabilities 52,579 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; 7,654 and 7,416 shares issued and outstanding, respectively 8 7 Additional paid-in capital 38,831 38,429 Accumulated deficit (19,100 ) (21,854 ) Total stockholders’ equity 19,739 16,582 Total liabilities and stockholders’ equity $ 72,318 $ 55,557 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net sales: Product $ 15,436 $ 20,988 $ 57,348 $ 59,259 Service 11,704 4,725 27,743 13,681 Net sales 27,140 25,713 85,091 72,940 Cost of sales: Product 12,340 16,923 46,205 47,213 Service 7,317 3,036 17,604 8,971 Cost of sales 19,657 19,959 63,809 56,184 Gross profit 7,483 5,754 21,282 16,756 Operating expenses: Sales and marketing expense 2,129 2,291 6,988 6,850 General and administrative expenses 3,838 1,936 10,242 6,155 Total operating expenses 5,967 4,227 17,230 13,005 Operating income 1,516 1,527 4,052 3,751 Interest expense (162 ) (7 ) (385 ) (42 ) Other income (expense) 15 - 23 (17 ) Income before income taxes 1,369 1,520 3,690 3,692 Income tax expense (316 ) (409 ) (935 ) (1,008 ) Net income and comprehensive income attributable to common stockholders $ 1,053 $ 1,111 $ 2,755 $ 2,684 Earnings per share attributable to stockholders: Basic $ 0.14 $ 0.15 $ 0.37 $ 0.37 Diluted $ 0.13 $ 0.15 $ 0.36 $ 0.36 Weighted average common shares outstanding Basic 7,640 7,290 7,514 7,210 Diluted 7,812 7,593 7,659 7,510 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities Net income $ 2,755 $ 2,684 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,028 1,750 Amortization of inventory valuation adjustment 120 - Loss on fixed asset disposal - 22 Share-based compensation expense 261 325 Provision for inventory obsolescense 7 - Deferred income taxes, net (958 ) 460 Provision for doubtful accounts 77 32 Changes in operating assets and liabilities: Accounts receivable 8,193 (811 ) Inventory, net 3,918 825 Deferred costs (1,211 ) (1,155 ) Prepaid expenses and other current assets 196 186 Accounts payable (9,716 ) 7,213 Accrued expenses and other current liabilities (3,054 ) (139 ) Operating lease liabilities (68 ) 265 Deferred revenue 235 2,279 Net cash provided by operating activities 2,783 13,936 Cash flows from investing activities Purchases of property and equipment (546 ) (1,299 ) Cash paid for acquisitions, net of cash acquired (12,917 ) (4,525 ) Net cash used in investing activities (13,463 ) (5,824 ) Cash flows from financing activities Repayment of term debt (253 ) (3 ) Line of credit, net 1,803 - Proceeds from term loan 5,000 - Cash paid for taxes on the cashless exercises of stock options (67 ) (1,403 ) Proceeds from exercise of warrants 187 - Proceeds from exercise of stock options 13 154 Net cash provided by (used in) financing activities 6,683 (1,252 ) Change in cash (3,997 ) 6,860 Cash, beginning of period 7,642 2,587 Cash, end of period $ 3,645 $ 9,447 Supplemental disclosures of cash flow information Cash paid for interest $ 333 $ 38 Cash paid for income taxes $ 1,060 $ 497 Supplemental disclosure of non-cash activities Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 3,211 Cashless exercise of warrants $ 12 $ 3,508 Cashless exercise of stock options $ 25 $ - Trended Financial Information 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income, as reported $ 1,053 $ 1,111 $ 2,755 $ 2,684 Share-based compensation 45 50 261 325 Business acquisition costs 26 65 436 242 NYSE American uplisting costs - 1 - 1 Non-GAAP net income $ 1,124 $ 1,227 $ 3,452 $ 3,252 Depreciation and amortization 731 622 2,028 1,750 Income taxes 316 409 935 1,008 Interest expense 162 7 385 42 Adjusted EBITDA $ 2,333 $ 2,265 $ 6,800 $ 6,052 Diluted EPS, as reported $ 0.13 $ 0.15 $ 0.36 $ 0.36 Adjusted Diluted EPS $ 0.14 $ 0.16 $ 0.45 $ 0.43 Weighted average diluted common shares outstanding 7,812 7,593 7,659 7,510 View source version on businesswire.com: https://www.businesswire.com/news/home/20231114683449/en/Contacts Investor Relations Contact: Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR (346) 396-8696 Brian@haydenir.