Powerfleet, Inc. (Nasdaq: PWFL),
reported results for the second quarter and six months ended June
30, 2023.
SECOND QUARTER 2023 FINANCIAL AND OPERATIONAL
HIGHLIGHTS
- Total service revenue increased by
13% on a constant currency basis, compared to Q2 2022.
- Total service revenue increased
sequentially by 3.3% on a constant currency basis, demonstrating
traction in the company’s transformation to a SaaS centric business
model.
- Total service revenue increased to
66% of total revenue, up from 57% in the prior year, driving an
expansion in gross margins to 50% from 47%.
- Services gross margin in the go
forward core business (excluding Argentina, Brazil, and South
Africa business units) increased to 71% with total gross margin for
the core business of 53%.
- EBITDA increased sequentially by 31%
to $1.8 million versus first quarter 2023, pro forma for EBITDA
burn from the Movingdots acquisition.
- Subscriber count totaled 697,177, an increase of 3% from the
prior quarter and 9% year- on-year.
FIRST HALF 2023 FINANCIAL HIGHLIGHTS (COMPARED TO FIRST
HALF 2022)
- Transformation into a high value
sticky SaaS recurring business continues at pace in our core go
forward markets with North American service revenue growing 16%
annually, complemented by service revenue in Israel growing 10% on
a constant currency basis.
- Growth in services revenue drove
expansion in gross margin to 50% from 45% and improved gross profit
by $2 million during the controlled product to SaaS sales funnel
and revenue mix transition.
- Improved underlying cash generation
with cash from operations increasing by $4 million.
- With improved cash generation and
liquidity, reinitiated paying the dividend on the convertible
preferred instrument in cash versus payment in kind (PIK).
- Taken the necessary steps to reduce
annual run rate expense by $4 million per year exiting third
quarter. Central to commitment to ensure Movingdots acquisition is
adjusted EBITDA neutral.
- Released a highly advanced, sustainability module on Unity
platform, at budget and on time; supports asset electrification,
and bolsters ESG reporting requirements with net reduction of CO2
emissions.
MANAGEMENT COMMENTARY
“Our transformation into a superior valued business centered on
high quality, sticky, recurring SaaS revenue is reflected in our
key performance indicators,” said Powerfleet CEO Steve
Towe. “While we are still relatively early in our journey,
strong proof points are now evident in the shape of our P&L,
our mix of revenue and associated SaaS growth rates of 12% for the
quarter and 15% for the half of 2023 on a constant currency basis.
In the first half 2023, service revenue in our strategically
important North American business grew by an impressive 16%,
complemented by Israel, which was up 10% on a constant currency
basis. New logo SaaS wins, centered around our Unity platform and
advanced Safety solutions, were strong in Q2, alongside service
gross margins of 71% and total gross margin of 53% in our core
business unit. These fundamental SaaS metrics are very strong
indicators supporting our longer-term strategic business value
creation objectives.
“We believe that all the heavy lifting transformation items we
have executed over recent months have set the foundation for
greater earnings potential, a more compelling business model, and a
lower cost of capital for our shareholders.”
David Wilson, Powerfleet CFO, added: “Our Unity
platform continues to track ahead of schedule, and I have no doubt
that the pace of delivery and the level of capabilities within
Unity are greatly enhanced by the Movingdots acquisition. That
said, the importance of being good stewards of capital remains
paramount and we have successfully executed the necessary steps to
achieve our previously stated $3 million expense reduction
challenge. Additionally, we have taken actions to secure an
additional $1 million in annualized expense reductions. With $4
million of secured cost savings, we are positioned to exceed our
commitment to ensure Movingdots is an adjusted EBITDA neutral
transaction exiting the third quarter.”
SECOND QUARTER 2023 FINANCIAL RESULTS
Total revenue was $32.1 million, compared to $34.6 million in
the same year-ago period, with growth in services revenue
offsetting lower product sales.
Services revenues totaled $21.0 million, up $1.3 million
year-over-year, accounting for 66% of total revenue. On a constant
currency basis, services revenue grew by 13%, reflecting the
company's successful execution of its SaaS growth strategy.
