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 Second Quarter 2023 Results By: DecisionPoint Systems, Inc. via Business Wire August 14, 2023 at 16:10 PM EDT Record revenue of $31 million (+12%), GAAP Diluted EPS increased 17%, Non-GAAP Diluted EPS1 increased 20% versus prior year Higher gross margin software, services and consumables mix increased to 40% of revenue Paid down $4.3 million in debt related to the early second quarter acquisition of Macro Integration Services DecisionPoint™ Systems, Inc. (NYSE American: DPSI), the leading mobility-first enterprise services and solutions company, today announced second quarter 2023 financial results ended June 30, 2023. Steve Smith, chief executive officer of DecisionPoint, commented: “We continued to execute on our proven growth model during the second quarter, benefiting from the synergies upside of our past M&A and cross-selling activities. Additionally, we acquired Macro Integration Services (MIS) at the beginning of the quarter, which shifted our mix towards higher gross margin software and services and gave us a significantly deeper presence in the retail vertical, especially grocery and foodservice. “The MIS acquisition is already playing an important role in transforming the Company. In addition to the revenue mix shift towards higher margin services and software, it expands our core competencies, geographic footprint and solutions offering. Finally, strong cash flow from operations enabled us to pay down a material portion of the debt we took on at the end of the first quarter to acquire MIS.” Second Quarter Highlights (2023 versus 2022) Revenue increased 12.4% to $30.9 million; Gross Profit increased 22.5% to $7.7 million; Gross Margin increased 210 basis points to 25.1%; GAAP Operating Income decreased 32.1% to $1.3 million; GAAP Net Income and diluted EPS increased 15.8% and 16.9% to $0.8 million and $0.11, respectively; Non-GAAP Net Income1 and non-GAAP diluted EPS increased 26.6% and 19.6% to $1.0 million and $0.13, respectively; Adjusted EBITDA1 decreased 9.4% to $2.5 million; Paid down $4.3 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 Second Quarter Select Financial Metrics: 2023 versus 2022 (in $M except for EPS) 2Q23 2Q22 Change YTD FY23 YTD FY22 Change Total Revenue $ 30.9 $ 27.5 12.4% $ 58.0 $ 47.2 22.8% Hardware $ 19.7 $ 22.7 -13.0% $ 41.9 $ 38.3 9.5% Software and Services $ 11.2 $ 4.8 132.6% $ 16.0 $ 8.9 79.4% Gross Profit $ 7.7 $ 6.3 22.5% $ 13.8 $ 11.0 25.4% Gross Margin 25.1% 23.0% 23.8% 23.3% GAAP Operating Income $ 1.3 $ 2.0 -32.1% $ 2.5 $ 2.2 14.1% GAAP Net Income $ 0.8 $ 0.7 15.8% $ 1.7 $ 1.6 8.0% GAAP Diluted EPS $ 0.11 $ 0.09 16.9% $ 0.22 $ 0.20 8.2% Non-GAAP Net Income $ 1.0 $ 0.8 26.6% $ 2.3 $ 2.1 11.8% Non-GAAP Diluted EPS $ 0.13 $ 0.11 19.6% $ 0.30 $ 0.27 9.5% Adjusted EBITDA $ 2.5 $ 2.7 -9.4% $ 4.6 $ 3.8 21.3% *numbers may not add due to rounding Balance Sheet and Liquidity as of June 30, 2022 Cash and cash equivalents were $7.2 million, compared to $7.6 million on December 31, 2022. Short-term and long-term debt were $1.0 million and $6.9 million, respectively. The decrease in cash and increase in debt was related to the Company drawing down on its credit facilities to close the acquisition of MIS on April 1, 2023 and subsequently paying down $4.3 million in debt at the end of the quarter. 2023 Commentary and Third Quarter Guidance (ending 9/30/23) “Looking to the third quarter, we are targeting $27.0 to $29.0 million in revenue (5 to 13% revenue growth) and adjusted EBITDA in the range of $2.0 to 2.3 million. Our business remains robust as, with the acquisition of MIS, we now have five new top ten customers and a much deeper play in providing retail technology solutions to customers,” concluded Smith. Conference Call and Webcast Information Management will host an earnings conference call and webcast at 11:00 a.m. Eastern Time. Q&A with investors will follow management's presentation of the results, outlook and strategy. Live Call Information: Date: August 15, 2023 Time: 11:00 a.