iPower Reports Fiscal Second Quarter 2023 Results
iPower Inc. (Nasdaq:IPW) reported a 12% increase in fiscal Q2 revenue, reaching $19.3 million, compared to $17.1 million in the prior year. Gross profit rose 5% to $8.0 million, though gross margin declined to 41.4% from 44.1%, impacted by higher freight costs. The company faced a net loss of $3.3 million or $(0.11) per share, a drop from a net income of $0.8 million or $(0.03) per share last year. iPower reduced its net debt by 42% to $8.2 million, aided by improved working capital and debt paydown. The company aims to streamline operations and expects to see lower operating expenses moving forward.
- Fiscal Q2 revenue increased 12% to $19.3 million.
- Gross profit rose 5% to $8.0 million.
- Net debt reduced by 42% to $8.2 million.
- Net loss of $3.3 million compared to net income of $0.8 million last year.
- Gross margin decreased to 41.4% from 44.1% due to higher freight charges.
- Total operating expenses increased significantly to $12.1 million from $6.4 million.
- Fiscal Q2 Revenue up
- iPower Management to Host Conference Call Today at 4:30 p.m. Eastern Time -
DUARTE, Calif., Feb. 14, 2023 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq:IPW) (“iPower” or the “Company”), a leading online retailer and supplier of consumer home and garden products, today announced financial results for its fiscal second quarter ended December 31, 2022.
Fiscal Q2 2023 Results vs. Year-Ago Quarter (unless otherwise noted)
- Total revenue increased
12% to$19.3 million . - Gross profit increased
5% to$8.0 million , with gross margin of41.4% compared to44.1% . - Net loss attributable to iPower was
$3.3 million or$(0.11) per share, compared to net income of$0.8 million or$0.03 per share. - As of December 31, 2022, net debt (total debt less cash) was reduced by
42% to$8.2 million compared to net debt of$14.2 million as of June 30, 2022.
Management Commentary
“We generated double-digit revenue growth during our fiscal second quarter as we strategically leaned into sales and marketing to offload excess inventory that had built up in recent quarters,” said Lawrence Tan, CEO of iPower. “During the fiscal second quarter, our in-house products accounted for the majority of our revenue mix, demonstrating the consistent, strong demand for iPower’s products. We anticipate our continued investment in product development will ensure our product catalog is stocked with market-leading offerings to drive future growth and profitability.”
iPower CFO Kevin Vassily added, “Toward the end of the calendar year, the supply chain environment began to stabilize with freight and shipping costs returning to pre-covid levels. With an improved supply chain, we made the strategic decision to increase our marketing spend to significantly reduce our inventory. This ongoing effort will enable us to eliminate extra warehousing space and the higher cost associated with it. We expect these actions, coupled with continued revenue growth, will drive improvements to our bottom line in the quarters ahead.”
Fiscal Second Quarter 2023 Financial Results
Total revenue in the fiscal second quarter of 2023 increased
Gross profit in the fiscal second quarter of 2023 increased
Total operating expenses in the fiscal second quarter were
Net loss attributable to iPower in the fiscal second quarter of 2023 was
Cash and cash equivalents were
Conference Call
The Company will conduct a conference call at 4:30 p.m. Eastern time on Tuesday, February 14, 2023, to discuss the results for its fiscal second quarter ended December 31, 2022.
iPower management will host the conference call, followed by a question-and-answer period. The conference call details are as follows:
Date: Tuesday, February 14, 2023
Time: 4:30 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: here
Please call the conference call dial-in 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 Elevate IR at (720) 330-2829.
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 leading online retailer and supplier of consumer home and garden products. 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 website, www.zenhydro.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 announcement 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 28, 2022, iPower’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2022, and in its other filings with the SEC.
Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
IPW@elevate-ir.com
| iPower Inc. and Subsidiaries | |||||||||||
| Unaudited Condensed Consolidated Balance Sheets | |||||||||||
| As of December 31, 2022 and June 30, 2022 | |||||||||||
| December 31, | June 30, | ||||||||||
| 2022 | 2022 | ||||||||||
| (Unaudited) | |||||||||||
| ASSETS | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalent | $ | 3,997,125 | $ | 1,821,947 | |||||||
| Accounts receivable, net | 11,646,757 | 17,432,287 | |||||||||
| Inventories, net | 23,258,161 | 30,433,766 | |||||||||
| Other receivable - related party | 39,853 | 51,762 | |||||||||
| Prepayments and other current assets | 3,714,473 | 5,444,463 | |||||||||
| Total current assets | 42,656,369 | 55,184,225 | |||||||||
| Non-current assets | |||||||||||
| Right of use - non-current | 9,161,836 | 10,453,282 | |||||||||