Products revenue was $11.0 million, or 34% of total revenue,
compared to $14.8 million, or 43% of total revenue in the prior
year period. Total revenue performance reflects actively shedding
low margin and non-core hardware business.
Gross profit margin expanded to 50.0% from 46.9% in the prior
year period, driven by an improved mix of high-margin services
revenue versus products revenue, deal discipline for product sales,
terminating unprofitable contracts and eliminating low margin
product lines.
In line with expectations, operating expenses increased to $19.2
million from $17.8 million in the same year-ago period, with the
increase solely attributable to the Movingdots acquisition.
Net loss attributable to common stockholders totaled $4.3
million, or $(0.12) per basic and diluted share (based on 35.6
million weighted average shares outstanding), compared to net loss
attributable to common stockholders of $1.3 million, or $(0.04) per
basic and diluted share (based on 35.4 million weighted average
shares outstanding), in the same year-ago period.
Adjusted EBITDA, a non-GAAP metric, totaled $647,000, compared
to $3.3 million in the same year-ago period reflecting Adjusted
EBITDA losses from the Movingdots acquisition. See the section
below titled “Non-GAAP Financial Measures” for more information
about adjusted EBITDA and its reconciliation to GAAP net income
(loss).
Powerfleet had $22.0 million in cash and cash equivalents and a
working capital position of $38.3 million at quarter-end.
SIX MONTH 2023 FINANCIAL RESULTS
Total revenue was $64.9 million, compared to $67.8 million in
the same year-ago period, with growth in services revenue
offsetting lower product sales.
Services revenues totaled $41.5 million, up approximately $3.0
million year-over-year, accounting for 64% of total revenue. On a
constant currency basis, services revenue grew by 15%, reflecting
the company's successful execution of its SaaS growth strategy.
Products revenue was $23.4 million, or 36% of total revenue,
compared to $29.2 million, or 43% of total revenue in the prior
year period. Total revenue performance reflects actively shedding
low margin and non-core business.
Gross profit margin expanded to 50.3% from 45.2% in the prior
year period, driven by an improved mix of high-margin services
revenue versus products revenue.
Net loss attributable to common stockholders, inclusive of a
$7.5 million gain on bargain purchase for Movingdots, totaled
$780,000, or $0.01 per basic and diluted share (based on 35.6
million and 35.7 million weighted average shares outstanding for
basic and diluted respectively), compared to net loss attributable
to common stockholders of $(5.5) million, or $(0.15) per basic and
diluted share (based on 35.4 million weighted average shares
outstanding), in the same year-ago period.
Adjusted EBITDA, a non-GAAP metric, totaled $2.0 million,
compared to $2.7 million in the prior year period reflecting
Adjusted EBITDA losses from the Movingdots acquisition. See the
section below titled “Non-GAAP Financial Measures” for more
information about adjusted EBITDA and its reconciliation to GAAP
net income (loss).
INVESTOR CONFERENCE CALLPowerfleet
management will discuss these results and business outlook on a
conference call today (Tuesday, August 8, 2023) at 8:30 a.m.
Eastern time (5:30 a.m. Pacific time).
Powerfleet management will host the presentation, followed by a
question-and-answer session.
Join the live WebcastToll Free Dial In:
888-506-0062International Dial In: 973-528-0011Participant Access
Code: 360336
The conference call will be available for replay here and via
the investor section of the company’s website at
ir.powerfleet.com.
If you have any difficulty connecting with the conference call,
please contact Powerfleet’s investor relations team at
949-574-3860.