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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DecisionPoint Systems Announces Third Quarter 2023 Results By: DecisionPoint™ Systems, Inc. via Business Wire November 14, 2023 at 07:00 AM EST Record third quarter revenue of $27.1 million (+5%) Record gross margin of 27.6% (+520 bps) and software/services mix of 45% Provides 2023 guidance of 14-16% revenue growth and 13-17% adjusted EBITDA growth DecisionPoint™ Systems, Inc. (NYSE American: DPSI), the leading mobility-first enterprise services and solutions company, today announced third quarter 2023 financial results ended September 30, 2023. Steve Smith, chief executive officer of DecisionPoint Systems, commented: “Our services-oriented strategy is fueling our growth model and clearly differentiates us from our peers in the industry. We continued to show year-over-year growth in the third quarter, driven by a record mix of software and services at 45% of revenue. This differentiation has allowed us to buck industry trends and drive profitable growth. “We also continued to see synergies from our acquisition of Macro Integration Services (MIS) and are already creating growth opportunities due to the cross-selling activities across the Company. For example, we’re conducting broader, CIO-level meetings around our combined mobile and services portfolio at several MIS customers. “Finally, strong cash flow from operations enabled us to pay down another $1.5 million in debt related to the Macro Integration Services acquisition.” Third Quarter Highlights (2023 versus 2022) Revenue increased 5.4% to $27.1 million; Gross Profit increased 30.3% to $7.5 million; Gross Margin increased 520 basis points to 27.6%; GAAP Operating Income was flat at $1.5 million; GAAP Net Income and diluted EPS decreased 1.0% and 11.2% to $1.0 million and $0.13, respectively; Non-GAAP Net Income1 and non-GAAP diluted EPS decreased 8.4% and 16.6% to $1.1 million and $0.13, respectively; Adjusted EBITDA1 increased 1.3% to $2.3 million; Paid down $1.5 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 Third Quarter Select Financial Metrics: 2023 versus 2022 (in $M except for EPS) 3Q23 3Q22 Change YTD 2023 YTD 2022 Change Total Revenue $ 27.1 $ 25.7 5.4 % $ 85.1 $ 73.0 16.5 % Hardware Solutions Revenue $ 14.0 $ 19.2 -27.1 % $ 52.8 $ 54.1 -2.4 % Software and Services Revenue $ 11.7 $ 4.7 147.6 % $ 27.7 $ 13.7 102.5 % Consumables Revenue $ 1.4 $ 1.8 -21.5 % $ 4.5 $ 5.2 -13.5 % Gross Profit $ 7.5 $ 5.8 30.3 % $ 21.3 $ 16.8 26.8 % Operating Income $ 1.5 $ 1.5 -0.7 % $ 4.1 $ 3.8 6.6 % GAAP Net Income $ 1.1 $ 1.1 -1.0 % $ 2.8 $ 2.7 3.7 % GAAP Diluted Earnings Per Share $ 0.13 $ 0.15 -11.2 % $ 0.36 $ 0.36 0.0 % Non-GAAP Net Income $ 1.1 $ 1.2 -8.4 % $ 3.5 $ 3.3 4.6 % Non-GAAP Diluted EPS $ 0.13 $ 0.16 -16.6 % $ 0.45 $ 0.43 4.8 % Adjusted EBITDA $ 2.3 $ 2.3 1.5 % $ 6.8 $ 6.1 11.5 % *numbers may not add due to rounding Balance Sheet and Liquidity as of September 30, 2023 Cash and cash equivalents were $3.6 million, compared to $7.6 million on December 31, 2022. Short-term and long-term debt were $1.0 million and $5.7 million, respectively. 