DecisionPoint Systems Announces Fourth Quarter and Full-Year 2022 Results
DecisionPoint Systems, Inc. (NYSE American: DPSI) reported a record revenue of $97.4 million for full-year 2022, marking a 48% increase. GAAP net income rose 120% to $3.1 million, while diluted EPS increased to $0.41 (+117%). Non-GAAP EPS saw an impressive growth of 165% to $0.54, and adjusted EBITDA surged 152% to $7.8 million. The fourth quarter also showed strong performance with revenue reaching $24.5 million (+48.5%) and gross profit increasing by 67.6%. Looking ahead, the company expects continued growth in recurring revenue and aims to acquire at least one company in 2023.
- Record full-year revenue of $97.4 million (+48%)
- GAAP net income increased by 120% to $3.1 million
- Non-GAAP EPS rose by 165% to $0.54
- Adjusted EBITDA grew by 152% to $7.8 million
- Strong backlog of $30.3 million as of December 31, 2022
- None.
Full-year revenue increased
Full-year GAAP net income of
Full-year non-GAAP EPS of
“We had a record year and created significant value for shareholders, demonstrating the potency of our strategy and our ability to execute on our playbook, even in challenging macro-economic backdrop,” said
Fourth Quarter Highlights (2022 versus 2021)
-
Revenue increased
48.5% to$24.5 million -
Gross Profit increased
67.6% to$6.3 million -
GAAP Net Income and diluted EPS increased to
$0.4 million $0.07 -
Non-GAAP Net Income and non-GAAP diluted EPS increased
113.0% and181.7% to$0.7 million $0.10 -
Adjusted EBITDA increased
274.0% to$1.8 million
Full-Year Highlights (2022 versus 2021)
-
Revenue increased
47.7% to$97.4 million -
Gross Profit increased
50.9% to$23.1 million -
GAAP Net Income and diluted EPS increased to
$3.1 million $0.41 -
Non-GAAP Net Income and non-GAAP diluted EPS increased
164.3% and165.4% to$4.1 million $0.54 -
Adjusted EBITDA increased
151.6% to$7.8 million -
Backlog as of
December 31, 2022 , was$30.3 million
| Fourth Quarter Select Financial Metrics: 2022 versus 2021* | ||||||||||||||||
| (in $M except for EPS) |
|
4Q22 |
|
4Q21 |
|
Change |
|
2022 |
|
2021 |
Change |
|||||
| Total Revenue | $ |
24.5 |
$ |
16.5 |
|
48.5 |
% |
$ |
97.4 |
$ |
65.9 |
47.7 |
% |
|||
| Hardware Revenue | $ |
17.7 |
$ |
10.9 |
|
62.3 |
% |
$ |
71.8 |
$ |
44.4 |
61.8 |
% |
|||
| Software and Services Revenue | $ |
4.7 |
$ |
3.9 |
|
21.3 |
% |
$ |
18.3 |
$ |
15.5 |
18.6 |
% |
|||
| Consumables Revenue | $ |
2.1 |
$ |
1.7 |
|
22.9 |
% |
$ |
7.3 |
$ |
6.1 |
19.3 |
% |
|||
| Gross Profit | $ |
6.3 |
$ |
3.8 |
|
67.6 |
% |
$ |
23.1 |
$ |
15.3 |
50.9 |
% |
|||
| Operating Income | $ |
0.7 |
$ |
(0.9 |
) |
nm | $ |
4.4 |
$ |
0.4 |
1017.3 |
% |
||||
| GAAP Net Income | $ |
0.4 |
$ |
(0.7 |
) |
nm | $ |
3.1 |
$ |
1.4 |
120.0 |
% |
||||
| GAAP Diluted Earnings Per Share | $ |
0.07 |
$ |
(0.04 |
) |
nm | $ |
0.41 |
$ |
0.19 |
116.5 |
% |
||||
| Non-GAAP Net Income | $ |
0.7 |
$ |
0.4 |
|
113.0 |
% |
$ |
4.1 |
$ |
1.5 |
164.3 |
% |
|||
| Non-GAAP Diluted EPS | $ |
0.10 |
$ |
0.04 |
|
181.7 |
% |
$ |
0.54 |
$ |
0.20 |
165.4 |
% |
|||
| Adjusted EBITDA | $ |
1.8 |
$ |
0.5 |
|
274.0 |
% |
$ |
7.8 |
$ |
3.1 |
151.6 |
% |
|||
| *numbers may not add due to rounding | ||||||||||||||||
| nm = not measurable/meaningful | ||||||||||||||||
Balance Sheet and Liquidity as of
Cash and cash equivalents were
Net cash from operating activities was
2023 Commentary and First Quarter Guidance (ending 3/31/23)
|
1Q23 Guidance |
1Q22 Actual |
Revenue |
|
|
Adjusted EBITDA |
|
|
“Over the remainder of the year, we expect to grow our recurring revenue businesses, including services and consumables, book new project orders and acquire at least one company to drive top and bottom-line growth in 2023. Additionally, we have made and will continue to increase investments into developing our intellectual property core, including our Vision portal for managed service delivery, which we believe is a competitive differentiator in the market. Finally, we made some recent additions to our team of sales and business development professionals, which we believe enhances our already solid foundation for continued growth in 2023 and beyond,” concluded Smith.