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: 13740529 Replay Start: Tuesday, August 15, 2023, 12:00 p.m. ET Replay Expiry: Tuesday, August 22, 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) June 30, December 31, 2023 2022 ASSETS Current assets: Cash $ 7,225 $ 7,642 Accounts receivable, net 16,566 17,085 Inventory, net 2,446 4,417 Deferred costs 3,184 2,729 Prepaid expenses and other current assets 397 399 Total current assets 29,818 32,272 Operating lease assets 3,778 2,681 Property and equipment, net 2,920 1,817 Deferred costs, net of current portion 2,744 2,868 Deferred tax assets - 848 Intangible assets, net 8,993 4,531 Goodwill 24,379 10,499 Other assets 105 41 Total assets $ 72,737 $ 55,557 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,628 $ 19,755 Accrued expenses and other current liabilities 6,283 5,357 Deferred revenue 7,367 6,021 Current portion of earnout consideration 5,520 - Current portion of long-term debt 1,003 3 Current portion of operating lease liabilities 866 529 Total current liabilities 33,667 31,665 Deferred revenue, net of current portion 3,724 4,331 Long-term debt 6,891 143 Noncurrent portion of operating lease liabilities 3,516 2,706 Long-term portion of earnout consideration 4,316 - Deferred tax liabilities 1,909 - Other liabilities 6 130 Total liabilities 54,029 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; 7,628 and 7,416 shares issued and outstanding, respectively 8 7 Additional paid-in capital 38,853 38,429 Accumulated deficit (20,153 ) (21,854 ) Total stockholders’ equity 18,708 16,582 Total liabilities and stockholders’ equity $ 72,737 $ 55,557 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net sales: Product $ 19,746 $ 22,692 $ 41,912 $ 38,272 Service 11,166 4,814 16,039 8,955 Net sales 30,912 27,506 57,951 47,227 Cost of sales: Product 15,980 17,869 33,865 30,290 Service 7,184 3,310 10,287 5,935 Cost of sales 23,164 21,179 44,152 36,225 Gross profit 7,748 6,327 13,799 11,002 Operating expenses: Sales and marketing expense 2,491 2,384 4,859 4,560 General and administrative expenses 3,911 1,960 6,406 4,220 Total operating expenses 6,402 4,344 11,265 8,780 Operating income 1,346 1,983 2,534 2,222 Interest expense (210 ) (9 ) (223 ) (35 ) Other income (expense) 9 (21 ) 9 (16 ) Income before income taxes 1,145 1,953 2,320 2,171 Income tax expense (310 ) (1,232 ) (619 ) (598 ) Net income and comprehensive income attributable to common stockholders $ 835 $ 721 $ 1,701 $ 1,573 Earnings per share attributable to stockholders: Basic $ 0.11 $ 0.10 $ 0.23 $ 0.22 Diluted $ 0.11 $ 0.09 $ 0.22 $ 0.20 Weighted average common shares outstanding Basic 7,601 7,222 7,447 7,209 Diluted 7,935 7,691 7,869 7,720 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Six Months Ended June 30, 2023 2022 Cash flows from operating activities Net income $ 1,701 $ 1,573 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,297 1,128 Amortization of inventory valuation adjustment 120 - Loss on fixed asset disposal 235 22 Share-based compensation expense 216 275 Provision for inventory obsolescense 2 - Deferred income taxes, net (447 ) 589 Provision for doubtful accounts 118 - Changes in operating assets and liabilities: Accounts receivable 10,525 (4,950 ) Inventory, net 4,479 1,369 Deferred costs (331 ) (305 ) Prepaid expenses and other current assets 93 (171 ) Accounts payable (9,936 ) 4,479 Accrued expenses and other current liabilities (2,596 ) (501 ) Operating lease liabilities (63 ) 264 Deferred revenue (405 ) 9,100 Net cash provided by operating activities 5,008 12,872 Cash flows from investing activities Purchases of property and equipment (579 ) (1,095 ) Cash paid for acquisitions, net of cash acquired (12,794 ) (4,525 ) Net cash used in investing activities (13,373 ) (5,620 ) Cash flows from financing activities Repayment of term debt (252 ) (2 ) Line of credit, net 3,000 - Proceeds from term loan 5,000 - Cash paid for taxes on the cashless exercises of stock options - (1,403 ) Proceeds from exercise of warrants 187 - Proceeds from exercise of stock options 13 25 Net cash provided by (used in) financing activities 7,948 (1,380 ) Change in cash (417 ) 5,872 Cash, beginning of period 7,642 2,587 Cash, end of period $ 7,225 $ 8,459 Supplemental disclosures of cash flow information Cash paid for interest $ 88 $ 31 Cash paid for income taxes $ 419 $ 109 Supplemental disclosure of non-cash activities Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 3,211 Cashless exercise of warrants $ 9 $ 3,508 Trended Financial Information (in $M except for EPS) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 FY21 FY22 YTD FY23 Total Revenue $ 19.7 $ 27.5 $ 25.7 $ 24.5 $ 27.0 $ 30.9 $ 65.9 $ 97.4 $ 58.0 Hardware $ 15.6 $ 22.7 $ 21.0 $ 19.8 $ 22.2 $ 19.7 $ 44.4 $ 71.8 $ 41.9 Software and Services $ 4.1 $ 4.8 $ 4.7 $ 4.7 $ 4.9 $ 11.2 $ 15.5 $ 18.3 $ 16.0 Gross Profit $ 4.7 $ 6.3 $ 5.8 $ 6.3 $ 6.1 $ 7.7 $ 15.3 $ 23.1 $ 13.8 Gross Margin 23.7 % 23.0 % 22.4 % 25.9 % 22.4 % 25.1 % 23.2 % 23.7 % 23.8 % Operating (loss) Income $ 0.2 $ 2.0 $ 1.5 $ 0.7 $ 1.2 $ 1.3 $ 0.4 $ 4.4 $ 2.5 GAAP Net (loss) Income $ 0.9 $ 0.7 $ 1.1 $ 0.4 $ 0.9 $ 0.8 $ 1.4 $ 3.1 $ 1.7 GAAP Diluted EPS $ 0.11 $ 0.09 $ 0.15 $ 0.07 $ 0.11 $ 0.11 $ 0.19 $ 0.41 $ 0.22 Non-GAAP Net Income $ 1.3 $ 0.8 $ 1.2 $ 0.7 $ 1.3 $ 1.0 $ 1.5 $ 4.1 $ 2.3 Non-GAAP Diluted EPS $ 0.16 $ 0.11 $ 0.16 $ 0.11 $ 0.16 $ 0.13 $ 0.20 $ 0.54 $ 0.30 Adjusted EBITDA $ 1.1 $ 2.7 $ 2.3 $ 1.8 $ 2.2 $ 2.5 $ 3.1 $ 7.8 $ 4.6 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 Six Months Ended June 30 June 30 2023 2022 2023 2022 Net income, as reported $ 835 $ 721 $ 1,701 $ 1,573 Share-based compensation 20 50 216 275 Business acquisition costs 189 25 410 202 NYSE American uplisting costs - 29 - - Non-GAAP net income $ 1,044 $ 825 $ 2,327 $ 2,050 Depreciation and amortization 908 676 1,472 1,128 Income taxes 310 1,232 619 595 Interest expense 210 9 223 34 Adjusted EBITDA $ 2,471 $ 2,742 $ 4,640 $ 3,807 Diluted EPS, as reported $ 0.11 $ 0.09 $ 0.22 $ 0.20 Adjusted Diluted EPS $ 0.13 $ 0.10 $ 0.30 $ 0.27 Weighted average diluted common shares outstanding 7,935 7,691 7,869 7,720 View source version on businesswire.com: https://www.businesswire.com/news/home/20230814893119/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 Second Quarter 2023 Results By: DecisionPoint Systems, Inc. via Business Wire August 14, 2023 at 16:10 PM EDT Record revenue of $31 million (+12%), GAAP Diluted EPS increased 17%, Non-GAAP Diluted EPS1 increased 20% versus prior year Higher gross margin software, services and consumables mix increased to 40% of revenue Paid down $4.3 million in debt related to the early second quarter acquisition of Macro Integration Services DecisionPoint™ Systems, Inc. (NYSE American: DPSI), the leading mobility-first enterprise services and solutions company, today announced second quarter 2023 financial results ended June 30, 2023. Steve Smith, chief executive officer of DecisionPoint, commented: “We continued to execute on our proven growth model during the second quarter, benefiting from the synergies upside of our past M&A and cross-selling activities. Additionally, we acquired Macro Integration Services (MIS) at the beginning of the quarter, which shifted our mix towards higher gross margin software and services and gave us a significantly deeper presence in the retail vertical, especially grocery and foodservice. “The MIS acquisition is already playing an important role in transforming the Company. In addition to the revenue mix shift towards higher margin services and software, it expands our core