Upexi Reports Record Revenue of $27.1 Million for Fiscal 2023 Second Quarter, an Increase of 444% Year-Over-Year
Upexi, Inc. (NASDAQ: UPXI) reported strong fiscal 2023 Q2 results, with revenue soaring to $27.1 million, up 444% year-over-year. Gross profit also increased, reaching $10.3 million, a 141% jump. The company achieved an Adjusted EBITDA of $119,054, recovering from a loss of $1.3 million a year ago. A net income of $2.7 million was posted, aided by a one-time gain of $7.6 million from asset sales. Shareholder equity rose to $36.9 million, and cash reserves stood at $4.5 million. CEO Allan Marshall anticipates further operational efficiency and a projected revenue goal of $100 million for calendar 2023.
- Revenue increased by 444% year-over-year to $27.1 million.
- Gross profit rose by 141% to $10.3 million.
- Achieved positive Adjusted EBITDA of $119,054, a significant turnaround from a loss of $1.3 million.
- Net income rose to $2.7 million compared to a net loss of $258,247 for the same period last year.
- Eliminated $15 million in senior secured debt.
- Increased shareholder equity by $8.2 million to $36.9 million.
- Gross margins declined to 38%.
- Operating expenses increased by 83% to $12.5 million.
Fiscal 2023 Second Quarter Financial Highlights:
- Revenue totaled
, an increase of$27.1 million 444% year-over-year, and an increase of134% sequentially. - Gross profit totaled
, an increase of$10.3 million or an increase of$6 million 141% year-over-year and an increase of71% sequentially. - Adjusted EBITDA for the quarter totaled
as compared to an adjusted EBITDA loss of$119,054 year over year, and an improvement of$1.3 million over the prior quarter.$1.1 million - Net Income from continued operations attributable to
Upexi, Inc. shareholders was , as compared to a net loss of approximately$2.7 million for the same period in the prior year. This includes a one-time gain of$258,247 as a result of the sale of Infusionz and select assets.$7.6 million - Shareholder equity increased
to$8.2 million as of$36.9 million December 31, 2022 , as compared to as of$28.7 million June 30, 2022 . - Cash and cash equivalents totaled
as of$4.5 million December 31, 2022 .
"The strategic measures we have taken during the last nine months have resulted in record revenue and positive Adjusted EBITDA for our fiscal 2023 second quarter," stated
Fiscal 2023 Second Quarter and Subsequent Operational Highlights:
- Tytan Tiles launched branded Amazon storefront and into over 2,000 Walmart storefronts.
- Eliminated outstanding balance of
senior secured debt.$15 million - Closed acquisition of E-Core and subsidiaries,
Tytan Products and New England Technology, Inc. - Sold select CBD assets for
.$23.5 million - Filed new patent through the Company's Ad Tech Division, Interactive Offers.
Financial Highlights for Fiscal 2023 Second Quarter
Revenue for the three months ended
Cost of revenue during the quarter totaled
Operating expenses totaled
The Company had a net loss from continued operations of
The Company had cash of
Financial Results Conference Call
Event: | Fiscal 2023 Second Quarter Financial Results Conference Call |
Date: | |
Time: | |
Live Call: | 1-877-407-9716 ( |
Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1596499&tp_key=f546e66677 |
For those unable to join the conference call, a dial-in replay of the call will be available until
Additional details are available under the Investor Relations section of the Company's website: https://upexi.com/investors.