2023 Commentary and Guidance (ending 12/31/23) 2023 Guidance 2022 Actual 2023 vs 2022 Revenue $111.0 million - $113.0 million $97.1 million +14% - 16% Adjusted EBITDA $8.9 - $9.2 million $7.8 Million +13% - 17% “For the full year 2023, we now expect revenue in the range of $111.0 to $113.0 million with $8.9 to $9.2 million in adjusted EBITDA. Note this increase in adjusted EBITDA is coming despite investing $1 million in expanding our managed services capabilities in 2023, which we expect to begin generating positive returns in 2024. Additionally, to drive further growth, especially in our managed services offerings, we recently shifted resources internally while further increasing our investment in business development by adding several high-level, quota-carrying key account managers who are well-regarded within the industry. We expect these additions to contribute nominally to revenue in our fourth quarter and, more significantly, in 2024,” concluded Smith. Trended Financial Information* (in $M except for EPS) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 FY 2022 YTD FY2023 Total Revenue $ 19.7 $ 27.5 $ 25.7 $ 24.5 $ 27.0 $ 30.9 $ 27.1 $ 97.4 $ 85.1 Hardware Solutions Revenue $ 14.3 $ 20.6 $ 19.2 $ 17.7 $ 20.5 $ 18.3 $ 14.0 $ 71.8 $ 52.8 Software and Services Revenue $ 4.1 $ 4.8 $ 4.7 $ 4.7 $ 4.9 $ 11.2 $ 11.7 $ 18.3 $ 27.7 Consumables Revenue $ 1.3 $ 2.1 $ 1.8 $ 2.1 $ 1.6 $ 1.5 $ 1.4 $ 7.3 $ 4.5 Gross Profit $ 4.7 $ 6.3 $ 5.8 $ 6.3 $ 6.1 $ 7.7 $ 7.5 $ 23.1 $ 21.3 Operating (loss) Income $ 0.2 $ 2.0 $ 1.5 $ 0.7 $ 1.2 $ 1.3 $ 1.5 $ 4.4 $ 4.1 Net (loss) Income $ 0.9 $ 0.7 $ 1.1 $ 0.4 $ 0.9 $ 0.8 $ 1.1 $ 3.1 $ 2.8 Diluted EPS $ 0.11 $ 0.09 $ 0.15 $ 0.07 $ 0.11 $ 0.11 $ 0.13 $ 0.41 $ 0.35 Non-GAAP Net Income $ 1.3 $ 0.8 $ 1.2 $ 0.7 $ 1.3 $ 1.0 $ 1.1 $ 4.1 $ 3.5 Non-GAAP Diluted EPS $ 0.16 $ 0.11 $ 0.16 $ 0.11 $ 0.16 $ 0.13 $ 0.13 $ 0.54 $ 0.45 Adjusted EBITDA $ 1.1 $ 2.7 $ 2.3 $ 1.8 $ 2.1 $ 2.5 $ 2.3 $ 7.8 $ 6.9 nm = not measurable/meaningful *numbers may not add due to rounding Earnings Conference Call and Webcast Information Date: November 14, 2023 Time: 1:00 p.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: 13742540 Replay Start: Tuesday, November 14, 2023, 2:00 p.m. ET Replay Expiry: Tuesday, November 21, 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) September 30, December 31, 2023 2022 ASSETS Current assets: Cash $ 3,645 $ 7,642 Accounts receivable, net 18,939 17,085 Inventory, net 3,002 4,417 Deferred costs 3,443 2,729 Prepaid expenses and other current assets 259 399 Total current assets 29,288 32,272 Operating lease assets 3,586 2,681 Property and equipment, net 2,980 1,817 Deferred costs, net of current portion 3,365 2,868 Deferred tax assets - 848 Intangible assets, net 8,404 4,531 Goodwill 24,555 10,499 Other assets 140 41 Total assets $ 72,318 $ 55,557 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,848 $ 19,755 Accrued expenses and other current liabilities 5,826 5,357 Deferred revenue 6,886 6,021 Current portion of earnout consideration 5,520 - Current portion of long-term debt 1,003 3 Current portion of operating lease liabilities 870 529 Total current liabilities 32,953 31,665 Deferred revenue, net of current portion 4,845 4,331 Long-term debt 5,693 143 Noncurrent portion of operating lease liabilities 3,315 2,706 Long-term portion of earnout consideration 4,316 - Deferred tax liabilities 1,451 - Other liabilities 6 130 Total liabilities 52,579 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; 7,654 and 7,416 shares issued and outstanding, respectively 8 7 Additional paid-in capital 