DecisionPoint Systems Announces Second Quarter 2022 Results
DELRAY BEACH, Fla., Aug. 11, 2022 /PRNewswire/ — DecisionPoint™ Systems, Inc. (NYSE American: DPSI), a mobility-first enterprise services and solutions company today announced second quarter 2022 financial results.
Revenue increased 81.3% to a record $27.5 million
GAAP net income and diluted EPS of $0.7 million and $0.09
Non-GAAP net income and non-GAAP diluted EPS increased 227.4% and 233.3%; Adjusted EBITDA increased 392.6% to $2.7 million
Raises full-year 2022 revenue guidance to $87.0 to $90.0 million (33-36% growth) and adjusted EBITDA guidance to $4.6 to $5.0 million
“Our mobility-first strategy is working as we had our best revenue quarter ever due to broad-based strength across our verticals,” said Steve Smith, chief executive officer. “Demand from our retail vertical customers was robust, and we successfully leveraged strong relationships with our OEM and distribution partners to partially ship two significant equipment orders while still building up inventory to fill our backlog in future quarters.
“We also made significant progress integrating the two strategic acquisitions made during the first quarter that strengthen our positions in the Transportation and Direct Store Delivery verticals. As a result, we realized cost synergies and are executing on many cross-selling opportunities. This quick realization of value also allows us to look at new potential acquisitions during the second half of the year.”
Second Quarter Highlights (2022 versus 2021)
- Revenue increased 81.3% to $27.5 million;
- Gross Profit increased 81.0% to $6.3 million;
- GAAP Net Income and diluted EPS increased to $0.7 million and $0.09, respectively;
- Non-GAAP Net Income and non-GAAP diluted EPS increased 227.4% and 233.3% to $0.8 million and $0.10, respectively;
- Adjusted EBITDA increased 392.6% to $2.7 million;
- Backlog as of June 30, 2022 was $28.0 million.
|Second Quarter Select Financial Metrics: 2022 versus 2021|
|(in $M except for EPS)||2Q22||2Q21||Change||YTD 2022||YTD 2021||Change|
|Total Revenue||$ 27.5||$ 15.2||81.3%||$ 47.2||$ 31.2||51.2%|
|Hardware Revenue||$ 20.6||$ 10.3||240.3%||$ 34.9||$ 20.7||68.4%|
|Software and Services Revenue||$ 4.8||$ 3.6||149.1%||$ 9.0||$ 7.7||15.6%|
|Consumables Revenue||$ 2.1||$ 1.3||156.0%||$ 3.4||$ 2.8||21.4%|
|Gross Profit||$ 6.3||$ 3.5||80.98%||$ 11.0||$ 7.3||50.0%|
|Operating Income||$ 2.0||$ 0.1||1670.5%||$ 2.2||$ 0.4||403.9%|
|GAAP Net Income||$ 0.7||$ 0.2||324.1%||$ 1.6||$ 1.5||4.7%|
|GAAP Diluted Earnings Per Share||$ 0.1||$ 0.0||307.0%||$ 0.2||$ 0.2||3.5%|
|Non-GAAP Net Income||$ 0.8||$ 0.3||227.4%||$ 2.1||$ 0.5||351.4%|
|Non-GAAP Diluted EPS||$ 0.1||$ 0.0||233.3%||$ 0.3||$ 0.1||300.0%|
|Adjusted EBITDA||$ 2.7||$ 0.6||392.6%||$ 3.8||$ 1.4||182.3%|
|*numbers may not add due to rounding|
Balance Sheet and Liquidity as of June 30, 2022
Cash and cash equivalents were $8.5 million, compared to $2.6 million on December 31, 2021. Long-term debt was $0.1 million, roughly flat to December 31, 2021.
Net cash from operating activities was $12.9 million compared to $2.5 million in the second quarter of 2021.
“Our strong first half of the year combined with a large backlog gives us the confidence to increase our revenue and adjusted EBITDA guidance for 2022. We now expect revenue to be $87 to $90 million, representing 33% to 36% growth versus 2021. We also expect approximately $20 million to come from services. Within this range, we expect Adjusted EBITDA to be between $4.6 and $5.0 million,” concluded Smith.
Conference Call and Webcast Information
DecisionPoint’s earnings release will be filed on Form 8-K and posted on the DecisionPoint investor relations website (https://www.decisionpt.com/investing-in-decisionpoint/) at approximately 4:10 p.m. Eastern Time on August 11, 2022. Management will host an earnings conference call and webcast at 4:30 p.m. Eastern Time. Management’s presentation of the results, outlook and strategy will be followed by Q&A with investors.
Live Call Information:
Date: August 11, 2022
Time: 4:30 p.m. Eastern Time
Dial-in Toll Free: 1-888-882-4478
Dial-in Toll/International: 1-323-794-2590
Toll Free: 1-844-512-2921
Replay Pin Number: 1185733
Replay Start: Thursday August 11, 2022, 7:30 PM ET
Replay Expiry: Thursday August 18, 2022, 11:59 PM ET
About DecisionPoint Systems
DecisionPoint Systems Inc. delivers mobility-first managed service and integration solutions to healthcare, supply chain, and retail customers, enabling them to make better and faster decisions in the moments that matter—the decision points. Our mission is to help businesses consistently deliver on those moments—accelerating growth, improving worker productivity, and lowering risks and costs. For more information about DecisionPoint Systems, Inc., visit https://www.decisionpt.com.
This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 that are based on management’s beliefs and assumptions and on information currently available to management. These statements involve risks, uncertainties and other factors that may cause actual results, levels of activity, performance, or achievements to be materially different from the information expressed or implied by forward-looking statements. Forward-looking statements in this press release may include statements about our plans to obtain funding for our current and proposed operations and potential acquisition and expansion efforts; the ultimate impact of the COVID-19 pandemic, or any other health epidemic, on our business, our clientele or the global economy as a whole; debt obligations of the Company; our general history of operating losses; our ability to compete with companies producing products and services; the scope of protection we are able to establish and maintain for intellectual property rights covering our products and technology; the accuracy of our estimates regarding expenses, future revenue, capital requirements and needs for additional financing; our ability to develop and maintain our corporate infrastructure, including our internal controls; our ability to develop innovative new products; and our financial performance. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this press release, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. We qualify all of our forward-looking statements by these cautionary statements. Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the Securities and Exchange Commission.
Investor Relations Contact:
Brian Siegel, IRC, MBA
Senior Managing Director, Hayden IR