HENDERSON, Nev., Feb. 14,
2023 /PRNewswire/ -- Upexi, Inc. (NASDAQ:
UPXI) (the "Company" or "Upexi"), a multi-faceted
Amazon and Direct to Consumer brand owner and innovator in
aggregation, today announced its financial results for the fiscal
2023 second quarter ending December 31,
2022.
Fiscal 2023 Second Quarter Financial Highlights:
- Revenue totaled $27.1 million, an
increase of 444% year-over-year, and an increase of 134%
sequentially.
- Gross profit totaled $10.3
million, an increase of $6
million or an increase of 141% year-over-year and an
increase of 71% sequentially.
- Adjusted EBITDA for the quarter totaled $119,054 as compared to an adjusted EBITDA loss
of $1.3 million year over year, and
an improvement of $1.1 million over
the prior quarter.
- Net Income from continued operations attributable to Upexi,
Inc. shareholders was $2.7 million,
as compared to a net loss of approximately $258,247 for the same period in the prior year.
This includes a one-time gain of $7.6
million as a result of the sale of Infusionz and select
assets.
- Shareholder equity increased $8.2
million to $36.9 million as of
December 31, 2022, as compared to
$28.7 million as of June 30, 2022.
- Cash and cash equivalents totaled $4.5
million as of 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 Allan Marshall, Upexi Chief Executive Officer.
"During that period we divested our select CBD operations and
focused our resources on our diverse business mix of
non-discretionary brands in health, wellness, pet, toys, and
liquidation in wholesale, DTC and Amazon."
Mr. Marshall continued, "During the quarter we transitioned
sequentially from an Adjusted EBITDA loss to positive Adjusted
EBITDA. Throughout the remainder of calendar 2023 we expect to see
further efficiency in our operations, which will drive higher
EBITDA margins. The business is well positioned to meet our
projected revenue goal of $100
million for calendar 2023 and we expect EBITDA margins to
increase steadily throughout the calendar year to trend towards 8%
to 12% by end of year."
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 $15
million senior secured debt.
- 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 December 31, 2022 totaled $27.1 million, an increase of 444% as compared to
$4.9 million for the same period the
year prior. Revenue growth was predominantly driven by acquisitions
as well as strong year-end sales in many of our brands including;
E-core, Tytan Tiles, Vitamedica, and Cygnet Online, as well as
strong sales from our pet product business, Lucky Tail.
Cost of revenue during the quarter totaled $16.8 million, compared to $.7 million for the same period the prior year.
Gross profit for the quarter was $10.3
million, an increase of 141% as compared to $4.3 million for the same period in the prior
year. Gross margins declined to 38%.
Operating expenses totaled $12.5
million, an increase of 83% as compared to $6.8 million for the same period in the prior
fiscal year.
The Company had a net loss from continued operations of
$2.1 million for the three months
ended December 31, 2022, representing
a 16% improvement compared to the $2.5
million net loss for the same period the prior year.
The Company had cash of $4.5
million and stockholders' equity attributable to Upexi, In.
stockholders of $36.9 million as of
December 31, 2022. As of today,
February 14, 2023, there
are17,960,748 shares of common stock outstanding.
Financial Results Conference Call
Event:
|
Fiscal 2023 Second
Quarter Financial Results Conference Call
|
Date:
|
Tuesday, February 14,
2023
|
Time:
|
5:00 p.m. Eastern
Time
|
Live
Call:
|
1-877-407-9716 (U.S.
Toll-Free) or 1-201-493-6779 (International)
|
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 February
28, 2023 and can be accessed by dialing +1-844-512-2921
(U.S. Toll Free) or +1-412-317-6671 (International) and entering
replay pin number: 13736086.
Additional details are available under the Investor Relations
section of the Company's
website: https://upexi.com/investors.
About Upexi, Inc.:
Upexi is a multi-faceted brand
owner with established brands in the health, wellness, pet, beauty
and other growing markets. We operate in emerging industries with
high growth trends and look to drive organic growth of our current
brands. We focus on direct to consumer and Amazon brands that are
scalable and have anticipated, high industry growth trends. Our
goal is to continue to accumulate consumer data and build out a
significant customer database across all industries we sell into.
The growth of our current database has been key to the year over
year gains in sales and profits. To drive additional growth, we
have and will continue to acquire profitable Amazon and eCommerce
businesses that can scale quickly and reduce costs through
corporate synergies. We utilize our in-house, SaaS programmatic ad
technology to help achieve a lower cost per acquisition and
accumulate consumer data for increased cross-selling between our
growing portfolio of brands.
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
Securities and Exchange Commission.
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
|
|
30-Sep-22
|
31-Dec-22
|
31-Dec-22
|
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
Andrew
Norstrud, Chief Financial Officer
Email: andrew.norstrud@upexi.com
Phone: (702) 332-5591
Investor Relations Contact
KCSA Strategic
Communications
Valter Pinto or Jack Perkins
Email: Upexi@KCSA.com
Phone: (212) 896-1254
UPEXI,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month's
Ended
December 31,
|
|
|
Six Month's
Ended
December 31,
|
|
|
|
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 Upexi, Inc.
|
|
$
|
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
|
|
UPEXI,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
June
30,
|
|
|
|
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
|
|
Goodwill
|
|
|
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,
$0.001 par value, 100,000,000 shares authorized, and
500,000 and 500,000 shares issued and outstanding,
respectively
|
|
|
500
|
|
|
|
500
|
|
Common stock, $0.001
par value, 100,000,000 shares authorized, and
17,960,748 and 16,713,345 shares issued and outstanding,
respectively
|
|
|
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 Upexi, Inc.
|
|
|
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
|
|
View original
content:https://www.prnewswire.com/news-releases/upexi-reports-record-revenue-of-27-1-million-for-fiscal-2023-second-quarter-an-increase-of-444-year-over-year-301746845.html
SOURCE Upexi, Inc.