NON-GAAP FINANCIAL MEASURES To supplement its
financial statements presented in accordance with Generally
Accepted Accounting Principles (GAAP), Powerfleet provides certain
non-GAAP measures of financial performance. These non-GAAP measures
include adjusted EBITDA and total revenue and services revenue
excluding foreign exchange effect. Reference to these non-GAAP
measures should be considered in addition to results prepared under
current accounting standards, but are not a substitute for, or
superior to, GAAP results. These non-GAAP measures are provided to
enhance investors’ overall understanding of Powerfleet’s current
financial performance. Specifically, Powerfleet believes the
non-GAAP measures provide useful information to both management and
investors by excluding certain expenses, gains and losses that may
not be indicative of its core operating results and business
outlook. These non-GAAP measures are not measures of financial
performance or liquidity under GAAP and, accordingly, should not be
considered as an alternative to net income or cash flow from
operating activities as an indicator of operating performance or
liquidity. Because Powerfleet’s method for calculating the non-GAAP
measures may differ from other companies’ methods, the non-GAAP
measures may not be comparable to similarly titled measures
reported by other companies. Reconciliation of all non-GAAP
measures included in this press release to the nearest GAAP
measures can be found in the financial tables included in this
press release.
POWERFLEET, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP TO ADJUSTED
EBITDA FINANCIAL MEASURES
|
Three Months
Ended |
|
Six Months
Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders |
$ |
(1,334,000 |
) |
|
$ |
(4,274,000 |
) |
|
$ |
(5,458,000 |
) |
|
$ |
(780,000 |
) |
Non-controlling interest |
|
1,000 |
|
|
|
6,000 |
|
|
|
2,000 |
|
|
|
3,000 |
|
Preferred
stock dividend and accretion |
|
1,216,000 |
|
|
|
1,297,000 |
|
|
|
2,412,000 |
|
|
|
2,572,000 |
|
Interest
(income) expense, net |
|
560,000 |
|
|
|
457,000 |
|
|
|
991,000 |
|
|
|
974,000 |
|
Other
(income) expense, net |
|
(3,000 |
) |
|
|
0 |
|
|
|
(2,000 |
) |
|
|
(1,000 |
) |
Income tax
(benefit) expense |
|
40,000 |
|
|
|
39,000 |
|
|
|
(663,000 |
) |
|
|
436,000 |
|
Depreciation
and amortization |
|
2,044,000 |
|
|
|
2,267,000 |
|
|
|
4,133,000 |
|
|
|
4,500,000 |
|
Stock-based
compensation |
|
1,629,000 |
|
|
|
852,000 |
|
|
|
2,086,000 |
|
|
|
1,684,000 |
|
Foreign
currency translation |
|
(1,349,000 |
) |
|
|
(362,000 |
) |
|
|
(1,690,000 |
) |
|
|
(942,000 |
) |
Severance
related expenses |
|
468,000 |
|
|
|
425,000 |
|
|
|
847,000 |
|
|
|
559,000 |
|
Gain on
Bargain purchase - Movingdots |
|
- |
|
|
|
(283,000 |
) |
|
|
|
|
|
(7,517,000 |
) |
Movingdots
Related Expenses |
|
- |
|
|
|
223,000 |
|
|
|
|
|
|
540,000 |
|
Adjusted EBITDA |
$ |
3,272,000 |
|
|
$ |
647,000 |
|
|
$ |
2,658,000 |
|
|
$ |
2,028,000 |
|
ABOUT POWERFLEETPowerfleet (Nasdaq: PWFL; TASE:
PWFL) is a global leader of internet of things (IoT)
software-as-a-service (SaaS) solutions that optimize the
performance of mobile assets and resources to unify business
operations. Our data science insights and advanced modular software
solutions help drive digital transformation through our customers’
and partners’ ecosystems to help save lives, time, and money. We
help connect companies, enabling customers and their customers to
realize more effective strategies and results. Powerfleet’s tenured
and talented team is at the heart of our approach to partnership
and tangible success. The company is headquartered in Woodcliff
Lake, New Jersey, with our Pointer Innovation Center (PIC) in
Israel and field offices around the globe. For more information,
please visit www.powerfleet.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING
STATEMENTSThis press release contains forward-looking
statements within the meaning of federal securities laws.