38,831 38,429 Accumulated deficit (19,100 ) (21,854 ) Total stockholders’ equity 19,739 16,582 Total liabilities and stockholders’ equity $ 72,318 $ 55,557 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net sales: Product $ 15,436 $ 20,988 $ 57,348 $ 59,259 Service 11,704 4,725 27,743 13,681 Net sales 27,140 25,713 85,091 72,940 Cost of sales: Product 12,340 16,923 46,205 47,213 Service 7,317 3,036 17,604 8,971 Cost of sales 19,657 19,959 63,809 56,184 Gross profit 7,483 5,754 21,282 16,756 Operating expenses: Sales and marketing expense 2,129 2,291 6,988 6,850 General and administrative expenses 3,838 1,936 10,242 6,155 Total operating expenses 5,967 4,227 17,230 13,005 Operating income 1,516 1,527 4,052 3,751 Interest expense (162 ) (7 ) (385 ) (42 ) Other income (expense) 15 - 23 (17 ) Income before income taxes 1,369 1,520 3,690 3,692 Income tax expense (316 ) (409 ) (935 ) (1,008 ) Net income and comprehensive income attributable to common stockholders $ 1,053 $ 1,111 $ 2,755 $ 2,684 Earnings per share attributable to stockholders: Basic $ 0.14 $ 0.15 $ 0.37 $ 0.37 Diluted $ 0.13 $ 0.15 $ 0.36 $ 0.36 Weighted average common shares outstanding Basic 7,640 7,290 7,514 7,210 Diluted 7,812 7,593 7,659 7,510 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities Net income $ 2,755 $ 2,684 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,028 1,750 Amortization of inventory valuation adjustment 120 - Loss on fixed asset disposal - 22 Share-based compensation expense 261 325 Provision for inventory obsolescense 7 - Deferred income taxes, net (958 ) 460 Provision for doubtful accounts 77 32 Changes in operating assets and liabilities: Accounts receivable 8,193 (811 ) Inventory, net 3,918 825 Deferred costs (1,211 ) (1,155 ) Prepaid expenses and other current assets 196 186 Accounts payable (9,716 ) 7,213 Accrued expenses and other current liabilities (3,054 ) (139 ) Operating lease liabilities (68 ) 265 Deferred revenue 235 2,279 Net cash provided by operating activities 2,783 13,936 Cash flows from investing activities Purchases of property and equipment (546 ) (1,299 ) Cash paid for acquisitions, net of cash acquired (12,917 ) (4,525 ) Net cash used in investing activities (13,463 ) (5,824 ) Cash flows from financing activities Repayment of term debt (253 ) (3 ) Line of credit, net 1,803 - Proceeds from term loan 5,000 - Cash paid for taxes on the cashless exercises of stock options (67 ) (1,403 ) Proceeds from exercise of warrants 187 - Proceeds from exercise of stock options 13 154 Net cash provided by (used in) financing activities 6,683 (1,252 ) Change in cash (3,997 ) 6,860 Cash, beginning of period 7,642 2,587 Cash, end of period $ 3,645 $ 9,447 Supplemental disclosures of cash flow information Cash paid for interest $ 333 $ 38 Cash paid for income taxes $ 1,060 $ 497 Supplemental disclosure of non-cash activities Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 3,211 Cashless exercise of warrants $ 12 $ 3,508 Cashless exercise of stock options $ 25 $ - Trended Financial Information 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income, as reported $ 1,053 $ 1,111 $ 2,755 $ 2,684 Share-based compensation 45 50 261 325 Business acquisition costs 26 65 436 242 NYSE American uplisting costs - 1 - 1 Non-GAAP net income $ 1,124 $ 1,227 $ 3,452 $ 3,252 Depreciation and amortization 731 622 2,028 1,750 Income taxes 316 409 935 1,008 Interest expense 162 7 385 42 Adjusted EBITDA $ 2,333 $ 2,265 $ 6,800 $ 6,052 Diluted EPS, as reported $ 0.13 $ 0.15 $ 0.36 $ 0.36 Adjusted Diluted EPS $ 0.14 $ 0.16 $ 0.45 $ 0.43 Weighted average diluted common shares outstanding 7,812 7,593 7,659 7,510 View source version on businesswire.com: https://www.businesswire.com/news/home/20231114683449/en/Contacts Investor Relations Contact: Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR (346) 396-8696 Brian@haydenir.com
