Flux Power Reports Fiscal Third Quarter 2022 Financial Results
Flux Power Holdings, Inc. (NASDAQ: FLUX) reported a remarkable 89% increase in revenue to $13.2 million for Q3 fiscal 2022, marking its 15th consecutive quarter of year-over-year growth. The company secured $20.5 million in new purchase orders, raising its customer order backlog to a record $38.6 million. Despite these accomplishments, gross margin decreased to 14.6% due to rising material costs, leading to a net loss of $3.7 million. Flux Power remains focused on strategic supply chain improvements to enhance profitability and reduce cash burn.
- Revenue increased by 89% to $13.2 million.
- Achieved 15 consecutive quarters of year-over-year revenue growth.
- Received $20.5 million in new customer purchase orders.
- Record customer order backlog of $38.6 million.
- Improved inventory turns from 2.0x to 2.5x.
- Gross margin fell to 14.6% from 24.1% due to higher costs.
- Net loss increased to $3.7 million from $1.7 million.
- Selling and administrative expenses rose to $3.9 million.
Third Quarter 2022 Revenue Increased
Received
Strategic Initiatives Drive Increased Backlog Conversion, Higher Inventory Turns & Improved Gross Margins Resulting in Progress to Profitability
Management to Host Conference Call Today at
Key Financial & Operational Highlights for the Third Quarter Fiscal Year 2022
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Revenue increased
89% to$13.2 million $7.0 million - Achieved 15th consecutive quarter of year-over-year revenue growth.
-
Received
$20.5 million -
Customer order backlog increased to
$38.6 million March 31, 2022 . -
Introduced three new products in
March 2022 at MODEX material handling trade show:- L36 lithium-ion battery pack, a 36-volt option for 3-wheel forklifts;
- C48 lithium-ion battery pack for Automated Guided Vehicles (AGV) and Autonomous Mobile Robots (AMR); and
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S24 lithium-ion battery pack providing twice the capacity (210Ah) for
Walkie Pallet Jacks for heavy duty applications
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Appointed Cheemin Bo-Linn, a global technology industry veteran, to the Board of Directors as an independent director, as a member of the Audit Committee, Compensation Committee, and as Chair of the
Nominating and Governance Committee . Ms. Bo-Linn’s appointment as an independent director increases the total number of board members to five, with three independent directors. -
Implementing Strategic Supply Chain & Profitability Improvement Initiatives to accelerate the path to cash flow breakeven, including:
- Identifying more competitive carriers to reduce shipping costs;
- Utilizing lower cost steel suppliers that meet required specifications;
- Improving manufacturing capacity and production processes (including implementing Lean Manufacturing) to increase throughput, reduce the time to fulfill customer orders and improve gross margins;
- Increasing inventory turns from 2.0x to 2.5x during the quarter;
- Introducing new product designs to lower costs, simplify part count and cost, and improve serviceability;
- Expanded customer base, particularly among Fortune 500 companies.
CEO Commentary
“The third quarter of fiscal year 2022 produced a record revenue of
“Ongoing customer demand produced
“During the third quarter, we introduced new product designs to respond to customer requests. Some of the improvements included higher capacities for extra-long and demanding shifts, easier servicing, lower total cost of ownership, and other features to solve a variety of existing performance challenges of customer operations. We continue to introduce new product designs for margin enhancement, part commonality and improved serviceability.
“With ongoing global supply chain disruptions, we have been improving production process improvements and better supply chain management. We are now working to leverage increased pack volumes to re-source steel and board components to low cost regions and to high volume local suppliers; and also identify more competitive carriers to reduce shipping costs. We plan to ship backlog and reduce inventory levels; as of the end of the third quarter, inventory levels had not yet decreased materially, but we anticipate reductions in the current quarter as we get traction on our plan.
“Looking ahead, we continue to focus on expanding sales of our energy storage solutions to new and existing customers who want the benefits of lithium-ion technology. We continue to see customer interest in our SkyBMS Telematics product for remote fleet management and monitoring.
“Combined with our strong purchase orders, record backlog and improving margins, we believe our growth trajectory in 2022 is on track for another record revenue year despite supply chain disruptions. I look forward to providing additional updates in the months to come,” stated Dutt.
Third Quarter Fiscal Year 2022 Financial Results
-
Revenue for the fiscal third quarter of 2022 increased by
89% to$13.2 million $7.0 million -
Gross profit for the fiscal third quarter of 2022 increased to
$1.9 million $1.7 million 14.6% in the fiscal third quarter of 2022 as compared to24.1% in the fiscal third quarter of 2021, impacted by higher costs for steel, electronic parts, and common off the shelf parts during the quarter, not yet offset by pricing increases which were implemented after commitment to quotes and orders. -
Selling & Administrative expenses increased to
$3.9 million $3.1 million -
Research & Development expenses increased to
$1.7 million $1.5 million -
Net loss for the fiscal third quarter of 2022 increased to
$3.7 million $1.7 million -
Cash was
$3.8 million March 31, 2022 , as compared to$4.7 million June 30, 2021 . Our working capital line of credit outstanding balance was$3.5 million March 31, 2022 . Cash requirements during the quarter were higher due to the pre-purchase of inventory to support increasing sales orders.
Financial Management Commentary
“Customer demand was strong during the fiscal third quarter, reflected in our record revenue which increased by
“We are implementing these initiatives to reduce our cash burn and improve gross margins, all serving to offset any continuation in supply chain disruption. An additional positive development includes a
Third Quarter Fiscal Year 2022 Results Conference Call
To access the call, please use the following information:
Date: |
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Time: |
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Toll-free dial-in number: |
1-877-407-4018 |
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International dial-in number: |
1-201-689-8471 |
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Conference ID: |
13728937 |
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact
The conference call will be broadcast live and available for replay at https://viavid.webcasts.com/starthere.jsp?ei=1542868&tp_key=96dad790ed and via the investor relations section of the Company's website here.