Forward-looking statements include statements with respect to
Powerfleet’s beliefs, plans, goals, objectives, expectations,
anticipations, assumptions, estimates, intentions, and future
performance, and involve known and unknown risks, uncertainties and
other factors, which may be beyond Powerfleet’s control, and which
may cause its actual results, performance or achievements to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. All statements other than statements of historical fact
are statements that could be forward-looking statements. For
example, forward-looking statements include statements regarding
prospects for additional customers; potential contract values;
market forecasts; projections of earnings, revenues, synergies,
accretion, or other financial information; emerging new products;
and plans, strategies, and objectives of management for future
operations, including growing revenue, controlling operating costs,
increasing production volumes, and expanding business with core
customers. The risks and uncertainties referred to above include,
but are not limited to, future economic and business conditions,
the ability to recognize the anticipated benefits of the
acquisition of Movingdots, the loss of key customers or reduction
in the purchase of products by any such customers, the failure of
the market for Powerfleet’s products to continue to develop, the
inability to protect Powerfleet’s intellectual property, the
inability to manage growth, the effects of competition from a
variety of local, regional, national and other providers of
wireless solutions, and other risks detailed from time to time in
Powerfleet’s filings with the Securities and Exchange Commission,
including Powerfleet’s most recent annual report on Form 10-K.
These risks could cause actual results to differ materially from
those expressed in any forward-looking statements made by, or on
behalf of, Powerfleet. Unless otherwise required by applicable law,
Powerfleet assumes no obligation to update the information
contained in this press release, and expressly disclaims any
obligation to do so, whether a result of new information, future
events, or otherwise.
Powerfleet Investor Contact Matt GloverGateway
Group, Inc. PWFL@gatewayir.com (949) 574-3860
Powerfleet Media ContactAndrea
HaytonPowerfleet, Inc. ahayton@powerfleet.com(610) 401-1999
POWERFLEET, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS DATA
|
Three Months
Ended |
|
Six Months
Ended |
|
June 30, |
|
June 30, |
|
2022 |
|
2023 |
|
2022 |
|
2023 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
Products |
$ |
14,818,000 |
|
|
$ |
11,012,000 |
|
|
$ |
29,210,000 |
|
|
$ |
23,416,000 |
|
Services |
|
19,776,000 |
|
|
|
21,038,000 |
|
|
|
38,545,000 |
|
|
|
41,473,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Revenues |
|
34,594,000 |
|
|
|
32,050,000 |
|
|
|
67,755,000 |
|
|
|
64,889,000 |
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
|
|
|
Cost of
products |
|
11,336,000 |
|
|
|
8,550,000 |
|
|
|
23,314,000 |
|
|
|
17,552,000 |
|
Cost of
services |
|
7,028,000 |
|
|
|
7,467,000 |
|
|
|
13,812,000 |
|
|
|
14,686,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total cost
of revenues: |
|
18,364,000 |
|
|
|
16,017,000 |
|
|
|
37,126,000 |
|
|
|
32,238,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
16,230,000 |
|
|
|
16,033,000 |
|
|
|
30,629,000 |
|
|