competencies, geographic footprint and solutions offering. Finally, strong cash flow from operations enabled us to pay down a material portion of the debt we took on at the end of the first quarter to acquire MIS.” Second Quarter Highlights (2023 versus 2022) Revenue increased 12.4% to $30.9 million; Gross Profit increased 22.5% to $7.7 million; Gross Margin increased 210 basis points to 25.1%; GAAP Operating Income decreased 32.1% to $1.3 million; GAAP Net Income and diluted EPS increased 15.8% and 16.9% to $0.8 million and $0.11, respectively; Non-GAAP Net Income1 and non-GAAP diluted EPS increased 26.6% and 19.6% to $1.0 million and $0.13, respectively; Adjusted EBITDA1 decreased 9.4% to $2.5 million; Paid down $4.3 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 Second Quarter Select Financial Metrics: 2023 versus 2022 (in $M except for EPS) 2Q23 2Q22 Change YTD FY23 YTD FY22 Change Total Revenue $ 30.9 $ 27.5 12.4% $ 58.0 $ 47.2 22.8% Hardware $ 19.7 $ 22.7 -13.0% $ 41.9 $ 38.3 9.5% Software and Services $ 11.2 $ 4.8 132.6% $ 16.0 $ 8.9 79.4% Gross Profit $ 7.7 $ 6.3 22.5% $ 13.8 $ 11.0 25.4% Gross Margin 25.1% 23.0% 23.8% 23.3% GAAP Operating Income $ 1.3 $ 2.0 -32.1% $ 2.5 $ 2.2 14.1% GAAP Net Income $ 0.8 $ 0.7 15.8% $ 1.7 $ 1.6 8.0% GAAP Diluted EPS $ 0.11 $ 0.09 16.9% $ 0.22 $ 0.20 8.2% Non-GAAP Net Income $ 1.0 $ 0.8 26.6% $ 2.3 $ 2.1 11.8% Non-GAAP Diluted EPS $ 0.13 $ 0.11 19.6% $ 0.30 $ 0.27 9.5% Adjusted EBITDA $ 2.5 $ 2.7 -9.4% $ 4.6 $ 3.8 21.3% *numbers may not add due to rounding Balance Sheet and Liquidity as of June 30, 2022 Cash and cash equivalents were $7.2 million, compared to $7.6 million on December 31, 2022. Short-term and long-term debt were $1.0 million and $6.9 million, respectively. The decrease in cash and increase in debt was related to the Company drawing down on its credit facilities to close the acquisition of MIS on April 1, 2023 and subsequently paying down $4.3 million in debt at the end of the quarter. 2023 Commentary and Third Quarter Guidance (ending 9/30/23) “Looking to the third quarter, we are targeting $27.0 to $29.0 million in revenue (5 to 13% revenue growth) and adjusted EBITDA in the range of $2.0 to 2.3 million. Our business remains robust as, with the acquisition of MIS, we now have five new top ten customers and a much deeper play in providing retail technology solutions to customers,” concluded Smith. Conference Call and Webcast Information Management will host an earnings conference call and webcast at 11:00 a.m. Eastern Time. Q&A with investors will follow management's presentation of the results, outlook and strategy. Live Call Information: Date: August 15, 2023 Time: 11:00 a.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: 13740529 Replay Start: Tuesday, August 15, 2023, 12:00 p.m. ET Replay Expiry: Tuesday, August 22, 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) June 30, December 31, 2023 2022 ASSETS Current assets: Cash $ 7,225 $ 7,642 Accounts receivable, net 16,566 17,085 Inventory, net 2,446 4,417 Deferred costs 3,184 2,729 Prepaid expenses and other current assets 397 399 Total current assets 29,818 32,272 Operating lease assets 3,778 2,681 Property and equipment, net 2,920 1,817 Deferred costs, net of current portion 2,744 2,868 Deferred tax assets - 848 Intangible assets, net 8,993 4,531 Goodwill 24,379 10,499 Other assets 105 41 Total assets $ 72,737 $ 55,557 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,628 $ 19,755 Accrued expenses and other current liabilities 6,283 5,357 Deferred revenue 7,367 6,021 Current portion of earnout consideration 5,520 - Current portion of long-term debt 1,003 3 Current portion of operating lease liabilities 866 529 Total current liabilities 33,667 31,665 Deferred revenue, net of current portion 3,724 4,331 Long-term debt 6,891 143 Noncurrent portion of operating lease liabilities 3,516 2,706 Long-term