Conference Call and Webcast Information
Management will host an earnings conference call and webcast at
Live Call Information:
Date:
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 prior to the scheduled start time).
Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1606515&tp_key=37450f0c29
Replay Information:
Toll-Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13737455
Replay Start:
Replay Expiry:
About
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.
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands, except par value) |
||||||||
(Unaudited) |
||||||||
|
|
|||||||
2022 |
2021 |
|||||||
ASSETS |
|
|
||||||
Current assets: |
||||||||
Cash |
$ |
7,642 |
|
|
$ |
2,587 |
|
|
Accounts receivable, net |
|
17,085 |
|
|
|
12,302 |
|
|
Inventory, net |
|
4,417 |
|
|
|
2,111 |
|
|
Deferred costs |
|
2,729 |
|
|
|
1,998 |
|
|
Prepaid expenses and other current assets |
|
399 |
|
|
|
336 |
|
|
Total current assets |
|
32,272 |
|
|
|
19,334 |
|
|
Operating lease assets |
|
2,681 |
|
|
|
329 |
|
|
Property and equipment, net |
|
1,817 |
|
|
|
834 |
|
|
Deferred costs, net of current portion |
|
2,868 |
|
|
|
1,492 |
|
|
Deferred tax assets |
|
848 |
|
|
|
1,999 |
|
|
Intangible assets, net |
|
4,531 |
|
|
|
3,564 |
|
|
|
|
10,499 |
|
|
|
8,128 |
|
|
Other assets |
|
41 |
|
|
|
50 |
|
|
Total assets |
$ |
55,557 |
|
|
$ |
35,730 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
19,755 |
|
|
$ |
10,273 |
|
|
Accrued expenses and other current liabilities |
|
5,357 |
|
|
|
3,220 |
|
|
Deferred revenue |
|
6,021 |
|
|
|
4,599 |
|
|
Current portion of long-term debt |
|
3 |
|
|
|
3 |
|
|
Current portion of operating lease liabilities |
|
529 |
|
|
|
257 |
|
|
Total current liabilities |
|
31,665 |
|
|
|
18,352 |
|
|
Deferred revenue, net of current portion |
|
4,331 |
|
|
|
2,510 |
|
|
Long-term debt |
|
143 |
|
|
|
146 |
|
|
Noncurrent portion of operating lease liabilities |
|
2,706 |
|
|
|
83 |
|
|
Other liabilities |
|
130 |
|
|
|
381 |
|
|
Total liabilities |
|
38,975 |
|
|
|
21,472 |
|
|
Stockholders’ equity: |
|
|
|
|||||
Preferred stock, |
|
- |
|
|
|
- |
|
|
Common stock, |
|
7 |
|
|
|
7 |
|
|
Additional paid-in capital |
|
38,429 |
|
|
|
39,216 |
|
|
Accumulated deficit |
|
(21,854 |
) |
|
|
(24,965 |
) |
|
Total stockholders’ equity |
|
16,582 |
|
|
|
14,258 |
|
|
Total liabilities and stockholders’ equity |
$ |
55,557 |
|
|
$ |
35,730 |
|
|
|
||||||||
Condensed Consolidated Statements of Income and Comprehensive Income |
||||||||
(in thousands, except per share data) |
||||||||
(Unaudited) |
||||||||
|
Year Ended
|
|||||||
|
2022 |
2021 |
||||||
Net sales: |
|
|
||||||
Product |
$ |
79,079 |
|
$ |
50,480 |
|
||
Service |
|
18,336 |
|
|
15,463 |
|
||
Net sales |
|
97,415 |
|
|
65,943 |
|
||
Cost of sales: |
|
|
||||||
Product |
|
62,214 |
|
|
39,943 |
|
||
Service |
|
12,106 |
|
|
10,696 |
|
||
Cost of sales |
|
74,320 |
|
|
50,639 |
|
||
Gross profit |
|
23,095 |
|
|
15,304 |
|
||
Operating expenses: |
|
|
||||||
Sales and marketing expense |
|
9,218 |
|
|
7,354 |
|
||
General and administrative expenses |
|
9,430 |
|
|