| Property and equipment, net | 603,518 | 544,633 | |||||||||
| Deferred tax assets | 849,579 | - | |||||||||
| Non-current prepayments | 709,790 | 925,624 | |||||||||
| Goodwill | 3,034,110 | 6,094,144 | |||||||||
| Investment in joint venture | 36,057 | 43,385 | |||||||||
| Intangible assets, net | 4,604,756 | 4,929,442 | |||||||||
| Other non-current assets | 401,312 | 406,732 | |||||||||
| Total non-current assets | 19,400,958 | 23,397,242 | |||||||||
| Total assets | $ | 62,057,327 | $ | 78,581,467 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | 12,109,715 | 9,533,408 | |||||||||
| Credit cards payble | 223,039 | 807,687 | |||||||||
| Customer deposit | 368,717 | 273,457 | |||||||||
| Other payables and accrued liabilities | 2,070,567 | 5,915,220 | |||||||||
| Advance from shareholders | 89,592 | 92,246 | |||||||||
| Investment payable | - | 1,500,000 | |||||||||
| Lease liability - current | 2,563,468 | 2,582,933 | |||||||||
| Long-term promissory note payable - current portion | 1,977,502 | 1,879,065 | |||||||||
| Income taxes payable | 290,946 | 299,563 | |||||||||
| Total current liabilities | 19,693,546 | 22,883,579 | |||||||||
| Non-current liabilities | |||||||||||
| Long-term revolving loan payable, net | 9,334,819 | 12,314,627 | |||||||||
| Long-term promissory note payable, net | 881,445 | 1,781,705 | |||||||||
| Deferred tax liabilities | - | 939,115 | |||||||||
| Lease liability - non-current | 7,023,320 | 8,265,611 | |||||||||
| Total non-current liabilities | 17,239,584 | 23,301,058 | |||||||||
| Total liabilities | 36,933,130 | 46,184,637 | |||||||||
| Commitments and contingency | - | - | |||||||||
| Stockholders' Equity | |||||||||||
| Preferred stock, | |||||||||||
| outstanding at December 31, 2022 and 2021 | - | - | |||||||||
| Common stock, | |||||||||||
| 29,572,382 shares issued and outstanding at December 31, 2022 and June 30, 2022 | 29,573 | 29,573 | |||||||||
| Additional paid in capital | 29,382,011 | 29,111,863 | |||||||||
| (Accumulated deficits) Retained earnings | (4,209,867 | ) | 3,262,948 | ||||||||
| Non-controlling interest | (18,872 | ) | (13,232 | ) | |||||||
| Accumulated other comprehensive income (loss) | (58,648 | ) | 5,678 | ||||||||
| Total equity | 25,124,197 | 32,396,830 | |||||||||
| Total liabilities and equity | $ | 62,057,327 | $ | 78,581,467 | |||||||
| iPower Inc. and Subsidiaries | ||||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||||
| For the Three and Six Months Ended December 31, 2022 and 2021 | ||||||||||||||||||
| For the Three Months Ended December 31, | For the Six Months Ended December 31, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| REVENUES | $ | 19,254,590 | $ | 17,125,663 | $ | 45,277,263 | $ | 34,492,428 | ||||||||||
| TOTAL REVENUES | 19,254,590 | 17,125,663 | 45,277,263 | 34,492,428 | ||||||||||||||
| COST OF REVENUES | 11,285,064 | 9,568,051 | 27,322,021 | 19,621,114 | ||||||||||||||
| GROSS PROFIT | 7,969,526 | 7,557,612 | 17,955,242 | 14,871,314 | ||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||
| Selling and fulfillment | 9,338,737 | 3,641,839 | 17,757,549 | 7,307,760 | ||||||||||||||
| General and administrative | 2,713,355 | 2,780,488 | 5,813,531 | 5,137,954 | ||||||||||||||
| Impairment loss - goodwill | - | - | 3,060,034 | - | ||||||||||||||
| Total operating expenses | 12,052,092 | 6,422,327 | 26,631,114 | 12,445,714 | ||||||||||||||
| (LOSS) INCOME FROM OPERATIONS | (4,082,566 | ) | 1,135,285 | (8,675,872 | ) | 2,425,600 | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||
| Interest expenses | (314,119 | ) | (75,112 | ) | (562,160 | ) | (75,112 | ) | ||||||||||
| Other financing expenses | - | - | - | (9,000 | ) | |||||||||||||
| Loss on equity method investment | (3,938 | ) | - | (7,328 | ) | - | ||||||||||||
| Other non-operating income | 59,600 | 60,403 | 271,360 | 9,591 | ||||||||||||||
| Total other expenses, net | (258,457 | ) | (14,709 | ) | (298,128 | ) | (74,521 | ) | ||||||||||
| (LOSS) INCOME BEFORE INCOME TAXES | (4,341,023 | ) | 1,120,576 | (8,974,000 | ) | 2,351,079 | ||||||||||||
| PROVISION FOR INCOME TAX (BENEFIT) EXPENSE | (1,047,749 | ) | 322,715 | (1,495,545 | ) | 665,690 | ||||||||||||
| NET (LOSS) INCOME | (3,293,274 | ) | 797,861 | (7,478,455 | ) | 1,685,389 | ||||||||||||
| Non-controlling interest | (2,835 | ) | - | (5,640 | ) | - | ||||||||||||
| NET (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. | $ | (3,290,439 | ) | $ | 797,861 | $ | (7,472,815 | ) | $ | 1,685,389 | ||||||||
| OTHER COMPREHENSIVE LOSS | ||||||||||||||||||
| Foreign currency translation adjustments | 47,149 | - | (64,326 | ) | - | |||||||||||||
| COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. | $ | (3,243,290 | ) | $ | 797,861 | $ | (7,537,141 | ) | $ | 1,685,389 | ||||||||
| WEIGHTED AVERAGE NUMBER OF COMMON STOCK | ||||||||||||||||||
| Basic | 29,742,620 | 26,491,103 | 29,687,878 | 26,487,816 | ||||||||||||||
| Diluted | 29,742,620 | 26,491,103 | 29,687,878 | 26,487,816 | ||||||||||||||
| (LOSSES) EARNINGS PER SHARE | ||||||||||||||||||
| Basic | $ | (0.11 | ) | $ | 0.03 | $ | (0.25 | ) | $ | 0.06 | ||||||||
| Diluted | $ | (0.11 | ) | $ | 0.03 | $ | (0.25 | ) | $ | 0.06 | ||||||||
FAQ
What were iPower's Q2 2023 revenue results?
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