|
32,651,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
15,817,000 |
|
|
|
16,987,000 |
|
|
|
30,729,000 |
|
|
|
33,774,000 |
|
Research and development expenses |
|
2,001,000 |
|
|
|
2,179,000 |
|
|
|
5,230,000 |
|
|
|
3,902,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses |
|
17,818,000 |
|
|
|
19,166,000 |
|
|
|
35,959,000 |
|
|
|
37,676,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(1,588,000 |
) |
|
|
(3,133,000 |
) |
|
|
(5,330,000 |
) |
|
|
(5,025,000 |
) |
Interest
income |
|
15,000 |
|
|
|
22,000 |
|
|
|
28,000 |
|
|
|
46,000 |
|
Interest
expense |
|
(575,000 |
) |
|
|
(173,000 |
) |
|
|
(1,019,000 |
) |
|
|
(310,000 |
) |
Gain on
Bargain purchase - Movingdots |
|
- |
|
|
|
283,000 |
|
|
|
- |
|
|
|
7,517,000 |
|
Foreign
currency translation of debt |
|
2,068,000 |
|
|
|
- |
|
|
|
2,612,000 |
|
|
|
- |
|
Other
(expense) income, net |
|
3,000 |
|
|
|
69,000 |
|
|
|
2,000 |
|
|
|
3,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income before income taxes |
|
(77,000 |
) |
|
|
(2,932,000 |
) |
|
|
(3,707,000 |
) |
|
|
2,231,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit (expense) |
|
(40,000 |
) |
|
|
(39,000 |
) |
|
|
663,000 |
|
|
|
(436,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income before non-controlling interest |
|
(117,000 |
) |
|
|
(2,971,000 |
) |
|
|
(3,044,000 |
) |
|
|
1,795,000 |
|
Non-controlling interest |
|
(1,000 |
) |
|
|
(6,000 |
) |
|
|
(2,000 |
) |
|
|
(3,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income |
|
(118,000 |
) |
|
|
(2,977,000 |
) |
|
|
(3,046,000 |
) |
|
|
1,792,000 |
|
Accretion of
preferred stock |
|
(168,000 |
) |
|
|
(168,000 |
) |
|
|
(336,000 |
) |
|
|
(336,000 |
) |
Preferred
stock dividend |
|
(1,048,000 |
) |
|
|
(1,129,000 |
) |
|
|
(2,076,000 |
) |
|
|
(2,236,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income attributable to common stockholders |
$ |
(1,334,000 |
) |
|
$ |
(4,274,000 |
) |
|
$ |
(5,458,000 |
) |
|
$ |
(780,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income per share - basic |
$ |
(0.01 |
) |
|
$ |
(0.12 |
) |
|
$ |
(0.15 |
) |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) /
income per share - diluted |
|
(0.01 |
) |
|
$ |
(0.12 |
) |
|
|
(0.15 |
) |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding - basic |
|
35,386,000 |
|
|
|
35,605,000 |
|
|
|
35,359,000 |
|
|
|
35,577,000 |
|
Weighted
average common shares outstanding - diluted |
|
35,386,000 |
|
|
|
35,605,000 |
|
|
|
35,359,000 |
|
|
|
35,670,000 |
|
POWERFLEET, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEET
DATA
|
As of |
|
December 31, 2022 |
|
June 30, 2023 |
|
|
|
|
(Unaudited) |
ASSETS |
|
|
|
|
|
Current
assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
17,680,000 |
|
$ |
21,729,000 |
Restricted cash |
|
309,000 |
|
|
309,000 |
Accounts receivable, net |
|
32,493,000 |
|
|
31,318,000 |
Inventory, net |
|
22,272,000 |
|
|
22,125,000 |
Deferred costs - current |
|
762,000 |
|
|
338,000 |
Prepaid expenses and other current assets |
|
7,709,000 |
|
|
7,298,000 |
Total current assets |
|
81,225,000 |
|
|
83,117,000 |
|
|
|
|
|
|
Deferred
costs - less current portion |
|
- |
|
|
- |
Fixed
assets, net |
|
9,249,000 |
|
|
10,226,000 |
Goodwill |
|
83,487,000 |
|
|
83,487,000 |
Intangible
assets, net |
|
22,908,000 |
|
|
21,871,000 |
Right of use
asset |
|
7,820,000 |
|
|
6,936,000 |
Severance