7,552 |
|
||
Total operating expenses |
|
18,648 |
|
|
14,906 |
|
||
Operating income |
|
4,447 |
|
|
398 |
|
||
Interest expense |
|
(56 |
) |
|
(79 |
) |
||
Gain on extinguishment of debt |
|
— |
|
|
1,211 |
|
||
Other expense |
|
(15 |
) |
|
— |
|
||
Income before income taxes |
|
4,376 |
|
|
1,530 |
|
||
Income tax expense |
|
(1,265 |
) |
|
(116 |
) |
||
Net income and comprehensive income attributable to common stockholders |
$ |
3,111 |
|
$ |
1,414 |
|
||
Earnings per share attributable to stockholders: |
|
|
||||||
Basic |
$ |
0.43 |
|
$ |
0.20 |
|
||
Diluted |
$ |
0.41 |
|
$ |
0.19 |
|
||
Weighted average common shares outstanding |
|
|
||||||
Basic |
|
7,261 |
|
|
6,947 |
|
||
Diluted |
|
7,562 |
|
|
7,593 |
|
||
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
Years Ended
|
|||||||
|
2022 |
2021 |
||||||
Cash flows from operating activities |
|
|
||||||
Net income |
$ |
3,111 |
|
|
$ |
1,414 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|||||
Depreciation and amortization |
|
2,465 |
|
|
|
1,387 |
|
|
Amortization of deferred financing costs and note discount |
|
- |
|
|
|
24 |
|
|
Loss on fixed asset disposal |
|
22 |
|
|
|
- |
|
|
Share-based compensation expense |
|
577 |
|
|
|
1,003 |
|
|
Acquisition earn-out adjustment |
|
- |
|
|
|
(187 |
) |
|
Gain on extinguishment of debt |
|
- |
|
|
|
(1,211 |
) |
|
Deferred income taxes, net |
|
254 |
|
|
|
(26 |
) |
|
Provision for doubtful accounts |
|
249 |
|
|
|
- |
|
|
Changes in operating assets and liabilities: |
|
|
|
|||||
Accounts receivable |
|
(3,630 |
) |
|
|
4,136 |
|
|
Inventory, net |
|
(2,177 |
) |
|
|
(1,227 |
) |
|
Deferred costs |
|
(1,984 |
) |
|
|
351 |
|
|
Prepaid expenses and other current assets |
|
(54 |
) |
|
|
(294 |
) |
|
Other assets, net |
|
- |
|
|
|
(28 |
) |
|
Accounts payable |
|
8,924 |
|
|
|
(2,579 |
) |
|
Accrued expenses and other current liabilities |
|
914 |
|
|
|
278 |
|
|
Due to related parties |
|
- |
|
|
|
(34 |
) |
|
Operating lease liabilities |
|
543 |
|
|
|
(7 |
) |
|
Deferred revenue |
|
3,095 |
|
|
|
(648 |
) |
|
Net cash provided by operating activities |
|
12,309 |
|
|
|
2,352 |
|
|
Cash flows from investing activities |
|
|
|
|||||
Purchases of property and equipment |
|
(1,477 |
) |
|
|
(371 |
) |
|
Cash paid for acquisitions, net of cash acquired |
|
(4,525 |
) |
|
|
(170 |
) |
|
Net cash used in investing activities |
|
(6,002 |
) |
|
|
(541 |
) |
|
Cash flows from financing activities |
|
|
|
|||||
Repayment of term debt |
|
(3 |
) |
|
|
— |
|
|
Line of credit, net |
|
— |
|
|
|
(1,206 |
) |
|
Taxes paid in lieu of shares issued for share-based compensation |
|
(1,403 |
) |
|
|
(25 |
) |
|
Proceeds from exercise of stock options |
|
154 |
|
|
|
2 |
|
|
Net cash used in financing activities |
|
(1,252 |
) |
|
|
(1,229 |
) |
|
Change in cash |
|
5,055 |
|
|
|
582 |
|
|
Cash, beginning of year |
|
2,587 |
|
|
|
2,005 |
|
|
Cash, end of year |
$ |
7,642 |
|
|
$ |
2,587 |
|
|
Trended Financial Information
Trended Financial Information* |
|||||||||||||||||||||||||||||||
| (in $M except for EPS) |
|
1Q21 |
|
|
2Q21 |
|
|
3Q21 |
|
|
