iPower Reports Fiscal Fourth Quarter and Full Year 2023 Results
- Fiscal 2023 revenue increased by 12%
- Cash flow from operations improved to $9.2 million
- Gross profit increased by 5%
- Net loss of $12.0 million
- Total debt reduced to $11.8 million
- Fiscal 2023 Revenue up
- iPower Management to Host Conference Call Today at 4:30 p.m. Eastern Time -
DUARTE, Calif, Sept. 14, 2023 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services, today announced financial results for its fiscal fourth quarter and full fiscal year ended June 30, 2023.
Fiscal Q4 2023 Results vs. Year-Ago Quarter
- Total revenue increased
6% to$23.4 million as compared to$22.1 million . - Gross profit remained flat at
$9.1 million , with gross margin of38.7% as compared to41.2% . - Net loss attributable to iPower was
$3.0 million or$(0.10) per share, as compared to net loss of$1.3 million or$(0.05) per share. - As of June 30, 2023, net debt (total debt less cash) was reduced by
43% to$8.1 million as compared to net debt of$14.2 million as of June 30, 2022.
Fiscal 2023 Results vs. Fiscal 2022
- Total revenue increased
12% to$88.9 million as compared to$79.4 million . - Gross profit increased
5% to$34.8 million as compared to$33.2 million , with gross margin of39.1% compared to41.8% . - Net loss attributable to iPower was
$12.0 million or$(0.40) per share, as compared to net income of$1.5 million or$0.06 per share. The fiscal 2023 period includes approximately$3 million related to a goodwill impairment incurred earlier in the fiscal year. - Cash flow from operations improved significantly to
$9.2 million as compared to cash used of$16.6 million .
Management Commentary
“Fiscal 2023 marked our third consecutive year of double-digit revenue growth driven by consistent, strong demand for our in-house products and continued expansion of our non-hydroponic portfolio,” said Lawrence Tan, CEO of iPower. “Throughout the fiscal year, we emphasized in-house products sales which accounted for over
iPower CFO, Kevin Vassily, added, “During the year, we continued to work through high-cost inventory buildup from prior periods, which has weighed on our gross margin in recent quarters. However, we have now sold through most of the excess inventory and expect gross margin to improve in fiscal 2024. With an improved supply chain, normalized inventory levels and continued demand for our in-house products, we believe that we are well positioned to execute on our growth and profitability objectives in fiscal 2024.”
Fiscal Fourth Quarter 2023 Financial Results
Total revenue in the fiscal fourth quarter of 2023 increased
Gross profit in the fiscal fourth quarter of 2023 remained flat at
Total operating expenses in the fiscal fourth quarter of 2023 were
Net loss attributable to iPower in the fiscal fourth quarter of 2023 was
Cash and cash equivalents were
Conference Call
The Company will hold a conference call today, September 14, 2023, at 4:30 p.m. Eastern Time to discuss the results for its fiscal fourth quarter and full fiscal year ended June 30, 2023.
iPower’s management will host the conference call, which will be followed by a question-and-answer session.
The conference call details are as follows:
Date: Thursday, September 14, 2023
Time: 4:30 p.m. Eastern Time
Dial-in registration link: here
Live webcast registration link: here
Please dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at IPW@elevate-ir.com.
The conference call will also be broadcast live and available for replay in the Events & Presentations section of the Company’s website at www.meetipower.com.
About iPower Inc.
iPower Inc. is a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services for third-party products and brands. iPower offers thousands of stock keeping units from its in-house brands as well as hundreds of other brands through its ecommerce channel partners and its websites, www.zenhydro.com and www.simpledeluxe.com. iPower has a diverse customer base that includes both commercial businesses and individuals. For more information, please visit iPower's website at www.meetipower.com.
Forward-Looking Statements
All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that iPower believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. iPower undertakes no obligation to update forward-looking statements to reflect subsequent events or circumstances, or changes in its expectations, except as may be required by law. Although iPower believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and iPower cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results and performance in iPower's Annual Report on Form 10-K, as filed with the SEC on September 14, 2023, and in its other SEC filings.
Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
IPW@elevate-ir.com
iPower Inc. and Subsidiaries | |||||||
Consolidated Balance Sheets | |||||||
As of June 30, 2023 and 2022 | |||||||
June 30, | June 30, | ||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalent | $ | 3,735,642 | $ | 1,821,947 | |||
Accounts receivable, net | 14,071,543 | 17,432,287 | |||||
Inventories, net | 20,593,889 | 30,433,766 | |||||
Other receivable - related party | - | 51,762 | |||||
Prepayments and other current assets | 2,858,196 | 5,444,463 | |||||
Total current assets | 41,259,270 | 55,184,225 | |||||
Non-current assets | |||||||
Right of use - non-current | 7,837,345 | 10,453,282 | |||||
Property and equipment, net | 536,418 | 544,633 | |||||
Deferred tax assets | 2,155,250 | - | |||||
Non-current prepayments | 531,456 | 925,624 | |||||
Goodwill | 3,034,110 | 6,094,144 | |||||
Investment in joint venture | 33,113 | 43,385 | |||||
Intangible assets, net | 4,280,071 | 4,929,442 | |||||
Other non-current assets | 427,254 | 406,732 | |||||
Total non-current assets | 18,835,017 | 23,397,242 | |||||
Total assets | $ | 60,094,287 | $ | 78,581,467 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable | 13,244,957 | 9,533,408 | |||||
Credit cards payble | 366,781 | 807,687 | |||||
Customer deposit | 350,595 | 273,457 | |||||
Other payables and accrued liabilities | 4,831,067 | 5,915,220 | |||||
Advance from shareholders | 85,200 | 92,246 | |||||
Investment payable | - | 1,500,000 | |||||
Lease liability - current | 2,159,173 | 2,582,933 | |||||
Long-term promissory note payable - current portion | 2,017,852 | 1,879,065 | |||||
Income taxes payable | 276,683 | 299,563 | |||||
Total current liabilities | 23,332,308 | 22,883,579 | |||||
Non-current liabilities | |||||||
Long-term revolving loan payable, net | 9,791,191 | 12,314,627 | |||||
Long-term promissory note payable, net | - | 1,781,705 | |||||
Deferred tax liabilities | - | 939,115 | |||||
Lease liability - non-current | 6,106,047 | 8,265,611 | |||||
Total non-current liabilities | 15,897,238 | 23,301,058 | |||||
Total liabilities | 39,229,546 | 46,184,637 | |||||
Commitments and contingency | - | - | |||||
Stockholders' Equity | |||||||
Preferred stock, | - | - | |||||
Common stock, | 29,712 | 29,573 | |||||
Additional paid in capital | 29,624,520 | 29,111,863 | |||||
(Accumulated deficits) Retained earnings | (8,702,442 | ) | 3,262,948 | ||||
Non-controlling interest | (24,915 | ) | (13,232 | ) | |||
Accumulated other comprehensive income (loss) | (62,134 | ) | 5,678 | ||||
Total equity | 20,864,741 | 32,396,830 | |||||
Total liabilities and equity | $ | 60,094,287 | $ | 78,581,467 |
iPower Inc. and Subsidiaries | |||||||||||||||
Consolidated Statements of Operations | |||||||||||||||
For the Years Ended June 30, 2023 and 2022 | |||||||||||||||
For the Three Months Ended June 30, | For the Years Ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||
REVENUES | $ | 23,399,166 | $ | 22,117,831 | $ | 88,902,048 | $ | 79,418,473 | |||||||
TOTAL REVENUES | 23,399,166 | 22,117,831 | 88,902,048 | 79,418,473 | |||||||||||
COST OF REVENUES | 14,348,668 | 12,998,903 | 54,104,587 | 46,218,580 | |||||||||||
GROSS PROFIT | 9,050,498 | 9,118,928 | 34,797,461 | 33,199,893 | |||||||||||
OPERATING EXPENSES: | |||||||||||||||
Selling and fulfillment | 8,133,299 | 6,842,363 | 32,427,972 | 19,180,390 | |||||||||||
General and administrative | 3,913,672 | 3,767,117 | 12,792,998 | 11,707,466 | |||||||||||
Impairment loss - goodwill | - | - | 3,060,034 | - | |||||||||||
Total operating expenses | 12,046,971 | 10,609,480 | 48,281,004 | 30,887,856 | |||||||||||
(LOSS) INCOME FROM OPERATIONS | (2,996,473 | ) | (1,490,552 | ) | (13,483,543 | ) | 2,312,037 | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest expenses | (265,497 | ) | (231,017 | ) | (1,066,280 | ) | (458,159 | ) | |||||||
Other financing expenses | - | - | - | (80,010 | ) | ||||||||||
Loss on equity method investment | (1,376 | ) | 5,673 | (10,001 | ) | (6,616 | ) | ||||||||
Other non-operating income | (306,874 | ) | 210,893 | (107,749 | ) | 296,366 | |||||||||
Total other expenses, net | (573,747 | ) | (14,451 | ) | (1,184,030 | ) | (248,419 | ) | |||||||
(LOSS) INCOME BEFORE INCOME TAXES | (3,570,220 | ) | (1,505,003 | ) | (14,667,573 | ) | 2,063,618 | ||||||||
PROVISION FOR INCOME TAX (BENEFIT) EXPENSE | (605,374 | ) | (146,570 | ) | (2,690,500 | ) | 558,975 | ||||||||
NET (LOSS) INCOME | (2,964,846 | ) | (1,358,433 | ) | (11,977,073 | ) | 1,504,643 | ||||||||
Non-controlling interest | (2,805 | ) | (9,162 | ) | (11,683 | ) | (13,232 | ) | |||||||
NET (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. | $ | (2,962,041 | ) | $ | (1,349,271 | ) | $ | (11,965,390 | ) | $ | 1,517,875 | ||||
OTHER COMPREHENSIVE LOSS | |||||||||||||||
Foreign currency translation adjustments | (21,090 | ) | 8,904 | (67,812 | ) | 5,678 | |||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. | $ | (2,983,131 | ) | $ | (1,340,367 | ) | $ | (12,033,202 | ) | $ | 1,523,553 | ||||
WEIGHTED AVERAGE NUMBER OF COMMON STOCK | |||||||||||||||
Basic | 29,747,497 | 29,662,448 | 29,713,354 | 27,781,493 | |||||||||||
Diluted | 29,747,497 | 29,662,448 | 29,713,354 | 27,781,493 | |||||||||||
(LOSSES) EARNINGS PER SHARE | |||||||||||||||
Basic | $ | (0.100 | ) | $ | (0.045 | ) | $ | (0.403 | ) | $ | 0.055 | ||||
Diluted | $ | (0.100 | ) | $ | (0.045 | ) | $ | (0.403 | ) | $ | 0.055 |