Fiscal Q3 Revenue up 15% to
Accelerated Growth of iPower SuperSuite Business
Gross Margin Expansion and Improved Operating Leverage
Enables Return to Profitability
for Further Growth and Profitability
Fiscal Q3 2024 Results vs. Fiscal Q3 2023 (unless otherwise noted)
- Total revenue increased 15% to
$23.3 million . - Gross profit increased 41% to
$10.9 million , with gross margin up 850 bps to 47.0%. - Net income attributable to iPower improved to
$1.0 million or$0.03 per share, compared to net loss attributable to iPower of$1.5 million or$(0.05) per share. - Adjusted net income attributable to iPower (a non-GAAP financial measure defined below) improved to
$1.6 million or$0.05 per share, compared to adjusted net loss attributable to iPower of$1.4 million or$(0.05) per share. - As of
March 31, 2024 , net debt (total debt less cash) was reduced by 59% to$3.3 million compared to net debt of$8.1 million as ofJune 30, 2023 .
Management Commentary
“We generated strong financial results in our fiscal third quarter as we achieved double-digit revenue growth, material gross margin expansion and improved operating leverage, resulting in our return to profitability,” said
“We are also gaining momentum in our SuperSuite supply chain business, which contributed to our strong top-line growth in the current quarter, and now accounts for approximately 10% of total revenue. This new business not only supports our growth but also offers valuable insights that we can utilize to enhance our internal capabilities. In April, we expanded our sales channels by launching on Temu and have seen promising early results in the kitchen and pet categories. We will continue to leverage our expertise in supply chain, fulfillment and merchandising to drive sales for innovative product companies as we work through our growing pipeline of prospective partners.”
iPower CFO,
Fiscal Third Quarter 2024 Financial Results
Total revenue in the fiscal third quarter of 2024 increased 15% to
Gross profit in the fiscal third quarter of 2024 increased 41% to
Total operating expenses in the fiscal third quarter of 2024 were
Net income attributable to iPower in the fiscal third quarter of 2024 improved to
Adjusted net income attributable to iPower (a non-GAAP financial measure defined below), which excludes legal fees for arbitration net of tax impact, improved to
Cash and cash equivalents were
Conference Call
The Company will hold a conference call today,
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:
Time:
Dial-in registration link: here
Live webcast registration link: here
Please 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
Non-GAAP Financial Measures
iPower has disclosed non-GAAP net income/(loss) and non-GAAP earnings per share in this press release, which are non-GAAP financial measures as defined by SEC Regulation
The Company's management believes that presenting non-GAAP net income/(loss) and non-GAAP EPS provides useful information to investors regarding the underlying business trends and performance of the Company's ongoing operations, as well as providing for more consistent period-over-period comparisons. This non-GAAP measure assists management in its operational and financial decision-making, as well as monitoring the Company's performance, non-GAAP net income/(loss) and non-GAAP EPS are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management strongly encourages investors to review the Company's consolidated financial statements in their entirety and to not rely on any single financial measure.
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
Investor Relations Contact:
Elevate IR
(720) 330-2829
IPW@elevate-ir.com
Unaudited Condensed Consolidated Balance Sheets | ||||||||||||
As of | ||||||||||||
2024 | 2023 | |||||||||||
(Unaudited) | ||||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalent | $ | 2,714,724 | $ | 3,735,642 | ||||||||
Accounts receivable, net | 16,843,692 | 14,071,543 | ||||||||||
Inventories, net | 11,872,286 | 20,593,889 | ||||||||||
Prepayments and other current assets | 1,632,113 | 2,858,196 | ||||||||||
Total current assets | 33,062,815 | 41,259,270 | ||||||||||
Non-current assets | ||||||||||||
Right of use - non-current | 6,632,349 | 7,837,345 | ||||||||||
Property and equipment, net | 405,621 | 536,418 | ||||||||||
Deferred tax assets, net | 2,756,420 | 2,155,250 | ||||||||||
Non-current prepayments | 320,190 | 531,456 | ||||||||||
3,034,110 | 3,034,110 | |||||||||||
Investment in joint venture | 30,495 | 33,113 | ||||||||||
Intangible assets, net | 3,793,042 | 4,280,071 | ||||||||||
Other non-current assets | 381,631 | 427,254 | ||||||||||
Total non-current assets | 17,353,858 | 18,835,017 | ||||||||||
Total assets | $ | 50,416,673 | $ | 60,094,287 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Accounts payable | 14,199,052 | 13,244,957 | ||||||||||
Credit cards payable | 236,000 | 366,781 | ||||||||||
Customer deposit | 339,968 | 350,595 | ||||||||||
Other payables and accrued liabilities | 3,242,002 | 4,831,067 | ||||||||||
Advance from shareholders | 85,581 | 85,200 | ||||||||||
Lease liability - current | 2,106,867 | 2,159,173 | ||||||||||