4Q21 |
|
|
1Q22 |
|
|
2Q22 |
|
|
3Q22 |
|
|
4Q22 |
|
|
FY21 |
|
FY22 |
|
||
| Total Revenue | $ |
16.1 |
$ |
15.2 |
$ |
18.2 |
$ |
16.5 |
|
$ |
19.7 |
$ |
27.5 |
$ |
25.7 |
$ |
24.5 |
$ |
65.9 |
$ |
97.4 |
||||||||||
| Hardware Revenue | $ |
10.5 |
$ |
10.3 |
$ |
12.7 |
$ |
10.9 |
|
$ |
14.3 |
$ |
20.6 |
$ |
19.2 |
$ |
17.7 |
$ |
44.4 |
$ |
71.8 |
||||||||||
| Software and Services Revenue | $ |
4.1 |
$ |
3.6 |
$ |
3.9 |
$ |
3.9 |
|
$ |
4.1 |
$ |
4.8 |
$ |
4.7 |
$ |
4.7 |
$ |
15.5 |
$ |
18.3 |
||||||||||
| Consumables Revenue | $ |
1.5 |
$ |
1.3 |
$ |
1.6 |
$ |
1.7 |
|
$ |
1.3 |
$ |
2.1 |
$ |
1.8 |
$ |
2.1 |
$ |
6.1 |
$ |
7.3 |
||||||||||
| Gross Profit | $ |
3.8 |
$ |
3.5 |
$ |
4.2 |
$ |
3.8 |
|
$ |
4.7 |
$ |
6.3 |
$ |
5.8 |
$ |
6.3 |
$ |
15.3 |
$ |
23.1 |
||||||||||
| Operating (loss) Income | $ |
0.3 |
$ |
0.1 |
$ |
0.9 |
$ |
(0.9 |
) |
$ |
0.2 |
$ |
2.0 |
$ |
1.5 |
$ |
0.7 |
$ |
0.4 |
$ |
4.4 |
||||||||||
| Net (loss) Income | $ |
1.3 |
$ |
0.2 |
$ |
0.6 |
$ |
(0.7 |
) |
$ |
0.9 |
$ |
0.7 |
$ |
1.1 |
$ |
0.4 |
$ |
1.4 |
$ |
3.1 |
||||||||||
| Diluted EPS | $ |
0.17 |
$ |
0.02 |
$ |
0.04 |
$ |
(0.04 |
) |
$ |
0.11 |
$ |
0.09 |
$ |
0.15 |
$ |
0.07 |
$ |
0.19 |
$ |
0.41 |
||||||||||
| Non-GAAP Net Income | $ |
0.2 |
$ |
0.3 |
$ |
0.7 |
$ |
0.4 |
|
$ |
1.3 |
$ |
0.8 |
$ |
1.2 |
$ |
0.7 |
$ |
1.5 |
$ |
4.1 |
||||||||||
| Non-GAAP Diluted EPS | $ |
0.03 |
$ |
0.04 |
$ |
0.10 |
$ |
0.04 |
|
$ |
0.16 |
$ |
0.11 |
$ |
0.16 |
$ |
0.10 |
$ |
0.20 |
$ |
0.54 |
||||||||||
| djusted EBITDA | $ |
0.8 |
$ |
0.6 |
$ |
1.3 |
$ |
0.5 |
|
$ |
1.1 |
$ |
2.7 |
$ |
2.3 |
$ |
1.8 |
$ |
3.1 |
$ |
7.8 |
||||||||||
| *numbers may not add due to rounding | |||||||||||||||||||||||||||||||
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 |
Twelve Months Ended |
|||||||||||||
|
|
|||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||
Net income, as reported |
$ |
427 |
$ |
(701 |
) |
$ |
3,111 |
$ |
1,414 |
|
||||
Share-based compensation |
|
251 |
|
894 |
|
|
577 |
|
1,003 |
|
||||
Business acquisition costs |
|
39 |
|
176 |
|
|
281 |
|
306 |
|
||||
NYSE American uplisting costs |
|
88 |
|
- |
|
|
88 |
|
23 |
|
||||
Gain on extinguishment of debt |
|
- |
|
- |
|
|
- |
|
(1,211 |
) |
||||
Non-GAAP net income |
$ |
805 |
$ |
369 |
|
$ |
4,057 |
$ |
1,535 |
|
||||
Depreciation and amortization |
|
715 |
|
356 |
|
|
2,465 |
|
1,387 |
|
||||
Income taxes |
|
257 |
|
(232 |
) |
|
1,265 |
|
116 |
|
||||
Interest expense |
|
14 |
|
12 |
|
|
56 |
|
79 |
|
||||
Adjusted EBITDA |
$ |
1,791 |
$ |
505 |
|
$ |
7,843 |
$ |
3,117 |
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230329005387/en/
Investor Relations Contact:
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(346) 396-8696
Brian@haydenir.com
Source:
FAQ
What were the fourth quarter results for DecisionPoint Systems (DPSI) in 2022?
How did DecisionPoint Systems (DPSI) perform financially in full-year 2022?
What guidance did DecisionPoint Systems (DPSI) provide for Q1 2023?
What was the adjusted EBITDA for DecisionPoint Systems (DPSI) in 2022?
What strategic plans does DecisionPoint Systems (DPSI) have for 2023?