About
FORWARD LOOKING STATEMENTS:
This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with business strategy, potential acquisitions, revenue guidance, product development, integration and synergies of acquiring companies and personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K and other periodic reports filed from time-to-time with the
Use of Non-GAAP Financial Measures
The Company discloses and uses the above-mentioned non-GAAP financial measures internally as a supplement to GAAP financial information to evaluate its operating performance, for financial planning purposes, to establish operational goals, for compensation plans, to measure debt service capability, for capital expenditure planning and to determine working capital needs and believes that these are useful financial measures also used by investors. Non-GAAP adjusted EBITDA is defined as GAAP net income or net loss before interest, taxes, depreciation and amortization (EBITDA) adjusted for the non-cash stock compensation and stock option expense, acquisition, integration & restructuring expenses, charges and gains or losses from extinguishment of debt and other non-cash items. Non-GAAP EBITDA and non-GAAP adjusted EBITDA are not terms defined by GAAP and, as a result, the Company's measure of non-GAAP EBITDA and non-GAAP adjusted EBITDA might not be comparable to similarly titled measures used by other companies. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flow that either excludes or includes amounts that are not normally included in the most directly comparable measure calculated and presented in accordance with GAAP. The non-GAAP financial measures discussed above, however, should be considered in addition to, and not as a substitute for, or superior to net income or net loss as reported for GAAP on the Consolidated Statements of Operations, cash and cash flows on the Consolidated Statement of Cash Flows or other measures of financial performance prepared in accordance with GAAP, and as reflected on the Company's financial statements prepared in accordance with GAAP. These non-GAAP financial measures are not a substitute for or presented in lieu of financial measures provided by GAAP and all measures and disclosures of financial information pursuant to GAAP should be read to obtain a comprehensive and thorough understanding of the Company's financial results. The reconciliations of non-GAAP EBITDA and non-GAAP adjusted EBITDA to GAAP operating income (loss) and/or GAAP net income (net loss) referred to in the highlights or elsewhere are provided in the schedules that are a part of this document.
Adjusted EBITDA | |||
Three Months Ended | Six Months Ended | ||
Net income (Net loss) GAAP | (2,597,515) | 2,669,679 | 72,164 |
Interest expense, net | 435,826 | 1,790,147 | 2,225,973 |
Depreciation and amortization | 1,075,393 | 1,204,628 | 2,280,021 |
Income Tax | (708,201) | 755,253 | 47,052 |
Stock Compensation | 927,326 | 1,052,847 | 1,980,173 |
Gain on sale of asset | - | (7,564,363) | (7,564,363) |
Change in derivative liability | (1,770) | 3,540 | 1,770 |
Loss from discontinued operations | 45,511 | 292,907 | 338,418 |
Loss attributable to non-controlling interest | (148,005) | (85,581) | (233,586) |
(971,435) | 119,057 | (852,378) |
Company Contact
Email: andrew.norstrud@upexi.com
Phone: (702) 332-5591
Investor Relations Contact
Email: Upexi@KCSA.com
Phone: (212) 896-1254
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
Three Month's Ended | Six Month's Ended | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue | ||||||||||||||||
Revenue | $ | 27,086,672 | $ | 4,983,557 | $ | 38,643,683 | $ | 8,853,667 | ||||||||
Cost of Revenue | 16,773,493 | 711,246 | 22,289,773 | 1,982,975 | ||||||||||||
Gross profit | 10,313,179 | 4,272,311 | 16,353,910 | 6,870,692 | ||||||||||||
Operating expenses | ||||||||||||||||
Sales and marketing | 3,707,925 | 1,735,194 | 5,733,385 | 2,735,258 | ||||||||||||
Distribution costs | 3,575,545 | 821,630 | 6,063,379 | 933,463 | ||||||||||||
General and administrative expenses | 2,910,655 | 3,003,919 | 5,409,524 | 4,586,351 | ||||||||||||
Share-based compensation | 1,052,847 | 852,455 | 1,980,173 | 1,479,293 | ||||||||||||
Amortization of acquired intangible assets | 962,077 | 236,001 | 1,842,973 | 304,835 | ||||||||||||
Depreciation | 242,551 | 159,073 | 437,048 | 246,579 | ||||||||||||