Record third quarter revenue of $27.1 million (+5%) Record gross margin of 27.6% (+520 bps) and software/services mix of 45% Provides 2023 guidance of 14-16% revenue growth and 13-17% adjusted EBITDA growth
DecisionPoint™ Systems, Inc. (NYSE American: DPSI), the leading mobility-first enterprise services and solutions company, today announced third quarter 2023 financial results ended September 30, 2023. Steve Smith, chief executive officer of DecisionPoint Systems, commented: “Our services-oriented strategy is fueling our growth model and clearly differentiates us from our peers in the industry. We continued to show year-over-year growth in the third quarter, driven by a record mix of software and services at 45% of revenue. This differentiation has allowed us to buck industry trends and drive profitable growth. “We also continued to see synergies from our acquisition of Macro Integration Services (MIS) and are already creating growth opportunities due to the cross-selling activities across the Company. For example, we’re conducting broader, CIO-level meetings around our combined mobile and services portfolio at several MIS customers. “Finally, strong cash flow from operations enabled us to pay down another $1.5 million in debt related to the Macro Integration Services acquisition.” Third Quarter Highlights (2023 versus 2022) Revenue increased 5.4% to $27.1 million; Gross Profit increased 30.3% to $7.5 million; Gross Margin increased 520 basis points to 27.6%; GAAP Operating Income was flat at $1.5 million; GAAP Net Income and diluted EPS decreased 1.0% and 11.2% to $1.0 million and $0.13, respectively; Non-GAAP Net Income1 and non-GAAP diluted EPS decreased 8.4% and 16.6% to $1.1 million and $0.13, respectively; Adjusted EBITDA1 increased 1.3% to $2.3 million; Paid down $1.5 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 Third Quarter Select Financial Metrics: 2023 versus 2022 (in $M except for EPS) 3Q23 3Q22 Change YTD 2023 YTD 2022 Change Total Revenue $ 27.1 $ 25.7 5.4 % $ 85.1 $ 73.0 16.5 % Hardware Solutions Revenue $ 14.0 $ 19.2 -27.1 % $ 52.8 $ 54.1 -2.4 % Software and Services Revenue $ 11.7 $ 4.7 147.6 % $ 27.7 $ 13.7 102.5 % Consumables Revenue $ 1.4 $ 1.8 -21.5 % $ 4.5 $ 5.2 -13.5 % Gross Profit $ 7.5 $ 5.8 30.3 % $ 21.3 $ 16.8 26.8 % Operating Income $ 1.5 $ 1.5 -0.7 % $ 4.1 $ 3.8 6.6 % GAAP Net Income $ 1.1 $ 1.1 -1.0 % $ 2.8 $ 2.7 3.7 % GAAP Diluted Earnings Per Share $ 0.13 $ 0.15 -11.2 % $ 0.36 $ 0.36 0.0 % Non-GAAP Net Income $ 1.1 $ 1.2 -8.4 % $ 3.5 $ 3.3 4.6 % Non-GAAP Diluted EPS $ 0.13 $ 0.16 -16.6 % $ 0.45 $ 0.43 4.8 % Adjusted EBITDA $ 2.3 $ 2.3 1.5 % $ 6.8 $ 6.1 11.5 % *numbers may not add due to rounding Balance Sheet and Liquidity as of September 30, 2023 Cash and cash equivalents were $3.6 million, compared to $7.6 million on December 31, 2022. Short-term and long-term debt were $1.0 million and $5.7 million, respectively. 