portion of earnout consideration 4,316 - Deferred tax liabilities 1,909 - Other liabilities 6 130 Total liabilities 54,029 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; 7,628 and 7,416 shares issued and outstanding, respectively 8 7 Additional paid-in capital 38,853 38,429 Accumulated deficit (20,153 ) (21,854 ) Total stockholders’ equity 18,708 16,582 Total liabilities and stockholders’ equity $ 72,737 $ 55,557 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net sales: Product $ 19,746 $ 22,692 $ 41,912 $ 38,272 Service 11,166 4,814 16,039 8,955 Net sales 30,912 27,506 57,951 47,227 Cost of sales: Product 15,980 17,869 33,865 30,290 Service 7,184 3,310 10,287 5,935 Cost of sales 23,164 21,179 44,152 36,225 Gross profit 7,748 6,327 13,799 11,002 Operating expenses: Sales and marketing expense 2,491 2,384 4,859 4,560 General and administrative expenses 3,911 1,960 6,406 4,220 Total operating expenses 6,402 4,344 11,265 8,780 Operating income 1,346 1,983 2,534 2,222 Interest expense (210 ) (9 ) (223 ) (35 ) Other income (expense) 9 (21 ) 9 (16 ) Income before income taxes 1,145 1,953 2,320 2,171 Income tax expense (310 ) (1,232 ) (619 ) (598 ) Net income and comprehensive income attributable to common stockholders $ 835 $ 721 $ 1,701 $ 1,573 Earnings per share attributable to stockholders: Basic $ 0.11 $ 0.10 $ 0.23 $ 0.22 Diluted $ 0.11 $ 0.09 $ 0.22 $ 0.20 Weighted average common shares outstanding Basic 7,601 7,222 7,447 7,209 Diluted 7,935 7,691 7,869 7,720 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Six Months Ended June 30, 2023 2022 Cash flows from operating activities Net income $ 1,701 $ 1,573 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,297 1,128 Amortization of inventory valuation adjustment 120 - Loss on fixed asset disposal 235 22 Share-based compensation expense 216 275 Provision for inventory obsolescense 2 - Deferred income taxes, net (447 ) 589 Provision for doubtful accounts 118 - Changes in operating assets and liabilities: Accounts receivable 10,525 (4,950 ) Inventory, net 4,479 1,369 Deferred costs (331 ) (305 ) Prepaid expenses and other current assets 93 (171 ) Accounts payable (9,936 ) 4,479 Accrued expenses and other current liabilities (2,596 ) (501 ) Operating lease liabilities (63 ) 264 Deferred revenue (405 ) 9,100 Net cash provided by operating activities 5,008 12,872 Cash flows from investing activities Purchases of property and equipment (579 ) (1,095 ) Cash paid for acquisitions, net of cash acquired (12,794 ) (4,525 ) Net cash used in investing activities (13,373 ) (5,620 ) Cash flows from financing activities Repayment of term debt (252 ) (2 ) Line of credit, net 3,000 - Proceeds from term loan 5,000 - Cash paid for taxes on the cashless exercises of stock options - (1,403 ) Proceeds from exercise of warrants 187 - Proceeds from exercise of stock options 13 25 Net cash provided by (used in) financing activities 7,948 (1,380 ) Change in cash (417 ) 5,872 Cash, beginning of period 7,642 2,587 Cash, end of period $ 7,225 $ 8,459 Supplemental disclosures of cash flow information Cash paid for interest $ 88 $ 31 Cash paid for income taxes $ 419 $ 109 Supplemental disclosure of non-cash activities Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 3,211 Cashless exercise of warrants $ 9 $ 3,508 Trended Financial Information (in $M except for EPS) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 FY21 FY22 YTD FY23 Total Revenue $ 19.7 $ 27.5 $ 25.7 $ 24.5 $ 27.0 $ 30.9 $ 65.9 $ 97.4 $ 58.0 Hardware $ 15.6 $ 22.7 $ 21.0 $ 19.8 $ 22.2 $ 19.7 $ 44.4 $ 71.8 $ 41.9 Software and Services $ 4.1 $ 4.8 $ 4.7 $ 4.7 $ 4.9 $ 11.2 $ 15.5 $ 18.3 $ 16.0 Gross Profit $ 4.7 $ 6.3 $ 5.8 $ 6.3 $ 6.1 $ 7.7 $ 15.3 $ 23.1 $ 13.8 Gross Margin 23.7 % 23.0 % 22.4 % 25.9 % 22.4 % 25.1 % 23.2 % 23.7 % 23.8 % Operating (loss) Income $ 0.2 $ 2.0 $ 1.5 $ 0.7 $ 1.2 $ 1.3 $ 0.4 $ 4.4 $ 2.5 GAAP