payable fund |
|
3,760,000 |
|
|
3,566,000 |
Deferred tax
asset |
|
3,225,000 |
|
|
1,942,000 |
Other
assets |
|
5,761,000 |
|
|
6,131,000 |
Total assets |
$ |
217,435,000 |
|
$ |
217,276,000 |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Short-term bank debt and current maturities of long-term debt |
$ |
10,312,000 |
|
$ |
11,197,000 |
Accounts payable and accrued expenses |
|
26,598,000 |
|
|
24,960,000 |
Deferred revenue - current |
|
6,363,000 |
|
|
6,193,000 |
Lease liability - current |
|
2,441,000 |
|
|
2,448,000 |
Total current liabilities |
|
45,714,000 |
|
|
44,798,000 |
|
|
|
|
|
|
Long-term
debt, less current maturities |
|
11,403,000 |
|
|
9,940,000 |
Deferred
revenue - less current portion |
|
4,390,000 |
|
|
4,582,000 |
Lease
liability - less current portion |
|
5,628,000 |
|
|
4,715,000 |
Accrued
severance payable |
|
4,365,000 |
|
|
4,284,000 |
Deferred tax
liability |
|
4,919,000 |
|
|
4,030,000 |
Other
long-term liabilities |
|
636,000 |
|
|
668,000 |
|
|
|
|
|
|
Total liabilities |
|
77,055,000 |
|
|
73,017,000 |
|
|
|
|
|
|
MEZZANINE
EQUITY |
|
|
|
|
|
Convertible
redeemable Preferred stock: Series A |
|
57,565,000 |
|
|
59,008,000 |
|
|
|
|
|
|
STOCKHOLDERS' EQUITY |
|
- |
|
|
- |
Total
Powerfleet, Inc. stockholders' equity |
|
82,737,000 |
|
|
85,188,000 |
Non-controlling interest |
|
78,000 |
|
|
63,000 |
Total
equity |
|
82,815,000 |
|
|
85,251,000 |
Total
liabilities and stockholders' equity |
$ |
217,435,000 |
|
$ |
217,276,000 |
POWERFLEET, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOW DATA
|
|
|
Six Months Ended June 30, |
|
2022 |
|
2023 |
|
|
|
|
(Unaudited) |
Cash
flows from operating activities (net of net assets
acquired): |
|
|
|
|
|
Net (loss) / income |
$ |
(3,046,000 |
) |
|
$ |
1,792,000 |
|
Adjustments
to reconcile net loss to cash (used in) provided by operating
activities: |
|
|
|
|
|
Non-controlling interest |
|
2,000 |
|
|
|
3,000 |
|
Gain on bargain purchase |
|
- |
|
|
|
(7,517,000 |
) |
Inventory reserve |
|
119,000 |
|
|
|
375,000 |
|
Stock based compensation expense |
|
2,086,000 |
|
|
|
1,684,000 |
|
Depreciation and amortization |
|
4,133,000 |
|
|
|
4,498,000 |
|
Right-of-use assets, non-cash lease expense |
|
1,382,000 |
|
|
|
1,318,000 |
|
Bad debt expense |
|
(364,000 |
) |
|
|
826,000 |
|
Deferred taxes |
|
(663,000 |
) |
|
|
398,000 |
|
Other non-cash items |
|
604,000 |
|
|
|
73,000 |
|
Changes in: |
|
|
|
|
|
Operating assets and liabilities |
|
(6,953,000 |
) |
|
|
(2,110,000 |
) |
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
(2,700,000 |
) |
|
|
1,340,000 |
|
|
|
|
|
|
|
Cash
flows from investing activities: |
|
|
|
|
|
Acquisitions, net of cash assumed |
|
- |
|
|
|
8,722,000 |
|
Purchase of
investment |
|
- |
|
|
|
(100,000 |
) |
Capitalized
software development costs |
|
- |
|
|
|
(1,677,000 |
) |
Capital
expenditures |
|
(2,013,000 |
) |
|
|
(2,108,000 |
) |
|
|
|
|
|
|
Net cash (used in) investing activities |
|
(2,013,000 |
) |
|
|
4,837,000 |
|
|
|
|
|
|
|
Cash
flows from financing activities: |
|
|
|
|
|
Payment of
preferred stock dividend |
|
- |
|
|
|
(1,128,000 |
) |
Repayment of
long-term debt |
|
(2,897,000 |
) |
|
|
(2,658,000 |
) |
Short-term
bank debt, net |
|
2,330,000 |
|
|
|
2,736,000 |
|
Purchase of
treasury stock upon vesting of restricted stock |
|
(186,000 |
) |
|
|
(48,000 |
) |
Proceeds
from exercise of stock options |
