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iPower Reports Fiscal First Quarter 2024 Results
المصدر: Nasdaq GlobeNewswire / 14 نوفمبر 2023 15:05:00 America/Chicago
- Record Quarterly Revenue, Driven In-Part by Ramp of New SuperSuite Supply Chain Business -
- iPower Management to Host Conference Call Today at 4:30 p.m. Eastern Time -
DUARTE, Calif., Nov. 14, 2023 (GLOBE NEWSWIRE) -- iPower Inc. (Nasdaq: IPW) (“iPower” or the “Company”), a tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services, today announced financial results for its fiscal first quarter ended September 30, 2023.
Fiscal Q1 2024 Results vs. Fiscal Q1 2023 (unless otherwise noted)
- Total revenue increased 2% to $26.5 million compared to the Company’s record $26.0 million in Q1 2023.
- Gross profit increased 18% to $11.8 million, while gross margin increased 600 bps to 44.4% compared to 38.4%.
- Net loss attributable to iPower improved 69% to $1.3 million or $(0.04) per share, compared to net loss attributable to iPower of $4.2 million or $(0.14) per share.
- As of September 30, 2023, net debt (total debt less cash) was reduced by 48% to $4.3 million compared to net debt of $8.1 million as of June 30, 2023.
Management Commentary
“We continued to generate revenue growth during the quarter, surpassing the challenging comp against our record revenues in fiscal Q1 2023,” said Lawrence Tan, CEO of iPower. “Sales of our non-hydroponic products remained strong at more than 75% of revenue, largely driven by categories such as fans, shelving and outdoor patio furniture. Business generated by our SuperSuite supply chain partnerships has reached an annualized revenue run-rate of approximately $7.0 million and continues to gain momentum as we work through our growing pipeline of prospective partnerships. We are pleased with the early financial results as well as the invaluable insights that we are gaining from this accelerating area of our business.”
iPower CFO, Kevin Vassily, added, “As highlighted last quarter, we have continued to drive reductions to our supply of higher cost inventory and are now beginning to realize the benefit of our efforts through gross margin expansion, which has reached our highest level in nearly two years. Additionally, we made material improvements to our capitalization during the quarter, with net debt decreasing 48% as compared to the close of fiscal 2023. These actions place us in a good position to capitalize on prospective acquisition opportunities as we continue to drive growth and target a return to profitability in fiscal 2024.”
Fiscal First Quarter 2024 Financial Results
Total revenue in the fiscal first quarter of 2024 increased 2% to $26.5 million as compared to $26.0 million for the same period in fiscal 2023. The increase was driven in-part by growth from the Company’s SuperSuite supply chain offerings, which is generating approximately $600,000 in revenue per month, as well as favorable seasonality in the Company’s product mix.
Gross profit in the fiscal first quarter of 2024 increased 18% to $11.8 million as compared to S10.0 million in the same quarter in fiscal 2023. As a percentage of revenue, gross margin increased 600 basis points to 44.4% compared to 38.4% in the year-ago period. The increase in gross margin was primarily driven by a favorable product mix.
Total operating expenses in the fiscal first quarter of 2024 improved 11% to $13.0 million compared to $14.6 million for the same period in fiscal 2023. The decrease was driven primarily by a $3.1 million decrease in impairment loss on goodwill, partially offset by increased selling and fulfillment expenses.
Net loss attributable to iPower in the fiscal first quarter of 2024 improved to $1.3 million or $(0.04) per share, as compared to a net loss attributable to iPower of $4.2 million or $(0.14) per share for the same period in fiscal 2023. The improvement was driven by the aforementioned higher gross profit and lower operating expenses.
Cash and cash equivalents were $2.7 million at September 30, 2023, as compared to $3.7 million at June 30, 2023. Total debt as of September 30, 2023 was $7.0 million as compared to $11.8 million as of June 30, 2023. As a result of the Company’s debt paydown, net debt (total debt less cash) was reduced by 48% to $4.3 million compared to $8.1 million as of June 30, 2023.
Conference Call
The Company will hold a conference call today, November 14, 2023, at 4:30 p.m. Eastern Time to discuss the results for its fiscal first quarter ended September 30, 2023.
iPower’s management will host the conference call, which will be followed by a question-and-answer session.
The conference call details are as follows:
Date: Tuesday, November 14, 2023
Time: 4:30 p.m. Eastern time
Dial-in registration link: here
Live webcast registration link: herePlease dial into the conference call 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact the Company’s investor relations team at IPW@elevate-ir.com.
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 tech and data-driven online retailer and supplier of consumer home and garden products, as well as a provider of value-added ecommerce services for third-party products and brands. 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 websites, www.zenhydro.com and www.simpledeluxe.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 press release 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 15, 2023, its Quarterly Report on Form 10-Q, as filed with the SEC on November 14, 2023, and in its other SEC filings.
Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
(720) 330-2829
IPW@elevate-ir.comiPower Inc. and Subsidiaries Unaudited Condensed Consolidated Balance Sheets As of September 30, 2023 and June 30, 2023 September 30, June 30, 2023 2023 (Unaudited) ASSETS Current assets Cash and cash equivalent $ 2,729,161 $ 3,735,642 Accounts receivable, net 13,237,282 14,071,543 Inventories, net 15,056,623 20,593,889 Other receivable - related party - - Prepayments and other current assets 1,811,499 2,858,196 Total current assets 32,834,565 41,259,270 Non-current assets Right of use - non-current 7,763,712 7,837,345 Property and equipment, net 496,901 536,418 Deferred tax assets 2,432,439 2,155,250 Non-current prepayments 461,034 531,456 Goodwill 3,034,110 3,034,110 Investment in joint venture 32,088 33,113 Intangible assets, net 4,117,728 4,280,071 Other non-current assets 417,639 427,254 Total non-current assets 18,755,651 18,835,017 Total assets $ 51,590,216 $ 60,094,287 LIABILITIES AND EQUITY Current liabilities Accounts payable 12,031,323 13,244,957 Credit cards payble 693,327 366,781 Customer deposit 362,826 350,595 Other payables and accrued liabilities 3,292,581 4,831,067 Advance from shareholders 84,718 85,200 Investment payable - - Lease liability - current 2,169,603 2,159,173 Short-term loan payable - related party 1,006,060 2,017,852 Long-term promissory note payable - current portion 1,149,961 - Income taxes payable 275,117 276,683 Total current liabilities 21,065,516 23,332,308 Non-current liabilities Long-term revolving loan payable, net 4,808,322 9,791,191 Long-term promissory note payable, net 0 - Deferred tax liabilities - - Lease liability - non-current 6,023,813 6,106,047 Total non-current liabilities 10,832,135 15,897,238 Total liabilities 31,897,651 39,229,546 Commitments and contingency - - Stockholders' Equity Preferred stock, $0.001 par value; 20,000,000 shares authorized; 0 shares issued and outstanding at June 30, 2023 and 2022 - - Common stock, $0.001 par value; 180,000,000 shares authorized; 29,710,939 and 29,572,382 shares issued and outstanding at June 30, 2023 and 2022 29,712 29,712 Additional paid in capital 29,742,402 29,624,520 (Accumulated deficits) Retained earnings (9,988,957 ) (8,702,442 ) Non-controlling interest (27,751 ) (24,915 ) Accumulated other comprehensive income (loss) (62,841 ) (62,134 ) Total equity 19,692,565 20,864,741 Total liabilities and equity $ 51,590,216 $ 60,094,287 iPower Inc. and Subsidiaries Unaudited Condensed Consolidated Statements of Operations For the Three Months Ended September 30, 2023 and 2022 For the Three Months Ended September 30, 2023 2022 (Unaudited) (Unaudited) REVENUES $ 26,508,487 $ 26,022,673 TOTAL REVENUES 26,508,487 26,022,673 COST OF REVENUES 14,749,529 16,036,957 GROSS PROFIT 11,758,845 9,985,716 OPERATING EXPENSES: Selling and fulfillment 10,063,471 8,418,812 General and administrative 2,964,051 3,100,176 Impairment loss - goodwill - 3,060,034 Total operating expenses 13,027,522 14,579,022 (LOSS) INCOME FROM OPERATIONS (1,268,677 ) (4,593,306 ) OTHER INCOME (EXPENSE) Interest expenses (228,365 ) (248,041 ) Other financing expenses - - Loss on equity method investment (1,025 ) (3,390 ) Other non-operating income (67,166 ) 211,760 Total other expenses, net (296,556 ) (39,671 ) (LOSS) INCOME BEFORE INCOME TAXES (1,565,233 ) (4,632,977 ) PROVISION FOR INCOME TAX (BENEFIT) EXPENSE (275,882 ) (447,796 ) NET (LOSS) INCOME (1,289,351 ) (4,185,181 ) Non-controlling interest (2,836 ) (2,805 ) NET (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. $ (1,286,515 ) $ (4,182,376 ) OTHER COMPREHENSIVE LOSS Foreign currency translation adjustments (707 ) (111,475 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO IPOWER INC. $ (1,287,222 ) $ (4,293,851 ) WEIGHTED AVERAGE NUMBER OF COMMON STOCK Basic 29,764,515 29,665,716 Diluted 29,764,515 29,665,716 (LOSSES) EARNINGS PER SHARE Basic $ (0.04 ) $ (0.14 ) Diluted $ (0.04 ) $ (0.14 )