Revolving loan payable | 6,011,860 | - | ||||||||||
Income taxes payable | 277,921 | 276,683 | ||||||||||
Total current liabilities | 26,499,251 | 23,332,308 | ||||||||||
Non-current liabilities | ||||||||||||
Long-term revolving loan payable, net | - | 9,791,191 | ||||||||||
Lease liability - non-current | 4,949,802 | 6,106,047 | ||||||||||
Total non-current liabilities | 4,949,802 | 15,897,238 | ||||||||||
Total liabilities | 31,449,053 | 39,229,546 | ||||||||||
Commitments and contingency | - | - | ||||||||||
Stockholders' Equity | ||||||||||||
Preferred stock, | ||||||||||||
outstanding at | - | - | ||||||||||
Common stock, | ||||||||||||
29,710,939 shares issued and outstanding at | 29,819 | 29,712 | ||||||||||
Additional paid in capital | 30,013,997 | 29,624,520 | ||||||||||
Accumulated deficits | (10,887,703 | ) | (8,702,442 | ) | ||||||||
Non-controlling interest | (34,519 | ) | (24,915 | ) | ||||||||
Accumulated other comprehensive loss | (153,974 | ) | (62,134 | ) | ||||||||
Total stockholders' equity | 18,967,620 | 20,864,741 | ||||||||||
Total liabilities and stockholders' equity | $ | 50,416,673 | $ | 60,094,287 | ||||||||
Unaudited Condensed Consolidated Statements of Operations | |||||||||||||||||||
For the Three and Nine Months Ended | |||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
REVENUES | $ | 23,308,508 | $ | 20,225,619 | $ | 66,617,004 | $ | 65,502,882 | |||||||||||
TOTAL REVENUES | 23,308,508 | 20,225,619 | 66,617,004 | 65,502,882 | |||||||||||||||
COST OF REVENUES | 12,360,170 | 12,433,898 | 36,591,581 | 39,755,919 | |||||||||||||||
GROSS PROFIT | 10,948,338 | 7,791,721 | 30,025,423 | 25,746,963 | |||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||
Selling and fulfillment | 6,025,878 | 6,537,124 | 23,026,329 | 24,294,673 | |||||||||||||||
General and administrative | 3,321,184 | 3,065,795 | 9,218,842 | 8,879,326 | |||||||||||||||
Impairment loss - goodwill | - | - | - | 3,060,034 | |||||||||||||||
Total operating expenses | 9,347,062 | 9,602,919 | 32,245,171 | 36,234,033 | |||||||||||||||
INCOME (LOSS) FROM OPERATIONS | 1,601,276 | (1,811,198 | ) | (2,219,748 | ) | (10,487,070 | ) | ||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||
Interest expenses | (181,199 | ) | (238,623 | ) | (592,176 | ) | (800,783 | ) | |||||||||||
Loss on equity method investment | (792 | ) | (1,297 | ) | (2,618 | ) | (8,625 | ) | |||||||||||
Other non-operating income | (29,669 | ) | (72,235 | ) | 32,003 | 199,125 | |||||||||||||
Total other expenses, net | (211,660 | ) | (312,155 | ) | (562,791 | ) | (610,283 | ) | |||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 1,389,616 | (2,123,353 | ) | (2,782,539 | ) | (11,097,353 | ) | ||||||||||||
PROVISION FOR INCOME TAX EXPENSE (BENEFIT) | 377,147 | (589,581 | ) | (587,674 | ) | (2,085,126 | ) | ||||||||||||
NET INCOME (LOSS) | 1,012,469 | (1,533,772 | ) | (2,194,865 | ) | (9,012,227 | ) | ||||||||||||
Non-controlling interest | (3,613 | ) | (3,238 | ) | (9,604 | ) | (8,878 | ) | |||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC. | $ | 1,016,082 | $ | (1,530,534 | ) | $ | (2,185,261 | ) | $ | (9,003,349 | ) | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
Foreign currency translation adjustments | 69,122 | 17,604 | (91,840 | ) | (46,722 | ) | |||||||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC. | $ | 1,085,204 | $ | (1,512,930 | ) | $ | (2,277,101 | ) | $ | (9,050,071 | ) | ||||||||
WEIGHTED AVERAGE NUMBER OF COMMON STOCK | |||||||||||||||||||
Basic | 29,821,811 | 29,730,914 | 29,791,990 | 29,702,014 | |||||||||||||||
Diluted | 29,821,811 | 29,730,914 | 29,791,990 | 29,702,014 | |||||||||||||||
EARNINGS (LOSSES) PER SHARE | |||||||||||||||||||
Basic | $ | 0.03 | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.30 | ) | ||||||||
Diluted | $ | 0.03 | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.30 | ) | ||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | |||||||||||||||||
(Unaudited) | |||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
GAAP NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC. | $ | 1,016,082 | $ | (1,530,534 | ) | $ | (2,185,261 | ) | $ | (9,003,349 | ) | ||||||
Legal fees for arbitration | 814,923 | 177,566 | 1,239,337 | 682,411 | |||||||||||||
Impairment loss - goodwill | - | - | - | 3,060,034 | |||||||||||||
Adjustments to tax provision | (221,173 | ) | (49,310 | ) | (261,749 | ) | (128,225 | ) | |||||||||
NON-GAAP NET INCOME (LOSS) ATTRIBUTABLE TO IPOWER INC. | $ | 1,609,832 | $ | (1,402,278 | ) | $ | (1,207,673 | ) | $ | (5,389,129 | ) | ||||||
GAAP EARNINGS (LOSSES) PER SHARE * | |||||||||||||||||
Basic and diluted | $ | 0.03 | $ | (0.05 | ) | $ | (0.07 | ) | $ | (0.30 | ) | ||||||
Impact of Non-GAAP adjustments | 0.02 | 0.00 | 0.03 | 0.12 | |||||||||||||
NON-GAAP EARNINGS (LOSSES) PER SHARE * | $ | 0.05 | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.18 | ) | ||||||
WEIGHTED AVERAGE NUMBER OF COMMON STOCK* | |||||||||||||||||
Basic and diluted - GAAP and NON-GAAP | 29,821,811 | 29,730,914 | 29,791,990 | 29,702,014 | |||||||||||||
Source:
2024 GlobeNewswire, Inc., source