|
- |
|
|
|
36,000 |
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities |
|
(753,000 |
) |
|
|
(1,062,000 |
) |
|
|
|
|
|
|
Effect of
foreign exchange rate changes on cash and cash equivalents |
|
(3,282,000 |
) |
|
|
(1,066,000 |
) |
Net
increase in cash, cash equivalents and restricted
cash |
|
(8,748,000 |
) |
|
|
4,049,000 |
|
Cash, cash
equivalents and restricted cash - beginning of period |
|
26,760,000 |
|
|
|
17,989,000 |
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash - end of
period |
$ |
18,012,000 |
|
|
$ |
22,038,000 |
|
POWERFLEET, INC. CORE
BUSINESSCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS DATA
|
Three Months
Ended |
|
June 30, 2023 |
|
Total Powerfleet |
|
BASA / 3rd party Cellocator |
|
Core Business |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenue: |
|
|
|
|
|
|
|
|
Products |
$ |
11,012,000 |
|
$ |
322,838 |
|
$ |
10,689,162 |
Services |
|
21,038,000 |
|
|
3,105,099 |
|
|
17,932,901 |
|
|
|
|
|
|
|
|
|
Total
Revenues |
|
32,050,000 |
|
|
3,427,937 |
|
|
28,622,063 |
Cost of
revenue: |
|
|
|
|
|
|
|
|
Cost of
products |
|
8,550,000 |
|
|
241,769 |
|
|
8,308,231 |
Cost of
services |
|
7,467,000 |
|
|
2,205,391 |
|
|
5,261,609 |
|
|
|
|
|
|
|
|
|
Total cost
of revenues: |
|
16,017,000 |
|
|
2,447,160 |
|
|
13,569,840 |
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
16,033,000 |
|
|
980,777 |
|
|
15,052,223 |
POWERFLEET, INC. PRE-MOVINGDOTS
ACQUISITIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS DATA
|
Three Months
Ended |
|
June 30, 2023 |
|
Total Powerfleet |
|
Movingdots |
|
Powerfleet Pre-Acquisition Business |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Revenue: |
|
|
|
|
|
|
|
|
Products |
$ |
11,012,000 |
|
|
$ |
6,700 |
|
|
$ |
11,005,300 |
|
Services |
|
21,038,000 |
|
|
|
181,842 |
|
|
|
20,856,158 |
|
|
|
|
|
|
|
|
|
|
Total
Revenues |
|
32,050,000 |
|
|
|
188,542 |
|
|
|
31,861,458 |
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
Cost of
products |
|
8,550,000 |
|
|
|
(3,134 |
) |
|
|
8,553,134 |
|
Cost of
services |
|
7,467,000 |
|
|
|
153,249 |
|
|
|
7,313,751 |
|
|
|
|
|
|
|
|
|
|
Total cost
of revenues: |
|
16,017,000 |
|
|
|
150,115 |
|
|
|
15,866,885 |
|
|
|
|
|
|
|
|
|
|
Gross
Profit |
|
16,033,000 |
|
|
|
38,427 |
|
|
|
15,994,573 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
16,987,000 |
|
|
|
683,801 |
|
|
|
16,303,199 |
|
Research and development expenses |
|
2,179,000 |
|
|
|
654,773 |
|
|
|
1,524,227 |
|
|
|
|
|
|
|
|
|
|
Total
Operating Expenses |
|
19,166,000 |
|
|
|
1,338,574 |
|
|
|
17,827,426 |
|
|
|
|
|
|
|
|
|
|
Loss from
operations |
|
(3,133,000 |
) |
|
|
(1,300,147 |
) |
|
|
(1,832,853 |
) |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA |
|
647,000 |
|
|
|
(1,167,000 |
) |
|
|
1,814,000 |
|
CONSTANT CURRENCYConstant currency information
has been presented to illustrate the impact of changes in currency
rates on the company’s results. The constant currency information
has been determined by adjusting the current financial reporting
period results to the prior period average exchange rates,
determined as the average of the monthly exchange rates applicable
to the period. The measurement has been performed for each of the
company’s currencies. The constant currency growth percentage has
been calculated by utilizing the constant currency results compared
to the prior period results.