Net (loss) Income $ 0.9 $ 0.7 $ 1.1 $ 0.4 $ 0.9 $ 0.8 $ 1.4 $ 3.1 $ 1.7 GAAP Diluted EPS $ 0.11 $ 0.09 $ 0.15 $ 0.07 $ 0.11 $ 0.11 $ 0.19 $ 0.41 $ 0.22 Non-GAAP Net Income $ 1.3 $ 0.8 $ 1.2 $ 0.7 $ 1.3 $ 1.0 $ 1.5 $ 4.1 $ 2.3 Non-GAAP Diluted EPS $ 0.16 $ 0.11 $ 0.16 $ 0.11 $ 0.16 $ 0.13 $ 0.20 $ 0.54 $ 0.30 Adjusted EBITDA $ 1.1 $ 2.7 $ 2.3 $ 1.8 $ 2.2 $ 2.5 $ 3.1 $ 7.8 $ 4.6 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 Six Months Ended June 30 June 30 2023 2022 2023 2022 Net income, as reported $ 835 $ 721 $ 1,701 $ 1,573 Share-based compensation 20 50 216 275 Business acquisition costs 189 25 410 202 NYSE American uplisting costs - 29 - - Non-GAAP net income $ 1,044 $ 825 $ 2,327 $ 2,050 Depreciation and amortization 908 676 1,472 1,128 Income taxes 310 1,232 619 595 Interest expense 210 9 223 34 Adjusted EBITDA $ 2,471 $ 2,742 $ 4,640 $ 3,807 Diluted EPS, as reported $ 0.11 $ 0.09 $ 0.22 $ 0.20 Adjusted Diluted EPS $ 0.13 $ 0.10 $ 0.30 $ 0.27 Weighted average diluted common shares outstanding 7,935 7,691 7,869 7,720 View source version on businesswire.com: https://www.businesswire.com/news/home/20230814893119/en/Contacts Investor Relations Contact: Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR (346) 396-8696 Brian@haydenir.com
Record revenue of $31 million (+12%), GAAP Diluted EPS increased 17%, Non-GAAP Diluted EPS1 increased 20% versus prior year Higher gross margin software, services and consumables mix increased to 40% of revenue Paid down $4.3 million in debt related to the early second quarter acquisition of Macro Integration Services
DecisionPoint™ Systems, Inc. (NYSE American: DPSI), the leading mobility-first enterprise services and solutions company, today announced second quarter 2023 financial results ended June 30, 2023. Steve Smith, chief executive officer of DecisionPoint, commented: “We continued to execute on our proven growth model during the second quarter, benefiting from the synergies upside of our past M&A and cross-selling activities. Additionally, we acquired Macro Integration Services (MIS) at the beginning of the quarter, which shifted our mix towards higher gross margin software and services and gave us a significantly deeper presence in the retail vertical, especially grocery and foodservice. “The MIS acquisition is already playing an important role in transforming the Company. In addition to the revenue mix shift towards higher margin services and software, it expands our core competencies, geographic footprint and solutions offering. Finally, strong cash flow from operations enabled us to pay down a material portion of the debt we took on at the end of the first quarter to acquire MIS.” Second Quarter Highlights (2023 versus 2022) Revenue increased 12.4% to $30.9 million; Gross Profit increased 22.5% to $7.7 million; Gross Margin increased 210 basis points to 25.1%; GAAP Operating Income decreased 32.1% to $1.3 million; GAAP Net Income and diluted EPS increased 15.8% and 16.9% to $0.8 million and $0.11, respectively; Non-GAAP Net Income1 and non-GAAP diluted EPS increased 26.6% and 19.6% to $1.0 million and $0.13, respectively; Adjusted EBITDA1 decreased 9.4% to $2.5 million; Paid down $4.3 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 Second Quarter Select Financial Metrics: 2023 versus 2022 (in $M except for EPS) 2Q23 2Q22 Change YTD FY23 YTD FY22 Change Total Revenue $ 30.9 $ 27.5 12.4% $ 58.0 $ 47.2 22.8% Hardware $ 19.7 $ 22.7 -13.0% $ 41.9 $ 38.3 9.5% Software and Services $ 11.2 $ 4.8 132.6% $ 16.0 $ 8.9 79.4% Gross Profit $ 7.7 $ 6.3 22.5% $ 13.8 $ 11.0 25.4% Gross Margin 25.1% 23.0% 23.8% 23.3% GAAP Operating Income $ 1.3 $ 2.0 -32.1% $ 2.5 $ 2.2 14.1% GAAP Net Income $ 0.8 $ 0.7 15.8% $ 1.7 $ 1.6 8.0% GAAP Diluted EPS $ 0.11 $ 0.09 16.9% $ 0.22 $ 0.20 8.2% Non-GAAP Net Income $ 1.0 $ 0.8 26.6% $ 2.3 $ 2.1 11.8% Non-GAAP Diluted EPS $ 0.13 $ 0.11 19.6% $ 0.30 $ 0.27 9.5% Adjusted EBITDA $ 2.5 $ 2.7 -9.4% $ 4.6 $ 3.8 21.3% *numbers may not add due to rounding Balance Sheet and Liquidity as of June 30, 2022 Cash and cash equivalents were $7.2 million, compared to $7.6 million on December 31, 2022. Short-term and long-term debt were $1.0 million and $6.9 million, respectively. The decrease in cash and increase in debt was related to the Company drawing down on its credit facilities to close the acquisition of MIS on April 1, 2023 and subsequently paying down $4.3 million in debt at the end of the quarter. 