A replay of the webcast will be available after
Toll-free replay number: |
1-844-512-2921 |
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International replay number: |
1-412-317-6671 |
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Replay ID: |
13728937 |
About
Forward-Looking Statements
This release contains projections and other "forward-looking statements" relating to Flux Power’s business, that are often identified using "believes," "expects" or similar expressions. Forward-looking statements involve several estimates, assumptions, risks, and other uncertainties that may cause actual results to be materially different from those anticipated, believed, estimated, expected, etc. Such forward-looking statements include impact of COVID-19 on Flux Power’s business, results and financial condition; Flux Power’s ability to obtain raw materials and other supplies for its products at competitive prices and on a timely basis, particularly in light of the potential impact of the COVID-19 pandemic on its suppliers and supply chain; the development and success of new products, projected sales, deferral of shipments, Flux Power’s ability to fulfill backlog orders or realize profit from the contracts reflected in backlog sale; Flux Power’s ability to fulfill backlog orders due to changes in orders reflected in backlog sales, Flux Power’s ability to obtain the necessary funds under the credit facilities, Flux Power’s ability to timely obtain UL Listing for its products, Flux Power’s ability to fund its operations, distribution partnerships and business opportunities and the uncertainties of customer acceptance and purchase of current and new products, and Flux Power’s ability to negotiate and enter into a definitive agreement in connection with the Letter of Intent. Actual results could differ from those projected due to numerous factors and uncertainties. Although
Flux,
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash |
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$ |
3,804,000 |
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$ |
4,713,000 |
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Accounts receivable |
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9,508,000 |
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6,097,000 |
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Inventories, net |
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20,934,000 |
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10,513,000 |
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Other current assets |
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577,000 |
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417,000 |
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Total current assets |
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34,823,000 |
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21,740,000 |
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Right of use asset |
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2,711,000 |
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3,035,000 |
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Property, plant and equipment, net |
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1,588,000 |
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1,356,000 |
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Other assets |
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89,000 |
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131,000 |
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Total assets |
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$ |
39,211,000 |
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$ |
26,262,000 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
13,361,000 |
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$ |
7,175,000 |
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Accrued expenses |
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2,142,000 |
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2,583,000 |
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Line of credit |
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3,500,000 |
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- |
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Deferred revenue |
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313,000 |
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24,000 |
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Customer deposits |
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690,000 |
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171,000 |
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Office lease payable, current portion |
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486,000 |
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435,000 |
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Accrued interest |
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2,000 |
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2,000 |
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Total current liabilities |
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20,494,000 |
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10,390,000 |
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Office lease payable, less current portion |
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2,493,000 |
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2,866,000 |
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Total liabilities |
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22,987,000 |
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13,256,000 |
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Stockholders’ equity: |
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Preferred stock, |
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- |
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- |
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Common stock, |
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16,000 |
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14,000 |
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Additional paid-in capital |
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95,369,000 |
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79,197,000 |
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Accumulated deficit |
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(79,161,000 |
) |
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(66,205,000 |
) |
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Total stockholders’ equity |
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16,224,000 |
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13,006,000 |
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Total liabilities and stockholders’ equity |
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$ |
39,211,000 |
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$ |
26,262,000 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
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Three Months Ended
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Nine Months Ended
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2022 |
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2021 |
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2022 |
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2021 |
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Revenues |
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$ |
13,177,000 |
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$ |
6,964,000 |
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$ |
27,138,000 |
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$ |
17,932,000 |
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Cost of sales |
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11,257,000 |
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5,287,000 |
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22,838,000 |
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13,893,000 |
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Gross profit |
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1,920,000 |
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1,677,000 |
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4,300,000 |
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4,039,000 |
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Operating expenses: |
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Selling and administrative |
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3,904,000 |
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3,122,000 |
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11,402,000 |
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9,177,000 |
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Research and development |
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1,713,000 |
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1,523,000 |
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5,768,000 |
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4,624,000 |
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Total operating expenses |
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5,617,000 |
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4,645,000 |
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17,170,000 |
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13,801,000 |
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Operating loss |
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(3,697,000 |
) |
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(2,968,000 |
) |
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(12,870,000 |
) |
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(9,762,000 |
) |
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Other income (expense): |
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Other income |
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- |
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1,307,000 |
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- |
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1,307,000 |
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Interest expense |
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(52,000 |
) |
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(64,000 |
) |
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(86,000 |
) |
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(618,000 |
) |
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Net loss |
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$ |
(3,749,000 |
) |
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$ |
(1,725,000 |
) |
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$ |
(12,956,000 |
) |
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$ |
(9,073,000 |
) |
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Net loss per share - basic and diluted |
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$ |
(0.23 |
) |
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$ |
(0.14 |
) |
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$ |
(0.85 |
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$ |
(0.80 |
) |
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Weighted average number of common shares outstanding - basic and diluted |
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15,988,926 |
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12,499,870 |
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15,254,983 |
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11,300,229 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005909/en/
Media & Investor Relations:
877-505-3589
info@fluxpower.com
External Investor Relations:
949-491-8235
FLUX@mzgroup.us
www.mzgroup.us
Source:
FAQ
What were Flux Power's revenue figures for Q3 fiscal 2022?
How much in new purchase orders did Flux Power receive in Q3 2022?
What is the current order backlog for Flux Power?
What was the net loss reported by Flux Power for Q3 2022?
How did Flux Power's gross margin change in Q3 2022?