The constant currency information represents non-GAAP
information. The company believes this provides a useful basis to
measure the performance of its business as it removes distortion
from the effects of foreign currency movements during the period;
however, this information should be considered as supplemental in
nature and should not be considered in isolation or as a substitute
for the related financial information prepared in accordance with
GAAP. See the section above titled “Non-GAAP Financial Measures”
for more information.
Due to a portion of the company’s customers who are invoiced in
non-U.S. Dollar denominated currencies, the company also calculates
subscription revenue growth rate on a constant currency basis,
thereby removing the effect of currency fluctuation on results of
operations.
|
Six Months
Ended Jun 30, |
|
Year Over Year Change |
($ in Thousands) |
2022 |
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
Service Revenue: |
|
|
|
|
|
|
Service
Revenue as reported |
$38,545 |
|
$41,478 |
|
$2,933 |
7.6% |
Conversion
impact of U.S. Dollar |
|
|
$2,887 |
|
$2,887 |
|
Service revenue on a constant currency basis |
$38,545 |
|
$44,365 |
|
$5,820 |
15.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended Jun 30, |
|
Year Over Year Change |
($
in Thousands) |
2022 |
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
Product Revenue: |
|
|
|
|
|
|
Product
Revenue as reported |
$29,210 |
|
$23,411 |
|
($5,799) |
(19.9%) |
Conversion
impact of U.S. Dollar |
|
|
$300 |
|
$300 |
|
Product revenue on a constant currency basis |
$29,210 |
|
$23,711 |
|
($5,499) |
(18.8%) |
|
|
|
|
|
|
|
|
Six Months
Ended Jun 30, |
|
Year Over Year Change |
($
in Thousands) |
2022 |
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
Total Revenue: |
|
|
|
|
|
|
Total
Revenue as reported |
$67,755 |
|
$64,889 |
|
($2,866) |
(4.2%) |
Conversion
impact of U.S. Dollar |
|
|
$3,187 |
|
$3,187 |
|
Total revenue on a constant currency basis |
$67,755 |
|
$68,076 |
|
$321 |
0.5% |
|
Three Months Ended Jun 30, |
|
Year Over Year Change |
($ in Thousands) |
2022 |
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
Service Revenue: |
|
|
|
|
|
|
Service
Revenue as reported |
$19,777 |
|
$21,044 |
|
$1,267 |
6.4% |
Conversion
impact of U.S. Dollar |
|
|
$1,299 |
|
$1,299 |
|
Service revenue on a constant currency basis |
$19,777 |
|
$22,343 |
|
$2,566 |
13.0% |
|
|
|
|
|
|
|
|
Three Months Ended Jun 30, |
|
Year Over Year Change |
($
in Thousands) |
2022 |
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
Product Revenue: |
|
|
|
|
|
|
Product
Revenue as reported |
$14,818 |
|
$11,006 |
|
($3,812) |
(25.7%) |
Conversion
impact of U.S. Dollar |
|
|
$125 |
|
$125 |
|
Product revenue on a constant currency basis |
$14,818 |
|
$11,131 |
|
($3,687) |
(24.9%) |
|
|
|
|
|
|
|
|
Three Months Ended Jun 30, |
Year Over Year Change |
($
in Thousands) |
2022 |
|
2023 |
|
$ |
% |
|
|
|
|
|
|
|
Total Revenue: |
|
|
|
|
|
|
Total
Revenue as reported |
$34,595 |
|
$32,050 |
|
($2,545) |
(7.4%) |
Conversion
impact of U.S. Dollar |
|
|
$1,424 |
|
$1,424 |
|
Total revenue on a constant currency basis |
$34,595 |
|
$33,474 |
|
($1,121) |
(3.2%) |
PowerFleet (NASDAQ:PWFL)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
PowerFleet (NASDAQ:PWFL)
Gráfica de Acción Histórica
De May 2023 a May 2024