2023 Commentary and Guidance (ending 12/31/23) 2023 Guidance 2022 Actual 2023 vs 2022 Revenue $111.0 million - $113.0 million $97.1 million +14% - 16% Adjusted EBITDA $8.9 - $9.2 million $7.8 Million +13% - 17% “For the full year 2023, we now expect revenue in the range of $111.0 to $113.0 million with $8.9 to $9.2 million in adjusted EBITDA. Note this increase in adjusted EBITDA is coming despite investing $1 million in expanding our managed services capabilities in 2023, which we expect to begin generating positive returns in 2024. Additionally, to drive further growth, especially in our managed services offerings, we recently shifted resources internally while further increasing our investment in business development by adding several high-level, quota-carrying key account managers who are well-regarded within the industry. We expect these additions to contribute nominally to revenue in our fourth quarter and, more significantly, in 2024,” concluded Smith. Trended Financial Information* (in $M except for EPS) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 FY 2022 YTD FY2023 Total Revenue $ 19.7 $ 27.5 $ 25.7 $ 24.5 $ 27.0 $ 30.9 $ 27.1 $ 97.4 $ 85.1 Hardware Solutions Revenue $ 14.3 $ 20.6 $ 19.2 $ 17.7 $ 20.5 $ 18.3 $ 14.0 $ 71.8 $ 52.8 Software and Services Revenue $ 4.1 $ 4.8 $ 4.7 $ 4.7 $ 4.9 $ 11.2 $ 11.7 $ 18.3 $ 27.7 Consumables Revenue $ 1.3 $ 2.1 $ 1.8 $ 2.1 $ 1.6 $ 1.5 $ 1.4 $ 7.3 $ 4.5 Gross Profit $ 4.7 $ 6.3 $ 5.8 $ 6.3 $ 6.1 $ 7.7 $ 7.5 $ 23.1 $ 21.3 Operating (loss) Income $ 0.2 $ 2.0 $ 1.5 $ 0.7 $ 1.2 $ 1.3 $ 1.5 $ 4.4 $ 4.1 Net (loss) Income $ 0.9 $ 0.7 $ 1.1 $ 0.4 $ 0.9 $ 0.8 $ 1.1 $ 3.1 $ 2.8 Diluted EPS $ 0.11 $ 0.09 $ 0.15 $ 0.07 $ 0.11 $ 0.11 $ 0.13 $ 0.41 $ 0.35 Non-GAAP Net Income $ 1.3 $ 0.8 $ 1.2 $ 0.7 $ 1.3 $ 1.0 $ 1.1 $ 4.1 $ 3.5 Non-GAAP Diluted EPS $ 0.16 $ 0.11 $ 0.16 $ 0.11 $ 0.16 $ 0.13 $ 0.13 $ 0.54 $ 0.45 Adjusted EBITDA $ 1.1 $ 2.7 $ 2.3 $ 1.8 $ 2.1 $ 2.5 $ 2.3 $ 7.8 $ 6.9 nm = not measurable/meaningful *numbers may not add due to rounding Earnings Conference Call and Webcast Information Date: November 14, 2023 Time: 1:00 p.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: 13742540 Replay Start: Tuesday, November 14, 2023, 2:00 p.m. ET Replay Expiry: Tuesday, November 21, 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) September 30, December 31, 2023 2022 ASSETS Current assets: Cash $ 3,645 $ 7,642 Accounts receivable, net 18,939 17,085 Inventory, net 3,002 4,417 Deferred costs 3,443 2,729 Prepaid expenses and other current assets 259 399 Total current assets 29,288 32,272 Operating lease assets 3,586 2,681 Property and equipment, net 2,980 1,817 Deferred costs, net of current portion 3,365 2,868 Deferred tax assets - 848 Intangible assets, net 8,404 4,531 Goodwill 24,555 10,499 Other assets 140 41 Total assets $ 72,318 $ 55,557 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,848 $ 19,755 Accrued expenses and other current liabilities 5,826 5,357 Deferred revenue 6,886 6,021 Current portion of earnout consideration 5,520 - Current portion of long-term debt 1,003 3 Current portion of operating lease liabilities 870 529 Total current liabilities 32,953 31,665 Deferred revenue, net of current portion 4,845 4,331 Long-term debt 5,693 143 Noncurrent portion of operating lease liabilities 3,315 2,706 Long-term portion of earnout consideration 4,316 - Deferred tax liabilities 1,451 - Other liabilities 6 130 Total liabilities 52,579 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; 7,654 and 7,416 shares issued and outstanding, respectively 8 7 Additional paid-in capital 38,831 38,429 Accumulated deficit (19,100 ) (21,854 ) Total stockholders’ equity 19,739 16,582 Total liabilities and stockholders’ equity $ 72,318 $ 55,557 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net sales: Product $ 15,436 $ 20,988 $ 57,348 $ 59,259 Service 11,704 4,725 27,743 13,681 Net sales 27,140 25,713 85,091 72,940 Cost of sales: Product 12,340 16,923 46,205 47,213 Service 7,317 3,036 17,604 