2023 Commentary and Third Quarter Guidance (ending 9/30/23) “Looking to the third quarter, we are targeting $27.0 to $29.0 million in revenue (5 to 13% revenue growth) and adjusted EBITDA in the range of $2.0 to 2.3 million. Our business remains robust as, with the acquisition of MIS, we now have five new top ten customers and a much deeper play in providing retail technology solutions to customers,” concluded Smith. Conference Call and Webcast Information Management will host an earnings conference call and webcast at 11:00 a.m. Eastern Time. Q&A with investors will follow management's presentation of the results, outlook and strategy. Live Call Information: Date: August 15, 2023 Time: 11:00 a.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: 13740529 Replay Start: Tuesday, August 15, 2023, 12:00 p.m. ET Replay Expiry: Tuesday, August 22, 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) June 30, December 31, 2023 2022 ASSETS Current assets: Cash $ 7,225 $ 7,642 Accounts receivable, net 16,566 17,085 Inventory, net 2,446 4,417 Deferred costs 3,184 2,729 Prepaid expenses and other current assets 397 399 Total current assets 29,818 32,272 Operating lease assets 3,778 2,681 Property and equipment, net 2,920 1,817 Deferred costs, net of current portion 2,744 2,868 Deferred tax assets - 848 Intangible assets, net 8,993 4,531 Goodwill 24,379 10,499 Other assets 105 41 Total assets $ 72,737 $ 55,557 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 12,628 $ 19,755 Accrued expenses and other current liabilities 6,283 5,357 Deferred revenue 7,367 6,021 Current portion of earnout consideration 5,520 - Current portion of long-term debt 1,003 3 Current portion of operating lease liabilities 866 529 Total current liabilities 33,667 31,665 Deferred revenue, net of current portion 3,724 4,331 Long-term debt 6,891 143 Noncurrent portion of operating lease liabilities 3,516 2,706 Long-term portion of earnout consideration 4,316 - Deferred tax liabilities 1,909 - Other liabilities 6 130 Total liabilities 54,029 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; 7,628 and 7,416 shares issued and outstanding, respectively 8 7 Additional paid-in capital 38,853 38,429 Accumulated deficit (20,153 ) (21,854 ) Total stockholders’ equity 18,708 16,582 Total liabilities and stockholders’ equity $ 72,737 $ 55,557 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Income and Comprehensive Income (in thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net sales: Product $ 19,746 $ 22,692 $ 41,912 $ 38,272 Service 11,166 4,814 16,039 8,955 Net sales 30,912 27,506 57,951 47,227 Cost of sales: Product 15,980 17,869 33,865 30,290 Service 7,184 3,310 10,287 5,935 Cost of sales 23,164 21,179 44,152 36,225 Gross profit 7,748 6,327 13,799 11,002 Operating expenses: Sales and marketing expense 2,491 2,384 4,859 4,560 General and administrative expenses 3,911 1,960 6,406 4,220 Total operating expenses 6,402 4,344 11,265 8,780 Operating income 1,346 1,983 2,534 2,222 Interest expense (210 ) (9 ) (223 ) (35 ) Other income (expense) 9 (21 ) 9 (16 ) Income before income taxes 1,145 1,953 2,320 2,171 Income tax expense (310 ) (1,232 ) (619 ) (598 ) Net income and comprehensive income attributable to common stockholders $ 835 $ 721 $ 1,701 $ 1,573 Earnings per share attributable to stockholders: Basic $ 0.11 $ 0.10 $ 0.23 $ 0.22 Diluted $ 0.11 $ 0.09 $ 0.22 $ 0.20 Weighted average common shares outstanding Basic 7,601 7,222 7,447 7,209 Diluted 7,935 7,691 7,869 7,720 DecisionPoint Systems, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Six Months Ended June 30, 2023 2022 Cash flows from operating activities Net income $ 1,701 $ 1,573 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,297 1,128 Amortization of inventory valuation adjustment 120 - Loss on fixed asset disposal 235 22 Share-based compensation expense 216 275 Provision for inventory obsolescense 2 - Deferred income taxes, net (447 ) 589 Provision for doubtful accounts 118 - Changes in operating assets and liabilities: Accounts receivable 10,525 (4,950 ) Inventory, net 4,479 1,369 Deferred costs (331 ) (305 ) Prepaid expenses and other current assets 93 (171 ) Accounts payable (9,936 ) 4,479 Accrued expenses and other current liabilities (2,596 ) (501 ) Operating lease liabilities (63 ) 264 Deferred revenue (405 ) 9,100 Net cash provided by operating activities 5,008 12,872 Cash flows from investing activities Purchases of property and equipment (579 ) (1,095 ) Cash paid for acquisitions, net of cash acquired (12,794 ) (4,525 ) Net cash used in investing activities (13,373 ) (5,620 ) Cash flows from financing activities Repayment of term debt (252 ) (2 ) Line of credit, net 3,000 - Proceeds from term loan 5,000 - Cash paid for taxes on the cashless exercises of stock options - (1,403 ) Proceeds from exercise of warrants 187 - Proceeds from exercise of stock options 13 25 Net cash provided by (used in) financing activities 7,948 (1,380 ) Change in cash (417 ) 5,872 Cash, beginning of period 7,642 2,587 Cash, end of period $ 7,225 $ 8,459 Supplemental disclosures of cash flow information Cash paid for interest $ 88 $ 31 Cash paid for income taxes $ 419 $ 109 Supplemental disclosure of non-cash activities Right-of-use assets obtained in exchange for new operating lease liabilities $ - $ 3,211 Cashless exercise of warrants $ 9 $ 3,508 Trended Financial Information (in $M except for EPS) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 FY21 FY22 YTD FY23 Total Revenue $ 19.7 $ 27.5 $ 25.7 $ 24.5 $ 27.0 $ 30.9 $ 65.9 $ 97.4 $ 58.0 Hardware $ 15.6 $ 22.7 $ 21.0 $ 19.8 $ 22.2 $ 19.7 $ 44.4 $ 71.8 $ 41.9 Software and Services $ 4.1 $ 4.8 $ 4.7 $ 4.7 $ 4.9 $ 11.2 $ 15.5 $ 18.3 $ 16.0 Gross Profit $ 4.7 $ 6.3 $ 5.8 $ 6.3 $ 6.1 $ 7.7 $ 15.3 $ 23.1 $ 13.8 Gross Margin 23.7 % 23.0 % 22.4 % 25.9 % 22.4 % 25.1 % 23.2 % 23.7 % 23.8 % Operating (loss) Income $ 0.2 $ 2.0 $ 1.5 $ 0.7 $ 1.2 $ 1.3 $ 0.4 $ 4.4 $ 2.5 GAAP Net (loss) Income $ 0.9 $ 0.7 $ 1.1 $ 0.4 $ 0.9 $ 0.8 $ 1.4 $ 3.1 $ 1.7 GAAP Diluted EPS $ 0.11 $ 0.09 $ 0.15 $ 0.07 $ 0.11 $ 0.11 $ 0.19 $ 0.41 $ 0.22 Non-GAAP Net Income $ 1.3 $ 0.8 $ 1.2 $ 0.7 $ 1.3 $ 1.0 $ 1.5 $ 4.1 $ 2.3 Non-GAAP Diluted EPS $ 0.16 $ 0.11 $ 0.16 $ 0.11 $ 0.16 $ 0.13 $ 0.20 $ 0.54 $ 0.30 Adjusted EBITDA $ 1.1 $ 2.7 $ 2.3 $ 1.8 $ 2.2 $ 2.5 $ 3.1 $ 7.8 $ 4.6 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 Six Months Ended June 30 June 30 2023 2022 2023 2022 Net income, as reported $ 835 $ 721 $ 1,701 $ 1,573 Share-based compensation 20 50 216 275 Business acquisition costs 189 25 410 202 NYSE American uplisting costs - 29 - - Non-GAAP net income $ 1,044 $ 825 $ 2,327 $ 2,050 Depreciation and amortization 908 676 1,472 1,128 Income taxes 310 1,232 619 595 Interest expense 210 9 223 34 Adjusted EBITDA $ 2,471 $ 2,742 $ 4,640 $ 3,807 Diluted EPS, as reported $ 0.11 $ 0.09 $ 0.22 $ 0.20 Adjusted Diluted EPS $ 0.13 $ 0.10 $ 0.30 $ 0.27 Weighted average diluted common shares outstanding 7,935 7,691 7,869 7,720 View source version on businesswire.com: https://www.businesswire.com/news/home/20230814893119/en/
Investor Relations Contact: Brian Siegel, IRC, MBA Senior Managing Director, Hayden IR (346) 396-8696 Brian@haydenir.com