12,451,600 | 6,808,272 | 21,466,482 | 10,285,779 | |||||||||||||
Loss from operations | (2,138,421) | (2,535,960) | (5,112,572) | (3,415,086) | ||||||||||||
Other income (expense), net | ||||||||||||||||
Interest (expense) income, net | (1,790,144) | (48,541) | (2,225,973) | (41,994) | ||||||||||||
Change in derivative liability | (3,540) | - | (1,770) | - | ||||||||||||
Gain on sale of Infusionz and select assets | 7,564,363 | - | 7,564,363 | - | ||||||||||||
Gain on SBA PPP loan extinguishment | - | - | - | 300,995 | ||||||||||||
Other income (expense), net | 5,770,679 | (48,541) | 5,336,620 | 259,001 | ||||||||||||
Income (loss) on operations before income tax | 3,632,258 | (2,584,501) | 224,048 | (3,156,085) | ||||||||||||
Income tax expense | (755,253) | (493,936) | (47,052) | (235,033) | ||||||||||||
Net income (loss) from continuing operations | 2,877,005 | (3,078,437) | 176,996 | (3,391,118) | ||||||||||||
(Loss) income from discontinued operations | (292,907) | 2,820,190 | (338,418) | 3,967,662 | ||||||||||||
Net loss attributable to non-controlling interest | (85,581) | - | (233,586) | - | ||||||||||||
Net income (loss) attributable to | $ | 2,669,679 | $ | (258,247) | $ | 72,164 | $ | 576,544 | ||||||||
Basic income (loss) per share: | ||||||||||||||||
Income (loss) per share from continuing operations | $ | 0.16 | $ | (0.32) | $ | 0.01 | $ | (0.22) | ||||||||
(Loss) income per share from discontinued operations | $ | (0.02) | $ | 0.29 | $ | (0.02) | $ | 0.26 | ||||||||
Total income (loss) per share | $ | 0.16 | $ | (0.32) | $ | 0.01 | $ | (0.22) | ||||||||
Diluted income (loss) per share: | ||||||||||||||||
Income (loss) per share from continuing operations | $ | 0.15 | $ | (0.32) | $ | 0.01 | $ | (0.20) | ||||||||
(Loss) income per share from discontinued operations | $ | (0.02) | $ | 0.29 | $ | (0.02) | $ | 0.23 | ||||||||
Total income (loss) per share | $ | 0.15 | $ | (0.32) | $ | 0.01 | $ | (0.20) | ||||||||
Basic weighted average shares outstanding | 17,540,427 | 9,755,663 | 17,126,886 | 15,452,453 | ||||||||||||
Fully diluted weighted average shares outstanding | 19,030,705 | 9,755,663 | 18,617,164 | 17,220,564 |
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
2022 | 2022 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 4,508,161 | $ | 7,149,806 | ||||
Accounts receivable | 8,869,297 | 1,137,637 | ||||||
Inventory | 6,779,997 | 4,725,685 | ||||||
Deferred tax asset, current | - | 462,070 | ||||||
Prepaid expenses and other receivables | 1,967,088 | 840,193 | ||||||
Assets of discontinued operations, net | - | 6,449,210 | ||||||
Total current assets | 22,124,543 | 20,764,601 | ||||||
Property and equipment, net | 7,231,404 | 7,343,783 | ||||||
Intangible assets, net | 18,712,409 | 10,641,382 | ||||||
15,342,089 | 5,887,393 | |||||||
Deferred tax asset | 2,479,918 | 2,002,759 | ||||||
Investments - Bloomios | 10,081,255 | - | ||||||
Other assets | 56,703 | 100,372 | ||||||
Right-of-use asset | 608,488 | 926,570 | ||||||
Total other assets | 54,512,266 | 26,902,259 | ||||||
Total assets | $ | 76,636,809 | $ | 47,666,860 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 4,162,121 | $ | 2,018,541 | ||||
Accrued compensation | 718,764 | 531,259 | ||||||
Deferred revenue | 31,724 | 105,848 | ||||||
Accrued liabilities | 3,898,318 | 955,327 | ||||||
Acquisition payable | 3,978,523 | - | ||||||
Current portion of notes payable | 2,117,683 | 5,424,752 | ||||||
Current portion of operating lease payable | 187,777 | 267,029 | ||||||
Total current liabilities | 15,094,910 | 9,302,756 | ||||||
Operating lease payable, net of current portion | 375,552 | 700,411 | ||||||
Notes payable, net of current portion | 24,420,152 | 8,876,949 | ||||||
Total long-term liabilities | 24,795,704 | 9,577,360 | ||||||
Commitments and contingencies | - | - | ||||||
Stockholders' equity | ||||||||
Preferred stock, | 500 | 500 | ||||||
Common stock, | 17,960 | 16,713 | ||||||
Additional paid in capital | 43,105,223 | 34,985,597 | ||||||
Accumulated deficit | (6,198,722) | (6,270,886) | ||||||
Total stockholders' equity attributable to | 36,924,961 | 28,731,924 | ||||||
Non-controlling interest in subsidiary | (178,766) | 54,820 | ||||||
Total stockholders' equity | 36,746,195 | 28,786,744 | ||||||
Total liabilities and stockholders' equity | $ | 76,636,809 | $ | 47,666,860 |
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