8,971 Cost of sales 19,657 19,959 63,809 56,184 Gross profit 7,483 5,754 21,282 16,756 Operating expenses: Sales and marketing expense 2,129 2,291 6,988 6,850 General and administrative expenses 3,838 1,936 10,242 6,155 Total operating expenses 5,967 4,227 17,230 13,005 Operating income 1,516 1,527 4,052 3,751 Interest expense (162 ) (7 ) (385 ) (42 ) Other income (expense) 15 - 23 (17 ) Income before income taxes 1,369 1,520 3,690 3,692 Income tax expense (316 ) (409 ) (935 ) (1,008 ) Net income and comprehensive income attributable to common stockholders $ 1,053 $ 1,111 $ 2,755 $ 2,684 Earnings per share attributable to stockholders: Basic $ 0.14 $ 0.15 $ 0.37 $ 0.37 Diluted $ 0.13 $ 0.15 $ 0.36 $ 0.36 Weighted average common shares outstanding Basic 7,640 7,290 7,514 7,210 Diluted 7,812 7,593 7,659 7,510 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Nine Months Ended September 30, 2023 2022 Cash flows from operating activities Net income $ 2,755 $ 2,684 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,028 1,750 Amortization of inventory valuation adjustment 120 - Loss on fixed asset disposal - 22 Share-based compensation expense 261 325 Provision for inventory obsolescense 7 - Deferred income taxes, net (958 ) 460 Provision for doubtful accounts 77 32 Changes in operating assets and liabilities: Accounts receivable 8,193 (811 ) Inventory, net 3,918 825 Deferred costs (1,211 ) (1,155 ) Prepaid expenses and other current assets 196 186 Accounts payable (9,716 ) 7,213 Accrued expenses and other current liabilities (3,054 ) (139 ) Operating lease liabilities (68 ) 265 Deferred revenue 235 2,279 Net cash provided by operating activities 2,783 13,936 Cash flows from investing activities Purchases of property and equipment (546 ) (1,299 ) Cash paid for acquisitions, net of cash acquired (12,917 ) (4,525 ) Net cash used in investing activities (13,463 ) (5,824 ) Cash flows from financing activities Repayment of term debt (253 ) (3 ) Line of credit, net 1,803 - Proceeds from term loan 5,000 - Cash paid for taxes on the cashless exercises of stock options (67 ) (1,403 ) Proceeds from exercise of warrants 187 - Proceeds from exercise of stock options 13 154 Net cash provided by (used in) financing activities 6,683 (1,252 ) Change in cash (3,997 ) 6,860 Cash, beginning of period 7,642 2,587 Cash, end of period $ 3,645 $ 9,447 Supplemental disclosures of cash flow information Cash paid for interest $ 333 $ 38 Cash paid for income taxes $ 1,060 $ 497 Supplemental disclosure of non-cash activities Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 3,211 Cashless exercise of warrants $ 12 $ 3,508 Cashless exercise of stock options $ 25 $ - Trended Financial Information 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 Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net income, as reported $ 1,053 $ 1,111 $ 2,755 $ 2,684 Share-based compensation 45 50 261 325 Business acquisition costs 26 65 436 242 NYSE American uplisting costs - 1 - 1 Non-GAAP net income $ 1,124 $ 1,227 $ 3,452 $ 3,252 Depreciation and amortization 731 622 2,028 1,750 Income taxes 316 409 935 1,008 Interest expense 162 7 385 42 Adjusted EBITDA $ 2,333 $ 2,265 $ 6,800 $ 6,052 Diluted EPS, as reported $ 0.13 $ 0.15 $ 0.36 $ 0.36 Adjusted Diluted EPS $ 0.14 $ 0.16 $ 0.45 $ 0.43 Weighted average diluted common shares outstanding 7,812 7,593 7,659 7,510 View source version on businesswire.com: https://www.businesswire.com/news/home/20231114683449/en/
Investor Relations Contact: Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR (346) 396-8696 Brian@haydenir.com